Manitoba expands wage subsidy program for 2nd time

A wage subsidy program the Manitoba government launched for students in April, and expanded last month to include other employees, is being expanded once again.

In June, the program offeredup to $5,000for as many asfive employees per business, regardless of the employee's age. Beforethat, only employees up to age 29 were eligible.

The revamped program, announced Wednesday, will now reimburseup to $5,000 per employee for as many as 10 new workers, to a maximum of $50,000 for anybusiness, not-for-profit or charity, Premier Brian Pallister said.

Businesses that have already benefited from the earlier provincial summer wage subsidies are eligible for the new benefit to hire or bring back an additional 10 employees, he said.

"We would all likethis pandemic and its challenges to end, but realistically we know that it will take time for our economy to grow back. And so this program will be needed for a longer period than all of us would hope."

Employers that have received financial support from other provincial and federal programs are alsoeligible for the expanded wage subsidy, Pallister said.

The program will reimburse half of allwagesfor employees newly hired from now untilOct. 31. Businesses can apply for the wage subsidy starting July 16 at noon, and haveuntil Jan. 4, 2021, to submit proof of wages.

Since the program's first expansion, more than 300 Manitoba businesses have applied for approximately $5 million to support 1,000 positions, Pallister said.

"Since the beginning of this pandemic, we knew we had to create opportunities for young Manitobans, and we've created them," he said.

The province posted the second-best job recovery statistics in the country last month, but there are still more than 69,000 Manitobans looking for work, Pallister said.

WATCH |Manitoba expands wage subsidy program again

The Canadian Federation of Independent Business said the expanded aid program is welcome. But Jonathan Alward, the group's Prairie director, said the program only goes so far for businesses facing financial challenges rightnow.

"Businesses definitely need help to get employees back, so this is a good step," Alward said.

"Ultimately, though, there are still a lot of businesses facing cash-flow problems, and a lot of the funding for this program is all targeted at the back-end."

Max's Restaurant in St. James has tapped into the federal government's wage subsidy program to partially cover labour costs for aroundhalf of its 13 current employees. The Filipino eatery had 42 workers before the pandemic.

Co-ownerArnel Alibinsaid he'd consider using the provincial program to help subsidize employees ineligible for the federalprogram, providedbusiness warrants the increase in employees.

He said because of public health orders, his dining capacity is half of what it was.

"It will all depend on theneeds, really," he said.

$120M still the budget

Manitoba had previously budgeted $120 million for its wage subsidy programs.

Asked Wednesday if the latest program expansions areincluded in that figure, Pallister said yes,but that he hoped thetotal budget would actually go higher.

"Some things don't cost, they pay," he said."And the paybackon getting people back to work is enormous."

The goal is to create a V-shaped economic recovery, where the economy bounces back swiftly after its sharp drop.

"The sooner we can do that then Manitoba is going to be able to have its economy churning out services, new jobs,opportunities for people," he said.

NDP Leader Wab Kinewsaid the government is missing the mark, and should provideimmediate funding to help businesses cover costs for essentialsupplies, like personal protective equipment.

"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," he said in a statement Wednesday.

Pallister also announced Wednesday that Manitoba isextending the application deadline for its Gap Protection Program to Aug. 31. The previous deadline was July 31.

Businesses ineligible for federal support can apply for an immediate $6,000 under that program, which has already provided more than $45 million in COVID-19relief to over 7,600 employers who otherwise had no government support, Pallister said.

WATCH | Premier Pallister on COVID-19 measures in the province | July 15, 2020:

Manitoba expands wage subsidy program for 2nd time

4 years ago

Duration 25:26

Manitoba Premier Brian Pallister on the province's response to the COVID-19 pandemic : July 15