Employers now need only 15 per cent decline to apply

Business groups applauded the federal government’s decision to loosen requirements for its wage subsidy program for employers hit by COVID19, even as they emphasized the need for money to quickly flow to struggling Canadian enterprises.

After speaking with stakeholders and workers, Prime Minister Justin Trudeau said his government will refine some of the emergency aid programs announced in recent days and weeks.

“We want to make these emergency measures as inclusive as we can so we’re listening and making adjustments along the way,” he said Wednesday.

Rather than having to show a 30-per-cent decline in revenues, businesses can instead show a 15-per-cent decline in March, and can compare their revenues to previous months rather than the previous year, Trudeau announced.

Charities and non-profits can also choose whether to include revenues from governments, such as grants, in their calculations when they apply.

Businesses need to survive and workers need to get paid if the economy is to “come roaring back after this crisis,” Trudeau said.

Employment Minister Carla Qualtrough said 4.26 million people, or nearly one quarter of the country’s workforce, has applied for benefits since

March 15.

The changes from Ottawa should help many of the country’s companies to retain or recall thousands of employees, several business groups say.

Increasing the flexibility makes sense since many companies didn’t experience the impact of the pandemic until later in March, said Brian Kingston, vice-president of fiscal and international for the Business Council of Canada.

He said the government is designing costly programs quickly, comparing it to building an airplane as it’s flying.

Trudeau also announced that the government will cover 100 per cent of wages for students hired under the Canada Summer Jobs Program.