The tentative Shaw-Rogers deal didn’t just pop out of the ether

on a Monday morning

. It’s been in the works for a long time.

On Jan 17, 2019, Shaw Communications CEO Brad Shaw was asked by BNN Bloomberg if a merger with Rogers was possible.

He said: “You never say ‘no.’ We’ve made a lot of moves in the last few years to pivot to growth.

“We sold media. We got into wireless. We deployed billions of dollars and we feel we’re in a great spot.”

Shaw also said that buying out 3,300 employees allowed the company to focus on online sales, self-installation and automated customer service.

Today, it’s pretty obvious that the company’s actions, and Brad Shaw’s comments, meant the company was sprucing itself up for a Rogers offer.

With 5G networks coming, demanding enormous capital investment, there was doubt that Shaw could compete. The proud company that the late JR Shaw built faced the prospect of stagnation.

And here we are two years later, with

the implications of this enormous $20-billion deal

(a sale, not a merger) just starting to rattle around Alberta.

Politically, it’s tricky for the Kenney government, which paints the deal as positive because Rogers

promises 1,800 net new jobs in Alberta

, $2.5 billion to build 5G networks in Western Canada, and a new National Centre of Technology and Engineering for the city.

But Calgary will also lose a head office — the biggest outside the energy sector.

Calgary and Shaw Court will be the Western Canada headquarters, with some key executives here, but the city will no longer be the decision-making centre.

That is more than just a blow to local pride. Head offices of thriving companies spin off a wide range of secondary jobs and activity.

So, this deal brings a tough trade-off. On balance it seems justified by the promises of jobs and investment — as long as they’re honoured.

These corporate commitments to Alberta seem genuine. The Shaw family will be the second-largest Rogers shareholder — after the Rogers group itself — and have two seats on the board.

The Rogers CEO, Joe Natale, repeats all the pledges in enthusiastic detail.

But the deal won’t go through for a year while it undergoes competition and regulatory scrutiny. And there are already signs of trouble.

All the national focus, even from Erin O’Toole’s Conservatives, is on consumer price protection and the apparent blow to competition from the loss of a big player.

Most Canadians care a lot more about their cellphone costs than jobs in Alberta. And it’s easy to convince people that fewer suppliers means less competition, even though some argue that three strong, roughly equal opponents (Rogers, Telus, BCE) will battle fiercely for wireless customers.

There’s also the risk that after the deal goes through and Rogers is in control, promises will be diluted, delayed or ditched over time.

Even Albertans might have some doubt about the claim of net job gains, when Rogers also promises $1 billion in cost-saving efficiencies.

Related

• Varcoe: ‘We are at an inflection point as a community’ as takeover of Shaw hits corporate Calgary
• Long before merger, Rogers and Shaw had history of rivalry, respect and plenty of bull

Layoffs almost always walk hand in hand with takeovers. On Tuesday, it emerged that up to 1,000 jobs could be lost in a second round of layoffs from the latest big oilpatch takeover, as Cenovus swallows Husky.

Premier Jason Kenney is wise to insist that regulators make the jobs and investment promise a condition of final approval. We need some real guarantees here.

Kenney also tried to convince Natale to move his headquarters operation to Calgary.

He could hardly fail to make the pitch, but it’s not going to happen.

Rogers is the ultimate Toronto company. It owns the Toronto Blue Jays and 37.5 per cent of Maple Leaf Sports & Entertainment, which in turn owns the Toronto Maple Leafs, the Toronto Raptors, Toronto FC and the Toronto Argonauts.

Rogers owns Sportsnet channels and NHL broadcast rights, thus ensuring perpetual Toronto homerism, and Rogers Centre, where a lot of the action goes on.

It will take more than a couple of tax points to lure this crowd out of Toronto. The sheer corporate reach and power of Rogers also reminds Albertans that Shaw is swimming with a hungry whale.

Don Braid's column appears regularly in the Herald

dbraid@postmedia.com

Twitter:

@DonBraid

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A newly tabled bill would allow Albertans to propose legislative and policy changes for consideration by the provincial government, and force referendums on constitutional matters.

Bill 51, the Citizen Initiative Act, would seek to provide Albertans “a more powerful voice,” according to Justice Minister and Solicitor General Kaycee Madu, who put forth the proposed legislation Tuesday afternoon.

If passed, any eligible Alberta voter could bring forward an “initiative” for consideration under provisions of the Act. Initiatives would include proposals for legislation, policy or constitutional referendums.

“This is one of the most important democratic reforms since our province was founded in September of 1905,” said Premier Jason Kenney.

“It is all and simply about empowering ordinary people to raise and force the consideration of big issues, if those of us in elected positions are not listening to them.”

Kenney called it a “historic announcement” and one that’s been a long time in the making. He noted he lobbied the Ralph Klein government for such a bill in the early 1990s in his role at the time as CEO of the Canadian Taxpayers Federation.

The proposed law would allow an Alberta voter to apply to the chief electoral officer to start a petition for their initiative. The application must include a statement surrounding the subject matter of the application “that is clear and unambiguous,” as well as an application fee.

Any proposed constitutional question must contain a “yes” or “no” answer, suitable to be put to voters in a referendum.

If the application is approved, the petitioner, at their own cost, would then need to gather signatures from eligible voters. For legislative and policy initiatives, they would need 10 per cent of voters provincewide to sign the petition.

For constitutional initiatives, a petitioner would need the signatures of 20 per cent of voters provincewide, along with an equal level of support in two-thirds — or 58 — of Alberta’s constituencies. Signatures must be collected in-person, rather than online, but canvassers could assist as long as they are also eligible voters.

There would be a 90-day limit to collect signatures, followed by a 60-day period for the chief electoral officer to verify the petition. The applicant could accept financial contributions toward their initiative, subject to financing rules set out in the Act and existing election laws.

Successful constitutional initiatives would go through the process established in the Referendum Act, triggering a public vote.

Successful legislative and policy initiative petitions would be referred to a legislative committee for consideration. The committee would have 90 days to review the proposal and report back to the legislature on whether it supports the idea.

If the committee does not support the proposal, a non-binding public vote would then be held on the issue, under the authority of the Election Act.

Related

• UCP tables legislation that would allow Albertans to ‘fire’ MLAs, city politicians
• Experts, city politicians say ‘the devil is in the details’ for planned Alberta recall legislation
• UCP would ban easy floor crossing, introduce recall legislation

“The Citizen Initiative Act would give Albertans an on-ramp to the legislative process,” Madu said.

“It would allow anyone with fresh, worthy ideas access to government, giving them real and meaningful influence over how our province is run. Frankly, Albertans deserve a greater say in the democratic system than what they have traditionally been allowed.”

Kenney said he expects the bill to pass and come into effect “later this year.”

He pointed to the former NDP government’s introduction of a carbon tax as an example of legislation that Bill 51 could have helped change.

The premier also cited similar legislation in B.C., implemented in 1995, which was successfully used to challenge the harmonization of the GST in that province in 2010.

“I believe in the representative nature of our parliamentary democracy, but I also know that sometimes politicians of different parties at different times and different places fail to listen to the fundamental wishes of the people,” Kenney said.

“This initiative law is a guarantee that people can overcome when politicians are not listening to the people.”

On Monday

, Madu tabled Bill 52, the Recall Act, which would give Albertans the power to recall their MLA, city council member or school board trustee if it is felt that representative “is not upholding their responsibilities.”

Kenney said that bill seeks to “strengthen democratic grassroots accountability in Alberta.”

That proposed legislation also relies on a process that involves collecting signatures for a petition, with high thresholds established to be successful.

Heather Sweet, the NDP Opposition critic for democracy and ethics, said all Albertans “should be deeply concerned” that the Citizen Initiative Act “opens the doors for Jason Kenney’s wealthy friends to have the loudest voice in our democracy.”

“Jason Kenney was elected to listen to Albertans,” Sweet said in a statement.

“Instead of taking the time to hear from families and businesses on jobs, on health care, on parks and on protecting the Rocky Mountains, he says it’s not his responsibility to listen, it’s the responsibility of Albertans to launch a massive provincewide campaign to get his attention.”

The Canadian Taxpayers Federation applauded the bill’s introduction, calling it “another large leap forward for government accountability.”

“Albertans deserve the right to hit the eject button on bad laws,” said the federation’s Alberta director Franco Terrazzano.

“If legislation belongs to the people, then the people should have a direct ability to introduce legislation or repeal bad laws.”

shudes@postmedia.com

Twitter:

@SammyHudes

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On March 15, 2020, with COVID-19 cases rising, the City of Calgary declared a state of local emergency, forcing the immediate closure of most non-essential businesses and services.

At the time of Calgary's state of local emergency, Alberta had confirmed only 56 cases of the novel coronavirus and hadn't yet reported a single death. In the ensuing 12 months, COVID-19 has affected every aspect of our community — from restaurant owners to students, professional sports organizations, seniors living in long-term care facilities and every person in between.

It has taken the lives of nearly 2,000 Albertans and infected more than 138,000.

This week, we're publishing a series of stories that explore the many and varied effects the pandemic has had on Calgarians by hearing their stories, first-hand.

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Life for Stephen Oakleaf was simple yet rewarding just a year ago.

Each day, he’d wake up at the same time, eat breakfast and jump on the CTrain to head to his job at AltaGas, where he works as an ambassador for office amenities. Oakleaf’s smile was known for brightening the downtown office tower as he shifted between floors to wash dishes, unpack paper or set up meeting rooms.

A people person by nature, Oakleaf revelled in after-work hangouts at coffee shops and pubs with his colleagues who equally adored him, too.

Movie and pizza dates with his girlfriend Jess were a weekly highlight.

For Oakleaf, a 39-year-old Calgarian who lives with Down syndrome, the COVID-19 pandemic changed everything. As the virus reached Alberta in March 2020, social distancing protocols put many in-person working environments on pause.

It meant Oakleaf’s daily routine was suddenly gone.

“I was pretty upset. I was pretty crushed because I knew that my job meant everything to me,” said Oakleaf, who has lived independently in his own condo for the past 15 years.

“It dawned on me what was actually happening. It was like, ‘OK, I’m going to move home for a while.’ I didn’t want to be alone.”

The pandemic has meant agonizing isolation for so many people across society.

But those with developmental or intellectual disabilities

are significantly more vulnerable

to infection and severe illness from the coronavirus. That has meant the necessity of increased precautions, no matter how heartbreaking.

Oakleaf said he’s only seen Jess in person three times over the past year, which has been “pretty hard.” She, too, is at higher risk of infection and he knows they can’t take any chances.

“I’m worried about her health,” Oakleaf said. “It’s affecting me more on the emotional side a little bit.”

Oakleaf’s job is vital to his “sense of self,” according to his mother Anne McWhir.

“What we learned was that Stephen’s independence and his ability to manage in the condo with a little support — and the whole kind of rhythm of his independent life — depended on his job. It was a structuring thing for Stephen,” she said.

“The rug’s been pulled out from under his feet.”

Related

• Vaccine is long way off for people with developmental disabilities, at high risk for COVID-19
• ‘Mind-blowing’: One year after start of pandemic, yoga studio hit with $87,000 lawsuit by landlord
• Indigenous student among thousands impacted by roller coaster year of COVID-19
• Alberta maps out next stages of vaccine eligibility
• Special Section – COVID: One Year Later

He’s filled his days this past year listening to music, watching television, or going for walks with his mom and dad. He helps look after his three young nephews, who he loves to make laugh, whenever he’s able to see them.

Oakleaf’s health has improved; he jokes he’s eating a lot better under his parents’ roof.

But he’s open about feeling more anxiety from the weight of the pandemic. He hopes his life will soon go back to normal, but added his brain is sometimes “overwhelmed.”

McWhir worries about the pandemic’s impact on her son’s development — having to re-learn skills he’s spent years mastering — and losing personal connections he’s come to rely on for joy, be it with Starbucks baristas or fellow transit riders.

“You can sort of sink back into this nice, comfortable, warm bath of the familiar,” she said. “Our entire lives with Stephen have been shoving him out of that nice warm bath and telling him that he has to get used to feeling a bit uncomfortable. Stephen has always risen to that challenge and we know he will rise to that challenge again, but right now it’s hard.”

These days, Oakleaf said he’s taking life “bit by bit.” He’s highly in-tune with news of Alberta’s vaccine rollout and eagerly awaits his turn.

“It’s not as bad now because there’s vaccines coming out, so it’s hopeful that thing will end,” he said.

“I want to be as positive as I can be.”

For months, those with developmental disabilities and their families

have expressed

 frustration with Alberta’s lack of clear timeline — and prioritization — for those like Oakleaf to get in line for a shot.

Chief medical officer Dr. Deena Hinshaw announced Monday that “anyone with a severe learning disability, developmental delay or severe neuromuscular condition”

will fit within Phase 2B

of Alberta’s vaccination schedule. That includes Albertans with Down syndrome, fetal alcohol syndrome, autism spectrum disorder, Rett syndrome and other severe or profound intellectual disabilities.

She said Alberta hopes to begin vaccinating those groups in April, but uncertainty persists.

“Exact timing will depend on how many vaccines we receive, but we will keep you updated,” Hinshaw said.

Erika Gomez, whose 21-year-old son Enrique lives with autism, said worry about vaccine timelines is prevalent among families like hers. She said the pandemic has made outings for Enrique extremely rare.

“It’s very concerning because people with disabilities are often shuffled aside,” Gomez said.

“They don’t have a voice and people don’t pay attention to them. As much as people might say ‘everyone’s equal,’ the reality is that people don’t treat it that way. There are all sorts of instances where people with disabilities are viewed as being ‘less.’ It happens all the time.”

Trish Bowman, CEO of Inclusion Alberta, said families are “bearing tremendous amounts” of stress to keep loved ones safe in ways most Albertans don’t have to think about.

International research has shown

 those with Down syndrome are four times more likely to contract COVID-19 than the general population and

10 times more likely

to die from it. But Canada hasn’t collected similar data surrounding the impact of the pandemic on those with disabilities.

“Throughout the pandemic, we’ve really seen that people with disabilities are the last groups that are considered. This just feels like another example of that,” Bowman said.

“We’re seeing, certainly, the strain on families the longer this goes on. There’s just a constant level of stress just concerning the health and well-being of their family member.”

Oakleaf said he misses his old life. He longs for the days when things were easier.

“I have friends at work, I have a good team, I have a real cool boss,” he said, taking a moment to imagine the return to normal he craves.

“I can move back into my place. I’ll be really happy because then I can see my partner again.”

shudes@postmedia.com

Twitter:

@SammyHudes

Sometimes it takes decades for the business landscape to evolve.

Today, it feels like the corporate terrain in Calgary and across Alberta is transforming under our feet — and the community will look vastly different coming out of the pandemic than it did 12 months ago.

The $26-billion acquisition Monday of Shaw Communications Inc. by Toronto-based Rogers Communications Inc. puts an exclamation point on the rapid pace of change that’s now unfolding.

An iconic name in Alberta’s business community is being acquired as two Canadian telecom giants join forces.

“We are in a new environment,” says Martin Pelletier, a portfolio manager at Wellington-Altus Private Counsel in Calgary.

“When you have these big events, it has a profound impact on the landscape and there’s a changing out of the leaders and a whole new guard comes in.”

The friendly transaction, which needs shareholder approval, will see Rogers offer $40.50 a share for Shaw stock in a deal worth $20.4 billion and the assumption of $5.8 billion of Shaw’s debt.

While leaders across Alberta have preached about the merits of economic diversification for decades, Shaw was the embodiment of it happening in the province over the past 50 years.

Founded by JR Shaw, he created Capital Cable Television Co. and signed up his first customer in Sherwood Park in 1971. He began assembling a business empire, changing its name to Shaw Cablesystems in 1983.

The head office moved to Calgary in 1995 and Shaw Communications eventually expanded into a number of areas, becoming a satellite TV and Internet provider and in 2016, it made a key move into wireless by buying Wind Mobile. (JR Shaw died last year. His son, Brad, has been CEO since 2010.)

The company has 9,500 employees across Canada, including 3,250 in Alberta.

Brad Shaw, who will join the board of Rogers, pointed out the combined companies will be able to make major investments in 5G networks more quickly and grow the business.

“Western Canada is a big part of their thinking, a big part of their plans,” he said in an interview.

Rogers CEO Joe Natale said

the company is making a number of commitments to expand the business in the city and province

.

It will create a regional headquarters for its Western Canadian operations at Shaw’s existing downtown offices.

It will spend $2.5 billion building 5G networks in Western Canada in the next five years, and establish a new $1 billion fund to support rural, remote and Indigenous communities being connected to high-speed Internet.

In Calgary, Rogers will establish a National Centre of Technology and Engineering Excellence, with 500 new jobs in the city that could serve as a platform for even greater growth.

These jobs will include positions related to telecom, software and systems engineers, IT and cybersecurity roles, as well as artificial intelligence research.

“There’s a great diversification here within Calgary, which I think is needed,” added Brad Shaw. “It was really important for our family to make sure that those commitments were there.”

In total, the new network investments and technology positions will create up to 3,000 net new jobs in Western Canada, including 1,800 in Alberta.

“As we look to the future, we want to grow and invest in the West. We know Alberta’s economy is facing some of the most challenging periods ever…It’s not lost on us,” Natale said in an interview.

“Our goal is to have this partnership be about growing the jobs and addressing these challenges.”

Shaw has more than 2,600 employees in Calgary.

Rogers said it expects the acquisition will unlock cost-savings of more than $1 billion annually within two years of the deal closing.

Cost-cutting will inevitably give rise to concerns about corporate job losses, but Rogers’ CEO stressed the deal will lead to more jobs coming to the city.

“It is going to feel, look, walk and talk like a head office because decisions will be made there by senior people,” he added.

The promise to put additional resources and jobs into Western Canada provided comfort to local leaders.

(The broader question of what it means for consumers, particularly wireless customers, is a matter that will be examined by regulators and the Competition Bureau.)

For Calgary, the Shaw acquisition comes at a time when the city is witnessing economic upheaval and ongoing challenges from COVID-19 and a tough recession.

Oil and gas companies such as Husky Energy and Seven Generations Energy have been taken over recently during a flurry of oilpatch M&A deals. Tourism and travel companies face an uncertain future with the pandemic, while the tech sector is expanding.

“All of these things point to we are at an inflection point as a community, as sectors, as industries — and rapid change will be the new norm,” said Mary Moran, CEO of Calgary Economic Development.

Alberta business leader Dick Haskayne, whose memoir Northern Tigers talked about the importance of building Canadian corporate champions, said it’s hard to overestimate the importance of having head offices in the community.

“It is absolutely critical because that’s where the important decisions are made,” he said.

However, Canada must also create companies that can compete globally, Haskayne said.

Monday’s deal left local leaders with mixed feelings.

Mayor Naheed Nenshi welcomed the additional investment coming into the city. But he’s also eyeing the loss of one of Calgary’s largest corporate head offices while trying to attract other headquarters to fill up vacant downtown office towers.

“Ultimately our goal has to be jobs and the take-up of space in the downtown core,” he said.

Premier Jason Kenney told reporters he’d rather see the merged head office be based in Calgary, but noted Rogers has pledged to boost its employment in Alberta.

He expects regulators and the Competition Bureau to carefully review the merger and the province will likely make submissions on the transaction. It will likely take nine to 12 months before the regulatory review is done.

As the examination unfolds, what is clear is a marquee Alberta company has been purchased — and while more jobs will be coming, Monday’s deal is another sign of a community, a province and an industry facing a major economic transition.

Chris Varcoe is a Calgary Herald columnist.

cvarcoe@postmedia.com