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High inflation likely to stick around, consumers and businesses tell Bank of Canada in 2 surveys – CBC News

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Canadian businesses and consumers think the current era of high inflation will persist for longer than they’d previously hoped, according to two surveys from the Bank of Canada released Monday.

The two reports — known as the Business Outlook Survey and the Canadian Survey of Consumer Expectations — are the result of the central bank’s quarterly polling of Canadian businesses and consumers for their outlook on what’s happening on the ground in Canada’s economy.

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While the findings differed in a few ways, the dominant theme of both was inflation and the impact it is having on buying and selling, hiring and firing.

The main takeaway from the business survey was that most businesses are seeing higher sales than they were seeing earlier in the pandemic, as economic activity is returning to some sort of normal. But demand continues to outstrip supply across almost all types of businesses, which is both a factor of and a contributor to the high inflation currently plaguing the economy.

Nearly two-thirds of businesses told the central bank they are seeing labour shortages. Nearly half — 43 per cent — say they are experiencing bottlenecks in their supply chains, and they’re taking longer to resolve than previously anticipated.

Businesses expect Canada’s inflation rate to still be more than five per cent a year from now, and still more than four per cent two years out. But five years from now, the survey suggests they expect the inflation rate to come back to within the range the central bank targets, between one and three per cent.

It was a similar story on the consumer side. Long-term inflation expectations increased from 3.2 per cent to four per cent, while short-term expectations increased to 6.8 per cent, up from 5.1 per cent last quarter.

“Consumers clearly took notice of the recent [consumer price index] releases and the high prices for food and gasoline,” CIBC economists Andrew Grantham and Karyne Charbonneau said of the data. “Uncertainty around the evolution of inflation has increased.”

Wages set to increase

On the employment front, on average, business owners expect their labour costs to increase by 5.8 per cent this year. 

That’s significantly higher than the two per cent wage increases that consumers told the bank they were expecting.

“Workers do not anticipate their wage gains will keep up with inflation,” the bank said, adding that those in the private sector think their wages will increase this year by more than those in the public sector will.

Economist Leslie Preston with TD Bank said the survey shows just how big a concern inflation is in the minds of ordinary consumers.

“This survey suggests consumer spending in real terms is likely to slow in the coming months as wages can’t keep up with inflation, and households are already being forced to economize,” she said, adding that expectations of high inflation to come “is a source of concern for low-income consumers in particular, who are adjusting to high inflation by cutting spending, postponing major purchases, looking for discounts more often, and buying more affordable items.”

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Poll suggests most Canadians view Pope’s apology as step toward reconciliation

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Pope Francis on a six-day penitential pilgrimage to Canada

A poll suggests more than half of Canadians viewed the recent visit by Pope Francis and his apology for abuses at residential schools as a step toward reconciliation.

The Angus Reid Institute released the findings from its latest online poll in which nearly 60 percent of participants said they saw the Pope’s apology as a meaningful step toward reconciliation, while 32 percent said it did nothing to move reconciliation forward.

Respondents who self-identified as Indigenous were less likely to say the apology contributed to reconciliation, at 54 percent, and 36 percent said the gesture made no difference.

Francis spent six days last month visiting Alberta, Quebec and Nunavut for what he called a “penitential pilgrimage” and he apologized for the evils some members of the Roman Catholic Church inflicted on Indigenous Peoples during the residential school era.

The research institute said two-thirds of respondents whofollowed the Pope’s trip and his speeches viewed his apology as sincere.

Half the participants said the federal government, Christian churches and society hold equal responsibility for creating the residential school system and allowing it to persist.

An estimated 150,000 Indigenous children were forced to attend residential schools in Canada, where neglect and physical and sexual abuse were rampant. More than 60 per cent of the schools were run by the Catholic Church.

Francis met with Indigenous groups and residential school survivors during his stops in Canada, where he repeated his apology. Following his visit, he called what happened in residential schools a form of genocide.

The poll suggests respondents’ prior views on the relationship between Canada and Indigenous Peoples was a significant driver of whether they viewed the Pope’s trip and apology as something that represented a step toward reconciliation.

“If you’re of the view that it’s worsening, then you’re also more likely to think that the papal visit made no difference towards reconciliation,” said Shachi Kurl, president of the institute.

“If you’re somebody who thinks that that is a relationship that is improving, people express more optimism or a sense that yes, the trip did represent a meaningful step toward reconciliation.”

More than half of respondents said there needs to be more investigations into residential schools before the country can move forward. There was a generational and gender divide on the issue, as younger respondents and women said more work is needed.

The institute polled 2,279 Canadians, with 117 of those self-identifying as Indigenous from Aug. 8-10. The polling industry’s professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.

This report by The Canadian Press was first published Aug. 11, 2022.

 

Brittany Hobson, The Canadian Press

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Alberta government members should resign over prize for sexist, racist essay: NDP

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EDMONTON — Alberta’s Opposition is calling for the two top legislature leaders on women’s issues to quit for giving a prize for an essay that urges women to forgo careers and focus on baby-making so the province doesn’t have to bring in more foreigners.

NDP critic Rakhi Pancholi said Jackie Armstrong-Homeniuk, the United Conservative Party government’s associate minister for the Status of Women, and Jackie Lovely, the department’s parliamentary secretary, have lost all credibility to advance the cause of women and must resign.

“I don’t know how (they) can continue in these roles,” Pancholi said at a news conference in Fort Saskatchewan, Alta., on Thursday.

“I don’t know what work they were doing. They won’t even stand up before cameras and take questions.

“They have no credibility … they are undermining — actively undermining — women’s interests in this province.”

Armstrong-Homeniuk is the member of the legislature for Fort Saskatchewan-Vegreville.

Public pressure had been growing on Armstrong-Homeniuk’s office to divulge the names of the judges. Some United Conservative female legislature members had begun issuing statements stating they were not on the panel.

Late Wednesday night, Lovely, the member for Camrose, issued a statement saying, “I can confirm that I was the only other MLA on the essay judging panel.”

“I regret that this essay was chosen, and I apologize for my role in that,” her statement said. “As a single mother who has pursued a wide variety of traditionally male-dominated careers, I deeply understand the strength and ability of women.

“Also, as a former ESL (English as a second language) teacher who has hosted 56 international students, I value and appreciate the role of newcomers in our province and will continue working to remove barriers to equity and prosperity for all.”

The essays were pulled from the legislative assembly website shortly after criticism of the contest emerged on social media Monday night.

Armstrong-Homeniuk has since declined interviews, but instead issued two statements saying she doesn’t support the sentiments in the essay.

“It’s clear that the process failed, and I apologize for my role in that,” Armstrong-Homeniuk wrote Tuesday. “The selection of this particular essay and awarding it with third prize was a failure on my part as the head of the judging panel.”

Pancholi said that prompts the question — if the two judges say the essay should not have won, why did they pick it?

“We still do not have a clear explanation as to what and why this happened,” Pancholi said.

The essay was part of the legislative contest, titled “Her Vision Inspires,” which asked young women to explore ways to make Alberta a better place.

The top two essays suggest ways to get more women, and the public in general, involved in public life.

The third-place winner – identified only as S. Silver — won a $200 prize to be spent at the legislature gift shop.

Silver’s essay posits that the governing mission of humanity is to reproduce itself, but that Alberta has lost its way to instead pursue “selfish and hedonistic goals.”

The solution, she argues, is to acknowledge that “women are not exactly equal to men.”

Society, she writes, should celebrate and embrace the birthing role of women and stop pushing them to put off prime procreation years while they “break into careers that men traditionally dominate.”

She says the idea that Alberta can put off procreation and instead “import foreigners to replace ourselves … is a sickly mentality that amounts to a drive for cultural suicide.”

Pancholi and other critics have likened that reference to 1930s Nazi Germany, when women were urged to be baby vessels to propagate the Aryan race.

Three female candidates in the United Conservative race to replace Premier Jason Kenney as party leader and premier have also taken to Twitter to criticize the award.

This report by The Canadian Press was first published Aug. 11, 2022.

 

Dean Bennett, The Canadian Press

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Customers cry foul as Air Canada, WestJet continue to deny certain compensation claims despite new directive – CBC News

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A recent Canadian Transportation Agency (CTA) decision was supposed to help clear the air on flight compensation. 

When issuing a decision in a WestJet case on July 8, the transport regulator clarified that, in general, airlines can’t deny passengers compensation for flight disruptions caused by crew shortages. 

However, the clarification has only ignited fury for some passengers, including Frank Michel, who have since been denied compensation — due to crew shortages.

“It’s insulting,” said Michel, of Marquis, Sask.

He and his wife, Leigh, flew with Air Canada in June. The couple’s flight from Regina to Victoria was delayed by more than five hours. Then, the second leg of their return flight was cancelled, so the couple wound up spending the night at the Vancouver airport. 

“I’ve got arthritis, I’m aching and sore; I’m sleeping on a frigging concrete floor,” said Michel, who is 67.

After Air Canada cancelled his flight, Michel, 67, wound up spending the night on the floor of the Vancouver airport. (Frank Michel)

The couple applied for compensation, which would total $2,800 if they qualified. But in late July, Air Canada rejected the Michels’ claim. In two separate emails seen by CBC News, the airline said each flight disruption was “due to crew constraints” linked to COVID-19 and was “safety-related.” 

Under federal rules, airlines only have to pay compensation — up to $1,000 per passenger — if the flight disruption is within the airline’s control and not safety-related. 

Michel argues Air Canada isn’t playing by the rules.

“CTA has already made it clear that crew constraints is not an acceptable excuse,” he said. “It’s not a safety issue. It’s a management issue. You have to manage your resources.”

‘This decision doesn’t seem to mean anything’

The CTA issued its clarification last month based on a case where WestJet denied a customer compensation, claiming his flight had been cancelled for safety reasons due to a crew shortage. 

In its ruling, the CTA emphasized that staffing issues typically warrant compensation because, in general, they are an airline’s responsibility and can’t be categorized as a safety matter. Thus, the agency ordered WestJet to pay the passenger $1,000. 

“Training and staffing are within airline control and therefore crew shortages are within airline control, unless there’s compelling evidence” to the contrary, said CTA spokesperson Tom Oommen in an interview. “It’s a high threshold.”

WATCH | Air passengers say they’ve been unfairly denied compensation:

Travellers say they’re being unfairly denied compensation for Air Canada flight cancellations

3 days ago

Duration 2:01

Some travellers say they’re being denied compensation for cancelled Air Canada flights as the airline claims the flight disruptions were ‘due to crew constraints’ and beyond their control.

Oommen said the CTA’s decision will help ensure airlines follow the rules. But some passengers remain skeptical. 

“This decision doesn’t seem to mean anything,” said Jennifer Peach, of Langley, B.C., who, along with her husband, had booked a trip with WestJet to attend a wedding last month in St. John’s.

They almost didn’t make it. WestJet cancelled their connecting flight and Peach said the airline then offered to rebook them on a flight one day later — which would mean they’d miss the wedding. 

Fortunately, Peach found a Porter Airlines flight that would get the couple to St. John’s about five hours later than originally scheduled, but still in time for the wedding. WestJet told her to book the flight and file for compensation, she said.

Peach asked WestJet for the $773 total she paid for the Porter flight, plus compensation for the couple’s delayed trip. On Aug. 2, WestJet turned down both requests. 

In an email seen by CBC News, the airline stated that the flight cancellation “was due to crew member availability and was required for safety purposes.” 

That didn’t sit well with Peach, especially in light of the recent CTA decision.

“I don’t know what’s going on here,” she said. “I would assume that if there’s a decision like this made by the Canadian Transportation Agency that it would be the sort of the benchmark for all of these [claims].”

Enforcement options ‘could include fines’: CTA

WestJet and Air Canada each declined to comment on individual cases, but both said they abide by federal air passenger regulations. WestJet said that safety is its top priority. Air Canada said airlines shouldn’t be penalized for cancelling flights for safety reasons. 

Air passenger rights expert Ian Jack said the CTA needs to threaten airlines with harsh penalties, such as public shaming and stiff fines, if they fail to comply with compensation regulations. 

“The major concern is that the regulator is not exactly striking fear into the hearts of the carriers to make them follow the rules,” said Jack, a spokesperson with the Canadian Automobile Association (CAA), a non-profit travel agency. 

“They need to know that they might get caught, embarrassed and called to task by the regulator.” 

This graphic shows the compensation air travellers could be entitled to depending on the length of their flight delay. (CBC)

CTA’s Oommen suggested that tough penalties may be coming for non-compliant airlines. “We are indeed looking at all the enforcement options … which could include fines.”

Meanwhile, both Michel and Peach have filed complaints with the CTA. However, they may be in for a long wait. The agency is currently dealing with a backlog of more than 15,000 complaints, Oommen said.

He said the CTA recently made changes to streamline the complaints process and is trying to hire more staff.

But Jack said he’s concerned the backlog may encourage airlines to flout the rules, because any repercussions will be far down the road. 

“They don’t have to pay out today, and who knows, maybe in 2025, they might have to pay money.”

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