Friday, November 18, 2022

"Alberta's labour market braces for wage-hike fallout"/ "U.S. restaurants caught in food fight amid demand for lower-skilled staff"


Dec. 26, 2016 "Alberta's labour market braces for wage-hike fallout": Today I found this article by Rachelle Younglai in the Globe and Mail:


When Alberta decided to raise the minimum wage to $15 an hour, the owner of a Calgary wine bar knew she had to change her business model.

Like many in the restaurant industry, Phoebe Fung had already faced high staff turnaround. Staff would get trained only to leave after less than a year.

With the province’s minimum wage rising almost 50 per cent over a four-year period, Ms. Fung decided to look for workers who would make a longer commitment – people who wanted a career in the restaurant industry.

She offered more staff a salary instead of an hourly wage. She also provided additional health benefits – including benefits for their pets – for salaried and for full-time hourly employees.

“I wanted to reduce my turnover,” said Ms. Fung, the owner of Vin Room wine bar and restaurant. “I am looking more long term.”

Ms. Fung is one of thousands of small-business owners grappling with higher labour costs. The hourly minimum wage in Alberta rose to $12.20 from $11.20 in October, the second increase in two years. By 2018, the minimum wage will reach $15 an hour, the highest in the country – forcing some proprietors to change the way they operate as a result.

It comes as the province struggles to recover from the two-year collapse in oil prices and slowdown in the economy, and as some employers say they are also bracing for the new outlays that will accompany a provincewide carbon levy to be enacted Jan. 1.

The province was once responsible for driving wage gains across the country. But now it is a drag on Canada’s labour market. Alberta’s unemployment rate hit 9 per cent in November, the highest level since 1994.

The minimum-wage hike will likely affect about a fifth of Alberta’s labour market and most of the hospitality sector. Two-thirds of the accommodation and foodservices industry currently earn less than $15 an hour. 

The minimum wage has increased costs for Ms. Fung’s business, as well as those for other owners such as Nathan Satanove, of the Pasta Pantry & Trattoria in Sherwood Park, just outside of Edmonton.

“Wages are up. And with that, everything else goes up,” said Mr. Satanove, whose 33 person operation includes a restaurant, catering and take-out business.

“It’s not just the wages in our store.
“It’s the truck drivers that bring us our produce. It’s the workers in manufacturing that process other products that come into the store.”

He said he already pays his entry-level workers a few dollars above minimum wage but felt compelled to raise everyone’s rates in October, when the new hike took effect.
“To retain quality talent, you have to compensate appropriately,” Mr. Satanove said.

At the Kensington Wine Bar in Calgary, owner Cam Dobranski said his payroll has shot up by $1,400 bi-weekly since the minimum wage increased.
Mr. Dobranski has chosen not to replace departing employees and is working more than 70 hours a week to compensate for the loss of staff.

“If a dishwasher quits, I don’t hire a dishwasher. I wash the dishes.”

Amber Ruddy of the Canadian Federation of Independent Business in Alberta said the climate is already tough, but the provincial government’s decision to add new taxes and higher costs such as the minimum-wage increase makes it even more difficult for business owners.

Ms. Ruddy added that her group has been conducting a monthly survey of hiring intentions for 15 years, and this November the Alberta numbers hit a “new rock-bottom low,” with 45 per cent of employers reporting they plan to lay off staff within three months.

Still, data continue to show no direct correlation between increasing the minimum wage and job losses in the industry. 

Since 1999, the minimum wage in Alberta has increased 11 times and over the same period there has been job creation and job losses in the sector.

In the accommodation and food-services industry, the average number of hours worked a week increased to 28.8 in November from 28.5 a year ago, according to data from Statistics Canada.

And there are certainly supporters of the hike. Pizza-chain worker Wade Dougall, 31, said the minimum-wage boost has helped him afford his rent and pay his utility bills in Chestermere, Alta.

“It didn’t have a big impact like I expected. But it did help a little bit,” Mr. Dougall said. “I’m trying to survive here.”

Before Alberta started increasing the minimum wage, Ms. Fung said about 10 per cent of her staff received a salary. Today, 20 per cent of her staff earns a salary and the rest are paid by the hour.

“I am attracting people who want to be in the industry,” said Ms. Fung, who owns a wine store and three restaurants, one of which was recently opened in the Calgary airport.

“Time will tell whether it was a smart move or not, or whether I have layered on more fixed costs to my business,” she said.


With a report from Kelly Cryderman in Calgary



Jan. 14, 2017 "U.S. restaurants caught in food fight amid demand for lower-skilled staff": Today I found this article by Leslie Patton in the Edmonton Journal.  It's positive:

CHICAGO Lisa Aragon just couldn’t get the headhunter to take no for an answer. Five times in a month, she turned down enticements, including higher pay and four weeks of paid vacation.

Aragon doesn’t work in Silicon Valley or on Wall Street. Far from it. She is a manager at a Wendy’s in Albuquerque, New Mexico. In 20 years, Aragon had never been pursued as aggressively as she had by the recruiter from the Pilot Flying J chain of truck stops, a major franchisee of fast-food restaurants.

“I told him, ‘I’m happy where I’m at,”’ said Aragon, 41, who already looked forward to quarterly bonuses and a bump for her work as a trainer. “There’s no need for change right now.”

In today’s tight labour market, restaurants are embroiled in a full- on food fight over workers.
The rank-and-file is winning referral bonuses, free meals and days off, and the scarcity of candidates may be raising the minimum wage without help from lawmakers.

While good news for millions of lower-skilled workers who’ve felt left behind by the economic recovery, it may not be for companies and customers. 

Restaurants will either have to raise prices or accept falling margins. Some stores’ service is suffering.

The U.S. unemployment rate was 4.7 per cent in December, near a nine-year low. With its insatiable appetite for new workers, the fast food business serves as a leading indicator of a labour shortage. In September, annual turnover for restaurant workers jumped to 113 per cent, the highest since industry-tracker People Report began collecting data in 1995.

Andrew Puzder, president-elect Donald Trump’s nominee for U.S. Labor Secretary, will be acutely aware of the phenomenon. A foe of raising the minimum wage, he is chief executive officer of CKE Restaurants Inc., which owns the Hardee’s and Carl’s Jr. burger chains. Further intensifying demand for lower-skilled employees, Trump has promised to curb illegal immigration.

“It’s a hot job market,” said Michael Harms, executive director of operations at Dallas- based TDn2K, People Report’s parent. “Every employee, whether they’re 17 years old or 40 years old, has options.”

Aragon’s boss is already pulling out all the stops to keep employees. Over the last year, Eddie Rodriguez, who operates 177 Wendy’s in Florida, New Mexico and Texas, raised hourly pay by nearly a dollar, to an average US$9.05.

Rodriguez gave referral bonuses of up to US$250 to employees who found prospects.
He offered more flexible schedules and used his own headhunters to find staff for his corporate office in Pompano Beach, Fla. He also makes sure he doesn’t take anyone for granted.

“Today’s employee, they want to feel wanted,” Rodriquez said.

Customers, however, may feel less appreciated. Rodriguez can’t find enough employees for the lunchtime rush, which means it takes longer to get a junior bacon cheeseburger.

Diners are also being kept waiting at Chipotle Mexican Grill Inc., which is trying to hire about 600 “crew members” for its U.S. restaurants. To be able to pay more, the company, for the first time since 2014, is considering raising prices in some parts of the country.

Chipotle is already paying an average US$10 an hour. (For those inside the Federal Reserve looking out for evidence that the tightening labour market is sparking inflation, this could be exhibit A.)

Chief executive officer Steve Ells in a December conference call complained that the lack of well-trained workers has resulted in napkins left on tables, untidy drink stations and slower meals.

“We took our eye off the ball on the customer service side,” Ells told investors.

Restaurants aren’t just competing with the fast-food joint down the street. Wal-Mart Stores Inc. last year raised wages of more than a million employees to either at least US$10 an hour or by two per cent for those making more.

Casual restaurants such as Olive Garden-owner Darden Restaurants Inc. and quick-service haunts like Taco Bell are all struggling to hire.

“It’s as hard as it’s ever been to attract and retain great people,” said Greg Flynn, chairman and chief executive officer of Apple American Group, which runs Applebee’s, Taco Bell and Panera Bread Co. restaurants.

Terry Smith, who owns three McDonald’s, said he has been able to avoid the crunch and maintain his staff of 150 to 160 employees with small perks such as free meals and paid days off. He also visits each of his restaurants every day, making sure he knows workers by name.

“I rotate through the restaurants and they see me,” he said. “If you treat them right and have a vested interest in them, they’ll stick around.”

It’s a hot job market. ... Every employee, whether they’re 17 years old or 40 years old, has options.


Here's a more recent article:


Nov. 14, 2022 "Hourly wages needed to live in Ontario rise as inflation persists": Today I found this article on BNN Bloomberg:

In the report released Monday, the Ontario Living Wage Network said the living wage in Toronto is now $23.15 an hour, up almost five per cent from $22.08 a year earlier.

The report said the largest increase was in Sault Ste. Marie, where the living wage went up by 21.6 per cent since last year.

Minimum wage in Ontario is $15.50 an hour.

The organization's living wage calculation uses the basic costs of living, such as housing, food, clothing and transportation, as well as factors like government benefits, to determine how much a worker needs to make hourly in order to live in their region.

Hourly wages needed to live in Ontario rise as inflation persists - BNN Bloomberg


This week's theme is about minimum wage.  I know I was rereading and posting news articles from 2016-2017:


"Minimum- wage hike a boon to economy"/ "Group urges Ontario to phase in wage hike over 5 years"



"Higher minimum wage alone won't reduce poverty in Alberta"/ "Minimum wage hike could cost 25,000 jobs: study"






My week:


Nov. 10, 2022 "Meghan Trainor says relearning body positivity after giving birth was 'the hardest thing I ever had to do'": Today I found this article by Kerry Justich on Yahoo.  This is a positive article:  

 It Figures is Yahoo Life's body image series, delving into the journeys of influential and inspiring figures as they explore what body confidence, body neutrality and self-love mean to them.

Meghan Trainor was just 19 years old when she found mainstream success with her hit song, "All About That Bass." Now, as a 28-year-old wife and mother, the pop star says she's finally practicing the self-love that she preached about in the 2014 hit.

Trainor learned just how much words really mean from those experiences and made sure to be mindful with her own. As she met fans who felt their lives were changed by her songs, she connected to those sentiments.

"A lot of parents would come in the meet and greet lines and say, 'My kid you're about to meet behind me, he didn't want to go to school, he was depressed, didn't want to keep living and your song came out, and now he's so happy.' I would make sure to hug them extra tight and say, 'I'm so glad you're here,'" Trainor says. "I looked at them and was like, 'Oh, I know exactly what that feels like and I can't believe that my three minute song got you out of that.'"


Nov. 14, 2022 "Jeff Bezos says he plans to give away most of his wealth": Today I found this article on CBC.  I like that it's about donating to charity and saving the environment: 

Amazon.com Inc. founder Jeff Bezos will give away a majority of his $124-billion US wealth during his lifetime, the billionaire told CNN in an interview on Monday.

Without providing further details, Bezos said he and partner, journalist-turned-philanthropist Lauren Sanchez, were "building the capacity to be able to give away this money."

The billionaire has committed $10 billion to fight climate change and protect nature through the Bezos Earth Fund, where he is the executive chair. The initiative to combat climate change was announced in 2020.

The fund did not immediately respond to a Reuters request for comment.

While light on specifics, the pledge to give away most of his wealth would be similar in nature to those made by Microsoft co-founder Bill Gates and investor Warren Buffett.

Bezos award goes to Dolly

Bezos and Sanchez announced on Saturday that country music star and philanthropist Dolly Parton would receive $100 million through the Bezos Courage & Civility Award, an amount that she can then donate as she sees fit.

"I try to put my money where my heart is. I will do my best to do good things with this money," Parton said on Twitter while thanking Bezos for the honour.

Bezos, who stepped down as chief executive of Amazon in 2021, owns about 10 per cent of the ecommerce giant, along with the news organization Washington Post and the space tourism company Blue Origin.

He shares four children with former wife MacKenzie Scott, who since their split has given billions of her wealth to an assortment of nonprofits, legal aid organizations and schools.

Jeff Bezos says he plans to give away most of his wealth | CBC News

Nov. 15, 2022 "Brookfield to invest up to US$700M in U.S. recycling business": Today I found this article by Layan Odeh on BNN Bloomberg.  I like this article because it's about saving the environment: 

Brookfield Asset Management Inc. is making a foray into the recycling business, creating a new firm with an investment of as much as US$700 million through its sustainability fund. 

Publicly traded Brookfield Renewable Partners LP struck a deal with Closed Loop Partners LLC to establish a company called Circular Services. 

The new entity, formed from the merger of five of Closed Loop's portfolio companies, will handle paper, metal, glass, plastic, textiles and other materials in seven states, including New York and Texas. It will be the largest closely held recycling company in the U.S., according to a statement. 



Nov. 14, 2022 Home upgrades: This has been in a span of the last few weeks.

Picnic table: Last month, we finally got rid of the dilapidated picnic table in my backyard.  My mom paid a guy $20 to break the table in smaller pieces and remove it.  You can only sit on one side of the benches.  Basically, the table is sitting outdoors for years.  (We moved here over 30 yrs ago).  They get all the rain and snow, and the wood slowly disintegrates. 

2 mattresses: My parents bought one mattress for my mom and one for my brother from Ikea.  If a mattress gets really soft on one side, you can rotate and move the mattress around and sleep on the other side.  My mom has been doing that for years, and she thought she needed a new mattress.

Air fryer: My parents bought one from Wal- Mart.  My dad cooks fish, chicken, and steak outside on a outdoor stove with a wok, pan, or a the BBQ.  Now it's winter time, and you have to cook indoors.  We ate fish, chicken, short ribs (beef), and pork that was cooked in the air fryer.  The food tastes good.

My opinion: If you want to upgrade your home, you don't have to buy new furniture and appliances, and spend a lot of money.  You can declutter, organize, and clean your home.

Mom's cleaning: This year she was recycling and shredding old mail and paper.  She has been decluttering for the last few years.

Tracy's cleaning: This year I was rereading and recycling old news articles, some magazine articles, and school paper.  I digitized some news and magazine articles. 
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