WELCOME TO HARD TIMES
Lost ServiCom jobs will negatively impact local business owners.
Witnessing the reaction of many of the 600 dedicated employees last week when it was announced ServiCom would be permanently closing its doors in Sydney due to a bankruptcy filing could only ignite compassion in the most hard-hearted.
These are salt of the earth folks just trying their best to make a living to pay their bills and provide for their families. No one deserves to have the rug pulled out from under themselves like that. There is never a good time to receive a termination notice from an employer but finding out you no longer have a job just three weeks before the holiday season just adds salt to the deep wounds. This crushing experience must still feel surreal to the many good people caught by the surprise of this shocking announcement.
During my business career I have been a part of companies that have closed or have been sold suddenly, leaving me without a job. You are mentally impacted and on the verge of panic. How will I pay my heating bill, my mortgage, my car payment, my grocery bill? Most of us when starting out live paycheck to paycheck so there is no reserve to dip into to bridge the gap between jobs. Some of these displaced workers will find employment in a few weeks, some in a few months and others will take longer before they land on their feet.
The demographic of the ServiCom employee’s range in age from working seniors without enough pension benefits to live a comfortable retirement to young men and women starting careers, raising families and who are first time home buyers. They come from the Cape Breton Regional Municipality, Victoria, Inverness and Richmond counties, impacting our entire island. The prospect for finding steady employment has always been difficult in Cape Breton and no doubt the way forward will be challenging for them if they choose to stay in the community.
The economy of our island can ill afford to lose 10 jobs let alone 600 jobs in one fell swoop. These employees buy groceries, home furnishings, gas for the car, eat in our restaurants and their children fill our schools with our future leaders. Job losses of 2,500 auto workers in Oshawa and now the sudden loss of 600 call centre jobs in Cape Breton are certain to wreak havoc within their respective communities.
Over 120,000 jobs in Canada’s oil patch are also under threat due to a lack of pipeline capacity to tide-water. Let’s not forget how many Cape Breton residents work in the Western oil sector and spend their paycheque in Cape Breton. Their jobs are also under threat and that payroll is estimated to be near a $100 million injection into the local economy each year. That is a lot of full-size trucks, luxury homes, boats and RV’s that won’t be sold in Cape Breton if the oil industry implodes. A lot of our musicians do gigs at the Fort as well.
The financial impact of the loss of these 600 steady jobs with benefits is likely in the range of an annual payroll hit of nearly $18 million to our business community. This payroll loss will ripple through our commercial streets and have impacts on every business owner that operates in our municipalities. Impacts will be felt in the banking sector, car sales, taxi drivers, coffee shops, landlords, and retailers, along with the grocery stores and gas stations. It is shaping up to be a difficult winter for many small business owners who depended on these employees to spend their paychecks in their enterprises.
Prospects for steady employment are difficult at best in our community. We are all aware of our soft economy and the declining and aging population. If these workers can’t find replacement work in Cape Breton, they will eventually be forced to leave our island to feed and support their families. This will add further to our population decline, spreading the municipal tax burden over even fewer people who remain behind.
I recently read with interest that CBRM awarded a $219,000 contract to Grant Thornton to do a study on the financial viability of the municipality. I personally don’t think that is a necessary tax payer expense since every citizen already knows CBRM is in economic decline and strapped for cash. It looks like council is trying to avoid making the tough political spending cut decisions and instead is trying to pass blame to the province for its financial woes.
Why could we not use these same funds to create an economic development strategy to build business confidence in our community? That would attract new business owners and the jobs they can provide for our people, so they don’t have to leave our island? Our local businesses want to grow, pay their fair share of taxes, and employ local people who they know will spend their paycheques in their respective communities.
Perhaps we can pause the debates at council over which potholes to repair, which rinks to keep open, and the perpetual cost of boardwalk repairs long enough to focus on the big picture of economic growth and expansion. Maybe it is time for a meeting between local business and municipal leaders to develop a made in Cape Breton economic strategy. For sure the cavalry is not coming to save us.
Back in 2016 oil patch workers hit a rough spot due to the Fort McMurray wildfires. Local Cape Breton business owners who benefited directly from the spending by the oil workers on big ticket items in our community sponsored a successful community fundraiser at Centre 200 for those that lost their homes in that terrible fire. It raised more than $250,000 for Fort McMurray relief. Perhaps we could get our municipal leaders to organize another Centre 200 fundraiser to help the laid off ServiCom workers transition this difficult time in their lives. That would be a wellreceived Christmas gift by all of those who have lost their jobs, I’m certain.
“It is shaping up to be a difficult winter for many small business owners who depended on these employees to spend their paycheques in their enterprises.”