Canadian Dairy Commission announces unprecedented 8.4% increase in the price of milk
B.C. moves to ban particular packaging material and single-use items
RCC requests Saskatchewan update restrictions on liquor stores and QSRs
Federal Updates
Canadian Dairy Commission announces unprecedented 8.4% increase in the price of milk
The Canadian Dairy Commission (CDC) announced on Friday, October 29 an unprecedented 8.4% increase in the cost of milk used to make dairy products for the retail and restaurant sectors effective February 1, 2022. This will impact some categories like butter by more than 12%.
Grocery retailers are seeing food price increases from many of their vendors but this one is particularly difficult given that it is an essential product for Canadian families and children in particular. RCC understands that farm input costs have increased significantly and that dairy famers are understandably looking to recoup those costs, but what the system lacks is any meaningful input on behalf of Canadian consumers. The three current members of the Canadian Dairy Commission are two dairy farmers and the former CEO of a milk marketing board. Simply put, consumer interests for Canadian families, or for that matter, the vital interests of the grocery or restaurant industries, go unrepresented on the CDC.
RCC issued a statement to the Toronto Star underscoring this increase as an example of one of many recent historic price increases being experienced by retailers, and met with the CDC on Monday, November 1 to convey our concerns with the process. RCC is also working with Restaurants Canada and other industry partners to consider next steps,including the potential for additional media messaging and potential advocacy to ensure that the needs of retailers and consumers are reflected in the CDC’s processes and decisions.
Provincial Updates
BRITISH COLUMBIA
Province moves to ban particular packaging material and single-use items
RCC is concerned that new legislation introduced by the B.C. government will establish precedents in other jurisdictions that will have negative cost, operational and environmental outcomes. Bill 24, introduced on October 26, would amend the Environmental Management Act (EMA) to provide government with the authority to regulate the material used for product packaging and single-use items that are used, distributed, and sold in B.C. That authority would extend to packaging used, distributed, or sold separately from the product.
The definition of single-use item added to the legislation reads: “’single-use product’ means a product that is ordinarily disposed of after a single-use or short-term use, whether or not the product could be reused.” This is different than wording used elsewhere.
An amendment to the definition of ‘packaging’ clarifies that marketing or communications items attached to, or provided with, products could also be subject to limitation. Added to existing legislation are the word ‘material’ and the phrase ‘single-use products’ which will permit the minister to regulate not only the content, shape, nature and weight of the packaging but also the material used, and extends the ability beyond packaging itself to include single-use products as defined by the legislation.
RCC notes that the local governments have asked for the power to regulate the distribution, sale and use of ‘biodegradable’ and ‘compostable’ take-out food packaging noting that these items are a common contaminant in both organic collection programs and in Recycle BC’s blue box collection system. This legislation could result in a patchwork regime of regulations resulting in business and consumer confusion, increased costs and operational complexities and reduce the potential for beneficial environmental outcomes. The minister has used his existing power under the EMA not only to regulate on behalf of the province, but also delegated that authority to local governments resulting in a patchwork of different systems in neighbouring municipalities.
New electronic system in development for point of sale verification and documentation of tax-exempt sales of tobacco and fuel made on-reserve
The new system will replace the current paper-based documentation process, giving retailers a dedicated point of sale system that will electronically verify customers’ eligibility for tax exempt purchases. There will be no fee to retailers for system set up or technical support. There is the potential that retailers will have advice for government in respect of this project.
WorkSafeBC introduces new online exposure limit search tool
E-Limit provides information about B.C. exposure limits that can be easily accessed from your computer or mobile device.
ONTARIO
Province to pass “disconnect from work” legislation
Bill 27, Working for Workers Act, 2021, was introduced by the Ontario government on October 25, 2021. Among other things, the Bill amends the Employment Standards Act, 2000 to impose a requirement on employers that employ 25 or more employees to have a written policy with respect to disconnecting from work (defined as not engaging in work-related communications, including emails, telephone calls, video calls or the sending or reviewing of other messages).
RCC has been engaging with the Ministry of Labour on this issue and we understand that the legislation is tracking to be passed in December 2021, but that a Proclamation date will be set for a future date after Royal Assent. Many of the details are yet to be finalized and we have been assured that RCC will be invited to present at the upcoming Committee hearings which are expected to be held in mid-November. At this point, we believe that the government’s intent is to draft the regulations in a manner that is not draconian or overly prescriptive. The goal is for a flexible system that will allow employers to exercise their discretion as to what makes sense for the company.
MANITOBA
Manitoba PC Party elects Heather Stefanson as new Premier
This past weekend, Heather Stefanson was chosen as the next leader of Manitoba’s Progressive Conservative party, and by default the province’s 24th Premier after winning the party leadership race by 363 votes over her opponent Shelly Glover. Glover plans to ask the Court of Queen’s Bench to declare the election invalid, suggesting irregularities in the counting of vote, however Stefanson is expected to be sworn in today at 2:00pm CT. RCC anticipates meeting with the new Premier in the weeks ahead.
The next general election is expected in 2023.
ALBERTA
Alberta updates REP guidance document
A new Requirements for the Restrictions Exemption Program (REP) guidance document has been released from Alberta Health that includes clarifications (no policy shifts), including those impacting quick service restaurants and restaurants with retail. RCC had successfully advocated that QSRs be allowed to confirm proof of vaccination at the checkstand, rather than at the door. This is now reflected in these updated guidelines.
Programs announced to help Alberta small business go online
The Government of Alberta is investing $10 million over two years to help Alberta small businesses increase their digital presence through two initiatives. The Digital Main Street Alberta website highlights how eligible small businesses are able to receive support to create and operate an online store. Additionally, the province has provided funding under the Digital Service Squad Grant program will support through non-profit entities free services and technical support.
SASKATCHEWAN
Saskatchewan Direct Sellers Act under review
The Saskatchewan government is seeking feedback regarding proposed amendments to the Direct Sellers Act regulating door-to-door and phone sales. The Consultation Paper highlights a number of areas under review, and RCC welcomes hearing from impacted members regarding their perspective on the amendments.
For further information, assistance or questions, please contact John Graham at jgraham@retailcouncil.org.
RCC requests province update restrictions on liquor stores and QSRs
RCC met with senior Saskatchewan government officials late last week to discuss concerns with the restrictions that have been placed on liquor stores and quick service restaurants (QSRs). Saskatchewan is the only Canadian province to require liquor store (or any retail store) customers to present proof of vaccination. The policy has resulted in significant confusion due to restrictions being tied to the not always apparent SGLA licence a store has, and RCC is advocating that the POV requirement be lifted.
RCC has also advocated on behalf of QSR members that the requirement to confirm vaccination status for takeout at the door be updated, to align with other western provinces where vaccination status may be verified at the checkstand, using existing staff.
NEW BRUNSWICK
Saint John area to join circuit breaker
Beginning October 29, 2021 at 6pm, most of Zone 2 (Saint John Area) will enter a 14-day circuit breaker event. As previously noted, people are not allowed to travel into circuit breaker areas, unless it is for essential reasons. Non-essential businesses (e.g. cinemas and quick service restaurants) can continue to operate in the circuit breaker areas but proof of vaccination is required and masks are required indoors, except when seated to eat and/or drink. Retail is considered essential thus, proof of vaccination is not required but physical distancing and masking (indoors) is required.
People from outside a circuit breaker area can travel into a circuit breaker area to attend an event or frequent a business where proof of vaccination is required. People from outside a circuit breaker area cannot travel into a circuit breaker area to frequent a retail establishment given that there are no proof of vaccination requirements.
CUPE strike initiated, retail impact expected to be minimal
On October 29, 2021, the Canadian Union of Public Employees (CUPE) in New Brunswick initiated strike action. On October 31, 2021, the government responded by locking out all non-designated CUPE employees. Although this strike could affect the daily lives of retailers and retail employees living in New Brunswick, the impact on retail business is expected to be minimal. Retailers should be mindful that the strike will impact provincial ferry service, which could affect the ability to get retail goods to certain areas of the province.
Is Your Loyalty Program Actually Improving Customer Loyalty?
Do you have a basic loyalty program with a high enrollment rate—but it doesn’t seem to be driving customer loyalty or any other valuable KPIs? Take a deep dive into the good, the bad and the ugly when it comes to basic loyalty programs—including missed opportunities to leverage customer and loyalty program data, and recommendations on how to take an effective and personalized marketing approach to loyalty that will create maximum business impact. Learn More
RCC in the News
Buy holiday gifts earlier than usual or face empty shelves, retailers warn
Because of supply-chain woes, retailers are warning Christmas shoppers to buy earlier than usual or they’ll face empty shelves for popular items this holiday season. Retail Council of Canada survey found that Canadians say they are going to spend significantly more on shopping and visit more brick-and-mortar stores in the coming months. (CTV News)
More RCC in the News
Canadians plan to spend more on the holidays in 'make or break' period for retailers (yahoo.com)
How Halloween pop-ups bring zombie stores back from the dead (CBC News)
Newfoundland and Labrador creates sugar-sweetened beverage tax (RestoBiz)
Need to Know: Point-of-Sale Terminals
FBI raids PAX Technology, leading payment terminal provider
Payment terminal manufacturer PAX Technology, one of the largest electronic payments providers in the world, was recently raided by the U.S. FBI for allegedly facilitating cyber attacks on various American and European targets. RCC has been informed by our payment provider, Chase Merchant Services, that they do not have a relationship with PAX Technology and have never supplied the company’s terminals to their merchants.
RCC members who have payment processing agreements with other providers beside Chase Merchant Services should contact their processor directly.
Resources for Retailers
NEWCanadians' views on labour shortages - Leger 360
With both Canada and the United States are experiencing labour shortages in various industries, Leger asked residents of both countries whether they have experienced in-person businesses like restaurants/bars, retail and/or grocery stores being under-staffed, and what they think companies should do.
60% of Canadians have experienced a situation where in-person businesses like restaurants/bars, retail and/or grocery stores have been under-staffed in the last three months.
50% of Canadians think that companies could offer better salaries to entice more people back to work at service jobs.
48% of Canadians think that the best option for companies to deal with employees earning minimum wage is to increase the minimum wage to the level of inflation.
34% of Canadians say the economic factor affecting them most right now is the higher cost of goods.
The $2 Trillion Transition: Canada’s Road to Net Zero - RBC Economics
All told, we’re putting as much pollution into the atmosphere as we did a generation ago. We don’t have another generation to shift gears—not if we want to avoid the worst consequences of global warming. To get on a more serious path to Net Zero, the federal government committed to getting Canada back to around 500 million tonnes by the end of this decade—and eliminating or offsetting the rest by 2050. This report aims to map out some of those pathways, as well as the investments and policies needed to achieve Net Zero, and the amounts needed could be hefty: around $2 trillion in the next three decades. That's at least $60 billion a year to cut Canada’s emissions by 75% from current levels, which is about as far as we can get with current technologies.
As the largest retail education and networking event in Western Canada, Retail West brings together retailers, vendors, suppliers, thought leaders and decision makers from across the retail industry, this year in a virtual format. Get ready for a half-day immersion into the latest trends, technologies and best practices in modern retail. The packed agenda will inspire attendees with success stories and insights about how business is thriving in the Western Canada.
NEXT WEEK In conversation with Haio Barbeito of Walmart
November 9, 2021, 1-2pm ET
Retail is changing. No one knows this better than Haio Barbeito, President and CEO of Walmart Canada. To help retailers better understand how they can prepare their leaders and associates for what is ahead, Haio will discuss the future of retail with Diane J. Brisebois, President and CEO, Retail Council of Canada. He'll demonstrate how Walmart Canada is looking ahead, demonstrating value for their partners, their associates, and their leaders for recognizing the need for urgent action. Leadership takes courage—and Walmart is committed to leading.
First, Google veteran Eric Morris, Managing Director of Google's Retail practice in Canada, talks about holiday customer trends and long-run industry retail insights. Next, Rebecca Minkoff has written the new rule book on being a fearless business leader. She joins host Michael LeBlanc to talk about persevering as a business owner in the pandemic, The Female Founder Collective, and her new book Fearless: The New Rules for Unlocking Creativity, Courage and Success.