grocery – mackaycartoons

Friday May 31, 2024

May 31, 2024 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday May 31, 2024

Innovative Leadership is Crucial to Reverse Canada’s Grim Economic Outlook

March 5, 2024

As Trevor Tombe compellingly outlines in his recent piece for The Hub, the reality of Canada’s inflation crisis is far more severe than headline statistics suggest. While official measures may indicate a return to stability, the lived experiences of Canadians tell a different story—one of enduring financial strain and diminishing purchasing power. It’s clear: innovative leadership is now more crucial than ever to reverse these hard times and challenge the prevailing pessimism.

Tombe’s analysis reveals a stark disconnect between the official inflation figures and the daily struggles faced by many Canadians. While the Bank of Canada’s core measures show inflation rates dipping below the 2% target, this offers little comfort to those dealing with skyrocketing costs in essentials such as rent, food, and gasoline. Since 2020, these costs have surged by 20%, 23%, and 30%, respectively. For mortgage holders, the burden is even heavier with interest costs up 43%. These salient price hikes dominate household budgets and shape public perception, making the reported average inflation rate feel misleadingly optimistic.

Analysis: Why inflation feels higher than the statistics suggest

April 9, 2024

Addressing these issues requires more than traditional economic measures—it demands innovative leadership capable of crafting and implementing bold, effective strategies. One critical area is housing affordability. Government and private sector partnerships must innovate to increase the supply of affordable housing. This includes streamlining building regulations, providing incentives for developers to construct lower-cost homes, and expanding social housing projects.

September 19, 2023

Policies must also be designed to support the most affected demographics, particularly renters and lower-income households. This could involve direct financial assistance, subsidies for essential goods, or tax relief measures tailored to ease the cost burden on these groups. To sustainably restore purchasing power, Canada needs to focus on driving wage growth and productivity. Investments in education, skills training, and technology adoption can enhance the workforce’s capacity, leading to higher wages and economic growth.

Enhancing the way inflation is measured to more accurately reflect the diverse experiences of Canadians could help in crafting more effective policy responses. Including more granular data on different demographic groups would ensure that economic policies are better targeted and more equitable.

January 31, 2023

The pervasive pessimism about Canada’s economic future stems from the immediate and tangible hardships people face. However, innovative leadership can challenge this despair by demonstrating that positive change is possible. Transparent communication, clear action plans, and a commitment to addressing the root causes of economic distress are essential. Consider the example of New Zealand’s well-being budget, which prioritizes citizens’ overall well-being over traditional economic metrics. Such an approach could be adapted to the Canadian context, focusing on policies that enhance quality of life, reduce inequality, and ensure sustainable economic health.

May 10, 2022

Canada stands at a critical juncture. The grim reality of our current economic situation, as laid bare by Trevor Tombe, requires a response that is as bold as the challenges we face. Innovative leadership—characterized by creativity, empathy, and a willingness to break from the status quo—is essential to navigate these turbulent times and build a more resilient and equitable future.

Our leaders must rise to the occasion, not just to mitigate the immediate impacts of inflation, but to foster an environment where all Canadians can thrive. The path forward will not be easy, but with visionary leadership, we can reverse the tide of hardship and restore hope for a brighter, more prosperous future. (AI)

Saturday May 18, 2024

May 18, 2024 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday May 18, 2024

*Watch the animated version here!

The Grocery Code of Conduct is a Well-Intentioned But Ultimately Ineffective Measure

August 2, 2023

Voluntary codes of conduct, by their nature, often lack the necessary enforcement mechanisms to drive meaningful change. Similar initiatives in other sectors, such as the Air Passenger Bill of Rights, have shown that without mandatory compliance and stringent enforcement, these measures tend to fall short of their promises. The grocery code, which aims to regulate retailer-supplier relations, risks becoming another well-intentioned but ineffective gesture if not properly enforced.

A critical misconception is that this code will help lower grocery prices. The code focuses on improving fairness and transparency between suppliers and retailers, addressing issues like dispute resolution and contractual clarity. While these are important objectives, they do not directly influence consumer prices. High food prices are primarily driven by broader economic factors such as inflation, currency devaluation, and global supply chain disruptions. Expecting the grocery code to mitigate these complex issues is unrealistic and misguides public expectations.

News: Loblaw agrees to sign grocery code of conduct — but only if competitors do

March 8, 2023

High food prices in Canada reflect larger systemic problems, including inflation, government spending, and global economic pressures, which have led to increased costs across various sectors. The grocery code addresses only a small part of these broader issues and is unlikely to significantly impact consumer purchasing power. The direct beneficiaries of the code are industry players who will see improved business operations and potentially reduced inefficiencies, rather than consumers experiencing lower prices.

For meaningful change, a comprehensive approach is needed to tackle the root causes of high prices. This includes addressing inflation, enhancing supply chain resilience, and implementing regulatory measures with real enforcement power. A mandatory code with clear penalties for non-compliance would serve as a stronger deterrent against unfair practices. Additionally, broader economic policies that enhance productivity and stabilize the currency would have a more profound impact on consumer prices.

While the grocery code of conduct is a step toward improving industry practices, it is not sufficient to address the underlying economic challenges driving high prices. To truly protect consumers and achieve lower prices, more robust and comprehensive solutions are required. (AI)

Tuesday September 19, 2023

September 19, 2023 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday September 19, 2023

Trudeau’s Desperate Bid to Salvage Sinking Polls and Soaring Food Prices

August 2, 2023

As Trudeau’s government grapples with plummeting poll numbers, the decision to summon CEOs from Canada’s grocery giants — Loblaw, Sobeys, Metro, Costco, and Walmart — to a meeting in Ottawa has become a high-stakes gamble in the quest to address the pressing issue of rising living costs. With housing and grocery prices skyrocketing, Trudeau is under immense pressure to demonstrate effective leadership, as recent polls show his government facing its worst ratings since 2015.

Trudeau’s announcement to hold the grocery CEOs accountable comes after weeks of relentless criticism from the opposition, particularly the Conservatives, on the handling of affordability issues. In a bold move, Trudeau warns these corporate leaders that they have until Thanksgiving to present a plan to stabilize food prices, with the threat of potential tax measures looming if they fail to deliver.

News: Grocer summit to ‘take the heat off’ Ottawa, not tackle food inflation: experts

March 8, 2023

This shift in stance reflects a newfound urgency, given that Trudeau had previously dismissed the idea of a windfall tax on grocery chains as “simplistic.” However, mounting public frustration and political survival seem to have swayed his perspective.

The parliamentary committee’s concerns about grocery giants profiting excessively from food inflation and the Competition Bureau’s call for increased competition have further fueled the government’s resolve to take action. Amendments to the Competition Act are in the pipeline to bolster the bureau’s authority to address market issues, fostering competition that could benefit consumers.

Led by Industry Minister François-Philippe Champagne, discussions with grocery CEOs will focus on solutions, particularly with the top five grocers that dominate 80 percent of the market. Critics, including NDP Leader Jagmeet Singh, argue that Trudeau’s plan lacks specificity and accountability, raising the challenge of translating discussions into meaningful actions for Canadians.

News: Minister says Canada’s largest grocery chains have agreed to ‘work’ on stabilizing food prices

December 8, 2016

Ultimately, the outcome of this meeting holds both immediate and long-term implications — not only for grocery prices but also as a litmus test for Trudeau’s leadership. The nation watches closely to see if this initiative will be a turning point or merely a desperate attempt to regain popularity amid a sea of sinking poll numbers. One thing is clear: Canadians are expecting tangible results that reflect positively on their household budgets. (AI)

Wednesday August 2, 2023

August 2, 2023 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday August 2, 2023

Cry baby in the shopping cart

July 18, 2023

Inflation has been a significant concern for the Canadian economy, impacting all aspects of daily life, with grocery prices being hit the hardest. In recent months, the cost of living has surged by almost six percent, while grocery prices have soared nearly double that pace, leaving consumers feeling the pinch. As prices rise, the profits of big grocery chains have reached record highs, further exacerbating the disparity between their financial success and the plight of their low-wage workers.

Front-line grocery store workers at Metro, represented by Unifor Local 414, have taken a bold stance by going on strike, demanding fair treatment and wages that align with the company’s impressive profits. Over 3,000 workers across 27 Metro locations in the Greater Toronto Area are united in their fight for better pay and improved working conditions. Workers, like Tammy Laporte, a dedicated produce and fruit clerk with 25 years of service, want their contributions to be acknowledged through fair compensation.

Analysis: High stakes in Metro strike

June 20, 2023

The issue of low wages is prevalent among grocery store employees, forcing many to live in debt and struggle to make ends meet. Workers like Austin Coyle, a meat manager, are among the highest paid but still find it challenging to afford basic living expenses in the high-priced city of Toronto. The situation is so dire that some employees are forced to turn to food banks because they cannot afford to buy groceries from the very stores they work in.

The grievances of the workers are not without cause. During the pandemic, grocery chains, including Metro, earned praise for their “hero pay” bonuses for front-line workers. However, these bonuses were swiftly cut once the companies saw an opportunity to boost their profits. This move, which came amidst record earnings for the grocery barons, further highlights their prioritization of financial gains over the well-being of their employees.

March 8, 2023

Despite recent negotiations, which saw a tentative deal between Metro and the union, Unifor, the proposed wage increases fall short of meeting the workers’ immediate needs. The workers’ demands for a $2-per-hour wage increase in the first year were not met, leading to the rejection of the deal. While the grocery chains claim that they are offering wages above inflation rates, it fails to address the workers’ struggles in affording basic expenses amidst soaring CEO compensations.

While big grocery chains assert that they are not profiting from inflation, experts argue that the current economic climate provides them with cover to raise retail prices. As prices increase, the profits of these companies surge, despite their claims of maintaining slim profit margins. Such practices further widen the gap between the grocery barons’ financial success and the difficulties faced by their employees.

December 8, 2016

The actions of big grocery barons during the inflation crisis have brought their priorities into question. Their record profits and reluctance to address the immediate needs of their low-wage workers highlight a significant disparity in wealth distribution. The brave stand taken by front-line grocery store workers at Metro illustrates the urgent need for fair wages and improved working conditions. As consumers, it is essential to support these workers in their fight for fairness and advocate for greater accountability from the grocery industry to ensure that profits are not amassed at the expense of hardworking employees. (AI) | Also printed in the Toronto Star.

Reposted to The Louisville Political Review: The Grocery Oligopoly: Are You In Good Hands?

Tuesday June 20, 2023

June 20, 2023 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday June 20, 2023

Grocery Monopoly: Big Chains Face Windfall Tax and Code of Conduct Scrutiny

June 18, 2020

In a classic case of Monopoly come to life, the parliamentary agriculture committee is calling for Ottawa to slap a windfall tax on the owners of Big Grocery if they dare to generate excess profits on food items. These wealthy Uncle Milburn Pennybags-like figures must be feeling the heat as the committee released its report on June 13, capitalizing on Canadians’ frustration with rising inflation during their weekly grocery run.

The committee highlighted that while the food and beverage retail sector has been dealing with supply chain issues and labor shortages, they conveniently managed to record an increase in net income. This has led to speculation about the so-called “price gouging” by Canada’s five largest retailers, who hold a whopping 80 percent of the grocery market. It seems the committee is playing the role of Detective Weak Police, wondering if anyone at the Competition Bureau is actually paying attention to what’s happening right before their eyes.

Analysis: Food retail sector facing big changes

March 8, 2023

However, the owners of these Big Grocery chains were quick to defend themselves. They appeared before the parliamentary committee in March and took the oath to solemnly swear that they weren’t profiteering off higher grocery prices. Galen Weston, the president of Loblaw, one of the major players, even had the audacity to argue that “reasonable profitability” is simply part of running a successful business. Oh, how noble of them! Apparently, those profits are just being reinvested into the company and, of course, into the oh-so-needy country.

But if the government decides to implement this windfall tax, it will surely hit the grocers where it hurts the most—their bottom lines. Of course, this hinges on the findings of the Competition Bureau, which is currently conducting a study of food inflation. As expected, the bureau released a statement listing various factors that could have impacted food prices, including extreme weather, higher input costs, geopolitical events like Russia’s invasion of Ukraine, and supply chain disruptions. They seem to be exploring every excuse in the book rather than addressing the elephant in the room—questionable competition factors.

April 13, 2023

Not everyone is convinced that a windfall tax is warranted, though. Gary Sands, the vice-president of government relations at the Canadian Federation of Independent Grocers, adamantly denies any evidence of “greedflation.” He argues that price increases are not limited to the big grocery chains but are apparent in smaller stores as well, as everyone is simply responding to supplier price hikes. Sands presented his case to the committee and warned them of the slippery slope they’re treading on. He rightly points out that if retailers face a windfall tax, suppliers should be subjected to the same treatment, given the interconnected nature of the industry.

The government, however, wants everyone to know that they’re not just picking on grocers. No, no, they’re committed to ensuring that everyone pays their “fair share” of taxes. Adrienne Vaupshas, the press secretary of the federal minister of finance’s office, had the audacity to claim in an email statement that the government has imposed taxes on other companies like banks and insurers in the past. Well, that makes it all fair and square, doesn’t it?

News: Ottawa should consider windfall tax on grocery profits if they’re found to be excessive: report

May 10, 2022

According to Michelle Wasylyshen, the spokesperson for the Retail Council of Canada, the industry’s price hikes are justified by various macroeconomic trends and have nothing to do with greed. She blames the rising costs of feed, fuel, and fertilizer, along with supply chain disruptions, labor shortages, and climate events, as the real culprits behind food price inflation. Wasylyshen warns against excessive government intervention in the retail food business, claiming there’s no evidence to suggest that meddling in operational aspects would do anything to benefit consumers.

But of course, there are always those who believe that government intervention is the holy grail to control Canada’s grocery oligopoly. Advocates have been clamoring for a grocery code of conduct, similar to those in Australia and the United Kingdom, to rein in the power of Big Grocery. Finally, after years of deliberation and consultation with industry players, it seems that the code is nearing completion. Agriculture Minister Marie-Claude Bibeau even boasts that it could be implemented before the end of 2023. However, the agriculture committee insists that the code must be mandatory and enforceable, or else there’s no guarantee that all the major grocers will willingly sign on. (AI)