The Rocket

Likely a mistake but I wish you luck.

What is utter bullshit is you thinking a company like Loblaw can be hit with $150 million in increased wage expenses and that they wouldn’t make cuts to offset it. You can thank the Liberals for these job losses

Yes - price increases to every Ontario consumer also known as inflation. Thanks Auntie Wynne. I know you haven’t listened to a lot of company earnings calls or read thousands of research reports. But news flash - companies always spin the truth to fit their narrative.

Did you read the comments? Consequences of min wage hike - 500 lost jobs and higher prices.

Oh I understand how it works. Trying to get you above a remedial level of financial literacy. Who do you think it is? One of the security analysts that cover Loblaw. I can assure you it isn’t fake, it is the real world.

Yes they are. Execs, management etc. Read and learn. According to a Toronto Star article published earlier today, Loblaw will be cutting 500 corporate jobs, including executives, management, and employees that support the retail stores at the corporate level. The layoffs will have no impact on hourly in-store roles, and as a result there should not be a service level impact on consumers. We spoke to Loblaw and confirmed the story. • While the company stated that the layoffs were not related to any single factor, we believe the primary purpose of the layoffs is to mitigate the impact of the upcoming increases in the Ontario minimum wage (the first major increase is in January 2018). • We previously stated here that we believed the Ontario minimum wage increase in 2018 would have a $150 million pre-tax impact on Loblaw (the company subsequently disclosed the estimated impact from the Ontario and Alberta minimum wage increases to be $190 million in 2018). However, we believe that roughly 50% of that impact could be passed on to consumers through retail price increases, leaving a net pre-tax impact of about $75-95 million. We estimate that the announced layoffs could save Loblaw about $75 million per year on a pre-tax basis. • We believe the company intends for the savings from the announced layoffs to fall to the bottom line, as opposed to being reinvested in the business. As a result, we believe Loblaw will largely be able to mitigate the impact of the increase in the Ontario minimum wage in 2018, through the combination of the savings from the announced layoffs and through price increases at the retail level. • Due to concerns over the upcoming minimum wage increases and Amazon's acquisition of Whole Foods, Loblaw has lost about one full multiple point in valuation on an EV/EBITDAR

How did they get their money?

More misrepresentation from you. My fortunes? WTF. I’m just a middle class guy - ain’t no fortunes here. And what I end up with won’t change the fact my kids will have to work for what they want. It won’t be given to them. Christ - my wife wrote a 2 page contract that my son had to agree to and sign before he could play rep hockey. If he drops the ball on school, chores or his behaviour he’s done I was never a Rob Ford fan. The guy was a clown.

Lucky sperm club.

No. And what does “after the shareholders are paid” mean? The job cuts in head office are not min wage workers. They are being cut to offset the extra cost of the min wage increase. The 500 job cuts are supposed to save them $75 million. So on average their salary/benefits are $150k each.

Can’t imagine how much pot Fail has smoked listening to the Hip.

Margins of 7% - so juicy. Not. Min wage increase wipes out almost 30% of their profits. But Fail expects them to eat it.

Unless the Corp wants it closed or maybe the Corp wants a new fancy store/format. Which means the “dealer” gets to go to a bank and borrow millions of $ to build out and stock a new store. Then work harder for less $ to pay it back.

I have an idea of how they are “handed” out. And Canadian Tire doesn’t have “franchises” - they have dealers. Both them and No Frills can have their stores yanked out from them for non performance. Big difference in the numbers from a well run or poorly run store. CTC guys usually start in less desirable locations and are given the opportunity to move to stores with more profit potential.

Sure they didn’t. What they didn’t need was an additional $150 million in expenses either. Good for them. Both are a great way to make $ if run properly. Lots of hard work and risk them though.

The people being fired aren’t min wage workers. The cost savings from the firings will go to pay the increased cost of the min wage workers. Did you just expect them to take the extra $150 million in wage costs up the ass?

And companies will find a way to deal with the increased costs. The increase in min wage is going to cost Loblaw $150 million. These 500 people are losing their jobs as a direct result of cost cutting to help offset a part of that. Right/wrong - doesn’t matter. It’s a consequence of the Increased cost to the business. Higher prices for all of us are on the way too.

Loblaw announces the elimination of 500 jobs in their head office. The saving will be used to offset the minimum wage hike cost in Ontario. Thanks Auntie Wynne.

If the mutual fund investor goes around the internet pretending to be an anti capitalist/socialist then he'd be a hypocrite and you'd have a point.

So you can lose wars to guys that wipe their ass with their left hand and live in mud huts?

The Teamsters is a pretty powerful and corrupt union. Has to be difficult for a true conservative to swallow their pride and pay the dues and accept their benefits. Well - he's and his kind have gotten you lots of raises and benefits. It's kinda rude to ignore them. I'm much more like Will without the smarts.

Tell me what the Union newsletter said about the affects of capital repatriation on the EPS growth of the S&P 500.

It's not just my opinion.

Our plan certainly ain't perfect and never claimed it was. But what it is is Universal where every citizen has care and no one is left uncovered or bankrupted. Just like you and your union brothers - all for one and one for all.

I get your anger. But your system is a fucking disaster and every American should be demanding better.