CESSCO locks out employees: CESSCO unionized wage rates ranged from $35.97 an hour to $40.09 CAD, the problem with CERB/Universal Basic Income has already begun – July 3, 2020,
So, the Canadian private sector cash flow problem has officially begun and I suspect it will only get worse in the years ahead. What both Donald Trump and Justin Trudeau have both done with these free cash giveaways is they’ve created an inflation problem that’s only just begun. Now, what separated America from Canada is that America has the world’s reserve currency, and President Donald Trump has cut a lot of regulations to businesses.
In Canada, things are different, Justin Trudeau hasn’t backed away from a carbon tax. Now, I’ll be honest, being that I’m not personally invested in CESSCO I’m not entirely sure how their business is structured, I’m not entirely sure if quite possibly they’re in Canada for the lower loonie and their main customer is the United States of America, at the time of the publication of this blog post, there’s no information I can confirm about CESSCO, they don’t appear to be a public company and although I suspect their main customer is in the United States, I can’t confirm it.
But if they’re selling their product to the United States, based on what I know, they’re taking advantage of Canada’s lower taxes and our artificially low loonie. What this equates to is they probably don’t have any more money to pay their employees, based on the destruction Justin Trudeau caused to our economy.
I worked as a sheet metal fabricator in Ontario and the company I worked for at the time was getting its ass kicked by China, I got pay increases and the truth is I would have gotten more pay increases had it not been for the Union, which was rewarding and protecting the lazier employees in the company
Because I had a little bit of business knowledge, I did everything behind the unions back, during that time I also worked for a shipping/receiving company which was also unionized, but I was never looking for job security I wanted to make enough money to start my own business and get out, in my opinion, the employees at CESSCO have a right to complain about their pay.
$35.97 to $40.09 CAD per hour was a lot of money in the 1990s prior to the CMHC getting involved in mortgage insurance, but in this modern era where the cost of living continues to rise after a person has been income taxed and then hit with other sales taxes. $40 an hour is only about $80,000 per year PRE-TAXED! after-tax as an employee you’d be lucky to clear $40,000.
Because the government is so big in Canada after your $80K gets sliced to $40K after additional taxes you might get around $15K to play around with and that’s if you have no children. When you’re doing labor-intensive work, I’ve been there I know, you’ll want to take care of yourself and find a hobby, so in the end, you end up with little to nothing in fact you could find yourself in debt on $80K per year salary.
Now, if the Canadian government were smaller $80K is a whole lot of money, but our government is huge and the socialists amongst us are talking about making CERB a Universal basic income, well, Universal basic income is financed by the tax dollars of the people who work at places like CESSCO.
So as I’ve stated in other posts, a big government has a way of creeping up on you. CESSCO locked out their employees, if this lockout is permanent, those income tax dollars derived from CESSCO no longer exist, and all of a sudden the public sector just got a little bigger.
When people are getting paid by the government to do nothing, the private sector gets hit the hardest. I’m against PUBLIC sector unions but I personally believe Private Sector unions have a right to exist. I actually think the employees have a legitimate grievance, however I also comprehend that CESSCO has to make a profit to keep it’s doors open.
I personally would not hold onto a stock that I know is going to lose money, why should the owners of CESSCO lose money to finance their employees’ demands? I think Alberta has a carbon tax, I brought up America possibly being a CESSCO buyer because there is no carbon tax in the United States, so if CESSCO is competing with American companies and all of a sudden their costs go up via Justin Trudeau’s carbon tax and their employees demanding a pay raise well you start to see what I mean when I write about Canada’s coming cashflow problems.
A market economy needs room to deflate, the carbon tax and other Trudeau created regulations equate to permanent and guaranteed inflation as well as another extortion on the private sector. Pay this carbon tax or else, meet these government regulations or else, pay your workers this wage or else, this is not only happening to CESSCO it’s happening all over Canada and although most of Alberta didn’t vote for Trudeau his destruction of the Canadian economy is felt everywhere.
Just being honest I’m neutral on the story below, I understand CESSCO and I understand the employees, this is the problem that Leftism, new taxes, welfare, and Universal basic income create, one day the cash flow statements doesn’t make any sense!
CESSCO locks out employees after negotiations stall | EdmontonJournal.com
Interesting times ahead!