HALIFAX -- The Halifax Regional Municipality says it will have to lay off almost 1,500 employees due to the COVID-19 pandemic.
In a news conference on Wednesday, HRM’s Chief Administrative Officer Jacques Dubé said, due to the tax deferral, elimination of bus fares and other measures taken during the pandemic, COVID-19 is having a negative impact on the municipality’s revenue streams.
As a result, Dubé said the municipality made the hard decision to reduce budgeting staffing levels.
“We have made the decision to reduce budgeted staffing levels by approximately 1,480 persons,” said Dubé. “These casual, temporary and seasonal employees who normally provide service to the public cannot due to the pandemic.”
Dubé said these numbers include more than 500 seasonal employees who are not currently employed, but will no longer be hired this spring and summer as planned, including seasonal recreational staff.
Effective Tuesday, Dubé announced a hiring freeze in an effort to minimize layoffs.
“We are committed to our staff and layoffs are not a decision we take lightly,” said Dubé. “That said, I cannot at this point guarantee there will be no further layoffs.”
The city says many of the affected workers are with the parks and recreation department, and with municipal parks and recreation centres closed for the foreseeable future, there just wasn't enough work to keep them on.
"At this point in time, we can't continue to pay for work that isn't being done, there's no love in that, there's no joy in that," said Halifax Mayor Mike Savage.
Additional measures for Halifax Transit
Halifax Transit is adding additional measures to its day-to-day operations to help try and slow the spread of COVID-19.
Buses have further reduced seating capacity by alternating seating on the buses. According to Dubé , this should reduce the capacity by about 50 per cent.
“Alternating seating is also blocked off with signage at some terminals,” he said.
Halifax Transit is also taking extra precautions on ferries, which will now limit capacity to 25 passengers per trip. Food and water is also now prohibited on ferries.
Dubé reminded transit users that the buses and ferries should only be used for essential services during the pandemic, like going to work or going to get groceries.
He also said anyone who feels ill should not use public transit until they feel better.
“In addition to these changes, several other measures have been taken by Halifax Transit to help reduce the spread of COVID-19 including an increased frequency in wipe downs of high-touched areas and surfaces, an elimination of fares, having bus users enter and exit through the rear doors, and limiting passengers on buses to seated passengers only,” said Dubé.
Halifax Transit has been deemed an essential service by the province of Nova Scotia under the current provincial state of emergency, which was first declared on March 22 and later extended.
Status of taxpayers
On Tuesday, Halifax Regional Council decided unanimously that immediate relief and support was needed for both residential and commercial customers during tax season.
Changes include the deferral of the interim tax bill due date from April 30 to June 1, the suspension of non-sufficient-fund fees, and the reduction of the interest rate charged on arrears from 15 per cent per annum, to 10 percent per annum.
“With these changes, it is critical that those who can pay their taxes continue to do so in a timely fashion,” said Dubé.
Tax revenue makes up 82 per cent of the municipality’s revenue.
The city is short $223 million dollars - because of COVID-19.
The bulk of that -- $188 million -- comes from the municipality's decision to allow residents and businesses to defer on their property tax bill until June 1.
The rest is due to a variety of items like lost transit and parking revenue, but it still has $100 million dollars a month in bills to pay, and 82 per cent of its income comes from taxes.
"If you can pay your taxes, pay your taxes, we do need the money," said Savage.
The union representing some of the laid-off workers says the hope is some of them can get financial assistance through the federal government in this time of uncertainty.
"Nobody knows really what things will look like when they restart, and so it's definitely a concern," said CUPE Nova Scotia president Nan McFadgen.
City officials say there are no plans to lay off full-time employees at the moment, but wouldn't rule it out, either as the situation faced by the municipality due to the pandemic changes every day.
