Manitoba expands ‘Back to Work’ wage-subsidy program By: Carol Sanders Posted: 7:00 PM CDT Wednesday, Jul. 15, 2020

Manitoba is beefing up its back-to-work wage-subsidy program, but help may come too late for cash-starved employers.

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Manitoba is beefing up its back-to-work wage-subsidy program, but help may come too late for cash-starved employers.

The program to reimburse businesses that hire or bring back laid-off staff (up to $5,000 per employee to a maximum of five workers through to the end of August) is expanding in scope.

“The enhanced… program will reimburse up to $5,000 for up to 10 new workers, to a maximum of $50,000 per business, not-for-profit or charity,” the province said in a Wednesday release.

“Businesses that have already benefited from provincial summer wage subsidies are eligible for this new wage subsidy benefit to hire or bring back an additional 10 employees. The program will now reimburse half of all wages for those newly hired to Oct. 31.”

Manitoba’s “Back to Work” wage subsidy application deadline is Oct. 1, with a Jan. 4 deadline to submit proof of wages.

Businesses can apply for the wage subsidy starting Thursday at noon, at manitoba.ca/covid19/business.

Manitoba ranks second among the provinces in returning to pre-COVID-19 pandemic employment levels but more than 69,000 Manitobans are still looking for work, Premier Brian Pallister said later at a news conference.

“We are leading the country, but not out of woods yet,” he said. “We must do everything we can to help them be self-sufficient again.”

Pallister said Manitoba businesses can take the announced wage subsidy program “to the bank.”

“Interest rates are at an all-time low,” the premier said. “If the government of Manitoba is promising me I’m getting 50 per cent of my wage expenses back, I’m taking that to the bank — literally. That’s money that’s freed up for me to do other things with.”

However, while the expanded wage subsidy is “a step in the right direction,” the urgent need of local employers may be too great to wait, said Jonathan Alward, Canadian Federation of Independent Business Prairie region director.

“If the government of Manitoba is promising me I’m getting 50 per cent of my wage expenses back, I’m taking that to the bank– literally. That’s money that’s freed up for me to do other things with.” — Premier Brian Pallister

“If money could be given, in part, upfront, that would be better,” he said in an interview. “Definitely, cash flow is one of the top concerns for many small businesses out there.

“It’s hard to just go ‘to the bank.'”

In Manitoba, 70 per cent of small businesses have taken on debt as a result of COVID-19, and a majority of those with debt (71 per cent) estimate it will take more than a year to pay off, Alward said, citing CFIB survey results released this week.

Across Canada, small businesses that have incurred debt because of the pandemic report they have taken on $135,000 on average, the survey says. The non-profit federation that represents 110,000 members estimates the total coronavirus-related debt taken on so far by Canadian small businesses is $117 billion.

“If money could be given, in part, upfront, that would be better. Definitely, cash flow is one of the top concerns for many small businesses out there.” – Jonathan Alward, Canadian Federation of Independent Business Prairie region director

In Manitoba, to finance pandemic revenue shortfalls and extra costs, small businesses are relying on personal savings (33 per cent), credit cards (26 per cent), bank loans (17 per cent), retirement savings (eight per cent), mortgages (seven per cent), and loans from families and friends (six per cent), the federation said.

“The most urgent need is direct financial assistance that can help workers and small businesses cover costs of essentials like (personal protective equipment),” NDP Opposition leader Wab Kinew said in a statement Wednesday.

“We need to see a real plan to restart our economy that provides essential supports — like direct financial assistance and a plan for child care.”

Meanwhile, businesses that could expand but weren’t sure if it would be worth the time and energy to hire someone now if the Manitoba program expired at the end of August might be inclined to now that it’s extended until the end of October, said Alward.

Business growth depends on Manitobans, said Pallister, lauding them for “their willingness to adhere to the fundamentals” that prevent the spread of COVID-19.

“We need to see a real plan to restart our economy that provides essential supports– like direct financial assistance and a plan for child care.” — NDP Opposition leader Wab Kinew

On Wednesday, public health officials reported no new cases of COVID-19 in Manitoba, and said the five cases reported Tuesday — the first for the month of July — are not a cause for alarm. The current five-day test positivity rate is below one per cent (0.16 per cent).

Vigilant hand washing, social distancing and staying home when ill are making the economic rebound possible, Pallister said — along with demonstrating loyalty to Manitoba businesses by shopping at them.

carol.sanders@freepress.mb.ca