Extra cash for small businesses will take pain out of minimum wage hike, employers hope

CBC
·2 min read
Judy Sparkes-Giannou is chair of the Newfoundland and Labrador Employers Council. She estimates a new wage support program will support about 600 businesses in the province. (Ted Dillon/CBC - image credit)
Judy Sparkes-Giannou is chair of the Newfoundland and Labrador Employers Council. She estimates a new wage support program will support about 600 businesses in the province. (Ted Dillon/CBC - image credit)
Judy Sparkes-Giannou is chair of the Newfoundland and Labrador Employers Council. She estimates a new wage support program will support about 600 businesses in the province.
Judy Sparkes-Giannou is chair of the Newfoundland and Labrador Employers Council. She estimates a new wage support program will support about 600 businesses in the province.

Judy Sparkes-Giannou, chair of the Newfoundland and Labrador Employers' Council, estimates a new government program will help about 600 businesses in the province. (Ted Dillon/CBC)

The Newfoundland and Labrador government is offering cash to employers in a new program aimed at supporting small- and medium-sized businesses through rising costs and the latest minimum wage increase.

The program, announced Friday, will be available to businesses with fewer than 100 employees, with at least one person making minimum wage between April 2023 and last month. Applications will open in May.

Judy Sparkes-Giannou, chair of the Newfoundland and Labrador Employers' Council, says the program comes at a time  of "exponential" challenges.

"We have been, you know, just coming out of COVID. We've been immersed in inflation, interest rates are creeping. The labour market has been unstable," Sparkes-Giannou said Friday at the program's announcement at the Bannerman Brewing Co. in St. John's.

"The price of fuel, the carbon tax, some of the federal taxes that we've seen imposed. It has been a time whereby we've had to really dig deep."

Businesses can receive between a one-time payment of between $2,500 and $5,000. The amount of funding a business can receive will be scaled depending on how many people it employs, how many of them make minimum wage, and whether they operate year-round. Sparkes-Giannou said she expects the funding to support around 600 businesses, which could receive money from the program by the end of May.

AnnMarie Boudreau, CEO of the St. John's Board of Trade, said the program will bring meaningful support to small and medium-sized businesses.
AnnMarie Boudreau, CEO of the St. John's Board of Trade, said the program will bring meaningful support to small and medium-sized businesses.

AnnMarie Boudreau, CEO of the St. John's Board of Trade, says the program will provide meaningful support to small- and medium-sized businesses. (Ted Dillon/CBC)

Newfoundland and Labrador's minimum wage increased from $15 to $15.60 per hour on Apr. 1.

"We understand how important is it for your growth to help alleviate some of those costs. It's not the answer by no stretch, but it's a positive step for small business," Davis said.

St. John's Board of Trade CEO AnnMarie Boudreau said she believes the funding will go a long way for small businesses.

"What we are hearing, the theme would be they're having to be creative," Boudreau said. "It's a constant effort in terms of assessing what makes sense and what the business model can support. So I think a program like this will be helpful."

Labour Minister Bernard Davis said the province is committing $2 million for the program through the Canada-Newfoundland and Labrador Labour Market Development Agreement.

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