Issues

COVID-19

The Issue

The novel coronavirus (COVID-19) has affected international trade and global economies on a massive scale. Rapid and coordinated action by the federal and provincial governments is required to ensure businesses can survive through this global pandemic.

Please refer to COVID-19: Resources for Business for up-to-date information.

Our Position

The Saskatchewan Chamber of Commerce, in partnership with local chambers and many provincial business groups, conducted a survey on March 16 and 17, 2020. There were over 1000 responses from across the province. The SCC recommended immediate action by government in the following areas could help offset business challenges:

• Immediate action on Federal Employment Insurance (EI) – Open up the criteria on EI to eliminate the waiting periods, allow self-employed persons full access to EI for a certain period of time, offer extensions on the Work-Sharing program, extend or temporarily eliminate the length of time a person can stay on EI, and offer some form of EI for parents who need to stay at home to provide childcare with the closure of public schools.
• Allow layoffs  without termination – Revise the provincial layoff policy to allow temporary layoffs of up to 8 weeks on a specific period without requiring notice or payment in lieu. Manitoba has this policy in place currently.
• Expand loan access – Provide quick turnaround, low interest loans to businesses to ensure they have enough cash flow to sustain them during this dramatic loss in revenue. Greater use of the Federal Canada Small Business Loan program facilitated by local credit unions and banks will mean easier transactions.
• Extend tax windows – All levels of government should extend all tax payment deadlines to reflect the current situation and to enable businesses to preserve short-term cash flow.
• Ensure access of products across the border – Define international border rules for incoming transportation drivers to ensure sustained flow of products while maintaining effective safety protocols.

Recommendations

SCC Recommended Actions To Date

1. Fiscal and Monetary Stimulus 

• Federal Government Actions to Date:
  • Bank of Canada reduced benchmark rate to 0.75% as a proactive measure.
  • On March 18th, announced $82 billion stimulus – $27 billion in direct support to workers and business, $55 billion to meet liquidity needs. 
  • Office of the Superintendent of Financial Institutions (OSFI), a federal agency announced added $300 billion in lending capacity by major banks. 
• Provincial Government Actions to Date:
  • On March 18^th Province tabled partial budget for 2020-2021 (expenditures only) totalling $14.5 billion in expenditures with $2.7 billion capital plan to stabilize and stimulate the economy. Minister of Finance is anticipating a deficit.   

2. Immediate Action on Federal Employment Insurance (EI)

• Federal Government Actions to Date:
  • Temporary supports for workers without paid sick leave (or similar workplace accommodation) who are sick, quarantined, or forced to stay home to care for children include: 
    • Waiving one-week waiting period for those in imposed quarantine that claim EI sickness benefits. Temporary measure is in effect as of March 15, 2020. Requirement to provide medical certificate is waived.
    • On March 25, federal government announced Canada Emergency Response Benefit (CERB) – a taxable benefit of $2000 per month for 4 months starting early April 2020;  CERB was the result of streamlining the previously announced Emergency Care Benefit and Emergency Support Benefit; covers those who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, and working parents who must stay home without pay to care for children who are sick at home; applies to wage earners, contract workers, and self-employed persons who would not otherwise be eligible for EI.
  • Long-term supports for workers who lose their jobs or faced reduced hours resulting from COVID-19 include:
    • • Established March 20, 2020, Self-Isolation Support Program will be administered by Ministry of Finance and provides $450 per week for a maximum of two weeks for residents forced to self-isolate who are not covered by the recently announced federal EI programs and other supports. 
        • Program is designed to ensure Saskatchewan residents are covered by either the federal or provincial program so that no one is forced to choose between working or protecting their family and community from COVID-19. It is primarily aimed at self-employed persons. 
        • Eligibility criteria include the following: they have contracted COVID-19 or are showing symptoms; they have returned from international travel and must self-isolate; AND they are not eligible for compensation like sick leave, vacation leave from employer; they do not have private insurance to cover such disruptions; and they are not covered by other programs, like the newly expanded EI supports.    

3. Allow for Layoffs Without Termination

Amend layoff policy under the Saskatchewan Employment Act to allow for temporary layoffs of up to eight weeks on a specific period without requiring notice or payment in lieu, similar to Manitoba.

• Provincial Government Actions to Date:
  • On March 20, 2020, changes to the employment standards regulations under the Saskatchewan Employment Act introduced new unpaid public health emergency leave and removed 13-week employment requirement for workers to access sick leave, along with removing the requirement of a doctor’s note. The regulations were amended to:
    • Ensure that during a public emergency, businesses will not have to provide notice or pay in lieu notice when they have to lay of staff if it is a for a period of 12 weeks or less in a 16-week period; and 
    • If an employer lays off employees periodically for a total of more than 12 week in a 16-week period, employees are considered to be terminated and are entitled to pay instead of notice per the Act. 
    • Employees would now have immediate access to EI benefits, while keeping employers financially stable to ensure employees have job to return to later on.  

4. Expand Loan Access to Businesses

Provide quick turnaround, low or no interest loans to businesses to ensure they have adequate cash flow to sustain them during dramatic revenue losses. Greater use of the Federal Canada Small Business Loan program facilitated by local credit unions and banks will ensure for easier transactions.

• Federal Government Actions to Date:
  • On March 20, 2020, changes to the employment standards regulations under the Saskatchewan Employment Act introduced new unpaid public health emergency leave and removed 13-week employment requirement for workers to access sick leave, along with removing the requirement of a doctor’s note. The regulations were amended to:
    • Ensure that during a public emergency, businesses will not have to provide notice or pay in lieu notice when they have to lay of staff if it is a for a period of 12 weeks or less in a 16-week period; and 
    • If an employer lays off employees periodically for a total of more than 12 week in a 16-week period, employees are considered to be terminated and are entitled to pay instead of notice per the Act. 
    • Employees would now have immediate access to EI benefits, while keeping employers financially stable to ensure employees have job to return to later on. 
  • Regional Development Agencies (RDAS) are offering additional funding and/or flexible arrangements to tourism operators, SMEs, and organizations receiving RRDA funding. The RDA for western Canada is Western Economic Diversification Canada (WD) and their phone number is 1-888-9378.
  • Federal government is proposing to provide eligible employers a temporary wage subsidy for a period of three months. Subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
  • Changing Canada Account so Minister of Finance can determine the limit of the Account to best deal with exceptional circumstances. Account is administered by EDC and is used to support exporters when deemed to be in the national interest.

5. Ensure Access to Products

Clearly define international border rules for incoming transport drivers to ensure the  sustained flow of good, while also maintaining effective public health and safety protocols.

• Federal Government Actions to Date:
  • On March 18^th, the Canada-US border was restricted to essential or urgent travel only. This will go in effect midnight March 21, 2020 Those transporting essential goods like food and medical supplies are expected to be exempt from mandatory 14-day self-isolation period. Anecdotal reports suggest confusion around how it’s being implemented on the ground.

6. Extend Tax or Bill Payment Deadlines

All levels of government should extend all tax payment deadlines to reflect the current situation and to better enable businesses to preserve short-term cash flow.

• Federal Government Actions to Date
  • CRA will allow for businesses to defer, until after August 30, 2020, the payment of any income tax amounts that become owing owed after March 18, 2020 and before September 2020.
  • CRA will not contact any small or medium-sized enterprises to initiate any post-assessment GST/HST or income tax audits at least for the next four weeks. 
• Provincial Government Actions to Date
  • All Crown utilities to implement zero-interest bill deferral for up to six months for residents whose ability to make bill payments may be impacted by the COVID-19 restrictions.
  • The three-month PST remittance deferral and audit suspension begins effective immediately. Saskatchewan businesses unable to remit PST due to cashflow concerns will have relief from penalty and interest charges. Businesses unable to file provincial tax returns by due date may submit request for relief from penalty and interest charges affected. 
  • On March 26, 2020, Government of Saskatchewan announced temporary suspension of most eviction hearings in province. Office of Residential Tenancies (ORT) will no longer take applications for residential evictions related to missed or late rent, only for urgent claims related to health and safety. Previous eviction orders for non-urgent matters won’t be enforced and scheduled hearings will be cancelled. Tenants who are unable to pay their rent during state of emergency will be expected to pay their rent in full once state of emergency is over.
  • On March 26, 2020, the Province temporarily suspended enforcement measures on fines for the next six months; measure is retroactively effective for March 19th;  includes late payment fees, files sent to SGI related to drivers’ licence suspensions, files sent to the CRA for set off, and files sent to collection agencies. Provincial court offices no longer accepting fines payment in person.