Trudeau Says More Companies Will Now Qualify For Wage Subsidies
HALIFAX – The federal government expanded its support for businesses today by relaxing qualifications for its emergency wage subsidies and significantly changing the Canada Summer Jobs Program.
Prime Minister Justin Trudeau outlined the changes at a press conference today, after admitting that the original criteria for federal wage subsidies meant to help businesses through the COVID-19 pandemic excluded too many employers.
Until today, businesses needed to show they had lost 30 percent of their revenue compared to the same month last year to qualify for the Canada Emergency Wage Subsidy.
“We recognize that this could be an issue for non-profits, fast-growing companies like startups, and new business,” Trudeau said, “so we’re going to put in place more flexible rules.”
Under these new rules, businesses can use January and February of 2020 as reference months to demonstrate a 30 percent revenue drop, rather than comparing one month in 2020 to the same one from 2019.
Alternatively, employers can show that their profits dropped by just 15 percent from March 2019 to March 2020, which should help businesses forced to close down halfway through the month.
“We will keep listening, but we really hope you will use this help from your country and your fellow citizens to re-hire and pay your workers,” Trudeau said to businesses. “If our economy is to get through this, we need businesses to survive and workers to get paid.”
More Flexibility For Summer Students
Trudeau today also announced major changes to the Canada Summer Jobs program, which subsidizes businesses that hire students temporarily over the summer.
This year, the federal government will cover 100 percent of the cost of hiring students through the program. Employers will also have more time to hire students, as the government extended the program’s deadline into the fall.
Trudeau stressed the importance of giving students work experience and financial help during the outbreak and said the federal government will work with organizations offering emergency relief to find ways to give students jobs.
Opposition Calls Federal COVID-19 Response Too Slow
Trudeau said in today’s press conference that he expects the Canada Emergency Wage Subsidies to be available for employers in three weeks. However, the rules need to be passed in parliament, and no date has been set to bring MPs back to the house.
The federal government has suggested parliament could be held virtually, but the opposition Conservatives say regular house sessions are needed to keep the government accountable.
Conservative finance critic Pierre Poilievre called Trudeau out Wednesday for what he said was the federal government’s slow response to getting help to businesses.
As of today, he said “not a single emergency loan has been delivered to small businesses… not a single salary has been subsidized. In other words, small businesses have literally not received one red cent to keep them alive during this period when governments have shut them down.”
Poilievre said the situation is becoming “more and more urgent” and warned that “millions” could go homeless or without work if help doesn’t come faster.