reaction – the 2009 provincial...

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Reaction – The 2009 Provincial Budget

Eff ectively Handling Customer Complaints

January/ February- By-the-Numbers

and much more

2 action!

action! | volume two | issue three

A Message From the President ......................................................... 3Workplace Issues Handling Customer Complaints .................................................... 4A Guide to Provincial Politics The Legislative Report ................................................................... 6Rants & Resolutions A Fish is not a Fishery .................................................................... 8By the Numbers ............................................................................. 10Member Engagement Changing the Chamber’s Structure .............................................. 12A New Entrepreneur Series Connecting with Other Business Operators ................................ 14Talking Policy Chamber meets with Prime Minster ............................................ 16Shaping Policy Chamber Continues to Push for Changes to K-12 Education ......... 17It Matters to Your Business Opportunities for Work-Sharing .................................................. 18It Matters to Your Business Energy Effi ciency and Business Effi ciency ...................................... 20Reaction The 2009 Provincial Budget ........................................................ 22

Contents

Why not consider nominating a colleague, friend or family member for a 2009 University of Regina Alumni Crowning Achievement Award.

The awards are presented in five categories: lifetime achievement, professional distinction, humanitarian contribution, service to the U of R, and young alumnus.

For more information, visit our website at www.uregina.ca/alumni/aa-aca.htm. Or contact us at (306)585-4838, toll free 1-877-779-4723 or by email, [email protected]. Nomination deadline is April 30, 2009.

Now it’s time for our stars to shine

The Saskatchewan Chamber of Commerce

Vision:Saskatchewan Business making Saskatchewan the best place to live, work and invest.

Mission:To strengthen Saskatchewan’s business community and competitive enterprise system for an improved quality of life.

action! Magazine, a publication of the Saskatchewan Chamber of Commerce.

Reproduction of any material contained in action! is permitted provided credit is given to the Saskatchewan Chamber of Commerce

Opinions expressed by contributors are their own and do not necessarily represent those of the Saskatchewan Chamber.

Editor: Kristin McKee

The Saskatchewan Chamber of Commerce 2008-2009 Executive CouncilPresident: Dale LemkeImmediate Past-President: Dave Dutchak1st Vice-President: Holly Hetherington2nd Vice President: Richard Ahenakew Treasurer: Pat PitkaStaff:Steve McLellan, CEODawn Boxall, Administrative Assistant Trevor Doroshenko, Membership CoordinatorKristin McKee, Communications CoordinatorRyan Paradis, Research CoordinatorPeter Prokopiw, Finance Coordinator

The Saskatchewan Chamber of Commerce1630- 1920 Broad Street,Regina, Saskatchewan S4P 3V2Ph: 306-352-2671Email: [email protected]

Cover Shot – Chamber President Dale Lemke, Research Coordinator Ryan Paradis, CEO Steve McLellan and Finance Committee Co-Chair Mike Dillon work on developing the Chamber’s response to the Provincial Budget.

volume 2 / issue 3 3

A Message From the President

Thank you

As another Chamber year comes to a close, so does my term as President.

In my inaugural message to the membership, I outlined the competition Saskatchewan and provincial industries were facing for labour, investments, and markets. Although in many ways, Saskatchewan, Canada and the world have changed signifi cantly since May 2008, these core challenges facing provincial businesses are ever present.

As Chamber President, I had the opportunity to lead the effort to tackle these issues head on, and I am confi dent that we have made a difference.

The developments with regard to immigration, labour mobility, and trades training funding, that have been long advocated for by the Chamber, will help strengthen the province’s labour force and our ability to grow. The Chamber’s continual efforts with regard to K-12 education will also assist Saskatchewan

in remaining a competitive and attractive place in the future.

The Saskatchewan Chamber has also been successful in securing changes that will help attract new investments to the province. The decrease in income tax, the strategic infrastructure investments planned, and the recently announced property tax rebates offer attractive features to businesses looking to expand in Saskatchewan.

I am excited about the path our province is taking and I look forward to the continued success I know the Chamber will achieve in the coming year.

Over the past year, the Saskatchewan Chamber has worked to be the best advocacy organization that it can be, and volunteers are vital to our success. We would not be able to undertake new initiatives and fulfi ll our successful advocacy role without the generosity and dedication of the business people who work with us.

Thank you to these individuals, particularly our Expert Committee Co-Chairs who have provided valuable insights and led the Chamber in so many successful advocacy efforts.

It has been an honour and a privilege to serve as President of the Saskatchewan Chamber. I know that through the work of individual business leaders and the Chamber network, we are going to create a bright and prosperous future for enterprises and people in Saskatchewan.

Saskatchewan is a great province and we are showing it now more than ever. However we can not get complacent in our success. We need to continue to strive to be the best place to live, work and invest.

Thank you again for this opportunity. I wish my successor, Holly Hetherington, all the best.

Dale LemkePresident

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4 action!

Workplace Issues

Effectively Handling Customer Complaints

Customer complaints are an inevitable part of doing business; we all have them, we all hear them and we all

work diligently to handle them.

However, customer complaints can also be costly. All of us have done it at one time or another; left a store or a service provider never to return again due to poor service.

While it is easy to view customer grievances in a negative light, if handled properly, they can provide a useful opportunity to increase customer loyalty and trust among your current and future clientele.

Here are some tips for how you can turn a customer’s less-than-satisfactory experience into a win-win situation.

Acknowledging that the customer has had a negative experience can go a long way. Customers will appreciate the fact that their grievance is understood and taken seriously. Dealing with complaints promptly demonstrates to your customers that their business is a priority.

Have a complaint policy in placeResearch has found that less than 5% of customers who experience dissatisfaction with a business will actually complain to the company. In fact, most displeased customers will simply take their business elsewhere.

While the absence of customer feedback may give the impression that the

business is doing well and keeping its clients happy, it may quietly be losing customers.

To that end, it is paramount that your business has a proper complaint system in place. Your system should encourage both positive and negative customer feedback.

Implementing and promoting a corporate culture that encourages and welcomes customer feedback ensures that you are maximizing the opportunity to resolve issues and potentially turn complainants into advocates for your business.

Maintaining a suitably-organized complaint system can also give your business a competitive edge. It leads to less customer frustration and more opportunity for repeat business and improved customer loyalty.

Find out what your complainant wants & act quicklyTo handle a complaint appropriately, fi nd out what your customer wants. He or she may be looking for a refund, return,


or clarifi cation regarding a business policy. However, in many cases, a simple, sincere apology may be the best form of resolution.

Acknowledging that the customer has had a negative experience can go a long way. Customers will appreciate the fact that their grievance is understood and taken seriously. Dealing with complaints promptly demonstrates to your customers that their business is a priority.

Use a proactive approachIn addition to dealing with customer concerns quickly, letting your client know who will be managing their complaint and each step that person will take to resolve it builds customer confi dence. Being accountable and keeping promises made to your customers will ensure your business is developing and maintaining a good reputation amongst its clients.

Documenting each step of the complaint process is also a helpful strategy – for your business, your customer and your future customers. Producing a detailed report regarding how a complaint was appropriately handled sets a precedent for future complaint management, resulting in quicker resolutions and, hopefully, a more satisfi ed customer.

While all business owners, managers and front line staff strive to provide superb customer service, at times, miscommunication and negative experiences may take place. It is up to the business to ensure it does all it can to learn about any negative experiences and to work proactively to ensure that the issue at hand is resolved.

Furthermore, identifying and dealing with the cause of an original issue reduces the likelihood of the same complaint occurring again.

A lot can be said about a company that works to please its customers, and these customers are not shy to share their experiences with your other clientele (current and prospective). Ensure that your business is doing all it can to make sure that customers only have positive experiences to pass along.

And remember: customers often forget what was said and done in the long run but they don’t forget how you made them feel.

Courtesy of the Timmons Chamber of Commerce

Proud of your effective customer service strategy? Share your success by becoming a 2009 Service ABEX Award Nominee.

Quick Tips for Addressing Customer Complaints: • Maintain an Organized Complaint System • Respond Quickly • Listen to the Customer • Keep Communication Open • Document the Complaint Process and Result • Stop Repeat Issues by Indentifying and Dealing

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6 action!

Legislative Report

A Guide to Provincial Politics

Photo courtesy of Tourism Regina

BIG WIN!!! Construction Industry Labour Relations Act AmendedThe Government of Saskatchewan has introduced amendments to The Construction Industry Labour Relations Act, 1992 (CILRA). Employers will have the ability to choose the Representative Employers’ Organization (REO) that will represent them, and can operate outside an REO to negotiate a collective agreement for the duration of a project.

The amendments also introduced a provision that would allow a trade union to organize a company on a multi-trade, or “all employee” basis, as well as on a craft, or single trade basis. This provision would allow employers to deal with one union on one project. Additionally under the proposed amendments, the Labour Relations Board would have the authority to revoke a union’s certifi cation on the basis of abandonment. The Government will be engaging in consultations regarding these amendments, and the

Saskatchewan Chamber looks forward to these discussions.

Western Provinces Work on New AgreementPremier Wall recently met with BC Premier Gordon Campbell and Alberta Premier Ed Stelmach to discuss a new Western Canadian economic partnership. The partnership agreement would address co-operation in things like economic development, trade,

The Construction Industry Labour Relations Act Amendments

Saskatchewan Chamber Recommendation Actual Amendment Proposed

Unionized contractors should have the Implementedability to bargain and the ability to change their bargaining representative.

“Wall to wall” union representation Implementedshould be allowed for large projects to ensure a stable environment.

The concept of abandonment needed Partial Implementationto be defi ned so as to eliminate theunion’s right to reclaim businesses that they have ignored for over 15 years.

The Spin-off section is too broad and Not Implementedshould be left to the common employer legislation under The Trade Union Act.


crime prevention, and possibly the establishment of a voluntary pension plan for residents of the three provinces. The Opposition has criticized this new partnership as moving towards the contentious Trade, Investment and Labour Mobility Agreement (TILMA). However, Premier Wall has maintained that he would not engage in any agreements that did not address the interests of all provinces, and that includes Saskatchewan’s interests with regard to crown corporations and municipalities.

Roads Upgraded for Global Transportation Hub The provincial government has unveiled plans to upgrade and expand Pinkie Road and Dewdney Avenue in Regina to make way for continued development of the Global Transportation Hub. The upgrades to Pinkie Road and RM Grid 730 (Dewdney Ave extension) will cost an estimated $22 million. However, these upgrades are only the beginning of the long term plan to build a west bypass connecting Highways 1 and 11 that will provide the long-term transportation capacity needed for the estimated 1,400 heavy trucks per week that will move goods to and from the Global Transportation Hub.

Rate Reduction In February SaskEnergy applied for a rate reduction that would drop the price per gigajoule from $8.51 to $6.23. However, in March SaskEnergy revised its request asking for an even bigger reduction, dropping the price per gigajoule to $5.96. This reduction would translate into a $23-a-month savings for the typical residential customer.

Wall Continues to Push Carbon SequestrationSaskatchewan Premier Brad Wall was in Washington in early March working to build support for the Montana-Saskatchewan carbon sequestration project. Saskatchewan has committed $60 million to the project, and was advocating for a $100 million commitment from Washington.

The project aims to reduce greenhouse-gas emissions from one of the province’s coal-fi red electrical plants by taking the carbon dioxide produced in Saskatchewan and ship it by pipeline to Montana, where it would be stored deep underground. This project would be the fi rst large-scale carbon-capture operation in North America. Saskatchewan has also committed to a $1.4-billion refi t of one of its coal-fi red electrical plants to add carbon-capture equipment.

Highway 11 Twinning AcceleratedPrime Minister Stephen Harper and Saskatchewan Premier Brad Wall have announced a joint funding effort to speed the twinning of Highway 11 between Saskatoon and Prince Albert. Each government has announced it will contribute $62 million to move up the completion date to 2012 from 2016.

SGI Supports Driver Education for Immigrants SGI has introduced the Immigrant Driver Education Grant Program to help new immigrants receive their Saskatchewan driver’s license. Funding is available to those who have taken up permanent residency in the province and have not previously completed a certifi ed driver education course. The amount of funding an applicant will receive is determined by how much training is needed and by the total number of applications.

8 action!

&Rants Resolutions A regular column by members who not only want to Rant but also offer Resolutions.

A Fish is not a Fishery

Fisheries are a vitally important resource in Canada and are under the jurisdiction of the Federal government. However,

the provinces own the water and fi sh which comprise any fi shery, creating an overlapping framework of regulation.

Prior to the early 1990’s, the province regulated fi sheries in Saskatchewan, despite jurisdiction over fi sheries resting with the Federal government. In the early 1990’s the Chrétien government repatriated fi sheries jurisdiction back to the federal government.

Although this repatriation had the potential to improve the consistency and management of fi sheries and their

protection across Canada, a principled and practical approach to fi sheries management has not resulted.

Many industrial projects in Saskatchewan occur in remote areas and may have some impact on fi sh habitat.

In recent years, industry participants have noticed an increasing role taken by the federal Department of Fisheries and Oceans (DFO). The ability of DFO to hinder economic activity cannot be underestimated.

If DFO intervened on the basis of environmental protection, perhaps its approach could be justifi ed, but more often than not, the failure of DFO to approve projects in a timely manner has more to do with short term political considerations than environmental protection principles.

In recent years environmental groups have successfully challenged DFO in the courts on certain decisions, and the bureaucracy has not responded in a principled way. In fact, DFO appears to be largely reacting to the latest lower court decision, while ignoring established legal authority. Ultimately, the cost of projects escalate signifi cantly, but little more is achieved for environmental protection.

DFO no longer confi nes its jurisdiction to “fi sheries”, but takes jurisdiction

DFO no longer confi nes its jurisdiction to “fi sheries”, but takes jurisdiction over any water that may have fi sh in it, whether such waters may support or be connected to a viable fi shery or not…. A practical approach to environmental management would mean that resources are not wasted on sites or issues with little to no hope of ever protecting a viable fi shery.


The ability of DFO to hinder economic activity cannot be underestimated. If DFO intervened on the basis of environmental protection, perhaps its approach could be justifi ed, but more often than not, the failure of DFO to approve projects in a timely manner has more to do with short term political considerations than environmental protection principles.

over any water that may have fi sh in it, whether such waters may support or be connected to a viable fi shery or not. DFO’s expanded concept of jurisdiction is often based on the defi nition of “fi sh habitat” and its application under section 35 and “waters frequented by fi sh” and its application under section 36(3) of the Fisheries Act, which prohibits the deposit of a deleterious substance into waters frequented by fi sh.

These defi nitions are broadly framed, and when read literally and outside the context of the Federal fi sheries power under 91(12) of the Constitution Act, 1867, likely intrude on provincial jurisdiction over property and civil rights contained in 92(13).

Lower level court decisions have expanded the application of the Fisheries Act from the direct protection of commercial, recreational, and subsistence fi sheries, to the protection of the system of fi sheries, including any waters that may be connected to such fi sheries.

In current applications of the Fisheries Act, no assessment of the quality of the fi shery is made by DFO. DFO takes the position that a fi sh is a fi shery regardless of its contribution to fi sheries as a natural resource. This expanded application of fi sheries jurisdiction by DFO is not supported by the Constitution, case law or existing fi sheries policy.

The 1998 Fish Habitat Policy (the “Fisheries Policy”) is clearly no longer applied by DFO. The Fisheries Policy contains clear provisions limiting fi sheries jurisdiction and setting out DFO’s role to: “protect and increase fi sh stocks and their habitats that have either a demonstrated potential themselves to sustain

fi shing activities, or a demonstrated ecological support function for the fi sheries resources….the policy will not necessarily be applied to all places where fi sh are found in Canada, but it will be applied as required in support of fi sheries resource conservation.”

The principle of “a fi sh is not a fi shery” was followed prior to the recent movement by DFO to expand its jurisdiction. In the current regulatory environment DFO has turned this principle on its head.

The result is an environment where proponents have very little certainty about what DFO will do and the approach it will take to any given issue. This is simply not an appropriate approach to fi sheries management.

Certainty and transparency are necessary to attract investment and appropriate environmental management requires a practical approach to environmental issues. A practical approach to environmental management means that resources are not wasted on sites or issues with little to no hope of ever protecting a viable fi shery.

New industrial projects on existing or already contaminated sites should be encouraged, as these sites do not represent pristine or uncompromised

areas. DFO’s recent a “fi sh is a fi shery” approach has resulted in contaminated sites being characterized as fi sh habitat simply because a few small compromised fi sh may be in existence.

The current approach is unlikely to change without signifi cant changes to the Fisheries Act and DFO policy clearly limiting the application of the Fisheries Act and its fi sh habitat protection provisions to sustainable fi sheries. Quality assessments of fi sh are also required to ensure that DFO is properly protecting the national resource of fi sheries, and not any fi sh regardless of quality or location. Respect for provincial approvals where jurisdiction is shared is also essential and an expanded role for the province could help to avoid unnecessary duplication.

The current fi sheries framework is no longer workable and DFO and industry require clear guidance on issues relating to fi sheries-- guidance that respects the division of powers between federal and provincial authorities contained in our Constitution.

G. Rangi Jeerakathil MacPherson Leslie & Tyerman LLPSask. Chamber Environment Committee Member

10 action!

By the Numbers

January/ February 2009

A consensus has developed that Saskatchewan’s economy will slow this year so the question now turns to how deep any slowdown will be and how long it will last. Based on the most recent numbers, it looks like we may be in for a long but shallow recession.

The expected slowdown in retail sales over the Christmas season was even sharper than many expected. Seasonally adjusted, sales dropped by 6.2% from November to December. However, one month doesn’t indicate a trend and sales recovered about one half of this drop in January with a 2.9% increase from December.

EMPLOYMENT AND EARNINGSIn sharp contrast to the grim reports of layoffs in the USA and Eastern Canada, employment in Saskatchewan continued to grow in early 2009. Adjusted for normal seasonal variations, the number of people employed increased in both January and February, albeit only slowly.

The public sector, broadly defi ned to include health, education, and the crowns as well as the three levels of government, has seen the biggest increases in employment over the past year. Employment is growing the most quickly in the west central part of the province, in the Regina metropolitan area, and in the North.

POPULATIONIn the third quarter of 2008, Saskatchewan experienced a net increase of 2,064 people from interprovincial migration combined with 1,200 immigrants and a natural growth (births less deaths) of about the same amount to

generate the tenth consecutive quarterly population increase. There are now 1.02 million people living in Saskatchewan, the highest since the mid 1980s. The population is growing at an annual rate of 1.5% compared with 1.0% in 2007.


These statistics are compiled by Sask Trends Monitor from reliable data sources such as Statistics Canada. Recent data are subject to periodic retroactive revisions and should be treated with caution.

RETAIL SALESThe expected slowdown in retail sales over the Christmas season was even sharper than many expected. Seasonally adjusted, sales dropped by 6.2% from November to December. However, one month doesn’t indicate a trend and sales recovered about one half of this drop in January with a 2.9% increase

from December. Even with the slow December, sales in the fourth quarter were still 4.2% higher than in the fourth quarter of 2007. The largest year-over-year increases were in stores selling leisure products such as sporting goods, books, liquor, and music. February employment in retail trade was 63,300, up 1.6% from a year ago.

CONSTRUCTIONBoth the residential and non-residential sides of the building construction sectors have been growing strongly during the past few years and this is continuing into 2009. Adjusted for normal monthly variations, the value of residential

permits increased to more than $100 million in January. New housing starts are at very low levels so much of this activity will be related to renovations and future work. February employment in construction was 34,300, up 9.9% from a year ago.

continued on page 13

INTERNATIONAL MERCHANDISE TRADEShipments of Saskatchewan goods to other countries fell to nearly $2 billion in December and January due to lower demand, the drop in commodity prices, and a lower Canadian dollar. Imports to the province have fallen as well so net trade remained above $1 billion in January.

The USA remains our largest trading partner, buying about two thirds of our commodity exports. In spite of the slowdown south of the border, however, January exports to the USA were down by only 6% compared with a year ago. This compares with a 30% drop in the value of shipments to other countries.

CONSUMER PRICE INFLATIONLargely because of rapidly increasing shelter costs, Saskatchewan’s infl ation rate was been more than 3% over the past eighteen months compared with rates of 1% to 2% for Canada as a whole. Prices for most other goods and services were increasing or decreasing at the same rate as in other provinces.

The infl ation rate has been lower for the past three months. It was 2.6% in February, with large increases in food and shelter costs offset by declines in transportation costs generally and the price of gasoline and diesel fuel in particular. The infl ation rate is expected to continue falling in the coming months.

12 action!

MemberEngagement

Changing the Chamber’s Structure

In 2006, the Saskatchewan Chamber of Commerce embarked on a multi-year review of its Board and Governance structure. This

review is now complete, and at the 2009 Conference on Business members will be presented with several by-law changes. Instituting a revised Board, and refreshing the Chamber’s focus shows we are striving to add value to your membership.

The Chamber, and particularly its governing bodies, are charged with bringing together the numerous, varied needs and diverse interests of its members to shape and achieve goals that benefi t the Saskatchewan business community, the organization and the province as a whole.

We strive to fulfi ll our role and our mission by working towards the organization’s vision. The 2009 review has changed the wording slightly, but the goals behind the Chamber’s vision and mission statements remain the same.

Vision: Saskatchewan business making the province the best place to live, work and invest.

Mission:To strengthen our business community and the competitive enterprise system for an improved quality of life.

The Chamber’s emphasis on good governance is rooted in the importance of its vision and mission. To ensure these goals are met, the Chamber has

The proposed restructuring of the Board will limit its size to 10-13 directors, up to 9 of whom will be elected by the membership of the Chamber. The remaining four will be the Chair, Past-Chair, 1st Vice Chair and 2nd Vice Chair.

built a solid governance framework that helps to: • protect and promote the best interests of Chamber members;

• operate effectively and effi ciently;

• prudently manage the Chamber’s assets; and

• meet legislative requirements and maintain high ethical standards.

To help review the Chamber’s existing governance system and recommend changes, the Chamber created a Governance Review Committee in 2008 that utilized the consulting services of Board Dynamics, a Saskatchewan company based out of Saskatoon.

Through various consultation sessions with the Chamber Board and membership, including focus groups and surveys to members, the Chamber was able to put together a comprehensive Governance Policies document that was recently sent to the entire membership via email for their review.

One noticeable change to the governance structure of the Chamber will be in the size of its Board of Directors. In the past, the Board was comprised of appointed and elected members, Offi cers, and an Advisory Council of past-presidents. Together, the Board was a sizable 37 people, which proved to be cumbersome and ineffective in most cases.

The proposed restructuring of the Board will limit its size to 10-13 Directors,

up to nine of whom will be elected by the membership of the Chamber. The remaining four will be the Chair, Past-Chair, 1st Vice Chair and 2nd Vice Chair. Annually, a new 2nd Vice Chair will be chosen as the others move through the roles until they fi nish their term as Past-Chair.

Directors will be elected for a term not to exceed 3 years, and are eligible for reappointment for one additional term, for a maximum of 6 years.

To ensure stability and continuity on the Board, the terms of the Directors will be staggered so that a fairly equal number of terms expire each year. In 2009, there will be 1/3 of the Directors elected for a three year term, 1/3 for a two year term and 1/3 for a one year term.

The determination of which Director will initially serve a three year, two year or one year term will be by simple lottery at the fi rst meeting of the Board after the election is held in May 2009.


Another component of the restructured Governance will be the creation of a Business Leaders’ Roundtable, which will ensure the continuity of strategic and informed advice from a body of the best and brightest businesspeople in the province.

Another component of the restructured governance system will be the creation of a Business Leaders’ Round Table, which will ensure the continuity of strategic and informed advice from a body of the best and brightest businesspeople in the province.

Chamber president Dale Lemke is confi dent that the proposed governance changes will be successful. “We are making these necessary changes because we want to ensure we have a governance structure that is responsive to current realities and challenges and to guarantee we have an accountable Board that refl ects the vision of the Chamber.”

Board members will be held to strict confl ict-of-interest requirements, and Directors will be obligated to attend at least 60% of Board meetings, which Lemke noted will “ensure our Board stays informed and that actions are carried out and accounted for every meeting.”

These changes, coupled with a strong strategic plan and annual business plans, will help to maintain the Chamber as the pre-eminent Voice of Business in the province.

More information on the proposed governance changes can be found at our website, www.saskchamber.com.

By the Numbers continued from page 13

AGRICULTUREGross farm cash receipts have grown by 23% in 2008 to reach a record $9.4 billion for the year. This increase comes on the heels of a 15% increase in 2007. The increase is evident only

for grain producers. Receipts from the sale of grain are up 39% compared with a 3% increase for livestock products. Employment in agriculture was 38,700 in February, an increase of 4.6% from a year ago.

in December and a further 1% drop in January. Part of the reason for the lower sales will be lower prices for refi ned petroleum products, fertilizer, and other products which have energy prices incorporated into them. February employment in manufacturing was 30,600, up 1.3% from a year ago.

MANUFACTURING SALES

In spite of diffi cult conditions, Saskatchewan’s manufacturing sector had a good year in 2008 with the value of sales up 19% to $12.3 billion. After adjusting for normal seasonal variations, the gross value of sales has been slowing with a particularly sharp 14% decline

14 action!

You are reading the last article in the “A New Entrepreneur” series, Earlier in the series you were introduced to the fi ctional character, Anne Smith. Throughout the series we have followed Anne through the various stages of the business start-up process: from idea generation, business planning, fi nancing opportunities, location selection, and marketing planning, to the opening day and on through the fi rst six months of business operations.

All issues of “A New Entrepreneur Series” are available online at www.saskchamber.com

Connecting with Other Business Operators

A NewEntrepreneurSeries

Now we introduce one last expert opinion. Rob Fuller, chef and co-owner of Zest Restaurant in Regina, describes his real-life

successes as an independent entrepreneur.

Tell me a little bit about your entrepreneurial background.I started my fi rst business about fi ve or six years ago. My fi rst restaurant was Thyme’s Short. I had a downtown location and a restaurant that sat 35 people. It was a good starting point for someone who had never run a restaurant. It was a good size for learning about dealing with customers, sellers, and suppliers, and managing payroll. It was a good manageable size for someone new to running a business.

What was the fi rst thing you learned after starting your business?In opening that fi rst business I learned quickly that you need to fi nd diversifi cation in your business. Aside from just running the restaurant, when I opened Thyme’s Short I did a lot of catering, as well as cooking demonstrations every Monday night when restaurants are traditionally very

slow. Diversifi cation is the name of the game when starting a restaurant. It’s important to appeal to your customers with a product different from what is already on the market. Trying new things with your business is extremely important.

Starting out, what were your early career goals? Did they involve starting your own business?Early in my career I worked as a chef with a lot of rich and famous people: Giorgio Armani, Danielle Steele, Al Fayed, to name a few. I took what I learned from working with those people, focused on their food needs and wants, and decided I wanted to take those food concepts and change them into something for everyday people to enjoy. Essentially, I wanted to provide high-end quality food at a reasonable price.

In running your own businesses, have you been able to fi nd a balance between work and your personal life?Yes, but it’s very important to focus on the balance part. I have two daughters and a wife. I work Monday through Friday, and try to always take weekends

off. The important thing really is, when you take a day off – really take the day off. You can’t be playing around on the computer or on your BlackBerry, or stopping in all the time at work. When you’re off, you take the time off.

What is the most challenging part of running your own business? How do you overcome that challenge?My biggest challenge? Staying focused is the big challenge. Being an

Diversifi cation is the name of the game when starting a restaurant. It’s important to appeal to your customers with a product different from what is already on the market. Trying new things with your business is extremely important.


Watch for the Chamber’s new series: “Succession Planning for

your Business” starting in May!

entrepreneur, you don’t actually want to stick with any one thing for too long. You want to keep working on new projects. Of course you want to make sure money is always coming in, and make sure your business is being run well, but after that you want to focus on new things. And to overcome the challenge of staying focused – you don’t actually want to try and stay focused on one thing. I just learned to manage all the projects I have on the go.

What is the most rewarding part of running your own business?The most rewarding part of running my own business – is working for me. I fi nd it diffi cult to work for other people. I have my own ideas, my own business concepts that I think are bigger and better than what others can tell me to do. Working for me is the part I like most about running my own business and the part that motivates me most to be an independent entrepreneur.

What are the most common misconceptions people have about business owners?There are lots. People think that running your own business is a romance. They think it’s easy, martinis and cocktails everyday at 5 p.m. It’s the opposite of what most people think; you fi ll in for staff that do not show up, deal with customer complaints, and make sure your employees are happy. Mainly, you work hard. You have to be at work all the time. There isn’t a romantic side of owning your own business; you don’t get to cook big meals for your friends and family every night. There are times when you get to entertain and those times are great, but they are few and far between. The majority of your time is spent working really hard.

What is the best advice you would give to a new entrepreneur?Research! Do lots and lots of research! Work really hard, get help, and use your research to prepare a really great business plan. Use the bank to help you fi nd the start-up money; fi nd the fi nancing programs that are out there for young entrepreneurs. And again, do the research; don’t just go ahead and open the doors.

One fi nal question that has to be asked; what makes Zest Restaurant’s sticky toffee pudding the absolute best?There is a good story behind that dessert, and people like the romantic story. I was opening my fi rst restaurant, Thyme’s Short, in Regina, and my mom was helping with the administration. Right before we opened, my mom gave me an envelope from my grandmother and I, of course, thought, ‘Great, a big cheque.’ Instead, I opened it and it was the recipe from Grandmother. At the bottom of the recipe she signed, ‘If you use this you will never fail.’ And I have been extremely successful ever since. Not to mention –

you can’t go wrong with a dessert that is chocolaty, moist, and delicious.

Written by Andrea Mulholland, a fourth-year student at the Paul J. Hill School of Business, University of Regina. Andrea is a student consultant with the Centre for Management Development at the University of Regina. The Centre provides business consulting services, Executive Leadership Development and customized training, and publishes applied research. Visit www.uregina.ca/admin/cmd.

16 action!

Talking Policy

Chamber meets with Prime Minister

On February 27, 2009 I had the opportunity to join a select group of business representatives in a

meeting with Prime Minister Harper, Senator Pamela Wallin, Hon. Gerry Ritz, and Hon. Lynne Yelich.

This meeting occurred shortly after Premier Brad Wall and Prime Minister Harper announced funding to accelerate the twinning of Highway 11 between Saskatoon and Prince Albert.

I, like all the other attendees, had the opportunity to present a few key points to the Prime Minister. Our offi ce also provided him with a letter further highlighting our positions.

As the Provincial Chamber representative, I presented four key recommendations in the meeting, but also referenced the benefi ts of a Harmonized Sales Tax and of the Prime Minister traveling abroad to “sell the Canada brand”.

The fi rst recommendation I presented was for the federal government to remove federal regulations that are either redundant, or duplicate the current provincial processes. I stressed that the duplication of forms, and delayed approval processes, that do not materially benefi t anyone and anything, are costing business and governments millions daily. The immediate removal of these hindrances would get investment money fl owing in the economy faster.

Four Key Recommendations Presented to thePrime Minister:

1. Reduce or remove federal regulations that duplicate provincial ones.

2. Provide additional support for the cattle/pork sector by becoming a full partner with the Province.

3. Enhance First Nations housing and education funding.

4. Increase federal support for clean energy partnerships.

The Provincial Chamber also recommended that the federal government provide additional support for the cattle/pork sector by becoming full partners in the Provincial program. This issue was raised due to the fact that the Province had announced their program funding the day before, and it was a topical point of discussion where we could offer our support.

As a continuation of the Chamber’s efforts under our Growth Strategy, we requested that the federal government enhance its funding of First Nations housing and education.

For our fi nal recommendation, I referenced the valuable work the province is doing with Montana with regard to carbon sequestration, and I urged the federal government to increase its support for these clean energy partnerships.

Overall the discussion was very positive, with all the business representatives giving a positive picture

of their efforts and their vision for the near future.

Other attendees at this meeting included, Mayo Schmidt from Viterra, Wayne Brownlee from Potash Corp., Pat Youzwa from SaskPower, Robert Watson from SaskTel, Chief Darcy Bear from the White Cap First Nation, and Joel Teale from Dundee Developments.

This meeting with Prime Minister Harper was a continuation of the dialogue the Chamber initiated when I met with Minister Flaherty in December, and when we held the fi rst ever Federal Political Forum in January.

Continuing the Provincial Chamber’s effort to strengthen the Saskatchewan business community’s relationship with the federal government, the Saskatchewan Chamber’s Immediate Past-President Dave Dutchak met with our Provincial MPs in Ottawa at the start of March.

By Steve McLellan, CEO


Chamber Continues to Push for Changes to K-12 Education

Shaping Policy

“Saskatchewan’s standing on international assessments of education is continuing to decline,” noted Saskatchewan Chamber CEO Steve McLellan. “This is an issue that we have to address or else we will not have the future workforce we need to make Saskatchewan a competitive place to do business.”

On March 4, the Saskatchewan Chamber of Commerce presented its concerns and recommendations regarding Saskatchewan’s K-12 Education System to the Provincial Panel on Student Achievement. The Panel has a mandate from the Minister of Education to provide recommendations for improving K-12 student achievement in Saskatchewan.

Holly Hetherington, the Saskatchewan Chamber’s 1st Vice and Youth, Education and Training Committee Chair led the Chamber’s delegation

with Bev Crossman, Youth, Education and Training Committee member, Steve Mclellan, CEO and Kristin McKee, Communications Coordinator also attending.

The Panel consists almost entirely of education sector stakeholders (Ministry Offi cials, teachers, school boards, etc.), with little demand side information (employers/ post-secondary institutions) which is why the Chamber decided to get involved.

“Post-secondary institutions and employers are experiencing additional costs and delays as they address defi cits in basic skill sets prior to the commencement of additional training,” explained McLellan. “They are the ones who understand best how education from the current K-12 system is transferring into real life.”

When students enter the workplace with a grade 12, they are expected to possess a certain set of skills, and without those skills, they are soon faced with serious and surprising challenges.

A K-12 education system that does not match the requirements of employers and post-secondary institutions, is inconsistent across the province and struggles to engage an entire segment of the population, clearly sets Saskatchewan youth up for failure.

The Chamber’s submission to the Panel raised signifi cant concern regarding the lack of career counseling in the higher grades. Effective career counseling, combined with relevant labour market intelligence, can minimize surplus and shortages in the labour pool.

The Saskatchewan Chamber recommends that career counseling be provided to all students in the high school system. These students should be fully informed about the impacts of current choices on future opportunities.

“A quality K-12 education minimizes training and educational costs later, and increases Saskatchewan’s national and international competitiveness,” concluded McLellan. “This is an issue that needs to be addressed and the Saskatchewan Chamber will continue to work with the Provincial Panel on Student Achievement to ensure our students are getting the best education possible.”

If you are interested in learning more about the Chamber’s position on K-12 education visit www.saskchamber.com.

Key Recommendations

• The curriculum must meet the needs of students in the new economy;• The amount of instructional and engaged learning time must be

suffi cient to ensure students can fully understand ideas and concepts;• Every step necessary should be taken to address the lack of

student achievement among Aboriginal students in order to bring them in to parity with non-Aboriginal students;

• Career Education classes should be provided to all students, particularly those in high school;

• The level of education received across Saskatchewan must be more consistently delivered; and

• An aggressive effort needs to be undertaken to engage the broader community in a dialogue about student achievement.

18 action!

Why Use the Work Share Program?

Work-Sharing benefi ts employees:

• they avoid the hardship of being laid off;

• they retain their work skills.

Work-Sharing benefi ts employers:

• valued employees are retained;

• staff morale is strengthened;

• expensive rehiring and retraining costs are avoided.

It Matters to Your Business

Opportunities for Work-Sharing

As businesses across Canada continue to struggle in the current economic downturn, and the unemployment rate

continues to rise, businesses can be faced with only two courses of action. A business can either lay off employees temporarily, or make an agreement with the affected employees to participate in a Work-Sharing arrangement.

To help companies avoid job cuts, the Government of Canada has extended the opportunities for work sharing.

What is a Work-Sharing Agreement?Work-Sharing is an Employment Insurance (EI) program that enables employers to face cutbacks and still avoid layoffs.

The program enables this by shortening the work week by one to three days and paying reduced wages accordingly. For the hours, days, or shifts not worked, Service Canada arranges for EI eligible employees to draw benefi ts to help compensate them for the lower wages received from their employer.

Work Share agreements can typically range from 6 to 26 weeks with an

extension of up to a maximum of 38 weeks. However, the 2009 Federal Budget will extend, over the next two years, work-sharing agreements by 14 weeks, to a maximum of 52 weeks.

The Federal Government has also increased access to work-sharing opportunities through greater fl exibility in the qualifying criteria and streamlining processes for employers.

The changes implemented are effective immediately until April 3, 2010 and are estimated to cost the federal government $200-million over two years.

Management and employees must agree to participate in Work-Sharing and fi le the necessary information with Human Resources and Skills Development Canada (HRSDC)/Service Canada.

To be eligible, an employer must have been in business in Canada for at least two years. The company must also be able to show that the need for reduced hours is temporary and beyond their control. They must also present a detailed Recovery Plan that outlines how the company will return to normal production schedules and hours of employment at the end of the Work-Sharing agreement.

The employer is responsible for setting up a schedule of work hours and notifying HRSDC/Service Canada officials of any changes in the time worked and the number of employees on Work-Sharing.

In order to receive Work-Sharing benefits, workers must be eligible to receive regular EI benefits, though they do not have to serve a two-week waiting period. Work-Sharing agreements do not affect workers’ rights to regular EI benefits if they happen to be laid off after the agreement ends.

The Service Canada web site provides more information about terms and conditions for the program as well as forms to be fi lled out: www.servicecanada.gc.ca/

The Work Share Program allows eligible employees, who are working a shortened week, to draw EI benefi ts to help compensate them for the lower wages they received from their employer.


Workplace Issues

Create a Winning Workplace Culture

Staff retention is a major objective for many companies in Saskatchewan. Training is very costly and time consuming, plus

businesses that keep experienced people who know their product, can provide better service and strengthen customer loyalty.

The question is- how does your organization keep these key people?

Human Resources professionals agree that recruiting and retaining staff, often in competitive situations, requires going beyond basic employment elements such as pay, benefi ts, and physical environment.

While these factors are vital, they alone are not suffi cient to ensure that employees will remain motivated and committed to your organization over the long term. Other discretionary factors are needed to create a work environment where people feel they will succeed and enjoy job satisfaction.

Initiatives to help employees improve themselves are often welcomed in the workplace and can help employees feel valued and challenged. From an employer’s perspective, initiatives along this line may include a tuition reimbursement for learning opportunities, or a leadership program.

On the job stress can bring a toxic atmosphere into the workplace and hurt staff retention. If your company is frequently impacted by outside stressors, try to bring balance to the workplace.

Unique ideas such as bringing in a massage therapist on particularly hectic days can really show employees that your company understands what they are going through. Setting aside a tranquility zone, a quiet room where employees can relieve stress, can also reduce stress and cut absenteeism.

People can become very comfortable in their work environment, and that comfort can lead to apathy. Encourage employees to question the status quo and really listen to the suggestions they put forward. Not only will this make employees feel that their contribution is valued and recognized, increasing engagement, but it can also improve your business’ operations.

While there are several ways to facilitate the creation of a positive workplace culture, the best way to preserve this culture is to maintain a core group of employees who are positive and friendly. Attitude is contagious, and if the core group is positive, they can help infl uence other employees as they come into the company.

Employers have the ability to create a positive workplace culture that can improve staff retention. Instituting a few workplace changes can save your organization big money down the road - remember it is often the little things that make the difference.

Ways to Create a Positive Workplace Culture

• Institute Regular Training Opportunities

• Acknowledge and Address Key Workplace Challenges

• Establish Open Communication

• Set Clear Goals

• Recognize and Reward Achievements

20 action!

There is an unfortunate perception among many entrepreneurs that business environmental sustainability

and fi nancial sustainability are mutually exclusive.

At fi rst glance, it seems logical that environmental sustainability should be put on the back burner during tough economic times. But there are several reasons why this is a bad assumption to make.

There are many low-cost solutions that can help get your business on the road to an environmentally sustainable future while saving you money, improving staff morale and public image, and freeing up funds for longer-term sustainability initiatives.

It Matters to Your Business

Energy Effi ciency and Business Effi ciency

So where do you begin?

The fi rst step is to determine who the key players in your sustainability strategy will be. Potential players include staff and management, building owners and managers, contractors, and cleaners.

Staff and managers are an obvious place to start. Determine who is interested in environmental sustainability and start a green team. You will likely be surprised how enthusiastic people can be about environmental issues.

Many employees are concerned about sustainability but do not know where to begin. Knowing the company they work for is concerned about the environment, and willing to take action, can improve morale and increase productivity.

Try to include members from different sections and different levels of authority. Once you have assembled a team, you need to sit down and determine where your organization is at and what you need to do to improve. A walkthrough of your facility with your team to identify waste is a good fi rst step.

Things to look for include: lights, computers, monitors, and other equipment often left on when not in use; volume of paper discarded at printer and photocopier locations; fl eet vehicles with low tire pressure; and leaky pipes or faucets. When you determine your priorities, you need to communicate them to staff and give them incentive to act.

Start with simple actions like turning computers and monitors off, and encouraging staff to think twice before printing copies of e-mails.

Track your savings, and at the end of the year show staff how much the company

Many employees are concerned about sustainability but do not know where to begin. Knowing the company they work for is concerned about the environment, and willing to take action, can improve morale and increase productivity.


has saved. You can then reward staff for their contribution with recognition programs, prizes or new equipment. Purchasing new energy effi cient LCD monitors for workstations using savings achieved from turning off computers and monitors when not in use is a good example.

If you lease your space as many businesses do, contact your building owner or manager and let them know what you are planning. Depending on your building, you may want to negotiate having your space put on separate utility meters and being billed accordingly, or renegotiate rents or leasing fees based on increased effi ciency.

You can also get your building more heavily involved. The International Building Owners and Managers Association (www.boma.org) offers a building environmental certifi cation program, and the Saskatchewan Environmental Society (SES) offers a Building Operator Training program that teaches commercial real estate

Things to look for include: lights, computers, monitors, and other equipment often left on when not in use; volume of paper discarded at printer and photocopier locations; fl eet vehicles with low tire pressure; and leaky pipes or faucets.

professionals how to reduce energy consumption and costs.

Make sure that your building manager is aware of these programs. In addition, if there are other tenants in your building, SES offers Energy Awareness training for all occupants of a building (www.environmentalsociety.ca) and the other tenant may be interested in approaching the building manager with you in regards to effi ciency improvements.

If you decide to go beyond simple changes and are considering major retrofi ts, you will benefi t from a comprehensive energy audit. A professional energy auditor can let you know what changes will provide the best return on investment.

Energy audits are also required to qualify for Natural Resources Canada ecoEnergy funding, a program that pays grants to businesses for energy retrofi ts. If you are interested in fi nding an energy auditor visit oee.nrcan.gc.ca/providers/.

Businesses that do well during economic downturns are those that are creative, innovative, and able to fi nd ways to save money without cutting services. Environmental sustainability is no longer an option to set aside when times get tough. It is a prerequisite to long-term fi nancial sustainability.

Bill MacKinnonCarbon Dioxide Reduction Edmonton, City of Edmonton.

Is your company a leader in improving the Environment? Share your success by becoming a 2009 Environment ABEX Award Nominee.

22 action!

Reaction

The 2009 Provincial Budget

The Saskatchewan Chamber of Commerce congratulates the provincial government for enacting some of

the organization’s long term recommendations in the 2009/2010 Provincial Budget.

Reducing the education portion of property tax, fi xing the mill rate, and instituting a genuine revenue sharing formula for municipalities, which is geared to provincial economic growth, have all been long term recommendations from the Chamber.

Nevertheless, the Saskatchewan Chamber believes that there is room for improvement.

“With a $424 million surplus and conservative budget estimates, the province could have gone all the way with property tax reform. We would have liked to have seen the inequities between

commercial and residential property taxes addressed,” continued McLellan.

“The quickest way to stimulate the economy is to leave money in businesses for investment. The property tax premium charged to businesses takes money away that could used to create jobs and grow the economy.”

The Saskatchewan Chamber is concerned with how the tiered property tax system will affect large commercial property owners. Commercial property that has a taxable assessment of less than $500,000 will pay a mill rate of 12.25. Commercial property that has a taxable assessment of more than $500,000 will pay a mill rate of 12.25 on the fi rst $499,999 of assessment, a mill rate of 15.75 on assessment between $500,000 and $5,999,999 and a mill rate of 18.55 on any assessment over $6,000,000.

“We have been advocating for fairness in the property tax system, and need a competitive tax system overall to attract and retain investments in Saskatchewan,” continued McLellan. “The changes announced in the budget are an improvement, but they are not complete.”

The Saskatchewan Chamber’s Expert Committee on Finance will continue

to work with the government on the property tax issue, but also work to enhance Saskatchewan’s competitiveness with regard to the provincial sales tax on business inputs, personal income tax rates, and corporate income tax.

As is always the case, fi rst glance reviews of the Provincial Budget rarely show the fl aws. Over the next while, we will see more of the challenges appear.

The cancellation of the Saskatchewan Labour Market Commission and the transference of its functions into Enterprise Saskatchewan does cause some apprehension. The Saskatchewan Chamber, through its Youth, Education and Training Committee is continuing to review this decision.

Another concern of note is the lack of signifi cant new funding for the Saskatchewan Apprenticeship Trade Certifi cation Commission. The funding provided this year does not take into consideration the growing demand for apprenticeship in the province, and the limited funding could have a detrimental impact on the growth of the trades in the province.

The overall spending increase is also concerning to the Saskatchewan

“The quickest way to stimulate the economy is to leave money in businesses for investment. The property tax premium charged to businesses takes money away that could used to create jobs and grow the economy.”


Chamber. The Government of Saskatchewan is spending well in excess of infl ation.

The 2009-10 Budget provides for a $1.13 billion (12.4%) increase in spending over the 2008-09 Budget, and the 2008-09 Budget increased spending by $781.7 million (10%) from Budget 2007-08.

While the Saskatchewan Chamber is supportive of the government’s commitment to address the infrastructure defi cit, it is concerned with some of what is being included as a capital project.

In the 2009-10 Budget, Capital projects highlighted as infrastructure investments included a variety of initiatives that would not likely be considered ‘infrastructure’ to the average Saskatchewan resident. Items like

“Spending is rapidly increasing, and the government needs to ensure that anything incorporated as a one time capital expenditure is directly linked to continued economic growth and not just a bureaucratic wish list.”

– CEO Steve McLellan

$724,000 to provide improved tracking of staff shift scheduling and overtime for Corrections, and $550,000 to consolidate ministry operations at First Nations & Métis Relations, are just a couple examples of ‘infrastructure’ projects being undertaken.

“Spending is rapidly increasing, and the government needs to ensure that anything incorporated as a one time capital expenditure is directly linked to continued economic growth and not

just a bureaucratic wish list,” elaborated McLellan.

Going forward, the Chamber will continue to monitor, and where necessary, raise concerns over the infrastructure investment made by the province.

As opposed to continual spending increases, the Chamber encourages the government to examine all opportunities to stimulate economic growth, specifi cally opportunities for business tax reductions.

Nominations for the Province's LargestBusiness Excellence Awards will open on April 1, 2009.

ABEX Award Categories Include:

Nomination forms are available online at www.saskchamber.comAll private sector for profit businesses in Saskatchewan are eligible for an ABEX regardless of size or nature of economic activity. A company may submit its own entry, or it may be sponsored by a third party

• Business Leader of the Year • New Venture • New Saskatchewan Product • Job Creation • Environmental Excellence • Young Entrepreneur of the Year

• Customer Service • Marketing • Exports • Investment • Aboriginal Business • Community Involvement

New The ABEX Award for

Health Sector Excellence!!

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2009-2010

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Saskatchewan Chamber of Commerce

Trevor Doroshenko Membership CoordinatorSaskatchewan Chamber 1630-1920 Broad StreetRegina, SaskatchewanS4P 3V2

Ph: (306) 352-2671Fax: (306) 781– [email protected]

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