An Act to amend the Employment Insurance Act (removal of waiting period)

This bill was last introduced in the 40th Parliament, 3rd Session, which ended in March 2011.

This bill was previously introduced in the 40th Parliament, 2nd Session and the 40th Parliament, 1st Session.

Sponsor

Christian Ouellet  Bloc

Introduced as a private member’s bill. (These don’t often become law.)

Status

Outside the Order of Precedence (a private member's bill that hasn't yet won the draw that determines which private member's bills can be debated), as of Dec. 1, 2008
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment removes the waiting period that precedes the commencement of benefits after an interruption of earnings and repeals provisions that refer to that waiting period.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

March 24, 2010 Passed That Bill C-241, An Act to amend the Employment Insurance Act (removal of waiting period), be concurred in at report stage.
April 29, 2009 Tie That the Bill be now read a second time and referred to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 5:15 p.m.


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Bloc

Christian Ouellet Bloc Brome—Missisquoi, QC

moved that Bill C-241, An Act to amend the Employment Insurance Act (removal of waiting period), be read the second time and referred to a committee.

Madam Speaker, I will be pleased to read the summary of the bill.

This enactment removes the waiting period that precedes the commencement of benefits after an interruption of earnings and repeals provisions that refer to that waiting period.

Let us begin with a definition of what a waiting period is. It is the two weeks following application for employment insurance. This two week period starts the day following the day the person loses his job. There are very few cases where this waiting period does not apply. There are exceptions for maternity leave for the first child, etc, but they are very rare. In our opinion, the two week waiting period is not right and that is why we want to get rid of it.

On November 25 last year, the Minister of Human Resources and Skills Development answered a question from the Bloc Québécois concerning abolition of the waiting period as follows:

It is insurance, and as with any insurance, there is always a wait period, because of course there must be confirmation that they are being laid off for longer than just a week or two. This is necessary to ensure the integrity of the system.

We do not agree with this. Even if people are laid off just a week, that week ought to be paid. As a general rule, in the present crisis situation, people are rarely laid off for a week, or for two weeks, but for far longer than that.

The truth is that the waiting period is nothing more and nothing less than a way of punishing the workers. Because they have lost their jobs, they get nothing to live on for two weeks. How can a family with several children and a single breadwinner survive for two weeks without that one income? It does not occur to the present government that people have huge hardships to cope with during that period.

I will even give examples of people in my riding who worked overtime for which they were not paid for several years. It was paid when they lost their jobs, even though they had worked those hours several years earlier. In the case of people receiving a pension, the employer’s part was considered income by employment insurance, even though it had been paid in 2006-07 and was not current income. It was calculated, therefore, as income and divided by the number of weeks worked, which pushed back the beginning of the waiting period, in some cases by as much as several weeks. In other words, people who are without an income and who have spent all their money are punished with a two week delay without an income. This puts them in a very difficult situation and it is totally unnecessary.

Does the government arrange it so that the unemployed suffer serious economic difficulties, in the hope that they will get back to work faster? This kind of logic is totally nonsensical. The role of government is quite the opposite: to help people and meet their needs.

Sweden sets an example for the whole world, even though it is sometimes criticized for giving too much. Still, 80% to 85% of Swedes who lose their jobs find another and go back to work.

The two week waiting period does not exist and everyone who loses their job gets one year of employment insurance.

There is no work penalty, and the duration is not affected by a waiting period. We think that if the waiting period were eliminated, people who lose their jobs could find another more easily and more quickly because they would not be worrying about how they are going to survive the next two weeks. It would help people get back to work.

The government deprives the unemployed of $900 million. The minister has actually calculated that such a step would cost $900 million. It is possible. We will take that number. We do not say it is unrealistic and it may be true. What it means, though, is that $900 million is not being given back to the unemployed. That $900 million would do a lot to help people get back to work.

The current economic crisis is creating more unemployed people and the government therefore wants to inject money into the economy as quickly as possible. I think that the $900 million that has been paid by both the unemployed and their employers should be given back to the unemployed and should not be turned into something that is discriminatory. I will actually read an article in a few minutes from a newspaper in my riding which points out just how discriminatory this is for working people.

As I said earlier, all the large amounts received just delay the waiting period. This money is subtracted and pushes back the two week waiting period.

I would like to mention a few short passages from a newspaper in my riding, a large regional paper from Sherbrooke, which talks about a terrible scandal, the two week waiting period. It says:

Economic groups, unions and politicians have been fighting for over a decade to amend the Employment Insurance Act.

This specifically concerns the waiting period. This is fair to say because it has been demanded by unions, by community groups, by groups that defend the unemployed and also by workers. Truly everyone is demanding that the waiting period be eliminated.

It has been said that employment insurance is a universal system. If it is universal and is imposed by the government, why now are only 53% of people eligible for employment insurance benefits when in 1989, 83% of people who lost their jobs were eligible? Fewer and fewer people are eligible for employment insurance and, on top of that, there is a waiting period that should not exist.

In addition, I would like to point out that they have added—and this is the argument we will keep hearing—five weeks to the end of employment insurance benefits. However, these five weeks at the end do not replace the two weeks at the beginning. We know that only 28% of people use all of their employment insurance benefits. That means that this five week measure affects only 28% of unemployed people. Once again, this is obviously discriminatory.

I would like to come back to the newspaper article. It talks about how we have moved from an employment insurance system to a deficit insurance system. It adds that this is scandalous. How true.

We agree fully with this newspaper, which also mentions that eliminating the two week waiting period would have a much greater impact on the financial security of claimants. That is exactly what I am trying to say. You can see that the Bloc Québécois are not the only ones to think this way.

The article also goes on to say:

In an economic crisis, these measures penalize the most vulnerable workers in our society.

That is quite right. The most vulnerable in our society need these two weeks.

According to the Canada Labour Congress, estimated benefits lost...total more than $43 million a year for the City of Sherbrooke alone—

The figures are the same. Sherbrooke is just beside my riding. I live in the Eastern Townships and the amount of employment insurance benefits not handed out and kept by the government is estimated at $100 million. These monies could cover the two week waiting period. The money is there. We do not have to look for it elsewhere. Workers have already paid for it.

How can the Government of Quebec tolerate having this social cost passed on to it—

Given that employment insurance is not paid during these two weeks, the social cost is passed on to Quebec, or Ontario or the other provinces because people have to get through these weeks with a minimum amount of money.

Sherbrooke is already seeing what it can do—

It is not just a national matter. Cities are also interested in this problem as are regional stakeholders such as the chambers of commerce. Earlier, I spoke about those advocating for this change. As we can see, the chambers of commerce also want the waiting period to be eliminated.

This article asks—and so do we together with the Liberals and the New Democrats—that everyone join us to create a majority and eliminate the waiting period, which is a real failure of our democratic system.

This government must recognize the pressing need to eliminate the two week waiting period for everyone—

I did not say it. It was in an article that was just published on February 19. That is very recent.

—to improve access to the program and speed up payment of premiums.

This injustice must be corrected now. For many of our fellow citizens, access to insurance paid for by employers and employees is not a privilege but a right and a question of dignity.

That is how the article ends, and we completely agree with it. We would also like to ask the Liberals to support our bill. In the past, it was under the Liberals that the employment insurance system began to deteriorate. However, since they have been in opposition, they are keeping an eye on employment insurance and they appear much more willing to listen. We hope they will be receptive to the unemployed workers who are having difficulty during those first two weeks. We are not asking for a major revolution; we are simply asking that the two week waiting period be completely eliminated for everyone and that as soon as someone loses his or her job, that individual can receive employment insurance immediately.

The waiting period always comes at the beginning, except when money is found and it is pushed back even further. The two consecutive weeks end the Saturday of the following week. It is all planned very carefully so there can be no getting around it.

We are asking that these two weeks be replaced by employment insurance. Even if it costs $900 million, that would be one way of injecting $900 million into the economy immediately. Indeed, we can be sure that anyone who loses their job will not be setting this money aside, either in the bank or in a trust fund. They will spend it immediately, because they need it.

This is what we really want and we hope that all members of the House will understand the importance of this bill to amend the Employment Insurance Act.

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 5:30 p.m.


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Bloc

Richard Nadeau Bloc Gatineau, QC

Mr. Speaker, I would like to start with congratulations to my colleague for his altruistic bill which will demonstrate the kind-heartedness of the 308 members of this assembly who will—at least I hope they will—vote in favour of helping the unemployed. Let us not forget that our children, our neighbours, even we ourselves, may one day need this assistance when a job is lost. The waiting period has to be eliminated so that EI recipients can immediately have some income to help their families.

My question is this: as far back as 2004, a motion with the backing of the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities was moved by the Bloc Québécois in order to get the federal government of the day to pay back the $46 billion—and let us keep in mind that a billion is 1,000 million—that had been lifted from the employment insurance fund, in order to return that money to the people for whom it was intended, who are in need of it, and who are receiving employment insurance benefits. Those people and their employers had put that money into the fund, not the federal government.

If I am correct, the figure is now $54 billion. This would mean that what the Liberals started—which was absolutely odious—the Conservatives have continued. They have continued to dip into the EI fund and the money has not been returned to those rightfully entitled to it.

Is this really the case? Would this not be a good way of getting the money to help people in need of it?

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 5:30 p.m.


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Bloc

Christian Ouellet Bloc Brome—Missisquoi, QC

Mr. Speaker, I thank my colleague for his excellent question. The position he has taken with respect to this matter illustrates that this is really a generalized need.

A surplus is indeed continuing to accumulate in the employment insurance fund at a rather unbelievable rate. That is why it is being said that the government is accumulating money—

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 5:35 p.m.


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Liberal

The Speaker Liberal Peter Milliken

Order, please. I am sorry to have to interrupt the hon. member for Brome—Missisquoi.

The House resumed consideration of the motion that Bill C-241, An Act to amend the Employment Insurance Act (removal of waiting period), be read the second time and referred to a committee.

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 5:45 p.m.


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Liberal

The Speaker Liberal Peter Milliken

Before the royal assent ceremony, the hon. member for Brome—Missisquoi had the floor for questions and comments following his speech. He has about three minutes left to wrap up his remarks or take further questions.

The hon. member for Brome—Missisquoi.

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 5:45 p.m.


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Bloc

Christian Ouellet Bloc Brome—Missisquoi, QC

Mr. Speaker, thank you for giving me the floor. I do not mind moving on to another question, but I may not have finished my response to the previous question.

The important thing to bear in mind is that, right now, the employment insurance system is not getting what it is supposed to get. It is grossly unfair to workers, partly because of the two week waiting period. That is the first thing we should eliminate, but the employment insurance system has a number of other shortcomings too.

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 5:45 p.m.


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Liberal

Gurbax Malhi Liberal Bramalea—Gore—Malton, ON

Madam Speaker, I agree with my colleague, but how much does the program cost?

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 5:45 p.m.


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Bloc

Christian Ouellet Bloc Brome—Missisquoi, QC

Madam Speaker, unfortunately, I did not understand the question. I think my colleague wants to know how much this measure would cost. The minister mentioned a fairly accurate figure, $900 million, which would come from the fund. There is money in the fund. The fund is not short of cash—quite the opposite, in fact. As my colleague pointed out earlier, the surplus now exceeds $50 billion. The money is there, and the $900 million would be injected directly into Canada's economy.

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 5:45 p.m.


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Souris—Moose Mountain Saskatchewan

Conservative

Ed Komarnicki ConservativeParliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour

Madam Speaker, I welcome this opportunity to speak about the employment insurance program. I thank the hon. member for raising the subject.

I will address the specific issue of the two week waiting period in Bill C-241, but first I would like to outline our government's strategic approach to EI through Canada's economic action plan.

While Canada is better prepared than almost any other country to weather the worldwide recession, we certainly are not immune to it. We know people are facing uncertainty and are concerned. We know that those who have lost their jobs through no fault of their own are facing difficult times ahead. We feel for these people and we are working to protect them. We have taken and continue to take action to ensure that help is there for Canadians and their families when they need it most.

To this end, we consulted widely with Canadians. In fact, prior to introducing our economic action plan in budget 2009, we conducted the most extensive prebudget consultations in the history of our country.

Through our plan, among other things we are proposing to extend EI benefits, while investing an unprecedented $8.3 billion in the Canada skills and transition strategy. Our aim in all of this is to improve employment insurance in areas where the need is the greatest.

One of the things that came up time and time again through our consultations was that EI benefits needed to be lengthened in order to provide greater assistance to those facing longer-term challenges in looking for work. That is why through our economic action plan, for the next two years, we will make available nationally the five weeks of extended EI benefits that have been previously available through a pilot project only, in regions with the highest unemployment. The government will also increase the maximum duration of benefits to 50 weeks, up from 45.

Some 400,000 Canadians could benefit from these changes. This measure will provide financial support for a longer period to unemployed Canadians who would otherwise have exhausted their benefits. This means unemployed workers will have more time to seek employment while receiving EI.

This is very important and a point I cannot stress enough. Exhaustion of EI benefits is difficult on any family. Canadians who are unemployed for extended periods will have more time to find work under our plan.

It is putting the dollars to use where they are needed the most. This approach better suits the needs of Canadians than simply eliminating the two week waiting period of which the member speaks. There are several reasons for this.

First, it is important to look at why there is a two week waiting period in the first place. The two week waiting period serves to ensure that EI resources are focused on workers dealing with significant gaps in employment. In fact, if we eliminated the two week waiting period, claims would not be processed any more quickly. The additional processing required by eliminating the waiting period would generate a significant increase in volumes associated with short spells of unemployment. This would put further pressure on service standards and processing resources.

These additional strains and pressures on the system could lead to even longer wait times for people to have their claims processed.

On these points, we are backed up by David Dodge, the former governor of the Bank of Canada. On December 18, Mr. Dodge appeared on the CTV Newsnet program, Mike Duffy Live. Some of us still remember that program and many have watched it.

When asked whether eliminating the two week waiting period for EI was an expenditure worth making, Mr. Dodge responded unequivocally. He said, “The answer is no. That would be probably the worst waste of money we could make...because there's a lot of churn in the labour market, just normal churn”. Mr. Dodge also said, “that two weeks is there for a very good reason...the real issue is that some of these people are going to be off work for a rather long period of time”.

Therefore, that is where we are directing our efforts. I think what the former governor of the Bank of Canada was trying to say at that time was those who were off for longer periods of time were the ones who were in more desperate straits and needed the help to a greater extent.

The fact is that during these uncertain times, some people may be off work for longer periods. That is why EI help needs to be targeted in such a fashion, so they will receive that help when they need it.

It is worth noting that the Bloc's proposal to eliminate the two week wait period would not provide any additional assistance to workers who exhaust their EI benefits. For those who exhaust all of their EI benefits, eliminating the two week period would simply mean their benefits would start two weeks earlier but they would also end two weeks earlier.

We believe that providing EI claimants with five additional weeks of benefit is better targeted than the two weeks the opposition is proposing. Five weeks is better than two weeks. I wonder if the member would not agree with me that is a significant improvement and an advancement to the program. This is better targeted help. This is smarter help. It is help that is needed more.

Providing an additional five weeks of benefits would go further in helping those who need our help the most, those who are having difficulty finding work over the long term. They will derive greater benefit from having five additional weeks of benefits as opposed to only getting two weeks of additional benefits at the beginning of their EI claim period.

Looking at the bigger picture, our economic action plan focuses not only on the benefit side of EI, but equally on the importance of training. We are increasing funding for training delivered through the employment insurance program by $1 billion over two years.

This large investment will help to respond to the higher demand for labour market programs and training owing to increased unemployment. As a result, thousands more EI eligible clients could receive training and be better prepared when times improve.

In this regard, I would like to highlight something else David Dodge said, “I think the Prime Minister's right, that we do have to concentrate on improving the skills of people, and with that improvement in skills...we will find opportunities going forward”.

We are making an investment into the future. We are making an investment in people so when the economic circumstances change they will be ready to meet the challenges.

I agree with Mr. Dodge. We do need to concentrate on improving skills and training, and that is what we are doing.

Our plan also takes into consideration the needs of long-tenured workers who have been laid off. To help these long-tenured workers change occupations or sectors, we are introducing a pilot project that would extend EI benefits to them so they could pursue longer term training.

We are also proposing that workers with severance or other separation payments be eligible for earlier access to EI benefits if they use some or all of their payments to purchase skills upgrading or training.

With our plan, not only are we proposing to extend benefits, we are also proposing to freeze EI premium rates for 2010 at the same rate as 2009. This will provide a projected $4.5 billion stimulus over two years.

This stimulus means more money for employers to keep or hire employees. This means more money in the pockets of hardworking Canadians.

Through our new strategic training and transition fund, we are also providing significant funds to help meet the different training and support needs of workers who do not qualify for EI. This will include those who have been out of work for a prolonged period of time. Up to 50,000 individuals are expected to benefit from this training and other measures.

Rather than looking at just one aspect of EI and tinkering around the edges, we have looked at the economic and labour market as a whole. We have put forward EI measures that are targeted to the needs of Canadians. Our actions are forward-looking and better suited to help those who need it most.

Members of the Liberal opposition should be reminded that their former Liberal minister of human resources, Jane Stewart, had this to say about the two week waiting period, “the two week waiting period is like a deductible in an insurance program. It is there for a purpose”.

In the end we have to look at the entire package. The entire package not only helps those who are on EI for a longer period of time, but it allows them to upgrade their skills and retrain. We have to look at the broad picture by investing billions of dollars into skills training and retraining.

We are looking at the big picture. We cannot take just one segment of it like the bill proposes to do. We have to look at it globally, which we have done. I think Canadians will find it acceptable.

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 5:55 p.m.


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Liberal

Rodger Cuzner Liberal Cape Breton—Canso, NS

Mr. Speaker, I am pleased to join in this debate.

On behalf of my colleagues in the Liberal Party, I commend the member for Dartmouth—Cole Harbour, our critic for HRDC, who does a tremendous job on the EI file and on his whole critic portfolio. This is an issue and a subject on which he has done a great deal of work. I have a great deal of respect for all he has accomplished.

On this particular issue of the two week waiting period, the position of our critic and the position of our party will be to support this bill as we did in the last Parliament. A similar bill was brought forward in the last Parliament and we supported that as well.

I and many Canadians are very concerned with what has gone on in the economy of late with 129,000 jobs being lost just in the month of January. Many people are facing the great dilemma of whether to fill their oil tank, their prescriptions or their fridge.

I am concerned when I hear the parliamentary secretary state that David Dodge figures this is the best way to do this. I bet it has been quite some time since David Dodge had to walk in the back door, look at his wife, who is trying to feed four kids, and wonder where the next quart of milk is coming from. It is something he probably has not had to experience.

The unemployed are the most vulnerable and they need help and they need it now.

In reference to the five weeks, this is something the Minister of Human Resources and Skills Development has come back with in many of her answers to the question about the extension. The reality is that the five weeks applies only to those who quality for maximum benefits. If people qualify for 30 weeks they do not get 35 weeks. If they qualify for 32 weeks they do not get 37 weeks. People need to qualify for maximum benefits in order to qualify for those five weeks. This is something the government has been stating but we have not received clarification on this. I would hope the government takes the proper steps to ensure those five weeks are extended to all claimants through these very difficult and trying times.

The reference was made to a former minister, Jane Stewart, who handled the HRDC file a number of years back in past Liberal governments, and to the changes that were made through 1990s. We know that the EI system had been bankrupt coming into the early 1990s. We know that the Auditor General did not want EI revenues and the EI program run through an arm's length or a separate account but through general accounts. However, with inflation and an unemployment rate at 12% through the Mulroney days, our economy was in turmoil.

In order to salvage the EI program in the mid-1990, unprecedented steps were taken. Maybe those steps were necessary. I know the government likes to refer back and say that the Liberals made these cuts when they were in control but it forgets the second part of that where it was saying that the cuts did not go deep enough, that the cuts should have been greater.

The Liberals did make cuts and some of the changes that were made in the mid-1990s did alter the system and put disincentives in the system that hurt many people. I think we could probably get consensus on that on this side of the chamber.

As unemployment came down, more people were working and paying into the fund and with fewer people drawing out we all know the success story that was the EI surplus.

Changes were made in mid-2000, 2003 and 2004, including the doing away of the divisor rule and a number of changes that took some disincentives out. We know that every change in the system has a cost and that there is an accounting for every change and adaptation that is made. Coming into the debate late, I am not sure what the costing is on this or whether or not my colleague had put that forward.

Members of our caucus have put forward a number of pieces of EI legislation through private members' bills. My colleague for Sydney—Victoria has a private members' bill on extending sick benefits to those receiving benefits who have catastrophic health concerns. If one is battling a catastrophic disease or receiving cancer treatment, there should be an extension of health benefits paid through EI because we want those people to be totally focused on getting healthy.

One of the greatest concerns about any change in the system now is with what the government has done in establishing the arm's length agency to administer it. As we go into these trying times, we do not know if it will be able to stand up to a recession. We hope it will. When witnesses appeared before the HRDC committee, the actuaries were very concerned about the $2 billion limit that was put on the establishment of this arm's length agency. They thought the figure should have been closer to $10 billion or $12 billion. I guess we will see. If we continue to bleed the jobs that we are losing of late in this economy, the system will certainly be tested.

I think that those who lose their jobs are the most vulnerable people in our society. They should not go without a paycheque for a week or two weeks. We see that the increase in the time to turn around those benefits has increased over the last two years. I believe it is wise. I commend the member for putting this bill forward and I look forward to supporting this when it comes to the floor for a vote.

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 6:05 p.m.


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NDP

Carol Hughes NDP Algoma—Manitoulin—Kapuskasing, ON

Madam Speaker, I am glad to join in the debate tonight on an issue that means quite a bit to not only the people I represent in Algoma—Manitoulin—Kapuskasing, but to people across Canada.

The bill would put in place something for which we, in the NDP, have been calling for quite some time: to end the two week waiting period before a claimant can receive employment insurance benefits.

The bill closely resembles the bill of my colleague from Nickel Belt and is a component of my own private member's bill that we will debate here in the House in the coming weeks.

As I stated, the bill is important to the people in my riding but is even more important to Canadians who will be forced to apply for employment insurance, which is becoming all too common these days. When workers lose their jobs, are laid off or watch as the company they have been employed by dissolve before their eyes, the last thing they need is a gap in their income.

Unfortunately, that is about the first thing they get. They need to wait for two weeks before they are eligible to receive a stipend from employment insurance, the same insurance they have paid into in good faith for the term of their employment. It is an unnecessary hardship. It is a hardship that is being thrust upon people at the worst time when they have enough to worry about.

To hear our Minister of Human Resources and Skills Development talk about these people, it is not difficult to spot the contempt and suspicion she has for the unemployed. We must remember that she thinks it is very lucrative to be on EI. I think that is a shame. To her, people on EI are lazy or even look forward to receiving benefits. She does not recognize that it is a benefit that they paid for in good times with the expectation that they would be able to count on it in lean times.

Even for those lucky enough to quality for the benefits, they are forced to wait. They are forced to exhaust severances and dip into hard-earned savings while they wait.

It is very telling. It shows the level of respect the Conservatives have for the unemployed. It shows the lack of compassion they have for the unemployed and it shows the shortsightedness they suffer from as well, because there is no better short term economic stimulus available to the government than employment insurance.

This is not something I am wishing were true or just making up. It is a fact. Employment insurance has the single best multiplier effect out of the stimulus tools available to the government. It has a multiplier of $1.64 for every dollar the government spends on it. Therefore, basically, when people receive EI, they are not the ones taking big vacations. They are out spending the money in their communities. Hence, the economic stimulus is even greater. It has the best bang for the buck.

It is certainly better than tax cuts that flow directly into savings accounts in most cases. It is even better than infrastructure spending because it flows directly to the places where the economy is doing its worst and helps to shore up those local economies. It is not bogged down with red tape and has an established and reliable delivery system.

People on EI spend their EI cheques within two weeks of receiving it. Best of all, it has already been paid for by the workers of this country. It really does not cost the government anything. It just needs to lose its dependency on using the premiums it collects to fund other government expenditures.

It is extremely important that people do not need to wait two weeks for their cheques at the beginning. The problem is that at the end of the day there are less people who qualify for EI so the two weeks would actually benefit these people.

The government already knows all of this and is choosing to ignore it. It was told as much by Ian Lee, the director of the MBA program at the Sprott School of Business back in the prebudget consultations. It just chose to ignore it. The Conservatives like the program the way it is.

For the present government and the Liberal government that preceded it, employment insurance has been the cash cow that funds their real priorities, priorities like corporate tax breaks and dirty sponsorship deals, things that really matter to these hard right, entitled politicians.

We have been told that over $54 billion have been built up in the employment insurance fund. The fund has been building up because over the last 15 years successive governments implemented deep cuts to benefits and changed the ineligibility rules.

That money, which was meant to be used as an emergency fund for the workers, has been basically stolen from them and used for all kinds of expenditures.

Statistics show that in 2006 and 2007 fewer than four in ten unemployed workers were able to access benefits. Is that not a shame? The impact on qualification was even greater for women. In 1996, the maximum weekly benefit was $604. Now the maximum is only $447, with the average person getting about $335 a week.

These trends go the wrong way. We need to reverse them. If people do not have access to their EI funds when they need them the most, where do they go? They go on welfare. I think that is a shame.

We can see that a lot of money should be available and there should be no reason for a person to have to endure a waiting period at all. In a time when we are witnessing our economy shedding jobs at an alarming rate, there is no way people are collecting EI because they are lazy or because it is so lucrative that there is no point in looking for another job.

In many cases, especially in a riding such as mine, there are no other jobs for these people. They have a choice to make. They can tough it out and wait for the mills and mines to get back to work, which is something the government does not seem to want to help very much, or they can leave. Sadly, we are witnessing more and more departures.

White River, a community in my constituency, is shrinking at an alarming rate. Is that what we want for our smaller, more vulnerable communities? Does everyone have to abandon their rural roots and take low-paying service industry jobs in the bigger cities? I do not think that has to be the case. I do not believe we have been elected just to sit on our hands and watch that happen.

There are things we can do and mechanisms we can trip to try to stop the bleeding. Reducing the waiting period for EI is an important one that we must continue to fight for.

We are not the only ones calling for these changes. The Bloc recognizes that the two week waiting period should be eliminated and that other changes should be made to employment insurance. The Canadian Labour Congress, the Fédération des travailleurs et travailleuses du Québec, the Confédération des syndicats nationaux, the Centrale des syndicats du Québec, the Conseil national des chômeurs and unemployed workers themselves are calling for these changes.

They see the benefit of protecting our workers and their communities now, immediately. They see the benefit in keeping our unemployed workers in their communities, allowing stores to stay open and rent and mortgages to be paid. They see the real difference a few weeks of EI benefits can make in earlier access.

These are exceptional times. Exceptional times deserve exceptional responses from governments, but we are not getting that from our current government. It is out to make the hard times harder. Shame on it.

It has tacked on a few weeks of EI, and it would seem that is it. That is all it is going to give to the workers of our country. It has not made it more accessible. It has not made it more substantial. It has not done much, and that is patently wrong. The government has all kinds of money for tax breaks for corporations--money that comes in part out of the EI fund, as we have seen--but when it comes time for the unemployed and their real and pressing needs, sorry, the cupboard is bare. I cannot accept that, and neither can my colleagues.

We will be standing to support this motion when it comes to a vote, and I can only hope that when the time comes, the government will recognize the need for this measure and support it as well. It is extremely important that people have access to their EI as soon as possible.

I can say that the NDP will be supporting this motion. The Bloc will be supporting it because of course it is a Bloc motion. I can only hope that the Liberals and Conservatives can support it as well.

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 6:15 p.m.


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Bloc

Josée Beaudin Bloc Saint-Lambert, QC

Madam Speaker, I would like to begin by thanking my colleague, the member for Brome—Missisquoi, for introducing Bill C-241.

This is the sort of bill that would provide real, invaluable assistance to tens of thousands of workers who have lost their jobs or unfortunately will lose them because of the serious economic crisis we are going through.

Over the years, workers who lose their jobs have suffered countless injustices.

Do we need to remind this House that the percentage of unemployed workers who receive employment insurance has shrunk from 84% to 46% in the past 20 years?

Do we need to remind this House that Liberal and Conservative governments have siphoned off more than $57 billion belonging to workers? And that this money will likely never be returned?

In light of this, the waiting period only adds insult to injury for the unemployed, at a time when what they really need is a helping hand from the government.

What exactly is the purpose of the waiting period?

It is very simple: this is nothing more and nothing less than a way of punishing people for losing their jobs. Let us keep in mind that in order to draw EI benefits, a person has to have fallen victim—and I emphasize that word—to a layoff that has nothing to do with failure to perform, and even less to do with voluntary departure. These are people who, through no fault of their own, have found themselves without a job between one day and the next.

So what exactly does the Minister of Human Resources and Skills Development want to punish them for?

Another aberration, and again according to the minister, the reason for the waiting period is that this is supposedly an insurance, like other kinds of insurance, and all commercial insurance does include a deductible before one gets any pay-out.

I have never heard such an unfortunate expression of cynicism in this House. In comparing the state to a business, this government is demonstrating what little empathy it has for the less well off members of society. By denying its social role, by virtue of which it is supposed to redistribute wealth rather than contributing to the inequalities, it is demonstrating a doctrinaire and ideological vision that is totally inappropriate.

But let me get back to the bill from my Bloc Québécois colleague who, on the other hand, is demonstrating a real understanding of the difficult situation in which workers who lose their jobs find themselves.

It must be understood that it is not a matter of adding two weeks of benefits, but merely of changing the start date of payments, so that unemployed workers are not in an untenable situation for the first two weeks.

According to Human Resources and Skills Development estimates, such a measure would cost some $900 million. Nine hundred million dollars is far less than the $57 billion confiscated—to avoid using unparliamentary language—from working men and women.

So $900 million would be plowed back into the Canadian economy, as the government itself admits in its assessment of the economic spinoffs from EI-related measures in the last budget.

In this period of recession, that means $900 million which would benefit not only the unemployed workers but also the businesses where they would spend the money they received.

When a person loses his job, and his sole source of income is EI benefits, it is rather a rarity for his first reflex to be investment, contrary to what the Prime Minister implied in a CBC interview during the last campaign.

What interpretation can one put on the scandalous comment he made at that time that Canadians should look on the bright side and take advantage of the weakness of the stock market to buy some stocks?

This kind of behaviour unworthy of a Prime Minister shows us just how profoundly disconnected this Conservative government is from the harsh reality that this crisis has created for hundreds of thousands of workers and their families.

Bill C-241 would provide some relief. This measure, simple yet concrete, efficient and direct, has been called for by dozens of groups representing workers' interests and by unions as well.

This is a perfect opportunity for the government to show goodwill and openness with regard to one of the greatest injustices ever committed by this government.

I invite the members opposite to give us their support so that this bill can be passed as quickly as possible.

The sooner this bill receives royal assent, the sooner the unemployed can receive the benefits to which they are entitled, those they have been paying into week after week, month after month, year after year.

When they pay their premiums, they do not skip two weeks. They cannot decide to stop paying for two weeks of the year. They have to pay every week.

Why should the government force them to wait two weeks before they can access their money?

And I must emphasize the word “their”, because apparently, previous governments, like this one, did not seem to understand this nuance, although it is fundamental, between the government's money and that of unemployed workers.

Yet government members fully understand, for instance, the difference between money they receive as salary and money paid to them by the House of Commons to carry out their responsibilities as MPs, for example. These are two different accounts, completely separate, that have nothing to do with each other, just as public accounts have nothing to do with the money paid by contributors to the system.

Fortunately, the government listened to the Bloc Québécois, which has always stood up to defend workers. Yes, it is thanks to the Bloc Québécois that the Conservatives agreed to separate those two accounts. It is thanks to the hard work of my colleagues who tirelessly denounced the deficiencies in the system.

I would like to talk about the contributors' money for a moment. It is truly appalling that in 2006, barely 64% of those who paid into the system were eligible for employment insurance. That is less than two thirds. And we are talking about workers who, I repeat, pay into the system week after week. The fact that the system is so inaccessible is positively scandalous, since, although they finally agreed to separate the employment insurance account from the federal treasury after years of pressure, they have definitely not done anything to improve the pitiful coverage provided to workers.

But, once again, as I was saying earlier, the Bloc Québécois was there to throw a lifeline to this government, which is sinking further every day into the depths of indifference. However, as a last resort, we especially want to throw a lifeline to the workers, and let us hope they do not have to wait two weeks for it.

In closing, I would like to congratulate my hon. Bloc Québécois colleague on his foresight and his efforts to really do something for unemployed workers.

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 6:20 p.m.


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Conservative

Brent Rathgeber Conservative Edmonton—St. Albert, AB

Madam Speaker, it is certainly a pleasure for me to rise and speak in opposition to Bill C-241 proposed by the hon. member for Brome—Missisquoi.

I can assure my hon. colleague and all members of the House that his concerns for the plight of unemployed workers are shared by all members of the government, including this member. In fact, I am sure there is not a single member in the House from whatever party who is not equally concerned with the needs of laid off workers and their families. Each and every one of us has stories of hardship in our own riding. All members of the House are determined to do whatever we can to help our constituents.

As the Parliamentary Secretary to the Minister of Human Resources previously said during this debate, one of the things that came up constantly through the government's consultations was that EI benefits needed to be lengthened in order to provide greater assistance to those facing long-term challenges in looking for work. That is why the government's economic action plan has provided that for the next two years we will make available nationally the five weeks of extended EI benefits that had previously been available through a pilot project only in regions with the highest unemployment. The government will also increase the maximum duration of benefits to 50 weeks, up from the current 45.

As a result, 400,000 Canadians could benefit from these changes. These measures will provide financial support for a longer period of time to unemployed Canadians who would otherwise have exhausted their benefits. This means unemployed workers will have more time to seek employment while still receiving benefits from the employment insurance mechanism.

It is my opinion, and I believe the opinion of members on this side of the House, that this approach better suits the needs of Canadians than simply eliminating the two week waiting period. The fact is that during these uncertain times many people will be off work for longer periods of time. That is where our EI help needs to be targeted and that is where this government has targeted.

To address the most pressing needs of workers today Canada's economic action plan is investing $8.3 billion for the Canada skills and transition strategy. To ensure that more Canadians could access the training and skills upgrading they need to land the jobs of the future, our government has invested unprecedented amounts in training programs.

These investments will help 160,000 people, including long tenured and older workers, get retrained to find a new job and put food on the table for their families. The government will also help those who normally would not qualify for employment insurance access to training they need to re-enter the workforce.

Ensuring that our country has the best educated, most skilled and most flexible workforce in the world is vital for our long-term economic recovery. Supporting the development and training of unemployed workers will keep the Canadian economy growing and our communities prospering. Equally important, with the right training, people can get good jobs and have better opportunities for themselves, their families and their future.

We listened to the concerns of many employers and also employees. This is why the government is freezing EI premium rates for 2010 at $1.73 per $100. This is the same rate as 2009 and is projected to provide $4.5 billion in economic stimulus.

To help companies and employees adapt to the current economic downturn we are also extending the duration of work sharing agreements by 14 weeks to a maximum of 52 weeks. This will enable Canadians to continue working while companies adjust to a temporary slowdown and recover.

To complement this measure we are also proposing to increase access to work sharing agreements through greater flexibility in the qualifying criteria. This measure will help many Canadians stay working through these uncertain economic times.

The government has weighed the options and decided to focus our resources on helping workers and families that need help the most. Our actions will provide more support to Canadians for a longer period of time, something that this bill will not do.

It is clear that the government has listened and responded to the needs of Canadian workers and their employers to enable them to get through this rough economic patch as quickly as possible.

Like all elements of the government's economic action plan, these improvements in investments will help Canadians weather the current economic downturn and come out stronger than ever.

Therefore, with all due respect for the good intentions that this bill attempts to portray, I urge all members of the House to defeat this bill. Instead, I call on all parties to work together with the government to advance Canada's economic action plan, the real long-term solution to our current challenges.

In closing, Canada's economic action plan will help more Canadians for a longer period of time with much more lasting benefit. I think that deserves wholehearted support by all members of this honourable House.

Employment Insurance ActPrivate Members' Business

February 26th, 2009 / 6:30 p.m.


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NDP

The Acting Speaker NDP Denise Savoie

I thought we were at the adjournment debate, but there are two minutes left.

The hon. member for Gatineau has two minutes to speak.