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Study shows many hospital-owned restaurants, including those in Alberta, operate at a loss – CTV Toronto

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CALGARY —
While Alberta Health Services (AHS) is looking for a company to take over the rest of its laundry services, new data shows many restaurants and cafeterias in Alberta hospitals have been operating millions in the red for years.

AHS announced a request for proposal (RFP) from third-party providers to take over the process of cleaning the massive quantity of linens, towels and other products Alberta’s hospitals use each day.

The province announced it was taking the step toward privatizing many of the services currently offered at Alberta hospitals earlier this month.

Health Minister Tyler Shandro says the RFP will allow the health-care system to discover savings to benefit Albertans.

“By reinvesting savings from initiatives such as contracting out laundry services into the health system, we can improve patient care and ensure Albertans are provided with the best possible health care,” he said in a release Friday.

AHS says more than two-thirds of its laundry services are already provided through a third party, including all the laundry services in the city of Calgary and Edmonton.

It says the transition will save more than $38 million that could be used in other areas to support patient care.

An estimated 428 full-time, part-time and casual employees will be impacted by the change.

“AHS is committed to working with them and their unions throughout this process. AHS anticipates there will be some opportunities for employment with the new vendor(s),” officials say.

HOSPITAL-RUN RESTAURANTS LOST MILLIONS

One of the other areas identified by the health minister’s office as a potential for cost savings was the hospital-run cafeteria services and restaurants.

Data, released earlier this week by SecondStreet.org, shows that many of Alberta’s commercial food locations that operate inside of hospitals posted losses.

The highest losses in 2017/18 and 2018/19, the two years that the organization looked at for its study, were both at the University of Alberta’s main hospital cafeteria.

The main findings of SecondStreet’s study indicate that if hospitals can’t break-even on cafeterias and food kiosks, private companies should take them over.

(Source: SecondStreet.org)

“Several hospitals in Canada have done just that and they’ve been able to turn losses into gains and focus more on helping patients,” said SecondStreet.org president Colin Craig. “Cooks don’t do surgery, and health care administrators aren’t restaurant managers – and it shows.”

‘FINDINGS FIT WITH THE EVIDENCE’

The province says the data compiled by SecondStreet.org fall in line with what it found during its own research, including the MacKinnon report and the recent AHS review.

“The SecondStreet.org findings fit with the evidence,” said Steve Buick, press secretary for Health Minister Tyler Shandro. “We need to find efficiencies in the health system to pay for more services for patients, while ensuring Albertans are protected from the COVID-19 pandemic.

“AHS will contract non-frontline services to independent contractors that can operate more effectively than government. That includes laundry, lab tests, housekeeping, and food services. Contracting of food services will move forward in 2021.”

Buick adds some services at Alberta hospitals are already successfully contracted out to third party companies.

“Nearly 70 per cent of laundry services province-wide, and 73 per cent of community lab tests in Edmonton and northern Alberta.”

He also emphasized that the province’s plans will not necessarily mean any net loss of employment.

“In fact, many staff will simply do the same job for a different employer. Any reductions will be managed through attrition as much as possible.”

AHS says the RFP process for a potential vendor for laundry services could take approximately four months. Implementation would depend on the company chosen to take over the services.

CTV News has reached out for any details on RFPs for restaurants, housekeeping and lab services, the other areas identified for reorganization by Minister Shandro’s office.

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Canada Goose to get into eyewear through deal with Marchon

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TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.

The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.

The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.

Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.

Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.

Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.

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

Companies in this story: (TSX:GOOS)

The Canadian Press. All rights reserved.

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A timeline of events in the bread price-fixing scandal

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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)

The Canadian Press. All rights reserved.

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TD CEO to retire next year, takes responsibility for money laundering failures

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TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.

Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.

The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.

As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.

TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.

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

Companies in this story: (TSX:TD)

The Canadian Press. All rights reserved.

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