MNI REALITY CHECK: Canada Faces CAD 1.3B Weekly Wage Loss

--One-Quarter of Workforce In Low-Paid Industries

By Anahita Alinejad

     OTTAWA (MNI) - Canadian employees in industries dominated by hourly work

could face CAD 1.3 billion a week in lost wages on coronavirus shutdowns, MNI

calculations show.

     Sales, culture and recreation workers earned an average CAD 2.6 billion in

wages a week in March 2019 according to MNI calculations using Statistics Canada

figures. If those paychecks are cut in half by shutdowns and health warnings

that would come to CAD 1.3 billion for those two industries alone. 

     Major banks have also cut back regular hours and declines in construction

and manufacturing as health officials discourage gatherings would push the

weekly total up even more.

     Companies saying they would curb hours on Tuesday alone included Claire's

jewelry, Second Cup Coffee, Ontario liquor stores, Tim Hortons donut shops and

the Harvey's burger chain. That morning Doug Ford, premier of Canada's most

populous province of Ontario, declared a state of emergency allowing him to

close bars and restaurants just before St. Patrick's Day drinking began.

     One in five companies have started layoffs and 43% have reduced hours

according to the Canadian Federation of Independent Business that represents

small employers. 

     The Conference board of Canada says employment will fall by 29,000 in the

second quarter and the jobless rate will climb to 6% from 5.7% in the first

quarter. 

     Prime Minister Justin Trudeau on Wednesday offered up to CAD 27 billion in

direct payments to workers and business. Some CAD 3.8 billion of that is for a

temporary business wage subsidy. Another CAD 5 billion is for displaced workers

who don't qualify for regular jobless benefits, and CAD 10 billion is for people

without paid sick leave caring for relatives or children amid school closures. 

     The wage subsidy "needs to be far higher in order to help - closer to the

75-90% levels announced in many European countries," Dan Kelly, president of the

business federation, said in a statement Wednesday. 

--MNI Ottawa Bureau; +1 613 981-1671; email: anahita.alinejad.ext@marketnews.com

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