Inflation : 40 Year High

[Warhippy]

7 minutes ago, nuckin_futz said:

Keep in mind wages have also been rising quite a bit. Not enough to keep up with the current rate of inflation but it does mitigate some of the price increases.

 

So something that seems like a financial gut punch is more like a light kick in the shins.

But have those wages really been rising across the board or is it just new hires etc?  I'm trying to be positive and optimistic about things but it really seems like that perfect storm is just over the horizon.

[Alflives]

7 minutes ago, nuckin_futz said:

Keep in mind wages have also been rising quite a bit. Not enough to keep up with the current rate of inflation but it does mitigate some of the price increases.

 

So something that seems like a financial gut punch is more like a light kick in the shins.

And so have people's mortgages and debt.  I don't know what the average mortgage is here (and in other expensive places in Canada) but I've heard of people with mortgages over 500,000.  If we see interest rates go up to the 80s and 90s levels (10+ %) these folks are totally screwed financially.  The goverment will need to legislate 100 year mortages so people can stay in their homes and we don't see a complete collapse of the Canadian economy.  

[Gurn]

FWIW- friends at Swartz Bay say that Ferries tried to hire 50 people as casual/on call.

They had 12 applications, and one of those quit before the first day.

Main reason seems to be wages- or lack thereof.

 

[nuckin_futz]

14 minutes ago, Warhippy said:

But have those wages really been rising across the board or is it just new hires etc?  I'm trying to be positive and optimistic about things but it really seems like that perfect storm is just over the horizon.

I would assume across the board. Because if you're in an existing job where your wages are not rising, why woulddn't you quit and become one of those new hires for a better wage?

 

10 minutes ago, Alflives said:

And so have people's mortgages and debt.  I don't know what the average mortgage is here (and in other expensive places in Canada) but I've heard of people with mortgages over 500,000.  If we see interest rates go up to the 80s and 90s levels (10+ %) these folks are totally screwed financially.  The goverment will need to legislate 100 year mortages so people can stay in their homes and we don't see a complete collapse of the Canadian economy.  

They should really be in a fixed rate mortgage then shouldn't they? If the economy didn't collapse in the early 80's when rates were north of 18% I would think we'd survive this time as well.

 

8 minutes ago, gurn said:

FWIW- friends at Swartz Bay say that Ferries tried to hire 50 people as casual/on call.

They had 12 applications, and one of those quit before the first day.

Main reason seems to be wages- or lack thereof.

 

Just looked it up. The average wage there seems to be about $25/hr. That's about $9/hr above minimum wage. Ummm what are these people looking for?

Edited March 22, 2022 by nuckin_futz

[Gurn]

6 minutes ago, nuckin_futz said:

Ummm what are these people looking for?

More money for doing a job that requires way more qualifications and certificates than people starting at Denny's, would be my thought.

[I.Am.Ironman]

Has anyone asked for a wage bump to match inflation? I know my income hasn't changed.

[nuckin_futz]

3 minutes ago, gurn said:

More money for doing a job that requires way more qualifications and certificates than people starting at Denny's, would be my thought.

Asking because I honestly do not know. What qualifications and certificates are required to be a Customer Service Rep or an Attendant?

[nuckin_futz]

Just now, I.Am.Ironman said:

Has anyone asked for a wage bump to match inflation? I know my income hasn't changed.

You should ask for one. With a lack of workers you have significant bargaining power at the moment. Especially if you're a valuable employee.

[Warhippy]

6 minutes ago, nuckin_futz said:

I would assume across the board. Because if you're in an existing job where your wages are not rising, why woulddn't you quit and become one of those new hires for a better wage?

 

They should really be in a fixed rate mortgage then shouldn't they? If the economy didn't collapse in the early 80's when rates were north of 18% I would think we'd survive this time as well.

 

Just looked it up. The average wage there seems to be about $25/hr. That's about $9/hr above minimum wage. Ummm what are these people looking for?

I only ask because my wife is and has been with the same company (Telus) for years after her company was bought by them.  Her average, annual increases are honestly less than 1.6% and she has looked and can start a new position, same work in a different company; corporation with benefits for almost $14k more a year.  There's a lot of stories floating out around just that in which people giving years aren't getting anything back so they risk their job security for more pay and it either works out; or it doesn't and it leaves people jobless without benefits.  So my question about it being across the board, is; is it really that universal?  I know that my wifes annual increases seem to be in keeping with inflation but they're really not.

 

For fixed mortgages, I am 100% locked in for another 4 years and was hoping to be able to renegotiate this year but couldn't.  Am not allowed.  Will be very interesting seeing where people are in regards to their mortgages and these price increases.  Day to day as well as month to month

 

With BC Ferrys, 100% I'd be taking that job.  It's honestly not a hard position.  I know a number of people who work it and while it's not the "greatest" paying, there are major breaks for using the ferry system for them, government position which includes all the associated benefits and ATO's as well as some of the best year to year wage increases.  

[Alflives]

10 minutes ago, nuckin_futz said:

I would assume across the board. Because if you're in an existing job where your wages are not rising, why woulddn't you quit and become one of those new hires for a better wage?

 

They should really be in a fixed rate mortgage then shouldn't they? If the economy didn't collapse in the early 80's when rates were north of 18% I would think we'd survive this time as well.

 

Just looked it up. The average wage there seems to be about $25/hr. That's about $9/hr above minimum wage. Ummm what are these people looking for?

We didn't see average home owners with 500,000 dollar mortgages in the 80's.  People could afford their payment, even with the high rates.  

And aren't mortgage rates locked in for five years?  What do those people do when the term is up and the rate they started with was 3% and now (after five years) they see it's 11%?

If interest rates climb like they did before our economy is done.  People will be handing their house keys over to the banks.  Housing prices will collapse.  

Maybe that's a good thing in the long run though?  Like a big reset for the economy so young folks can afford houses again?  The million dollar home will be 100,000?

[Alflives]

4 minutes ago, I.Am.Ironman said:

Has anyone asked for a wage bump to match inflation? I know my income hasn't changed.

I heard on NW 980 that the public sector employees here in BC have all their deals up, and are asking for big raises.  15% over three years kind of raises.  

[Gurn]

2 minutes ago, nuckin_futz said:

Asking because I honestly do not know. What qualifications and certificates are required to be a Customer Service Rep or an Attendant?

On the ship:

Sea Farers Medical, cost $750, the employer pays for renewals, afaik not for the one you need to be hired

Passenger Safety Management course- how to respond and deal with  potentially panicked passengers, in the event of emergency

O.F.A  level 3- not for everybody, but a few have to have it to do the First Aid Attendant job, generally a catering gig; unless you are Northern Vessel in which case a deckhand will hold the spot

O.F.A. level 1- used to be for everyone.

Marine Emergencies duties A1and A2

WHIMS

The ordinary Food Safe- for galley/catering work

 

Deckhands will need

Marine Emergency Duties  A1, A2, B1 and B2- -comprises Marine Fire Fighting, Rescue boat training etc.

Bridge Watchman Certificates

Dangerous Goods

Rescue Survival Craft Course

Marine Medical- plus colour/vision test. 

 

And I'm likely missing a few.

 

 

 

 

[I.Am.Ironman]

11 minutes ago, nuckin_futz said:

You should ask for one. With a lack of workers you have significant bargaining power at the moment. Especially if you're a valuable employee.

I have previously but unfortunately it has been no bueno because in my industry it is % of billings. My percentage is at an industry standard rate but my clinic owner charges below average prices (compared to the rest of BC) - so naturally I asked for him to raise prices. He isn't keen because 'that's the way it has been here and it limits access to health care for some members of the community'. It's a tough situation because the only other clinic in town has comparable prices. I don't plan on staying for long.

7 minutes ago, Alflives said:

I heard on NW 980 that the public sector employees here in BC have all their deals up, and are asking for big raises.  15% over three years kind of raises.  

That's interesting.. half of my profession works in public health care (I'm private).

[Gurn]

17 minutes ago, Warhippy said:

some of the best year to year wage increases

If Ferries have been getting some of the best year to year wages-I weep for everyone else.

 

 

 

 

 

[nuckin_futz]

32 minutes ago, Warhippy said:

I only ask because my wife is and has been with the same company (Telus) for years after her company was bought by them.  Her average, annual increases are honestly less than 1.6% and she has looked and can start a new position, same work in a different company; corporation with benefits for almost $14k more a year.  There's a lot of stories floating out around just that in which people giving years aren't getting anything back so they risk their job security for more pay and it either works out; or it doesn't and it leaves people jobless without benefits.  So my question about it being across the board, is; is it really that universal?  I know that my wifes annual increases seem to be in keeping with inflation but they're really not.

 

For fixed mortgages, I am 100% locked in for another 4 years and was hoping to be able to renegotiate this year but couldn't.  Am not allowed.  Will be very interesting seeing where people are in regards to their mortgages and these price increases.  Day to day as well as month to month

 

With BC Ferrys, 100% I'd be taking that job.  It's honestly not a hard position.  I know a number of people who work it and while it's not the "greatest" paying, there are major breaks for using the ferry system for them, government position which includes all the associated benefits and ATO's as well as some of the best year to year wage increases.  

In the last 10 years inflation was very tame. Probably in the region of that 1.6%/yr raise your wife was getting. Central banks generally want it in the 2%/yr range. When wages are indexed to inflation there is going to be a lagging effect in the wages catching up to the inflation because it's calculated annually.

 

Yeah as mortgages come due and get re-upped it will be interesting to see where rates are. Since 1993-present the average interest rate in Canada was about 4.5%. I don't think many are properly positioned for something like that.

 

31 minutes ago, Alflives said:

We didn't see average home owners with 500,000 dollar mortgages in the 80's.  People could afford their payment, even with the high rates.  

And aren't mortgage rates locked in for five years?  What do those people do when the term is up and the rate they started with was 3% and now (after five years) they see it's 11%?

If interest rates climb like they did before our economy is done.  People will be handing their house keys over to the banks.  Housing prices will collapse.  

Maybe that's a good thing in the long run though?  Like a big reset for the economy so young folks can afford houses again?  The million dollar home will be 100,000?

True, mortgages were certainly not that large but by the same token neither were wages. It's all kind of relative. With the caveat that increases in home prices have outpaced wage gains. If people could afford mortgage payments of 18% back then but can't afford rates of +2% now then there is something seriously wrong.

 

If their rates jump that much they will become sellers. If they have been in for 5 years chances are they are sitting on some pretty gaudy equity gains. Time will tell but in the end the system will sort itself out.

 

18 minutes ago, gurn said:

On the ship:

Sea Farers Medical, cost $750, the employer pays for renewals, afaik not for the one you need to be hired

Passenger Safety Management course- how to respond and deal with  potentially panicked passengers, in the event of emergency

O.F.A  level 3- not for everybody, but a few have to have it to do the First Aid Attendant job, generally a catering gig; unless you are Northern Vessel in which case a deckhand will hold the spot

O.F.A. level 1- used to be for everyone.

Marine Emergencies duties A1and A2

WHIMS

The ordinary Food Safe- for galley/catering work

 

Deckhands will need

Marine Emergency Duties  A1, A2, B1 and B2- -comprises Marine Fire Fighting, Rescue boat training etc.

Bridge Watchman Certificates

Dangerous Goods

Rescue Survival Craft Course

Marine Medical- plus colour/vision test. 

 

And I'm likely missing a few.

 

 

 

 

When you first mentioned it you didn't mention what time of openings there were. I just did a quick looky-loo and saw some CSR and attendant jobs available. Obviously those don't require much in the way of qualifications. I guess if it's the qualifications that are a sticking point in why they can't attract candidates then they will have to provide/pay for people to get those qualifications.

 

So if those are the types of job vacancies is it a matter of inadequate pay or a matter of no qualified candidates?

 

17 minutes ago, I.Am.Ironman said:

I have previously but unfortunately it has been no bueno because in my industry it is % of billings. My percentage is at an industry standard rate but my clinic owner charges below average prices (compared to the rest of BC) - so naturally I asked for him to raise prices. He isn't keen because 'that's the way it has been here and it limits access to health care for some members of the community'. It's a tough situation because the only other clinic in town has comparable prices. I don't plan on staying for long.

That's interesting.. half of my profession works in public health care (I'm private).

That is a tough situation. Hopefully your next gig is more suitable.

[Russ]

3 hours ago, I.Am.Ironman said:

Has anyone asked for a wage bump to match inflation? I know my income hasn't changed.

 

Got one more year until contract negotiations at my work.  I have already talked to our rep and told him I want in on the negotiations and our rep is gonna get a strip ripped off him if he bends us over again like last time. 

[Russ]

3 hours ago, Alflives said:

We didn't see average home owners with 500,000 dollar mortgages in the 80's.  People could afford their payment, even with the high rates.  

And aren't mortgage rates locked in for five years?  What do those people do when the term is up and the rate they started with was 3% and now (after five years) they see it's 11%?

If interest rates climb like they did before our economy is done.  People will be handing their house keys over to the banks.  Housing prices will collapse.  

Maybe that's a good thing in the long run though?  Like a big reset for the economy so young folks can afford houses again?  The million dollar home will be 100,000?

Im about to sign papers to lock into a big bleeping mortgage.  Atleast there will be a rental to take away majority of the mortgage.

 

We think its massive, we get paid decent too.  Our realtor said this is going to be one of the smallest mortgages he's written in the last 6 months so I wouldn't even want to know how strung out others are.

Edited March 22, 2022 by Russ

[Warhippy]

6 minutes ago, Russ said:

 

Got one more year until contract negotiations at my work.  I have already talked to our rep and told him I want in on the negotiations and our rep is gonna get a strip ripped off him if he bends us over again like last time. 

My wife found a position similar to hers that pays almost $15k a year more at a local company.  She is the sole/single billing agent for the entire BC region for Telus security.  She literally deals with billing, invoicing and basic accounting and has forwarded her request for a pay increase to her manager.

 

They literally have nobody in BC that does her job as their Alberta contingent is 14 different people.  if she walks, the entire BC billing department falls apart with her.

 

The last time she requested an increase in pay, she was denied.  It will be interesting to see what happens now.

[Alflives]

2 hours ago, nuckin_futz said:

In the last 10 years inflation was very tame. Probably in the region of that 1.6%/yr raise your wife was getting. Central banks generally want it in the 2%/yr range. When wages are indexed to inflation there is going to be a lagging effect in the wages catching up to the inflation because it's calculated annually.

 

Yeah as mortgages come due and get re-upped it will be interesting to see where rates are. Since 1993-present the average interest rate in Canada was about 4.5%. I don't think many are properly positioned for something like that.

 

True, mortgages were certainly not that large but by the same token neither were wages. It's all kind of relative. With the caveat that increases in home prices have outpaced wage gains. If people could afford mortgage payments of 18% back then but can't afford rates of +2% now then there is something seriously wrong.

 

If their rates jump that much they will become sellers. If they have been in for 5 years chances are they are sitting on some pretty gaudy equity gains. Time will tell but in the end the system will sort itself out.

 

When you first mentioned it you didn't mention what time of openings there were. I just did a quick looky-loo and saw some CSR and attendant jobs available. Obviously those don't require much in the way of qualifications. I guess if it's the qualifications that are a sticking point in why they can't attract candidates then they will have to provide/pay for people to get those qualifications.

 

So if those are the types of job vacancies is it a matter of inadequate pay or a matter of no qualified candidates?

 

That is a tough situation. Hopefully your next gig is more suitable.

When interest rates go back up (say over 10%) homes that are in the crazy markets will not have the value they do now.  The million dollar home (where so many people have 600,000 dollar and higher mortgages) will be selling for less than the mortgage.  There will be no hiding from the house value crash.  Homes that were worth a million will be worth 100,000.  People will have to sell (banks will force the sales) and there won't be buyers.  The coming high interest rates will kill our economy.  We used to rely of foresty, fishing, mining and these type of industries.  Now we rely on the realestate market going up so we can build homes.  Lots and lots of homes.  It's going to be very ugly.  

[Russ]

1 minute ago, Warhippy said:

My wife found a position similar to hers that pays almost $15k a year more at a local company.  She is the sole/single billing agent for the entire BC region for Telus security.  She literally deals with billing, invoicing and basic accounting and has forwarded her request for a pay increase to her manager.

 

They literally have nobody in BC that does her job as their Alberta contingent is 14 different people.  if she walks, the entire BC billing department falls apart with her.

 

The last time she requested an increase in pay, she was denied.  It will be interesting to see what happens now.

My wife applied for a new job in food, no experience in that field, they gave her a pay raise and all types of stuff to come over.  As much as I love to say stick to a job for a long time, other companies are willing to hire people.  I know my boss just left for a new company, he's wanting to get established in his supervisor role and then bring me along later, he flat out said they pay more and he wants to keep working with me since I don't dog f*** like a lot of others in my field haha.

 

Hip, you should have your wife ask for a reference letter (recommendation? whats it called now?) and see what they say.  Might stoke a little fire under them if all shes asking for a bit of a raise to get in par with other jobs.