“We learned last week that our economy is contracting. Statistics Canada reported that our economy went into the negative in quarter two, just like many Canadian’s bank accounts.   Families are being pushed to the brink and more and more workers are living pay cheque to pay cheque, worried about losing their jobs. After 10 rate hikes, today’s decision means the Bank didn’t make an already horrible situation worse,” warned Bea Bruske, President of the Canadian Labour Congress. “As families face huge jumps in mortgage costs and ballooning payments for loans and lines of credit, we urge Governor Macklem to put the well-being of people at the heart of Canada’s monetary policy and signal an end to rate hikes.”

Bruske explained that the Bank of Canada’s mandate was changed in December 2021 to give it leeway to consider the impact on people and jobs, yet the Bank has been narrowly focused only on inflation and not enough on everyday people.

“The Bank’s stubborn focus on raising rates and driving up mortgage rates are not only hurting so many renters and homeowners, they’re also now the biggest force pushing up inflation,” said Bruske. “The Bank has the leeway to look at the impact on people, so why haven’t we seen this? The Bank must stop trying to use yesterday’s monetary policy solutions to solve today’s challenges.”

Bruske added that while the government doesn’t set interest rates, they do have a responsibility to help struggling families.

“We hear from so many workers and families unable to make their rent or pay for groceries. But interest rates are just one part of the problem. There’s a lot more government can do to help those struggling the most,” said Bruske. “When Parliament resumes in two weeks, we’ll be looking for all parties to come together behind urgent action to build more affordable housing, create good sustainable union jobs, and implement publicly delivered pharmacare.”

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Today’s numbers are further evidence that inflation is already slowly moderating in Canada. Yet again, Canada’s unions are calling on the Bank to pause its tightening cycle and avoid further hiking rates.

“The Bank’s rapid and aggressive rate hikes will have colossal impacts on workers and their families. Raising rates may eventually squeeze inflation out of our economy—but the cost is sky-high. The Bank’s actions could cause an enormous rise in unemployment, personal and corporate bankruptcies, and could potentially initiate a financial crisis,” said Bea Bruske, President of the Canadian Labour Congress. 

The Bank needs to let the impact of previous rate hikes take hold before taking further action, in order to avoid a damaging recession. If the Bank continues down this path, it risks heavily weakening our economy and throwing hundreds of thousands of Canadians out of work. 

“The Bank of Canada Governor is bound and determined to reach the two percent target for inflation, knowing full well it would cause a rise in unemployment, leaving workers across Canada struggling to pay for basic necessities for many years to come,” said Bruske. “The Governor says he knows Canadians are struggling and feeling the pain of inflation and the strain of increased interest rates. But policy makers, including Governor Macklem, must remember that their decisions have serious consequences for real people who risk losing their homes because they can’t make their skyrocketing mortgage payments. This is not a theoretical debate about monetary policy,” added Bruske. 

Adding to this, workers and their families are continuously seeing food and housing prices rise while their wages are still lagging behind inflation. Canadians don’t need to see their paycheques stretched even thinner—they need the government to play a role in helping families through this cost-of-living crisis.

Canada’s unions are urging the Bank and the Government of Canada to focus on the ongoing affordability crisis. This should start with reforming the outdated EI program and concrete actions targeting excess profits and corporate price mark-ups.   

“We hope that in the new year, Parliamentarians will act urgently to make profiteering corporations pay their fair share while addressing the problem of concentrated corporate power that is allowing companies to raise prices as much as they want,” said Bruske. “Investing that money back in programs like pharmacare, child care, and long-term care will help alleviate some of the costs families face, ultimately helping reduce the impacts of inflation,” added Bruske. 

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The post As we head into the holidays, Canadians are struggling after being hammered by aggressive interest rate hikes appeared first on Canadian Labour Congress.

OTTAWA –– Canada’s inflation rate held at 6.9 per cent in October, despite the Bank of Canada’s aggressive interest rate increases, while workers across Canada continue to see their cost of living rise. 

“To have the Bank of Canada Governor tell workers that unemployment needs to rise in the name of slowing inflation when these interest rate increases aren’t doing what he says they will, is a step too far,” said Bea Bruske, President of the Canadian Labour Congress. ‘’Big corporations are cashing in all-time high profits while Canadians face the worst food retail inflation in four decades with grocery prices jumping 11.4 per cent.’’ 

In a risk scenario released by the Parliament Budget Officer on November 9, modelling shows that increasing interest rates may not move inflation for years. The Bank of Canada’s single-minded pursuit of the inflation target is not the only way, we have proof of that today. It doesn’t make sense to rely on decades-old monetary policy to solve today’s economic challenges.

Since inflation first broke through the Bank of Canada in March 2021, the average hourly wages have continuously lagged behind price inflation. Adding to this is the increasing inequality between workers and corporations, affecting the most vulnerable. Corporate profits have reached their highest-ever share of GDP while workers’ share has systematically decreased.

Canada’s unions are urging Parliament to act now and to make profiteering corporations pay their fair share – and invest that money in helping struggling families. We need investments in programs like pharmacare, child care and long-term care, to alleviate some of the costs families face, ultimately helping reduce the impacts of inflation.

“People in Canada need the government to address the real causes of inflation and offer fiscal, labour market and social policy measures that will blunt the impact on vulnerable families,” said Bruske. “Workers drive this economy, we need to put the wellbeing of people at the centre of any policy planning and we need tax reform to ensure these big businesses are paying their fair share.” 

A report released by the Canadian Labour Congress and Centre for Future Work proposed policy alternatives to rate hikes, policies that put people at the heart of Canada’s monetary and fiscal policies. The report also explains the shortcomings of old-school economic theories, outlines the real impact of a recession on people and proposes. A copy of the report can be downloaded here.

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OTTAWA –– Today’s decision by the Bank of Canada to further raise interest rates will have devastating effects on the working people who drive our economy. 

“With corporate profits at an all-time high, workers and their families are still being forced to bear the burden of the Bank’s singular focus on driving down inflation with aggressive rate hikes,” said Bea Bruske, President of the Canadian Labour Congress. “The Bank of Canada is determined to push the economy into a recession, no matter the impact on individual Canadians who could lose their jobs, their homes and their quality of life.”

Rising interest rates make debt more expensive at a time when workers across the country are struggling from paycheque to paycheque. An unnecessary recession would hit precarious and low-wage workers, in particular women, Indigenous, racialized, and recent immigrant workers the hardest. 

“Our economy is powered by workers. Without them contributing to the economy, this country will be in dire straits,” said Bruske. “We need an open and transparent discussion of our country’s monetary policy, the best ways to fight inflation avoiding a recession – without causing widespread harm to workers and families

A report released last week by the Canadian Labour Congress and Centre for Future Work proposed policy alternatives to rate hikes. The report explains the shortcomings of the Bank of Canada’s interest rate hikes and explores the economic costs of a recession. 

The report also demonstrates the increasing inequality between workers and corporations. Business profits have reached their highest-ever share of GDP while workers’ share of GDP has decreased since 2019. 

“Governments cannot continue to stand by while workers are asked to pay the price of an inflation crisis they did not create, while their share of national income has fallen drastically,” said Bruske.

Canada’s unions are calling on the Bank of Canada to pause interest rate hikes until the impact of previous policy interventions is clear. In addition, all levels of government must take measures to address and ameliorate the true causes of current inflation, protect Canadians against its effects, and safeguard jobs and incomes.

A copy of the report can be downloaded here. 

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OTTAWA – A new economic report outlining the risks of the Bank of Canada’s single-minded pursuit of Canada’s inflation target through higher interest rates was released today by the Canadian Labour Congress (CLC) and the Centre for Future Work.

The report, “A Cure Worse than the Disease? Toward a More Balanced Understanding of Inflation and What to Do About It”, explains the shortcomings of the Bank of Canada’s interest rate hikes and explores the economic costs of a recession. The paper concludes by proposing policy alternatives for the Bank of Canada and the government to take in response to high inflation.

“We appear to be using a decades-old monetary policy textbook to solve 2022’s economic crisis. The Bank of Canada has already raised rates five times this year. No G7 country has raised them faster or further,” said Bea Bruske, President of the CLC. “Moving stubbornly ahead with even more hikes, before gauging the full effects of measures already taken, risks a damaging recession that would make things much worse. We need a pause to save Canadian jobs.”

The report, authored by Centre for Future Work Director Jim Stanford, takes on bad-faith narratives around the causes of inflation, summarizes the current economic challenges facing Canadian policy makers and looks at the real toll a recession would take on workers and families.

“A recession would mean higher unemployment, lost incomes, reduced output, larger deficits, wasted capacity and destroyed lives,” explained Jim Stanford, Director of the Centre for Future Work. “The current approach of monetary austerity simply doesn’t account for the economic challenges we face today. Instead of throwing the economy into a dangerous recession just to prove we’re tough on inflation, we should take a more open-minded approach and respond with measures targeted to the real causes of today’s inflation crisis.”

Bruske added that governments also have critical roles to play in helping to mitigate the inflation crisis’ impact on people and addressing its real causes, including supply disruptions, a global energy price shock and companies raising prices to what the market can bear.

“A policy-induced recession now will make things even worse, with precarious and low-wage workers – in particular women, Indigenous, racialized, recent immigrant workers – hit the hardest,” warned Bruske. “But government can help through fiscal, labour market, and social policy measures that blunt the impact on vulnerable families.”

“Let’s embrace alternative approaches that put the wellbeing of people at the heart of our nation’s monetary and fiscal policies,” concluded Bruske.

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Download a copy of the report here.

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OTTAWA––As Canadian families struggle to afford their grocery bill and as profits for grocery chains grow, Canada’s unions are calling on governments to take action on greedflation and the role it has played fuelling the ongoing inflation crisis.

“Rising prices on family essentials is making life so difficult for families today. But it’s not a new problem. Food price inflation has led general inflation for decades, with the average grocery bill rising an astounding 70% in the past twenty years,” said CLC President Bea Bruske. “At the root of this problem is corporate concentration. The few companies that control much of the Canadian market have taken advantage – leading to record profits.”

Bruske noted how two companies, Cargill and JBS Foods, slaughter 95% of Canadian cattle. Another two companies, Weston Bakeries and Canada Bread, make up 80% of our nation’s bread market. Meanwhile, Loblaws, Sobeys, Metro, Walmart, and Costco hold a combined almost 80% of Canada’s grocery-market sales.

“Canada has one of the most concentrated food systems in the world. This means food corporations have the power to raise prices and extract huge profits,” said Bruske. “The government must step in, determine the role corporate concentration and pandemic profiteering is having on rising food prices, and take strong and direct action to address the problem.”

Bruske added that this can start by supporting the NDP’s motion that will be tabled at the Standing Committee on Agriculture and Agri-Food calling for a study on profit-driven inflation in the grocery sector and examining record profits of large grocery chains’ CEOs while employees’ wages are stagnant and the cost of groceries keeps rising.

“We urge the government to work on policies that ensure workers and their families are not made to pay for an inflation crisis they did not create,” concluded Bruske. “It’s time greedy companies that are driving up prices and earning huge profits are made to pay their fair share.”

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“Canada’s unions were pleased to have the opportunity to meet with the Governor and Deputy Governors from the Bank of Canada and brief them on the realities facing workers and their families today.

“While we understand and respect the Bank of Canada’s mandate to independently set monetary policy, we remain deeply concerned about the Bank’s preoccupation with encouraging companies to push down wages, at a time when so many workers struggle to make ends meet. We believe this approach is not consistent with changes to the Bank’s mandate that was to take the labour market and the goal of maximum sustainable employment into account when establishing monetary policies. A strong labour market and Canada’s low unemployment rate needs to be prioritized and preserved. By continuing to press for lower wages, the Bank risks overstepping their role of communicating policy and instead takes on the role of business consultant.

“We raised concerns about the Bank’s rapid monetary tightening pushing our economy into a recession, with potentially devastating impacts on everyday people. A recession would mean thousands of Canadians thrown out of work and downward pressure on wages that are already lagging well behind inflation. Mortgage and loan defaults could skyrocket. We would see substantial damage to people’s quality of life and risk long-lasting economic harm for workers and their families.

“It is critical to remember that our economy is not just a series of data points on a line graph, our economy is driven by working people. Families of all shapes and sizes, in communities large and small. Should our nation’s monetary policy decisions trigger an unnecessary recession we know that precarious and low-wage workers, in particular women, Indigenous, racialized, recent immigrant workers, are hit the hardest. Reducing consumer confidence with policies that target the welfare and wellbeing of the most vulnerable is not the pathway to the economy we want to build. When workers prosper, our economy grows and strengthens.

“The prudent thing to do right now would be to slow down interventions designed to slam the brakes on Canada’s economy. The Bank should hold off on further interest rate hikes until we can see the result of the sharp policy actions already undertaken. The economy is already starting to cool, as we have seen with contractions in sectors like real estate.

“We must ensure that the medicine is not worse than the disease.

“It is the Government of Canada that is ultimately responsible for setting our nation’s fiscal policy. We urge the government, as it has through its recent agreement with the NDP to provide targeted inflation relief, to adopt policies that ensure workers and their families are not made to pay for an inflation crisis they did not create. In this regard, the lack of government action to crack down on price gouging, greedflation and making corporate profiteers pay their fair share is of particular concern.

“We are also worried about how some Conservative politicians use overblown rhetoric around how Canadians are suffering while suggesting the way forward is to actually cut government help for families struggling with an affordability crisis. While this approach is consistent with the Conservative Party’s past record of cutting health care and other services people rely on, cuts like this today would make life substantially harder for thousands of working families.”

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The post Statement by Bea Bruske: We must work to avoid a recession that would put many working families at risk appeared first on Canadian Labour Congress.

OTTAWA – As Parliament reconvenes this week, Canada’s unions are urging Members of Parliament to put aside glib rhetoric and work together to provide relief for those who need it most amid the ongoing affordability crisis. Today’s inflation numbers showed that while CPI has begun to level off, grocery prices continue to increase at rates not seen in over four decades, while workers’ wages lag behind.

‘’Everyday necessities like food, fuel and housing eat away at more and more of workers’ hard-earned paycheques. Meanwhile, large corporations see their profits soar while their employees’ wages lag behind. Canada’s affordability crisis has been made even worse by rich corporations cashing in at the expense of struggling families,” said Bea Bruske, President of the Canadian Labour Congress “MPs have an opportunity when Parliament reconvenes to help struggling families and make these profitable corporations finally pay their fair share.”

Bruske added that Canada’s unions welcome recent cooperation between New Democrats and the Liberal government to provide targeted help and put money back into the pockets of Canadians.

“This is a prime example of how democracy should work, and we need more of it. Dental care for kids, doubling the GST rebate, making housing more affordable. Politicians finding common ground and getting targeted help to people who really need it,” continued Bruske. “We really have to question those opposed to this collaborative approach. How can Conservatives like Pierre Poilievre talk so loudly about the challenges families face and then oppose this concrete help for those who need it most?”

Bruske added that with some of our most essential workers are being hit the hardest, Canada’s unions recently launched a campaign calling for increased investments in care services and improved working conditions for care workers.

“We need our elected representatives from across the political spectrum to recognize that we will all need care at some point. Care work is essential and care workers must be properly supported,” concluded Bruske. “With a crisis facing public health care and the chronic underfunding of Canada’s care economy, addressing the care crisis must be a priority for MPs.”

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The post Politicians must put aside the rhetoric and fix the affordability crisis appeared first on Canadian Labour Congress.

OTTAWA –– Canada’s unions welcomed new relief announced today to help families struggling with rising prices and congratulated the government for bringing forward measures to make life more affordable for everyday Canadians. 

“Moving forward on rental and dental relief is essential and will help to ease the affordability crisis being faced by families today. The rising cost of housing and out-of-pocket dental care has put many families under water,” said Bea Bruske, President of the Canadian Labour Congress. “Smart, targeted policies can help the most vulnerable families make it through.”  

The government announced that it will double the GST tax credit for six months, it will offer time-limited and income-tested support to make housing more affordable, and provide immediate aid to help with the costs of dental care for families with children under 12 years of age. The new supports target low- and modest-income families, where help is needed most. The government also reiterated its commitment today to phase in a dental care plan for seniors, people with disabilities and children under 18 years.

“Canadians are now facing enormous challenges. It is critical MPs come together to make this minority Parliament work,” said Bruske. “New Democrats have proposed policies and ramped up pressure on this government to act. We’re thankful the Liberals have answered this call.” 

Bruske added that Canada’s unions are looking to all Parliamentarians to work with urgency to deliver targeted help to those that need it most. 

“We urge MPs from all parties to quickly get down to work on a recovery that puts people first,” concluded Bruske. “We need to see more of this kind of smart policy cooperation in Parliament.” 

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The post Canada’s unions welcome inflation relief appeared first on Canadian Labour Congress.

OTTAWA – Canada’s unions are shining a spotlight on how the Conservative Party is missing in action when it comes to standing up for workers who are seeing their buying power shrink as their wages rise at half the rate of inflation.

“Workers are worried about how the rising costs of groceries, gas and family essentials are eating into their paycheques more and more each month. Conservatives love to talk about inflation yet are silent on how corporate greed is fuelling skyrocketing prices or how workers’ wages are falling behind,” said Bea Bruske, President of the Canadian Labour Congress (CLC). “All we hear from these leadership candidates is the same low-wage austerity playbook we have seen for decades from Conservatives and their Bay St. buddies.”

Evidence shows that continued government spending to help Canadians through these difficult times and wages aren’t what is driving up inflation, instead it is global events disrupting supply chains, pandemic profiteers, and the hollowing out of our manufacturing driving up the cost of living.

“Fair wages, good jobs and investing in our infrastructure and supply chains are all vital parts of the solution. This will help Canadians pay for family essentials and strengthen our ability to withstand international instability,” continued Bruske. “Yet what we hear from the Conservative Party and the candidates competing to lead them is scaremongering about government spending.”

Bruske added that if Conservatives on the leadership campaign trail want to talk about government spending cuts, they must be honest about what services and help for people they are planning to cut.

“Conservative candidates are attacking the Bank of Canada, talking about ending supply management, and floating bizarre suggestions around crypto currencies, while loudly condemning public spending,” concluded Bruske. “Yet they won’t say what they plan to cut. Conservatives must now level with Canadians. Are they planning to cut health care, employment insurance, and other vital services people depend on, just like last time they were in government?”

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“Conservatives keep pushing the same playbook, time and time again. You can’t solve today’s crisis with policy from the inflation struggles of the 1990’s,” said Bruske. “Rate hikes, austerity policies and government cuts to services families rely on is not going to solve supply chain disruptions or the aftereffects of the pandemic economic slowdown.”

Higher interest rates and lower investment in people won’t help lower energy prices or bring down the costs of groceries, two of the biggest drivers of today’s inflation numbers.

“Conservative economists and right-wing columnists are suffering from magical thinking,” said Bruske. “You can’t keep a steady drumbeat of tightening credit and cutting help for people without slowing an already uneven recovery, generating insolvencies, and above all, raising workers’ level of insecurity.”

Immediate relief for families can be achieved through quick action on affordable housing, child care and pharmacare to bring drug costs down.

“On a day when Loblaws beat expectations and reported even higher profits it baffles me why Canada is still dragging its heels on a wealth tax to make pandemic profiteers pay their fair share,” concluded Bruske. “Now more than ever we need a strong social safety net and investments in the programs so many Canadians depend on, including universal child care, pharmacare, affordable housing and job-training programs to help workers transition to low-carbon and green jobs.”

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Canada’s unions are looking to parliament’s return next week for measures to make life more affordable, including investments to make housing more affordable, immediate implementation of pharmacare to lower the price of medicines, and agreements with every province and territory to bring down the costs of child care.

“The cost of living is skyrocketing and workers and their families are feeling the brunt of it,” said Bea Bruske, President of the Canadian Labour Congress. “While some companies are making gigantic pandemic profits – yet now talking about passing on higher costs to everyday people – elected officials must stay focussed on helping working people and their families who are the ones suffering the most.”

Many workers face minimum wages that have fallen far behind a living wage. While others are suffering under legislated wage freezes or caps – including in Alberta, Ontario and Manitoba – where low single-digit wage increases combined with inflation surging over 4% translates into lower real wages for workers.

“Governments must immediately raise minimum wages to a living wage and rescind unfair wage freezes and caps. Having what amounts to legislated pay cuts imposed on so many workers is meanspirited,” said Bruske.

“The fact is, we do not know how long this inflation surge will last or how bumpy the road to economic recovery will be. Cleary the answer isn’t slashing taxes for the wealthy, as Conservatives always do. We need our governments acting as leaders in creating good jobs with fair wages, real benefits and better working conditions.”

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