Last week, the federal government announced a 75-per cent wage subsidy for businesses impacted by COVID-19.
However, as Okanagan companies scramble to radically change their business models in the face of the pandemic, it may not be enough for many to rehire all their staff.
Some businesses like Marten Brewing plan to start out small with the wage subsidy only bringing some employees back.
The Vernon pub has been closed for two weeks due to the pandemic, which has forced the business to lay off around 38 employees.
However, the federal government’s announcement of the subsidy has prompted the pub to bring back a few employees and try out a new business model: takeout.
If it works, the pub could bring more staff back.
While the subsidy will remove some of the risk for the business, allowing it to experiment with a new offering, it won’t be a silver bullet that allows the business to automatically rehire everyone.
General Manager Clinton Bialas explained the the pub is trying to survive itself and would struggle to come up with the final 25 per cent of wages if the jobs aren’t generating any revenue.
Other shuttered Okanagan businesses are still waiting to hear the details of the program, which are expected to be released on Tuesday.
Vernon’s Big Sun Beachwear has had to lay off eight staff members after closing the store due to the pandemic.
It would like to bring some staff back with the wage subsidy. However, it will likely only be able to if the money comes upfront instead of through reimbursements or changes to payroll deductions.
“We don’t have any income coming in so if I have to come up with thousands of dollars every month, just to be able to pay to have people behind the counter where there is no people…it is just not going to be realistic,” owner Lisa Gallie said.
Other businesses are hoping that by radically changing their business model, they can avoid the need for subsidies all together.
Accentz Dance Studio in Vernon moved to online dance classes and has so far not had to lay off any staff.
“I’m hopeful at this point we can make it through, definitely not as we do normally, but it is just the new normal that we are all learning,” said owner Becky Martselos.
“I’ve got a lot of hope that we will be okay.”
Whether they access the new wage subsidies or not, local businesses all hoping for the support of their communities as they try to adapt to an era of pandemic restrictions.