KLEIN: Why companies are turning away from Manitoba’s anti-business environment

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Manitoba and Winnipeg are failing miserably at attracting new businesses to grow our economy. Despite the façade of welcoming rhetoric, the reality is that both the province and the city are doing more to drive potential investors away than to bring them in.

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It’s a painful truth that Wab Kinew’s NDP government has quietly, but effectively, told business owners that Manitoba is simply not the place for them. One of the most glaring examples of this anti-business attitude is the recent legislation passed by Kinew and his cronies, which forbids companies from hiring temporary workers when there’s a strike.

Imagine trying to sell Winnipeg to a major company, one that is also being courted by other Western Canadian cities. When that company’s executives hear from their peers that in Manitoba, if your workers strike, you are legally barred from conducting business. The message is clear: this province is not business-friendly. It’s hard enough running a business in the best of times, but this kind of legislation adds unnecessary risk and uncertainty. Why would any company want to invest in Manitoba?

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Consider CentrePort, Winnipeg’s touted transportation hub, where the city plans to spend millions to create a gateway for trade and logistics. But which transportation company wants to risk opening in Manitoba under these conditions? When executives look at Manitoba compared to Saskatchewan or Alberta, they see a union stronghold with restrictive laws that could cripple their operations at any moment. If given the choice, who in their right mind would take that gamble?

Adding insult to injury, Winnipeg stands alone in Canada as the only city that imposes a business tax. This extra burden is yet another deterrent for companies that might otherwise consider setting up shop here. At budget time, we hear the same tired song from city councillors who all fall in line behind Mayor Gillingham, hoping to secure funding for their pet projects — projects they believe will secure their re-election. They agree to budgets without questioning the impact of the business tax. Most of them have never managed a budget in their lives, and they certainly don’t understand the chilling effect this tax has on business investment.

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I know firsthand the consequences of these poor decisions. A colleague of mine was exploring office space in Winnipeg, seriously considering investing here. But when he learned about the business tax, he quickly pulled the plug on the idea and opted for Saskatchewan instead. Can you blame him?

It’s not just about the money — it’s about the message it sends: Winnipeg is not open for business. We’re a city content with our have-not status, led by officials with little to no business sense, perpetually stuck in a cycle of poor decision-making.

The business tax is just one example of how the city’s approach is driving away potential investments. This tax forces companies to rethink their decisions, and often, Winnipeg loses out to cities that are genuinely business-friendly.

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It’s baffling that our leaders don’t question this antiquated and counterproductive policy. Instead, they continue to pat themselves on the back, oblivious to the fact that they are actively discouraging business growth.

Manitoba’s lack of vision extends beyond the business tax. The province’s overall economic strategy — or lack thereof — does nothing to instil confidence in potential investors. We’ve allowed ourselves to become a province that is reactive, not proactive. We are a place that waits for businesses to show interest, rather than actively courting them with incentives and a favourable environment. It’s not just about cutting taxes or offering grants; it’s about creating a business climate that makes companies feel welcome, valued, and supported.

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When will we stop settling for being a have-not province? When will we wake up and realize that we need leaders with real business acumen, leaders who understand what it takes to attract and retain businesses? Our current trajectory is unsustainable. We cannot continue to rely on government grants and federal handouts while driving away the very businesses that could help us stand on our own two feet.

It’s time for a change in mentality. Manitoba must put out a sign that says “OPEN for business.” We need to repeal anti-business legislation, eliminate the punitive business tax, and overhaul the way we market ourselves to the world. It’s not enough to hope that companies will come — we need to make them want to come. This means offering a competitive, supportive environment where businesses can thrive.

The province and the city have a choice: continue down this path of self-sabotage or make the bold changes needed to attract investment. The time for complacency is over. We need to start thinking big, acting decisively, and positioning Manitoba as a place where businesses don’t just survive — they succeed.

— Kevin Klein is a former Tory cabinet minister, a former city councillor and President & CEO of Klein Group Ltd.

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