Why high grocery prices say a lot about the dysfunction in Canada’s economy

Hello, readers! Welcome back to Business Cycle – a look at what The Globe and Mail’s business columnists are talking about this week. In the latest edition, we’re talking about the effect of high grocery prices on Canada’s economy, the complaint process for air passengers and changes to Ottawa’s temporary foreign worker program.

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What high grocery prices say about the dysfunction in Canada’s economy

By David Soberman

It’s no secret: Canadians are paying a lot for groceries – whether it’s at a major supermarket chain or a discount chain. Why? In Canada, the owners of the discount chains are also owners of regular supermarkets.

University of Toronto professor David Soberman writes that this points to wider and deeper problems in our economy. Discount shoppers still pay too much, and foreign retailers have an increasingly hard time entering the Canadian market.?

"This leads to an obvious question: if Canada is such a “profitable” place to sell groceries why are foreign chains not already here and capitalizing on this opportunity? When a foreign company wishes to enter Canada, it has two entry choices. The first is to acquire an existing Canadian retailer to use as a beachhead to enter the Canadian market. The second is to build a network from scratch. Neither is easy in Canada.”

What do you think is the key to bringing down Canada’s high grocery prices? Check out the full opinion piece here.?

Government, airlines must pay for consumer advocates in complaints process

By Ken Rubin

Have you ever had a tough time navigating the bewildering maze of airline operations and regulations when seeking compensation for missed and delayed flights and more? Contributing columnist Ken Rubin says Canadian passengers need all the consumer help they can get.

He writes that the complaints process should involve advocate organizations – whose services are billed to airlines and governments. He argues that consumer groups’ representation would enable consumers to get fair compensation and guarantee the processes are more efficient and humane.

"It can help when dealing with airlines, whose tendency is to be unresponsive and secretive, to have regulations, agencies and online FAQs that provide some information and protection. But for real change, consumer power requires capable advocate organizations whose services have to be involved. That will make flying less chancy and safer and not just based on the airlines’ bottom line and on governments’ tendency to be slack and slow."

Have you ever made a passenger complaint to an airline? How did that process go? Check out the full opinion piece here.

Canada must overhaul its temporary foreign worker program. Here’s how

By The Honourable Ratna Omidvar, C.M., O.Ont

Ottawa recently announced a suite of measures to further shrink the number of temporary foreign residents in Canada, including tightening the cap on international student numbers and limiting work permits of spouses of foreign students and workers.

Senator The Honourable Ratna Omidvar, C.M., O.Ont writes that the changes don’t go far enough and a complete overhaul of the “antiquated” system is needed. She argues three changes are necessary – the creation of an independent migrant work commission, replacing employer-specific permits with sector- or region-specific permits and coordination from all levels of government on inspections.?

"These cuts represent a limited response to a complex issue, failing to grapple with the deeper challenges at play. A more comprehensive strategy is essential – one that considers the diverse needs of industries, the rights and well-being of workers and the long-term economic implications of our immigration policies. Without such an approach, we risk creating more problems than we solve."

What do you think is needed to overall Canada’s temporary foreign worker program? Check out the full opinion piece here.

More business headlines we’re following this week:?

• In Indonesia’s Sulawesi, the promise of a nickel boom comes at a cost for local farmers
• First-time homebuyers fear Ottawa’s new mortgage rules will drive up prices
• Shots fired at homes of two executives tied to waste management giant GFL

The Globe's business opinion pieces are commissioned and edited by Ethan Lou. If you would like to write in this section, please send pitches to [email protected].?

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