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The Ontario Chamber of Commerce has been working behind the scenes with local Chambers since the beginning of the COVID-19 crisis to ensure the needs of 

the province’s business community are met. Besides weekly ‘town hall’ meetings allowing Chambers to connect with various provincial and federal leaders to obtain firsthand information, the OCC has been advocating government on many issues to assist businesses during their time of need. And as Ontario begins to reopen its economy, there are many changes ahead regarding the way business will be conducted. 

We recently chatted with Ontario Chamber of Commerce President and CEO Rocco Rossi about the effects of this crisis and what lies ahead for businesses:

Chamber: What role has the Ontario Chamber of Commerce played during the COVID-19 crisis?

RR: We serve as a conduit between businesses and various levels of government so we’re giving them the best advice as to where the real pain points are. As they (government) have been putting out policies, we’ve been actively advocating for changes, adjustments, and then communicating as clearly as we can, to our members, who, quite frankly, have been overwhelmed by this crisis. I think they’ve (Chamber network) been incredibly appreciative, particularly the smaller ones because the smaller the Chamber you are, the fewer resources you have. You literally are wearing every hat. We were very quick out of the gate with an online tool that all our Chambers could share and build on for their own members and customize to meet their needs.

Chamber: What do you see as the role of Chambers at the local level, especially as Ontario moves towards reopening?

RR: Chambers have multiple roles and we’re seeing examples of it everywhere. One, is sharing stories. The Cambridge Chamber has been fantastic about raising the issue of franchises and raising the issue that some owners are paying themselves through dividends versus income so they’ve been falling through the cracks, and we’ve been pushing on that. Cambridge was a big part of the push in saving main street and talking about rent subsidies. You also have Chambers like Newmarket that are working with their local governments to create programs helping to encourage shop local and building networks of retired businesspeople to help SMEs navigate their way through this. Chambers are playing an absolutely critical role. 

Chamber: Are you satisfied with the response to the crisis from the provincial and federal levels of government?

RR: Governments have been moving at a pace far faster than they ever have before. Oddly, for many, it still won’t be enough because this has gone on longer than anyone has anticipated and in a world with no vaccine, and a required and appropriate slow reopening, there will be more damage and loss. But we’re doing everything in our powers to ensure to keep as much as the economy afloat as possible. As a society, we need to have that recovery at the end of this. The only sustainable solution to all of this is economic recovery. Government cannot continue to print money indefinitely. They’ve done some remarkable and extraordinary things which we agree are important to do, but wow, the numbers are eye watering at this point and will only continue to grow. So, we need to start bringing those unemployment numbers down. We need to start opening businesses appropriately and safely so that we will be able to pay taxes as opposed to the need for more government support. That’s the ultimate way we get to the other side of this.

Chamber: Is the right course of action being utilized for Ontario’s reopening? 

RR: I will say, to paraphrase Sir Winston Churchill, ‘It’s the worst possible reopening plan, except for all the other reopening plans’. The bottom line is we’ve all sacrificed, some sadly and tragically with their lives. We have to do this right the first time and so it has to be slow, we applaud the government for that. We don’t want to have spikes that will take us back to a total lockdown because that would be deadly for our psyche, for our confidence, and for our economy. So, we want to do this properly and to do that we need more testing capability, we need more tracking and tracing, and we need more access to PPE that goes beyond our healthcare workers that have, rightfully, been the focus up until now. If you’re going to open up businesses and build confidence, that PPE is going to be seen more in businesses and training for our employees so that again, both the employees and consumers have confidence that every step that can be taken is being taken. Until we have a vaccine, we will be co-existing with COVID-19. No one can promise, without a vaccine, that there will be zero future infections and zero future deaths because that is not attainable. What should and must be attainable is zero tolerance for incompetence and zero tolerance for doing things too quickly. If we have the training and the PPE, and the testing, tracking, and tracing, anytime it flares up we can quickly put that fire out. 

Chamber: What is an important takeaway for business owners from this crisis?

RR: One of the big things we’ve seen through all of this is to uncover and highlight even more so the digital divide in Ontario. Those who’ve been able to make the transition to be able to do more of their business online have actually been able to weather the storm stronger and those habits being created now – even my parents who are in their eighties are now shopping online – are not something that’s going away. However, it underscores the need for the infrastructure for broadband to be everywhere because right now, too many communities, individuals, and businesses don’t have access to broadband. If they are going to recover and participate in the economy of the 21stcentury, that infrastructure has to be there in the same way that in the post-war period a network of highways and other infrastructure was required to rebuild and grow the economy. 

Chamber: What advice can you offer SMEs?

RR: Make sure you’re thinking about how you can safely reopen. I know you’re worried about cash flow; I know you’re worried about debt and worried about meeting that next rent cheque, but the reopening is beginning. Those that plan everything out so that when they do reopen consumers and employees will want to go there, are the ones that are going to thrive in this next stage.

The effects of COVID-19 continue to test our economy, but the fiscal uncertainties surrounding this unprecedented crisis has not stopped many local businesses from reaching out to help others.

From local food banks, to frontline workers, to seniors and those with disabilities, the Cambridge business community has come forward to ensure those in need during this pandemic are not forgotten.

“The Cambridge community has always been exceptionally supportive of the Cambridge Self-Help Food Bank and they’ve stepped up for us in a way like we’ve never seen before,” says Dianne McLeod, the food bank’s interim executive director. “We’ve had lot of different restaurants donating products to us, whether it’s milk or eggs; stuff we’re not typically able to offer to everyone.”

But financial donations have also been coming in to allow the food bank to purchase some much-needed supplies for the 100 or so clients it serves daily, and Dianne credits many local businesses for this valuable support.

“We have all been so affected by the COVID-19 crisis and even though as a business have had our challenges, we all want to help those who truly need help,” says Christina Marshall, Director of Business Development at Gaslight Events Company Inc. which operates Tapestry Hall.

Her company, through its Tapestry Hall Delivers program which offers healthy meals via delivery and curbside pickup, has been donating $1 from every order to the Cambridge Self-Help Food Bank and The Food Bank of Waterloo Region.

“We have had two very solid weeks of the food delivery services, which means two weeks of orders that are supporting the food banks in our region,” says Christina.

But tasty dishes are not the only way the food bank has benefitted. Funky t-shirts emblazoned with the slogan ‘Eat, Sleep, Quarantine, Repeat’ have been popping up all over our community on social media thanks to a charitable partnership between MitoGraphics and Cambridge Centre Honda.

Since mid-April, the two companies have sold dozens of the shirts for $20 each, with every cent from each sale being divided equally between not only the food bank, but Trinity Community Table, Cambridge Shelter Corporation (The Bridges), and Women’s Crisis Services Waterloo Region.

“A friend in Peterborough who owns and operates a Honda dealership was creating t-shirts and I loved the idea,” says Cambridge Centre Honda’s Nicole Pereira, explaining how the idea came about. “I thought if Peterborough can make this happen, so can Cambridge.”

With the expert help of MitoGraphics’ Kristen Danson, the women went to work creating their #QuarantineTees in several colours and through the power of social media have started a virtual movement of support.

Originally, they had hoped to sell 50 of the shirts but during a pre-launch weekend sale in mid-April wound up more than doubling their sales.

“We both love our community and think the people of Cambridge are awesome, so it’s not surprising that we have received such great support,” says Nicole, adding the t-shirts have now been sold as far west as Alberta and on the East Coast.

She says the four charities have been great at promoting the shirts on social media and that one local store, Once Upon a Child, has also been selling them via its online store.

“There are so many great examples of businesses giving back to our community,” says Nicole.

For Golfplay’s President and General Manager Steve Harris, giving back seemed liked the best thing his business could do since it was required to shut its doors along with thousands of other Canadian businesses back in March.

“There are lots of needy organizations,” he says, noting after sitting idle for about two weeks, Golfplay fired up its stone pizza oven in its Ironwood Bistro to try a new approach. “I thought, we’ve got a perfectly good pizza oven so why not sell pizzas and give some of the money to charities?”

They tried doing it one day a week and gave $10 from every pizza sold, starting with the Cambridge Memorial Hospital and The Bridges shelter. They quickly sold out and began doing it three nights a week (Thursday to Saturday), selecting different charities each week to benefit, including Grand River Hospital, St. Mary’s General Hospital Foundation, Family & Children’s Services Foundation, and more recently the Sunnyside Foundation.

Orders for pizzas and other menu items are taken online for fast and easy curbside pickup.

“We just kind of go around,” says Steve, referring to how the charities are selected. “All of them could use help because their fundraising events have been cancelled.”

He says working with charities is also a good way to foster new relationships and potential spinoffs down the road when restrictions eventually ease.

“This has sort of helped increase the awareness of what we do here. People at least get the chance to sample our food,” says Steve, joking many people may not think of getting great pizza from a place called Golfplay.

“We’re trying to build a business and trying to give something back in the process,” he says, describing the situation as a ‘win-win-win’ for all involved. “The customers win because they feel good about helping others, we win because we get more exposure and the charities win because they receive some money in the process.”

Support among those in the business community is crucial says Christina, especially as the recovery process begins.

“By banding together and helping each other get through this, we show our strength as a community economically and socially,” she says. “If a business closes, the employees lose their income and that means other businesses do not benefit from that person’s buying power.”

Keeping that in mind, Tapestry Hall’s Delivers and HIP Developments have formed a partnership to create the Feeding the Frontlines program. On the Tapestry Hall Delivers’ website, customers have the option to contribute to the program which aims to see $5,000 in meal vouchers distributed to essential workers in Waterloo Region, including those working in healthcare, shelters, and grocery stores. On the site, the public can nominate businesses where essential workers are busy.

“They are doing the hard work in this community,” says HIP Developments President Scott Higgins. “We are just trying to find ways we can say thank you and make their family lives a little easier.”

Christina agrees and says these workers have gone into work each day to ensure the rest of us have the things we need.

“We wanted to do something kind to say thanks,” she says. “A stress-free meal may not seem like a lot, but when you have had a long and sometimes scary week at work, one less thing, like cooking a dinner or meal planning, can help ease that stress.”

Easing stress for others is what prompted Driverseat Cambridge owner Sean Mulder to follow the lead of the company’s Calgary office and offer a ‘shop and drop’ program free to seniors and those with disabilities. Those in need of groceries can call, or text Driverseat and will be provided with a link that allows them to fill out a grocery order.

“It’s kind of cool. We’re the third location to test this out,” says Sean, adding having fewer people going to grocery stores means less points of contact to spread the virus. “This makes great sense.”

Driverseat chauffeurs, many of whom Sean says are doing this on a volunteer basis since many only work part time for the company, do the shopping for the customer using a preauthorized payment system and then deliver the groceries following strict physical distancing guidelines. Currently, Driverseat is offering this at a few stores but expects that will increase as the program expands.

“A lot of our posts on social media have received a wide reach and from that, we’re getting quite a lot of people calling and messaging us,” says Sean.

He says since a huge portion of Driverseat’s regular services have been scaled back considerably since the lockdown began, this has allowed the company team to stay connected. Also, Sean says it has been a boost for those in need and are isolated on their own.

“It gives people peace of mind. We’re a person they can talk to,” he says, adding clients can call the chauffeur if they have special requests that may not be on the grocery list, or if they forgot to add something. “They’re not just punching information into an app; with us there’s a voice you can talk to.”

Sean admits even though businesses are facing challenging times it shouldn’t prevent them from lending a hand.

“There’s a huge need in our community and if you have the means or the time, you should do something,” he says.

Christina agrees, especially when it comes to assisting the non-profit sector.

“If you have the chance to help those that are helping others, isn’t it the right thing to do?” she says.

At the Cambridge Self-Help Food Bank, Dianne says she is thrilled by the extent of generosity from the business community which has included free security service and the creation of safe work stations for staff to work with clients at the front of the building thanks to the donation of free reno work.  As well, she says the local CAA office has deployed its vehicles to pick up food bank donations from the grocery store bins.

“No matter what people’s struggles are, they’re still considering us and donating to us which helps us keep going,” says Dianne.

Contact Information:

For information about Tapestry Hall Delivers, visit www.tapestryhall.ca

To order a #QuarantineTee visit www.cambridgecentrehonda.com/community-fundraiser/

For information about Golfplay, visit www.golfplay.ca

Contact Driverseat Cambridge at www.driverseatinc.com, or call 226-241-3736

For information about the Cambridge Self-Help Food Bank (which now has community donation bins set up at St. John’s Anglican Church in Preston and PetroKing in Hespeler), visit www.cambridgefoodbank.org

Energy producers throughout the world are in uncharted territory. With nearly half the world’s population under some form of lockdown, an equivalent of the United States’ energy demand has evaporated from the global market. Poof.

This pressure alone was sufficient to put long shadows ahead of the industry, but the breakdown of the production cap brokered between OPEC nations and Russia has glutted the market with oil, sending prices down at a breakneck speed, in some corners of the market even into negative territory. Only an oracle would dare predict what is next for Canada’s oil and gas industry. Mere mortals must content themselves with taking stock of what is and what is not within our power as we muddle through the shadow-world of an ‘upside down’ energy market.

Until a vaccine is developed, the price of Canadian oil, like oil everywhere, will remain hostage to a pathogen. Strangely, what cannot be changed begets new choices. The federal government is at the crossroads. It can listen to the oil and gas sector’s permanent critics and shutter the industry, punch a 6% sized hole into Canada’s GDP, and put Canada in a position where we decide to let others be responsible for our energy security and for halting climate change internationally. Today, this might be the politically easy choice for our government to make, but easy choices pave roads to unhappy endings.

The other choice involves helping the industry carve a path in a global energy system that is most likely on a new trajectory. Peak oil may come earlier now, but there will still be demand, albeit less, for oil and gas over the next three decades, at least. With the right supports, Canada can gain market share by innovating to create less emission intensive oil and gas products, provide billions to governments in revenues, and drive investment in renewable clean technologies. Market share will increasingly be up for grabs given that current estimates suggest nearly 100 U.S. shale producers are likely to file for Chapter 11 in the months ahead. Decisions made today could see Canada improve its economic footing and maintain energy security in a world where autarky is fast becoming more attractive to world leaders of all political stripes.

So, what can the federal government do to help the industry, and the nearly one million women and men employed by the sector across this country, pass through the darkest valley they have ever faced?

Start by keeping as many of the people employed in the sector across the country working by targeting resources for well reclamation, and continue research and field work on carbon mitigation technologies. Government can also pause all new regulations and standards that increase the cost to the sector, from the Clean Fuel Standard to the increase in the carbon tax. This would provide companies that have already slashed capital costs with a little more capital to ride out a period where they are producing at a loss.

Such measures would augment the benefits of the federal wage subsidy, increased to 75%, in giving these companies time to adapt.

Perhaps most importantly, Canada’s energy producers have the vision to further reduce emissions, some before this crisis could see a path to net-zero by 2050. Realizing this vision demands new infrastructure projects and investment. The industry continues to be let down by a regulatory system that increasingly rewards investors looking outside of Canada. Infrastructure projects of all types will be crucial to Canada’s economic recovery. Reduced decision timelines and concerted efforts to guide projects key to Canada’s energy resiliency could go a long way to driving Canada’s economy and supporting investment in the sector.

Some choices are hard. Some are not. Support for our oil and gas sector today, will allow the sector to carry Canada tomorrow.

For more information, please contact: policy@chamber.ca

As the days turn into weeks in the battle against COVID-19, it’s imperative for businesses to adapt to this new reality.

Many are now using videoconferencing platforms such as Zoom, Cisco Webex, and GoToMeeting as a method to not only keep in touch with their co-workers but as an important tool to conduct business.

Mastering this technology is key when it comes to marketing your business says Mike Jennings, president of the Cambridge-based digital marketing agency MoreSALES.

“A lot of companies will judge you based not only on your ability to communicate but your ability to use technology well,” he says, explaining tech-based firms, along with banks and insurance companies, are more willing to work with organizations that are comfortable with technology.

Mike says Marshall McLuhan’s famous quote, ‘the medium is the message’, still holds true, especially in today’s technologically advanced business world.

“Marketing is really about building trust as quickly as possible so the more you can look competent and communicate your message clearly and efficiently, the better,” he says. “That’s where Zoom can really be a benefit to companies.”

Mike says his company had used GoToMeeting in the past but switched to Zoom approximately two years ago after finding it more reliable and easier for clients to navigate.

“We’ve been using it ever since and we’ve also been using it as a marketing tool,” he says, referring to the way Zoom allows his company to present ideas to clients through screen sharing and webinars.

However, Mike says prior to the arrival of COVID-19 his staff often didn’t use the video portion of the platform which can take up a great deal of bandwidth unless there is good connectivity. And while some companies have been scrambling when COVID-19 struck to find ways for their employees to work from home, that wasn’t the case at MoreSALES.

“Our staff has been able to work remotely for years so it wasn’t a cultural shift at all,” he says, noting in 2016 his company switched to a smaller office footprint.

When it comes to using Zoom, or other videoconferencing platforms, Mike is a firm believer that “familiarity breeds confidence.”

“Getting really familiar with the platform is important because it makes things go a lot smoother,” he says. “So, get familiar with the platform and learn where all the buttons are.”

He says getting to know how to use the ‘mute’ button can be key during an online meeting or discussion. 

As well, being aware of what may be in your background is also important.

“Nothing is worse than people seeing stupid stuff there, and it’s distracting,” says Mike, adding common sense should prevail.

Also, he says camera position is another big consideration a participant in a videoconference should think about before joining the group.

“It’s all about camera work in a sense. Ideally, the camera should be pointing dead on or pointing down,” says Mike, adding the same principles people use when trying to take that ideal selfie can be applied in this situation.

And when it comes to ‘Zoombombing’, a concept which has seen a recent surge of hackers and jokers interrupt online discussions, he says there are steps that can be taken to discourage unwanted ‘guests’ from joining.

“You can set up a password and email it to those only in the meeting,” says Mike. “You can also set up a waiting room and participants can be accepted before coming into the meeting.”

Most importantly, he says do not advertise your Zoom meeting on social media to ward off potential hacking.

He believes using platforms like Zoom will likely become the norm for many businesses once the crisis finally ends and people become more comfortable with the technology.

“If you know what you’re doing and you’re able to quickly adapt your process to video marketing and video calls, and still communicate clearly and well – and not have clutter in the background and fumbling with buttons and being useless with technology – that goes a long way,” says Mike.

Here’s a few Zoom tips that may help:

• Use a Zoom-generated meeting ID, rather than your personal ID;
• Have attendees register to attend to dissuade crashers;
• Select one or more alternative hosts to help you manage the meeting in the event of an issue;
• Discuss potential issues with your co-hosts and create a plan to respond to technical difficulties or other disruptions;
• Disable the option for attendees to join before the host and enable the option to mute participants when they enter the meeting;
• Control screen sharing during the meeting;
• Close the door if you can between you and anyone else in your living space, or use headphones;
• You can also download the Zoom app to your phone and go audio-only;
• Automatically schedule meetings – and let people know about them;
• Create recurring meetings with saved settings and one URL;
• Record the call as a video.

I am a small business owner based in Cambridge, Ontario.  Along with my partners, we operate two manufacturing operations employing a total of about 25 people.

I am proud of all of the response of our political leaders to this crisis on all levels – local, provincial and federal.  They have taken a sober and analytical approach to the immediate needs of the citizens of this country.

Their willingness to commit funds, resources and support to our front line workers, small businesses and all in need will get Canada through this ordeal.

As a business owner, my top priority is always looking ahead to determine how I can not only succeed; but avoid unexpected disruption to my team; and minimize our potential for risk of any kind.

This is where I think the business community needs more support from our leaders.

The question of when we should re-open for business is open for debate.  The leaders in Canada, USA and abroad have differing opinions on this matter. 

There is only one question on my mind – what is required for me to do business in a way that will be safe for my team, clients and supply chain?  This is the question that must be answered prior to our return to regular business.

There is no doubt in my mind that the scientists of the world will determine when it should happen; using the tools and expertise available to them.  It brings me comfort to know that our Canadian politicians are being guided by science in their decision making process on these issues.  

However, there is another component to this decision that I think we are neglecting.  Whenever we return to work, it will be to a new business landscape.  There are new risks, new considerations and a higher expectation from the community for business owners to provide a safe working environment.  As a community, we need to determine what will be required to have in place prior to a return to “regular” business. Until we have a vaccine / “herd immunity”, do workers require masks to be safe?  Do we need to require hand sanitizer at entry points to work areas and require all team members to use?  In Taiwan, there are some common practise expectations for citizens that have allowed them to maintain a very low infection level of COVID without restriction on children being at school, or businesses operating normally.  What can we learn from their example that can help us to prepare to resume our work?

If Toyota, Honda, or even my business or a local hair salon re-opened in two or four weeks without making any adaptations to how the risk of COVID transmission is controlled; how will we have made progress against this disease?

The saying “time heals all wounds” has never resonated with me.  Time doesn’t heal all wounds; but time does offer us the opportunity to prepare for what is coming at  us next.  We know that the economy will have to resume prior to COVID being completely eradicated.  The question is – what will we as a community do to mitigate the risk of another peak of infection as we make that return to the new normal?

There is no question that children will have to return to school; I am less concerned about when that happens than I am about what the plan is to keep them safe and healthy once they are there.  We have the example of how Taiwan has made this work; kids wearing masks and having plastic cubicle style dividers between desks during meals.  Will we use this time to learn from their example and adapt our own action plan for what is required to be in place prior to resuming their in class education?  My hope is that we do. 

The Cambridge Chamber of Commerce is starting to gather experts and business owners to start this discussion.  I am proud to be a part of this discussion; I look forward to learning and planning together with others to determine how we as a business community can plan to get back to business.  This is new territory for everyone – consumers, business owners, employees, politicians, government, youth and seniors.  If we can agree on the supports that are needed to re-open in a safe manner, the time spent until that happens can be spent planning and making the required changes to how we do business to accommodate the new reality we live in.  If as a community we neglect this opportunity to plan and adapt, we are destined to repeat this cycle of the pandemic again in the not so distant future.

This is work that our Chambers of Commerce, professional associations, industry associations, regulatory bodies or governing standard registrars, perhaps the labour unions and school boards are well poised to do.  They have connections to business in their sector, a communication channel with a broad range of companies in a vertical market, and the support of their members.  If we all pressure these organizations in our own industries to get to work on our behalf, we can start planning for the future.

It’s time to change the question from “when can we re-open” to “what is required for a safe and healthy re-opening in my workplace to get through this crisis”?

Let’s get to work.

Kristen Danson

Managing Partner

MitoGraphics Inc. / Swift Components Corp

519 240-4205 Direct

The impact of the COVID-19 crisis is affecting all of us in countless ways.

But for the most vulnerable in our community, the impact is even greater.

That’s why Dianne McLeod, interim executive director of the Cambridge Self-Help Food Bank, is urging everyone to help.

“Even if you only put an extra can of something in the donation bin at the store that would be fantastic,” she said, noting the food bank driver has been picking up donations daily from the grocery stores.

The food bank, which normally assists approximately 1,600 families a month, has been providing its clients with pre-packed hampers of donations since the crisis ramped up and has seen many of its supplies dwindle quickly.

As of Wednesday (March 18), Dianne says the food bank was running low on many staple items, including peanut butter as well as pasta and pasta sauce.

“I’m not sure about next week,” she admits.

Dianne was grateful to receive some donations of perishable foods from local restaurants who’ve decided not to provide takeout and close their doors due to the crisis.

“They’ve been sending their stuff to us, which is great,” she says, adding the food bank also purchased $8,000 worth of supplies. “Unfortunately, some of the things are not available to purchase at all.”

Among the donations needed are rice, canned fish, child friendly snacks, canned fruit, soups and stews, and oatmeal.

Besides buying supplies, the food bank has also altered its hours of operation and now offers its community lunch in a ‘come and go’ format rather than a sit-down meal.

But it’s the clients that can’t make to the Ainslie Street South facility that are causing Dianne great concern.

“One of the biggest ways to help us right now is to check on your elderly neighbours and bring them some food,” she says, explaining the food bank has altered its in-take system to make it easier to get supplies to those in need.

In terms of emergency planning, Dianne says the food bank was already well prepared thanks to its former executive director Pat Singleton who put plans in place during the SARS and H1N1 crises. This includes providing the necessary emergency equipment.

“Everyone is feeling safe down here,” she says.

For information about the food bank, including a link to make a financial donation to Canada Helps, please visit  https://cambridgefoodbank.org/blog/

First you have the Provincial Government with Bill 148 and then you add what our Federal Government wants to do regarding taxes and in reality it just adds up to a nightmare for small businesses. Greg explains in this weeks' 'The City'.

Big increases to minimum wage are becoming fashionable in Canada: first Alberta (from $12.20 currently to $15 in October 2018), then B.C. (from $10.35 to $11.35 in September 2017) and now Ontario (from $11.40 to $15.00 in January 2019, a 30% hike in 18 months). Are workers better off or does it mean fewer jobs?

The debate has been ferocious because economists don’t agree, but let’s look at the fundamentals. The government accepts that carbon taxes are effective at reducing emissions because if you make something more expensive, people will use less of it. We agree, but the same logic must apply to wages. And, actually, a business owner faced with the rising cost of an input (labour) has three options:

• Absorb the added cost out of her profit margin
• Raise prices
• Reduce use of labour by substituting in morecapital or simply making do with less work

Let’s take these in order. Some businesses are so spectacularly profitable that owners can just absorb rising labour costs. But Apple and Microsoft don’t use minimum wage labour. If we look at profit margin by industry, the biggest users of minimum wage labour are in retail and food service, with razor thin (below 3%) margins. There is very little room to absorb these costs, and if a business is not profitable, there is not much point in keeping it going.

What about raising prices? The critical ingredient in business success is getting the right price point for your market. One restauranteur told us that the lunch menu in her neighborhood has to be $5-$8, any higher means flirting with disaster. In retail, the competition is with online giants, like Amazon. Often, there is no room to raise prices without driving away customers.

The third option to cope with rising wages is making do with less staff. This is controversial because many studies show that minimum wage can be increased without a corresponding rise in unemployment.

That’s why the recent Seattle study produced such a bombshell. Washington state collects detailed data on hours worked and it showed how part time workers with irregular schedules are cut back. Seattle’s minimum wage hike reduced the total hours worked by the low-wage workforce by about 9% while raising their wages by only about 3%. The net loss to workers was an average of $125 a month. This is a big, immediate hit to the most vulnerable workers.

In the long-term, minimum wage hikes can also drive labour-saving capital investment. The former CEO of McDonald’s told Forbes, “demands for a much higher minimum wage would force businesses with small profit margins to replace full-service employees with costly investments in self-service alternatives.” At the time, labour groups accused business owners of crying wolf. McDonald’s is now rolling out touchscreen selfservice kiosks across Canada and the U.S.

There is some evidence that modest increases in minimum wage can be done without disrupting labour markets, but governments have to be cautious about hurting competiveness. Previously, I had said there are three options to deal with rising costs, but there is actually a fourth and a fifth option: shut down or move to a different jurisdiction. Let’s provide input to the Government of Ontario to prevent this from happening. The Ontario Chamber of Commerce has
done some great work on this issue and has a report that can be viewed here.

For more information, please contact:

Hendrik Brakel

Senior Director, Economic, Financial & Tax Policy

613.238.4000 (284) | hbrakel@chamber.ca

The Liberal government wants to introduce a minimum wage increase to $15 dollars an hour by 2019. This isn't a move that best helps the people of Ontario nor is it the right move. Funny enough... These newly reformed labour laws won't fully come into effect until AFTER the provincial election is over with. Is it about helping the people of this province? Or is it a move for someone to keep their Premier job?

The increasing frequency of cyber attacks is costing Canada billions of dollars a year and hindering our ability to compete in the global economy, says a new report from the Canadian Chamber of Commerce. Cyber Security in Canada: Practical Solutions to a Growing Problem finds that cybercrime is an increasing concern for businesses and proposes cooperation between government and the business community to improve security.

“A study from the Center for Strategic and International Studies found that Canadian businesses are losing over $3 billion a year to cybercrime,” said the Hon. Perrin Beatty, President and CEO of the Canadian Chamber of Commerce. “It’s not technology-savvy security experts committing these attacks. Anyone with a computer and an internet connection can now disrupt services or hold data for ransom. What costs a criminal $100 may end up costing a business millions in lost money, time and reputation.”

Small businesses are particularly susceptible to cyber attacks because they often lack the financial resources and technical expertise needed to protect themselves. “SMEs comprise 98% of the Canadian economy. Nearly half have been the victim of a cyber attack,” said Mr. Beatty. “Their focus is on recovery instead of prevention. Unfortunately, recovery is often not possible. The average cost of a data breach in Canada is $6 million. Most small businesses would not be able to survive losing a tiny percentage of that figure.”

The report’s release comes after the federal government’s 2017 budget included $1.37 million for the fiscal year to continue programs already in place for risk assessment of critical infrastructure but made no direct mention of cyber security. “Government can’t do everything but they need to play a leadership role in securing Canada’s digital landscape for everyone,” said Mr. Beatty. “We need a public-private approach to address this urgent challenge.”

The report, released at the Lockheed Martin Canada IMPACT Centre in Ottawa, lays out a path for closer collaboration between government and business on cyber security, including providing incentives for security innovations and developing programs to increase workforce digital literacy. “By creating a stronger, more resilient cyber security framework we can better protect both our businesses and our citizens,” concluded Mr. Beatty.

The Canadian Chamber of Commerce is the vital connection between business and the federal government. It helps shape public policy and decision-making to the benefit of businesses, communities and families across Canada with a network of over 450 chambers of commerce and boards of trade, representing 200,000 businesses of all sizes in all sectors of the economy and in all regions. Follow us on Twitter @CdnChamberofCom.

Guillaum W. Dubreuil
Director, Public Affairs and Media Relations
The Canadian Chamber of Commerce