As the July 15 deadline for provincial leaders to commit to an expanded Canada Pension Plan approaches, the Canadian Federation of Independent Business is calling on governments to delay the final agreement in favour of consulting with Canadians and conducting a full economic impact analysis.
A CFIB survey that polled nearly 4,000 small business owners found 83 per cent of respondents believe it’s irresponsible to proceed with the CPP deal without public consultations or an economic impact analysis, while 75 per cent believe there are better ways to help Canadians save for retirement than to expand the CPP.
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“The government skipped the consultation phase so CFIB took it upon itself to consult with small business owners who will be deeply affected,” said Dan Kelly, CFIB president.
“Small business owners, like most Canadians, believe in evidence-based decision making. All they are asking for is that the evidence actually be collected before any decision is made.”
The CPP enhancement deal, which was reached by federal and provincial finance ministers on June 20, would see the contribution rate for both employers and employees gradually increase to 5.95 per cent from the current 4.95 per cent. The five-year phased increase will begin on Jan. 1, 2019.
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The CFIB survey also found 69 per cent of respondents believe the proposed plan would increase pressure to freeze or cut salaries, with 50 per cent saying it would cause them to reduce investments in their businesses, and 37 per cent saying they would be forced to cut positions.
Read: 3 reasons to talk to your employees about CPP expansion