Table of Contents

Economic Review & Forecast
Management Minute
Feature Article
Legal Corner

Scotia Bank Group, Global Economic Research

Scotia Ecnomics has lowered it's forecast for U.S. output growth this year and next to 1.9% and 2.2% respectively. The spreading financial fallout in the wake of the subprime mortgage crisis will exacerbate the housing-induced slowdown already underway, forcing additional downward adjustments in consumer expenditures and ‘big-ticket’ purchases. The pace of U.S. activity should be materially weaker later this year and through the first half of 2008, with household spending power further constrained by the slide in both home and equity values.

• The tightening in financial market conditions stemming from the repricing of risk, the widening in interest rates spreads, and the implementation of more cautious lending practices in the United States will have a moderating effect on business spending as well. Exports to an expanding global economy, along with continuing service sector growth, will underpin the U.S. economy’s slower momentum.

• We expect the Federal Reserve to cut rates three times — 25 bps at each of its Sept. 18th, Oct. 30/31st, and Dec. 11th FOMC meetings — in response to the recurring financial market volatility, tightening in lending standards and credit conditions, and spreading economic weakness. The moderation in domestic demand will have a saluatory effect on overall inflation pressures, keeping U.S. core inflation trends around the Fed’s 2% comfort level.

• The flight to quality during this period of financial stress has pushed Treasury bond yields sharply lower and the US$ modestly higher. With the U.S. economy losing momentum and the Fed's expected to ease more aggressively, some further modest declines in Treasury bond yields are likely by year-end. However, currency markets are expected to remain very volatile, with the US$ likely to resume its multi-year weakening trend against the major overseas currencies. Longer-term borrowing costs should move gradually higher through 2008 as the greenback’s slide resumes.

• Quarterly real GDP growth estimates have also been lowered in Canada for the remainder of the year and into 2008. Output growth should average 2.5% in 2007 and only 2.3% next year in response to the further compression in export-sensitive manufacturing activity, though the commodity-related boom in the resource-rich regions of the country should persist. Internationally, slower U.S. growth will dampen export activity in many lower-cost countries which have benefited from the outsourcing of goods and services.

• The Bank of Canada has indicated that it will keep its overnight rate steady at 4.5% in view of the financial headwinds sweeping the globe and the changing economic conditions which should relieve some of the upward pressure on Canada’s core inflation rate. While the C$ has lost some ground during this period of exceptional financial market volatility, the loonie is likely to resume strengthening against the backdrop of a renewed weakening in the US$, and continued support from relatively high commodity prices and ongoing fiscal surpluses.

Scotia Capital Economics
From the Global Economic Research Market Trends Newsletter
Printed with Permission
http://www.scotiacapital.com/English/bns_econ/bnsmt.pdf

Leadership

by Cy Charney, President, Charney & Associates Inc.

Leaders are like eagles.  They don’t
flock- You find them one at a time.
- Successories Inc.

Leadership and learning are
indispensable to each other.
- John F. Kennedy

1. Leadership is about influence. If you can influence people, you are exerting leadership.  Hence, anyone can lead in an organization-you do not have to have a title to do so.  In fact, as organizations continue to redefine the way they operate, people are being asked to take more responsibility and initiative-all key leadership attributes.  As you prepare for a leadership role in your organization, measure yourself against these attributes.
2. Leaders have a clear vision of where they are going.  And they don’t keep their vision a secret-they share it with those around them in the hope of mobilizing them to move in the same direction.
3. Leaders are consistent. They are true to their principles and values at all time.
4. Leaders do what they expect of others. They “walk the talk.”
5. Leaders are not threatened by competence. Outstanding peers energize them. And they are quick to give credit to those who have earned it.
6. Leaders enjoy seeing others around them increase their skills and confidence. They share their knowledge to enable colleagues to take on more challenging tasks and responsibilities.
7. Leaders don’t betray trust. They can treat confidential information professionally.
8. Leaders are concerned about getting things done. They don’t get embroiled in political infighting, gossip, and back-stabbing. They encourage those around them to do likewise.
9. Leaders confront issues as they arise. They don’t procrastinate. If something needs fixing, they do it right away, even if it’s uncomfortable. The longer things are left, the more difficult they become.
10. Leaders recognize superior performance. They are generous with praise to the person concerned and to others who should know.
11. Leaders are flexible. They don’t stick to an old position simply because it is more comfortable.
12. Leaders are adaptable. They see change as an opportunity rather than a threat.
13. Leaders are human.  They make mistakes. When they do so, they readily admit it.
14. Leaders learn from their mistakes. They use errors as a way to improve their skills.
15. Leaders enjoy being challenged. They are prepared to take risks and encourage others to do the same.  If they fail, they treat the exercise as a learning experience.
16. Leaders focus on the future, not the past. They anticipate trends and prepare for them.
17. Leaders are open to new ideas. They demonstrate their receptiveness by supporting change.
18. Leaders treat staff members as individuals. They give closer attention to those who need it, and lots of space to those who deserve it.
19. Leaders encourage and reward co-operation within and between teams.
20. Leaders develop guidelines for the team. They enlarge the guidelines as the team becomes willing to accept more responsibility.
21. Leaders change their role according to the demands of the team. For example, they function more as coaches or facilitators when needed.
22. Leaders listen to fellow team members. They don’t interrupt others, and they allow themselves to be influenced.
23. Leaders involve people in finding new ways to achieve goals.
24. Leaders create the opportunity for group participation, recognizing that only team members can make the choice to participate.

Cy Charney, President of Charney & Associates. (905-886-5606, www.askcharney.com), is a leading Canadian management consultant focusing on organizational performance improvement. The above is an excerpt from his book, The Portable Mentor, published by Stoddart.

Chili and Your Intuition:
8 ingredients for making better strategic decisions

by Jeff Mowatt (Customer Service Strategist and Professional Speaker)

As a business owner or manager, what you ultimately rely on most when deciding your company's future, is your intuition. The challenge with so many stakeholders relying on you to make the 'right' decision is ensuring that your instincts are reliable. Effective leaders hone their intuition the way a chef cooks a pot of chili. Like chili, intuition needs to include the right ingredients and then be allowed to simmer a while. Here are eight ingredients for you to stew on.

1. Get customer coaching

Even as a senior executive, you'll end up making better decisions after spending some time at the front line talking directly with customers. Ask them the key question, "What can we do to improve our service?"

2. Listen to those in-the-know

It's an understatement to point out that Sam Walton had good business instincts. Wal-Mart's founder said, "Listen to everyone in your company, especially the ones who actually talk to customers. They really know what's going on out there." 'Nuff said.

3. Ask your competitors - really

I'm not just referring to visiting your competitor's store. If you are in a service industry there may not be a store per se to visit. One of the best ways to learn from the competition is to join your professional trade association. There are associations for virtually every occupation on the planet. I've always found that when it comes to joining a professional association, the more you get involved and contribute to the group, the more you ultimately receive. Give a lot to your association and your competitors will share a lot with you.

4. Read by listening

Business books are filled with great ideas; providing you actually read them. As a time saver, consider buying your books on audio so you can listen while driving. I subscribe to a service that sends me summarized audio recordings of two business books each month. I find myself listening to books I wouldn't otherwise read and I invariably get at least one good idea from every summary.

5. Get some seminar smarts

Some folks seem to think that once they complete their formal schooling, there is no need to continue with their education. That's like exercising in college and then figuring we can sit on the couch for the rest of our lives. Learning isn't an event; it's a lifelong endeavor. Make a practice of attending seminars and training sessions. A bonus of learning with others is that you have the opportunity to exchange ideas, network, and - provided you have a skilled facilitator - end up having some fun and stress relief.

6. Learn the unwritten rules

You may have a wonderful new idea for your company, but if it clashes with the culture, you'll soon face resistance and subversion. Savvy individuals learn where the company has come from so that they can reinforce and uphold closely held values as they introduce change.

7. Clarify your code

We all read the headlines of high profile managers facing criminal charges. Apparently, their primary moral code is maximizing short term profits at all cost. Increasingly, individual managers are being held personally accountable by shareholders, government regulators, and consumers for their ethics. When making strategic decisions, ask yourself, "Is this the right way to conduct our business?" I found that since I clarified my personal values and priorities, my business decisions aren't always as expedient, but they certainly are better for my reputation over the long term. Over the long term, your personal reputation is everything.

8. Get smarter by going slower

When it comes to honing your intuition, keep in mind one of the great myths in business that you need to fill every waking moment with activity. Patricia Katz is a professional speaking colleague and friend who speaks and writes about the value of giving yourself, "Permission to Pause." After attending her presentation, it occurred to me that those individuals, particularly managers, who slow down and reflect are often the most creative, adaptive, and, ironically, productive. Think of the leader from the employee's perspective. Who would you rather work for? A person who's running frantically where everything is an emergency, or someone who seems to be in control, has a sense of perspective and a clear idea of the direction to take the company? Perhaps it's time to give yourself, "Permission to Pause."

This article is based on the critically acclaimed book Becoming a Service Icon in 90 Minutes a Month, by customer service strategist and professional speaker Jeff Mowatt.  To obtain your own copy of his book or to inquire about engaging Jeff for your team, visit www.jeffmowatt.com or call 1.800.JMowatt (566.9288).

Factors in determining when a pre-employment test is a medical examination

by Yosie Saint-Cyr, LL.B. Managing Editor at HR Infodesk.com---Canada Payroll and Employment News

Under human rights legislation across Canada, an employer may require a medical examination of an applicant only after the applicant has been given a conditional job offer. In addition, such an examination is required of all individuals offered employment for similar positions, and the examination is not used to discriminate against individuals with disabilities, unless the results show the individual to be unqualified to perform the essential duties of the particular job.

Results of the examination must be kept confidential.

How does it work?

From the outset, candidates should be made aware that sensitive or confidential aspects of their personal lives may be explored. Employers are advised to disclose information about any specific physical/medical requirements of a position (e.g., vision standards for a job), early in the recruitment process (e.g., in the job advertisement).

The employer should check the health of candidates to identify any medical problems that might inhibit work performance, not pre-existing health problems. Applicants should be assessed for their fitness for the job and not on a general determination of their health.

Employers should provide the physician who will conduct the medical test with detailed information about the physical task requirements.

After interviewing each applicant, the employer makes a real offer of employment to successful applicant(s) contingent on their passing both background checks and medical examinations.

This job offer must be in writing.

A job offer is only "real” if the employer has evaluated all relevant non-medical information which it reasonably could have obtained and analyzed prior to giving the offer.

The individual's background check should be completed before the medical examination process.

Bottom line, all employers need to make sure that any inquiries of a job applicant that could be said to be "medical" are only made as the final step of the hiring process, after a conditional offer of employment has been made contingent on nothing other than the results of such inquiries.

Results of the medical examination must be limited to ascertain whether or not the person is capable of carrying out the duties of the job, with or without restriction.

What is a medical examination?

A "medical examination" is a procedure or test that seeks information about an individual's physical or mental impairment or health. At the pre-offer state, an employer cannot require examinations that seek information about physical or mental impairments or health.

It is not always easy to determine whether a test is a medical examination. The following factors may be helpful in determining whether a procedure or test is medical.

• Is the test administered by a healthcare professional or someone trained by a healthcare professional? 
• Are the test results interpreted by a healthcare professional or someone trained by a healthcare professional?
• Is the test designed to reveal an impairment or physical or mental health issue?
• Is the employer trying to determine the applicant's physical or mental health or impairments? 
• Is the test invasive (for example, does it require the drawing of blood, urine or breath)? 
• Does the test measure an applicant's performance of a task, or does it measure the applicant's physiological responses to performing the task?
• Is the test normally given in a medical setting (for example, a healthcare professional's office)?
• Is medical equipment used?

In many cases, a combination of factors will be relevant in determining whether a procedure or test is a medical examination. In some cases, one factor may be enough to determine that a procedure or test is medical. When in doubt, it is wise to consult with your legal counsel.

What about alcohol and drug testing?

Alcohol and drug testing is a form of medical examination.

Alcohol and drug testing is considered a discriminatory practice under human rights law unless an employer can show that there is a bona fide occupational requirement (BFOR) for the testing.

Since drug testing cannot measure actual impairment, pre-employment drug testing should only be conducted in exceptional circumstances. Testing for alcohol can only assess impairment before the person is actually on the job. A positive test cannot predict if an applicant will be impaired while at work.

Pre-employment testing of employees in non-safety sensitive positions is prohibited.

Testing that is a BFOR should only be carried out after an employer has made a written conditional offer of employment. Employers should tell job applicants of the requirement for testing.

Employers recruiting for safety sensitive positions may ask job candidates to disclose present and past substance abuse problems. It is not acceptable to withdraw job offers without considering the duty to accommodate. If the applicant requests accommodation, the employer is required to provide individual accommodation unless it is impossible without causing undue hardship.

By Yosie Saint-Cyr, LL.B., Managing Editor at HRinfodesk.com

Published on HRinfodesk---Canadian Payroll and Employment Law News and Developments

HRinfodesk is an information and news service that is published by First Reference, which includes employment law news for every jurisdiction in Canada, a Library of Articles, FAQs, a Calendar of Events, Important Dates and an HR Internet Directory for expanded research. Our search tools will help you to quickly find results by jurisdiction, topic, date, keyword and article number. For the latest employment law news and a ten day trial, click here.

First Reference is a publisher of Canadian employment law, finance and accounting reference manuals that are comprehensive, updated and practical. Publications include The Human Resources Advisor, Human Resources PolicyPro, Finance & Accounting PolicyPro and the HRinfodesk online information and news service (Bulletin and website). For more information or to purchase one of our publications, go to www.firstreference.com.

This article offers general comments on legal developments of concern to businesses. Every effort has been made to ensure the accuracy and timeliness of this information. These publications are written for informational purposes only and should NOT be relied upon as legal advice or opinions. The reader should always obtain legal advice from a qualified lawyer or other qualified professional, which will be responsive to the case or circumstance of the individual. Please note that the content provided in this article or any content contained in or made available through any third party website linked to from this article and/or HRinfodesk, is provided 'as is' without representations or warranties of any kind. All representations and warranties in respect of Content or Third Party Content, express or implied, including, without limitation any representations to warranties or conditions regarding accuracy, timeliness, completeness, non-infringement, merchantability or fitness for any particular purpose are hereby disclaimed.

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Technical & Logistics

National Distribution Manager, B.A.: Instrumental in helping a  Entrepreneurial growing health care products manufacturing and distribution company grow from $80 Million in sales to $380 Million in sales within 7 years  by implementing a new Oracle ERP system. Increased inventory turns from 5.2 to 7.1 turns per year, resulting in a savings of $14 million and increased customer order fill rates from 84% to 99%, achieving Vendor of Year awards from Walmart and another very large retailer specific to thier business. Has the full background from Production management to Supply Chain Management, strong potential to be VP of Operations in the very near future, natural born leader and very strong communicator

Interested? Please contact:
Silvio Rossi, CPC, Vice President

Electrical Engineer:
Electrical Engineering graduate experienced in PLC controls, programming and hardware. Currently employed as an Instrumentation/Control Field Engineer.  Very outgoing and knowledgeable. 

Interested? Please contact:
Joe Braccia, Senior Consultant

CPG Professional - MBA PEng.:
This Candidate is a Change Leader with loads of experience. She is Strategic, Dynamic and Full of Energy. This candidate is currently employed with a Tier 1 CPG company and wants to make an impact on the bottom line. If you are looking for someone to lead your Supply Chain then she is your Star! She is open to companies in North York, Mississauga and York region.

Interested? Please contact:
Carol Ellen, Consultant