Connect with us

Business

Edward Rogers voted out as chairman of board at Rogers amid corporate family fued – Financial Post

Published

 on


John A. MacDonald, a board member since 2012, ‘has assumed the role of Chairman of the Board of Directors,’ according to the statement

Article content

Directors of Rogers Communications Inc. have voted to oust Edward Rogers, son of the company’s founder, as chair of the board after a fractious few weeks that began with his attempt to replace chief executive Joe Natale in a major management shakeup, according to sources close to the board.

Advertisement

Article content

In a brief statement released late Thursday, Rogers Communications confirmed that Edward Rogers “has moved from the role of Chairman effective today,” though he will remain on the board as a director.

John A. MacDonald, a board member since 2012, who also served as lead director and chair of the corporate governance committee “has assumed the role of Chairman of the Board of Directors,” according to the statement.

“This has been a challenging time for the Corporation and I want to reaffirm on behalf of the majority of the Board our support for and total confidence in the management team and CEO of Rogers Communications,” MacDonald said.

In an initial attempt to quell the corporate disruption, which has divided the Rogers family, the board had created an executive oversight committee to “establish clear protocols” to manage interactions between senior leadership and the board chair.

Advertisement

Article content

The headquarters of Rogers Communications Inc in Toronto on Nov. 6, 2016.
The headquarters of Rogers Communications Inc in Toronto on Nov. 6, 2016. Photo by Chris Helgren/Reuters files

The new three-member committee — whose members included Rogers’ sister, deputy-chair Melinda Rogers-Hixon, MacDonald, a long-time industry leader who held roles at BCE Inc. and Allstream Business Inc., and another independent director John Clappison  — was made public in management discussion accompanying Rogers’ third-quarter financial report Thursday, but had been in the works for weeks and came amid reports that Edward is now seeking to replace at least some of the company’s independent directors.

Sources familiar with the situation say Edward has obtained a list of the company’s shareholders, which would be needed to pursue board changes. Independent directors had objected to handing it over, due to uncertainty about whether Edward was acting with support of the voting trust through which his company controls Rogers Communications, these sources say. The directors also expressed concern that the ongoing disruption was hurting the company and could be detrimental to its planned $26 billion (including debt) purchase of rival Shaw Communications Inc., the sources said.

Advertisement

Article content

The dispute has divided the Rogers family, with Edward’s mother Loretta Rogers and sisters Martha Rogers and Rogers-Hixon opposing his plan to oust Natale.

Sources familiar with the situation who were not authorized to speak publicly about it say the advisory committee to the Rogers Control Trust, the entity through which the family controls the company, has held discussions over whether conditions should be placed on how Edward, who is chair of the trust, can vote the class A shares it holds.

It was not immediately clear how his departure as chair of Rogers will affect those discussions, or whether it would halt any efforts to reshape the board.

Bloomberg News reported Thursday that Edward had produced a list of preferred candidates to replace independent directors at the company. According to the report, the list contained five names including former CTV media chief executive Ivan Fecan and Jan Innes, a long-time communications and government-relations adviser at Rogers. She remains a director of the Rogers Group of Funds, which supports film and television funding, according to her LinkedIn page.

Advertisement

Article content

Rogers Communications CEO Joe Natale speaks to shareholders during the Rogers annual general meeting in Toronto on April 20, 2018.
Rogers Communications CEO Joe Natale speaks to shareholders during the Rogers annual general meeting in Toronto on April 20, 2018. Photo by Nathan Denette/ The Canadian Press files

Natale, who has said little since Edward attempted to replace him with chief financial officer Tony Staffieri, responded to questions about the dispute on a conference call with analysts following Thursday morning’s release of the company’s financials.

“I’ve got strong, unequivocal support from the board to direct the strategy of the company,” he said, adding that he will “keep driving the operational initiatives … and continue to drive the improvements and momentum that you’re seeing.”

He told analysts the corporate drama has not changed his views on the company’s proposed transformational takeover of rival Shaw Communications.

“I’m feeling as comfortable as I have been in the past with the Shaw transaction, both in terms of our ability to get it approved and the synergies that stand behind it,” Natale said.

Advertisement

Article content

I’ve got strong, unequivocal support from the board to direct the strategy of the company

Joe Natale

Rogers’ revenues grew marginally in the third quarter from a year ago. The Toronto-based telecom reported sales of $3.67 billion for the three months ended Sept. 30, led by growth in the wireless business and lower churn rates. Rogers added a net 175,000 postpaid wireless subscribers, all in the cellphone category, which helped boost wireless service revenues by three per cent.

Meanwhile, the cable division’s revenues grew three per cent as more internet customers moved over to higher speed and usage tiers.

The company has also experienced its lowest churn rate on record, it said in its release. David Fuller, president of Rogers Wireless attributed it to improvements at the base management level and within the retail spaces and call centres. As well, the shift of more customers onto unlimited data plans has caused them to stay. “The final one I’d point to is the material and significant network investments that we have made, improving the quality and capability and coverage of our 5G network,” Fuller told analysts.

Advertisement

Article content

  1. Rogers' chief executive Joe Natale.

    Rogers CEO Joe Natale says he has ‘unequivocal support from the board’

  2. Edward Rogers, the son of company founder Ted Rogers, is seeking to replace current directors with five of his own choices, according to people familiar with the matter.

    Rogers chairman seeks to replace five members of the board, sources say

  3. Boardroom turmoil comes as Rogers Communications is trying to finance and win regulatory approval for a landmark deal, the US$16 billion takeover of Shaw Communications Inc., western Canada's dominant cable provider. 

    Rogers creates committee to set rules for how chairman can interact with executives

There is still plenty of turf for Rogers to regain despite blended average revenues per user increasing four per cent sequentially. The metric will tick up as the economy reopens and people can begin travelling again, which would boast roaming charges for the telecom, Fuller said. The company is “in the range of 50 per cent” of 2019 roaming levels, he added, despite year-on-year growth and quarter-on-quarter growth.

Though it’s dealing with some supply chain issues for its cable business and from mobile phone producers such as Samsung Electronics Co. Ltd. and Apply Inc., which are facing chip shortages, Natale said the company is well suited to weather global backlogs for its 5G network expansion. “We’ve been stockpiling and building up inventory to make sure we don’t have a challenge,” he said, adding that in its 4G rollout, Rogers had installed 5G radios on its towers.

Advertisement

Article content

“While messy boardroom and family discussions continue to play out in the media, the Q3 results from Rogers show meaningful signs of improvement on many key metrics,” TD Securities analyst Vince Valentini wrote in a note to clients.

Net income dropped four per cent in the quarter to $490 million on lower adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), which fell two per cent to $1.6 billion largely due to a drop in the media line of the business. Diluted earnings per share dropped seven per cent to $0.94.

Rogers shares closed down 1.75 per cent to end the trading day at $60.19.

• Email: bshecter@nationalpost.com | Twitter:

• Email: bbharti@postmedia.com | Twitter:

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Adblock test (Why?)



Source link

Continue Reading

Business

Ontario man who accidentally transferred $19000 to stranger's account left for weeks without solution – CTV Toronto

Published

 on


An Ontario man says he has been fighting to get back $19,000 for months after making a “simple mistake” while trying to transfer money between two of his bank accounts.

Milton, Ont. man Roberto Guardado said he had just purchased a new home and in September was trying to transfer money from his Bank of Montreal (BMO) account to his CIBC account so that he could make the down payment.

He said he called BMO to arrange the wire transfer, figuring it would be the easiest way to move the funds to CIBC.

Guardado said he has two bank accounts with CIBC, one for his personal savings and one for business. He was trying to transfer the money into the savings account.

He said while making the transfer, he correctly read out his CIBC savings account number, but mistakenly gave the transit number of his CIBC business account.

The five-digit transit number helps the bank identify which branch the money is being sent to.

The mistake resulted in Guardado’s money being sent to a stranger’s CIBC account, he said.

CIBC

“I noticed the money went out but it didn’t go into my CIBC account,” Guardado told CTV News Toronto. “So I went home that day and I started looking on my computer and then I realized I gave the wrong transit number.”

He said he immediately called BMO, who told him they would launch an investigation. 

Despite calling the bank every few days for an update, he said it took five weeks before he got any answers.

Guardado said he was told that his $19,000 was deposited into someone else’s account and the person had withdrawn it. 

He said both BMO and CIBC told him nothing further could be done to retrieve his money.

“I couldn’t believe I made the mistake,” Guardado said. 

Guardado said he called the police, but was also told that because he initiated the transfer there was nothing to investigate.

BMO

“The police told me that because it’s not considered fraud they can’t do anything about it,” he said. 

‘JUST A SIMPLE MISTAKE’

Guardado said that while he fully admits the error was his fault, he doesn’t understand why the bank couldn’t help him quickly reverse the transfer.

“It was just a simple mistake and my money ended in someone else’s account,” Guardado said.

Because of the lost money, Guardado said he had no choice but to back out of the sale of his new home. 

Shortly after CTV News Toronto contacted CIBC and BMO about Guardado’s situation, he said he received a call from the banks telling him his $19,000 would be returned to his account. 

CIBC spokesperson Trish Tervit confirmed on Saturday they had resolved the issue with Guardado. 

“It’s important that when transferring funds between financial institutions that the sender ensures the recipient account number is correct as misdirected funds may be difficult to recover,” Tervit added. 

Guardado said CIBC told him this is a “unique situation” that is being resolved on a one-time basis. 

Meanwhile, a spokesperson from BMO said they had a “good conversation” with Guardado, but couldn’t comment further for privacy reasons. 

While this stressful two-month chapter is now over for Guardado, he said banks “have to come up with a better system” for when people make mistakes.

“It was a stupid mistake on my part, but the process to fix it has to be easier,” he said. “I was so stressed that I lost weight and I couldn’t sleep. It was bothering me so much.”

Adblock test (Why?)



Source link

Continue Reading

Business

Cargill beef-processing plant in High River, Alta. narrowly avoids strike action – CBC.ca

Published

 on


Employees at Cargill’s beef-processing plant in High River, Alta., have voted in favour of a new labour contract, narrowly avoiding strike action and a possible lockout.

United Food and Commercial Workers Local 401 (UFCW), which represents workers at the plant, said Saturday that workers chose to accept the new contract offer, with 71 per cent voting in favour.

In a statement, UFCW said it was not an easy decision for staff at the plant, and called the contract vote a “bittersweet victory.” 

Workers had raised safety concerns after a COVID-19 outbreak at the plant in 2020 affected more than 900 people. The outbreak, which forced Cargill to temporarily close the plant — one of Canada’s largest — is linked to three deaths.

The union says the new contract includes procedures to ensure worker health and safety, benefits, and new rights for sick employees. 

After the two sides held talks on Tuesday, UFCW’s bargaining committee agreed to recommend the new offer to its members, Cargill spokesperson Daniel Sullivan said. Workers voted between Thursday and Saturday.

The union released parts of the proposed offer to CBC earlier in the week. The contract included $4,200 in retroactive pay for many Cargill union members; signing, holiday and COVID-19 bonuses; and a $5 wage increase.

Workers prepare beef to be packaged at the Cargill facility near High River, Alta. The plant is the site of what became the largest COVID-19 outbreak in North America last year. (Name withheld)

UFCW had said the plant’s roughly 2,000 workers would strike Monday unless an agreement was reached.

The union also they brought in tents, floodlights and heaters for the possible strike, while nearby fields were levelled to provide parking.

Cargill had also planned to lock out all UFCW union staff as of 12:01 a.m. Monday, according to a statement from the company’s vice-president of labour relations, Tanya Teeter, which was obtained and made public by the union.

“We are pleased to have reached an agreement that is comprehensive, fair, and reflective of their commitment to excellence at Cargill and the critical role they play in feeding families across Canada,” Jarrod Gillig, the company’s president of business operations and supply chain for North America protein, wrote in a statement to CBC Saturday.  

“As an organization that leads with our value to put people first, we truly believe this ratification is in the best interests of our employees and we are eager to move forward to build a stronger future – together.”

Reforms still needed: Union

“We also look forward to the citizens of Alberta joining with us in calling for reforms and restructuring in the meatpacking industry,” UFCW President Thomas Hesse wrote in a statement Saturday. 

“Workers have been ripped off. Ranchers have been ripped off. And we’ve all been ripped off at the supermarket counter. Government failed to protect these workers, as well as failing to protect Alberta ranchers and consumers. Change must occur.” 

The Cargill plant processes up to 4,500 head of cattle per day, accounting for about one-third of Canada’s beef.

Adblock test (Why?)



Source link

Continue Reading

Business

Job growth in Canada exceeded expectations in November – Canada Immigration News

Published

 on


Published on December 4th, 2021 at 08:00am EST

Aa
Accessibility

Font Style


<!–

–>

With employment soaring beyond predictions and unemployment dropping to near pre-pandemic levels, new labour force data suggest that Canada is on its way to a full economic recovery.

This past November, Canadian employers added 154,000 jobs to the economy. Last month’s growth exceeded analysts’ predictions of 38,000, which was closer to October levels. The gains pushed employment a full percentage point higher than pre-pandemic levels. Also, unemployment dropped to 6%, which is within 0.3 percentage points of what it was in February 2020.

Data from Statistics Canada’s Labour Force Survey reflect labour market conditions during the week of November 7 to 13. Proof-of-vaccination policies and other public health measures were largely similar to those in October.

Discover if You’re Eligible for Canadian Immigration

Labour shortages persist despite employment gains

Hiring in November was driven by the private sector both in full-time and part-time positions. Even so, Canada is still experiencing labour shortages across sectors like hospitality, retail, and health care. In September, there were roughly one million job vacancies across the country.

Most government COVID-19 financial assistance measures ended in late October. Some analysts say it may have pushed people to accept job offers. Among these measures was the Canadian Recovery Benefit for individuals, which had been accused of discouraging people from returning to work. The Conference Board of Canada says the lack of wage growth was an even greater disincentive, especially in low-wage service industries.

“November’s job growth suggests the withdrawal of the [Canadian Recovery Benefit] may have pushed some workers back into employment though alone this will not be sufficient to address the significant labour shortages affecting several industries,” writes economist Liam Daly.

RBC economist Nathan Janzen wrote that despite the surge in employment there were still “exceptionally low” levels of workers in the service sectors.

“Employment in accommodation & food services edged up 5k from October but is still more than 200k below pre-shock levels,” Janzen wrote. “Travel and hospitality spending has been rebounding, but with the unemployment rate now substantially lower, it is increasingly clear that there are not enough remaining unemployed workers out there to re-fill all of those jobs any time soon.”

Discover if You’re Eligible for Canadian Immigration

© CIC News All Rights Reserved. Visit CanadaVisa.com to discover your Canadian immigration options.

Adblock test (Why?)



Source link

Continue Reading

Trending