Canada expands financial aid to workers, businesses hit by Omicron restrictions

The federal government is temporarily expanding eligibility for the Canada Worker Lockdown Benefit and the Local Lockdown Program programs to aid those affected by capacity limits imposed in response to the spread of the Omicron variant.

Prime Minister Justin Trudeau made the announcement Wednesday as provinces tighten restrictions on businesses in response to a countrywide surge of COVID-19 cases.

Prime Minister @JustinTrudeau told @CityNewsTO in a year end interview he wouldn’t rule out more COVID supports if needed.
Now with case counts rising and new restrictions, the federal government is expanding the lockdown benefit to include workers hit by capacity limits #cdnpoli

— Cormac Mac Sweeney (@cmaconthehill) December 22, 2021

Finance Minister Chrystia Freeland says those who have lost over 50 per cent of their income due to capacity restrictions “can qualify for the Canada Worker Lockdown Benefit.”

“This benefit will put $300 a week in your pocket to supplement your lost wages,” Freeland said.

This took effect Sunday, Dec. 19 and will run through to Feb. 12.

Targeted aid for businesses

For employers who have had to reduce capacity of their main business by 50 per cent or more, they are eligible for wage and rent subsidy support through the local lockdown program.

“We are lowering the revenue decline threshold from 40 per cent to 25 per cent. Eligible employers will receive wage and rent subsidy support from between 25 per cent to up to 75 per cent depending on how much revenue they have lost. Your organization only needs to demonstrate revenue loss during the current month paired with 2019. Employers will be able to apply for these expanded support programs after the end of each program period in exactly the same way that they received wage and rent subsidy support when those programs were launched last year,” Freeland said.

Freeland defined a lockdown to be when a health authority orders non-essential businesses closed and non-essential workers to stay home.

Over the last few weeks, provinces have tightened restrictions on businesses in response to a countrywide surge of COVID-19 cases.

“These expanded federal support measures will ensure that provinces and public health authorities across the country can continue to make the right difficult decisions they need to make to save lives — confident in the knowledge that the federal government will be there to financially support workers and businesses as we finish this fight,” she said Wednesday.

Currently, no part of the country is officially in lockdown.

The Canadian Federation of Independent Business, which teamed up with Restaurants Canada to ask premiers on Tuesday to push Ottawa to increase small business supports, welcomed the new round of aid, but said it’s “not perfect.”

“Unfortunately, if you are losing your customers, not because of a capacity restriction/lockdown, but because public health officials and Omicron are scaring…them, then you do not qualify for any additional help,” CFIB President Dan Kelly tweeted just after Trudeau’s announcement.

“So a retailer or drycleaner that is allowed to open but loses 40 per cent of their business due to Omicron fears qualifies for zero help from Ottawa.”

The Canadian Chamber of Commerce also had concerns about how the expanded programs will work.

“While questions remain for businesses who have capacity restrictions under different definitions – such as distancing requirements between tables at restaurants, for example – we applaud the quick action of government to bring reassurance to businesses across Canada,” said Alla Drigola Birk, the chamber’s director of small and medium enterprise policy, in a statement.

Business owner Cristina Junca was just pleased to hear any relief was on its way.

Junca fears capacity measures or other restrictions will be levied in Calgary, where she operates Crafted, a store selling handmade works from emerging Canadian artisans.

“We don’t know what will happen, but my husband and I are preparing for that,” she said.

“We have saved money, but if (restrictions happen), we need to cut employee hours.”

Workers have already approached Junca asking if they’ll still be collecting a paycheque or asked to come in, if lockdowns are issued. Many are students, who really need the money, she said.

Knowing that government relief will be there if the worst comes is a relief for Junca, who is already seeing the Omicron variant impact business.

“Now, we have less people, we have less sales and we have less work,” she said.

“It’s a struggle for us.”