U.S. Fed approves BMO's US$16.3B Bank of the West takeover

Stephanie Stoughton and Kevin Orland, Bloomberg News

BANK OF MONTREAL (BMO:CT)

131.36 0.03 (0.02%)

As of: 01/20/23 3:06:48 am
REAL-TIME QUOTE. Prices update every five seconds for TSX-listed stocks

Chart Type - 1year

See Full Stock Page »

Bank of Montreal has received approval from the the Federal Reserve to acquire San Francisco-based Bank of the West, a combination that will create the 15th-largest U.S. lender. 

After the transaction, Bank of Montreal U.S. subsidiary BMO Financial Corp. will have consolidated assets of US$286.8 billion, representing about one per cent of those held by insured depository institutions in the U.S., according to the Fed. The Office of the Comptroller of the Currency also said it green-lit the merger. 

Bank of Montreal said it expects the deal will close on Feb. 1. “We look forward to working with communities across our expanded U.S. footprint to help drive meaningful change at the local level through a strong combination of financial and community-driven investment,” David Casper, the bank's U.S. head, said in a statement.

Seller BNP Paribas SA will unveil the final impact of the deal on Feb. 7, along with its fourth-quarter earnings, the lender said in a statement on Wednesday. The French bank has said it would dedicate about €4 billion to stock repurchases.

The US$16.3 billion deal, the largest ever by a Canadian bank, expands Bank of Montreal beyond its stronghold in the Midwest, across the western U.S. and into California, giving it an active presence in 32 states. When it announced the acquisition, the Canadian bank estimated it would get 1.8 million new customers and US$105 billion in assets.

Bank of Montreal struck the deal when it was flush with capital because regulators had prevented Canada's big lenders from buying back shares or raising their dividends for more than a year. More recently, Bank of Montreal was forced to sell US$2.33 billion in equity to top up its capital levels after Canada's banking regulator increased the industry's required capital buffers.

Toronto-Dominion Bank is still awaiting regulator approval for its own major U.S. deal, the US$13.4 billion acquisition of First Horizon Corp.

   

Los Angeles FC arena changes its name to BMO Stadium

The Associated Press

Los Angeles FC's home arena is changing its name from Banc of California Stadium to BMO Stadium.

LAFC announced the new naming rights deal Thursday for the five-year-old arena, which was built by the expansion Major League Soccer Club. The stadium also is the home of the NWSL's Angel City FC.

BMO, also known as the Bank of Montreal, is a Canadian financial firm moving aggressively into the U.S. with a proposed takeover of California-based Bank of the West. BMO also owns the naming rights to Toronto FC's home arena, BMO Field.

The name change in Los Angeles has been brewing since 2020, when Banc of California backed out of its reported 15-year naming rights deal first signed in 2016. The stadium continued to use its old name for the past two-and-a-half seasons while searching for a new sponsor.

LAFC won its first MLS Cup championship on the field last fall, beating Philadelphia on penalty kicks to claim the title. LAFC also has won two Supporters' Shield titles as the league's best regular-season team during its five years in the stadium, including last year.

BMO also announced a partnership deal with Angel City.

LAFC's stadium has been sold out for every MLS regular-season and playoff match since its opening in 2018, according to the club. The stadium has been widely praised for its style, amenities and an atmosphere created largely by the raucous and most ardent supporters who stand in a section of the famed North End of the arena.

The stadium is next door to the 99-year-old Los Angeles Memorial Coliseum in Exposition Park, immediately south of downtown Los Angeles.

Canadian Pension funds improving on climate but overall still falling short: Report

Ian Bickis, The Canadian Press

Climate change could force Canada to lose nearly $150B in GDP by 2100: PBO

Canadian pension funds are falling short in responding to the climate crisis despite recent progress by some, said a report by an advocacy group out Wednesday.

The report, by Shift Action for Pension Wealth and Planet Health, shows a high level of inconsistency among 11 major pension funds after being ranked by letter grades on key measures such as Paris Accord-aligned targets, the urgency of their climate action, and their policies on fossil fuel investments.

There are signs of progress though with an increasing number of funds setting out at least initial commitments on net zero targets, said Adam Scott, executive director of Shift.

"A lot of the funds are just coming into this, they're coming to it quite late, frankly," said Scott. 

"But ... just in the last few years, we've seen eight of the pensions on the list enact a Net Zero target and a smaller group have actually taken sort of more serious steps of implementing those targets."

It's in the actual plans and implementation that many funds are falling short, whether its from a lack of transparency on their aims, targets that are to weak, and how much funds are actively engaging the companies and assets their investing in. 

The group ranked Caisse de dépôt et placement du Québec (CDPQ) highest, with the fund notable for being the only one to commit to divest from oil producers and tying executive compensation to climate targets.

On the other end of the spectrum was Alberta Investment Management Corp., (AIMCo) which has explicitly said it will not commit to a Paris-aligned portfolio.

AIMCo has noted that climate change is one of the most pressing systemic risks and takes it into account, and has made disclosure commitments as part of the Task Force on Climate-related Financial Disclosures, but overall the fund was given a D minus compared with CDPQ's B plus.

Scott said it's important pension funds take action because the retirement plans of millions of Canadians depend on them, and because of the financial sway the funds have with their more than $2 trillion in assets.

“Investment decisions of those funds have a huge impact on our ability to meet out climate targets.”

Canadian funds have largely shied away from making commitments to divesting from fossil fuel investments, which delivered strong returns last year as energy prices spiked.

Pensions however need to look longer-term where the prospects for the industry are much higher risk, said Scott.

"Unlike many other players in the market, they're supposed to care about the long term risks. And when it comes to fossil fuels, those are very clear that the industry is facing deep structural decline."

Scott said there needs to be more climate expertise on boards, and less cross appointments between pension funds and fossil fuel companies to help push progress, but that he believes progress is possible.

"Overall, I'm optimistic that all these funds can get to where they need to go. But they're going to need a significantly larger amount of effort.”

This report by The Canadian Press was first published Jan. 18, 2023.

Severe weather in Canada caused $3.1 billion in insured damages in 2022

The Canadian Press

The Insurance Bureau of Canada says severe weather caused $3.1 billion in insured damage in Canada in 2022, from flooding to storms to Hurricane Fiona.

That makes 2022 the third worst year for insured losses in Canadian history. 

The bureau says no single event or particular region accounted for the majority of the insured damage in 2022, with disasters in almost every part of Canada last year. 

That's in contrast to a year like 2016, the worst year on record primarily because of the Fort McMurray, Alberta wildfire, which accounted for around three-quarters of national losses. 

The most expensive extreme weather event for Canada in 2022 was the Ontario and Quebec derecho in May, which caused $1 billion in damages. 

The other most expensive events included Hurricane Fiona, which cost $800 million, and the summer storms in Western Canada which cost $300 million.

This report by The Canadian Press was first published Jan. 18, 2023.

SELL THE MONEY LOSER NATIONAL PO$T

Postmedia sells Calgary Herald building for $17.25M

The Canadian Press

THE INDIGNITY AFTER 100 YEARS

Newspaper publisher Postmedia says it has sold the

 Calgary Herald building for $17.25 million to U-Haul Co.

The landmark brick building is in a prominent location just across the river from downtown, and is visible from the busy commuter routes of Memorial Drive and Deerfoot Trail.

Postmedia's announcement comes the same day as the company said it is moving a dozen of its Alberta community newspapers to digital-only formats and laying off workers.

Those moves were announced in an internal memo to staff Wednesday obtained by The Canadian Press that describes the measures as part of a transformation plan geared toward managing costs.

The memo says the plan will result in an unspecified number of roles being eliminated across Postmedia over the coming month as it works through vacancies and layoffs.

It adds that the Postmedia publications moving to digital formats will make the transition on Feb. 27, but did not name which newspapers will make the switch.

Postmedia also used the memo to announce that it has entered into a limited partnership agreement with Glacier Media and will be moving all of its Saskatchewan printing to Estevan Printing.

The company says it will be putting its Saskatoon building up for sale and looking to sublease a Regina property, leaving Saskatchewan-based employees to permanently adopt remote work.

Postmedia announces plan to move 12 Alberta papers to digital-only, layoff staff

Tara Deschamps, The Canadian Press

Postmedia is moving a dozen of its Alberta community newspapers to digital-only formats, eyeing more outsourcing deals for printing, laying off workers and selling the home of the Calgary Herald.

The moves were announced Wednesday in an internal memo to staff obtained by The Canadian Press that describes the measures as part of a "tremendous" transformation plan geared toward managing costs.

"Businesses everywhere have been facing similar pressures from a widespread economic contraction that has intensified over the past six months. We have seen this in technology, manufacturing, and in media," said Andrew MacLeod, Postmedia's president and chief executive.

"That intensified pressure means that we must accelerate our transformation."

Phyllise Gelfand, Postmedia's vice-president of communications, confirmed the changes in an email to The Canadian Press, but would not offer any specifics.

MacLeod's memo said the plan will result in an unspecified number of roles being eliminated across Postmedia over the coming months through hiring restrictions and layoffs.

"This is absolutely not a reflection on the hard work and contributions they have made to our company but rather an outcome of economic contraction that has affected so many companies globally and the inherent challenges of our industry," he wrote.

Newspaper conglomerates including Postmedia have long been struggling to deal with dwindling subscriber numbers, the rise of big tech companies that have eaten into media profits and more advertising moving online and away from print. 

In recent years, Postmedia has coped by closing a number of small-town newspapers, reducing print production of some of its titles and resorting to layoffs and voluntary buyouts to manage costs.

MacLeod did not name the newspapers that will be making the switch to digital-only formats, but a dozen Postmedia titles carried notices Wednesday that told readers that their print versions would be ending. Those titles include the Airdrie Echo, Vermillion Standard, Cold Lake Sun, Peace Country News, Drayton Valley Western Review, Hanna Herald, Pincher Creek Echo, Bow Valley Crag and Canyon, Whitecourt Star, Leduc County Market, Cochrane Times and Fort McMurray Today.

MacLeod's memo said the transition will take place on Feb. 27. 

His note was sent to staff hours before Gelfand confirmed to The Canadian Press that Calgary Herald building Postmedia owned was sold for $17.25 million to U-Haul Co.

The landmark brick building, which has reportedly been on the market since 2019, is in a prominent location just across the river from downtown, and is visible from the busy commuter routes of Memorial Drive and Deerfoot Trail.

Its sale comes as MacLeod's memo said Postmedia is analyzing opportunities to outsource and centralize printing "where it makes sense to do so."

The first step in that process is a Limited Partnership agreement with Glacier Media that Postmedia recently signed, his memo said. 

The partnership will result in Postmedia moving its Saskatchewan printing to Estevan Printing and putting its Saskatoon building up for sale.

The company will also look to sublease a Regina property, leaving Saskatchewan-based employees to permanently adopt remote work.

MacLeod promised to provide further details around the changes to staff in a town hall Wednesday.

He said, "We know that this amount of change is unsettling but we must continue to focus on our strategy and delivering for our audiences, clients and partners."

Crypto firm Genesis is preparing to file for bankruptcy

Rachel Butt and Olga Kharif, Bloomberg News

Genesis Global Capital is laying the groundwork for a bankruptcy filing as soon as this week, according to people with knowledge of the situation.

The cryptocurrency lending unit of Digital Currency Group has been in confidential negotiations with various creditor groups amid a liquidity crunch. It has warned that it may need to file for bankruptcy if it fails to raise cash, Bloomberg previously reported.

Representatives at Genesis Global Capital didn't immediately respond to requests for comment. A representative for DCG declined to comment. Talks are ongoing and plans could change, the people added. 

Financial pressure at Barry Silbert's DCG began to emerge after the collapse of hedge fund Three Arrows Capital. Genesis suspended withdrawals in November, soon after crypto exchange FTX — where Genesis held some of its funds — filed for bankruptcy. The failures have had ripple effects on crypto exchange Gemini Trust, run by Cameron and Tyler Winklevoss. Gemini Earn — a service that let Gemini's users get yield for lending out their coins through Genesis — stopped redemptions as well.

Creditors, Genesis and DCG exchanged several proposals, but have so far failed to come to an agreement, the people said. Kirkland & Ellis and Proskauer Rose have been advising groups of creditors. 

DCG told shareholders that it's suspending quarterly dividends in an effort to conserve cash, according to a Jan. 17 letter to shareholders seen by Bloomberg.

CORPORATE WELFARE BUMS

Oil firms eye US$11B Canada fund to match Biden's subsidies

Brian Platt and Robert Tuttle, Bloomberg News

Oil-sands companies see a chance to secure a steady stream of government aid as Prime Minister Justin Trudeau pledges to keep Canada competitive with the massive clean-energy subsidies on offer in the U.S.

Firms including Suncor Energy Inc. and Cenovus Energy Inc. are seeking a chunk of the $15 billion (US$11.1 billion) Canada Growth Fund, unveiled in the government’s 2022 budget, to help fund large-scale carbon capture plans that would reduce emissions from extracting the country’s heavy oil. 

Trudeau has already put forward a tax incentive for building carbon capture projects, but Canada still faces a gap in matching the production tax credits contained in the U.S. Inflation Reduction Act. The legislation signed by President Joe Biden last summer, in effect, provides an annual operating subsidy for carbon-capture systems.

“We’ve got a very tilted playing field in North America at the moment,” said Derek Evans, chief executive officer of MEG Energy Corp., warning that Canada risks losing out on investment and jobs.

In an interview, Evans and executives from Cenovus and the Pathways Alliance, a group of the largest Canadian oil-sands producers, set out their vision for lowering the pollution from Canada’s energy sector and creating “the globally preferred barrel of sustainable oil.”  NO SUCH THING AS 'SUSTAINABLE OIL".

To get there, they’ve set a target of lowering oil-sands emissions by 22 million metric tons by 2030. The total was 81 million metric tons in 2020 — a figure the government notes more than doubled over the previous decade and a half. Their plan to do so requires $24 billion in spending, including on carbon capture. 

Pathways President Kendall Dilling said comparable de-carbonization plans in Europe and the U.S. get two-thirds of their funding from public sources in order to get the projects “moving ahead in a way that’s sustainable and reasonable from a corporate private investment perspective.” 

Under those proportions, the oil-sands producers are seeking $16 billion in state aid — some of which has already been pledged by Trudeau. Last April’s budget set aside more than $7 billion for the carbon-capture investment tax credit through 2030.

Other federal programs, such as the $8 billion Net Zero Accelerator, could be used for equipment costs. And there is also potential support from Alberta’s provincial government.

That means Canada is already close to matching the U.S. on capital cost incentives, said Mark Cameron, head of external relations for Pathways. “Where there’s a real gap is on the operating cost side,” he added, with money from the Canada Growth Fund as the possible solution.

In its November fiscal update, the Trudeau government said the fund could be used in a variety of ways to spur private investment in clean technology. It explicitly flagged carbon capture as a priority.

The program could be used to provide “a more predictable environment for decision making about long-term investments,” according to the budget document. One example is guaranteeing a floor price for carbon credits through what are known as contracts for difference.

In practice, this would mean the government guarantees oil-sands operators get a certain amount of money in exchange for sequestering carbon each year, even if the carbon trading market can’t support the flood of credits generated by new projects.

Evans said that ideally the industrial carbon trading market in Canada matures to the point where federal price guarantees aren’t necessary. But for now “we’re not going to undertake a project when we don’t have some idea of what the revenue is going to be,” he said.

Tapping Canada’s massive oil-sands deposits carries unique challenges that make them among the world’s most carbon-intensive sources of crude. 

Extracting the hydrocarbons from the peanut butter-like oil sands requires heavy doses of steam — either injected directly into underground deposits or mixed with loads of the bitumen at processing plants — both of which require significant amounts of natural gas. Even then, the crude that’s produced is a heavy, high-sulfur grade that requires a more energy-intensive refining process than lighter oils.

Climate-change activists, some of whom helped propel Trudeau to power in 2015, are critical of the prime minister’s receptiveness to the industry’s overtures on carbon capture. 

“The government is betting big on a speculative technology” but “doesn’t spend much on real climate solutions” such as renewable energy, Julia Levin, a spokeswoman for Environmental Defence, said by phone. “That ultimately doesn’t move us away from oil and gas.”

Companies are also consulting with the government on Trudeau’s proposed emissions cap for the oil and gas sector, a mechanism to ensure a gradual reduction in absolute emissions. Environment Minister Steven Guilbeault published a document last year outlining options for the cap. 

But while government models see the sector’s emissions dropping 42 per cent below current levels by 2030, oil-sands firms say they can’t meet that target by then without shutting in production. 

A 42 per cent cut would mean a nearly 35 million metric ton reduction in oil-sands emissions, Cameron said.

Still, the oil executives said their talks with the government are productive and should lead to a mutually acceptable plan.

“The point that I make regularly with government is: We’re going to hit your 42 per cent,” said Alex Pourbaix, chief executive officer of Cenovus. “It’s just going to take a few years more.”

Surge of discount airlines making Canada's pilot shortage worse: experts

Amanda Stephenson, The Canadian Press

With their promise of cheaper fares and no unnecessary frills, a flurry of so-called "discount airlines" have burst onto the Canadian scene in the last few years.

But experts say the low-cost airline model is exacerbating an already existing pilot shortage that could become an even bigger problem for this country's aviation industry in the years to come.

Start-up discount airlines — such as Edmonton-based Flair Airlines, Calgary-based Lynx, and WestJet subsidiary Swoop — have been rapidly expanding across Canada since the COVID-19 pandemic, gambling that there's enough pent-up demand from budget-conscious travellers to support additional capacity.

While each operates slightly differently, the basic premise of a low-cost airline is that travellers receive stripped-down service in exchange for low basic fares. Things like carry-on and checked bags, snacks and beverages, and cancellation protection are all considered extras and must be paid for separately.

The jury is still out on which, if any, of these upstart airlines will survive in a crowded field. However, experts say the rapid proliferation of new flights and routes is putting pressure on the aviation labour market — including for pilots.

"If I have a new airline that starts up with 10 airplanes, I theoretically need about 200 pilots," said Mike Doiron, president of Moncton, N.B.-based Doiron Aviation Consulting.

 "And getting new pilots trained doesn't happen overnight, even though the demand for pilots has skyrocketed."

A pilot shortage has been brewing in Canada for years, based on a variety of factors including an aging workforce, pandemic-related layoffs and early retirements, and spiraling training costs. (Becoming a commercial pilot can now cost upwards of $100,000, discouraging some young people from entering the profession, experts say).

Last week, vacation airline Sunwing blamed its spate of holiday season flight disruptions and cancellations in part on a pilot shortage, telling the federal transport committee that the government's decision to deny the airline's recent application to hire 63 temporary foreign workers (TFW) for pilot roles impacted its ability to deliver service.

Tim Perry — president of the Canadian division of the Air Line Pilots Association, the union that represents pilots at a number of Canadian airlines, including WestJet and Transat (but not Sunwing) — said that argument is "absurd." He said he doesn't believe any Canadian airline that compensates its pilots appropriately should need to hire TFWs.

However, Perry said there are real labour challenges in the aviation industry. He said flight schools, northern and regional airlines in particular are struggling to recruit certified pilots, in part because new carriers are hiring pilots who otherwise would have gone to work at some of these smaller operators. And because discount carriers don't pay as well as Air Canada or WestJet, lower-cost airlines also struggle with retention.

"They are introducing a ton of capacity onto the market, at low cost, and it's added to the draw on pilots," Perry said. 

"But those entry level jobs (at discount carriers) historically have not been career destinations. So those airlines end up with a higher training burden per unit of productive flying.”

None of the airlines contacted by The Canadian Press were willing to speak about the current state of the pilot labour market, nor was the National Airlines Council of Canada industry group. 

But a 2018 report by the Canadian Council for Aviation and Aerospace said that a third of flight operators in this country at that time cited pilots as their biggest skills shortage. The report said the need for experienced pilots is beginning to outpace the available national supply, and projected the industry will need an additional 7,300 pilots by 2025.

“There’s only maybe 15,000 to 20,000 pilots in the entire system right now, so that’s a pretty significant number," Doiron said. 

He added that some small airlines are already lowering their hiring standards — reducing the amount of flying hours they would normally require a pilot to have, or considering applicants who don't have university degrees — in order to be competitive in the labour market.

While pilots will always have to meet the minimum training requirements set by Transport Canada, Doiron said, a worsening pilot shortage in future will mean less experience in the cockpit. In addition, he said, it could lead to a long-term increase in the number of flight disruptions and cancellations travellers experience as airlines struggle with scheduling and labour.

"The shortage of qualified, experienced personnel is really going to put the whole industry upside down for the next little while," Doiron said.

"I’m glad I’m not running an airline right now, because it’s going to be a tough five to 10 years, I would suggest.”

Among the startup airlines that have added capacity since the COVID-19 pandemic are Flair Airlines, which has expanded aggressively to serve more than 30 destinations in Canada, the U.S. and Mexico; Lynx, which says it will be offering 5,292 seats per week to and from the United States from its Toronto and Calgary hubs as of February; and Canada Jetlines, which launched in September with twice weekly flights between Toronto and Calgary.

Toronto-based Porter Airlines is also launching new routes, and says it has up to 100 new aircraft on order which will give it the ability to operate across Canada, the U.S., Mexico, and the Caribbean.

This report by The Canadian Press was first published Jan. 19, 2023.

Women's tech collective Toast launches with aim to diversify hiring, reduce wage gaps

Tara Deschamps, The Canadian Press

Toast, a women's collective and talent organization, was started by Canadian tech workers Marissa McNeelands, left and April Hicke, shown in this undated handout photo. (THE CANADIAN PRESS/HO-Toast)

When Marissa McNeelands was hiring a senior artificial intelligence product manager last year, she asked recruiters to suggest an equal number of male and female candidates.

They didn't put forward any women, but she knew there had to be some who were more than qualified for the job.

"Really it was going into my network, talking to people, pushing people to apply," McNeelands, a Toronto artificial intelligence worker, recalled. 

"I find with so many women they just need that extra little push to be like 'yeah, you are qualified, go for it, ask for more money.'"

That experience and others like it are why McNeelands thinks Canada needs Toast, a women's collective and talent organization, she and April Hicke, a digital product director in Calgary, dreamed up at Mont Tremblant's spa in Quebec last August.

By October, Toast had launched and in January, it opened for memberships with 2,000 women on the waitlist.

The name is "a play on toasting your nine to five goodbye" because the company strives to "get women out of the corporate jobs they hate" and is also a reference to making bread, a slang term for money, said McNeelands.

Members who pay $29 a month for Toast get access to a community of women in tech, online workshops, in-person events, job hunt and interview resources and even legal advice during weekly Q&A sessions with a labour lawyer.

Toast also aims to unite employers who pay, promote and treat women fairly with prospective hires. 

Companies will pay Toast a commission fee when hiring someone based on a referral. The fee, which is 20 per cent of the worker's base salary, will be returned within three months if the placement doesn't work out. 

"Really our mission statement is to help women get to do the work that they want, at the pay that they deserve," McNeelands, Toast's chief executive, said.

Women had a 6.29 per cent chance of working in tech in 2001, but by 2016, that had fallen to 4.91 per cent, December research from the Brookfield Institute for Innovation + Entrepreneurship at Toronto Metropolitan University showed.

Meanwhile, men had a 20 per cent chance of being a tech worker, which remained unchanged between 2001 and 2016.

Women in Canadian tech jobs were paid $68,900 on average in 2016, while men made an average $76,200, the report based on Statistics Canada added. In 2021, those numbers rose to $92,600 for men and $75,600 for women, report author Viet Vu said. 

McNeelands and Hicke want women to be just as likely as men to work in tech and to earn the same wages. They feel the imposter syndrome -- the belief that one's success is the product of luck rather than skill or experience -- and the way positions are marketed are contributing to the current inequities.

"We were hearing a lot of recruiters say that whenever postings go up, they don't even get women who will apply," Hicke said.

Many women won't make a play for the job unless they meet 100 per cent of the job criteria, McNeelands added.

"We had a woman approach us who was like 'I want this junior product manager job' and we were like 'you're a senior product manager. You're selling yourself short. We need to put you in a different role.'" she said.

Employers are contributing to women's inequities in tech too. Many companies have "flashy diversity, equity and inclusion pages and then you get into the organization and... it's an awful place to work," said Hicke, Toast's chief growth officer.

At least one business recently also told her "we don't really pay market value for roles but we make up for it with the culture."

Toast will vet employers and then match them with potential hires, but wants to bring anonymity to the process.

Through its system, candidates will build a digital profile that strips out their name, photo and other details that could bias a hiring committee from choosing to interview someone.

Employer names are replaced with descriptors like "big four firm" or "fintech startup." University or college names and their location are removed, leaving only the degree or diploma received. Even years of experience are omitted.

"People that come with foreign experience, employers are ruling them out right off the bat, but these people have a crazy amount of experience that's so applicable," McNeelands said.

In organizations with more than 500 employees, Asian-named applicants are 20 per cent less likely to receive a job interview callback and in smaller organizations, the disadvantage is nearly 40 per cent, a study from Toronto Metropolitan University and the University of Toronto found in March 2018.

Experts have long believed similar biases may effect candidates who identify as a woman on their resume or who have names someone could perceive as belonging to a minority group.

Hicke and McNeelands, who are running Toast while completing masters degrees, hope to eventually embed machine learning into their matching process.

They also dream of a day when resumes are obsolete, but realize that goal will take time.

"We'll get there eventually, but I think for now we are focused on building our name, helping more women and ensuring companies are hiring women and treating them fairly."

This report by The Canadian Press was first published Jan. 18, 2023.