Labrador North Chamber Pleased with Changes to Wage Subsidy Program, Concerned with Timelines

Category: News Releases

Apr 2020

FOR IMMEDIATE RELEASE
APRIL 8, 2020

Labrador North Chamber Pleased with Changes to Wage Subsidy Program, Concerned with Timelines

Happy Valley-Goose Bay, NL – The Labrador North Chamber of Commerce (LNCC) commends today’s announcement by the federal government surrounding adjustments to the Emergency Wage Subsidy Program, though remains concerned with wait times for businesses.

“Since its inception and throughout the COVID-19 pandemic, the LNCC has been at the forefront of connecting relevant, necessary information to the Central Labrador business community,” says LNCC Chairperson Andy Turnbull. “The LNCC maintains a close working relationship with all levels of government and continues to seek clarification on programs on behalf of businesses in the region. We are pleased with the changes in criteria of the Program, but remain concerned with the wait time before businesses receive funds from government.”

Today the Government of Canada relaxed its conditions for the Emergency Wage Subsidy Program, allowing businesses to demonstrate a decline of 15 per cent of revenue for the month of March, down from the original 30 per cent. Charities and non-profits also have a choice to include or exclude government subsidies when calculating revenue losses.

“This decrease to 15 per cent revenue will more effectively respond to businesses with small profit margins including new businesses, those in the growth stage or who have cyclical revenue, as well as individuals who are self-employed,” says Turnbull. “However, employers in the region need to feel supported by these programs. Businesses have been asked to retain their employees, though wait weeks to receive funds to support their operations. Many businesses simply do not have enough cash reserves to wait.”

While these emergency measures are effective and will capture additional businesses who may have been previously excluded, it is imperative that employees remain connected to their employers.

“In order for our local businesses to succeed, employees and employers need to remain connected so operation of their businesses can recover very quickly once the COVID-19 measures have been lifted,” explains Turnbull. “The LNCC looks forward to continuing its strong working relationship with government officials and advocating on behalf of its member businesses.”

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Contact:
Julianne Griffin, CEO
(709) 896-8787
[email protected]

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