For business leaders, Freeland’s wake-up call to the Prime Minister is welcomed

Hello, readers! Welcome back to Business Cycle – a look at what The Globe and Mail’s business columnists are talking about this week. In this edition (the last one of 2024!), we’re talking about Chrystia Freeland’s abrupt resignation as finance minister, Ontario Premier Doug Ford and his proposals for U.S. tariffs and the giant existential crisis ahead for Canada Post.

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Freeland finally says what Trudeau needs to hear as she exits cabinet

By Andrew Willis

Chrystia Freeland abruptly resigned as finance minister and deputy prime minister on Monday in a letter written to Prime Minister Justin Trudeau. The move, which came just hours before she was set to deliver the fall economic statement, sent shockwaves across Ottawa and reignited calls for the Prime Minister to step down.

The exit letter also addresses “the gravity of the moment” – with the existential threat posed by U.S. president-elect Donald Trump’s planned tariffs and persistent productivity problems. Business leaders are grateful to Ms. Freeland for using her exit to help set priorities, writes columnist Andrew Willis , and it’s exactly what they’ve long wanted to hear her tell Mr. Trudeau.

"For business leaders, Ms. Freeland’s wake-up call to the Prime Minister will be welcomed, no matter the motivation and timing. CEOs across the country have long been frustrated by Ms. Freeland’s habit of listening intently to their advice, taking meticulous notes, then doing next to nothing to fix solvable problems. Her resignation on Monday showed the lack of action may have had as much to do with the Prime Minister’s priorities, and those of his all-powerful chief of staff Katie Telford, as it did with Ms. Freeland’s failings."

What do you think of Chrystia Freeland’s sudden resignation? What needs to happen next?  Check out the full opinion piece here.

With Ottawa in chaos, Doug Ford must do better at tackling U.S. trade woes

By Nicolas Lamp

Ottawa is in chaos at exactly the wrong time, writes contributing columnist Nicolas Lamp . Donald Trump’s threat to impose 25-per-cent tariffs on all imports from Canada has understandably rattled Canadians. And that’s not all, with Chrystia Freeland’s resignation as finance minister and Prime Minister Justin Trudeau’s own future in question. 

Mr. Lamp argues that Ontario Premier Doug Ford has been positioning himself recently as the de facto face of Team Canada – but he needs to do better.

"Instead of reassuring Canadians with a well-thought-out strategy, Mr. Ford, the premier of Canada’s largest province, has been coming up with proposals that sacrifice Canada’s long-term interests for short-term effect. Mr. Ford was the first to suggest that Canada should exclude Mexico from trade talks and pursue a bilateral deal with the United States instead. He has now followed up with a slate of threats that include reasonable ideas but also politically counterproductive and economically harmful ones – and it is the latter that have been making headlines across the United States."

Do you think Doug Ford’s recent proposals are helping or hurting Canada’s position with the United States? Check out the full opinion piece here.

Behind the strike is a giant existential crisis for Canada Post

By Steven Tufts

The Canada Post strike came to an end earlier this week after Ottawa directed the Canadian Industrial Relations Board to declare an impasse and order striking workers back to their jobs as of Tuesday. Canada Post has warned that customers should expect delays as it works through big backlogs, which will likely persist into the new year.

The Crown corporation and its union are not simply negotiating over how to provide mail service with specific wages and benefits, writes contributing columnist Steven Tufts . There is a much more fundamental issue – struggling over what services the post office should deliver in the wake of declining letter delivery.

"It is challenging enough to negotiate a contract over how to deliver something for an agreed-upon wage. But how can Canada Post and CUPW negotiate wages and working conditions when the future of postal delivery is no longer clear? We need a public debate over Canada Post and the services it will provide that extends beyond the bargaining table or any limited inquiry… A new direction for the post office needs to be decided democratically to ensure the institution’s long-term viability as a service and an employer."

Do you have a changed opinion about the Canada Post negotiations? Check out the full opinion piece here.

More business headlines we’re following this week: 

• Welcome to the $100-million club: With dozens of scaled-up tech companies, Canada is poised to deliver a wave of quality IPOs
• This retiree’s TFSA grew to $1.2 million but a mistake kept it from going even higher
• Ottawa has yet to pass the law to raise the capital gains tax. What it means for your 2024 taxes

The Globe's business opinion pieces are commissioned and edited by Ethan Lou. If you would like to write in this section, please send pitches to elou@globeandmail.com. 

Thank you for reading! We are taking a little holiday break, but will be back in the new year (on Jan. 9) with another Business Cycle roundup.

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