When it comes to making the perfect baseball bat, it doesn’t come down to the wood but the person crafting it.
That expertise comes at cost at Sam Bat in Carleton Place.
“The primary cost is salary and we have highly-trained, experienced professionals,” says company president Arlene Anderson.
The Canadian government is hoping to ease some of that cost by shaving down the premiums of employment insurance.
For every $100 earned the premium paid right now is $1.88. Finance Minister Joe Oliver says that will be reduced to $1.60 in 2015-2016. The reduction only applies to employer contributions.
“We expect it to save small businesses over half a billion dollars over the next two years,” says Oliver.
The credit also only applies to businesses who contribute no more than $15,000 a year in the insurance premiums.
At Sam Bat, Anderson says the savings would be in the thousands and would likely lead to some part-time jobs.
That is what the government is hoping with 11,000 jobs lost in Canada in August. The number of private sector jobs lost to self-employment about 100,000. Minister Oliver admits job growth hasn’t been a strong as he’d like.
“The last year and a half wasn't at a level we hoped for. We're hoping it will resume,” he says.
Some smaller businesses say the cut to E.I. premiums simply isn’t enough to help struggling employers.
“I don't think it'll make me go on a hiring spree or encourage me to hire anyone else,” says Elaine Schwartz of Ottawa Leather Goods.
With a report from CTV’s John Hua
