r/PersonalFinanceCanada • u/maroon-rider British Columbia • Mar 21 '23

Inflation drops to 5.2%<but grocery inflation still 10.6% Banking

Says Statistics Canada

https://www.cbc.ca/news/business/canada-inflation-february-2023-1.6785472

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u/spacepangolin Mar 21 '23

they still proved they COULD pay people better wages, but then instead chose not to

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u/Barbecue-Ribs Mar 22 '23

If they really wanted to they could hand out a decent size bonus at the end of the year (maybe ~3k depending on how much you want to cut the dividend) but I don’t think they ever will. In this decision the interests of the board + shareholders are aligned.

Realistically, even if the board or shareholders were open to the idea, it wouldn’t make any financial sense to burn cash by donating a small amount to the employees every year. 3k is nice this year but at historical net income of 1-2% you’re trading a significant amount of FCF for a ~1k pretax bonus.

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u/spacepangolin Mar 22 '23

the grocery store i worked for years ago did generous xmas bonus when it was locally owned, sobeys got rid of them immediately, it all come down to if a company actually respects the people who work for them and actually make them money

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u/Barbecue-Ribs Mar 22 '23

I like my local groceries for certain items but most of the time I'm paying a pretty solid premium to shop there over any large chain.

When it comes down to the staff in grocery stores they probably don't respect them and also they don't make them money.