Pressure mounts to extend layoff reprieve
VICTORIA Premier John Horgan faced renewed pressure Tuesday to extend temporary layoff provisions for businesses struggling to recover from COVID-19, after Ottawa announced changes to national policies.
The federal government said it was lengthening its temporary layoff program to six months, to give businesses more time to rebound from pandemic losses without having to permanently fire staff and pay out severances.
The change affects only federally regulated private businesses (without collective agreements that cover recall rights), including banks, airlines, pipelines, the marine industry, telecommunications, and road or rail projects that cross provincial borders.
“We know that many employers who have had to temporarily lay off employees intend to bring them back to work,” federal Minister of Labour Filomena Tassi said in a statement. “However, there is still a great deal of uncertainty regarding exactly when that will be possible. That’s why we are taking action to protect the jobs of those employees and to support those employers by giving them more time to recall their employees.”
Ottawa’s action stood in contrast to B.C., where a 16-week temporary layoff clause expires within the next two weeks. B.C. business leaders have warned widespread bankruptcies could occur if cashstrapped businesses suddenly have to pay severance for staff they eventually intend to bring back to work as the economy slowly reopens. Businesses want B.C.’s temporary layoff rules extended until the end of August.
Horgan was hit with a second day of questions on the topic at the legislature.
“Take the entirely reasonable step, and grant the extension that other governments have granted, that the federal government has granted, and throw a lifeline to small businesses who don’t want to permanently terminate employees,” said Opposition Liberal critic Mike de Jong.
Horgan reiterated a pledge to discuss the issue Thursday with business leaders. But the sector said in an open letter it has been trying to raise the issue with government for weeks.
The layoff extension is particularly vital to the survival of B.C.’s hotel sector, where 60 per cent of the 1,250 hotels and 850 independent accommodations remain closed due to public health restrictions on international tourism, large gatherings and non-essential travel, said Ingrid Jarrett, president of the B.C. Hotel Association.
The slow recovery means 56,400 hotel employees currently laid off need the provincial extension, or hotel owners will go broke trying to pay out severances, she said.