By Staff, The Daily Business Buzz
The problem is weak demand, not wages and benefits
[OTTAWA, ON] – The Canadian Federation of Independent Business continues to ignore its own research about the fragile state of the Canadian economy, says Ken Georgetti, president of the Canadian Labour Congress.
Georgetti was commenting on the CFIB's recently-released Business Outlook survey for July 2012.
"The CFIB's study shows that for the fourth month in a row, small and mid-sized businesses say that poor sales are the number one business constraint in Canada," Georgetti says. "This weak demand means that people either don't have the money to buy or they are fearful of the future."
Despite these findings, Georgetti says, the CFIB's main focus continues to be its attack on public-sector workers and their pensions.
"The CFIB is a small, but vocal interest group that frequently opposes increases to wages and even modest benefits and pensions. Small businesses can't succeed when people have less money in their pockets to spend. When will the CFIB address the real issues facing small business rather than inventing false problems?"
The CFIB also supports government austerity measures, but Georgetti points to comments by Canadian bank economists from CIBC and BMO warning about the possibility of another recession. With a global economic slowdown underway and a darkening outlook for Canada, those bank economists are recommending the federal government start planning for a new round of economic stimulus.
Georgetti adds, "Our problem in Canada is the lack of consumer demand plaguing small and medium-sized business, yet CFIB is silent on the issue. It appears the CFIB is not looking out for the interests of small business after all but has some other agenda."