The article discusses the reaction of various businesses, including banks and agricultural organizations, to the massive public service union (PSAC) strike in Canada. The PSAC represents over 140,000 federal government employees who are on strike demanding higher wages and improved working conditions.
Here’s a summary of the reactions from different groups:
- Businesses: The Canadian Chamber of Commerce warned that the strike could have a significant impact on the economy, particularly if it drags into a second month. They urged the government to resolve the dispute quickly.
- Wheat farmers: The Wheat Growers lobby called for an exemption so farmers can pay third parties to conduct grain inspections during the strike. They also demanded that private inspectors be allowed to do most of the work, which would save farmers $60 million annually.
- Bank of Nova Scotia economist Derek Holt: He warned that the strike could have a material effect on the economy and recommended that investors take note. According to his calculations, for every day one-third of the federal workforce remains off the job, government spending is reduced by about $200 million, which could lead to a contraction in nominal gross domestic product.
- Bay Street: The Bank of Nova Scotia’s Derek Holt expressed concerns that the strike might not be short-lived, and the central bank would likely "look through" its effects as an inter-temporal shock.
The article highlights the concerns of various stakeholders about the potential economic impact of the PSAC strike and the need for a swift resolution to minimize disruptions.