Business in Vancouver 2011-06-28 by GLACIER MEDIA DIGITAL LIMITED PARTNERSHIP dba BUSINESS IN VANCOUVER

Local. Business. Intelligence. June 28–July 4, 2011 • Issue 1131

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INSide Mining company digs up payoff with Asian stock exchange 3 Finance minister: leave ownership regulations alone 6

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Popping the question: Should you stay private? Raising money through an IPO has its advantages, but the public scrutiny may not be worth the cost and struggle due to limited investor appetite in Canada 4-5

Printing industry going through process of attrition 7 Company develops X-ray vision 13 Social media know-how for small businesses 16 Lessons to predict your company’s revenue goals 17 Keep your brand out of Internet red light district 19 What to do if your employee was caught in riot footage 21 Lions come out of Whitecaps’ and Canucks’ shadows 30

Small business backing away from contracts >Complex procurement processes and late payments are two reasons why many companies avoid Ottawa >Owners ask themselves if they should bother with preparing a bid or spend time working with contracts they already have By Jenny Wagler and Joel McKay

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onfusing application processes, excessive paperwork and a complex system of rules are causing small and medium-sized enterprises (SMEs) to feel shut out of many federal procurement opportunities. That’s the message in a new report from the Canadian Federation of Independent Business (CFIB). The CFIB says 60% of SMEs in sectors most likely to sell to the federal government either chose not to sell to the federal government or felt it was too difficult and not worth the effort. “I think the impression people have of selling to the government isn’t exactly one that [is] very easy to do, I think that’s obvious,” said Louis-Martin Parent, a policy analyst with CFIB and author of the report. “The problem is it’s really the process behind it, the forms, the number of steps, the hurdles they have to jump to get noticed or put in a competitive bid.” According to the report, 46% of survey respondents rated the quality of government procurement forms “poor.” Meantime, 41% of respondents said they didn’t sell to the federal government because Ottawa doesn’t buy their type of product or service. This while 27% said they didn’t enter the bidding process because it’s too complicated, and 25% said they chose not to sell to the government because they had no means of see Complexity, 7

“We’re back on the Dominic Schaefer

On the waterfront with Mark Keserch 31

growth curve again” – Mario Livich, CEO, Showtimetickets.com

Terrific times for ticket brokers Vancouver Ticket and Tour Service owner Kingsley Bailey’s sales were up 60% in the months leading up to the playoff final see Canucks, 9

Daily business news at www.biv.com June 28–July 4, 2011

contents Columnists Money Business Harry Jaako Real Estate Roundup Peter Mitham High-Tech Office Alan Zisman CEO Advantage Nancy Mackay Public Eye Sean Holman Labour Climate Geoff Meggs Golden Goals Bob Mackin

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YVR to raise profile with live-in storyteller

B.C. retail sales climb for third consecutive month

B.C. Finning workers walk off the job

First Nations get funding for aquaculture training

Crowflight’s Manitoba mine restarts nickel shipments

Canlan scoops Romeoville ice sports complex

Electric vehicle public charging project launched

CHC Helicopter lands major oil and gas contract

Okanagan winemakers expect cool spring will crimp production

Junior miners take defensive stance against market slump

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News

June 28–July 4, 2011 Business in Vancouver

Hong Kong listing benefits British Columbia miner SouthGobi Resources believes its Asian stock listing has paid off in spades, but being the first Canadian company to be listed on the TSX and HKSE required overcoming numerous challenges By Joel McKay

’s mining industry is booming thanks in part to China’s voracious appetite for resources, but few companies have jumped the pond to take advantage of investor interest in Asia’s capital markets. Instead, they’ve relied on the Toronto Stock Exchange, Canada’s battle-tested resource trading platform. Terry Krepiakevich, CFO at SouthGobi Resources (TSX:SGQ; HK:1878), believes a lot of companies have failed to recognize the advantage of having a listing on the Hong Kong Stock Exchange (HKSE). “They don’t understand the value proposition with listing in Hong Kong,” said Krepiakevich. Last year, Vancouver-based SouthGobi became the first Canadian mining company to list shares on both the TSX and the HKSE. The listing not only signalled China’s ongoing interest in Canada’s resource sector, but also the end of a near-three-year process to obtain a listing abroad. Krepiakevich, who Business in Vancouver recently named one of its CFOs of the year, said it was a gruelling process to obtain the HKSE listing but worthwhile in the end. SouthGobi raised $459 million via an international equity offering to expand operations at its flagship Ovoot Tolgoi coal mine in Mongolia. “We believe we couldn’t have done the full $459 million in Canada,” Krepiakevich said. Some of the money stemmed

Dominic Schaefer

SouthGobi Resources CFO Terry Krepiakevich says its took hundreds of man hours and dozens of people for his company to get a listing on the Hong Kong Stock Exchange, but it was worth it

from sovereign wealth funds such as China Investment Corp. (CIC) and Temasek, while Hong Kong institutions and individual investors also played a major role. Krepiakevich said the listing shed new light on the company’s growth story. “We brought attention to the company, and that visibility through the Hong Kong listing process, everybody started to understand the story, and as soon as they understood the story they started to believe in the company.” The road to secure that listing, however, was long and arduous. In 2007, the company realized that because its coal resources were so close to China and would be sold to China, a listing on the HKSE might help it gather the capital it

needed to get its mine up and running. At the time, representatives from the HKSE were travelling back and forth across Canada advertising the benefits of a listing on their exchange.

“We were working 24 hours a day, seven days a week to get this done” – Terry Krepiakevich, CFO, SouthGobi Resources

But B.C.’s 800-odd mining companies were destined to miss out for regulatory reasons. “The significant point they

missed was British Columbia … had not been accepted by the Hong Kong Stock Exchange for listing,” Krepiakevich said. The other problem was that, at the time, SouthGobi didn’t have any revenue, which was a requirement for any listing on the HKSE. On top of that, the HKSE required all listed companies to file their financial reports according to International Financial Reporting Standards (IFRS), which SouthGobi knew little about. The company was used to filing reports according to Generally Accepted Accounting Principles (GAAP). Hoping the benefits would outweigh the short-term pain, the company put its nose to the grindstone and learned IFRS standards. “So we were running two sets of reporting standards … it was really, really tough,” said Krepiakevich. “We were working 24 hours a day, seven days a week to get this done.” Along the way, the company attracted the attention of CIC, which helped SouthGobi raise $500 million in October of 2009. The company also hired Citigroup Global Markets and Macquarie Capital Markets to advise on the listing. Krepiakevich said using investment banks as advisers is key to meeting foreign stock exchange requirements. After hundreds of hours of work and a $14 million listing cost, the company broke down the barriers for B.C. companies and obtained its listing. “They were the first one, so it took much longer than anyone expected,” commented Lawrence

Fok, chief marketing officer at the HKSE. Now that he knows how to get a listing, Krepiakevich believes he could cut the cost of getting listed in half. Be he still has a tough time explaining to people that a dual listing has benefits. One benefit, he said, is that the HKSE is far more liquid than the TSX, and issuers can expect to get higher valuations. Hong Kong’s strengths are liquidity and valuation. Fok said that according t0 Bloomberg, the average daily turnover on the HKSE for the first four months of this year was approximately US$9.8 billion, whereas the TSX is US$6.6 billion. Since SouthGobi launched its HKSE listing, its trade volumes on the TSX have shown substantial increases. But an HKSE listing isn’t for everyone. The exchange refuses to list junior companies, meaning that most of Vancouver’s mining sector wouldn’t make the cut. “We do not allow the listing of junior mining companies or exploration companies as we require a mining company to have at least indicated resources, but we shall review the situation as time goes by,” Fok said. On top of that, Fok said investors in Hong Kong are typically interested in companies that are closely aligned with Chinese growth. In other words, if your assets aren’t in Asia and you’re not selling into Asia, you will have to find a story to attract their investors. But for SouthGobi, the HKSE opened up a world of investment opportunities that allowed the company to pull capital together at a time when lending markets remained tight. Still, the company has no plans to de-list on the TSX. “It’s always going to be Canada first in our world and Hong Kong second,” said Krepiakevich. At press time, SouthGobi’s Toronto shares were valued at $10.44, while its HKSE shares were valued at HKD$82.55. • jmckay@biv.com

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Daily business news at www.biv.com June 28–July 4, 2011

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Go big or stay private for IPO success Evolving capital markets make going public a challenging way to raise funds with investors gravitating toward resource stocks By Richard Chu

tuart Ross readily admits it hasn’t always been easy managing a small, publicly traded company. As if it wasn’t difficult enough to grow a business in a fiercely competitive global market to develop and supply electronic components to the truck and auto industry. But he has the persistent disadvantage of disclosing on a quarterly basis the strengths, weaknesses, risks and financial information of Pacific Insight Electronics Corp. (TSX:PIH). But against the odds, Ross has managed to grow the business he started from the basement of his parents’ house into one of the largest public companies in British Columbia. Pacific Insight became public in 1989 in a reverse takeover, only a few years

after the business began in 1985. Back then, going public seemed like the right thing to do after it had received its first big order from General Motors. The automotive giant naturally questioned if the company would have the financial clout to scale up to larger orders. “It runs a little thin to say we’ve got banking relationships and what have you, so going public was an opportunity at the time, circa 1989, when deals were being done on the old Vancouver Stock Exchange.” He added, “In hindsight, for a company our size, going public probably wasn’t the smartest thing we could have done. “I don’t think a person would do that today. But that’s part of our past and we’re still here, trading on the TSX.”

Myopic investor sentiment limits capital markets for non-resource companies If a company like Pacific Insight were to go public today, its reception on the market would be very different than in the ’80s or ’90s. For many sectors, Canada’s public markets have effectively been closed to them as a source of growth capital. For technology companies in particular, investors have tended to avoid more speculative ventures in the sector following the dot-com bubble bursting around the turn of the millennium. “By and large the public markets have not been particularly attractive for financing tech companies,” said Steve Hnatiuk, an executive limited partner of Vancouver’s Yaletown Venture Partners. “There hasn’t been a lot of appetite in the public market for technology deals

What to do? Investors are looking for growth and trends that underly that growth in order to give them insight into where to put their money

of any sort, outside a few market windows that have opened and closed over the last decade.” The latest market window for tech appears to be in the social media space, if the activity behind the shares of Linkedin (NYSE:LNKD) is any indication. While Linkedin’s share price has

steadily declined from its high following its debut in mid-May, the price has continued to hover above $70 per share, well above its $45 per share IPO price. Other pending IPOs of companies like Groupon, Zynga and Facebook could continue to bolster the financing landscape for tech companies in

both the U.S. and Canada. Andrew Rippy, who is managing director at Pacific Crest Securities, told the audience at this year’s Canadian Venture Capital and Private Equity Association (CVCA) conference, “Investors are looking for growth and secular trends underlying that growth. Linkedin

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News

June 28–July 4, 2011 Business in Vancouver

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Richard Chu

Dominic Schaefer

have a good story to tell and the guy on the other side is guaranteeing you that the deal is done. If you get a best efforts offer, that’s the smell test right there. The guy’s saying it might not happen.”

Alan Hibben, managing director, M&As, RBC Capital Markets: growth-oriented IPOs challenged by “closetindexers” in Canada

Davis Vaitkunas, director, Bond Capital: going public can be the most expensive way to raise growth capital

is a social network and is in a new sector that’s changing the behaviour of professionals. That’s a secular story that’s taking place and makes for a great story.” But Canadian tech firms would have to compete with the country’s solid international reputation as a market into which mining, energy and other resourcedriven companies can readily tap to raise funds from investors. According to the TMX Group’s annual report, more than a third of the 484 new issuers last year on its exchanges were mining-related. More than 10% of IPOs were in the oil and gas sector. Overall, nearly half were resource-related issuers. Only a relative handful was technology issuers in 2010. “In terms of investor sentiment, the tech sector and the clean-tech sector comes second to the resource sector,” said Lee Davis, managing director of PwC Corporate Finance in Vancouver. “Canada has become viewed as a resource market, as it was back in the ’50s. It’s not that we don’t have a great tech sector, but the window for investors is huge for the resource side, where investors are pouring in.”

would ideally be done at a later stage in the company’s development where companies are looking for tens of millions of dollars to take their company to the next level. The attractiveness of the offering will be driven by a combination of factors: • the market size they’re going after; • the current revenue and revenue growth potential of the business in the near term; • how novel is their product or service offering; • what the competitive landscape looks like; and • will the markets reward the company with premium multiples if they achieve their targets? “Large-cap market offerings should drive a high-potential company to a position of market leadership in a big market.” Until then, companies have a variety of sources of capital available to them, from angel investors and venture capital firms to alternative lending sources like mezzanine financing. While each alternative has its own set of costs and benefits, most are generally less expensive than going public (see “Beyond the Storm” – issue 1109; January 25-31).

Concrete rapid-growth plans needed for succesful IPOs For a non-resource company to have a genuinely successful IPO, most industry professionals agree that a business needs to have a solid growth plan in place to attract an investor’s eye. Davis noted the company not only has to have a management team that understands what it takes to be a public company, it needs to have a sound business growth plan that has a hockey-stick-like earnings growth curve. Hnatiuk said an IPO

Know whether there’s a market for your business Given evolving market sentiment, Davis Vaitkunas, director at Bond Capital, said entrepreneurs need to carefully consider the timing and size of a company’s public debut, because you only get one chance to make your entrance. He argues growing companies should have at least $10 million in EBITDA (earnings before interest, taxes, depreciation and amortization) before thinking about raising money on the public capital markets.

Lee Davis, managing director, PwC Corporate Finance: tech and clean-tech fall second fiddle to resource IPOs by investors

“Don’t forget, the public market is a beauty contest. You can be a great company with great fundamentals and still get no interest from the market. It’s not like a report card where you get rewarded for being profitable. You get rewarded for having a sexy story as much as anything.” Going public at t he wrong time, or even at the wrong price per share, can be detrimental in the long run for a company. Small public companies, especially those under $100 million in market capitalization, run the risk of becoming public orphans, where a company bears all the costs of being public but garners little, if any, public attention by analysts and investors alike. “As a general rule of thumb, if you’re going public for less than $100 million, you’re either crazy, have a huge ego or someone has talked you into it who is a very good sales guy. You have to know that even if you have $100 million market cap, you’re still at the small end of the game for institutional investors and analyst coverage that counts. Heaven forbid you are under $50 million market cap.” Vaitkunas noted the smaller the IPO, the higher the process of going public will cost, making it less beneficial for company owners and key shareholders who have decided to go public. He noted it can cost millions to go public in listing, registration, audit, legal and other fees, and companies will have to pay those costs on an ongoing basis once they’re public. Those that have decided to go public should also find out if their offering will be done on a “best efforts basis” or is a “firm offering.” “If you’re getting a firm commitment offer from an underwriter, it means you

Conservative Canadians limit market for venture companies For any company looking to go public, it will be vital to understand the dynamics of the market it will be trading in. Davis noted the IPO market has become global and it’s important to consider what exchanges will have investors most attracted to a company’s offering. Luxury fashion icon Prada, for one, plans to list in Hong Kong rather than on a European exchange because the region where it expects its future growth to be in is Asia. Companies looking to list in Canada will have to contend with a more conservative investor on both the retail and institutional sides of the market. Alan Hibben, managing director of mergers and acquisitions at RBC Capital Markets, noted at the CVCA conference that many institutional investors

don’t stray too far from the TSX60 index, thus excluding many growth-oriented companies in the tech and cleantech sectors. Retail investors have also come to expect dividends and distributions, having become accustomed to a steady stream of income stemming from the income trust market that created an IPO boom in the mid-2000s. Once a company is public, fulfilling the plan is key For Ross, the past 22 years as a public company have been challenging, but they have also led to some significant business developments that might not have happened otherwise. “It still offers [us] liquidity, and offers us an active board of directors, including Stuart McLaughlin [president of Grouse Mountain Resort], Gary Sutherland [former vice-president of RBC Private Counsel] and our chair, Cowan McKinney [deputy chair of Western Pacific Trust Company]. We probably wouldn’t’ have been able to attract them had we not been a public company.” • rchu@biv.com

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News

Daily business news at www.biv.com June 28–July 4, 2011

Falcon cautions against tampering with foreign property-ownership rules By Richard Chu

evin Falcon is against limiting foreign ownership of residential property in B.C., despite anecdotal evidence foreign buyers

are running up the price of single-family homes in Vancouver and the Lower Mainland. Speaking on the sidelines of Whistler’s first economic symposium, B.C.’s finance

minister told Business in Vancouver any such moves would send the wrong signal to global investors. He noted, “We heard the same thing in the ’80s and ’90s when Chinese investors

started coming from Hong Kong, Taiwan and later Mainland China. There’s a bit of that talk, but we have to be careful there, because we are an open trading economy. We welcome

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people and money from around the world and B.C. has benefited from that. Our exports to Asia have gone up 77%. That is a big boon for B.C., and we want to be careful not to give the message that ‘We welcome some of your investment, but not all of it.’” He suggested that as Vancouver continues to grow in stature as a world-class city, the region will continue to face similar challenges in other major centres around the world, including having very expensive real estate. “What we can do is give people the help they need by providing rent supplements for people on low income,” he said. “We’ve invested in record levels of social housing to create affordable housing for those with specific challenges, whether it’s mental health, drug addition, what have you.”

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While affordability will remain an issue in the Lower Mainland, we will have to adjust to the market realities as they unfold. “Vancouver is a great city, but I moved to Surrey because that’s where I can afford to live,” he said. “I think, though, you’ll see Burnaby, north Surrey and other regions act as major centres that will help provide different kinds of housing at different price levels that might allow people to live a SkyTrain ride away from the heart of Vancouver.” Housing affordability, however, remains a tertiary focus in the short term for Falcon. Since he became finance minister in March, replacing Colin Hansen, his priority has been convincing British Columbians of the merits of the HST.

Richard Chu

B.C.’s finance minister suggests little can be done to prevent declining housing affordability in Metro Vancouver

Kevin Falcon, B.C. finance minister: wants to protect growing Asian export market

While polls suggest people are warming to the idea of a 10% HST by July 1, 2014, if the tax survives the mailin referendum, he admitted the race will remain very tight despite spending millions of dollars to provide information through media buys and mail-outs to voters. The move has been derided as blatantly unfair by anti-HST crusaders, however, Falcon noted the province has a lot of work to do to correct the “f lagrantly wrong” information that persists in the public realm. Among them is the loss of provincial control over tax policy. “I keep hearing people calling in to radio stations saying we’re giving up our economic sovereignty because of the HST. I’m sorry, this borders on mental disassociation, because we’ve been having our federal government do our corporate income taxes and personal income taxes for decades in B.C. Even under Bill VanderZalm as premier, I don’t remember him saying how terrible it was that we ‘gave away our tax sovereignty’ to the CRA. “I still have not heard any coherent argument as to why it actually makes sense to go back, because it doesn’t exist. But part of the problem is, we vacated the floor for two years and didn’t provide any information to the public. In that vacuum, we had these great economic thinkers like Chris Delaney and Bill VanderZalm out there putting out information that was flagrantly wrong and continues to be.” • rchu@biv.com

News

June 28–July 4, 2011 Business in Vancouver

Richmond print house seeks investors Printers seek fresh strategies to counter financial difficulties in the face of the recession’s impact. As market contracts, those who are doing well are identifying niche opportunities that play to their strengths By Glen Korstrom

xecutives at some commercial print shops are saying they need struggling companies to close in order for the sector to improve its health. Richmond’s 3S Printers Inc. obtained creditor protection in January although that was suspended in May, prompting rumours of the 20-year-old company’s immediate demise. “We’re not closed,” 3S president Dave Sandhu stressed to Business in Vancouver June 22. He is in discussions with several potential investors whom he did not want to name until he finalizes details. Print jobs continue as normal and no staff members have been laid off. “I can’t disclose anything yet. Discussions are going on. There are a lot of options going on at the moment,” Sandhu said. B a n k r uptc y t r u s te e and insolvency consultants Boale, Wood and Co.’s website contains documents that show 3S owes more than $13.8 million to dozens of creditors, including: •CIT Financial Ltd. ($3.67 million); •Sukdev Singh Sandhu ($3.14 million); and •KBA Canada Inc. ($2.82 million). “Those who overleveraged

Dominic Schaefer

Pacific Bindery Services general manager Kris Bovay

just before the recession are feeling the pain now,” said Nikos Kallas, who is president of the 34-year-old Metropolitan Fine Printers Inc. “The problem with the industry is that demand has definitely contracted. Having said that, there are opportunities such as packaging. People still need interesting techniques and finishings to catch consumer attention,” he said.

Kallas and fellow printing-sector executives such as Teldon Media Group CEO Michael McAdam believe the sector would be healthier if a few companies went belly-up. “We’re waiting for other players in the market to give up and say ‘uncle’ so that we can all stay in business,” McAdam said. “There are too many printers [in Metro Vancouver]. For certain, that’s true from

a demand point of view. There’s obviously less and less demand.” McAdam’s strategy to survive has been to grow his 250-employee firm’s publishing and marketing divisions while shrinking its printing operations. He sold a small sheet-fed printing press last year, and one of his two remaining presses is idle much of the time. Job cuts in his printing division have largely been counterbalanced with hires in his publishing and marketing divisions. Teldon’s revenue from printing has dropped from about 55% of $88 million in overall sales in 2007 to 48% of about $85 million in overall sales in 2010. McAdam aims to shrink printing’s share of overall revenue to 40% in the next few years. Teldon publishes the 200,000-copy Alive and, with a partner, launched an Australian edition of that monthly nutrition magazine in 2008. That spurred publishing revenue to increase from 15% of overall sales in 2007 to 20% last year. McAdam wants to grow that division to 25% of total revenue in the near future. Teldon’s remaining revenue comes from producing marketing materials such as calendars and direct mail for

Complexity: Some contracts are hundreds of pages long from Small, 1

determining what the government wanted. On top of that, nearly 65% of respondents who did sell to the government said it took between 30 and 60 days to receive payment for their work. “Small businesses must pay their suppliers and their staff promptly, which they cannot do if the government consistently delays its payments beyond 30 days,” the report said. Parent said the complexity of the bidding process and the fact that payment is often late puts SMEs in a tough spot. “Some of these contracts are hundreds of pages long … do I prepare that bid and hope it works out? Or do I spend my time working with contracts I already

have and managing my business? It’s very tough,” said Parent. Burnaby-based manufacturer Williams and White Inc., one of the Lower Mainland’s premier machining shops, often doesn’t bother with federal contracts. “To be honest it was a little bit complex,” CEO Justin Williams said of the procurement process. Over the years, Williams and White has manufactured machinery for forestry companies and even built the SkyTrain’s first self-propelled rail grinder in the mid-1980s. In the recent past, the company successfully bid on contracts for both BC Hydro and Metro Vancouver, a process that Williams said was relatively smooth.

One of the biggest challenges Williams sees with the federal procurement process is connecting with the right people in Ottawa. “That’s the nice thing about dealing with the private sector … in the end, once you find the right procurement person, you deal with that person or that team,” Williams said. Parent’s report tabled several recommendations for Ottawa to clean up the procurement process. To ensure that small businesses can “fully and fairly” participate in the procurement process, the CFIB recommends that government:  •rethink the procurement bidding process from a small-business perspective and enhance bidding flexibility;

•review the practice of “mega-contracts” to ensure maximum competition and savings; •make the procurement process an integral part of any red tape reduction inititiave; and •enhance communication between the bidder and end user. Parent added that websites such as www.buyandsell.gc.ca, the government’s “user friendly” procurement website, have improved the process somewhat in recent years, but there’s still a long way to go. “In fairness, procurement is a tough area,” said Parent. “I don’t think we’ll ever get to a point that everyone will be happy with it, but in the end, small business just wants a fair shot at it.” • jmckay@biv.com

small-business owners wanting to raise their profiles. “If I was just a printer, man, I’m not sure how we’d be doing,” McAdam said. “It would be a much tougher time. Printing is a pennypinching business. It’s capital intensive and there’s too much supply in the market.”

“We’re waiting for other players in the market to give up and say ‘uncle’ so that we can all stay in business” – Michael McAdam, CEO, Teldon Media Group

Niche businesses that cater to the sector, such as Pacific Bindery Services, however, have been doing OK. General manager Kris Bovay said her venture, which folds, cuts, stitches and binds printed documents, had its best year in 2007. It then suffered two years of sales declines before work related to the 2010 Olympics helped last year’s bottom line. The recent Vancouver Canucks playoff run also provided a bit of a bump. The binding company’s

2011 sales, however, are set to be far short of matching its record 2007 year, which was partly spurred by demand from customers who had work printed at the Quebecor World plant on Marine Drive. When that plant closed, many of those print jobs went to Teldon while others left the city and went to Quebecor’s now-closed Edmonton plant and then to its Toronto facility. When products are printed in Toronto, they are unlikely to be bound in Vancouver, Bovay explained. “Some might argue that there’s too many printers in Vancouver but there’s certainly a sense of community among the group that’s here,” Bovay said. “ Nobody wants to see anyone go under. We’d all like to be thriving and healthy and competing the way we have for years.” It was in that spirit that Bovay agreed earlier this year to continue to provide binding services for 3S even though her company is an unsecured creditor owed $10,456. “We did require that [Sandhu] make what we considered adequate provision to pay. We don’t have any new debt with him and we did do some work,” Bovay said. • gkorstrom@biv.com

Residential Development Land & Golf Course Purchase Opportunity The Falls Resort, Chilliwack, BC PricewaterhouseCoopers Inc. (the “Monitor”), in its capacity as Court appointed Monitor of Blackburn Developments Ltd. (“Blackburn”) is seeking offers to purchase Blackburn’s assets, namely The Falls Resort in Chilliwack, BC. Highlights of this unique opportunity include: • Seventy-one acres of development land zoned for mixed use residential and commercial development • Located in the Eastern Hillsides of Chilliwack featuring sweeping views of the Fraser Valley • 162 acre championship golf course described as one of “The Top Ten Hidden Treasures in Canada” Prospective purchasers should contact PricewaterhouseCoopers Inc. at 604 806 7775 or by email at blackburn@ca.pwc.com to obtain further information.

Daily business news at www.biv.com Business in Vancouver June 28–July 4, 2011

Nominations closing soon! Previous winners:

Deadline: June 30th, 2011

fter 20 years, Business in Vancouver continues to find 40 outstanding young business professionals worthy of the Forty under 40 distinction each year.

Forty under 40 celebrates the depth of business talent in British Columbia, from the rising stars of the corporate world to successful entrepreneurs, and non-profit leaders. Winners are chosen based on such values as achievement, experience, innovation, vision, leadership, and community involvement. By nominating some one for BIV’s Forty under 40, you are supporting and developing today’s young business leaders. Winners of BIV’s Forty under 40 have gone on to shape our city and our province in many different ways!

Go to www.biv.com/40under40 to submit a nomination.

Sponsored by:

Avtar Bains – 1990 Peter Busby – 1991 Glen Clark – 1991 Rick Hansen – 1991 Susan Mendelson – 1991 Bev Briscoe – 1992 Bob Rennie – 1992 Arthur Griffiths – 1993 Chip Wilson – 1993 Sam Hirji – 1994 Sandra Miles – 1997 Gregor Robertson – 1997 Brian Scudamore – 1997 Wendy Lisogar-Cocchia – 1998 Darren Entwistle – 2000 Thane Stenner – 2000 Peter ter Weeme – 2000 Tracey Axelsson – 2001 Christina Anthony – 2002 Dave Cobb – 2002 Rob Feenie – 2002 Claire Newell – 2004 Colin Bosa – 2005 Steve Mossop – 2005 Stephanie Cadieux – 2006 Jennifer Podmore – 2007 Chris Breikks – 2008 Paul Haagenson – 2009 Jill Earthy – 2010

News

June 28–July 4, 2011 Business in Vancouver

Local firm trains in Israeli security tactics By Jenny Wagler

n a move to bring more proactive security services to an industry known for passive guarding, Vancouver-based Commissionaires BC is training its staff in a behaviour-monitoring security approach honed in Israel. “Most security companies out there in the world are manpower companies. They’ll put a person in a security uniform, pay whatever dollar amount and he’s in front of the gate,” said Amotz Brandes. The managing partner with Los Angeles-based security consulting company Chameleon Associates led a security conference last month on predictive profiling for Commissionaires BC staff and clients. Brandes said the passive brand of security generally seen in North America will never deter a “motivated adversary.” “The biggest deterrence to an adversary is never the passive security element; it’s never the alarm system or the CCTV or a guard

with a blank look on his face,” he said. “The biggest deterrence is when an officer or anybody interacts with a potential adversary, because when they do that there’s a change in role: the adversary is put on the defensive.” Brandes added that predictive profiling teaches security personnel to play an active role: identifying suspicious behaviours and asking key questions to ferret out threats. He noted that the approach is applicable to any kind of threat, from terrorism to criminality. Brandes, who began his career in the Israel Defence Forces, learned the security methodology while working as a profiler for El Al Israel Airlines Ltd. in Los Angeles. He noted that Israel switched from racial profiling to a behaviour-focused approach after an attack by Japanese terrorists on Tel Aviv’s Lod Airport in 1972 highlighted the flaws in a race-targeted security approach. “We found out that no matter what ethnic background you’re

Dominic Schaefer

Behaviour-focused technique is gaining traction across North America and is being used in a pilot project at YVR this year

Bob Chapman, Commissionaires BC manager of security services, brought Los Angeles-based security expert Amotz Brandes to town to train company security personnel in predictive profiling

part of, there’s one common denominator for all adversaries and that’s how they attack or how they go about attacking.” Commissionaires BC is the province’s largest security organization. It has more than 1,600 security professionals protecting B.C.’s air and sea ports, border crossings, government facilities, schools, commercial enterprises and resi-

dential complexes. Bob Chapman, the company’s manager of security services and formerly a Vancouver police officer for 33 years, took the predictive profiling course last year and decided the company should train its employees in the more active approach to security. “It’s dumb obvious,” he said. “We should have been doing this

years ago: asking people questions rather than X-raying them.” Chapman added that criminals are getting more sophisticated and security training needs to keep up. “Crime and criminality is changing. It’s more subtle now and, for a good criminal, more well-planned and the scores are much bigger for them. And in respect to some clients, the loss that they could suffer as the result of a well-planned event could be huge,” he said. “Having security that’s aware of this sort of behaviour or the planning or the rehearsal that these people go through – it’s good for us, it’s good for the client.” Brandes said a trend toward using predictive profiling is growing in North America, though he noted that most momentum is coming from the private sector. In January, the Canadian Air Transport Security Authority launched a passenger behaviour observation program at Vancouver International Airport. • jwagler@biv.com

Canucks championship a bonanza for ticket brokers Local ticket resellers project strong 2011 as global ticket sales flat. Staff numbers back up since the recession By Glen Korstrom

he Vancouver Canucks’ 2011 Stanley Cup run deep into June could not come at a better time for Vancouver ticket brokerages struggling to rebound from a recession that ravaged consumer discretionary spending. In May, the world’s largest ticket broker, Live Nation Entertainment Inc. (NYSE:LYV), told investors to expect “flat organic ticket sales for 2011.” Local ticket brokers, however, told Business in Vancouver that this year’s sales will be helped by hundreds of thousands of dollars in extra sales each thanks to the Canucks’ playoff run. “We’re definitely looking at least at a 60% volume increase in sales over a span of two months, which is pretty good,” said Kingsley Bailey, who has operated Vancouver Ticket and Tour Service since 1995. The top regular price for a ticket to see the Canucks lose to the Boston Bruins in Game 7 of the Stanley Cup final was $931 but Bailey sold some tickets to that game for $9,000 each. It was a handsome reward for surviving in a business that endured rocky years thanks to what Bailey called “abysmal” performance from the hockey team, as well as the 2004-05 NHL players’ lockout. Those adversities slammed his business given that about 50% of Bailey’s sales are for sports tickets in Vancouver. About 30% are for concerts and other Lower Mainland events. The remaining 20% comes from selling tickets for Seattle events, which are mostly sports. In contrast, Live Nation, which bought ticketing giant Ticketmaster Entertainment for US$2.5 billion in 2010 and generated more than $5.06 billion in 2010 revenue, gets the following ticket sales: •57.7% from concerts;

•17.3% from arts and theatre events; and •15.7% from sports matches. Sports-related ticket sales, however, are the fastest-growing global segment for Live Nation, with sales up 14% in the first quarter of 2011 compared with the same quarter in 2010. That compares with a 4% increase in concert ticket revenue and a 3% hike in arts and theatre ticket sales during those same quarters. Live Nation’s bottom line is also buffered by the fact that it has booking rights or an equity interest in 128 venues. Bailey operates solely in Vancouver out of a small office in the Hampton Inn and Suites on Robson Street, where he first set up shop in 1996. He spent 1998 and 1999 working out of his home while the hotel was rebuilt and then returned to the Hampton in 2000. He has considered expanding to a second city as long as he can keep operating costs low. The largest Vancouver-based ticket broker is Mario Livich, whose Showtimetickets.com operates across North America. Livich scalped concert tickets when he was in his teens and founded a ticket reselling venture in 1985 when he was a 20-year-old business student at Douglas College. He operated out of his home for 10 years before moving to a 4,000-square-foot retail outlet on Beatty Street and focusing on building his American customer base. He hit a peak of $9.4 million in 2005 and then spent three years on BIV’s top 100 fastest growing companies list: •No. 26 in 2006 with a 208% revenue growth rate between 2000 and 2004; •No. 31 in 2007 with a 390% five-year revenue growth rate between 2001 and 2005; and •No. 87 in 2008 with a 150% five-year revenue growth rate between 2002 and 2006. Livich no longer reveals revenue figures but

said that he employed 30 people in 2008 before the economic downturn took hold. His employee count fell to 14 people in the depth of the recession and has since climbed above 20. “We’re back on the growth curve again,” he said. “It’s been peaks and valleys. We’re somewhat cyclical with the nature of the industry and the recession. Tickets are a discretionary item.”

Canadian growth has recently been much stronger than in the U.S. Livich told BIV In 2006 that 60% of his revenue came from south of the border. Today, it’s the reverse, with 60% of his revenue coming from Canada. “We connect buyers and sellers so we’re never sold out,” he said. “The only thing that changes is the price.” • gkorstrom@biv.com

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Finance

Daily business news at www.biv.com June 28–July 4, 2011

BY THE NUMBERS

Losses are shown in brackets. Graph information by Stockwatch.

The Keg Royalties Income Fund (TSX:KEG.UN)

▲3%

$2.5m

Revenue: $121m 3 months 2011

Net income 3 months 2011

Well done: The steak eatery saw same-store sales grow 3.8% in Canada and 3.2% in the U.S. during the first quarter when compared with the prior year. Royalty income increased 3.7% to $4.8 million in the first quarter, while expenses increased 11% to $274k due to interest and financing fees. Earnings per share Meantime, the fund’s distributable cash decreased 14% to 3 months 2011 $2.9m. The Keg had $1.7m in cash as of March 31.

$15

$0.23

$14 $13 $12 $11 $10

Fortress Paper Ltd. (TSX:FTP)

▲70% ($5.7m) ($0.43)

$80

Revenue: $85m 3 months 2011

Bills and mills: An increase in raw material costs and over-capacity due to the postponement of several major currencies will make 2011 a challenging year for Fortress’ Landqart banknote mill in Switzerland, the company said. Although revenue increased significantly in Q1, the Earnings per share company’s costs jumped 94% to $75m. Fortress finished the 3 months 2011 first quarter with $75m in cash and cash equivalents.

$20

Tail spin: The aerospace company posted another milliondollar loss for the first three months of 2011. As well, Avcorp is not in compliance with its Export Development Canada debenture. The company secured a $6m loan in the first quarter to pay down its operating line of credit. Earnings per share Avcorp’s cost of sales increased 13% in the first quarter. The 3 months 2011 company finished the quarter with negative cash flow.

$0.20

Net income 3 months 2011

$60 $40

Avcorp Industries Inc. (TSX:AVP)

▲20% ($1m) $($0.01) Revenue: $20.9m 3 months 2011

Net income 3 months 2011

$0.10

$0.00

Money Business

Harry Jaako More signs pointing to a tech IPO rebound in 2011

he U.S. technology IPO market is finally showing strong signs of a rebound, and many are predicting that it will strengthen. If this trend continues, and if it spills over into Canada, and if the collective performance of these IPOs holds up, the outlook is positive for reversing the troublesome tailspin in the Canadian venture capital industry. In recent years, less and less capital has flowed into the venture capital industry, and, obviously, less and less investment was making it into worthy new ventures to stimulate the economy and create highvalue permanent jobs. According to Renaissance Capital IPO Home, there have been 19 U.S. technology IPOs to date in 2011 – the most of any sector. On top of this, $94 billion in U.S. technology merger and acquisition (M&A) deals were done. According to Dealogic, that’s already the highest total since 2000

and compares with $71 billion in all of 2010 and $40 billion in 2009. It’s been years since there have been so many significant technology liquidity events. The recent successes – and the highest valuations – are concentrated among certain social networking and other very highprofile companies, but many expect the trend to spread to other types and sizes of technology companies as buy-side appetite for new technology equities expands. The last three months have seen U.S. IPOs of software mortgage maker Ellie May, LinkedIn, Russian Internet search engine Yandex NV (Russia’s most popular search engine) and Freescale Semiconductor Holdings. Groupon recently filed for a $750 million IPO, and new offerings are rumoured for online real estate company Zillow, UHF RFID chip company Impinj, Kayak Software, HomeAway, online music startup

Pandora Media and telecom equipment maker Avaya, which is looking to raise $1 billion with its IPO. In Canada, Smart Technologies’ $660 million IPO in July 2010 kicked things off with a bang, and was the largest Canadian technology industry IPO in 10 years. It quickly disappointed investors, though, as its offering share price of $17.80 tumbled to $11 within two months, and it has recently traded under $7. Nevertheless, Canadian investment dealers are again preparing their IPO pipelines in readiness for what they hope is renewed buyer interest in tech equities in Canada after an intense and sustained wave of natural resource issues. Recently, water infrastructure tech company Pure Technologies graduated from the TSX Venture Exchange to the TSX senior board, and NexJ, a finance, insurance and health-care enterprise CRM software company, completed a $43 million IPO on the TSX in May. The NexJ offering was co-led by GMP Securities LP and Canaccord Genuity Corp. It included Raymond James Ltd., RBC Dominion

Securities Inc., Scotia Capital Inc., TD Securities Inc. and NCP Northland Capital Partners Inc. However, it is perhaps a sign of how weak the tech sector still is that the selling syndicate was so large and impressive for an IPO that was quite

Canadian investment dealers are again preparing their IPO pipelines in readiness for what they hope is renewed buyer interest in tech equities in Canada small compared with the size of many mining and oil and gas deals completed recently by these same players. After three weeks of listing, the stock was trading just below its $9 offering price, a relatively healthy start. In an interesting twist, some U.S. venture capital firms are looking at Canadian markets as venues to list their portfolio companies in areas ranging from clean technologies to

life sciences. TSX Venture president John McCoach recently told Reuters that on the TMX’s two equity exchanges this year, eight listings came from the U.S. “We are actually having some success with some American VCs in helping them exit their companies into Canadian capital markets, probably even more so than Canadian VCs,” McCoach said at the Canadian Venture Capital and Private Equity Association (CVCA) annual conference in Vancouver last in month. “I don’t want to imply that it is dozens or hundreds, but we’re starting to see that happening.” Venture fund investors, managers, venture-seeking entrepreneurs and even government policy-makers looking for economic growth are all holding their collective breath waiting for the liquidity window to open long enough to renew investment interest in the venture capital sector. • Harry Jaako (hjaako@discoverycapital.com) is chairman of Discovery Capital Corp., a Vancouver-based venture capital firm. His column appears monthly.

Get on BIV’s Fastest List > BIV's Fastest Growing Companies list ranks by highest percentage revenue growth between 2006 and 2010. > Include total revenue 2006, total revenue 2010, company name and contact information > Companies that make the list will be invited to a celebration awards dinner hosted by Businiess in Vancouver in October 2011.

Issue: September 13, 2011 Sponsored by:

> Submission deadline: 5pm, August 5, 2011 to rchu@biv.com

finance

June 28–July 4, 2011 Business in Vancouver

B.C. Visitor entries rise

Prime numbers: Finance in Brief

Competition challenges B.C.’s clean-tech sector: KPMG

$2.5b

Continued government support is needed to keep B.C.’s clean-tech industry globally competitive and among the fastest-growing sectors in the province. A KPMG report released last week noted the fledgling sector faces intense competition globally to tap the demand for new, clean-energy technologies. Last year, global investment in clean tech rose to a new record of $243 billion, with the largest investments by China, Germany, the U.S., Brazil, India and the European Union. Over the years, the provincial and federal governments have provided a handful of incentives and research programs such as the Scientific Research and Experimental Development Program, Sustainable Development Technology Canada and the Innovative Clean Energy Fund. However, more support is needed through enhanced research funding, early adoption initiatives and demonstration project funding to further develop the fledgling industry that now employs

more than 8,000 people in the province alone and generates $2.5 billion in combined revenue, the report said. Jonathan Rhone, president and CEO, Nexterra Systems, and chair of B.C.’s Cleantech Alliance said, “The report clearly demonstrates the value of making the cleantech industry an economic priority so that it can be an engine of economic growth.”

Canadians approaching retirement saving less: TD

66%

The shock of the economic downturn is laying the foundation for a new financial crisis for Canadians approaching retirement. A survey for TD Bank conducted by Environics found that two-thirds of Canadians aged 45 to 64 are investing less for their retirement than they did before the 2008 economic downturn. Nearly half of them said they have less money to invest than they did before, about 27% said they were discouraged by market volatility and 24% said they are using their remaining disposable income for other financial obligations. Thomas Dyck, president

of TD Mutual Funds said, “If you are sitting on the sidelines, you could be losing valuable time to grow your savings.” A decline in the regular amount being accumulated for retirement will only make it more difficult for Canadian investors who tend to be fairly conservative in their investment choices. The survey found that 40% of respondents take a conservative investment approach, while more than half take a balanced approach to investing, which involves creating a diversified portfolio of investments that mitigate various risks. The survey found that nearly two-thirds of boomers would feel more comfortable investing if their investment products had a guaranteed returned. Half said they wanted minimal risk of losing their initial investment.

Money laundering edges up in 2009: Statistics Canada

$15b

The number of cases of money laundering edged up in 2009, according to a Statistics Canada report released last week.

BEST IN BC

There were 735 incidents of money laundering reported by Canadian police in 2009, a 12% increase from 2008. Expressed as a rate, there were roughly two reported incidents of money laundering for every 100,000 Canadians. While there were 138 court cases involving at least one charge of money laundering in 2009, only a third of cases resulted in a finding of guilt. The report said the complexity associated with money laundering is one of the key reasons for the relatively low success rate in prosecuting cases. In two-thirds of cases, charges were either stayed or withdrawn, which is double the proportion of criminal court cases in general. According to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the most common form of money laundering is the deposit of cash into bank accounts below the statutory limit where banks are required to report large deposits. FINTRAC estimates that between $5 billion and $15 billion is laundered each year in Canada. Worldwide, about $500 billion to $1 trillion is laundered each year. rchu@biv.com

April sees first rise in visitor entries of 2011

▲0.7% ▼0.1% ▼0.3% ▲3.8% April visitor April visitor April visitor April visitor entries entries entries entries (overall) (U.S., same (U.S., (overseas) day) overnight) Visitor entries to Canada through B.C. were up (0.7%, seasonally adjusted) for the first time this year in April. Same-day visits from the U.S. (-0.1%) were off for the third consecutive month, while overnight trips also continued to decline (-0.3%). Overall, total U.S. entries dipped 0.3%. However, there were more travellers from overseas countries (3.8%), driven primarily by a double-digit increase (11.5%) in the number of visitors from Asia. Meanwhile, European entries (-2.1%) were down.

Sales of manufactured goods slide Manufacturers in B.C. saw sales slip 0.9% (seasonally adjusted) in April, chipping away at gains made in the previous month. Shipments sagged for computer and electronics (-8.1%), transportation equipment (-7.6%), paper (-3.9%) and wood (-1.4%) producers.

-BC Stats Infoline, Issue 11-24, June 17

B.C.’s median family income dropped 2% in 2009 Median after-tax income (constant 2009 dollars) for B.C. families of two or more people was $67,200 in 2009, down 2.0% from the previous year. This was the first drop in median after-tax income registered following six straight annual increases.

-BC Stats Infoline, Issue 11-24, June 17

B.C.’s MLS listings edge down in May Compared with the same month in the previous year, the number of Multiple Listing Service (MLS) residential units sold in the province edged 1.2% lower in May. While much of the province experienced a drop in sales, Fraser Valley (7.8%) and Greater Vancouver (7.2%) real estate boards saw sales advance.

-BC Stats Infoline, Issue 11-24, June 17

Congratulations to ... Awards of Excellence John Corry & Fran Hannabuss University of British Columbia Division 1 Category 7 Marketing Communications “’Learn and Win’ Student Recruitment Campaign”

Karin Basaraba ICBC

Division 1 Category 17 Social Media “Using Twitter to Build a Case for Social Media”

Recognizing Communications Excellence in BC We are proud to announce this year’s award recipients in the International Association of Business Communications BC Chapter (IABC/BC) Bronze Quill Awards. Whether your strength lies in internal or external communications, social media or graphic design, there’s a category for you in BC’s premier communications awards. Entries must follow a set criteria and are judged by other senior communication professionals in Canada.

Rosetta Cannata ABC

Jane Nunnikhoven

Karen J. Lee ABC, MC

Division 1 Category 9 Employee/Member Communication

Vancity

KJ Lee Group

About IABC

Division 1 Category 9 Employee/Member Communication

Founded in 1970, the International Association of Business Communicators provides a professional network of over 15,500 business communication professionals in over 80 countries. The BC chapter is one of 105 chapters worldwide and is the second largest chapter in Canada. With more than 650 members throughout BC, the chapter has an international reputation for progressive, professional communication. IABC/BC is committed to improving the effectiveness of organizations through strategic, interactive and integrated business communication management. Title Sponsor

Gold Sponsor

“Quarterly Performance UpdatesAn Information Cascade”

Bronze

Media

Vancity

Division 1 Category 16 Electronic & Digital Communication Division 2 Category 19 Audio Visual “Are You Ready? Vancity Launches a New Intranet”

Awards of Merit Tracy Bains, Kera McArthur, Amanda Fetterly & Ashley Sims

Dana Bales & Susanna Tam

Division 1 Category 2 Community Relations

Division 1 Category 13 Special Events - External

“Transportation Consultation 2010: UBC Taps the Campus Community for Ideas”

“Inspiring Stories Connecting Future Leaders”

Campus & Community Planning, University of British Columbia Silver

Law Society of British Columbia

www.iabc.bc.ca

Also to...

Join us on Facebook or follow us on Twitter @IABCBC

Student Communicator of the Year: Marianna Adamian SFU Communication Student Volunteer of the Year: Stephanie Gardner Outstanding New Volunteer of the Year: Leslie-Ann Drummond

Real estate

Daily business news at www.biv.com June 28–July 4, 2011

real estate roundup

Peter Mitham Northlands acquires Sutton Place hotels, brand and, in Vancouver, a significant upgrade to La Grande Residence, the extended-stay tower adjacent to the main hotel. Renovations to the Edmonton property will take precedence. “Both are going to get pretty sizeable renovations in the next 12 months or so,” Gagliardi said, while downplaying any dramatic changes. “Being that they’re successful properties, we’re changing very little. It’ll be a seamless change, really.” Precautionary principle Vancouver Police Department officers and private security were woefully outmanned during the June 15 riots in downtown Vancouver, following the Canucks’ loss to the Boston Bruins. The reading of the Riot Act was clearer in the news reports than on the street, where persistent crowds numbering in the tens of thousands easily and repeatedly breached police lines. While private citizens helped the sole security guard at Scotia Tower take down a rioter and prevent a newsbox being hurled against the tower’s ground-floor windows, dozens of other properties weren’t so lucky. Across the street, smoke billowed out of the Bay parkade and one businessman this columnist spoke with stood stunned, wondering if the police had a plan to address the mayhem. “When a mob is like that, if the police department couldn’t do anything, you’re not going to get private security guards doing

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Peter Mitham

Room service Room renovations are among the plans for the two Sutton Place hotel properties Vancouverbased Northland Properties Corp. recently acquired for $198 million. The deal, brokered by CB Richard Ellis Hotels, gives Northland the 561-room Sutton Place Hotel Vancouver and 313-room Sutton Place Hotel Edmonton. The Vancouver property accounted for the majority of the purchase price. Northland president Tom Gagliardi, whose company owns the Sandman hotel chain and earlier this year bid for the Dallas Stars hockey team, said the Sutton Place acquisition was aimed at giving the company a foothold in the downtown Edmonton market, where it previously had no properties. The hotel in Edmonton would have become a Sandman Signature property. But the properties were being sold as a portfolio deal and, on closer consideration, Northland jumped in. The chance to acquire a luxury property in downtown Vancouver doesn’t arise often, and being able to control the Sutton Place brand opened the door to growth. “We thought, ‘Ah what the heck. Let’s get this done,’” Gagliardi said. “It gives us another tier that we can grow and perhaps create some value in the future.” Plans call for the renovation of both properties, with makeovers planned for the restaurants at both hotels, renovations to the rooms

Hot issue: a burning vehicle at the Bay parkade on Richards Street during the June 15 riot in Vancouver underscores the risks property owners face from civil unrest even in the world’s most liveable cities

anything,” Paul LaBranche, executive vicepresident of the Building Owners and Managers Association of BC, acknowledged. “When it’s out of control, it’s out of control. What’s important is how you minimize the damage, if possible.” Some property managers assigned additional security for the night and ensured extra cleaning staff were available to clear debris as quickly as possible, LaBranche said, but this didn’t save dozens of properties on the downtown peninsula – commercial and residential alike – from damage. Charles Gauthier, executive director of the Downtown Vancouver Business Improvement Association, believes that his members’ steps to remove signage, furniture and other potential projectiles helped reduce damage to real estate. Dumpsters were also secured or removed from alleys. However, he expects the riots will prompt property owners to board up their premises and take other measures in advance of major events such as this year’s Grey Cup festivities and even Canada Day celebrations. “There will be a significant crowd in the downtown and I wouldn’t be surprised if some businesses took additional precautions to have additional security,” he said. Dis-harmony Some of the June 15 hooligans chanted against the HST, ads for which aired repeatedly during the Stanley Cup finals, but with the mail-in referendum now upon us it’s time for a stand to be taken via the democratic process. Speaking to commercial real estate association NAIOP in place of Finance Minister Kevin Falcon on June 16, West Vancouver-Capilano MLA Ralph Sultan acknowledged the government hadn’t done a very good job of explaining and implementing the HST.

“The government botched it badly. It was dreadful,” he said, noting that even MLAs such as himself found it difficult to get good information from the finance department. This wasn’t reassuring, but also illuminates just how badly the tax was implemented. “We rushed into this HST and we didn’t really figure out what was going to go up, what was going to stay the same,” he said. “The sheer compendium of exemptions on the PST were daunting, and we only got it half-right as we tried to sort it through.”

“When it’s out of control it’s out of control. What’s important is how you minimize the damage, if possible” – Paul LaBranche, executive vice-president, Building Owners and Managers Association of BC

Sultan believes harmonizing sales taxes was a smart move but he knows it’s going to be a tough sell to consumers – something condo marketer Bob Rennie alluded to during his talk a month earlier to the Urban Development Institute. Consumers need simple answers, and Rennie doesn’t believe those answers were available when the tax was implemented, or now, in the event voters reject the tax – something he considers possible. “My bet is it’s going to fail and we’re going to be in for just a boatload of turmoil, and we’ve got to start getting the questions answered: What happens if it fails?” he told developers. “Where are you at with giving tax credits if you’ve been building under HST, and GST/ PST is coming, because the consumer is going to need a very, very simple answer.” • pmitham@telus.net

Technology

June 28–July 4, 2011 Business in Vancouver

A company with X-ray vision By Nelson Bennett

uring the Winter Olympics, the Canadian military used a new hand-held scanner to check baggage for dirty bombs. The radiation sensors used in those hand-held devices – now in use in Afghanistan – were made on Vancouver Island by Redlen Technologies, which has spent the last 10 years solving a problem that has baffled scientists for decades. The challenge is how to make high-quality cadium zinc telluride (CZT) semiconductor material in large volumes, something that has been prohibitively expensive. “The problem has been that no one could produce it economically,” says Redlen CEO Glenn Bindley. “The ability to produce it in large quantities and high quality has been the issue. We’ve achieved a real breakthrough in the cost and quality.” Philip Cohen – head of nuclear medicine at Lion’s Gate Hospital – said the Redlen semiconductor has the potential to do for diagnostics what the transistor did for electronics – replace vacuum-tube technology with solid-state electronics. “It basically could change the whole field of radiology,” Cohen told Business in Vancouver. Most semiconductors are made from silicon – a crystal – and are used

Nelson Bennett

Glenn Bindley, CEO, Redlen Technologies: making high-quality semiconductor material more economically

primarily in transistors, solar cells and diodes. Semiconductors made from CZT crystals are like radiation gates and have different applications. They can be used in applications requiring various forms of radiation – X-rays, gamma rays, etc. – to be either detected or converted to electricity. Radiation detection is used in a variety of medical imaging technology, like CT and PET scans, as well as baggage and dirty-bomb scanners. (A dirty bomb is one in which explosives are used to spread radioactive material causing contamination.) In 2001, after the dot-com crash

temporarily knocked the wind out of the sails of companies like PMC Sierra, which he co-founded, Bindley said he decided he needed a new project to motivate him and joined Redlen. At the time, Bindley said Redlen was “literally two guys in a garage.” In 2007, Rob Crestani, a PMC Sierra co-founder, signed on as Redlen’s director of systems engineering. With funding from a number of angel investors – including Ken Spencer, founder of Creo, who sits on Redlen’s board of directors – the company has spent the last 10 years refining a process that allows the company to mass-produce the CZT crystal. It has been a painstaking process, but by 2009, all the major scientific wrinkles had been ironed out and the company began producing CZT for a variety of commercial applications. One year ago, the company’s 50 employees moved into a new purpose-built manufacturing plant in Saanichton, and the company plans to add another 30 staff by year end. Redlen’s semiconductors are already being used by Spectrum Dynamics, an Israeli company that makes a cardiac imaging system that provides high-resolution imaging but with low doses of radiation. They are also used in a probe that detects cancer cells in breast cancer patients and in hand-held dirty-bomb scanners made by Thermo Fisher.

Peter Watson

Redlen Technologies makes a semiconductor that can be used to detect cancer, sniff out dirty bombs and create electricity

Scientists at Redlen “grow” cadmium zinc telluride crystals, which are used to make a semiconductor that detects radiation

Redlen is also producing large volumes of raw material for thin-film solar panels. But the company views the biggest market to be in medical diagnostics, such as x-ray machines and CAT and PET scans. Arnold Burger, a physics professor at Fisk University in Tennessee, said a study published by Redlen scientists in 2006 demonstrated the company had made “significant” strides. “Redlen has indeed made a significant contribution to the CZT community of researchers,” Burger said. “The CZT research is still much needed because not all the problems

were solved and that reflects in the fact that CZT crystals are not yet a commodity, as is the case with silicon or gallium arsenide crystals.” Bindley said some of the outstanding issues in the process were resolved in 2008-09. He said the company is now in a high-growth stage. The company made $4.2 million in revenue last year, and expects to double that this year and next. “We are not yet profitable,” Bindley said. “We are probably a few quarters away.” Bindley said the company will likely go public with an IPO in about two years. • nbennett@biv.com

High-Tech Office

Alan Zisman It has some rough edges, but Motorola’s Xoom a credible iPad competitor

ablets were big in 2010 following the launch of Apple’s iPad, and all indications are that they’ll be bigger in 2011, with both increased sales of iPads and the release of models from companies previously known for mobile phones or netbooks and laptops. Recently Dimensional Research reported 68% of the businesses it studied were already deploying tablets or planned to do so by next year (51% of the businesses, however, weren’t sure why). Tablets are also being blamed for declining netbook, notebook and desktop PC sales. Smartphones running Google’s Android mobile operating system have emerged as the most successful competitor to Apple’s iPhone; many tablet manufacturers are hoping that Android will allow them to similarly compete with the iPad. But early efforts, like

last winter’s Samsung Galaxy Tab, were hampered because Google had not yet released a version optimized for tablets and there was a lack of Android apps optimized for a tablet’s larger display. Motorola’s Xoom is among the first models available in Canada running the new made-for-tablets Android 3.0 (Honeycomb); it’s been available since early April from Best Buy, Future Shop and Telus. Currently, there’s only one model available: a 10.1-inch widescreen (1,280 x 800 resolution) display with 32 gigabytes of internal storage and Wi-Fi. Unlike Apple’s iPad, there is no 3G option, though a 3G model is available in the U.S. Many of Xoom’s hardware specs match those of Apple’s new iPad 2: a dual-core processor running at one gigahertz. About 10 hours of battery life (and the ability to go

several days without needing charging – Motorola claims 14 days standby time); it also has a pair of cameras. Some of its specs beat the iPad’s: there’s a MicroSD memory card slot. Camera resolution handily tops the iPad 2. GPS is built in, while Apple makes it available only on its 3G models. A mini-HDMI port and real USB port are built in – iPads require adaptors to connect to TVs, projectors or digital cameras. And Xoom’s $599 price is $20 cheaper than Apple’s equivalent model. I had the loan of one for a week. There are some rough edges. Yes, there’s a memory card slot. But it doesn’t work; a software update to enable it is promised. The 16:9 ratio widescreen display makes it better than the iPad’s 4:3 ratio display, but also makes it less usable as an e-book reader. Often, the relatively

high resolution means text is uncomfortably small (and hard to enlarge). And while – unlike Apple’s products – Flash is supported, it works sometimes, somehow. Shutting down applica-

Shutting down applications to save system memory is possible – but awkward tions to save system memory is possible – but awkward. And, too often, the browser displays mobile versions of pages designed for smaller displays. Despite those grumbles, in many ways it’s very nice. The interface is responsive and performance is snappy. With one gigabyte RAM (double the iPad 2), multitasking works well. The email and Gmail apps have

been tweaked to take advantage of the larger screen. Notifications and widgets on the home screen and voice navigation features outclass anything Apple offers. I like the browser tabs – just like on a “real computer” – and much more convenient than Apple’s equivalent. You can synch bookmarks with Google’s desktop Chrome browser. Reportedly, there’s much improved support for business-network Exchange servers – something I’m unable to test. Plug a Xoom into a Windows system and you can copy music, movie, photos and documents into the appropriate locations – no ungainly iTunes needed. (Mac users can do the same after downloading a utility from

android.com/filetransfer.) Apple’s App Store has far more tablet-centric apps than Google’s Android market (a search in the Market for “tablet” got me 3,765 hits) and more apps overall, but the gap will almost certainly narrow over time. Even with its current rough edges, Motorola’s Xoom tablet is the most credible full-sized alternative to Apple’s iPad to date; when the memory card slot is enabled, 3G (or 4G) versions come to market and more apps designed for Android tablets appear it will only get better. • Alan Zisman (www.zisman. ca) is a Vancouver educator and computer specialist. His column appears weekly.

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Biggest couriers in Metro Vancouver Ranked by number of deliveries in Metro Vancouver in 2010 Rank 2011

Company

Top local executive(s)

Canada Post Corp

349 Georgia St W , Vancouver V6B 4Z3 P: 800-267-1177 F: 604-662-1663 www.canadapost.ca 1

Purolator Courier

3700 Jericho Rd, Richmond V7B 1M9 P: 604-273-4333 F: 604-273-6520 www.purolator.com

Corporate Couriers Logistics

8350 Prince Edward St, Vancouver V5X 3R9 P: 604-685-5900 F: 604-685-9288 www.corporatecouriers.net

Dan Foss Couriers and Freight

Aldford Ave Suite 721A, Delta V3M 5P5 P: 604-524-5959 F: 604-524-3139 www.danfosscouriers.ca

Novex Delivery Solutions

3331 Viking Way Suite 2, Richmond V6V 1X7 P: 604-278-1935 F: 604-278-7235 www.novex.ca

Year founded Services offered

9900 River Dr Suite 102, Richmond V6X 3S3 P: 604-273-3344 F: NP www.progressivemessenger.com 2830 Norland Ave, Burnaby V5B 3A7 P: 604-294-8631 F: 604-294-4484 www.acecourier.bc.ca

Worldwide

30 kg NP

6,783

12,220,0002

Paul Merrick, general manager, operations

1960

Worldwide provider of integrated distribution services

Worldwide

150 lbs 0%

1,065

7,300,000

Justin Thompson, president Don McCarthy, president John Galley, vice-president and general manager

1980

Same-day delivery locally, intercity and international deliveries, fleet replacement, store and forward, warehousing, expedited contract and dedicated fleet replacement

Worldwide

None 90%

1553

656,068

Ed Ashley, general manager Hanne Madsen, president and general manager

1967

Local, national and international delivery of small packages and palletized freight

Worldwide

None 25%

450,000

Rob Safrata, CEO Ken Johnston, president

1978

Lower Mainland, Same-day and overnight deliveries throughout the Vancouver Island, Lower Mainland Canada

None 90%

1144

425,000

Jeff Power, manager

1987

Same day deliveries. 4-5 hour deliveries 2-3 hour deliveries 1-2 hour deliveries Direct delivery Daily scheduled deliveries

Lower Mainland Domestic International

NP 92%

145

385,000

Jim McMullin, president and CEO

1975

Same-day and intercity delivery

British Columbia and Alberta

None NP

445

378,000

Terry Preist

1987

Non-stop, rush, same-day, overnight courier services

Lower Mainland

500 lbs 90%

302,400

Zarko Perko, president

1981

Same-day on-demand service, next-day overnight service, same-day and next-day distribution service Lower Mainland, Fraser NP Valley, Canada, U.S. within Metro Vancouver, next-day document 50% service to major cities across Canada and the US

705

280,000

Eric Bjorklund, principal Harry Bangel, principal

1989

Local same-day messenger, overnight, domestic and international, next flight out service, same-day Lower Mainland to Seattle and Whistler

None 95%

250,000

Mark Huggan, CEO

1996

Next-day air service and same-day deliveries for the Lower Mainland

None 90%

165,000

Lower Mainland, Fraser Valley, Squamish, None Whistler and Pemberton, 50% Vancouver Island

54,804

PDX Courier Services

111 Smithe St, Vancouver V6B 4Z8 P: 604-684-3336 F: 604-684-5355 www.pdxcourier.com

Atlas Courier Ltd

32 5th Ave W, Vancouver V5Y 1H5 P: 604-875-1111 F: 604-879-2311 www.atlascourier.com

Flash Courier Services Inc

1213 Frances St, Vancouver V6A 1Z4 P: 604-689-0824 F: 604-689-3026 www.flashcourier.com

Phantom Couriers

325 Howe St Suite B201, Vancouver V6C 1Z7 P: 604-899-5447 F: 604-899-7904 www.phantomcouriers.com

Quick As A Wink Courier Service Ltd

12 13

9300 Van Horne Way, Richmond V6X 1W3 P: 604-276-8686 F: 604-276-8143 www.quickasawinkcourier.com

Kel-X Direct Services

5200 Miller Rd Suite 131, Richmond V7B 1K5 P: 778-288-0999 F: 604-247-0654 www.kel-x.com

Local same-day messenger, local cartage refrigerated and dry, daily service to all points on Vancouver Island, daily service to Squamish and Whistler

Worldwide

Mike Giordano, general manager

1983

Kelly Oreskovic, president Dave Oreskovic, vice-president, operations Michael Oreskovic, business development manager

1997

Same-day courier services

Lower Mainland and Fraser Valley

NP 90%

50,845

Roger Sidhu, president

1998

Transporting and warehousing

Lower Mainland

No limit 75%

37,500

Lisa Shaskin

1998

Servicing the corporate community for architectural drawings, banking, cheque certifications, legal and government document filing

Lower Mainland, Fraser 100 lbs Valley, Whistler, Japan, 90% Toronto

30,000

Sean Giordano, general manager

2004

Local same-day courier

Lower Mainland

2,000 lbs 80%

20,000

Broad range of transportation solutions including expedited, overnight, and deferred shipping Worldwide services for envelopes, packages and heavy-weight freight

NP NP

1975

Guaranteed time-definite and day-definite delivery Worldwide based on your shipment's destination

NP NP

923

Groundstar Express Ltd

14 15

1111 Cliveden Ave, Delta V3M 6G9 P: 604-527-1038 F: 604-527-1039 www.groundstarexpress.com

Cheyenne Express Couriers

447 1st St E, North Vancouver V7M 1B8 P: 604-988-2821 F: 604-988-7401 NP

Blue Heron Courier

16 NR NR

7621 Vantage Way Suite 12, Delta V4G 1A6 P: 604-943-6622 F: 604-940-6742 www.blueheroncourier.com

Federal Express Canada Limited

3151 Aylmer Road, Richmond V7B 1L5 P: 800-463-3339 F: NP www.fedex.ca

UPS Canada

5960 Ferguson Rd, Richmond V7B 1M6 P: 800-742-5877 F: NP www.ups.ca

No. of deliveries '10

One- to four-day delivery of letters and parcels

Ace Courier Services

Weight limit/ No. local % same-day staff '11

Bob Howey, regional general manager, operations 1981 Mike Shearon, general manager of plants, Western Canada

Progressive Messenger

Territory covered

Sources: Interviews with above companies and BIV research. Federal Express Canada and UPS Canada were not ranked because they did not provide ranking information. Other companies may have been listed but did not provide information by deadline. NR Not ranked NP Not provided 1 - PO Box 2110 Stn Terminal 2 - Calculation based on delivery of 47,000 package shipments per day, five times a week. 3 - Of which 26 are in-house staff and 129 are independently contracted drivers 4 - Includes 18 staff and 96 owner/operators 5 - Includes 10 full-time staff and 60 delivery personnel

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Publication: August 2011

Our most-requested, most-kept, most-referred-to publication

June 28–July 4, 2011 Business in Vancouver

Local courier firms see increase in business from Canada Post strike Vancouver courier services were busier than ever meeting the demands of customers as Canada Post hashed out a deal with its workers. For some, it was too much of a good thing By Jen O’Rourke

hile being run off their feet may be good for the bottom line, for two of Metro Vancouver’s biggest courier companies the forecasted resolution of the Canada Post strike was welcome news. Since the rotating strikes started in early June, Canada Post had reduced its mail delivery to three days a week and began locking out employees on June 15. The result: an overall increase in business for Vancouver’s courier companies, mainly on the messenger services side. For Terry Preist, general manager of PDX Courier Services, business increased about 30% since the strike started, the majority in overnight delivery, a service most customers normally rely on Canada Post for.

“We go through these booms with the types of companies we primarily deal with …

Dominic Schaefer

Terry Preist, general manager, PDX Courier Services: saw an increase in business of 30% during the Canada Post strike

existing clientele. He explained that while it’s nice getting new business, it’s important to ensure that existing customers remain a priority. “You’ve got to help out where you can but our first commitment is in ensuring our existing customers

receive service,” said Preist. With its main clientele coming from construction companies, law firms, film companies and financial institutions, industry booms are inevitable and often result in a higher volume of business for PDX.

“We go through these booms with the types of companies we primarily deal with … this isn’t entirely new,” he said. In preparation for the strike, Preist made sure his staff was adequately prepared and could manage an “all

hands on deck” approach. He also added a few extra mountain bikes to the mix to aid in deliveries downtown. However nice the increase in business was, both Giordano and Preist looked forward to things returning to normal. When asked if he was looking forward to the strike ending, Giordano said, “Yes definitely, business as usual is always nicer.” He may have to wait a little longer than expected. On June 20, the Harper government put forward a bill to Parliament to enforce back-to-work legislation to end the dispute between Canada Post and the Canadian Union of Postal Workers. Though an announcement was expected by June 23, nothing had been declared by press time. Meantime, Canada Post launched an ad campaign scheduled to hit the press later this month that encourages customers to get on the “epost” system to avoid delays in dealing with bills. • news@biv.com

this isn’t entirely new” – Terry Preist, general manager, PDX Courier Services

“The way we run our company is very similar to the post office, the only difference is we obtain signatures, so it’s more like a contract, you’re not getting returned mail,” said Preist. Richmond’s Quick as a Wink Courier Service Ltd. saw a rise in business of 20% to 25%, according to general manager Mike Giordano, mainly in messenger service. “We [were] seeing a lot of envelope traffic,” said Giordano. Based on previous experience, Preist was able to ensure PDX was prepared for the spike in business and that it would come at no cost to

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Small business

Daily business news at www.biv.com June 28–July 4, 2011

Social media 101 for small business Small businesses that don’t know how to use social media marketing can either hire a professional or take courses at UBC

or many small businesses, social media marketing is a bit like exercise or flossing: they know it’s probably good for them, but many are still not doing it. According to a recent Bank of Montreal study, only two in five small businesses in Canada are using social media

tools, even though 55% believe it is an important marketing tool. “That gap of people who know they should do it and those who actually do it is not limited to just small business,” said Luke Chatelain, director of business development and strategy for Vancouverheadquartered Invoke Media, which helps businesses de-

velop social media strategies. “I think a lot of people aren’t doing it just because of their understanding of how to go about doing it,” he said. Fortunately, for businesses that have decided to look into social media marketing, more and more marketing companies – like Invoke – are offering customized social media marketing services.

Dominic Schaefer

By Nelson Bennett

Kevin Parenteau of Wolfgang Commercial Painters has replaced most of his traditional advertising with social media, which he says is cheaper but labour intensive

The University of British Columbia (UBC) is also now offering a social media studies program for businesses. “The program is very business oriented,” said Fiona McAuley, senior program leader for UBC’s new award of achievement in social media program. Launched in 2010, it is designed specifically for small business. Classes are typically offered in the evenings. Participants are mostly small-business owners themselves or a designated employee. The program, which is under UBC’s continuing studies department, has six core courses: social media fundamentals, social media metrics, social media strategy and marketing, governance, monetizing social media and developing a social media plan. Businesses that have flirted with social media may have given up on it before hitting pay dirt. The problem may be

that they are either using the wrong social media tools or using them all ineffectively. “They’re not all the same and you don’t need them all,” McAuley said. When a large company decides to jump on the social media bandwagon, it can afford to hire a social media marketer or designate someone from within the organization and provide training.

“[Social media sites] are not all the same, and you don’t need them all” – Fiona McAuley, senior program leader, UBC social media program

Small-business owners, on the other hand, may not have the time to develop and maintain a social media strategy. “Social media is not really costly, but it’s labour intensive,” said Kevin Parenteau, co-owner of Wolfgang Commercial Painters, a small business that has replaced much of its traditional advertising with social media marketing. Anyone can set up a Twitter account or Facebook page. Developing the following that is needed to make it work is usually the biggest challenge. “It’s a huge obstacle,” Chatelain said. When Invoke works with a client, it first establishes what kind of social media strategy will work best for that company and then help the company set up whatever sites it may need. To build an instant following, Invoke will often rec-

ommend a contest aimed at getting people to sign up as friends or followers. A social media campaign is a bit like a garden in that it needs constant tending, which means someone within the organization needs to be responsible for tweeting, making blog entries and responding to customer questions or complaints. In the spring of 2010, Parenteau and his partner decided to dive headfirst into the social media pool. Parenteau sent his office manager to attend a two-day social media bootcamp in Seattle. Wolfgang Commercial Painters – which has more than 100 contract painters but a small office staff of just six people – now boasts 5,000 Twitter followers and 220 Facebook friends. It also has its own blog. Parenteau believes in social media marketing so strongly that his company is now using it as its main advertising vehicle. “We dropped most of our traditional print advertising last year,” Parenteau said. “We are gaining as many opportunities as before and there’s a lot less waste.” Whether social media is drawing more customers than traditional advertising is hard to gauge, Parenteau said, saying social media is still in its infancy. But he said there’s no question that it has boosted the company’s rankings on the Internet. “We do know that the traffic’s improved remarkably on the website,” Parenteau said. “It’s probably at least 50% over the year.” • nbennett@biv.com

Business tool kit

June 28–July 4, 2011 Business in Vancouver

Book reviews

Priceless: The Myth of Fair Value (And How to Take Advantage of It) by William Poundstone Hill & Wang (Farrar, Straus, Giroux), 2011

oundstone’s book will interest consumers making basic buying decisions, along with managers, price consultants or marketers. Page after page is filled with interesting and often amusing experiments conducted over the years to assess how our perceived values affect price, how price decisions are made by consumers and how choices are made when influenced by a number of accompanying factors (peer pressure, gender). Today, there is a symbiosis between psychologists and pricing consultants. Psychologists know you can get people to believe almost anything with a sleight of hand. Consider the average jar of peanut butter. How do we choose? Do we know that the producer has cleverly changed the product to appear the same as before, yet there is actually less of the product due to the indentation in the bottom of

the jar? Studies show that the average consumer perceives the product to be the same, and a buying decision is made – even though the value is less than before. Simon-Kucher & Partners (or SKP, a German-based company considered the “rocket scientist” of pricing) routinely employs “psychophysics,” an offshoot of psychology. To SKP, prices are the most pervasive of the hidden persuaders. The same psychological tricks apply whether you’re setting a price for text messages or toilet paper. There is a chapter dedicated to Internet purchases and what influences them. Consumers are now armed with Internet “research,” so companies and businesses are finding they must adapt and challenge the buyer’s information (Consumer Reports is wrong, the Internet is wrong – gasp! – or the buyer’s math is wrong). Buyers beware, indeed! The chocolate experiments conducted by Christopher Hsee and Jiao Zhang best illustrate, for me, one of the book’s key principles. Chinese university students had to choose between two options: • recall and write down a failure in their lives while eating a large Dove chocolate; • recall and write down a success in their lives while eating a small Dove chocolate. Sixty-five per cent chose

the bigger chocolate. Hsee and Zhang see their experiment as a “microcosm of life,” or a life lesson, if you will. Money (or price) is the “bittersweet chocolate” of contemporary existence. We spend our lives searching for the lowest price or the highest salary, numbers by which to validate our happiness. You would be well-advised to take this book’s lessons to heart – and it wouldn’t hurt to take it shopping with you either! • Donna Kaye is an assistant trade buyer at UBC Bookstore.

Aerotropolis: The Way We’ll Live Next By Greg Lindsay and John Kasarda Viking Canada, 2011

s nations shift from port cultures to airport cultures, Aerotropolis re-imagines the cities of the future. Lindsay, a business journalist, brings his considerable skill to the task of highlighting Kasarda’s urban theories. This book looks at the impact of air transport, whether

his book should be used with a degree of caution. Some of the comeback examples relate to situations of extreme confrontation or affront, when a strong response is needed. We’ve all had conversations that went wrong, with people we detest, but I could not see myself saying, “I’m going to count to two

and you’d better be out of my face” – in the workplace or elsewhere. However, there are times when strong words are needed, and this book helps readers build a vocabulary to respond to bullying, lower the emotional level of a conversation, soften a message and avoid being tongue-tied when confrontation occurs. Reardon, a professor at University of Southern California’s Marshall School of Business, provides readers with a toolbox to help move conversations in positive ways and help practitioners avoid feeling regretful after a confrontation has occurred. Chapter 5 (“Overcoming comeback brain freeze”) discusses why the brain freezes under attack and why appropriate and witty comebacks are hard for some of us to find. Fear of social rejection or exclusion may cause psychological and physical responses that temporarily shut down the brain. Or an attack can come out of the blue so surprisingly that it renders the recipient speechless. The heart-pounding, brainfreeze habit can be broken by developing and practising a comeback repertoire. Chapter 8 (“When conflict is inevitable”) discusses when to walk away – useful at work and outside the workplace. And not only when to walk – how to use body language to

convey a response. One business attorney eyeballs opponents, but not by looking into their eyes. He glares at the bridge of their nose, giving the impression of staring and causing them to look down. This often moves the negotiation along faster than a verbal response. I didn’t locate all the answers I looked for in this book, but I did find some. For the colleague who declaims in a meeting, “Can we form a planning team that’s actually effective in these situations?” it helps to be ready with, “Can you tell me more about what you just said?” rather than replying, “We DO have a good planning team.” With a more Machiavellian attack such as, “I’m hearing negative comments from colleagues about the lack of communication on your project,” Reardon’s technique of agreeing with the attacker could lead to, “You’re right, we haven’t told the world about X yet, because we are working very hard on Y, and are concentrating on communicating it first.” Sometimes Winston Churchill’s words are the best advice: “Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” •

of revenue production. With your SSA baseline established, you can now begin to shift the levels of each activity either up or down to produce more revenue. This sales process optimization will be ongoing as your business landscape will shift and change over time.

incomplete data or both. The root cause of salesperson resistance is often fear of the unknown. Understandably, questions arise in their minds like, “We’ve never done this before. Why do you really want this data? Is it going to be used against me somehow?”

Measurement challenges A common challenge in initiating SSA data reporting – especially when it has traditionally not been done before – is salesperson resistance. Resistance is defined as any deliberate action, or inaction, that runs counter to achieving a stated goal. Resistance might sound like, “I don’t want you measuring my weekly activities. That’s micro management!” Or, “I have enough reports to complete as it is.” Or late submission of reports,

Managing resistance A few simple steps to deal effectively with resistance are: 1. Anticipate it: Understand that change is hard for people. Ask yourself, “Knowing my sales team as I do, what underlying concerns might they have?” Prepare questions to uncover those concerns. Prepare how you will respond to each anticipated concern. 2. Be transparent: People don’t do well with “grey.” Be open and honest around the how, what and why of the

SSA measurement initiative. 3. Involve them deeply: This gives sales staff insight into the process and a clear understanding of the importance of optimizing the sales process. 4. Communicate the value: Salespeople who sell using an optimized sales process make more money. Their job is easier. It becomes more fun and fulfilling. Engage your team in discussions about these positive outcomes. The path to predictably hitting your revenue goals is always challenging, but it can be made more predictable with this straightforward approach to sales process optimization. •

for goods or people, on urban planning. Using London and Los Angeles as examples, Lindsay and Kasarda show how a crowded airport can lead to a loss when cargo planes seek easy distribution of their wares. They are cheerleaders for Kasarda’s concept of urban design and tend to dismiss any critics – which makes their conclusions flawed, but no less fascinating or important. • Treena Chambers is the marketing technology co-ordinator at UBC Bookstore.

Comebacks at Work: Using Conversation to Master Confrontation By Kathleen Kelley Reardon and Christopher T. Noblet Harper, 2010

Jan Wallace is head of the David Lam Management Research Library at UBC’s Sauder School of Business.

Sales calls

Rob Malec How to predictably hit your company’s revenue goals

t’s the sales leader’s job to predict the company’s revenue. Accurate predictions make it easier to run the company and plan for its future. The leader must know how much the team will sell, who it will sell it to and when will it sell it. To more accurately predict your sales results, master the science of generating sales. Achieving such mastery is a team effort. All must commit to study what generates a sale at your company, in your industry and in your market. Only by first dissecting this process can work begin to make it turn more effectively and efficiently. Significant sales activities (SSAs) The sales production process is composed of many SSAs – the things your sales team does to make a sale happen.

To most accurately predict sales production, start measuring your SSAs. Here are a few SSAs to measure weekly.

To more accurately predict your sales results, master the science of generating sales 1. Contacts with sales leads: This activity fills the top of your sales funnel. Watch this indicator closely. It’s the first one to drop when things get busy. A decrease in activity here leads to fewer sales to close later. 2. Sales meetings with buyers (in person or via telephone): These interactions move your qualified leads through the funnel toward closure. A subtle drop

in sales meetings this week leads to a measurable decrease in revenue produced the next month. Keep the pace here. 3. Sales closed: On the surface this appears to be a lagging indicator of sales effectiveness. When measured with greater frequency however (daily or weekly versus monthly), it clearly predicts trends and becomes a leading indicator of revenue goal attainment. Speak to your sales team and identify what SSAs contribute most significantly to making a sale. Rank them in priority from most important to least. Next, ask your sales team to record how many of them it does each week. After four to six weeks you will have a good baseline measure of how much of each SSA is required to maintain your current rate

Rob Malec (rob@robmalec. com), president of Businessworks Consulting, is a sales and revenue generation expert.

Daily business news at www.biv.com Business in Vancouver June 28–July 4, 2011

Thank you! “ To all who made the 8th Annual Boardroom ride possible…your support will enable us to provide our local “kids at risk, life-threatened and chronically-ill children” and, “their families” with much – Cindy Graves – Executive Director Kids Up Front Vancouver needed respite and joy!”

ids Up Front provides access to arts, culture, sports and recreation for kids who otherwise would not have the opportunity by distributing unused event tickets and by creating special events to help heal, bond and unite. In Vancouver we serve 104 child-serving charities across Greater Vancouver to make sure a ticket never goes to waste and that it gets put into the hands of those who can benefit the most- children living in poverty or with physical and social barriers. Since 2004, Kids Up Front Vancouver has provided more than 190,000 amazing experiences for kids in need at a value that surpasses $5.3 million. Experiences such as: theatre & concerts, art galleries & museums, festivals & local attractions, overnight excursions & camps, and sports & recreational events. By providing safe and fun events that otherwise would not be possible, Kids Up Front provides inclusivity, inspiration, and integration into the community for thousands of kids each month.

2011 Sponsor Riders

Photos compliments of Brian Hawkes

“It is with deep appreciation that I thank this year’s sponsors for their continued support of the Annual Boardroom Ride.

Stu Spear Brencar

Chris Formosa Pharmasave – OP

Kevin Oak (Guest) On behalf of Blakes

In light of the new economic reality, the ride sponsors ongoing commitment ensures that our local children and families in need will have the opportunity to enjoy and be inspired by our local sports and arts communities! Over the last 8 years the Annual Boardroom Ride has raised in excess of $100,000 and passed these funds at 100% to the sponsored charity.”

Andrew D’Eca Angus One

Scott Knutsen CIS – Cobra Integrated Systems

Doug Holt On behalf of BIVMG

2011 Sponsors

Ocean Park

Now Open in Calgary!

Thank you! – Doug Holt. Founder

Law

June 28–July 4, 2011 Business in Vancouver

Keep your brand out of the Internet’s red-light district A dot-xxx domain name for porn sites launches this fall, and owners of trademarked names are urged to protect their good names by blocking pornographers and cybersquatters from registering their domain names By Nelson Bennett

“From a brand-management perspective, it’s one thing to have somebody else have your domain, but it’s a whole other level to have somebody have your domain plus put objectionable material on it” – Cybele Negris, president, Webnames.ca

The problem for everyone outside the online porn industry is that it opens up the prospect of well-known companies or brand

Dominic Schaefer

magine a customer typing in your product’s trademarked name in a search engine and pulling up a pornography site. That’s the risk businesses may face when a new dot-xxx domain extension for the adult entertainment industry is launched in September, warns a Vancouver law firm that specializes in intellectual property matters. The best way for businesses to protect themselves and their brands from being associated with porn sites, ironically, is to claim triple-x extensions before someone else does. “It’s like you register it, but you don’t actually use it,” said Davis LLP’s Chris Bennett, a Vancouver lawyer specializing in intellectual property rights. For years, the adult entertainment business has been lobbying for its own pornspecific extension, and the Internet Corporation for Assigned Names and Numbers (ICANN) has finally granted approval. The idea is to create a virtual red-light district in cyberspace, which should make parental-control settings easier to set, as well as make it easier for porn seekers to find what they’re looking for.

Dominic Schaefer

Davis LLP lawyer Chris Bennett: claim dot-xxx domain names to avoid having your companies or brands confused with porn sites

Cybele Negris of Webnames.ca says it’s easier and cheaper to register a trademarked domain name with a new triple-x extension than to launch a legal battle over trademark infringement

names being registered with a dot-xxx extension. A URL such as toysrus.xxx could be claimed by a company that sells sex toys. “If they have a trademark, they really should be protecting it,” said Cybele Negris, president and co-founder of Webnames.ca. “From a brand-management perspective, it’s one thing to have somebody else have your domain, but it’s a whole other level to have somebody have your domain plus put objectionable material on it.” Currently, there are 20 global domain name extensions for Internet addresses (.com., org., .net, etc.), 250 country codes (.ca, .uk, .hk) and a variety of purpose-driven extensions (.gov, .edu, .tv, etc.) A whole new spectrum will open up with the approval by ICANN of the triple-x extension, as well as a new one that allows trademarked companies to use their company

name or brand as an extension. For example, Nike might register .nike as an extension, Bennett said. It could then come up with Internet domain names like shoes.nike or sportswear.nike. Those extensions will cost in the hundreds of thousands of dollars, Bennett said, and are only likely to be registered by the world’s biggest companies. Those companies will also likely be claiming triple-x extensions, as well, to prevent either porn merchants or cybersquatters from staking claim to them. The fees are expected to range from US$200 to US$300 for each registered name. Many companies will register various iterations of a name, including misspellings. In the digital age, registering domain names is part and parcel of trademarking, which is why law firms specializing in

intellectual property rights often handle it for clients. Bennett’s firm, in turn, works with domain-registration companies like Webnames.ca. Bennett said his firm has clients who are concerned about the pending triple-x extension and want to make sure their brand or company names are protected. Negris said her company is also getting calls. “We’ve got clients who told us that as soon as it opens up, we want them,” she said. Anyone with a trademarked name already has some level of protection. Someone who tried to register google.xxx, for example, will likely have a legal fight on his hands. When someone registers a domain name, he or she agrees to a dispute-resolution process whereby trademark owners can block the use of sites using a trademarked name, Bennett explained. Even misspellings of popular trademarked names can be protected. But it will save headaches for the owners of trademarks to simply register various domain extensions than fight it through ICANN, Negris said. “It’s a lot easier for a business to go and register their names rather than have their lawyers send a cease-and-desist letter and then go through the whole process of trying to get the name back.” Registering a domain name typically costs $15 to $20. Before the new triple-x extension is launched this fall, the owners of trademarked names will be given first dibs. “You get the ability to get in before anybody else does,” Bennett said. “Then once that period is over anybody can hop in there. “The problem is that the period will open up and you’ll just have this really short window and so you want to make sure you get in when you can.” To protect a brand from being registered with a triple-x extension, you must own the trademark. • nbennett@biv.com

SHOW HOW MUCH YOU LOVE YOUR CITY:

COME DOWNTOWN It’s not just business as usual downtown – it’s more. Summer is here and it’s going to be fun. Come downtown and see for yourself what’s happening in our vibrant and beautiful city right now. SHARE THE LOVE TWITTER - #vanlover facebook.com/downtownvan Thanks to the city, police, firefighters, paramedics and citizen volunteers for making downtown Vancouver clean and safe.

VANLOVER.CA

20 Law

Daily business news at www.biv.com June 28–July 4, 2011

Trouble

DISCIPLINE •Investment

Industry Regulatory Organization of Canada

An Investment Industry Regulatory Organization of Canada (IIROC) hearing panel has imposed a $10,000 fine against Bryan Dale Claggett, the regulator announced June 13. The penalty decision follows the panel’s earlier decision, dated April 4, 2011, which found that Claggett violated an IIROC rule when, without his firm’s knowledge, he attempted to settle a client complaint by paying the client money. In that decision, the panel also dismissed a second charge, which alleged that Claggett had conducted discretionary trades in client accounts without the written authorization of the respective clients. Specifically, the panel found Claggett engaged in conduct unbecoming and detrimental to the public interest when he paid $14,000 to a client to resolve that client’s complaint, without the prior knowledge or consent of his firm. The violation occurred on or about February 9, 2006, while Claggett was a registered representative at the Vancouver branch of

BMO Nesbitt Burns, an IIROC-regulated firm. IIROC began its investigation into Claggett’s conduct in May 2008, after receiving a client complaint. Claggett is currently a registered representative at the Vancouver office of Canaccord Genuity Corp., an IIROCregulated firm.

BUYER’S ALERT Companies listed below,

which are not members of the Better Business Bureau, have failed to respond, as of June 17, 2011, to Better Business Bureau of Mainland B.C.’s efforts to mediate complaints from June 6 to June 10, 2010. In some instances, the company may have taken care of the complaint and considered the matter closed, or may believe the complaint is unjustified; however, if the BBB has not received a response, records cannot reveal either position. Please note that BBB members must respond to customer complaints that are brought to their attention. Source: BBB. 604-Rubbish, Burnaby Aeroplan Centre, Vancouver Call Select Inc., Vancouver Chieftan Hotel, Squamish City Auto Repair,

Kelowna Comfort World, Surrey Consumers Reward Solutions, Vancouver Dollar Thrifty Automotive Group Canada Inc., Richmond Dutch Masters Painting & Property Maintenance, Port Coquitlam Healthtek Enterprises Inc., Coquitlam Imperial Parking Canada Corp., Vancouver James Haworth & Son Ltd., Kelowna Johnnys Pizza Factory, Vancouver Kingsway Honda, Vancouver Kits Boat Sales Ltd., Vancouver Kondolas Furniture & Appliances Williams Lake, Williams Lake Little Shop of Beauty, North Vancouver Modus Enterprises Ltd., Vancouver Mr. Rent a Car, Vancouver Nomorerack Retail Group, Vancouver Nor Pac Marketing, New Westminster Okanagan Hosting, Kelowna Pink Lotus Florist, Surrey Shaw Cablesystems GP, Vancouver She’s Fit!, Abbotsford The Bright Furniture Solutions & Mattresses, Surrey Toms & Merritt Towing Ltd., Merritt Top Quality Home Service, Burnaby

Ultimate Limousine, Richmond The following companies have responded to the BBB subsequent to being published: Popeye’s Moving and Delivery Ltd., Vancouver

Who’s Getting Sued These corporate writs were

filed with the B.C. Supreme Court registry in Vancouver. Information is derived from notices of civil claim. Civil claims have yet to be proven in court. Defendants: Great Eagle Resources Ltd. and Jason Robert Jacob and NRS Enterprises Ltd. and Community Futures Development Corp. of S.E. Region of B.C. and La Concha Minerals Inc. 523 10th St., Cranbrook, B.C. and 7th floor, 1175 Douglas St., Victoria and 12011 Third Ave., Richmond and 110A Slater Rd., Cranbrook and 300–576 Seymour St., Vancouver Plaintiff: 5240 Investments Ltd. 550–2900 Burrard St., Vancouver Claim: $356,065 for a loan and related mineral claims; a declaration the general security agreement is valid, charging all of the personal property of

Great Eagle in priority to the interests of the defendants related to a loan and mineral claims; a declaration that Great Eagle and Jacob fraudulently conveyed the Wild Horse Claims and that the claims be transferred to the receiver or purchaser; and an injunction. Defendant: Gregory Motha 8188 149th St., Surrey Plaintiff: RCG Forex Service Corp. 800–5951 No. 3 Rd., Richmond Claim: $231,526 and US$79,151 for profits made on trading activity contrary to an employment contract. Defendants: JWS Concrete Ltd. and Jacob Wollmann 301–2031 McCallum Rd., Abbotsford and 3680 McKinley Dr., Abbotsford Plaintiff: The Bank of Nova Scotia 2900–550 Burrard St., Vancouver Claim: $155,592 against JWS for debt; $149,911 against Wollmann as guarantor of the debt. Defendants: Westrim Projects Ltd. and Dominic Durosier and Anita Durosier 300–410 Carleton Ave., Burnaby and 2614 E. 5th

Ave., Vancouver Plaintiff: Royal Bank of Canada 650 W. 41st Ave., 3rd floor, Vancouver Claim: $153,333 for a credit agreement. Defendant: Harry ChangJoa aka Harry Joa aka Harry Chang 6–9133 Hemlock Dr., Richmond Plaintiff: Mandalay Corp. dba Mandalay Bay Resort and Casino 1600–1095 W. Pender St., Vancouver Claim: $106,349 for failure to pay a Nevada judgment. Defendants: Chet Construction Ltd. and Brent Burdeyny and City of Surrey 2150 Mirus Dr., Abbotsford and 14245 56th Ave., Surrey Plaintiff: Raj Duhra Trucking Ltd. 16548 Bell Rd., Surrey Claim: A declaration for a $100,234 builder’s lien related to trucking services. Defendants: Silvia Rivas and Canadian Real Estate Investment Group and Canreig and Canreig BC and Canreig Building Development Ltd. and 0822335 B.C. Ltd. and Dave Ravindra 595 Burrard St., Vancouver and 200– 385 Traders Blvd. E.,

BUS NESS LEADERS TOURNAMENT

Registration now open! J

oin us on August 23 for the inaugural Business Leaders Golf Tournament presented by Business in Vancouver and Association for Corporate Growth (ACG) Vancouver Chapter. This full day event includes golf, networking reception and dinner. Don’t miss your opportunity to play golf with senior executives, deal-makers and professionals involved in corporate growth, development, and mergers and acquisitions.

When: August 23, 2011

Where: University Golf Club – 5185 University Blvd. Price: $175 for BIV subscribers, ACG and TMA members $200 for non-subscribers/members

Visit www.biv.com/events to register Presented by

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Law 21

June 28–July 4, 2011 Business in Vancouver Employment law

Trouble

Robert Smithson

lawsuit of the week

So your employee is an anarchist

Group files suit against medical companies for harmful injections Surrey resident Joel Lajeunesse has filed suit against several medical treatment companies and their directors for a cosmetic product that, when injected, allegedly caused more harm than good. According to an April 29 B.C. Supreme Court notice of civil claim, Pur Medical Corp., SkinRx Distribution Inc., Basis Medical Technologies Inc., Polymekon S.R.L., John McCahill, Allan Ward, Chantal Ward and Italy’s Universities Department and International Centers of Research on Innovative Materials are being held responsible for cosmetic injections that not only migrated into different areas of a patient’s body but also caused infections and inflammation. The suit, which was brought under the Class Proceedings Act, revolves around a product called Bio-alcamid, which is a “filler” injected under the skin to augment areas of tissue loss caused by aging, surgery or disease, court documents show. Bio-alcamid is purely a cosmetic product that, according to the suit, was marketed and advertised as appropriately tested, safe and non-toxic. In 2006, Lajeunesse, a bus driver, received Bio-alcamid injections to “fill in facial defects.” The injections allegedly caused cheek and jaw inflammation. Lajeunesse also claims the injections migrated into other areas of his face, and have caused pain and suffering. The suit further alleges that class members’ were not warned about the risks associated with Bio-alcamid. Lajeunesse is seeking an order to certify the claim a class proceeding, damages for medical and other expenses, or the revenue the defendants realized through Bio-alcamid sales. The plaintiff is also seeking damages or an order to return the monies the defendants obtained through deceptive acts or practices, an injunction and further damages. A statement of response had not been filed by press time.

Mississauga, ON and 1450–13401 108th Ave., Surrey Plaintiff: Alicia Haneine 490–1177 W. Hastings St., Vancouver Claim: $100,000 for a loan against 0822335, Ravindra, Canadian Real Estate Investment Group, Canreig, Canreig BC and Canreig Building Development Ltd.; and US$50,000 for a loan against Rivas, Ravindra, Canadian Real Estate Investment Group, Canreig, Canreig BC and Canreig Building Development Ltd. Defendant: Canamera Refrigerated Transport Inc. 837 Burdett Ave., Victoria Plaintiff: F.A.S. Trucking Ltd. dba F.A.S. Fuels 200–911 Yates St., Victoria Claim: $70,733 for goods, including fuel, sold to the plaintiff. Defendant: Khameron Chanasith 2277 Burrard St., Vancouver Plaintiff: Bosa Ventures (819) Inc. 406–6400 Roberts St., Burnaby Claim: $49,797 for debt related to a lease. Defendant: Connex See Services Inc. and District of Maple Ridge 120 E. Beaver Creek Rd., Richmond Hill, ON and 11995 Haney Pl., Maple Ridge Plaintiff: LTS Infrastructure Services Limited Partnership 1500–1055 W. Georgia St., Vancouver Claim: $46,087 for a fibreoptic cable and associated materials; and damages. Defendant: Sutton Group West Coast Realty and West Coast Realty and Harpal Singh Minhas aka Paul Minhas dba

Sutton Group West Coast Realty 206–1080 Mainland St., Vancouver and 205-2607 E. 49th Ave., Vancouver and 3050 Southwest Marine Dr., Vancouver Plaintiff: 0460763 B.C. Ltd. 1710–1177 W. Hastings St., Vancouver Claim: $36,196 for breach of the multiple listing contract, which noted that no commission would be paid in the event of certain purchasers buying the property, or, damages. Defendant: Euro-Pacific Developments (2006) Ltd. 4701 E. Hastings St., Burnaby Plaintiff: Dulai Roofing Ltd. Address unavailable Claim: $19,630 arising from a promissory note. Defendants: 942252 Alberta Ltd. and Openroad Auto Group Ltd. and Ventana Construction Corp. 1500–1055 W. Georgia St., Vancouver and 1300–777 Dunsmuir St., Vancouver Plaintiff: United Rentals of Canada, Inc. Bldg 2–115 Ardelt Ave., Kitchener, ON Claim: A declaration the plaintiff is entitled to a builder’s lien for $13,396 against 942252 for an equipment rental; an order; a declaration the plaintiff is entitled to a lien against the holdbacks against Openroad and Ventana. Defendants: Gurvinder Singh Dhillon and Balwinder Kaur Dhillon and Karamveer Singh Dhillon and Balvinder Malhi and Bellwether Excavating & Trucking Inc. and Sonia Kaur Gill and Amarjit Kaur Gill 11899 87th Ave., Surrey and Box 402, 6832 King

George Hwy., Surrey and 6640 125B St., Surrey and 7717 123A St., Surrey Plaintiff: Sukhdev Sidhu dba Sidhu Brothers Trucking 200–6330 Fraser St., Vancouver Claim: $10,000 for soil removal and gravel delivery; and a builder’s lien for $10,000. Defendants: Shane Gunn and Megan Gunn and Royal LePage 100 Mile Realty Ltd. and Brenda Hutton and Tanya Collinson Addresses unknown and Box 2038, 96 Cariboo Hwy. 97, 100 Mile House Plaintiff: Bonnie Gilchrist 275 South Cedar Ave., 100 Mile House Claim: Rescission of of a property purchase contract after the property was found to have rotting supports and other problems; and damages. Defendants: LiftX International Equipment Inc. dba LiftX Parts International and Dan Hildebrandt and David

ou’ve all seen the video and still photos of the regrettable events in downtown Vancouver following the Canucks’ Stanley Cup loss. But what if, while watching the news, you spotted one of your employees participating in the mayhem? The first thing you should probably do, as an employer, is nothing. It is important not to react in a knee-jerk fashion to seeing an employee caught on video smashing a window, looting, setting fires, etc. Take your time, think about the situation, consider what you’ve seen and get some legal advice. And remember, in criminal matters, everyone is innocent until proven guilty (even if the video evidence is quite damning). It may be useful to start from the legal premise that what employees do on their own time is largely their own business, not their employer’s. If, however, their private activities negatively impact their employer’s business or reputation in some manner, then that’s a different matter. If my employee were caught on video lighting a car on fire while plainly wearing a t-shirt emblazoned with the name of my company, I might have a reason to be concerned. Or, if that employee is so well known in the community that viewers could be expected to connect him or her with my business, a similar concern might arise. Similarly, if the employment relationship is one in which observance of the law is a critical element, the employer may have good

reason for concern. As an example, if the employee works in a role counselling young offenders on living a crimefree life, his or her actions on the streets of Vancouver might be seen as undermining the employment relationship.

If the employee works in a role counselling young offenders on living a crime-free life, his or her actions on the streets of Vancouver might be seen as undermining the employment relationship In those instances a disciplinary response, possibly including termination for just cause (in which case no working notice or severance pay would be required), might be justified. This is a conclusion that should only be reached after seeking legal advice about the specific circumstances. Employers can, of course, terminate an employment relationship on a not-forcause basis as well (at least in a non-union setting). If the employee’s activities were so offensive that the employer simply wants to be rid of him or her, without worrying about whether just cause existed, the not-for-cause route might be the way to go. However, doing so will require compliance with the statutory (employment standards) and common law

requirements to provide working notice or severance pay in lieu. Though it may not feel right to give working notice or to pay such an employee a lump sum on his or her way out the door, the law requires employers do so unless true just cause for summary dismissal exists. Even if the employer does comply with its legal notice or severance pay obligations, that isn’t necessarily the end of the matter. Human rights legislation prohibits employers from refusing to employ (or continue to employ) a person who has been convicted of a criminal or summary offence that is unrelated to the employment. So, going down either a just cause or a not-for-cause termination path against an employee charged or convicted of a crime could result in a human rights complaint of discrimination. That is surely not a result that the employer will have been seeking. The ideal situation for the employer, if it makes a decision to terminate an employment relationship, is to have the employee go away without suing or filing administrative complaints (such as one alleging discrimination). Achieving that result will take patience and some expert advice for the employer to avoid creating legal problems for itself. • Robert Smithson is a labour and employment lawyer and operates Smithson Employment Law in Kelowna. For more information about his practice, or to subscribe to You Work Here, visit www. smithsonlaw.ca.

Deadline August 31, 2011 Thanks to a generous gift made by Maria Logan, a long-time Arts Club supporter, all new or increased gifts to the Arts Club Theatre Company will be matched up to $35,000.

Make your donation today Online: www.artsclub.com Phone: 604.687.5315 x261 Mail: 1585 Johnston Street Vancouver, BC V6H 3R9

Maria Logan

The Arts Club Theatre Company is a not-for-profit registered charity and all gifts $20 and more will qualify for a tax receipt.

Photo by Claude Biron

Now is the time to give

For more information, contact Sheila Kearney Miller at skmiller@artsclub.com or 604.687.5315 x261

22 Law

Daily business news at www.biv.com June 28–July 4, 2011

Trouble

daily online edition

BUSINESS TODAY Coastal Contacts competitor denies breaching employment contract IseeIsee Optical principal Nelson Tin rejects claims from former employer and online eyeglass-selling giant Coastal Contacts Inc. that he misappropriated confidential information and used it to create his new company. Business in Vancouver reported earlier this month that Coastal Contacts (TSX:COA) had filed a notice of civil claim in B.C. Supreme Court alleging that Tin breached his employment contract by using proprietary knowledge to establish a competing eyeglass and contact lens seller (See “Coastal Contacts sues former employee for launching competitor”– BIV Daily News; June 9, 2011).

Tin said in his June 14 statement of defence that he “has not at any time breached any duty owed to Coastal [Contacts].” He also specifically denies using any confidential information for his own commercial purposes and profiting from knowledge gleaned at Coastal Contacts. “The defendant did not acquire customer lists and contact information and his knowledge of suppliers was knowledge common to many others in the eyewear business,” read Tin’s response. Coastal Contacts asserts that Tin was a laboratory supervisor when he left the company in October 2010. It contends that Tin’s duties included developing Coastal Contacts’ manufacturing process and serving as the primary contact for sup-

pliers. Its lawsuit says that Tin, in that privileged position, was able to have access to supplier lists, customer lists and detailed financial information. Coastal Contacts released earnings on June 13 for the second quarter, which ended April 30. Its sales for the second quarter increased 17% and set a quarterly record of $43.8 million compared with $37.3 million in 2010. Second-quarter 2011 gross margins increased to $13.7 million or 31% compared with $10.3 million or 27% during the same period in the prior year. Profit in the quarter dipped to $17,000, compared with $382,000 in the same quarter in 2010. • June 22

Trouble Hicks 422 Richards St., Vancouver and 36–22740 116th Ave., Maple Ridge Plaintiff: Leavitt Machinery General Partnership 24389 Fraser Hwy., Langley Claim: An order for the delivery of all confidential information from the defendants, arising from breach of employment contracts when former Leavitt employees went to work for competitor LiftX; damages; an accounting; and an order.

Defendants: Springbank Development Corp. and Springbank Development (Langside) Corp. and Affiliated Roofers Ltd. formerly known as 0779120 B.C. Ltd. and Steve Simonen aka Steven Simonen aka Stephen Simonen and John Does #1-2 410–1770 W. 7th Ave., Vancouver and 1450– 13401 108th Ave., Surrey and addresses unavailable Plaintiffs: Jorge Manuel de Coelho Araujo and Maria Christina de Barros Araujo 800–885 W. Georgia,

An evening full of Fun, Food & Fundraising

Project Empty Bowl presented by Coast Capital Savings

Thursday July 7, 2011 6:30PM at the Coast Coal Harbour Hotel Tickets: $85 if purchased before June 24, 2011 $100 if purchased after June 24, 2011 Tickets on sale now at www.alovingspoonful.org or you can call 604-682-6325 to purchase by phone Visa/MC/AMEX accepted Email: PEB@alovingspoonful.org More info at www.alovingspoonful.org

Vancouver Claim: Damages for negligence arising from a fire. Defendants: Springbank Development Corp. and Springbank Development (Langside) Corp. and Affiliated Roofers Ltd. formerly known as 0779120 B.C. Ltd. and Steve Simonen aka Steven Simonen aka Stephen Simonen and John Does #1-2 410–1770 W. 7th Ave., Vancouver and 1450– 13401 108th Ave., Surrey and addresses unavailable Plaintiffs: Nathaniel Leslie Jordan and Isabel Maria Jordan 800–885 W. Georgia, Vancouver Claim: Damages for negligence arising from a fire. Defendant: Philip John Stirling Address unavailable Plaintiffs: Wolfgang Schmidt and 0345269 B.C. Ltd. 660–220 Cambie St., Vancouver Claim: A declaration that 0345269 B.C. Ltd. is the sole legal and beneficial owner of the Atlantis V, arising from the plaintiff sailing the vessel away, unpaid for, and offering it for sale in Colombia; a declaration that Schmidt is the sole legal and beneficial owner of all the issued and outstanding shares of 0345269 B.C. Ltd.; orders; and damages. Defendant: Stephen Burns dba S&B Electric 26145 24th Ave., Aldergrove Plaintiff: David Schussler 1323 256 St., Aldergrove Claim: Damages for a fire

caused or contributed to by the faulty installation of electrical wiring.

misrepresented as a purchase agreement; and damages.

Defendants: Hillsboro Developments Ltd. and Read Jones Christoffersen Ltd. and Scott Management Ltd. and Newway Forming (1994) Ltd. and John Doe Reinforcing Steel Placement Contractor and the City of Vancouver and John Doe Certified Professional 1600–925 W. Georgia St., Vancouver and Box 11130, 3000–1055 W. Georgia St., Vancouver and 1200–200 Burrard St., Vancouver and 300–5687 Yew St., Vancouver and address unavailable and 453 W. 12th Ave., Vancouver and address unavailable Plaintiffs: The Owners, Strata Plan LMS 3057 and The Owners, Strata Plan LMS 3033 410–900 Howe St., Vancouver Claim: Damages for construction deficiencies and resultant damage.

Defendants: Canadian Auto Workers Union and Canadian Auto Workers Airline Local 2002, a division of the Canadian Auto Workers 205 Placer Crt., Toronto Plaintiff: Air Canada 7373 de la Cote Vertu Blvd. W., Saint Laurent, QC Claim: An injunction restraining the defendants from committing or conspiring to commit unlawful acts while picketing; damages and punitive damages.

Defendant: Derek Lewis 1–53 Willow Ave., Wolfville, NS Plaintiff: The Owners, Strata Plan KAS 2716 2400–200 Granville St., Vancouver Claim: Damages for property damage that occurred after clothing was hanged from a sprinkler head causing water damage. Defendants: Haney Builders’ Supplies (1971) Ltd. and Haney Builders’ Supplies (1971) Ltd. aka Haney Builders’ Supplies Ltd. and John Does #1-2 22334 McIntosh Ave., Maple Ridge and addresses unavailable Plaintiff: Roderick Dudley Fitzpatrick 116–11510 225th St., Maple Ridge Claim: Damages for injuries sustained when the plaintiff tripped over a bundle of metal bands. Defendants: Delta Land Development Ltd. and Keith Plumbing & Heating and Sterling, Cooper and Associates Mechanical Engineers Box 48600, 1200–200 Burrard St., Vancouver and 2900–550 Burrard St., Vancouver and 1777 W. 8th Ave., Vancouver Plaintiff: The Owners of Strata Plan BCS 334 2400–200 Granville St., Vancouver Claim: Damages for water damage caused by an improperly installed sprinkler system. Defendant: Transportaction Lease Systems Inc. 250–4011 Viking Way, Richmond Plaintiff: Sall Reddy 113–8623 Granville St., Vancouver Claim: Rescission of the motor vehicle lease agreement arising from the agreement being

Defendant: Smith Bros. & Wilson (B.C.) Ltd. 1600–1095 W. Pender St., Vancouver Plaintiff: G.A.P. Contracting Ltd. 1200–925 W. Georgia St., Vancouver Claim: Damages for debt related to excavation and shoring work. Defendant: Askew’s Uptown Shopping Centre Ltd. 4th floor, 3201 30th Ave., Vernon Plaintiff: South Central Electric Ltd. 51 3rd St. NE, Salmon Arm Claim: Damages for breach of an electrical work contract. Defendant: Summit Marketing Canada Ltd. 301–2502 St. Johns St., Port Moody Plaintiff: Peter BellIrving and eMCap Consulting Inc. 203–2403 Marine Dr., West Vancouver Claim: Damages for wrongful termination and breach of contract related to software services. Defendant: ATI Telecom International Co. 1500–1040 W. Georgia St., Vancouver Plaintiff: Telus Communication Co. 2100–3777 Kingsway, Burnaby Claim: Damages for telecommunications equipment that was damaged during an installation. Defendants: British Columbia Hydro and Power Authority and Asplundh Canada ULC 333 Dunsmuir St., Vancouver and Box 30, 2300–550 Burrard St., Vancouver Plaintiff: Preston Dan Lenko 1220–1200 W. 73rd Ave., Vancouver Claim: Damages for trespass and trees that were pruned, damaging a property. Defendants: SGN Construction Ltd. and Nachhattar Singh Kang and Gurpal Singh Pooni 7800 118th St. Delta Plaintiff: Sukhwinder

Dhillon 206–8388 128 St., Surrey Claim: A declaration Pooni and Kang acted in a manner oppressive to the plaintiff related to investment in properties; an order; an accounting; a tracing; and damages for breach of contract and unjust enrichment. Defendants: Adrian Jacob and Adrian L. Jacob Ltd. 516 Ballantree Pl., West Vancouver and 1100– 925 W. Georgia St., Vancouver Plaintiff: John Cervic and A.A.T. Services Ltd. 2100–1040 W. Georgia St., Vancouver Claim: A declaration the defendants are in breach of the joint practice agreement related to accounting services; a declaration Jacob is in breach of his fiduciary duties; a declaration the defendants hold all revenue received and profits realized, or, a declaration the goodwill associated with the client accounts was an asset of the partnership; a declaration the defendants hold and continue to hold all revenue received and profits realizes attributable to the client accounts; an accounting; payment of the amount found to be due; and damages. Defendant: American LaFrance LLC 400–2711 Centerville Rd., Wilmington, DE Plaintiff: First Truck Centre Vancouver Inc. 2900–595 Burrard St., Vancouver Claim: Damages for breach of contract related to vehicle deliveries. Defendant: City of Nanaimo Address unavailable Plaintiff: 7–Eleven Canada, Inc. 1700–666 Burrard St., Vancouver Claim: Compensation over and above the advance payment including losses and damages, arising from an expropriation. Defendants: Jill Irvine and Diane G. Lee Physiotherapist Corp. and D. G. Lee Physical Therapist Corp. carrying on business as Diane Lee & Associates 300–1688 152nd St., White Rock and 1450–13401 108th Ave., Surrey Plaintiff: Her Majesty the Queen in right of the Province of British Columbia Address unavailable Claim: Health-care costs for a stroke Lili Cecilia Kopala suffered after receiving physiotherapy treatment. Defendants: Crown Isle Holdings Ltd. and Silverado Land Corp., both dba Crown Isle

EVENTs

June 28–July 4, 2011 Business in Vancouver

Top 100 Public & Private companies

Top companies talk shop Occasion celebrates successes of B.C. businesses in 2010 By Jennifer Harrison

very year Business in Vancouver compiles a ranked list of British Columbia’s top 100 companies in both the private and public sectors. On Tuesday, June 14, senior leaders from among B.C.’s biggest companies gathered at the Vancouver Club to be recognized for their hard work and to discuss with their peers the remaining struggles being faced in this recovering

Bruce Hurst, chair of the board of governors, CGABC

financial climate. In a speech to the audience, Paul Harris, president of BIV Media Group, noted that in examining the lists many companies across a variety of sectors continued to exhibit flat revenue growth between 2009 and 2010. “There is still a long shadow over B.C.’s economy from the recession. While many of the province’s largest companies continue to recover from the shocks of the financial crisis, the recovery has not been as swift, nor as uniform, across the

Henry Ketcham, chairman, president and CEO, West Fraser Timber: his company is selling lumber at the same dollar price as in 1981

province’s diverse corporate landscape as many might have hoped,” Harris said. Harris remarked however that 2010 saw the turnaround of B.C.’s forestry sector, with the 12 publicly held forestry companies collectively posting their first increase in revenue in more than four years. Keynote speaker Henry Ketcham, chairman, president and CEO of West Fraser Timber Co. Ltd. (TSE:WFT), was quick to check any overinflated expectations that may derive from these increases. He spoke candidly about the current state of forestry in B.C. and his statements contradicted greatly the list’s findings. “The premise that things are getting better is wrong,” said Ketcham. He intimated that things were perhaps positive for a period of four to five months, but shot down the notion of a perceived recovery when he noted that his company is currently “selling lumber at the same dollar price as it was in 1981.” Ketcham was, however, optimistic about the industry’s future and spoke hopefully about the next five years, with China and its foray into lumber construction playing an integral role in the ultimate recovery of the once booming sector. • jharrison@biv.com

Cheryl Carter, vice-president, BIV Media Group; Henry Ketcham, chairman, president and CEO, West Fraser Timber; and Andrew Mortimer-Lamb, brand manager, Rolls-Royce Motor Cars Vancouver SPONSORED BY:

Paul Harris, president, Business in Vancouver Media Group; and Robert Doyle, CFO, Pan American Silver

Photos: Dominic Schaefer

Matthew Carlson, associate, Colliers International; Jason Ding, assistant controller, Coastal Pacific Xpress; and Mauk Breukels, director, investor relations and corporate affairs, Finning International

Change a Child’s Life

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Morris Nord, senior vice-president, marketing and client development, Pacific Blue Cross; Jill Arias, vice-president, marketing, First Majestic Silver; and John Crawford, CFO, Pacific Blue Cross

Sarah Vandekerkhove, marketing co-ordinator, Super Save Group of Companies; Bruce Hurst, chair of the board of governors, CGABC; and Anne Williams, director of public relations, Charlwood Pacific Group

Geoff Plant, board chair, Providence Healthcare; JoAnn Woodhall, Translink; and Derek White, executive vice-president of corporate development, Quadra FNX Mining

Nancy MacKay, founding partner, MacKay and Associates; Paula Martin, senior vice-president, member engagement; and Dennis Holmes, chairman and director, Travelers Financial

If you can’t use your tickets, then give them to us and we will send a child in need to the event, and issue you a tax receipt. Since 2004, Kids Up Front has provided more than 170,000 life-changing experiences to at-risk children across Greater Vancouver. To donate your ticket and provide a child with a lifetime experience, call 604.266.KIDS(5437) or visit us at: kidsupfrontvancouver.com

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For the record

Daily business news at www.biv.com June 28–July 4, 2011

index The following are People on the Move categories. Not all appear each week.

• Accounting • Advertising • Aerospace • Architecture • Associations/Societies • Biotech/Life Sciences • Communications/PR • Community • Design • Development/Construction • Education • Energy • Engineering • Finance • General

People on the Move Email your For the Record

information to: fortherecord@biv.com. Please include a high-resolution, colour headshot where possible.

•Aerospace

Larry Alexandre has been appointed president of HeliOne, replacing Neil Calvert, who has retired. Alexandre was previously CEO of Sagem Avionics and COO of Turbomeca.

•Development/ Construction

Marc Seguin has been appointed president of the CanWelBroadleaf division at CanWel Building Materials Group Ltd. He was previously general manager for the Quebec region.

•Energy

Greg Ya n ke ha s been appointed a director of Sky Harvest Windpower Corp. Yanke was a co-founder of Sky Harvest’s Saskatchewan subsidiary and is the principal of Gregory S. Yanke Law Corp.

•Finance

David Heighington has resigned as a director of Windfire Capital Corp. and Norman Meier has been appointed to t he board. Meier is a principal and CEO of Athena Capital Partners.

•General

Jean Pierre Cartier and Tony Talarico have joined e=mc2 as director, business

• Health/Medical • Hospitality/Tourism /Convention • Human Resources • Legal • Marine • Manufacturing • Media • Public • Real Estate • Resources • Sales/ Marketing • Technology • Telecommunications

Dan Mott, president, Mott Electric GP; Adrienne Bakker, president and CEO, RCH Foundation; and Lars Huebner, interventional radiology supervisor, RCH

development, and event producer, respectively. Both were previously senior members at MVKA Productions.

Lui Garcea, executive marketing manager, Starlight Casino; Gavin Palmer, guest services manager, Starlight Casino; Larry Ho, executive general manager, Starlight Casino; and Laurie Tetarenko, vice-president, RCH Foundation

president of the Philippines for Phelps Dodge Exploration Corp.

Janine Davies has joined the board of the Coquitlam Foundation. She is a branch manager with G&F Financial Group. Mary Jane Stenberg has been appointed president of the Surrey Board of Trade. She is the executive director, external relations, for Kwantlen Polytechnic University. Other new board members are: Shelley Besse, senior vice-president, operations, sales and member experience, First West Credit Union; Jack Boyce, director, commercial credit, Coast Capital Savings; Jane Hawkins, director, administration, Simon Fraser University; John Kearns, general manager, Sheraton Vancouver Guildford Hotel; Jean-Paul Laube, business development manager, Abbotsford International Airport; Mauro Manzi, district v ice-president, TD Canada Trust; Jason Maynes, lawyer, Hamilton Duncan Armstrong & Stewart Lawyers; Bijoy Samuel, general manager, South Asian Broadcasting Corp.; Hitesh Tailor, principal, Stantec Consulting Ltd.; and Shayne Williams, executive director, South Fraser Community Services Society.

•Human Resources

Barb Collum has rejoined Angus One as a senior recruitment consultant in the permanent placement division. She previously held

Ross Hollinger has been appointed mine manager for Barkerville Gold Mines Ltd. He was previously general manager at Noranda Mines. Nafeesa Valli-Hasham and Parvinder Hardwick are associates at Clark Wilson

the same position at David Aplin Recruiting.

•Legal

Nafeesa Valli-Hasham and Parvinder Hardwick have joined Clark Wilson LLP as associates in the corporate finance and securities group and the commercial real estate and municipal law group, respectively. Valli-Hasham was called to the B.C. bar in 2009 and Hardwick in 2007.

•Real Estate

Mike Shaik h has been appointed to the board of Amica Mature Lifestyles Inc. He is a director of Provident Energy Ltd., Pace Oil and Gas Ltd., Charger Energy Corp. and Hawk Exploration Ltd.

•Resources

Todd Burlingame a nd Gary Norris have joined Alderon Resource Corp. as executive vice-president,

Janine Davies joins the board of the Coquitlam Foundation

environment and aboriginal affairs, and executive vicepresident, government and community affairs, respectively. Burlingame was previously manager of environment and aboriginal affairs and chief negotiator for Nalcor Energy. Norris was previously clerk of the executive council and secretary to cabinet in Newfoundland. Korm Trieu ha s been appointed CFO of Almaden Minerals Ltd., replacing Mark Brown, who has joined the board of the company. Trieu was previously vice-president, finance, for Sprott Resource Lending Corp. Lawrence Cooper, Peter Chilibeck and David Volkert have joined the board of Millrock Resources Inc. Cooper is CFO of Millrock and was previoulsy senior vice-president and manager of the commercial banking group at the National Bank

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Barb Collum rejoins Angus One as senior recruitment consultant

of Alaska and Wells Fargo Bank, N.A. and CFO of Ukpeagvik Inupiat Corp. Chilibeck was previously managing director and senior vice-president and general counsel of Llewellin Capital, Inc. Volkert is president and CEO of Paget Minerals Corp. and was previously exploration manager and chief geologist for Barrick Gold Corp. and vice-president, exploration for Bear Creek Mining Corp. Ross Glanville has been appointed to the board of Silvercrest Mines Inc. He is a director of Archon Minerals Ltd., Clifton Star Resources Inc. and Starfield Resources Inc. David Boehm and Willia m McC a r t ney have resigned as director, and CEO and CFO, respectively, at Terrace Resources Inc. Eric Boehnke has been appointed CEO and Jennie Choboter has joined as CFO. Boehnke was previously CEO of Dynasty Mining and Metals Inc. and Choboter is CFO of Winwell Ventures Inc. and Sunward Resources Ltd. Darryl Cardey has been appointed to the board of Castle Peak Mining Ltd. He is a partner with CDM Capital Partners, CFO and co-founder of Crazy Horse Resources and co-founder of Underworld Resources and Minaurum Gold. Fred Tejada ha s been appointed vice-president of operations and exploration at Tirex Resources Ltd. He was previously vice-president, exploration, at Panoro Minerals Ltd. and country manager and

Hats Off Business in Vancouver wel-

comes submissions from local small businesses and large corporations alike that demonstrate examples of corporate philanthropy and community involvement in the Vancouver area. Highresolution images are also welcome. UBC law alumni at Bennett Jones donated $125,000 to the UBC Law Building Project. Spectra Energy donated $50,000 to the VGH & UBC Hospital Foundation to go toward burn and wound healing research at VGH. Mott Electric GP donated $10,000 to the RCH Foundation as part of Mott’s gold-level sponsorship of the SHINE gala. Starlight Casino donated $5,000 to the Royal Columbian Hospital Foundation’s multipurpose interventional suite campaign that will help expand cardiac, stroke and aneurysm care at RCH. Marcus J. Hair & WellBeing raised $2,500 through a cut-a-thon to help provide human hair wigs for kids living with cancer or other serious illnesses. Choices Retail & Recycling Centre donated 12 kilograms of pennies to the Peace Arch Hospital and Community Health Foundation. Funds were raised through the “Pennies for the Peace” jar at the recycling centre. Kwantlen Polytechnic University awarded Irving Barber, founder of Slocan Forest Products Ltd., an honourary doctor of laws. •

Management

June 28–July 4, 2011 Business in Vancouver

CEO Advantage

Nancy MacKay Get buy-in before adding to your executive team

EO challenge: The CEO of a high-growth company had just completed a successful acquisition and wanted to ensure the new addition was well integrated into the organization. At the same time, he needed to free up his time to continue working the company’s growth strategy so he decided to expand the executive team with a new COO role. Up to this point, the group had consisted of a CFO, CIO and vice-presidents of human resources as well as sales and marketing. The CEO was introduced to a rock star candidate through an industry colleague. They met and the CEO was impressed, eventually inviting the potential executive to meet with the team to see if he would be a good fit. Much to his surprise,

when he announced the plan, he got significant resistance from each person and was told the role would interfere with the ability of the organization to move forward. The result: a complete loss

Leaders must follow the principle that strategy drives structure and role clarity of trust in the CEO by the executive team members. CEO mistake: The CEO had made three critical mistakes. First, he did not explain at the outset why he felt a COO role was necessary to set the team up for greater success. He also did not give the other executives the

opportunity to have a say in the decision and to help with the development of the role to ensure there were clear interdependencies with other management functions. Lastly, he did not give anyone on his team the opportunity to express his or her own interest in the new role before he began recruiting. CEO solution: Leaders must follow the principle that strategy drives structure and role clarity. At the outset, our CEO should have explained the thinking behind the need to change the team structure and then defined the new role and its responsibilities. In clarifying a new job, it is important to seek the input of each team member individually. Give all executives an opportunity to discuss the business outcomes

HR pros can learn from NHL draft “Group think” can lead to inferior decision-making processes

ational Hockey League general managers’ longtime failure to accurately gauge young hockey players’ likelihood of success provides valuable lessons for human resources managers, according to Beedie School of Business professor Peter Tingling. The biggest problem is what he calls “group think.” Burnaby’s Ryan NugentHopkins was widely expected to be picked No. 1 in the leadup to the NHL’s entry draft June 24. Those picked first overall, however, sometimes wind up as mediocre players, while players drafted next, or even several rounds later turn out to be superstars. The Vancouver Canucks’ good fortune at drafting Daniel Sedin No. 2 overall and Henrik Sedin No. 3 overall in the 1999 entry draft was only possible because the Atlanta Thrashers picked Patrik Stefan No. 1. Now-retired, Stefan played 455 NHL games and scored a total of 188 points. By comparison, the Sedins have played 1,777 games and scored 1,445 points between them. Boston Bruins goalie Tim Thomas, who stymied the

JEFF VINNICK/VANCOUVER CANUCKS

By Glen Korstrom

Vancouver Canucks star Henrik Sedin was overlooked when the Atlanta Thrashers had their pick in 1999

Canucks and won the Conn Smythe Trophy as the most valuable player in the playoffs, was drafted in the ninth round, or 217th overall by the Quebec Nordiques in 1994. Tingling, who just released the report Aiming for the Mean: Why Isn’t Drafting Better Than Guessing along with fellow Simon Fraser University professor Michael Brydon, said the culprit for many bad decisions is that scouts are not free to voice opinions independently. The players’ young age can make selecting future superstars difficult, Tingling said, but there is more at play. “Group think is a funda-

mental bias that involves everyone wanting to get along,” he said. “Sometimes you need to be more independent but that’s really, really hard.” Business executives can learn from this, he said. Frequently, for example, businesses hire people after having candidates interviewed by a panel. The problem can occur when notes are shared or if discussion starts with comments from high-ranking executives. “If the vice-president gets up and says, ‘I like Jane. What do you think?’ Guess what? Others are going to say that they like Jane too,” Tingling said. “If the lowest-status person can say, ‘I have a couple concerns about something Steve said in the interview. Then, often people are listening. But if it is the vice-president or CEO who gets up and says, ‘I like this,’ then others will fall in line.” Tingling is also a principal of Vancouver’s 11-employee Octothorpe Software, which has proprietary software to help companies determine how to retain the right staff. • gkorstrom@biv.com

of the new position and then work together as a team to finalize the role description. In order to identify the best recruiting process for the new role, discuss the pros and cons of doing an internal search versus working with an external recruiter and demonstrate that a key position such as a COO will require the help of external experts. And to retain top talent, give anyone on the team who wishes to apply for the new

Careers

job the opportunity to do so, provided they have the required skills, behaviours and experience to deliver results. Finally, to further minimize resistance, give everyone the chance to participate in the recruiting process, including meeting potential candidates and having input to the final selection decision. In this case it took the CEO three months to rebuild his team and earn back

his collegues’ trust. By that time, the original COO candidate was long gone and the firm wisely sought external recruiting help. Four months later, a COO candidate was finally hired. • Nanc y Ma cK ay i s the president of MacKay & Associates (www.mackayandassociates.ca) and the CEO coach and facilitator of 15 CEO and executive forums across Canada with more than 150 members.

• www.employmentinvancouver.com • E-mail: employpaper@biv.com • Tel: 604-688-8828 • Fax: 604-669-2154

Work With us & groW a career Glacier Media Group is growing. Check our job board regularly for the latest openings: www.glaciermedia.ca/careers

7TH ANNUAL

MEGA JOB FAIR

AND TRAINING SOLUTIONS THURSDAY, JULY 21st, 2011 Looking for work? Want to upgrade your skills? Numerous employers & training centers will be attending the PICS MEGA JOB FAIR!

North Surrey Recreation Centre 10275 - 135th Street, Surrey 10:00 am - 5:00 pm (near Surrey Central Skytrain Station)

Progressive Intercultural Community Services Society (PICS) www.pics.bc.ca • Fax: 604-596-7721

604-596-7722

Ext. 125

Datebook

Daily business news at www.biv.com June 28–July 4, 2011

Guarantee the publication of your listing for $50 per issue (plus hst). 604-608-5189 or datebook@biv.com Deadline for Datebook listings is noon Tuesday for the following week’s paper. Listings are published on a guaranteed basis for $50 per week, plus gst. Free listings will run in print as space permits. Go to www.bivdatebook. ca to post your listing. Published Datebook listings are at the discretion of BIV.

Breakfast, Luncheon, Dinner Meetings Oil Sands Innovation and Technology: The Key to Current and Future Challenges June 28, 2011, 11:45 AM: Don Thompson, President, Oil Sands Developers Group (OSDG). $69 members and guests/ $96 futuremembers (+HST). The Sutton Place Hotel, Versailles Ballroom, 845 Burrard Street. Vancouver, BC. reservations@boardoftrade. com. www.boardoftrade.com. Vancouver AM Tourism Association Meeting July 8, 2011, 7:00 AM: Inside the brand new Bank of Montreal tent! Speaker: Christopher Gaze, Artistic Director, Bard on the Beach. Catering by The Butler Did It. $28 members, $38 non-

members, $23 students. Bard on the Beach, Vanier Park . Va n co u ve r. 6 0 4 -7 3 8 - 5 5 0 6 ; office@vancouveram.ca. www. vancouveram.ca. Spirit of Giving July 13, 2011, 10:00 AM: Spirit of Vancouver invites you to our annual Spirit of Giving luncheon on-board the majestic ms Volendam cruise ship to experieance the incredible food, wine, hospitality and service of Holland America, and hear from a special guest speaker. $69 members and guests/$96 future-members (+HST). Holland America Line’s ms Volendam, Cruise Ship Terminal Level, 999 Canada Place. Vancouver, BC. www.reservations@boardoftrade. com. www.boardoftrade.com.

Conferences, Conventions, Tradeshows UBC Summer Institute in Sustainability Leadership July 4, 2011, 8:15 AM: Oneweek professional development program designed to help you accelerate the sustainability agenda in your organization/ community. Participants gain the perspectives and strategies needed to develop policies, create plans and manage sustainability plans. Price varies. UBC Point

Grey Campus. Vancouver, BC. sustainability@cstudies.ubc.ca. cstudies.ubc.ca/sisl. The World MoneyShow Vancouver September 19, 2011, 8:30 AM: Learn how to best position your portfolio for profit in 2011 and beyond. As this new era of investing unfolds, smar t investors know it’s imperative to stay informed and educated. Free admission. Vancouver Convention Centre, 1055 Canada Place. Vancouver. 800-970-4355. http:// www.moneyshow.com/tradeshow/ vancouver/world_moneyShow/ main.asp?scode=023199. APEGBC Annual Conference & AGM October 13, 2011, 8:00 AM: Join us as we celebrate the accomplishments in the professions of engineering and geoscience. As BC’s premiere engineering and geoscience event, the Annual Conference and AGM are sure to offer participants valuable opportunities to network with leading professionals in the industry. Price varies. Delta Grand Okanagan Resort and Conference Centre. Kelowna, BC. Shirley Chow: 604-412-4865, ac2011@apeg.bc.ca. http://www.apeg.bc.ca/ac2011/.

Forecasting Bc’s gloBal economic Future

The Whistler Chamber of Commerce would like to thank all speakers, sponsors and delegates of the inaugural OUTLOOK Economic Symposium in Whistler, June 5-6, 2011. Your participation helped OUTLOOK highlight the many economic challenges and opportunities facing BC and Canada in the decade ahead and identified key strategies for prospering in the global economy. We look forward to seeing you in 2012!

gOLd SpOnSOrS

BrOnzE SpOnSOr

SiLvEr SpOnSOrS

aCCOmmOdaTiOn SpOnSOr

prOmOTiOnaL parTnErS

Courses, Workshops, Seminars Leadership Skills for Managers & Supervisors/ Managing Generational Differences (Vancouver Seminar) June 28, 2011, 9:00 AM: Learn the differences between being a great leader who develops high performing and engaged teams, and one who simply manages them, and how leaders create more prof it . G ain a deeper understanding of the characteristics and behaviours of the generations. $125.00+HST 1/2 day, $199.00+HST full day. BCIT Campus, 555 Seymour Street. Vancouver. dwalmsley@dlionline. ca or 604 824-6776. https://www. dlionline.ca/seminars.php. Leadership Skills For Managers & Supervisors/ Managing Generational Differences (Abbotsford Seminar) June 29, 2011, 9:00 AM: Learn the differences between being a great leader who develops high performing and engaged teams, and one who simply manages them, and how leaders create more prof it . G ain a deeper understanding of the characteristics and behaviours of the generations. $125.00 +HST 1/2 day; $199.00 +HST full day. Abbotsford Ramada Plaza and Conference Centre. Abbotsford. dwalmsley@dlionline.ca, 604 824-6776. https://www.dlionline. ca/seminars.php. BCBusiness TOP 100 - See and Hear Jimmy Live! June 29, 2011, 1:00 PM: Less than 100 tickets remain to see and hear Jimmy Pattison live. For only $99, learn how to make your business better. You’ll also receive a one-year subscription to BC Business magazine and a copy of Peter Legge’s best selling book The Power of a Dream. $75 plus HST. Fairmont Hotel Vancouver. Vancouver. Tim Reyes, 604639-3798. bcusinessonline.ca/ top100event.

Canadian Securities Course (CSC) July 6, 2011: Have the skills and knowledge to become a licenced mutual funds salesperson with our Canadian Securities Course. Ashton College. Vancouver. 604899-0803/info@ashtoncollege. com. www.ashtoncollege.com. HR Metrics Service - Demo & Overview: Manufacturing July 21, 2011, 9:30 AM: Come join us for an overview of the HR Metrics Benchmarking Service with a special focus on the Manufacturing Sector. No charge. Online. 604-694-6946. http://www. bchrma.org/content/events/ls/ details.cfm?EventID=035-237. HR Metrics Benchmarking Service - Demo & Overview July 22, 2011, 8:30 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo. No charge. Online. 604-694-6946. http://www. bchrma.org/content/events/ls/ details.cfm?EventID=035-222.

HR Metrics Benchmarking Service - Demo & Overview: High-Tech October 27, 2011, 9:30 AM: Come join us for an overview of the HR Metrics Benchmarking Service with a special focus on the HighTech. Sector Online. 604-6946946, lwhalley@bchrma.org. HR Metrics Benchmarking Service - Demo & Overview October 28, 2011, 8:30 AM: If you are looking to learn more about the HR Metrics Service, sign up for this 1-hour demo. No charge. Online. 604-694-6946, lwhalley@ bchrma.org. http://www.bchrma. org/content/events/ls/details. cfm?EventID=035-223.

Festivals Agassiz Slow Food Cycle Tour July 23, 2011, 9:00 AM: This tour provides an educational and culinary experience exploring many farms, some that are open to the public on these days only. This is an event that is suitable for families of all ages. $20/person, children 12 and under are free.

Fresh. Local. Business. Daily news to your inbox. Sign up at www.biv.com

www.bivdatebook.com Meet at the corner of Cameron and McCallum Road. Agassiz. www.slowfoodvancouver.com. Chilliwack Slow Food Cycle Tour July 24, 2011, 9:00 AM: This tour provides an educational and culinary experience exploring many farms, some that are open to the public on these days only. This is an event that is suitable for families of all ages. $20/ person, children 12 and under are free. Tourism Chilliwack Visitor Centre, 44150 Luckakuck Way (Exit #116 from Hwy 1, in front of Heritage Park). Chilliwack. www. slowfoodvancouver.com.

Golf Tournaments Vancouver CREW 6th Annual Golf Tournament and Silent Auction Fundraiser July 21, 2011, 11:00 AM: Join us at the 6th Annual Vancouver CREW Golf Tournament. The tournament includes 18 holes of golf with a golf cart, the West Coast Classic Buffet dinner, and prizes. Members $225; nonmembers $250. Mayfair Lakes Golf & Country Club. Richmond. Vancouver CREW: 604-601-5107, office@vancouvercrew.org. www. vancouvercrew.org. Business Leaders Golf Tournament August 23, 2011, 12:00 PM: Play golf with the Vancouver business community including senior executives, dealm a ke r s a n d p rofe s si o n a l s involved in corporate growth, development, and mergers and acquisitions. A full day event including golf, dinner and great prizes! $175 BIV subscribers, ACG or TMA members/$200 general public. University Golf Club, 5 185 University Blvd. Vancouver. Aly-Khan Virani: avirani@biv.com, 604-608-5197. https://www.eplyevents.com/ BusinessLeadersGolfTournament.

Networking functions Mature Women’s Network Annual Bus Trip August 6, 2011, 8:45 AM: An invitation to women over 40 years for a day bus trip including lunch, museum tours, farms, historic sites and gift shops in the Harrison area. Our bus trips are always a highlight of the year for an enjoyable social day. Prepay to register: $20.00 members, $30.00 non-members (includes membership for balance of year). 411 Dunsmuir Street. Vancouver. 604-681-3986 or m_miller77@ hotmail.com. http://upcoming. yahoo.com/event/8149717/BC/ Vancouver/Women39s-AnnualS u m m e r- B u s-Tri p / M a tu re Women39s-Network/. •

marketing

June 28–July 4, 2011 Business in Vancouver

Dominic Schaefer

Showtime

Getting the most bang for your exhibitor’s buck

Hanif Muljiani, president, Xibita: “it’s OK to make your visuals big and bold – trade-show marketing is usually larger than life – but don’t dilute the message.” Inset: Ad Pages magazine, from which this story is exerpted, offers advice and strategies on advertising, marketing, promotions and public relations

By Noa Glouberman

ever underestimate trade shows. “The idea that trade shows don’t make good use of marketing dollars is false,” said Mark Bourgeau, president of Delta-based Exhibitree Display. “Trade shows are one of the best ways to build brand awareness and generate sales leads, but you need to make sure that you cover all your bases.” Begin by defining your goals. “How many [sales] leads do you want to walk away with?” Bourgeau asked. “That [question] forms the basis for investing your money in the kinds of things that will create a trade-show environment that will help you meet your objective.” “The end product may be a physical booth, but your main focus should be on attracting customers and generating business,” said Bennett Hui, owner of Speedpro Imaging in Richmond. “You have to put yourself in the attendees’ shoes by asking, ‘What can I do to make the best first impression? How can I differentiate myself from competing exhibitors?’” With just three seconds to pique the interest of passersby, you must create a trade-show presence that “reaches out and grabs people,” said Hui. Make sure “your display and your team look their best.” “Companies often make the mistake of not sending their CEOs, managers and technical staff to a trade show,” said Hanif Muljiani, president of Richmond-headquartered Xibita Ltd. “Your instinct may be to send employees who can more easily give up a day of work. But remember, you’re there to meet potential clients, and statistics show

that they’re often ready to buy. If they have technical questions or want to make a deal, you must have senior-level attendance and technical know-how at the show.” Just as pressing: booth placement. “Some spots in a convention space get less traffic; some get more,” said Hui. “Real estate counts, so make sure you locate yourself strategically when you sign up” as an exhibitor. Parking yourself by your competitors, he added, isn’t necessarily a bad idea: “Think about those districts in big cities where similar businesses clump together. People know to go there to get that product; the same goes for trade shows.” After that, according to Muljiani, “it really comes down to what are you going to say. You need one bold, impactful, laser-focused statement that instantly tells people who you are and what your value proposition is. “It’s OK to make your visuals big and bold – trade-show marketing is usually larger than life – but don’t dilute the message.” Hui agreed. “You’d be surprised at how many exhibitors put too much detail up or too many busy graphics and images. Make sure that the text in your signs and displays is big enough to be seen from 20-plus feet away, but don’t drown it out with too many distractions.” Bourgeau said, “You need to be quick and succinct at attracting people’s attention. If they don’t instantly connect their needs with your booth, they won’t give you a second glance. They’ll just walk right by you.” Hui advised “doing something less conventional, something

different” from what others do. Changing something simple, like flooring, can make an impression. Getting heavy-handed with gimmicks, however, can backfire. Hui warned against cramming your booth with “everything your business has,” lest “ things get too busy.” As for hand-outs, “70% of all trade-show materials – brochures, freebies, gifts – get thrown away,” said Muljiani, adding that many delegates travel long distances to the show and have little room in their luggage to carry giveaways home. “Quality before quantity,” he said. “You have to think, ‘What’s the value in giving that gift?’ Is it going to help you to make a sale, get a contact name or number or follow up” with the contact later? One of the best freebies he himself has ever received was a twopart gift: a remote-control car bearing the company’s logo. The remote was missing. As he recalls, an attached note read, “‘Want the remote? Ask us to drop it by in person, and we’ll tell you how our company can help your business.’ Brilliant.” Muljiani said, “Don’t be afraid to do things in a fun, cheeky way, even when it comes to your booth staff. Those energetic, bubbly people can work wonders in drawing a crowd and making those critical connections for your business. That is, after all, the whole value of a trade show: you’re investing in meeting people.” • This article is reprinted from Ad Pages magazine, which will be delivered in the next issue of Business in Vancouver (issue 1132; July 5-11).

Booths designed by Xibita (top to bottom): Windset Farms, Restylane, Algoma University

Comment

Daily business news at www.biv.com June 28–July 4, 2011

letters

“The Cloud” could supply power harvest for B.C. Cloud computing is becoming a big part of many people’s lives (whether they know it or not), and that growing computer cloud could have a big silver lining for British Columbia. For those not completely up on cloud computing, it allows people to put their files and software on remote servers, which they can then access from wherever they are on their laptop, desktop or any other computer device, including cellphones. So what’s the silver lining for British Columbia? Well, all those remote servers that support the cloud require a lot of electricity, particularly to keep them cool. And right now, most of the cloud-computing servers around the world are being powered, and cooled, by coal-fired electricity. In fact, information and communications technology (ICT) worldwide (which includes cloud computing) is now believed to rival the airline industry in terms of carbon emissions. However, if the world’s cloud-computing servers were moved to British Columbia, those servers could be powered by the abundance of clean, renewable energy available in this province instead of by burning coal or gas. Moving all those energyhungry computer servers to places like British Columbia, where clean electricity can be generated in abundance, seems like a logical thing to do and a golden opportunity for British Columbia. Charles Davis, White Rock

Cartoon by Rice

Public eye

Sean Holman

Applause for Hydro’s efforts to resolve longsimmering B.C. native power grievances BC Hydro deserves to be applauded for its recent efforts to resolve longstanding First Nations grievances. Many of the province’s mega-dams and transmission lines were put in place decades ago without any compensation to First Nations affected by the projects. In many cases, traditional lands were flooded and lost forever. Adding insult to injury, many First Nations communities in British Columbia continue to rely on diesel generators for their electricity even though power transmission lines often run overhead through their communities. Prime examples are the three First Nations communities near Harrison Lake, which were only recently connected to the BC Hydro power grid. Things are gradually changing for the better for British Columbia’s First Nations and a new relationship is being forged. And energy development is clearly at the centre of this new relationship. New energy projects are providing job opportunities and training for First Nations as well as partnership opportunities that will allow British Columbia’s First Nations to share directly in the long-term benefits. BC Hydro’s efforts to reverse past wrongs deserve to be recognized and hopefully the settlement it has reached with the St’at’imc First Nation is the start of good things to come and a sign of a more respectful, fair and balanced relationship. Yolanda Lora Vilchis, Surrey

Offshore ownership, housing speculation should be a top municipal election issue Re: “Offshore Ownership hits local real estate hot button” (Peter Ladner’s At Large column – issue 1121; April 19-25) I support your contention this is a hot issue in Vancouver. I live at 29th and Main Street and it’s a topic of constant conversation and speculation among neighbours and friends. The issue has hit a breaking point for many looking to either buy or move up (mostly the latter, as first-time homebuyers are already out of the market in Vancouver). We don’t want to see our house values go down, but we all recognize the need for some sanity. The only ones making real money from house inflation are the banks. This offshore investor cause seems to be the only one that we can identify that accounts for the disparity between Vancouver and everywhere else. However, much of the evidence is speculative, and research is warranted. For the NPA, this should be the first issue broadcast under a business competitiveness (a.k.a. jobs) strategy for November’s municipal election. Robert Napoli, Vancouver

What’s your opinion? BIV welcomes readers’ opinions. All letters, including those sent by e-mail, must include the author’s name, address and daytime telephone number. Business in Vancouver, 102 East 4th Avenue, Vancouver, B.C. V5T 1G2. Fax: 604-688‑1963. E-mail: news@biv.com. We reserve the right to edit for brevity, clarity and legality.

Civil service rains on premier’s Family Day proposal

he provincial civil service has warned the premier there might be problems if she keeps her controversial Liberal leadership campaign commitment to consult on creating a new holiday in February. Christy Clark initially described her proposed Family Day as a “great chance for families to renew themselves and a reward for all the hard work that is done by B.C. workers.” But in a news release distributed in January, Clark acknowledged the business community has some “legitimate concerns” about that proposal. As a result, she promised to talk with members of that community and families to see “if all agree the concept of a holiday in the middle of the winter makes sense.” But a confidential document submitted to the premier just four days after she won the Liberal leadership race advised “creating meaningful dialogue about the Family Day proposal will be a challenge.” According to the brief, which was prepared by the Ministry of Citizens’ Services, “On the one hand will be employers who will balk at the expense of another statutory holiday. On the other hand will be employees, who will be at best happy or at worst indifferent about an extra day.” So what should Clark do about that problem? Well, the civil service appears to have provided the premier with some suggestions. But they were redacted by government prior to releasing the document in response to our freedom of information request.

Clark’s waste-buster promise might be a waste-maker When Clark was running for the provincial Liberal leadership, she took a page out of her predecessor’s playbook and promised to get the public involved in the elimination of government red tape. But the civil service has warned her that the effort, which took the form of the Waste Buster website under Gordon Campbell’s leadership, didn’t meet with much success in the past.

A confidential briefing document submitted to the premier just four days after she won the Liberal leadership race advised “creating meaningful dialogue about the Family Day proposal will be a challenge” Waste Buster – launched during the first 90 days of the Liberals taking office in 2001 – promised to “allow taxpayers to take an active part in reducing unnecessary spending and improving services.” Ten years later, Clark echoed that promise by committing to create an online forum where the public can help improve government policy and service delivery. Among its suggested uses: letting taxpayers nominate

“regulations that should be downsized or eliminated, to cut through red tape for business and citizens.” But a confidential briefing document prepared for the incoming premier advised that Waste Buster “has been unsuccessful in achieving its goal of identifying wasteful practices in government,” despite having received over 16,200 submission to date. The reasons, according to the document, are twofold. Number 1: “Citizens are well-positioned to talk about their experiences, but they are seldom knowledgable about the ins and outs of government regulations and policy (indeed, why should they be?).” And number 2: “Wastbuster (sic) reports have been managed as correspondence, which has left little room for public servants to explain the reasons why certain policies or regulations are in place. “Without two-way dialogue, the exercise is unproductive, because it is hard for the public service to understand the real need expressed in the report, and it has hard for the citizen to understand the rationale for their experience.” So it remains to be seen whether Clark’s own version of that site – if it ends up being launched – is more successful. • Sean Holman is editor of the online provincial political news journal Public Eye (publiceyeonline.com). He can be reached at editorial@publiceyeonline.com.

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comment 29

June 28–July 4, 2011 Business in Vancouver

Labour Climate

Geoff Meggs Post modern: The case for mail union grievances

triking members of the Canadian Union of Postal Workers (CUPW) had barely completed the first turn on their picket lines this month when media denunciations of their obstinacy and pigheadedness started raining down. Didn’t they get it? This is the age of the Internet! Snail mail is for dinosaurs! Posties are “unwilling to read the writing on the computer screen,” declared one analyst, and the quicker they give up on their defined benefit pensions, the longer their obsolete jobs will last. But buried in the barrage were business voices urging Canadians to think twice before they consign Canada Post to the dustbin of history. Canada’s economy needs a modern, competitive postal service to support businesses, large and small, from coast to coast to coast. Won’t a skilled, motivated workforce be needed to

fulfil that goal? Apparently not in management’s eyes. The trigger for CUPW’s 95% strike mandate was an employer concession list that included pension rollbacks and twotier wage systems. In fact, the dispute was never about the need for Canada Post’s $2 billion modernization program – both sides agree on that – but about who will pay the price of new technology and who will win the benefits. Just days before the strike began, the corporation announced it had selected a contractor to build a stateof-the-art Metro Vancouver plant at YVR, opening up the main post office downtown for a new role. But new hires at that plant would be working for drastically reduced wages and benefits if Canada Post had its way. That’s what sparked rotating job action by CUPW, which had not issued picket signs to its members since 1997.

“We make no apologies for refusing unreasonable concessions demanded of us by a profitable company,” said union president Denis Lemelin. This is a corporation, after all, that has paid $1.2 billion in dividends during the past 15 years to its sole shareholder – the Government of Canada – while completing a major transformation of its business. Canada Post provides service to every address in Canada, including isolated settlements the private-sector carriers wouldn’t touch with a barge pole, while keeping the price of a firstclass stamp among the lowest in the industrialized world. Profits last year were $319 million on revenue of $6.1 billion, a notable achievement considering that Canada Post’s mandate requires it to add up to 200,000 new addresses a year, despite the declining volume of firstclass mail.

Postal workers have been part of that success story, urging many of the changes that made a difference. Canada Post rose to the Internet challenge a long time ago. Its E-post online billing service is already 11 years old and boasts seven million subscribers.

Canada’s economy needs a modern, competitive postal service to support businesses, large and small Post offices have moved off Main Street into the back corner of countless drugstores and small businesses, and online businesses rely on Canada Post for quick parcel delivery. No wonder the Canadian Marketing Association warned Canada Post critics that the postal

service “remains relevant to the Canadian economy.” “The truth is that we do not cost the public money,” said Lemelin. “By keeping Canada Post profitable, our hard work actually saves the public money.” A large share of the 11 billion pieces of mail delivered each year is made up of ad mail, invoices and bill payments, still the lifeblood of tens of thousands of businesses, particularly in rural Canada. Nor is postal traffic all generated by small business. The National Association of Major Mail Users notes that the banking and insurance sectors find many of

their customers still prefer to work by mail. More than half of Canada Post’s 2009 revenue was derived from such “transaction” mail. Collective bargaining has never been smooth sailing at Canada Post, but union and employer put together nearly 15 years of improving business and steady profit. Can the company move forward without that cooperation? So far, the answer is no. • Geoff Meggs, a longtime senior labour communications specialist, is a City of Vancouver councillor and the president of Tideline Communications.

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Daily business news at www.biv.com June 28–July 4, 2011 Golden Goals

Bob Mackin Out from under the Whitecaps’ and Canucks’ shadow

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lay became the No. 1 quarterback after Casey Printers was dispatched in controversy. The club narrowly lost the West semifinal in overtime to the eventual Grey Cup runner-up Saskatchewan Roughriders. The biggest player move the orange and black made during the off-season was the release of star kick returner Yonus Davis. The exciting Canadian Football League rookie was destined for a hefty raise after earning a reported $43,000, but was punted after a high-profile ecstasy bust in California. For 2011, the club is employing the “Pride of All B.C.” tagline, a multi-year, provincewide positioning lifted from the lyrics of “Roar You Lions, Roar.” “We’re much more than a Vancouver team, we have a fan base that’s broader than that by our radio numbers and our email database of fans throughout the province,” Skulsky said. The Lions opted to stay with Bell Radio’s Team 1410, despite more money from

Corus to be on CKNW and an innovative partnership offer with Shaw TV. The Lions won a coin toss with the Whitecaps and will re-open BC Place Stadium on September 30 against the Edmonton Eskimos. The biggest commercial deal of the off-season was the partnership with A-B InBev’s Labatt. The three-way deal made Budweiser the official beer of the Lions, Whitecaps and BC Place Stadium. Owner David Braley revealed last fall that 1,000 customers representing 1,600 to 1,800 season tickets didn’t make the move outdoors with the team, but have pledged to return downtown. Only the home opener with the Roughriders was a sellout at 27,500seat Empire. “It’s a temporary venue, Porta Pottys and longer lineups and the small footprint.... Neat from the point of view of the sight lines and being close to the action, not so nice if you’re trying to get a beer because the lineup’s longer,” Skulsky admitted. Until the Canucks moved

into the Western Conference finals, Skulsky said the Lions were ahead of last year’s season tickets sales pace. Packages included discounts on Grey Cup tickets. By last week, 16,000 subscriptions were sold with Skulsky predicting 18,000 or better. The strong Canadian dollar has become a bonus for the Lions in recruiting import players who get paid by the loonie. The club held seven free-agent tryout camps throughout the U.S. and drew 464 candidates for up to 15 positions at training camp. Skulsky credits that with the exposure last season of a weekly game on the NFL Network. The new deal means two games a week, and maybe more, as the NFL feverishly negotiates with players to avoid losing its entire season. “It’s still small numbers in the big scheme of things, but it is exposure,” Skulsky said. “It’s going to have more players and people be aware of our league. For recruitment purposes and retention purposes.” • 2010goldrush@gmail.com

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Profile

June 28–July 4, 2011 Business in Vancouver

Mark Keserich Jenny Wagler

On the waterfront

Mark Keserich plans to market the port’s labour reliability to Asian shipping lines in a play to build back

Dominic Schaefer

jobs lost during the recession

hen a 16-year-old Mark Keserich started working on the Vancouver waterfront in 1972, nobody checked to see if he was actually 18; they just put him to work. Keserich, now president of the Vancouver local of the International Longshore and Warehouse Union (ILWU) and a force behind a new eight-year collective agreement geared at growing business at Port Metro Vancouver (PMV), still vividly remembers his early days on the job. “Whatever the worst job was, I was doing that,” he said with a grin, describing how he’d unload ships’ heavy cargos of flour, coffee and frozen fish. “Japanese trawlers would come in once in awhile and you knew you were going to get stuck on that one: 40 below, down below packing all that stuff out.” But even “at the bottom of the pile,” Keserich was quickly hooked on the job’s flexible schedule and “amazing” $5.25 an hour wage. Unlike some of the guys he was working with, Keserich finished high school. Still working longshore, he completed a bachelor of arts in psychology at the University of British Columbia. But – to his longshoreman father’s chagrin – the degree didn’t change his desire to keep working on the waterfront. “It’s a pretty fantastic job,” Keserich said. “If you talk to longshoremen, they’re going to tell you: this is the best job in the world.” Maintaining that job quality is a key

part of Keserich’s role as president of ILWU Local 500 – as is maintaining jobs, pure and simple, since the recession wiped out 1,000,000 hours of waterfront work. “A lot of people left the industry,” he said. “We’re hoping to recover some of that.” A desire to create more waterfront work, Keserich said, was a key reason the union membership accepted an eight-year collective agreement in May after 16 months of bargaining. He said the unusually long term of the agreement should help fix the port’s international reputation as a place of labour uncertainty and better position to compete for West Coast-bound cargo. “We don’t like to say it openly, but we know that Seattle, Tacoma, Portland, Long Beach – all those terminals go after all that cargo,” he said. “That cargo just can sail away.” With Keserich at the helm, Local 500 is also the only one of five ILWU longshore locals looking to modernize its decades-old dispatch system. Currently, workers have the flexibility to decide any given morning whether they wish to work or not, leaving employers little time to scramble up any missing labour and skillsets before day shift starts at 8 a.m. And those labour gaps, Keserich said, can lead to ship delays. “That’s the worst thing,” he said. “It’s very costly for a ship to sit there because they could miss their next

calling.” Under the new system, being phased in as of July 1, workers will declare the night before whether they’ll be available to work the following day, allowing the union time to drum up any missing skillsets by morning. Keserich said that while there’s some concern in the union membership about forfeiting some job flexibility, there are also clear gains in job certainty for workers who don’t want to waste time, gas and, soon, tolls to drive in, only to risk not getting matched with a job. “If it’s a pre-dispatch, we capture those people the night before and we can say to them, ‘You’ve got a job for tomorrow.’” Keserich brings to his leadership role nearly three decades on the waterfront and nearly two decades of executive roles at the union, including a year as vice-president of the local and four years as chair of the local’s labour relations committee. Keserich is also a skilled crane and gantry operator and instructor with more than 4,000 days in a crane or gantry. As an instructor, he’s travelled to China and Japan to see new cranes on freshly commissioned ships and write up procedures for Vancouver crane operators to use at the ships’ arrival. While Keserich is on hiatus from his crane work in his current position, he recounted how just last month he filled in for an emergency shift along-

Mission: To lead the Vancouver longshore local, keeping members happy and building up port jobs lost in the recession Assets: Four decades on the waterfront, 18 years in the union executive and high popularity Yield: Elected president with an overwhelming majority and currently leading Local 500 in the modernization of a historic dipatch system

side Local 500 vice-president and fellow crane operator Mike Rondpre. “A piece of equipment collapsed at Neptune [Bulk]Terminals and it was getting close to midnight and they had nobody available; all the crane operators were gone,” Keserich said. “ So we went to the terminal and we pulled out all these parts that had fallen into the hatch and we had to use four cranes to jockey it off the ship.” Rondpre, Keserich’s longtime waterfront colleague, described Keserich as a popular force on the waterfront. “He’s well-loved by everybody,” Rondpre said, noting that Keserich won approximately 95% of the votes cast in the election for president. “I don’t know of anybody that could unseat him [as president] if he didn’t want to be.” But Keserich estimates his power cautiously. “As president I have some latitude to move things this way and that way but ultimately I have to answer to the membership,” he said. “The membership is really the highest ruling body.” Key issues ahead for the year, Keserich said, include managing tensions created by a change in Canadian legislation that has halted the union’s ability to mandate retirement at 65. As a result, he said, retirement-aged longshoremen are clinging to their jobs, delaying waterfront workers with “casual” status in their goal of making union membership. “People stepped aside for them [older workers] to get those jobs and now they’re saying, ‘Oh no no, it’s different for me,’” he said. Developing a provincewide recruitment policy, he said, is another priority this year. “Whenever we have a recruitment, we have thousands of applicants that put in,” he said. “You need a fair way to get through them all and process them all and give everybody a fair shot.” Also this year, Keserich said he’s been invited to go to Asia to talk up the port’s labour reliability. “We want to get out and tell those in the Asian rim countries that we’re open for business and come to Vancouver.” He added that from what he’s seen, shipping line owners are particularly keen to hear the labour reliability message coming straight from a labour voice. “They don’t get to hear labour very often,” he said. “And maybe they need to hear it from us to believe it.” • jwagler@biv.com

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Daily business news at www.biv.com Business in Vancouver June 28–July 4, 2011