La Dolcevita Day Spa & Salon has been challenged in finding employees since reopening in May (Image Credit: CFJC Today)

By Chad Klassen

COVID-19 ECONOMY

Kamloops businesses feel CERB is undermining ability to hire workers during COVID-19

Aug 6, 2020 | 4:05 PM

KAMLOOPS — Davide Fattor has been flooded with calls since his La Dolcevita Spa & Salon opened at the end of May. Clients have been wanting to get their hair cut and be pampered.

“The response from the clientele has been really good,” he said. “As soon as we opened anything, it’s not back to normal but certainly the response has been phenomenal.”

But Davide is challenged in keeping up with demand with a shortage of workers. Some of his former employees, mainly estheticians, have remained off work. He feels that can be attributed to CERB, the Canadian Emergency Response Benefit.

“Not every staff member came back right away, so therefore because they were on CERB, and some staff they were going to stay on longer, change their work schedule. We’ve struggled a little bit in accommodating all our clients’ needs,” said Fattor.

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He’s had no luck hiring anyone. As a result, La Dolcevita has had to cut its hours of operation.

“We close Mondays, for instance. We reduced our Saturday schedule. We were in the evenings late. Now we no longer work as late. Seven o’clock is the latest. We open up a little later than usually, so we’re trying to accomodate and have more of an amount of clients that come in during the times that we’re here versus trying to accomodate every single possible hour out there for clients,” said Fattor.

There are other businesses in Kamloops feeling the labour crunch brought on by CERB. The Noble Pig is also struggling to bring back employees. Some part-time servers are opting to take the CERB, which in some cases is paying people more than their regular wage.

So far, the labour shortage hasn’t been as significant on restaurants with 50 per cent capacity. However, Noble Pig co-owner Maeghan Summers says once restrictions on seating capacity are lifted, that’s when they could be in trouble.

“If it does continue and it continued on, it’s going to be a challenge for places that are starting to get their capacities up and need those employees, because it’s a cost-benefit analysis for them. If they make more money on CERB, they’re going to stay on CERB,” noted Summers.

Prime Minister Justin Trudeau has said CERB will last until October. But Fattor wants the federal government to revert to EI benefits. He says CERB is undermining his ability to run his business.

“What would’ve been great is when July 15 came along and CERB ended, that was it. People went back to work,” said Fattor. “But when you give a whole summer where people can collect CERB, obviously some people of a certain age group like to take advantage, so it’s hard to find staff that want to come to work.”