Weekly Digest – 12th July 2024

Weekly Digest – 12th July 2024

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Canada’s economy grew by 0.3% in April, with some sectors recovering.

Canada’s economy grew by 0.3% in April, according to Statistics Canada, marking a positive trend after a period of stagnation. This growth was driven by strong performance in key industries such as wholesale trade, oil and gas extraction, and manufacturing, which played a crucial role in bolstering overall economic activity for the month.

The data met expectations, as analysts had forecast a 0.3% GDP growth for April based on various economic indicators. This positive performance, following zero growth in March, suggests a hopeful outlook for the future. If these key industries continue to perform well, Canada’s economy may see further improvements in the coming months.

B.C. port employer threatens to lock workers out after union announces strike.

The Canada Industrial Relations Board (CIRB) has declared a strike vote by a union representing ship and dock foremen to be illegal. The decision, following an investigation, found significant procedural issues, particularly that the vote involved only employees from one of the BCMEA’s member companies. This selective process did not meet the legal requirements for a legitimate strike vote, which must include participation from all affected employees. The CIRB’s ruling underscores the importance of adhering to legal frameworks in labor disputes to ensure fair and legitimate processes.

As a result, the CIRB has invalidated the strike vote and directed the union to retract its strike notice. This action emphasizes the need for unions to follow proper legal protocols, involving all relevant employees in future strike votes. By doing so, the CIRB aims to maintain stability and legality in industrial relations, fostering a fair and equitable environment for both workers and employers. This directive serves as a reminder of the critical importance of compliance with legal standards to prevent potential disruptions and conflicts in labor negotiations.

Is it okay to choose ‘no tip’ at the counter? Some customers think it is.

A recent survey reveals that a significant majority of Canadian respondents are unhappy with auto-tipping prompts on payment machines, shedding light on the growing dissatisfaction among consumers with these automated systems. The survey results show that 77% of Canadians surveyed dislike these prompts, indicating a widespread preference for having more control over tipping decisions. This strong consensus against auto-tipping highlights a potential area for improvement for businesses aiming to enhance customer satisfaction, as current practices appear to be misaligned with consumer preferences.

Consumers have expressed that auto-tipping prompts pressure them into tipping more than they intended and take away the personal choice and consideration that tipping should involve. Many view tipping as a personal gesture of appreciation, and automated prompts can feel intrusive and coercive. This sentiment suggests that businesses might need to reconsider their approach by offering more flexible tipping options or removing automatic prompts altogether. Addressing these concerns could help create a more pleasant and respectful payment experience, fostering better relationships with customers and honoring the traditional spirit of tipping as a voluntary act of gratitude.

Canada’s lack of active forest maintenance is contributing to more wildfires.

One thing we know for sure is that the frequency and severity of wildfires will only increase, posing significant risks to both human life and property. The escalating nature of these wildfires requires urgent attention and a head-on approach. Traditional methods of dealing with wildfires are no longer sufficient, and without significant changes, the situation will continue to worsen. Canadians and their governments must rethink how they address and mitigate these risks, involving a comprehensive review of current strategies and the development of new, more effective approaches.

This rethink necessitates a paradigm shift toward proactive forest management, which includes anticipating potential wildfire risks and implementing measures to prevent them. Practical solutions such as controlled burns, better land-use planning, and increased funding for forest management programs should be prioritized. By focusing on prevention and early intervention, we can create a more resilient landscape capable of withstanding increasing wildfire activity. This effort will require collaboration between government, communities, and experts to ensure that the necessary resources and knowledge are applied effectively.

Canada’s services PMI dropped to its lowest in three months in June.

Canada’s services economy moved back into contraction in June, reversing previous months of growth and signaling challenges within the sector. This downturn indicates a decline in overall economic activity, raising concerns about the health and stability of this vital part of the economy. A significant factor was the decline in new business, suggesting weakening demand for services, which can adversely affect employment, investment, and overall economic confidence. Businesses within the sector are facing reduced customer activity and slower revenue growth.

Even as inflation pressures cooled, the sector struggled to maintain momentum. Typically, lower inflation reduces cost pressures for businesses, but this relief was insufficient to counteract the negative impact of declining new business. S&P Global Canada services PMI data, released on Thursday, highlighted these challenges, serving as a critical indicator of the sector’s health. Despite some positive economic signals, policymakers and business leaders must address these trends to support a recovery in the services sector and ensure long-term stability.

Get in touch

Contact us if you have any questions or want to discuss the next steps for your business.

Recent Posts

Customer Relationship Management: Best Practices for Growing Companies

Customer Relationship Management: Best Practices for Growing Companies

Customer Relationship Management (CRM) is an essential component for growing companies aiming to bui

Read More
Professional Bookkeeping Services in Toronto: Comprehensive

Professional Bookkeeping Services in Toronto: Comprehensive

Professional bookkeeping services are crucial for businesses of all sizes to maintain accurate finan

Read More
Supply Chain Management Challenges for Expanding Businesses

Supply Chain Management Challenges for Expanding Businesses

Expanding businesses in Canada face numerous supply chain management challenges, compounded by the n

Read More

Working with the world's best tools to streamline your business

Subscribe to our newsletter

Enter your details to receive regular news and updates from the team

This field is for validation purposes and should be left unchanged.