MONTREAL —
Quebec’s manufacturing and construction associations say there will be major damage to Quebec’s economy if the government imposes a strict COVID-19 lockdown similar to what occurred last spring.
Veronique Proulx, CEO of Manufacturiers et Exportateurs du Quebec, reacted Tuesday to multiple media reports saying Premier Francois Legault is set to close non-essential manufacturing businesses to help stop the spread of COVID-19.
“The worst scenario for us would be to go back to the same situation we had last spring,” Proulx said in an interview. She said Quebec manufacturers lost $4 billion in sales when they were shut during the first wave of the pandemic and she expects a similar situation if manufacturers are forced to close again.
Legault is scheduled to hold a news conference late Wednesday and was meeting with opposition leaders Tuesday. According to multiple reports, the province may, for the first time since the spring, order “non-essential” manufacturers and the construction sector to close and extend the current closure of schools.
Quebec reported 2,508 new COVID-19 cases Tuesday and 62 more deaths, including 17 that occurred in the previous 24 hours. Health officials said COVID-19 hospitalizations rose by 23, to 1,317 — the highest number since late May — and 194 people were in intensive care, an increase of six.
The province says 2,529 doses of vaccine were administered Monday, for a total of 32,763. The test positivity rate in Quebec was 11 per cent on Jan. 3, the most recent date for which data is available, with 20,716 tests conducted.
Quebec has reported 215,358 cases of COVID-19 and 8,441 deaths linked to the virus since the beginning of the pandemic.
Proulx said that if Quebec were the only jurisdiction in North America to order factories to close, it would put the province’s manufacturing industry — which employs 450,000 people and accounts for 14 per cent of the provincial GDP — at a severe disadvantage.
“If we’re shutting down and consumers continue to buy, as they did during the last shutdown, they’ll be buying from Amazon and they’ll be buying from other manufacturers who can actually continue to produce,” she said.
“The market share that these foreign companies are gaining is there to stay; it’s very difficult for Quebec manufacturers to win them back.”
Proulx said manufacturers have put measures in place to prevent the transmission of COVID-19, adding that while there may be room for stricter rules in some parts of the industry, she said hasn’t seen the data that supports shutting down the whole sector.
About 27 per cent of active COVID-19 outbreaks in Quebec workplaces were identified in the manufacturing industry during the week ending Dec. 19, according to the most recent government data. Those outbreaks were tied to 1,336 infections @out of a total of 3,367 infections linked to active workplace outbreaks that week.
Retail stores accounted for about 22 per cent of workplace outbreaks during the same period, while the construction sector was responsible for about 9 per cent.
Guillaume Houle, spokesman the Association de la construction du Quebec, said Tuesday his organization wants the government to keep construction sites open.
He said the small number of outbreaks in his industry — which employs about half a million people in Quebec — suggests the measures currently in place are working. Houle, however, said the industry is open to having new discussions with health officials and unions about stricter measures that would allow sites to stay open.
With construction contributing around $1 billion to Quebec’s GDP every week, Houle said the economic cost of another shutdown would be “unprecedented.”
But Eric Boisjoly, director general of the construction wing of one of Quebec’s main labour federations, said measures to stop the spread of COVID-19 on work sites aren’t being enforced as much as they were when the industry reopened in the spring. He said the problem is more acute on smaller sites.
Workers, however, won’t be happy if construction sites are closed, he added. One of the big challenges, he explained, is uncertainty, because workers don’t know what kind of support will be available if they aren’t able to work.
Karl Blackburn, the president and CEO of Quebec’s largest employer group, the Conseil du patonat du Quebec, said his organization wants the government to take a more targeted approach.
He’d like to see the government identify specific problem areas and use a “surgical” approach to deal with the spread of COVID-19 in those sectors.
That would avoid the need for a full lockdown that could be “catastrophic” for Quebec’s economy, he said.
Blackburn said he’d also like to see stricter sanctions for people and organizations that don’t follow public health rules.
This report by The Canadian Press was first published Jan. 5, 2021.
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This story was produced with the financial assistance of the Facebook and Canadian Press News Fellowship.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
