After turning down the proposed deal twice, flight attendants plan on going on strike this Thursday. Air Canada has started preparing for the strike by introducing a “flexible booking policy” where customers can change their reservations for free as long as seats are available. In the event of a strike, they plan on using managers as replacement workers and relying on partnerships with foreign carriers in the case of international flights.

In the proposal, Air Canada planned to improve work rules for “duty days” by introducing a new system to calculate paid times during stopovers. For example, some shifts in layovers can last 13 hours and pay out 6.5 hours of wages, the proposal planned to increase this to 9 hours of paid wages. This work rule would be based on the formula “duty day minus 4 hours” and would be effective October 1, 2012. Despite Air Canada’s efforts, more than 65% of the Canadian Union of Public Employees voted to reject the proposed deal on September 20. Most likely, the federal government will intervene with back-to-work legislation to stop the strike from happening.

There is no question that flight attendants have to work under difficult conditions however I feel like Air Canada proposed a fair deal. A strike will only cause both parties to suffer as Air Canada will lose market share and could go bankrupt (again), thus losing all potential jobs. Flight attendants need to realize how difficult it will be in this economy to find better jobs.

Sources:  http://www.theglobeandmail.com/news/national/air-canada-flight-attendants-could-strike-thursday-after-rejecting-second-deal/article2196189/

With the emergence of shale gas in the U.S. (Canada’s only customer for export), profits in Canada’s natural gas industry have decreased by half but Canada may have found a solution to this problem. Canada has decided for the first time to ship natural gas to buyers in Asia, this $5 billion project started this summer where more than 40,000 cubic meters of hard rock have been excavated at Bish Cove on the north coast of British Columbia. Industry officials believe that Canada has an advantage over its competitors (such as Australia) because shipping times from Kitimat to buyers in Japan, southern Korean and northern China are shorter which will save transportation costs. The Kitimat LNG project is waiting to receive a permit from the National Energy Board. If the Nation Energy Board gives this project the green light, by the end of this decade, 3 billion cubic feet a day of gas could flow through Kitimat.

Exporting to Asia is a great way for Canada to expand its natural gas industry. However this gas export plan will increase Canada’s greenhouse gas emissions and could cause higher energy prices for residential and industrial customers.

Sources:  http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/kitimat-bc-ground-zero-in-the-race-to-fuel-asia/article2195213/

Engineer Bradley Pierik invented a simple to use filtration device that purified water.  Since there is a large market demand for clean water in developing countries, he decided that starting a business would be the best way to distribute his devices.  He had a great idea for a business venture but he didn’t have the business knowledge or connections to turn his idea into reality.   While studying engineering at UBC, he decided to take some business courses at the Sauder School of Business’s Robert H. Lee Graduate School.  After taking a course in technology entrepreneurship, he gained the skills necessary to enter the marketplace.  He started working with the Canadian charity Water School to test his filtration devices in Uganda, the Dominican Republic, Kenya and Haiti, his work quickly attracted the Vancouver business Institute B.  With the help of this institute, Pierik established his company Twothirds Water Inc.  $10,000 in funds has been raised and his company is moving forward with 50,000 to 80,000 units in production.

This case exemplifies how applicable business skills are to everyday life.  No matter how great your idea is, it’s often difficult to pursue a business venture without business knowledge and connections.

Sources:  http://www.theglobeandmail.com/report-on-business/small-business/starting-out/with-no-know-how-how-to-spring-water-filter-device-from-idea-to-creation/article2193471/

(Apple’s Senior Vice President of Worldwide product marketing Phil Schiller discusses the new iPhone 4s at the company’s headquarters in Cupertino, California on October 4,2011)

With the disappointment surrounding the release of the iPhone 4S, rivals to Apple could take a bigger share of the phone market. Even though iPhones are the world’s best selling smart phones, Android phones (Samsung, HTC, LG and Motorola) have a greater combined market share than Apple’s iPhone. Apple’s biggest rivals Samsung Electronics, HTC, and Nokia increased their shares right after the release of the iPhone 4S. Apple’s decision to not launch new hardware gives rivals the opportunity to catch up to Apple’s lead before the iPhone 5 arrives.

Apple plans to keep their lead by lowering the prices of their phones, the iPhone 4 will sell for $99 on a contract and the older 3GS model will be available for free on a contract. Analysts note that Apple’s decision to lower prices will help them expand into the low end smart phone market. Despite the disappointment with the iPhone 4S, Apple will still sell millions of iPhones because Apple has such a strong customer base and brand name.

What do you think of Apple’s decision to lower prices instead of releasing a new phone?

Sources:  http://www.vancouversun.com/business/Apple+stumble+opens+door+rivals+analysts/5506208/story.html#ixzz1a5CuPijQ