More than one quarter of small firms are reporting that workers are refusing return to work as they prefer to stay on the Canada Emergency Response Benefit, according to a survey released Thursday by the Canadian Federation of Independent Business.

Only one third of small firms report they are at normal staffing levels, added the CFIB.

“Staffing is one of the many challenges for small businesses trying to get back to normal,” said CFIB president Dan Kelly, in a news release. “More than a quarter (27 per cent) of small firms report that some of their laid-off staff have refused to return to work when recalled.

“It is clear that CERB has created a disincentive to return to work for some staff, especially in industries like hospitality and personal services. CERB was created as emergency support for workers who had lost their job due to the pandemic, not to fund a summer break. This is why it is critical that all parties support the government’s proposed change to end CERB benefits when an employer asks a worker to return to work.

“While CFIB is pleased the government has extended the wage subsidy until December, details on how the program will work are desperately needed. It is crazy that employers do not even know if they will qualify for the July subsidy period while we are half-way through the month.

“Many workers can’t go back to work yet for valid reasons, but changes are needed to key support programs to help employers reopen and rehire their teams. There is no recovery without getting Canadians back to work.”

Of those who have had staff refuse to return to work, the CFIB said the top reasons reported by small business owners are:

  • They prefer to stay on CERB (62 per cent);
  • They are concerned about their own physical health or that of their family (47 per cent);
  • They are concerned about child care obligations (27 per cent);
  • They do not feel there are enough hours or work available (16 per cent);
  • They prefer the Canada Emergency Student Benefit (CESB) (11 per cent); and 
  • They are concerned about taking public transportation (7 per cent).

The CFIB said it has urged the government to make changes to the federal aid programs, to ensure Canadians can safely transition from CERB to work using the Canada Emergency Wage Subsidy (CEWS) as a step towards unsubsidized employment.

The CFIB said it recommends several initiatives to help move Canadians from  CERB to CEWS and then towards unsubsidized employments:

  • Allowing more businesses to participate in CEWS by removing or reducing the 30 per cent revenue drop test or by creating a sliding scale to allow those with lower revenue drops to access a smaller subsidy;
  • Continuing CERB benefits for those who need them, but requiring recipients to be available and looking for work, and ensuring benefits stop if a worker is offered a new job or their old job back, unless they or a family member are sick; and 
  • Allowing CERB recipients to earn more while retaining some of their benefit so they are not discouraged from working more hours.