Economy

How to ask for a raise amid a tight labour market and slowing economy

Published

1 year ago

June 24, 2023

At a time when unemployment is at near record lows, many sectors are struggling to find talent – and after a recent spike in inflation, too, it may seem like an opportune time to ask for a raise. But on the flip side, many firms have recently cut staff and the Canadian economy has begun to cool.

Such seemingly opposing market signals can make it difficult for Canadians to discern how much power they have at the bargaining table. While inflation adds pressure to negotiate for more, experts warn that asking for too much could backfire. That’s because in an uncertain economy employers may be more inclined to take a second or third-choice candidate who doesn’t demand as much money, while existing staff who negotiate for higher pay could be targeted in future layoffs if they fail to adequately prove their worth.

“This is where the confusion is happening, because on one hand people are confident and seeing robust opportunities out there, but at the same time companies are seeing [economic] pressures,” says Mike Shekhtman, regional director at staffing services firm Robert Half Canada.

According to a recent survey by Robert Half Canada, 83 per cent of workers are concerned about rising costs and interest rates, and 73 per cent are worried about the economy more broadly. At the same time only 42 per cent are concerned about their job security. As a result, 70 per cent are looking for a salary increase in 2023.

“As the job market becomes more balanced, being the same level of aggressive as you might have been nine months ago comes with a much higher risk,” says Andres Lares, the managing partner of Baltimore-based Shapiro Negotiations Institute, which provides negotiation training to Fortune 500 companies, professional athletes and sales teams. “You can still negotiate, but you need to be a little more prepared. You’ve got to be a little more strategic and you may want to be a bit less aggressive, unless you’ve got a lot of alternatives.”

Mr. Lares says as power shifts from the employees’ side, owing to the tight labour market, to a more balanced position between employer and employee, it becomes more important to come to salary negotiations well prepared. Specifically, he recommends engaging in a thorough examination of the job market and even seeking competitive offers.

“If you’d like to negotiate you might go out of your way to apply for a few other jobs that you might not want as much, but you think you’ll have a good chance of getting,” he says. “If nothing else, you can feel more confident having more alternatives, and that confidence will likely give you a better outcome.”

Those seeking higher compensation in this economy will need to justify their worth, says Mr. Lares, who advises not to wait until the subject of compensation arises to start communicating value.

“Negotiating doesn’t start when there’s an offer on the table, or the moment you talk about compensation directly; it’s part of the entire process,” he says. “You need to communicate why you’re worth more than the next candidate who wouldn’t require more money.”

Part of that preparation should also include a study of the employer’s performance and current financial standing, advises career coach Miriam Groom, the chief executive officer of Mindful Career. She says even in the worst economic climates, certain sectors, employers and roles remain in high demand, and it’s up to negotiators to determine just how strapped the other party really is.

“If they are increasing their prices and are not bringing that back to the employees then there’s an issue there,” she says. “If you’re at a large service firm – a lot of them are cutting costs, because they’re unable to close as much business – so if that’s happening, you know the kind of response you’ll get if you ask for a raise.”

Ms. Groom recommends expanding the scope of the negotiation beyond salary. Specifically, she says now is an opportune time to negotiate for perks that can save workers money today or help them earn more in the future at relatively little cost to their employers.

“You have to think about a lot of other things that are tied to [compensation], rather than the base number, because if someone requires you to get a car and go into work with the gas prices through the roof, you might make the same amount [working remotely at a lower salary level],” she said.

According to the Robert Half Canada survey, salary flexibility is the most desired non-salary perk, followed by job stability, positive work relationships, recognition and development opportunities. In fact, a previous Robert Half survey found that a quarter of Canadians would take a pay cut in order to work remotely full time, and another found that among Canadians who plan to switch jobs in 2023, career advancement was a primary motivator for 30 per cent.

“A lot of companies, they just can’t afford to raise salaries right now,” says Ms. Groom, “so consider the other things you can negotiate for.”

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Business

A timeline of events in the bread price-fixing scandal

Published

19 hours ago

September 19, 2024

Anne Joseph

Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

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Economy

S&P/TSX composite up more than 250 points, U.S. stock markets also higher

Published

19 hours ago

September 19, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

Published

1 day ago

September 18, 2024

Anne Joseph

VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

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