Airdrie business owners can soon apply for grants from the Government of Alberta as part of a new program intended to create jobs during a period of economic instability.
According to a release issued Nov. 2, grants will be provided to employers for creating new positions. Each new full time job will be eligible for a grant worth up to $5,000, and each employer can apply for a total up to $500,000.
“Creating a job grant program like this certainly has potential,” Airdrie Chamber of Commerce President Wade Cormier said. “I’m not sure how many local jobs will be created by such a program, but it gives us another tool in our toolbox to use in getting through these tough economic times.
“Keep in mind, the $5,000 limit doesn’t normally cover the cost of hiring but certainly does provide a benefit. I’m not sure if it is enough for local businesses to add another employee but it certainly helps.”
Grants will be made available on a first-come, first-served basis, and the Province has suggested the $89 million per calendar year provided will help create 27,000 new jobs.
But some local small business owners have expressed doubts the program will benefit them. Marwan Sleiman, owner at Xtreme Donair, said the program didn’t make sense, especially considering the recent minimum wage hike.
“Why would they create this to create new jobs? I could have multiple staff, eight employees instead of four, if not for (the minimum wage hike),” he said. “I could have employed eight, instead of an incentive of $5,000.”
Workers saw wages increase from $10.20 to $11.20 on Oct. 1, as part of the first phase to increase wages to $15 an hour by 2018. According to Sleiman, that eventual increase will hurt small businesses.
“The reality is, what’s $5,000? They’re trying to create jobs with minimum wage (going up),” he said. “I’ve been talking to a few people, and they’ve (all said) it makes no sense for small businesses.”
Grants will be made available starting Jan. 1, 2016. According to Alberta Minister of Jobs, Skills, Training and Labour Lori Sigurdson, businesses can apply for a maximum of 100 positions.
“Our government is committed to working with Alberta businesses to provide the right conditions to stimulate job growth and economic prosperity,” she said in an email to the Airdrie City View. “This $178 million commitment will help support our skilled, educated and ambitious workforce to find good, mortgage-paying jobs.”
