moved:
That, in the opinion of the House, the new Working While on Claim pilot project is: (a) not benefiting the vast majority of EI recipients who are able to find employment; (b) creating a disincentive to take part-time work; and (c) leaving low income Canadians worse off than before; and that the House call on the government to take steps to fix Working While on Claim immediately.
Mr. Speaker, I am honoured to be sharing my time here today with the hon. member for Hamilton Mountain.
Since Parliament resumed, the opposition has been trying in vain to convince the government to listen to reason regarding the flaws in the employment insurance reform, particularly concerning the working while on claim pilot project.
It has been shown several times in this House that the new formula used to allow people who are working part-time to find full-time work is putting our most vulnerable citizens at a disadvantage.
That is why, on behalf of all of my NDP colleagues—who are having to deal with thousands of people in their ridings who are both worried about their situation and frustrated because this government continues to dig deeper into their already empty pockets—I move the following motion:
That, in the opinion of the House, the new Working While on Claim pilot project is: (a) not benefiting the vast majority of EI recipients who are able to find employment; (b) creating a disincentive to take part-time work; and (c) leaving low income Canadians worse off than before; and that the House call on the government to take steps to fix Working While on Claim immediately.
Mr. Speaker, throughout the day today, my colleagues will certainly tell you sad, true stories about workers, unemployed workers and employers who are completely discouraged to see the total lack of consideration that this government has for their economic reality.
From seasonal workers in the Gaspé, employees in New Brunswick's tourism industry, construction workers in British Columbia and farmers in the Prairies to employers in specialized seasonal fields, thousands of people are outraged at a government that is attacking their way of life and preventing them from putting food on the table for themselves and their families.
I hope that, when it comes time to vote, once we have clearly demonstrated that this pilot project puts thousands of claimants at a disadvantage, the Conservatives will go back to the drawing board, redo their homework and immediately amend this ill-advised reform.
Before I go into more detail about the problems with the new working while on claim pilot project, let us remember that, initially, under the Employment Insurance Act, claimants who worked during their benefit periods could keep $50 a week, or the equivalent of 25% of their weekly benefits, without having their benefits reduced. Under this pilot project, this amount has increased to $75 a week or 40% of the claimant's weekly benefits.
As a new change in its mammoth bill, the government announced that this pilot project would end in August 2012 and would be replaced by a new national pilot project under which claimants can keep the equivalent of 50% of their weekly employment earnings.
If we compare different amounts of weekly earnings and different amounts of benefits under the old and new systems, it quickly becomes obvious that only people who earn $400 or more will benefit from the new system. Everyone else will lose money whereas, under the previous formula, claimants who received lower employment earnings could obtain more benefits.
As I said a few moments ago, in recent weeks many of us here in the House have pointed out the problems that this new pilot project creates for our constituents. I would like to introduce you to Johanne, one of my constituents, whose case shows just how flagrantly ridiculous the Conservative’s calculations are for Canadians.
Johanne is a single parent who works in tourism, a seasonal sector. She is receiving benefits of $250 a week. In order to make ends meet, she has found a part-time job as a receptionist and earns $120 a week.
Under the 40% rule in the old system, she could earn $100 without any reduction in her benefits. Thus, she lost $20 of her benefits. Now, using the new system, her benefits will be cut by an amount equivalent to half her earned salary; that is $60. In total, Johanne will lose $40 under the new system of calculations. And Johanne is only one example among thousands. I have a table here that shows which combinations of salaries and benefits put people at a disadvantage under the new system. I certainly could share it with the minister, to prove that what her government has proposed is penalizing thousands of Canadians.
We do recognize that the new pilot project is better for certain workers, especially those who have a slightly higher salary while on claim. Still, it must also be recognized that the new model is worse for people with low salaries, seasonal workers and part-time workers, who often are women, vulnerable workers and young people; they account for 14% of all unemployed workers. Looking at it this way, things are very simple for the Conservatives: the poorer you are, the more likely you are to stay that way. Why does the government continue to directly attack women, seasonal workers and Canada’s youth?
I would also like to take a moment to correct some statements made by hon. members opposite. Recently, the Minister of Human Resources and Skills Development stated—and repeated—that the vast majority of employment insurance claimants who were working while on claim would be better off under this new pilot project. The minister was asked to define this majority, but we are still waiting for the numbers, unfortunately.
In May, the Canada Employment Insurance Commission presented a report to the government concerning these changes, estimating that 403,000 Canadians would be better off and 240,000 would be worse off. What is the minister going to say to those 240,000 claimants? Moreover, we know that the amount of money allocated to financing the pilot project is a clear indication that the Conservatives know the new system will be less accessible to claimants than the old system.
In 2009 and 2010, the program cost the government $141 million and $132 million respectively. In 2011, the government extended the pilot project by one year and the amount allocated was $130 million. According to the 2012 budget, the new program will cost about $74 million over two years, or one-quarter of what it cost previously.
How can the minister explain the significant reduction in budget allocations without admitting that the Conservatives know very well that the benefits of thousands of people will be reduced? Instead of deliberately misleading all Canadians, as this government is apt to do, it is high time that the minister announced changes to her pilot project that will not penalize the 240,000 part-time and low-income workers on employment insurance.
How many times will we have to state loud and clear that employment insurance is not a government benefit? Employers and employees contribute to the fund. Canadians make their employment insurance contributions in good faith because they believe that this social safety net will be there for them when they need it.
This ludicrous intrusion, which dates back to when the Liberals shamelessly stole $54 billion from the fund, must stop immediately. This government does not have the right to interfere in a matter that concerns employers and workers.
Employment insurance is a social safety net that provides some support to Canadians when they go through more difficult times. Unfortunately, four out of 10 unemployed workers today do not have access to employment insurance, even though they paid into the fund. The government is doing nothing to improve accessibility, which is restricted as never before. Instead, it prefers to send the message that the individual must bear the burden of unemployment. The government is implying that it is people's own fault if they lose their jobs.
Under the Conservatives, the responsibility for social problems such as unemployment are shifting increasingly from society to the individual. There is no longer a social or collective aspect to unemployment, as though the risk of losing one's job were assumed entirely by the individual and not society. When a corporation replaces a worker with a machine, is it the worker's fault?
One thing is clear: based on what we have seen over the last few decades, the NDP is the only party that can be trusted when it comes to employment insurance. We are the only party to propose policies to improve access to employment insurance benefits and not limit access even more.
I hope that the minister will listen to the thousands of pleas from across Canada that are echoing here in the House today. That is why I urge the government to support this motion and to do everything possible to improve the working while on claim program.
