Latest news with #offshoring
National Post
8 hours ago
- Business
- National Post
Michael Taube: Unifor wants to turn Canada into a third-rate banana republic
It's no secret that labour unions are opposed to capitalism, free markets and globalization. But Unifor's ludicrous demand that Canadian companies should be penalized if they don't work to further Canada's 'national interest' is pure insanity. Article content Lana Payne, Unifor's national president, wrote a letter to Prime Minister Mark Carney last month, relaying her union's concerns about Canadian manufacturers closing up shop and moving south to avoid U.S. tariffs. Payne urged Carney to take 'immediate and decisive action using the Foreign Extraterritorial Measures Act (FEMA), to prevent corporations, operating in Canada, from offshoring jobs in response to foreign trade policies — particularly those originating from the United States.' Article content Article content Article content Payne noted that FEMA 'allows the attorney general, with the support of the Minister of Foreign Affairs, to issue blocking orders prohibiting compliance with foreign laws or directives that are contrary to Canadian interests.' What would this entail, exactly? 'These orders can make it a federal offence to move production out of Canada in response to foreign trade measures, carrying penalties of up to $1.5 million for corporations and up to five years' imprisonment for individuals,' wrote Payne. Article content Article content Fines and incarceration for offshoring? Payne and Unifor must be out of their minds! Alas, this is the typical narrow-minded view that many union leaders and members have when it comes to understanding private enterprise and how most businesses operate. The basic concept of outsourcing has long been an important component of the free market economy. It enables companies to be more competitive and achieve greater financial potential, thus protecting workers and their jobs, by focusing on their core competencies. Article content Article content Entrepreneur Sam Darwish wrote in Forbes in 2021 that, 'Outsourcing is a great way to help your business as it progresses through its various growth stages.' He highlighted several economic benefits of outsourcing that companies should utilize. It can lead to steady growth 'because it's more affordable to outsource the work than it is to build your own in-house team, and because you can cancel an outsourcing contract without having to put people out of work.' Outsourcing gives a business the ability to retain additional flexibility since it can 'staff up before a busy season without the financial commitment of hiring in-house employees, the cost of which can take years to break even on.' Article content Article content Darwish also pointed out that outsourcing agencies 'are capable of attracting top talent to ensure customer satisfaction and competitive results.' Hiring the best-qualified candidates can help build a company's brand and enhance its reputation, which are both vital to success in a competitive marketplace. Outsourcing enables a company to 'provide your customers with consistent customer service,' and allows 'your internal team members to focus on their own tasks, helping your business run more efficiently and ultimately increasing your (return on investment).'
Yahoo
9 hours ago
- Business
- Yahoo
AO World looking to automation and offshoring in face of wage cost surge
Online electricals retailer AO World has revealed plans to use artificial intelligence and to offshore more work overseas in a bid to slash costs after seeing its wage bill surge. The group revealed late last year that it was facing around an extra £8 million in costs a year from April's higher national insurance contributions and minimum wage rise. It said on unveiling results on Wednesday that wage costs are set to keep rising over the next few years, 'so we will increasingly look to mitigate these costs through automation, outsourcing and offshoring'. Founder and chief executive John Roberts told the PA news agency that the group had no plans to cut jobs and was recruiting staff, but said some of these would be likely to be outside of the UK. He said: 'We don't have any plans to get rid of people or have any plans for redundancies. 'We're on a recruitment drive across the business.' But Mr Roberts added that 'not all will be in the UK'. 'While the costs with legs walking into the business keep rising, then the motivation to invest more in efforts to try to offset that are increased,' he said. The group already offshores some roles abroad and said it was looking to increase this, though Mr Roberts stressed service would have to be 'at the right standard'. The chief executive warned last autumn when the extra costs were announced in the budget that prices would probably have to rise, but he told PA they had not risen significantly as the group looks to remain competitive. The comments came as AO World revealed record annual profits, cheering the success of its membership scheme and surging sales. The group reported a better-than-expected 32% rise in underlying pre-tax profits to £45 million for the year to March 31. Including its recently acquired Music Magpie business, underlying profits rose 27% to £44 million. The group saw like-for-like sales lift 7% to £1.11 billion and said it was 'confident' of another sales rise in the new financial year. Sales were boosted by the deal to buy Music Magpie last October for around £10 million, with AO World saying this added £30 million to revenues. It also hailed its membership scheme for helping drive sales, as well as moves to broaden its product range to about 9,000 items. AO World said: 'Despite the wider macroeconomic challenges, particularly employment cost increases, our objectives remain unchanged and we are confident in our ability to continue to grow revenue, alongside group adjusted pre-tax profit of £40 million to £50 million.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
9 hours ago
- Business
- The Independent
AO World looking to automation and offshoring in face of wage cost surge
Online electricals retailer AO World has revealed plans to use artificial intelligence and to offshore more work overseas in a bid to slash costs after seeing its wage bill surge. The group revealed late last year that it was facing around an extra £8 million in costs a year from April's higher national insurance contributions and minimum wage rise. It said on unveiling results on Wednesday that wage costs are set to keep rising over the next few years, 'so we will increasingly look to mitigate these costs through automation, outsourcing and offshoring'. Founder and chief executive John Roberts told the PA news agency that the group had no plans to cut jobs and was recruiting staff, but said some of these would be likely to be outside of the UK. He said: 'We don't have any plans to get rid of people or have any plans for redundancies. 'We're on a recruitment drive across the business.' But Mr Roberts added that 'not all will be in the UK'. 'While the costs with legs walking into the business keep rising, then the motivation to invest more in efforts to try to offset that are increased,' he said. The group already offshores some roles abroad and said it was looking to increase this, though Mr Roberts stressed service would have to be 'at the right standard'. The chief executive warned last autumn when the extra costs were announced in the budget that prices would probably have to rise, but he told PA they had not risen significantly as the group looks to remain competitive. The comments came as AO World revealed record annual profits, cheering the success of its membership scheme and surging sales. The group reported a better-than-expected 32% rise in underlying pre-tax profits to £45 million for the year to March 31. Including its recently acquired Music Magpie business, underlying profits rose 27% to £44 million. The group saw like-for-like sales lift 7% to £1.11 billion and said it was 'confident' of another sales rise in the new financial year. Sales were boosted by the deal to buy Music Magpie last October for around £10 million, with AO World saying this added £30 million to revenues. It also hailed its membership scheme for helping drive sales, as well as moves to broaden its product range to about 9,000 items. AO World said: 'Despite the wider macroeconomic challenges, particularly employment cost increases, our objectives remain unchanged and we are confident in our ability to continue to grow revenue, alongside group adjusted pre-tax profit of £40 million to £50 million.'
Associated Press
20-05-2025
- Business
- Associated Press
Unifor calls on federal government to punish corporations offshoring Canadian jobs
TORONTO, May 20, 2025 /CNW/ - Unifor, Canada's largest private sector union, is calling on the federal government to take immediate and aggressive action against corporations that move jobs out of Canada in response to U.S. trade measures. The union has presented a detailed proposal, including legislative amendments, outlining how the Foreign Extraterritorial Measures Act (FEMA) can be deployed to penalize corporations that offshore or outsource work to the detriment of Canada's national interest. 'Canadian workers should not pay the price for American trade aggression,' said Unifor National President Lana Payne. 'It's time for the federal government to draw a clear line: if you do business here, you don't get to pack up and leave to avoid tariffs without consequences.' While Canada has responded to unfair U.S. tariffs with retaliatory measures, these steps fall short when it comes to stopping companies from offshoring Canadian production to the U.S., resulting in devastating job losses. Unifor is calling on the federal government to immediately apply FEMA to penalize Canadian-based companies in the event they shift operations south of the border in compliance with U.S. pressures or incentives. The case presented by Unifor can be read across varying levels of aggressiveness. FEMA, as it stands, can be used as a tool immediately—although penalties and remedies are currently limited. However, legislated amendments to FEMA (when Parliament returns), intersecting with existing powers under the Customs Tariff, present a suite of very aggressive—almost limitless—punitive measures, up to and including blocking or restricting the import of goods from companies that have offshored Canadian jobs. Read Unifor's letter to Prime Minister Carney and pertinent cabinet ministers here. Under FEMA, the Attorney General—backed by the Minister of Foreign Affairs—has the authority to issue orders that block compliance with foreign measures that harm Canadian interests. These blocking orders would make it a federal offence for companies to move production out of Canada in response to U.S. tariffs or directives, with penalties currently reaching up to $1.5 million for corporations and up to five years' imprisonment for individuals. 'This is existing legislation that can be activated today. No new law is needed—just political will to protect Canadian workers and prevent further job losses in vital manufacturing sectors,' added Payne. 'By using FEMA, and strengthening it through legislative amendments, the government can send a clear message that offshoring Canadian jobs will not be tolerated.' Unifor is also calling for stronger penalties, including asset seizures for companies that violate blocking orders, and for FEMA compliance to be a condition for any company seeking relief from Canada's own retaliatory tariffs. 'We need to stop rewarding companies that gut our communities and undermine our economy,' said Payne. 'This is about protecting good Canadian jobs and defending our sovereignty.' Unifor is Canada's largest union in the private sector, representing 320,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future. SOURCE Unifor
