QUÉBEC BUDGET 2023. While highlighting some progress, employers’ organizations regret the fact that the budget does not go far enough to ease the pressure on employers suffering from labor shortages.

For example, they welcome the introduction of an option to stop paying contributions to the Quebec Pension Plan (QPP) for workers aged 65 and over, thereby increasing the pool of workers in Quebec.

“In the face of labor shortages, all generations of workers are an asset to employers,” said Charles Milliard, CEO of the Federation of Quebec Chambers of Commerce (FCCQ).

On the other hand, he would have liked Treasury Secretary Eric Girard to offer tax breaks to workers over 60 who want to keep working.

“This type of measure, which we have been asking for for three years, does not exist,” specifies Charles Milliard.

The Canadian Federation of Independent Business (CFIB), Quebec Division, also welcomes the measure regarding the QPP, but points out that it is not enough to reverse the worsening “staff shortage”.

“The number of job vacancies in Quebec’s SMEs has increased by 73% in five years, from 95,000 in 2017 to 165,100 in 2022,” said François Vincent, CFIB Vice President for Quebec.

He reiterated that the Treasury Secretary could have reduced SME taxation in Quebec, recalling that Quebec is the province with the “least favorable” small business taxation in Canada.

According to the CFIB, Quebec SMEs pay 32% more payroll taxes than Ontario. In addition, eight Canadian provinces have lower tax rates than Quebec, according to the CFIB.

As of January 1, 2022, the Quebec SME reduced tax rate (small business deduction) was 3.2%, while the Canadian average (ex-Quebec) was 2.4%.

In contrast, Saskatchewan and Manitoba have a 0% rate.

The same is true for Quebec (MEQ) manufacturers and exporters. The association says it is becoming “urgent” to increase the number of workers available and regrets that the budget “will not have any real impact in that direction”.

“We wish the 15 most in-demand occupations in Quebec were recognized in the Workforce Action Plan,” says Véronique Proulx, CEO of MEQ.

These jobs include welders, heavy machinery mechanics, machine operators, electrical mechanics, and electrical engineers.

However, the MEQ welcomes the measures to make vocational training more attractive to young people, as well as those promoting the integration of immigrants into companies by helping them learn French.

However, helping employers hire new employees is not a game changer, points out Véronique Proulx. “It’s good, but it doesn’t bring new people into the factories,” she insists.

For example, MEQ would have liked Quebec to establish a priority entry route to permanent immigration for temporary foreign workers who already had jobs.

The association would also have liked the CAQ government to “significantly” increase housing supply across Quebec.

A measure that would attract more workers to regions where there is also a shortage of apartments and houses.