Coronavirus Updates Canada: Trudeau's 75% Wage Subsidy Will Cover Payroll For Big Business, Too

Updated at 4:30 p.m. (EDT): Businesses affected by the novel coronavirus, no matter how big or small or how many people they employ, will be eligible for the new 75 percent wage subsidy, Prime Minister Justin Trudeau announced on Monday.

If a business’ revenue has decreased by at least 30 percent as a result of COVID-19, it can apply for the subsidy, which will cover up to 75 percent of salaries up to $58,700 earned, or up to $847 per week.

The subsidy is backdated to March 15.

The goal is to “make sure you have money to buy groceries right now and a job to come back to once we’re through this,” Trudeau said.

The prime minister said this government is using money saved up for a “rainy day.”

“Well, it’s raining,” Trudeau said.

About 1.6 million people have applied for employment insurance over the past 10 days.

Trudeau issued a strong warning against businesses who want to take advantage of the wage subsidy, hinting at “strong consequences” for those who do.

“We are trusting you to do the right thing. If you have the means to pay the remaining 25 percent that’s not covered by the subsidy, please do so,” Trudeau said.

Trudeau mentioned airlines, oil and gas, and tourism as “significant areas where we are going to have to do more,” and promised more measures in the coming days.

The subsidy is one of several measures geared towards supporting Canadians, including the Canadian Emergency Relief Benefit (CERB), which pays Canadians who have lost their income as a result of COVID-19, including gig workers and freelancers, $2,000 per month for four months.

Trudeau did not say when the subsidy would launch, nor did he say how businesses will be able to apply.

The CERB online application system is expected to launch next Monday, with payments starting in mid-April.

Trudeau also told reporters he will announce measures aimed at supporting youth and marginalized communities this week. On Sunday, he said he’s working with the Kids Help Phone to hire counsellors who can support youth during the COVID-19 crisis as well as the United Way to ensure seniors can access essential services like groceries.

Businesses affected by the novel coronavirus, no matter how big or small or how many people they employ, will be eligible for the new 75 percent wage subsidy, Prime Minister Justin Trudeau announced on Monday.

If a business’ revenue has decreased by at least 30 percent as a result of COVID-19, it can apply for the subsidy, which will cover up to 75 percent of salaries up to $58,700 earned, or up to $847 per week.

The subsidy is backdated to March 15.

The goal is to “make sure you have money to buy groceries right now and a job to come back to once we’re through this,” Trudeau said.

The prime minister said this government is using money saved up for a “rainy day.”

“Well, it’s raining,” Trudeau said.

About 1.6 million people have applied for employment insurance over the past 10 days.

Trudeau issued a strong warning against businesses who want to take advantage of the wage subsidy, hinting at “strong consequences” for those who do.

“We are trusting you to do the right thing. If you have the means to pay the remaining 25 percent that’s not covered by the subsidy, please do so,” Trudeau said.

Trudeau did not say when the subsidy would launch, nor did he say how businesses will be able to apply.

The subsidy is one of several measures geared towards supporting Canadians, including the Canadian Emergency Relief Benefit (CERB), which pays Canadians who have lost their income as a result of COVID-19, including gig workers and freelancers, $2,000 per month for four months.

The CERB online application system is expected to launch next Monday, with payments starting in mid-April.

Trudeau also told reporters he will announce measures aimed at supporting youth and marginalized communities this week. On Sunday, he said he’s working with the Kids Help Phone to hire counsellors who can support youth during the COVID-19 crisis as well as the United Way to ensure seniors can access essential services like groceries.

The Canadian Armed Forces are standing by and ready to support provinces and remote communities.

Canada has the leadership and resources needed should outbreak response require military assistance, whether a community or province needs logistical, medical, or quarantine support, Minister of National Defence, Harjit Sajjan said.

He added the country will allocate up to 24,000 regular and reserve force members to support the fight against COVID-19, if needed. Municipalities and vulnerable communities across the country can ask for direct support, Sajjan added.

“We have that flexibility to respond quickly,” Sajjan said.

Ontario Premier Doug Ford said the province’s supply of protective medical gear is short, and it will take about two weeks to replenish the stock.

“The good news is we’re in the process of securing massive, massive amounts of new inventory,” Ford said, but added that hospitals will struggle if they experience a surge in cases over the next two weeks.

Across the province, there are 1,706 COVID-19 cases, with 23 deaths. Ontario’s largest outbreak has taken place in a Bobcaygeon nursing home, where nine residents died and more than 30 staffers reported COVID-19 symptoms.

A surge of COVID-19-related patients in Canadian hospitals is concerning, the country’s chief medical officer told reporters on Sunday, as the country’s known number of cases skyrocketed past 6,500, with about 70 deaths.

Hospitals are not yet overwhelmed, but that could change as more cases arise, Canada’s chief medical officer Theresa Tam said.

The upcoming days will reveal whether aggressive physical distancing measures have been effective, Tam said, adding that this week is “crucial.”

Over the weekend, the number of deaths increased from 39 to 61. According to data shared by Tam, 7 percent of all cases require hospitalization, 3 percent become critically ill, and 1 percent die. People under the age of 40 make up 9-12 percent of all hospitalizations in the country.

Tam said she’s specifically paying attention to Alberta, Ontario, and Quebec because these provinces are seeing a growth in community transmission, meaning more infections are not connected to travel or have no known source.

“At any one time, there are many other (cases) under investigation, awaiting laboratory results, or not yet tested,” Tam tweeted on Sunday. “Everybody is at risk.”

B.C. reported on Friday a 12 percent drop in new cases and credited physical distancing for the slow down.

“That tells us we are cautiously optimistic. We are levelling off,” Dr. Bonne Henry, B.C.’s health officer, told reporters on Friday.

Henry shared data models that suggest B.C. will have enough hospital beds and ventilators to support ill patients if virus spread doesn’t escalate more than it has already. The province should also be able to support an outbreak as big as the one seen in China’s Hubei province—the original epicentre of the pandemic.

The rescheduling of non-essential surgeries and medical procedures has cleared up space in B.C. hospitals for COVID-19 patients, Henry said.

While there is room for optimism, Henry warned that data modelling does not predict outcomes.

Prime Minister Justin Trudeau is expected to announce more details on Monday morning about the new wage subsidy he introduced last week, which will cover 75 percent of wages for small- and medium-sized businesses affected by the novel coronavirus (COVID-19).

Trudeau also told reporters he will announce measures aimed at supporting youth and marginalized communities this week. On Sunday, he said he’s working with the Kids Help Phone to hire counsellors who can support youth during the COVID-19 crisis as well as the United Way to ensure seniors can access essential services like groceries.

As of Saturday night, Ontarians are not allowed to congregate in groups that are larger than five people, with few exceptions.

But people shouldn’t even go for walks if they don’t have to, Ford said on Monday. He hasn’t issued any emergency orders explicitly prohibiting outdoor walks and runs yet.

Daycares supporting non-essential workers as well as households with more than five people are exempt. Funerals can host up to 10 people.

The emergency order was issued by Premier Doug Ford as a way to escalate physical distancing measures in the province.

Ford also announced news measures to combat price gouging. Any business and individual caught selling necessary goods—disinfectants, medical equipment, and personal hygiene products—at hiked-up rates will face a ticket of $750. If summoned to court and convicted, an offender will face a fine of up to $100,000 and up to one year in jail.

Here is the breakdown of confirmed or probable COVID-19 cases across Canada:

British Columbia: 970

Alberta: 621

Saskatchewan: 134

Manitoba: 72

Ontario: 1,706

Quebec: 2,840

Newfoundland and Labrador: 135

New Brunswick: 66

Nova Scotia: 122

Prince Edward Island: 11

Yukon: 4

Northwest Territories: 1

Nunavut: 0

There are more than 634,000 known COVID-19 cases globally, with nearly 30,000 deaths.

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