As initially reported by CTA, the Government of Canada has extended the Canada Emergency Wage Subsidy (CEWS), which was initially slated to run until June 6 and has now been extended until the end of August 2020.
As it currently stands, companies that have seen their gross revenues drop by 15 per cent in March and 30 per cent in April and May are eligible for the program — but today, the Prime Minister and Finance Minister Morneau hinted that potential changes to the current threshold are on the table.
With the program now extended until August 29, 2020, Minister Morneau indicated that the federal government will be consulting with employer and employee groups over the next month to work on the details, including looking at the threshold – something CTA has been asking for the last few weeks.
As CTA’s latest Business Conditions Survey shows, half of carriers do not believe they qualify for the subsidy, which has led CTA to continue to signal to Ottawa that a more scaled approach is needed for any potential second phase of the program.
“CTA is encouraged by today’s announcement. The CEWS is an important program for many carriers and we are pleased to see it extended,” says CTA President Stephen Laskowski “We are also very happy to see the current threshold is up for discussion as many carriers in need of assistance are falling just below the current qualification threshold.”
CTA also continues to ask the Government of Canada to introduce a Payroll Tax Deferral Program, which would further provide fleets the needed cash flow to help maintain operations and for meal allowance increases for all truck drivers who have faced rising costs throughout this pandemic.