17 per cent of Sask. small businesses eyeing layoffs: report

The Canadian Federation of Independent Business’ (CFIB) monthly Business Barometer is not painting an optimistic picture of Saskatchewan’s small business climate.

In March, the monthly survey took place two days before the provincial budget.

“Hiring plans weakened again in March, so we only have 11 per cent of business owners planning to hire full time. But on the flip side, 17 per cent are planning to lay off,” CFIB Prairie and agri-business vice president Marilyn Braun-Pollon said.

Braun-Pollon added that her phone has been consistently ringing after the provincial budget introduced $908 million in new taxes.

“I can tell you since that budget was delivered we’ve heard from hundreds of small business owners that are concerned about the impact,” she said.

Much of the concern comes from the increase of the PST to six per cent and its addition to areas like insurance and construction.

“When you look at the tax relief versus the tax hikes, the tax hikes far outweigh what the income tax relief and corporate tax relief will provide,” Braun-Pollon said.

READ MORE: Restaurants, small businesses feeling the squeeze of Sask. tax increases

Collaborative Construction owner Trevor Anderson is one of the business people who called the CFIB. Anderson’s business focuses on residential construction and he has eight fulltime employees.

It’s a number he hopes doesn’t have to change.

“We’re not looking to get rid of anybody, but with that said we’re certainly not hiring anyone either,” Anderson said.

“We’re hoping we can maintain with these new changes, and hopefully not have to lay off anybody. But like I said, we’re fairly optimistic.”

As of April 1, the six per cent PST now applies to construction supplies and labour costs.

“Obviously maybe tighten our belts a little bit on overhead or even profit margin. Another thing we can do is crew, right sizing, making sure the right amount of people are on jobs,” Anderson said.

ECC Construction Group vice president Danny Hansen is feeling optimistic at the start of the construction season. His crew has a few jobs on the go, and he anticipates work will ramp back up now that spring is here.

Right now Hansen has six full-time employees. Some were laid off for the winter, and he expects them to return along with sub-contractors.

“Some people are really slow and looking for work. We offer them to help us out as sub-contractors here, some of the companies we know, but for us no. We’re pretty busy,” Hansen said.

During the peak of ECC’s season last year, Hansen had 28 full-time employees including contractors.

John Hopkins, Regina and District Chamber of Commerce CEO, said that he anticipates some economic recovery on the horizon, pointing to improvements in the American and Asian economies.

“When the global economy heats up, it’s always good for Saskatchewan because we have what the world needs in food, fertilizer, and fuel,” Hopkins said.

Hopkins’ outlook isn’t all sunshine, acknowledging local challenges like struggling commodity prices and new provincial taxes.

“That’ll take some time before it sorts out, but I think there’s also some significant opportunity on the horizon for Saskatchewan,” Hopkins said.