NL·Help Wanted

As some workers leave N.L.'s restaurant industry, what's to blame — and what's the solution?

Federal pandemic benefits have been blamed for contributing to the restaurant worker shortage, but the problem is far more complex.

Federal pandemic benefits not the only issue at play

Stephanie Mauger left the restaurant industry behind during the pandemic, and has no regrets. (Adam Walsh/CBC)

This is the second instalment of Help Wanted, a three-part series by CBC Newfoundland and Labrador examining labour shortages within the province's restaurant and food service industries.


When Stephanie Mauger moved to St. John's for university, she fell under the allure of the service industry.

"I jumped and I didn't look back, and I committed 110 per cent," Mauger said.

Eight years of restaurant experience later, Mauger has looked back, and doesn't like all of what she sees. It's perspective, she said, enabled by the pandemic.

"I don't know that it changed with COVID. Rather it was exposed with COVID," she said.

What was exposed, she said, was exploitation of workers, a lack of retention policies and professional development. "People are completely disposable in that industry, and I think most employers do look at it that way," she said. 

She's now left the sector and returned to her studies, and sees many others tapping out too. It comes amid a worker shortage across Newfoundland and Labrador's service industries, as businesses struggle to find staff in the wake of the pandemic's onset.

It's a tangly situation without a single clear-cut explanation or solution, according to one labour relations expert.

"We're sort of grasping at straws a bit," said Gordon Cooke, a business professor at Memorial University.

One thing, to Cooke, is clear: "I just don't see small employers as being the culprit," he said. They could be offering only minimum wage or few benefits due to greed, or it could be because they're hanging on to their businesses by a shoestring, he said.

"I don't think we're going to have hard data, even in a couple years, about the precise plight of employers in this province and beyond, during this crisis," he told CBC Radio's Crosstalk.

This is a cheque for the $2,000 Canada emergency response benefit, a federal aid program at the start of the pandemic that has sparked some backlash as worker shortages plague sectors like the food service industry. (Chris Helgren/Reuters)

Similarly, it's hard for labour market analysis to pinpoint whether pandemic relief programs, like the Canada emergency response benefit, have truly kept people from re-entering the workforce, he said.

To Cooke, any CERB backlash oversimplifies long-standing issues that may be keeping people from the workforce, like public transportation.

"You get a single parent living in [Conception Bay South] that gets a job opportunity in Galway or Stavanger or downtown, you can't take it," he said.

"It's not the CERB solely to blame, because these problems existed for years and years and years. I just don't think we're making any headway on it."

'Thank God for the CERB'

Accessing the benefit didn't keep Audrey Brown from a second stab at her industry after the first pandemic shutdown.

"I was laid off for almost four months, I think, and thank God for the CERB," she said.

Brown had 20 years of restaurant experience in St. John's when the pandemic hit and work vanished. She'd never relied on a government program before, she said, but her job skills hadn't translated into savings to see her through.

"It's a sad fact of reality: I'm approaching my 40s, and I have zero savings and I am absolutely terrified for my future," she said.

Brown returned to her job when restaurants reopened in the late spring of 2020, but "the work was just so insane" with a reduced workforce, she said.

After a second COVID-19 shutdown, she said, she "kind of sat back and said, 'Is this really worth it?'"

"I really just don't think working 60 hours in for days is worth what I'm being paid, and the stress of it all," she said.

She's switched industries, landed a job that has health benefits — "it was a no brainer" — and has no regrets.

Gordon Cooke, a Memorial University business professor, says blaming CERB for labour shortages is an oversimplification. (Submitted by Gordon Cooke)

Core inequalities, exposed

Brown's story touches on "key issue of our age," said Cooke. "It's income inequality, and wealth inequality. These are massive societal issues, and it's a problem."

People work long hours and face huge physical and emotional demands, with little return or security, but Cooke said tackling that inequality shouldn't fall squarely on the shoulders of small businesses.

"I think it's a wacky world that we live in, in North America, that small employers are under pressure to offer these things, when I think that they're a right for people to have," he said. The government should offer health and dental benefits, he said, even if that means raising taxes on higher-income brackets.

"I just do not want to squeeze small businesses. We have to have small businesses who have five employees, we want them to get to 10," he said. Policy solutions need to look at the growing trend of shorter work weeks, and the rising number of low-paying jobs, he said.

A more inclusive approach to recovery is needed, according to the head of End Homelessness St. John's, a collaborative effort to battle poverty in the city. 

"When the CERB was announced, it kind of allowed us to breathe a sigh of relief, to say, you know, our emergency shelter system is not going to be inundated with people losing their homes," said Doug Pawson, the organization's executive director.

CERB kept low-income earners housed and fed, said Pawson, and shouldn't be blamed as the sole factor for the current shortage. What Pawson does want to see is an examination of who is working in service, and how they can be helped.

"I think we need to come to grips that disproportionately women and racialized groups are the ones that occupy those jobs," he said. Economics must blend with social justice to find a way forward, he said.

"This crisis, if you wanted to call it that, it highlights just how important it is to work together. And you can't be blaming each other. You can't be pointing fingers at a federal program."

A man poses in front of a row of green houses.
Doug Pawson, executive director of End Homelessness St. John's, says CERB helped many low-income earners stave off poverty and homelessness. (Paul Daly/The Canadian Press)

A $20-an-hour experiment

One restaurant has gone out on a limb as it tries to find a way forward that balances the needs of its business and its employees.

When Mallard Cottage opened its doors in 2013, owner and chef Todd Perrin said he had wanted to pay a living wage, instead of minimum wage plus tips, to his workers.

"Frankly, at that time, we didn't have the guts to do it," he said. He worried about how higher wages would force higher menu prices, and felt customers would balk at the bottom line.

Fast-forward to the restaurant reopening after the first wave of the pandemic, and a decision to offer a $20 starting wage.

"COVID was the catalyst for us, because we felt we were walking a tightrope, whether or not we were going to survive," said Perrin. "And I figured that if we aren't going to survive, then at least I was going to go out with my boots on, trying to do what I always wanted to do."

Todd Perrin cuts a cooked lobster at his restaurant, Mallard Cottage, where he instituted a $20 hourly wage for servers amid the COVID-19 pandemic. (Gary Locke/CBC)

Perrin ran the idea by his staff, got their approval and made the switch. Now tipping is accepted but not expected, he said, and his workers don't rely on those extras to get by. 

Still, he said, "it's been very difficult. We're a little bit shorter on staff than we'd like to be," and the staff who are there are working hard.

Perrin hopes the model works, but said the future is tough to predict, both for Mallard Cottage and his sector as a whole.

"The industry is going to have to change, because it's not going to survive," he said.

"The model that has existed is not going to survive, and COVID is shining a light on the cracks that are inside of that industry across North America."

Read more from CBC Newfoundland and Labrador

With files from Crosstalk