TORONTO, Nov. 8, 2011 /CNW/ - Although Finance Minister Flaherty's
employment insurance (EI) announcement could have been worse, it still
hits restaurant employers with a $13-million payroll tax increase - a
tough pill to swallow in these hard economic times.
"We appreciate that the EI increase could have been double, but any
increase at all is bad news for employment in this economy," says Garth
Whyte, president and CEO of the Canadian Restaurant and Foodservices
Association. "This is especially true for us as a people industry,
where opportunities for job creation are the greatest."
"In a nutshell, payroll taxes are an unfair and unnecessarily harsh way
for government to raise revenue," says Whyte. "Yes, the increase wasn't
as bad as expected, but it will still hurt. We may have dodged a
bullet, but we're not out of the woods - not by a long, $13-million
CRFA is pushing the federal government on behalf of its members to
streamline and reform the EI system to ensure low, long-term, stable
premium rates. To this end, CRFA is recommending a year's basic
exemption in the EI system to make it a more progressive tax for
entry-level workers and less punitive to labour-intensive businesses.
Canada's $63-billion restaurant industry employs more than one million
people. According to a recent Ipsos poll for Kraft Foodservice Canada
and CRFA, 22 per cent of Canadians were first employed by the
restaurant industry (making it the number one source of first jobs),
and 80 per cent recognize restaurants as a vital source of employment.
SOURCE Canadian Restaurant and Foodservices Association
For further information:
Prasanthi Vasanthakumar, Communications Specialist, 416-649-4254 or firstname.lastname@example.org