Small business continue to face significant barriers hiring or recalling staff as they reopen their business, said the Canadian Federation of Independent Business (CFIB) on Wednesday, adding that the federal government will need to implement key changes to the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Response Benefit (CERB).

“We’re in a pivotal period in the COVID-19 emergency – many economies are reopening and Canadians are looking forward to getting a haircut, enjoying a patio or revisiting their favourite stores. However, despite the record unemployment numbers, many of these small business owners are now facing significant staffing challenges. While it’s too early to do away with CERB, it’s time to shift gears on the federal support programs to encourage people to rejoin the labour force,” said CFIB president Dan Kelly in a news release.

“CFIB was very pleased with the federal government’s decision to extend the wage subsidy for June, July and August in order to help businesses recover from the COVID-19 emergency. Most expect their costs to return much more quickly than their revenues. But it should be noted that we are already in the new June subsidy period and businesses do not know whether the rules have changed yet.

“We fully expect this to be a messy recovery requiring flexibility and understanding on everyone’s part. In order to get Canadians back to work, government needs to quickly announce its plans for CEWS changes as it puts additional guidance around the use of CERB.”

The latest CFIB survey found:

  • 37 per cent of small firms have concerns related to staffing (layoffs, retention, refusal to work);
  • 48 per cent of small businesses have laid-off staff temporarily, 10 per cent permanently;
  • 26 per cent have rehired some of their laid-off staff with eight per cent hiring new workers;
  • 31 per cent have received the wage subsidy, with another 23 per cent in process; and 
  • 76 per cent of those using the wage subsidy said it was very helpful in addressing their challenges.

CFIB said it recently presented its recommendation on CEWS and CERB to the federal government, including:

  • Lowering the 30 per cent revenue drop test for CEWS to ensure more small firms can access the program and introducing a sliding scale, where firms would be able to qualify for a smaller wage subsidy with smaller revenue losses;
  • Suggesting all small firms should have access to a 10 per cent wage subsidy, with a subsidy of 25, 50 or 75 per cent based on revenue losses of five, 10 or 15 per cent;
  • Including all employees in the payroll tax rebate, not just those who have been furloughed; and
  • 82 per cent of small firms believe CERB recipients should be required to be available and looking for work and 68 per cent supported workers being permitted to earn more than $1,000 in additional income while retaining some of the CERB benefits.