The prime minister Justin Trudeau has decided to extend by eight weeks the payment of the Benefit the canadian emergency (PKU), which brings to 24 weeks as the maximum period during which a service provider may benefit from it.
Not sure it is a good idea. Because in this period of déconfinement, the extension of the PCU the risk of putting sticks in the wheels of the recovery of commercial and industrial activities, specifically in the hiring of the labour on a modest income.
Think about it for two minutes. The PCU reported to his beneficiary $ 500 per week, with nothing to do as a job. It is 15 $ dollars more per week than the amount that a worker at the minimum wage (13,10 $ per hour) earns during a normal working week of 37 hours, that is 485 $.
In addition, the recipient of the PCU can even earn an extra income up to $ 1000 per period of four weeks (so $250/week) without that it comes to reduce the amount of ” his ” PKU.
This means that the provider of the PCU can collect $ 750 per week, or $ 500 to PCU and $ 250 of extra income.
Let me be clear : I was absolutely not against the PCU nor the additional booster in the initial period of 16 weeks.
Because obviously, the PCU has helped workers victims of the COVID-19, whether employees, managers, self-employed, unemployed or fishermen without work, to survive financially during the paralysis of many sectors of the canadian economy. Which paralysis has started on 23 march in Quebec.
Until now, 8 million people have benefited from the PCU to round out their purposes of months in this period of war against the COVID-19.
The problem ?
As economic activity picks up, companies are going to have need of their labour.
The extension of eight weeks of the PCU has a counter in the callback of workers with modest incomes.
To $ 750 worth of income per week with the PCU and the extra income, the service provider of the PCU earns the equivalent of 20,27 per hour for a 37-hour week, where it will not, in fact, worked in concrete terms, a fraction of the time ! It is 7,17 $ per hour more than earns a worker the minimum wage, which, to him, is working during those 37 hours.
Put yourself in the place of providers of ECPS ! For many of them, it is more profitable to stay at home during the extension of the eight weeks of the PCU to return to work.
THE SOLUTION ?
As has been said by the prime minister François Legault : “we need to find a solution where there is an incentive to go to work. “
This is why Mr. Legault is examining the possibility to extend its own assistance programs, such as premiums for essential workers.
Another option : negotiate with the Trudeau government a “formula” by which the providers of ECPS who agree to return to work to retain part of the said provision.
What extent counter-productive that this extension of the PCU Trudeau !