Here are a few recent happenings you need to know for your business:
Bank of Canada Monetary Policy and Rate Cuts
The Bank of Canada has been gradually reducing its policy interest rate, with a recent cut to 4.25% in September 2024. This decision aims to ease price pressures in the economy and guide inflation back toward the 2% target by the second half of 2025. While the rate cuts can help lower borrowing costs for businesses, they are also part of a delicate balancing act to manage inflation and economic growth. We continue to monitor these developments as they can impact loan interest rates and overall economic conditions.
The next scheduled date for announcing the overnight rate target is October 23, 2024.
Manitoba’s Affordable Energy Plan
Manitoba’s Affordable Energy Plan was announced on Friday, September 20, and offers significant opportunities for energy efficiency initiatives, especially through Efficiency Manitoba. The plan could help your business lower energy costs while creating overall demand for energy experts, contractors, and suppliers. The plan encourages partnerships with Indigenous communities in wind energy projects, supports the adoption of electric vehicles, and advances hydrogen development, and envisions the potential for discounted hydro rates during off-peak hours.
For more details, visit manitoba.ca/energyplan
For more info on how The Chamber can help your team with its energy and efficiency planning, contact our Energy and Climate Advocate Casey Claire by emailing [email protected].
Labour Law Changes
Several significant changes to labor laws are in place or proposed. Bill 4 has introduced a new provincial holiday, National Day for Truth and Reconciliation, recognized on September 30. The minimum wage will increase to $15.80 per hour on October 1, 2024, with future adjustments linked to the Consumer Price Index.
Your Chamber’s Advocacy Update: What We’ve Been Up To
Municipal Advocacy
We recently spoke at the Executive Policy Committee (EPC) meeting to address the importance of respecting the collective bargaining process in discussions related to civic wages and benefits. We highlighted the need for City Council to learn from past mistakes, like the unilateral changes made to the police pension in 2019 and urged them to handle wage discussions at the bargaining table to avoid unnecessary costs to taxpayers.
Additionally, we submitted a letter to the City’s Executive Policy Council in support of the Portage Place redevelopment project. We believe this revitalization will transform the downtown area, fostering a more vibrant core that supports businesses, attracts talent, and enhances public safety.
Federal Advocacy
Air Canada and the Airline Pilots Association Negotiations
We wrote a letter to Prime Minister Trudeau as Air Canada and the Airline Pilots Association approached a critical point in their negotiations. With the threat of a strike looming, we urged the federal government to take immediate steps to prevent a major disruption that could have had widespread economic consequences for our region. We are pleased to report that Air Canada reached a tentative agreement with the Air Line Pilots Association, ensuring that over 5,200 pilots continue their vital work.
Concerns About the Impending Rail Strike
We signed a letter with the Canadian Global Cities Council (CGCC), voicing deep concerns about the potential rail strike scheduled for August 22, 2024. Canada’s rail system, which supports every part of the economy and moves goods valued at $1.04 billion daily, was at risk. The strike could have echoed the severe disruptions witnessed during the pandemic and the west coast port strikes in 2023, affecting businesses and families nationwide with delayed shipments, rising costs, and potential layoffs.
Fortunately, swift action was taken, and workers began returning to work after the government requested the industrial relations board to issue a back-to-work order. While this intervention brought an end to the impasse, it serves as a reminder of the vital role railways play in our economy and the need for effective negotiations to prevent future disruptions.
Government Relations
We are actively engaging with government officials to ensure our members’ voices are heard and represented. We have ongoing discussions with Mayor Scott Gillingham and Premier Wab Kinew, and recently met with the Honourable Tracy Schmidt, Minister of Environment and Climate Change. This meeting included Winnipeg Chamber of Commerce CEO Loren Remillard and Board Chair Dr. Jeannette Montufar-MacKay. Key topics discussed included collaboration on net-zero economy initiatives, environmental policy, and the potential for partnerships in upcoming initiatives and the use of carbon pricing revenue.
Additionally, we hosted a roundtable with Canada’s Minister of Small Business, the Honourable Rechie Valdez, to discuss the experiences of 2SLGBTQI+ small business owners in Manitoba. This discussion aims to inform the 2SLGBTQI+ Entrepreneurship Strategy and other government programs, ensuring that the unique challenges and opportunities faced by these businesses are recognized and addressed.
Through our advocacy efforts, we continue to address critical issues affecting our members and the broader economy. Whether it’s supporting key redevelopment projects or urging decisive action on matters that could impact supply chains, your Chamber remains dedicated to being your voice and champion.
