Friday, September 08, 2023

UBIQUITOUS CORNER STORES

Canadian consumer a 'bright spot' for Couche-

Tard amid grab bag of pressures: CEO


Canada appeared to be a “bright spot” for Alimentation Couche-Tard Inc. in its latest quarter as the convenience store giant battles a slew of pressures. 

President and CEO Brian Hannasch told analysts that the company's Canadian operations led the way for a strong start to the convenience store giant's financial year, while U.S. consumers seemingly feeling the financial pinch. 

"When we look at our sales in the U.S., we're seeing certainly some trading down to more budget and price-conscious decisions," Hannasch said on a conference call Thursday to discuss the company's latest results. 

"We continue to see double-digit growth year over year on private label. So that tells me a certain segment of our customer base is stretched ... a little bit."

However, he noted continued resilience in Canada. 

"We continue to see that be a bright spot in our business," Hannasch said.

Same-store merchandise sales, or sales at stores open for at least one year, jumped 6.4 per cent in Canada in the quarter. They increased 2.1 per cent in the U.S. and 2.7 per cent in Europe and other regions. 

Meanwhile, same-store fuel sales volumes rose 7.2 per cent in Canada, 0.7 per cent in the U.S. and declined 1.5 per cent in Europe and other regions. 

In addition to the beginnings of U.S. consumer pressures, lower gas prices and higher expenses also dented the company’s financial results. 

The Laval, Que.-based company reported net earnings of US$834.1 million, down from US$872.4 million a year earlier, while revenues fell 16.3 per cent to US$15.6 billion. 

Total road transportation fuel revenue sank 21.5 per cent to US$11.2 billion, though the volume of road transportation fuel sold rose in the quarter.

Normalized operating expenses increased by 3.7 year-over-year, CFO Filipe Da Silva told investors. 

"This is mainly driven by the impact of costs from rising minimum wages, inflationary pressures, and incremental investments to support our strategic initiatives, while being partly offset by the continued strategic efforts to control our expenses," he said. 

Couche-Tard shares were trading 1.27 per cent lower in the late afternoon on the Toronto Stock Exchange. 

This report by The Canadian Press was first published Sept. 7, 2023.

 

Peter Zeihan: Canadian immigration provides a 'partial patch' to aging demographics

As countries around the world contend with aging demographics, one geopolitical expert says Canada has been able to minimize the impacts due to a robust immigration system. 

Peter Zeihan, a geopolitical expert and author, said in an interview with BNN Bloomberg on Thursday that decades of geopolitical shifts have resulted in declining birth rates across many different countries, including Germany Poland and Japan.

After years of lower birth rates, he said “this was always the decade” many nations would see a dwindling number of working-age adults.

In the case of Canada, Zeihan said the country’s immigration system has worked to alleviate economic challenges that often arise when a large swath a population ages out of the workforce.

“Canada has found a partial patch to the demographic crisis that has plagued most of the rest of the world in immigration. It’s the only country in the world that has been able to pull it off,” Zeihan said. 

As long as you keep the door open, you're bringing in people in their 20s. And there just is a very limited supply of those on a global basis that actually have skills.”

However, Canada’s immigration policy comes with risks, Zeihan said, pointing to pressures in the housing market.  

Feds award $15 million contract to Sun Life to lay groundwork for dental care program

INSURER OF CHOICE FOR THE BUILDING TRADES UNIONS

The federal government has awarded a contract worth up to $15 million to lay the groundwork for a new national dental insurance plan.

Procurement Minister Jean-Yves Duclos and Health Minister Mark Holland announced today the contract was awarded to Sun Life Assurance Company of Canada. 

The federal government says this interim agreement will allow for the "timely launch and successful operation" of the plan, while details of the main contract are finalized.

The federal government is working to set up the new insurance plan to replace an interim benefit system that launched last year.

A national dental care program is a cornerstone of the supply-and-confidence agreement between the NDP and Liberals.


The spring budget promised $13 billion over the next five years to implement the national dental care plan, which the federal government says will insure up to nine million Canadians.

This report by The Canadian Press was first published Sept. 6, 2023.

 

Private donation helps attract teachers to rural B.C. with $10,000 cash welcome gifts

A rural school district in the British Columbia Interior has filled a shortfall of teachers with help from an anonymous benefactor who donated $200,000 to welcome new educators.

At a time when schools across the province are struggling with staff recruitment and retention, the Gold Trail School District offered $10,000 incentives to attract new teachers, and $15,000 for those who agreed to move to the small town of Lytton which was devastated by fire two years ago.

Superintendent Teresa Downs says all 18 vacancies this year have been filled by the district, which manages eight small schools ranging in size from three to 350 pupils, with a total enrollment of 1,100. Thirteen new teachers qualified for the extra cash, and unused funds could go to future hires, Downs said.

Last year there was a shortfall of about 22 teaching staff, representing about 20 per cent of staff. 

"So, we were unable to have any of our non-enrolling positions like teacher-counsellor or inclusion specialist filled, and there were times when we didn't have classrooms filled," Downs said of last year's staff shortage.

"And so, it meant that there was a profound impact on the morale of all of the staff here in the district, but also on, I think, the confidence that our communities and families had in the services we were offering their children."

The recruitment bonuses, which the district calls "welcome to the community awards," were focused on bringing teachers to the small communities of Ashcroft, Cache Creek, Clinton, Lillooet and Lytton.

"It's night and day on how I feel personally (relative to last year) and the sense that I'm getting as I visited schools this week, there is a tangible difference in morale," Downs said in an interview last week. 

"There just seems to be far more optimism in the year that we are going to have and how we will be able to serve students to our best."

The money was distributed through the group Community Futures Sun Country. Its general manager, Linsie Lachapelle, said the anonymous donor wanted their donation to go toward economic development and had agreed with the group's suggestion to use it to attract teachers.

"They just had heard about the struggles we've had, basically everyone is having, retaining teachers. There's a shortage everywhere," she said.

Lachapelle said the money is being given to teachers in instalments and while there's no requirement for them to stay beyond the year, it's hoped they will grow to love the small communities and remain for the long term.

When asked if there were concerns about a district having to rely on a donation to attract staff, the Ministry of Education and Child Care issued a statement acknowledging "shortages across the entire public sector in a variety of key positions, including in B.C.’s K-12 education system."

The statement says the government announced a $12.5 million investment to support the recruitment and retention of teachers in rural and northern districts, as well as Indigenous teachers.

"Part of this funding has been established to support the implementation of hiring incentives to assist school districts with their hiring needs for hard-to fill positions in rural and remote schools," it says.

"So far, we are hearing that these incentives are making a difference to recruit teachers and fill vacancies for September in school districts like Kamloops-Thompson and Vancouver Island West."

In a statement, BC Teachers' Federation president Clint Johnston said the federation understands "the frustration felt in communities that do not have a sufficient number of teachers, and we share that frustration."

He said a recent sample survey of its members found 80 per cent reported feeling direct impacts from the teacher shortage.

"From the BCTF’s perspective, when it comes to issues affecting teachers’ terms and conditions of employment, including salary and signing bonuses, it is important for these issues to be negotiated with the union as the bargaining agent for all teachers in the province," the statement says.

Downs said using private donations to attract teachers "shows the complexity of this public education system."

"What I think that donation says to me, is the strength of rural communities," she said.

"That schools in rural settings are really often the hub and the heart of the community, and that every community member knows the value of the school, whether they have children or family members in it or not."

This report by The Canadian Press was first published Sept. 7, 2023

 

More post-secondary students rely on parents, stay home to finish school: RBC poll

Inflation is driving more post-secondary students to stay home with their parents as they complete their studies — marking a shift from a decade ago, a poll published by RBC on Wednesday shows.

Almost half of respondents aged 18-29, or 47 per cent, said they plan to live with their parents this school year, compared with 36 per cent of students in 2013, the online survey reported.

The survey, which was conducted by Ipsos and surveyed 1,000 Canadian post-secondary students between June 29 and July 12, found 43 per cent of respondents assumed their parents would be taking care of their financial needs, compared to 29 per cent in 2013.

Jodi Letkiewicz, an associate professor at York University who specializes in personal finance, took issue with the survey's findings, saying she hasn't seen enough evidence to claim students are staying back with their parents while they complete their studies. 

However, she said, at York University — with its campuses in and around Toronto — it is common to see students living with their parents and commuting to campus. 

Letkiewicz also pointed out the release doesn't state reasons why students are choosing to stay home.

"We're going to need more research to speculate this," she said.

"Inflation is a part of the equation but we're in a real housing crunch. ... The real change is the cost of living."

The poll shed light on how post-secondary students are fighting to keep up with inflation. 

About half of them said they plan to take up part-time work as they attend school full-time, cut back on non-essential spending, stick to a prepared budget and regularly monitor their expenses.

The report found about 45 per cent of students expect to graduate with up to $20,000 in debt, a jump from 30 per cent in 2013.

Almost all students surveyed also said they were not good at handling money and would have to learn to better manage their finances.

"Students are looking at how expensive things are and deciding whether it's worth taking on more debt and what may now come as a luxury — live on your own during your post-secondary studies," said Letkiewicz.

"Students are trying to be a little more responsible."

Letkiewicz said the shift could also impact parents who are squeezing their finances, including their retirement, well-being and future, to fund their child's post-secondary education.

The poll cannot be assigned a margin of error because online surveys are not considered truly random samples.

This report by The Canadian Press was first published Sept. 6, 2023.

 

Canada's tech industry experiencing shift away from remote work

When Heather Aleinik was laid off from Shopify Inc. last summer, it was "one of the biggest curveballs" of her career.

The now 29-year-old Calgary woman had discovered remote work was conducive to her neurodivergence and love of travel while at the Ottawa-based e-commerce company, which launched a remote work policy at the onset of the COVID-19 pandemic — a policy it claimed would be permanent. 

Aleinik eventually found a new job at a software firm advertising a "five-year remote commitment," but just as she started to get comfortable, the company built a new office in Florida and its CEO started extolling the benefits of working on-site. She quit just before employees living near the office were ordered back three days a week.

"The idea of going back is terrifying. The idea of being on a bus, being in public transit and for all of it to be made mandatory and we don't have a choice, that's one of the biggest reasons why I'm fighting to stay remote," Aleinik said.

"People get healthier when they're at home. They have better relationships with their family, they can manage childcare."

Aleinik's experience is a sign of a shift rippling through the tech sector as employers move away from entirely remote roles and toward hybrid and in-person work arrangements.

While companies in other industries are also increasingly mandating workers back to the office at least a few days every week, the tech sector's shift is notable — and even shocking to some — because the industry was an early champion of remote work.

In the early days of the COVID-19 pandemic, Shopify CEO Tobi Lütke declared “office centricity is over” and said he'd let most of his workforce remain at home on a permanent basis.

Mark Zuckerberg even hypothesized Meta, then called Facebook, could have half its staff working remotely within five or 10 years.

Wary of being unable to compete with big tech names and not wanting to disrupt workers who had grown accustomed to logging on from their kitchen table or wherever their travels took them, startups seemed poised to let staff work remotely forever, too.

Those arrangements are scarcer these days.

A recent report from jobs site Indeed found that out of the number of Canadians who had some form of hybrid work arrangement, just shy of 60 per cent were fully remote, down from 75 per cent a year earlier.  

"We are seeing the majority of roles that we have posted right now are hybrid and have a city attached to them," said April Hicke, co-founder of Toast, a women's collective and talent organization that shares tech-focused job postings with its members.

The recent move away from purely remote jobs was "very, very quick and very dramatic," Hicke added, attributing much of the change to a ripple effect that began with big tech.

Video-conferencing pioneer Zoom asked employees who live within 80 kilometres of its offices to be on site two days a week in August.

Earlier this year, Zuckerberg prodded staff toward Meta's offices in March, even as he announced 10,000 workers were being laid off and another 5,000 job postings were being cancelled as part of his "year of efficiency."

"This requires further study, but our hypothesis is that it is still easier to build trust in person and that those relationships help us work more effectively," he wrote in an open letter.

Data captured by Meta showed engineers who either joined the company in-person and then transferred to remote or remained in-person performed better on average than people who joined remotely. Engineers earlier in their career perform better on average when they work in-person with teammates at least three days a week, the company also concluded.

Other firms have touted office and hybrid work as builders of camaraderie and made it clear that career advancement at their companies depend on in-person interactions.

IBM chief executive Arvind Krishna, for example, told Bloomberg in May he’s not forcing workers back to the office yet but said those who stick to remote work would find it difficult to get promoted, especially into managerial roles.

Amazon's Andy Jassy appears to agree. The chief executive reportedly told staff in late August “it’s probably not going to work out” for those who won't return to an office.

But getting workers back to the office should be about collaboration rather than career advancement, said Marta Max. The executive operations manager at Nanoleaf, a Toronto-based smart home technology company, tells staff that facetime does not equal more or fewer promotions.

Nanoleaf asks engineering product staff to be in on Mondays and Thursdays, while sales and marketing workers visit the office on Wednesdays.

"We got to the point where we actually figured let's make some days mandatory ... because they need that interaction, that sort of hands-on approach when they're solving complex problems with hardware and software," Max said.

"It's sometimes hard to do online and when you solve it, there's nobody around you to cheer with."

Despite asking staff on some teams to be in on specific days, Nanoleaf offers leeway for staff who moved out of the Greater Toronto Area or have scheduling conflicts.

Max says most of her friends in the industry, however, have been mandated back to offices. When she asks why, they tell her they think their company's chief executive hates working from home, wants to justify the expense of office space or just doesn't trust staff.

Pushing back on such stances is proving tougher because of increasing tech layoffs.

Companies like Shopify, Google, Amazon, Netflix and Microsoft have culled massive numbers of staff from their workforce. Layoffs aggregator Layoffs.fyi counted 231,695 workers across 968 tech companies globally who have lost their jobs this year alone.

"It's definitely more of an employer's market right now, so you may have to be more flexible in terms of salary, job title or where you want to work," Hicke said.

Yet Aleinik had luck finding a remote job, which she started in August. She's confident this employer won't force her back because her contract listed the role as 100 per cent remote and said if there was a move back to the office, it would be optional.

"Those were major green flags, but I would still say actions speak louder than words," she said.

"So if they buy offices and other buildings, ... if they say coming into the office is the best way to get to know your company, those are red flags that I missed before that I definitely don't see here."

This report by The Canadian Press was first published Sept. 6, 2023.

 

Home sick: How hybrid workplaces and employees can navigate flu season

While many workplaces have shifted to hybrid setups coming out of the pandemic, employment experts say workers should be cautious about using that added flexibility to work from home when feeling sick.

It's a situation that some observers of remote work trends predict could become more prevalent as companies increasingly make their hybrid arrangements permanent.

"There is a bit of a return to ... people's comfort level with doing things while not feeling 100 per cent, but that's not everybody by any means," said John Trougakos, a University of Toronto professor of organizational behaviour and human resources management.

With a current uptick in COVID-19 cases in Canada linked to two new variants, along with the usual cold and flu season, employment lawyer Brittany Taylor said it's crucial that both employers and employees take the time now to consider how to handle sick days.

"I'm expecting as we get into the fall these issues are going to be more at the forefront," said Taylor, a partner at Rudner Law.

The growing popularity of hybrid work arrangements has been documented throughout the past year. As of May, 41 per cent of Canadian workers that were considered remote had hybrid schedules, splitting time between on-site and at-home, up from one-quarter a year earlier, according to a report released last month by Indeed Canada.

Recruiting company Robert Half found hybrid working arrangements were favoured by 54 per cent of hiring managers, compared with 49 per cent of professionals surveyed — suggesting a growing alignment that could mean a mix of in-office and work-from-home could be here to stay.

Stephen Harrington, national lead for workforce strategy at Deloitte Canada, said while plenty of Canadian organizations have plans for how people can work flexibly, he has not seen many prescribe rules around sick days.

"This is very early days for organizations figuring out exactly how this is going to work for themselves and their workforce," said Harrington.

People who work from home even part of the time are far more likely to consider working while sick than those who work from an office, he said. 

But that poses risks both for the worker, who could exacerbate their illness by not getting proper rest, said Harrington. It's also a risk for the employer, as evidence shows people are not as effective and are more prone to error when working while ill. 

"I think there may be organizations that are underestimating the social and cultural pressures when you're working and there are deadlines or you feel an obligation," said Harrington.

Employees in hybrid work situations should proactively seek clarity from their superiors on what level of accommodation they should expect when it comes to illnesses and the remote aspects of their work, Taylor said, especially when it's inconvenient or unsafe to come into the office.

That means checking whether they're allowed to work from home while sick on a day of the week designated for in-office work, and if so, whether that would mean they have to come in another day instead.

"Is it going to be a one-for-one scenario like that or is it a lot more flexible?" she said.

"Ultimately, unless (an employee's) employment agreement gives them the right to work from home at their discretion, the employer is entitled to set the rules of the workplace, including when remote work is going to be permitted. So understanding those rules as an employee is key,"

Trougakos said businesses would be wise to adopt hybrid work models that are less "rigid" about which days staff are required to come in.

"If it's not a well-thought-out model and it's just put in a cookie cutter kind of way together, saying, 'Well, you have to be there X number of days with no flexibility,' then they'll run into some pushback from employees," he said.

"There will be some issue when people are inevitably going to get the next wave of COVID, flu, whatever other illnesses are going to be popping up."

Sunira Chaudhri, founder and partner at Workly Law, noted that although workplaces have made efforts to offer accommodations in recent years, the balance of power has started to shift back to the employer. That has even played out with some employers using software to monitor their employees' productivity when working remotely.

"I think flexibility comes with costs," Chaudhri said.

"Employers have trended away from being as forgiving or tolerant of greater vacation and sick day policies with remote workers."

Chaudhri said it's important for employers to set clear boundaries on whether they will even allow their staff to work while sick. She urged employees to adhere to those boundaries when they are outlined.

Offering to work from home when sick can blur the lines, said Chaudhri. 

"No employee should work while sick. A sick day should be a sick day and confirming that and being very clear … actually increases morale. It increases communication and reduces friction and potential liability."

This report by The Canadian Press was first published Sept. 8, 2023.

Online gig work is growing rapidly, but workers lack job protections, a World Bank report says

WASHINGTON — Online gig work is growing globally, particularly in the developing world, creating an important source of employment for women and young people in poorer countries where jobs are scarce, according to a World Bank report released Thursday.

The report estimates the number of global online gig workers at as many as 435 million people and says demand for gig work increased 41 per cent between 2016 and the first quarter of 2023. That boost is generating concern, though, among worker rights advocates about the lack of strong job protections in the gig economy, where people work job to job with little security and few employment rights.

While location-based gig services such as Uber, Lyft and TaskRabbit require labour like moving and delivery, online gig assignments can be largely done at home. Tasks include image tagging, data entry, website design and software development.

For women in the developing world, “there aren’t enough opportunities and they really struggle to get good quality jobs because of constraints and household responsibilities,” said Namita Datta, lead author of the World Bank report.

She said online gig work provides women and underprivileged youth “a very interesting opportunity to participate in the labour market.” Roughly 90 per cent of low-income countries’ workforce is in the informal sector, according to the report.


Worker advocates stress the precariousness of gig work and the lack of job security, accountability from management and other social protections to workers' health and retirement.

“The economic conditions in developing countries are different from the U.S., but one thing that is universal is the importance of developing and prioritizing good jobs — with a basic minimum wage and basic labour standards," said Sharon Block, executive director of Harvard Law School’s Center for Labor and a Just Economy. ”There might be different pathways and timelines of getting there, but that's a universal value.”

The report outlines how social insurance coverage is low among gig workers globally. Roughly half of the surveyed gig workers did not have a retirement plan and as much as 73 per cent of Venezuelan gig workers and 75 per cent of Nigerians did not have any savings for retirement.

Lindsey Cameron, a management professor at the Wharton School of the University of Pennsylvania, said “because there are so few options available to workers in these developing nations,” online gigs — with or without social protections — were better than no job options for many workers.

“And since workers are economically dependent on this work, and they don’t have any sort of basic protections, that’s what is ultimately exploitive. The odds are always in the platform’s favour, never the workers favour.”

In the United States, gig workers, both online and onsite, represent a growing portion of the workforce and there is ongoing contention about worker rights on these platforms.

A 2021 Pew Research study, the latest available, shows that 16 per cent of U.S. adults have earned money through an online gig platform, and 30 per cent of 18- to 29-year-olds have done so.

Transportation and delivery companies Uber, Lyft, and Grubhub have been entangled in dozens of lawsuits over minimum wage, employment classification and alleged sexual harassment.

“Right now, there are too many jobs where workers are misclassified,” Block said. “Which means many workers are not guaranteed minimum wage, do not have a social safety net, they don't get unemployment, or workers compensation.”

“Now some states have stepped in to mandate paid leave, but if you don't live in one of those states, you have to play the good boss lottery."

The World Bank report was based on surveys across 17 countries, including Egypt, Argentina, Nigeria, Russia and China.

 

Airlines face growing pressure from pilot unions, as threat of brain drain looms

Pilots are demanding better wages and benefits from their employers, raising financial pressure on airlines that are just starting to recover from the pandemic.

The union representing some 320 aviators at WestJet Encore, the carrier's regional service, announced Tuesday they plan to launch negotiations on their second collective agreement.

The move by the Air Line Pilots Association comes after 1,800 pilots with WestJet's main operation and its budget subsidiary Swoop ratified a new deal in June that brings them onto a level pay scale, giving flight crews a 24 per cent wage bump over four years and resulting in Swoop's shutdown at the end of October.

Days later, some 4,500 Air Canada pilots kick-started the bargaining process, as unions seek gains that will bring them closer to deals in the U.S. 

Between March and September, pilots at Delta Air Lines, United Airlines and American Airlines secured agreements that included four-year pay hikes ranging from 34 per cent to 40 per cent.

John Gradek, who teaches at McGill University's aviation management program, said losing a pilot is a big deal to an airline because replacing them is time consuming and expensive.

"The airlines will do whatever it takes in order for them to protect their pilot base. And that approach is going to cost a lot of money," Gradek said.

Increasingly, aviators have been seeking sunnier skies south of the border.

While the trickle has been creeping up since 2017, the number of Canadian pilots applying for certification to fly commercial aircraft in the U.S. nearly quadrupled to 147 last year from 39 in 2021, according to the Federal Aviation Administration.

"We're in a world where attrition is a key concern of the airlines," Gradek said of Canadian carriers.

"Where do you go and get pilots? You go to regional carriers, you go to the bush pilots to get them. But they're running out of pilots as well, so it gets to be really, really tricky."

Labour shortages continue to plague the aviation industry as the sector emerges from COVID-19 and the travel turmoil of the past year, with a dearth of workers in areas ranging from the flight deck to air traffic control and ground handling.

The dearth of workers also lends leverage to their bargaining efforts, particularly for pilots in short supply.

"That leverage has certainly been demonstrated through the negotiations that we've seen so far," said Duncan Dee, former chief operating officer for Air Canada.

"The U.S. wage settlements have been looming over the Canadian industry for quite some time. But really what has set the tone was the pilot negotiations that took place at WestJet earlier in the year, where they settled for quite important uplift in pay and changes in work rules."

 

WestJet Encore pilots file notice to begin contract negotiations with management

Pilots with WestJet Encore are gearing up to bargain their second collective agreement.

The Air Line Pilots Association says it's filed notice to open contract negotiations with the regional carrier for WestJet. 

The association says WestJet Encore needs to give its nearly 400 pilots drastic improvements on wages, career progression and more to keep them.

It says management has been unwilling to address pilots' main concerns despite what it calls a mass exodus from their ranks so far this year. 

Earlier this year, WestJet acquired Sunwing Airlines, announced it would be shuttering its discount subsidiary Swoop, and then announced it was merging Sunwing with its mainline business. 

In May, WestJet narrowly avoided a long-weekend pilots strike after it reached a last-minute deal with its mainline and Swoop pilots.