London Inc. Weekly

Written by Kieran Delamont, Associate Editor, London Inc.

LEDC, Small Business Centre to battle tariff threat with job creation

London’s business leaders are taking a “series of actions” aimed at protecting the local economy against the threat of tariffs, the London Economic Development Corporation announced Wednesday. “The London Economic Development Corporation and the London Small Business Centre are focusing on three different initiatives with potential to create a total of 250 jobs, while launching dozens of new, made-in-London businesses,” the LEDC said. The three initiatives include an enhanced version of the Foodpreneur Advantage Scale Up program, which supports small food businesses, a newcomer-focused program called the NewStart program and a partnership with Global Start-Ups from Toronto “that will bring international entrepreneurs with pre-vetted business plans, financial resources and approved business immigration to Canada, to assess opportunities in London.” Between these three programs, they expect to create 250 or so jobs, plus attract new businesses to the city. “These initiatives are designed to further diversify our economy and help us better withstand external economic shocks,” said the LEDC’s Kapil Lakhotia. “Continuing our focus on food processing, organic growth and entrepreneurship will help create new channels for job creation and achieve a sustainable economic future.”

The upshot: Of course, the tariffs themselves are a bouncing ball, given to The Donald’s mood of the moment. We may have tariffs next week, we may not, who knows, check back in 10 minutes. Nonetheless, with many of London’s growing industries focused at least in part on north-south trade (especially in consumer food products sector), the idea looks partly like an initiative to support a pivot to east-west trade. “I think we all expect interprovincial trade barriers to be taken down,” said Mayor Josh Morgan. “That means we need to shift our programs to try to encourage our small businesses and new entrepreneurs to take advantage of those new opportunities.” He also said that city hall will continue to look at its procurement policies. London Small Business Centre executive Steve Pellarin added that it will be helpful for upstart food product businesses who need to make this unexpected pivot. “They’ve increased their production capacity, and they may not have yet fully entered the U.S. market,” he told CTV News London. “And so now they’ve got capacity. They need to find other opportunities.”

Read more: CTV News London | CBC News London

Re/Max Canada’s $7.8M settlement: Could realtors be getting a pay trim?

Re/Max Canada has reached a $7.8-million settlement to resolve two class-action lawsuits claiming that rules mandating home sellers in Canada pay the commission of their buyer’s real estate agent are driving up the cost of homes and limiting competition ― something that could represent a major development in the Canadian real estate industry. The lawsuits challenged traditional commission structures, alleging that sellers were unfairly required to compensate buyer brokers, thus inflating costs and limiting competition. With Re/Max agreeing to the settlement, the industry is left wondering what’s next and whether further settlements or legal challenges will follow.

The upshot: The settlement could set the stage for a change in commission structures, like changes recently made in the U.S. that stemmed from a similar class-action lawsuit. Canadian home sellers generally pay realtors four to five per cent of the sale price, which the buyer’s and seller’s agents split. Early data suggests that commissions are beginning to decline in the U.S. (though not as drastically as some predicted). Seattle-based brokerage Redfin has reported a slow but steady decrease in U.S. commission rates, while Zillow’s 2024 report found that over half of sellers are now negotiating fees, compared to just 19 per cent a year earlier. However, in Canada, commission structures have historically been more flexible, with tiered commissions, flat fees and other alternative payment models widely available. As a result, the impact of legal and policy changes on commission rates may be less pronounced in the Canadian market. Time will tell. 

Read more: Real Estate Magazine | Toronto Star

Details on Fanshawe cuts coming this spring

Fanshawe College president Peter Devlin (pictured) said in a recent townhall meeting that the “Fanshawe College of tomorrow will look different” ― by which he means smaller, with fuller details on the extent of cuts to be finalized by the spring. An “early retirement incentive program” is going to be announced in March, and job cuts are expected to arrive after the college’s board of governors receives a report from consulting firm StrategyCorp. Develin also announced that a formal hiring freeze has been put in place. “We will have fewer programs and a right-sized workforce. We will have a deficit position while we reshape Fanshawe over time,” Devlin said.

The upshot: You’d have to imagine that among the most frustrated parties here might be Fanshawe employees, who have heard tell of job cuts, program freezes and buyouts for months now without anything concrete; ‘just rip the band-aid off, already,’ would be an entirely sympathetic perspective. “Union members are understandably apprehensive,” said OPSEU Local 11 president Mark Feltham in a released statement. “Precarious workers have been made even more precarious in this landscape, and even full-time workers, with their greater protections, are worried by talk of layoffs and program suspensions.” Where the union and management agree is that much of the fault lies with the provincial government. “We are funded at 44 per cent of the national average. The lowest funding for the country happens here in Ontario, the most prosperous province,” Devlin said. “For a student, we get $6,891. The average in Canada is $15,615.”

Read more: CBC News London | London Free Press

City hall cracks down on cash for rides outside the apps

City hall said it has started fining drivers for offering rides booked outside the designated ride-hailing apps. More specifically, they are looking to crackdown on drivers taking cash payments for rides. “Late night, when the bars let out and people need rides, the general public should not just be getting into any car where the driver says ‘I drive for X,’ or ‘I drive for Y, I’ll take you home’,” said Orest Katolyk, the city’s director of municipal compliance. “That’s what’s been happening, and we’re concerned about this. It’s a very high safety issue for us.” According to the city, four drivers have each been fined $1,000 so far, and are threatening more actions if it is not dealt with. “If this continues, we may be recommending to council that these private vehicle-for-hire drivers be licensed by the municipality the same as taxicab and limousine drivers.”

The upshot: This is the second enforcement blitz that the city has aimed at ride-hailing biz ― last fall, bylaw officers nabbed 13 drivers for vehicular infractions like bald tires or other mechanical issues. The unsanctioned ride practice is a growing one, however, and something that both Uber and Lyft say they are aware of. Drivers say it is a way for them to make up for low-paying rides, but municipal regulators see it as a major safety concern, and something that completely negates all the work done to regulate Uber and Lyft in the first place. “The purpose of the bylaw is to provide transportation services … that provide a safe environment to both the passenger and the driver, as well as for consumer protection,” Katolyk told CBC News London. “We have a strategic plan, and in the strategic plan we have a pillar that’s focused on safety, specifically that of women.”

View finalists here: CBC News London | Business Insider

LCF and Farhi Holdings look to facilitate affordable core housing

Farhi Holdings Corp. and the London Community Foundation (LCF) say they’re working together to facilitate more affordable housing in the core, with the intent of utilizing some of the vacant commercial properties held by Farhi. Neither is planning on directly developing the properties ― rather, the idea is to facilitate an interested non-profit party buying one or more properties from Farhi “at a significantly discounted rate,” using funding from the London Community Foundation (via its $25-million Social Impact Fund, which provides low-interest loans to fast-track affordable housing projects). A Request for Expressions of Interest posted by the city suggests that a number of properties are being talked about here, including the RBC Building at Richmond and King, Market Tower at Dundas and Richmond, the former Rexall building (kitty corner to Market Tower) and the vacant lot at the former site of The London Free Press building.

The upshot: The blueprint for this pitch is the success of the LCF-led collab in the SoHo neighbourhood, where it partnered with six NFPs for the Visions SoHo Alliance, a project redeveloping the old South Street hospital lands into affordable, deeply affordable and market-rate rentals. That project, however, had the benefit of a scratch start after many of the buildings were demolished on the hospital’s dime. The office-to-residential conversion market is another beast altogether. In fact, the Rexall building at Dundas and Richmond, which was one of the first projects to be supported by the city’s office-to-residential conversion grants, is now back in Farhi hands after the Mississauga-based developer, the Maas Group, backed out. “We’ve taken it back on ourselves, and we’re moving forward, finishing what the original group that bought it started,” Fahri’s Ben Farhi told CBC News London. “We recognize the urgent need for affordable housing. We further believe partnering with the right organizations, like LCF and others, is key to delivering meaningful impact to specific sites, and we’re proud to work alongside the great people at LCF.”

Read more: London Free Press | CBC News London

$10M donation to establish entrepreneurship programming at Huron University

A $10 million gift from Fairfax Financial Holdings will help establish the Fairfax Centre for Free Enterprise at Huron University, the school announced this week. The new centre will reportedly include “academic components, internships, guest speakers and business-networking opportunities for students,” said Barry Criag, Huron’s president. He boasted that the donation “is going to transform our place in the postsecondary landscape. The first centre for free enterprise in all of Canada, and it’s here.” Prem Watsa, CEO of Fairfax and a former Huron chancellor, said that with the donation, “We are making a statement: that we believe in Canada, and that it can be the land of opportunity for everyone, and that the free enterprise system that has helped to make the country what it is today should be recognized, maintained and cultivated for the benefit of all Canadians. We believe that Huron University can help lead a revival of the entrepreneurial spirit that is key to our shared future.”

The upshot: Could a new building be in the works? Craig was mum on that, for now, and The London Free Press reported that he “hinted at further announcements” and “noted he foresees a place that will inspire students to become entrepreneurs.” Beyond that, details are still in the works ― Huron said that planning is underway to launch the Fairfax Centre in September 2025. At the launch announcement, Watsa praised Huron’s track record on developing good leaders. “Huron aims to provide an elite level of accessible education, but also to challenge its students to become leaders with heart ― to use the opportunity that they have been given to make a positive difference in the world.” 

Read more: Huron University

Dispatch: February 28, 2025

A summary of recent business appointments and announcements, plus event listings for the upcoming week.

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