Tag Archives: #canada

The Price of Tea in… Canada

Blair Gable/Reuters

The Price of Tea in… Canada

As inflation continues to grip most of the free world thanks to COVID, Russia, China and our own western governments’ decisions to expand the money supply to record levels in an effort to combat the negative effects of the first three scourges on western economies, very few giant box businesses have NOT chosen to take advantage of the situation to bolster the bottom line. None is more prevalent than the oligopoly held by the three major players in the Canadian grocery business. Loblaw’s Companies Ltd. (Superstore, Loblaws, Fortinos, No Frills), Empire Company Ltd. (Sobeys, Freshco, Farm Boy) and Metro (Metro, Food Basics) have seen profits explode far beyond the rate of inflation or the normal margins for the grocery business.

What gives? Yes, we all agree that inflation has increased prices at our local store. Partially because of economics, disruptions of supply chains, and loss of crops due to weather but that is only part of the picture. It is becoming apparent that greed in an industry that the government has left relatively unchecked for decades is a major driving force. They believe they can get away with anything and truth be told they can.

Case in point. In 2018 it came to light that the significant players listed above plus Walmart, Giant Tiger and Canada Bread were being investigated for anti-competitive practices in the food sector. The companies had been y colluding to fix the price of bread well above market value for at least 16 years. Loblaws and its parent company Weston Foods, one of Canada’s largest bread producers operating under the banner Weston Bakeries, admitted to the scheme but insisted it was concocted by a group of rogue employees who never revealed the scheme to the top brass. The employees were allegedly released and Loblaws agreed to the reimbursement program. Consumers were required to register at the Loblaws website, where they were asked to provide personal information and images of identification, such as a driver’s licence (a massive breach of privacy laws) to receive a $25 gift card. The admission and card program was instituted in exchange for immunity from prosecution. Keep in mind that the price-fixing scheme had taken place over a 16-year period. The other players denied any involvement in the scheme and five years later (21 since the scheme started) are still being investigated by Canada’s consumer watchdog, the toothless federal Competition Bureau. The price of bread has not dropped, in fact, it is more expensive than ever.

In 2019, less than a year after the scandal came to light the Trudeau Liberal’s awarded the hugely profitable Loblaws Companies Ltd. a $12 million grant to replace their in-store refrigerators with new environmentally friendly models. The grant was awarded through an Environment and Climate Change Canada program that did not include any checks and balances to ensure the grant was ever used to upgrade the aging equipment. A loophole that effectively had taxpayer cover large portions of the bread scandal rebate program. I admit none of the allegations I make have been proven but if it walks like a duck…

This week the federal government has called upon the CEOs of these companies to appear before the Standing Committee on Agriculture and Agri-Food which is probing the causes of an 11.4% increase in the price of food. Consumer costs have sky skyrocketed to their highest levels in decades, increasing at almost twice the 5.9% rate of inflation. The CEO’s responses to the committee questions were as expected:

“We are not profiting from inflation, it doesn’t matter how many times you say it … it is simply not true.” – Michael Medline, CEO of Empire Foods.

“Our food profit margin has actually decreased, focusing on grocers will not solve the problem of food inflation because we are not causing it and we’re not benefiting from it.” – Eric La Flèche, CEO of Metro Inc.

“So no matter how many times you read it on Twitter, the idea that grocers are causing food inflation is not only false, it’s impossible. Our retail prices have not risen faster than our costs,” – Galen Weston, CEO and President of Loblaws Group of Companies.

In the media scrum following his testimony, Weston played for sympathy suggesting his company loses money on every chicken breast it sells. I was so moved I almost pulled out the world’s smallest violin.

“It is folly to suggest that an unprofitable grocery business is somehow better for customers. Like all Canadians, we look forward to seeing the end of this tough inflationary period.” – Michael Medline, CEO of Empire Foods.

I say this to Medline and the entire group. No one is begrudging grocers for turning or even maximizing profits, but fair profits are not the same as gouging Canadians to a tune that far outstrips the rising costs so that you can line your pockets with as much gold as possible. Pockets that are so full, inflation is nothing more than an annoying mosquito buzzing about on a warm summer night.

It was an interesting exercise that I’m certain will amount to a big nothing-burger. Considering their past indiscretions I’m not sure we needed to cart out the dog and pony show to hear them insist they are not to blame for inflation and that the larger profits margins are a result of Canadians’ increased spending on other discretionary goods sold in their stores. The track record speaks for itself but I’m sure their word will be good enough for our limp-dicked politicians. None of them will ever be required to open up the books to back those claims. I suspect a well-timed donation to party coffers (3 companies, 3 political parties, you do the math) and the government will consider the matter closed.

In related news…

“The price of tea is going up.” Galen Jr. was heard uttering to his fartcatchers as they boarded the Weston family jet. “I’m not sure who these politicians think they are questioning me. They will pay through the nose for the cost and inconvenience they’ve caused. Take that Canada!!!”


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The Suicide of René Lévesque

The Suicide of René Lévesque

Every week Fandango over at This, That and the Other posts a provocative question. This week’s question deals with memory and the things we believed to be true. Although my post does not deal in absolute truths and likely veers from Fandango’s original concept, it does speak to a realization of something I believed would happen but never did. This week’s question is…

“Have you ever been sure that you knew something to be true only to find out that what you thought you knew to be true was, in fact, not true? If so, what was it and how did you find out that it wasn’t true?”

Canada has always been divided along language and religious lines. A legacy left by the British who conquered the French on the plains of Abraham but allowed the French communities to retain their language and customs in Lower Canada, mainly for political reasons back in Europe. The province of Quebec would eventually include most of Lower Canada within its boundary at the time of Canadian confederation in 1867.

Its French heritage has always made Quebec unique within a united Canada, especially when compared to the other nine predominately English-speaking provinces. The most obvious difference is language and this idea of Quebec being a distinct society or a nation much in the same vein as the Aboriginal populations of North America such as the Sioux or Iroquois Nations. The truth is a lot of that rhetoric is a thin veil that the pure laine1 francophone minority holds onto like a security blanket, designed to hide their xenophobic and often racist agenda.

I was only five or six, too young to remember the FLQ crisis in the early 70s but I was certainly old enough to remember the first of two referenda held in Quebec’s deluded attempt to (kind of) separate from Canada. I say kind of because many Quebecers believe the Federal government would continue to financially support an independent Quebec and continue to provide the transfer of tax monies collected to the new nation after succession. Bwahhh ha ha…

The first referendum, spearheaded by the Parti Québécois (PQ) and then Quebec Premier René Lévesque was held in 1980. Lévesque was a stereotypical chain-smoking Québécois who grew up in the Gaspé. Although his father was a prominent lawyer and he did not grow up impoverished, he was raised in a region of Quebec where the French-speaking population was dirt poor compared to the English, most of whom were descendants of British Loyalists who had fled the American Revolution. This would have a profound effect on his life and his politics. Quebec’s national aspirations would be rejected by 60% of Quebecers in that first bid for independence and although Lévesque would not live to see it, the province would hold a second unsuccessful vote in 1995.

My Grandmother was French Canadian born and raised in Sainte-Anne-de-Bellevue on the western tip of Île de Montréal. She would marry my Grandfather, an anglophone of English and Irish descent and move to Mississauga, Ontario but she would maintain a deep connection to family in La Belle Province. That first referendum tore her family in two, a line drawn between Nationalist and Federalist allegiances, the wounds not fully healed even to this day.

As a kid, I recall a particular evening at my Grandparent’s house. We were off playing in the kitchen, foyer or den while the adults discussed politics in the living room. Lévesque and the coming referendum dominated the conversation. There may have even been some of the Federalist faction of my Grandmother’s family visiting although my memory is less clear on those facts.

What I do remember is my Grandfather getting very heated and stating rather emphatically that René Lévesque would realize his treachery and in some display of remorse for his actions hang himself. I admit, right up until his death of heart failure in 1987 I fully expected to wake up to the news of Lévesque being found, hanged by his own hand from the rafters of his garage. I know a weird fascination for a kid but the memory of my Grandfather’s words have stuck with me for almost half a century.

As for Lévesque, friends and foes alike remember him as a giant of Canadian/Quebec politics. In my view, he was nothing more than a traitor to the values this country holds dear. Separation for Quebec seems more unlikely today than ever. Immigrants continue to flock to Canada and settle across the country. Many hold deep-seated allegiances to the federal government that provided asylum from whatever horrors they left behind in their native lands. As such they tend to have federalist leanings and as the population dynamic continues to evolve in Quebec federalist voices continue to outweigh the desires of the separatists.

Still, many of the policies born from the early PQ and the separatist movement are present in modern-day Quebec as is evident in Bill 96, yet another attempt to eradicate secondary languages and in particular English from the province and the blatantly racist Bill 21 designed to force public servants to remove all vestiges of personal religious symbolism in provincial workplaces.

Although the bill is written to include the removal of all religious symbolism, and sold to the public as an effort to separate church and state. It is advertised as promoting secularism in provincial institutions, but in reality is an attack on minority groups in the province, especially those who have more outwardly visible religious attire such as turbans or hijabs and will have little effect on the province’s Catholics. Most Christian symbolism such as crosses or crucifixes are normally small or hidden beneath clothing and the line between their religious roots and secular prominence have long since blurred making it less likely to be enforced.

Note:
1. The French term pure laine (lit. ’pure wool’ or ‘genuine’, often translated as ‘old stock’ or ‘dyed-in-the-wool’), refers to Québécois people of French-Canadian ancestry, especially those descended from the original settlers of New France who arrived during the 17th and 18th centuries.
Citation: Wikipedia.


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The Human Race

The following is in response to Fandango’s Provocative Question #165. The prompt is:
How do you feel about what is going on in the United States in regard to racism? Do you see any way of reconciling the concepts of White Replacement Theory and Critical Race Theory?

The Human Race

I identify as human, yes I have skin that categorizes me as Caucasian, my recent ancestors are of European descent and can be traced back to England, Ireland and France. That is how others identify me but I am human, we are all human.

As an outsider, I see the American race dilemma as an observer. I have a sister who moved and married in Texas and although I would not call her racist she and her family certainly represent conservative white America. From what I see that Trump supporting rabid white right is a scary place right now. Not from external threats but from within. Seemingly bright, educated people who have lost all perspective on reality.

Canada is not without our own racial discourse. Our treatment of Japanese Canadians during World War II and two centuries of oppression against aboriginal populations have been appalling.

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