Speaker Profile: Karl Baldauf

October 20, 2017 | Blog, In The News

2017 Niagara Economic Summit

Grimsby native Karl Baldauf joined the Ontario Chamber of Commerce in May 2015 as Vice President of Policy and Government Relations. He holds over a decade of experience working in advocacy and communications in the public and private sectors, as well as in politics and with stakeholder organizations.

At the 2017 Niagara Economic Summit, Karl will bring an update on all the issues that the OCC, the GNCC, and the Ontario Chamber network have been working on over the last year, including such issues as minimum wage and Bill 148, energy prices and hydro rates, and cap-and-trade.

Karl has worked for two provincial cabinet ministers, Ontario’s leader of the opposition, and most recently with Canada’s largest communications consultancy. Throughout his career, he has worked with the province’s leading officials in politics and at the senior most executive levels to craft policy that supports Ontario’s business community.

Karl is the recipient of national and international scholarships and holds an M.A. (Distinction) in Political Communications from the University of London, Goldsmith’s College. He holds a B.A. (Hons.) from the University of Toronto in Political Science and Semiotic Communications. Karl has also studied and worked in Amsterdam and Seoul.

To hear Karl speak at the Niagara Economic Summit, visit https://gncc.ca/economicsummit/

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Chamber This Week – October 13, 2017

October 13, 2017 | Non-Advocacy

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Chamber This Week – October 6, 2017

October 6, 2017 | Non-Advocacy

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Extending Minimum Wage Implementation Will Reduce Risk of Job Losses by 74%: Economic Analysis

September 28, 2017 | Media Releases

Final analysis of Bill 148 reveals $12 billion economic problem that the Ontario Government must resolve

Today, the Greater Niagara Chamber of Commerce, in partnership with the Ontario Chamber of Commerce (OCC) and the Keep Ontario Working (KOW) Coalition released two major reports that broadly capture the challenges associated with Bill 148 and the concerns of the employer community. The first report is the final economic impact analysis of Bill 148 by the Canadian Centre for Economic Analysis’ (CANCEA), which was peer-reviewed by Professor Morley Gunderson of the University of Toronto.

CANCEA’s analysis reveals that if Government were to do nothing other than implement the minimum wage increase over five years instead of in the next 15 months, jobs at risk would decrease by 74 per cent in the first two years.

The analysis also indicates that while the proposed changes will see $11 billion in wage stimulus flow into the economy in the next two years, a remaining $12 billion problem exists which will lead to jobs lost, added costs, and general damage to the Ontario economy.

“The final report from CANCEA confirms the other alarming analyses from the Financial Accountability Office of Ontario and from TD – there will be significant negative effects in job losses and costs to business from this legislation,” said Mishka Balsom, President & CEO of the GNCC. “We are calling for the government to study these impacts, to implement a slower roll-out and to introduce offsets to help businesses adjust and hopefully avoid these dire consequences.”

The Keep Ontario Working Coalition and CANCEA released interim findings of this Analysis in August, ahead of final amendments being submitted for first reading of the legislation. To date, CANCEA’s work remains the only peer-reviewed economic analysis of Bill 148. In having been reviewed by Morley Gunderson, the work has benefited from one of the leading economists in Canada, who the Ontario Government has turned to on multiple occasions, such as during the Changing Workplaces Review which became the foundation for Bill 148.

“Our risk assessment of the Act is that there is more risk than reward for Ontarians despite the stated goal of the legislation in helping Ontario’s more vulnerable and the Ontario economy,” Paul Smetanin, President of CANCEA. “Given the risk of consolidating income and wealth inequality, putting about 185,000 people out of work, and the risks of small/medium businesses being exposed to their larger competitors, the unintended consequences are significant.”

In addition, the Keep Ontario Working coalition released a second report, The Flip Side of “Fair”, which showcases testimonials from employers and outline how they will be impacted by the legislation. The report gives a voice to those businesses who have felt excluded from the committee process and policy discussion around this legislation. The testimonials all share a common theme, that the minimum wage increase and labour reforms will have serious consequences for their business and their communities.

The KOW Coalition will continue to advocate that the government:

  1. Consider the risks outlined in this economic impact analysis while also conducting their own analysis;
  2. Implement broad amendments to Bill 148; and,
  3. Slow down implementation to avoid unintended consequences and protect Ontario’s jobs, communities and our most vulnerable.

The Keep Ontario Working Coalition (KOW) is a broad-spectrum group of business sector representatives concerned with sound public policy to help produce jobs and grow Ontario. For more information please visitwww.keepontarioworking.ca.

Members include:

Association of Canadian Search, Employment and Staffing Services (ACSESS)
Canadian Franchise Association (CFA)
Canadian Federation of Independent Grocers
Food & Consumer Products of Canada (FCPC)
Food and Beverage Ontario (FBO)
National Association of Canada Consulting Businesses (NACCB Canada)
Ontario Restaurant, Hotel and Motel Association (ORHMA)
Ontario Chamber of Commerce (OCC)
Ontario Federation of Agriculture (OFA)
Ontario Forest Industries Association (OFIA)
Ontario Home Builders’ Association (OHBA)
Ontario Real Estate Association (OREA)
Restaurants Canada
Retail Council of Canada (RCC)
Tourism Industry Association of Ontario (TIAO) 

Media Contact

For more information, please contact:
Mishka Balsom, GNCC President & CEO
Mishka@gncc.ca or 905-684-2361

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Chamber This Week – September 15, 2017

September 15, 2017 | Non-Advocacy

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GNCC Presents Bill 148 Brief with Karl Baldauf

September 15, 2017 | Advocacy, Blog, Provincial Advocacy

The GNCC welcomed Ontario Chamber of Commerce Vice-President Karl Baldauf back to Niagara on September 15 in the latest Niagara Business Leadership Series breakfast. Bill 148, the Fair Workplaces, Better Jobs Act (2017), introduces sweeping legislation that will transform Ontario’s workplaces and employer-employee relationships, including:

  • Increases to vacation pay and personal emergency leave
  • Card-based union certification
  • Union access to employee lists
  • Equal pay for temporary workers
  • A phased increase to a $15/hr minimum wage by January 1, 2019 – the most contentiously debated change

Karl presented the results of an economic impact analysis which the OCC has commissioned. The report found:

  • A $23 billion hit to business, minus an $11 billion stimulative impact from increased consumer spending, would result in a $12 problem for the Ontario economy
  • The rate of inflation would increase by 50 per cent
  • About 185,000 jobs in the next two years would be put at risk, including 30,000 jobs for under-25s, and 96,000 for women

The sectors facing the highest risks to jobs include:

  • Manufacturing
  • Accommodation and food service
  • Retail
  • Wholesale trade

Karl also detailed the previous efforts of the Chamber network to head off or ameliorate this legislation for businesses, and their continuing advocacy work.

Businesses who are concerned about this legislation are encouraged to visit the KeepOntarioWorking.ca website, send letters or phone their local MPP to inform them of their thoughts, share the impacts of Bill 148 with their families, friends, co-workers and customers, and to think about offsets which the government could offer that would help them remain competitive and successful, and suggest those to the government.

The full presentation can be read here. For more information, contact Hugo Chesshire at hugo@gncc.ca or call 905-684-2361 ext. 224

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Chamber This Week – September 8, 2017

September 8, 2017 | Non-Advocacy

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BALSOM: Federal tax proposals require dialogue

September 7, 2017 | In The News

Canada’s Finance Minister Bill Morneau has released a plan to end what he calls “unfair tax advantages.”

He says that his proposed tax changes, the most radical in 50 years, are about “fairness.” Some Niagara businesses see it differently.

Imagine two individuals, both earning $80,000 per year. One has a comfortable salary with four weeks’ vacation. He has a generous pension and he knows he’ll get a raise next year. The other had to invest $250,000 of her own money to start a business. She needed to pledge her personal assets, her house and car as collateral for an operating loan. She has five employees whose livelihoods depend on her, and if nobody wants her services next month, she doesn’t earn a cent.

Who would begrudge a business owner the ability to invest her profits and earn a decent return after paying corporate income taxes, especially when her savings may be needed to sustain her business through a dry spell? After all, she’ll be taxed at the same personal rate as everyone else when she withdraws the money from her business.

Ottawa says it’s unfair to defer income like that, and they are proposing to impose a high tax rate on profits not reinvested in the business.

The Finance department has also coined a new term, income “sprinkling.” It evokes an image of sums of money given to family members. The reality could not be further from the truth.

There is hardly a farm or restaurant in Niagara that doesn’t have family members working there. These farms and businesses can now expect the Canada Revenue Agency to assess their family members’ labour contributions to determine the “reasonableness” of salary and dividend income. In a small business, it’s often the spouse who answers the phone, helps write marketing material, meets customers, pays bills, solves problems, cleans up and does any of the 50 other things that are needed. What is the appropriate salary or dividend such an indispensable person deserves?

Finance expects to pull in an extra $250 million by imposing higher tax rates on “unreasonable” payments in family businesses. That means that CRA will have to tax a billion dollars of income and audit hundreds of thousands of businesses. This potential administrative nightmare for government and business owners alike, would divert valuable resources away from things that really matter – like economic growth.

Business owners agree that loopholes in the tax system need to be closed and they want to see a fair tax system. In this case, we urge the government to collaborate with key stakeholders on this tax proposal. When the government does, they will have the support of business in designing measures that clamp down on tax evasion without sideswiping entrepreneurs and discouraging job growth.

There is value in having an open discussion about how Canadians are taxed and how to support business growth.

Let’s start that dialogue.

Mishka Balsom is the CEO and President of the Greater Niagara Chamber of Commerce. This column was prepared in partnership with the Canadian Chamber of Commerce. 

Original article: http://www.stcatharinesstandard.ca/2017/09/06/federal-tax-proposals-require-dialogue

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Chamber This Week – September 1, 2017

September 1, 2017 | Non-Advocacy

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