The Canadian Federation of Independent Business (CFIB) is calling for public consultations after a majority of Saskatchewan small businesses rejected the recently agreed to expansion of the Canada Pension Plan (CPP).
In a release, the CFIB said 72 per cent of the small businesses they surveyed in Saskatchewan opposed the agreement in principle.
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Another 86 per cent said it was irresponsible for governments to proceed with expanding the CPP without holding public consultations and conducting a full economic impact analysis.
“The government skipped the consultation phase so CFIB took it upon itself to consult with small business owners who will be deeply affected,” said CFIB president Dan Kelly.
“The agreement in principle was made behind closed doors, and far away from Canada’s economic reality. We’re calling on governments to bring the deal to Canadians and to give them time to decide if this is the best deal for them.
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Under the agreement, contributions for a typical worker earning about $55,000 would initially increase by $7 a month starting in 2019, and employers would match those contributions.
The plan will be phased in over seven years until 2025 and it means when people retire their maximum annual benefits would increase by about one-third to $17,478.
The CFIB survey, conducted between June 29 and July 4, found that 79 per cent of the businesses said there were better ways to help people save for retirement.
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“If it’s as good a deal as some governments are claiming, then they should have nothing to be afraid of by discussing its economic impact with the public,” Kelly stated.
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The survey also found that 69 per cent of small Saskatchewan firms would face increased pressure to freeze or cut salaries if the proposed CPP hike is approved, with 40 per cent saying they would be forced to cut positions.
“Small business owners, like most Canadians, believe in evidence-based decision making,” said Marilyn Braun-Pollon, the CFIB’s vice-president Prairie & Agri-business.
“All they are asking for is that the evidence actually be collected before any decision is made.”
Provinces will have until July 15 to officially sign on to the agreement before it becomes formalized.
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The only provinces that didn’t sign the agreement were Manitoba and Quebec, which has its own pension plan.
With files from The Canadian Press
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