The coronavirus has caused an “economic gash” in Saskatchewan’s business community and nearly half of all companies expect to see a major decrease in revenue, according to a recent survey.
The Saskatchewan Chamber of Commerce (SCC) and its partners surveyed businesses on March 16 and 17 about how COVID-19 has affected them, and with more than 1,000 responses received, the results are stark but hold some promise as well, according to a news release.
“Businesses told us clearly that they are in a very, very troubled position with so many unknowns. The best analogy is that we have suffered an economic gash that needs immediate attention and will take time to heal,” Steve McLellan, SCC CEO, said in the news release.
The results of the survey demonstrate a clear picture of the current situation, he continued. Some highlights include:
- 85 per cent of businesses have felt a negative effect already, while 87 per cent believe the challenges will continue for more than two months
- The greatest negative effects include reduced revenues; layoffs; workers taking time off for health reasons or self-isolating; workers being underused at work; and the cancellation of important work-related travel events
- 42 per cent of respondents believe they will see as much as a 50-per-cent drop in revenue
“We were heartened that almost half of the respondents had a plan in place to help mitigate the challenges. We have also seen many creative and impactful actions by businesses to show support for the health of employees and the public, and for Canada’s collective effort,” said McLellan. “From voluntary closures of public spaces, including restaurants and facilities, to donating excess food to food banks, businesses are still focused on doing the right thing for the community, employees and customers.”
Survey respondents recommended immediate action by governments to offset challenges. Such recommendations included:
- 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 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 eight weeks on a specific period without requiring notice or payment in lieu. Manitoba currently has this policy in place
- 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 the sustained flow of products while maintaining effective safety protocols
“Our business people have dealt with this dramatically changing economic landscape as well as could be expected given the circumstances so far. But there needs to be rapid and co-ordinated action by the federal and provincial governments or else we will see closures on a level that we have not seen in this province for decades,” Valerie Sluth, chair of the SCC board, said in the news release.
“Most business people are monitoring the government messages and are fully supportive of the level of inter-jurisdictional cooperation that has happened to date, quick action by these levels of government will be required in the next few days to retain a stronger hope of future success.”
