An Act to amend the Employment Insurance Act and to increase benefits

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

Sponsor

Diane Finley  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

This enactment amends the Employment Insurance Act until September 11, 2010 to increase the maximum number of weeks for which benefits may be paid to certain claimants. It also increases the maximum number of weeks for which benefits may be paid to certain claimants not in Canada.

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

Nov. 3, 2009 Passed That the Bill be now read a third time and do pass.
Nov. 2, 2009 Passed That Bill C-50, An Act to amend the Employment Insurance Act and to increase benefits, {as amended}, be concurred in at report stage [with a further amendment/with further amendments] .
Nov. 2, 2009 Passed That Bill C-50, in Clause 1, be amended by replacing lines 9 to 25 on page 1 with the following: “( a) the number of weeks of benefits set out in the table in Schedule I that applies in respect of a claimant is increased as a result of the application of any of subsections 12(2.1) to (2.4), in which case (i) in respect of a benefit period established for the claimant on or after January 4, 2009 that has not ended on the day on which this subsection is deemed to have come into force, the length of the claimant’s benefit period is increased by the number of weeks by which the number of weeks of benefits set out in the table in Schedule I that applies in respect of the claimant is increased as a result of the application of any of subsections 12(2.1) to (2.4), and (ii) in respect of a benefit period established for the claimant during the period that begins on the day on which this subsection is deemed to have come into force and ends on September 11, 2010, if the maximum number of weeks during which benefits may be paid to the claimant under subsection 12(2) is equal to or greater than 51 weeks as a result of the application of any of subsections 12(2.1) to (2.4), the length of the claimant’s benefit period is that maximum number of weeks increased by two weeks; or ( b) the number of weeks of benefits set out in Schedule 10 to the Budget Implementation Act, 2009 that applies in respect of a claimant is increased as a result of the application of any of sections 3 to 6 of An Act to amend the Employment Insurance Act and to increase benefits, introduced in the second session of the fortieth Parliament as Bill C-50, in which case(i) in respect of a benefit period established for the claimant on or after January 4, 2009 that has not ended on the day on which this subsection is deemed to have come into force, the length of the claimant’s benefit period is increased by the number of weeks by which the number of weeks of benefits set out in that Schedule 10 that applies in respect of the claimant is increased as a result of the application of any of those sections 3 to 6, and (ii) in respect of a benefit period established for the claimant during the period that begins on the day on which this subsection is deemed to have come into force and ends on September 11, 2010, if the maximum number of weeks during which benefits may be paid to the claimant under that Schedule 10 is equal to or greater than 51 weeks as a result of the application of any of those sections 3 to 6, the length of the claimant’s benefit period is that maximum number of weeks increased by two weeks.”
Sept. 29, 2009 Passed 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.

Michael Savage Liberal Dartmouth—Cole Harbour, NS

Thank you, Chair.

I don't have any debate, but I have a few questions.

I appreciate all of you taking the time, especially Ms. Ego—you've taken time away from your new one.

All parties so far have indicated general support for this bill. The idea of extending EI benefits to the self-employed makes sense. We've had some questions. I'm a little uncertain about the costing of this program. It's been very difficult to get any information out of the government. The minister indicates it's a voluntary program. There are many voluntary programs, but you still plug in numbers and get an estimate. The reason it's important is that the calculation of the premium combined with the uptake of the program has a big impact on whether it's going to be as self-sustaining as we and the minister are hoping.

That might cost money. Ms. Pohlmann mentioned this money isn't coming out of the consolidated revenue fund of the Government of Canada; it's not coming out of general revenues, it's coming out of the EI fund that has been designated as going over to this new EI financing board. It's only $2 billion, and we're probably well over that now, because we've been going through a difficult economic time. There's already a draw on that. An extra five weeks of regular EI benefits was indicated for members. That five weeks was coming out of general revenue, but Bill C-50, which added an extra five to 20 weeks, will come out of the EI fund, and so will this.

After discussions with the officials the other day, they have given us a brief answer here today. If I read it correctly, it indicates that in the first year the fund will have a surplus of $48 million, which makes sense. You have to pay into it for 12 months before you can join. In the first year there will be a net surplus in the fund. By 2014 there will be a $78 million shortfall, if I'm reading this correctly. It could be more, it could be less, but it will have to come from the EI fund, which is a bit of a problem, because it's already very tight.

Ms. Pohlmann and perhaps Ms. Presseault, how much of a concern is that?

Maria Minna Liberal Beaches—East York, ON

I'm sorry, but I have only five minutes compared to the others.

I asked, when we were discussing Bill C-50, for a copy of the gender analysis. I didn't get it.

May I ask, please, Madam Chair, for this one?

Could you send us a copy of the gender analysis that was done on this bill?

Michael Savage Liberal Dartmouth—Cole Harbour, NS

But the chief actuary has given assurance to your numbers that this will at most be a $70-million cost to the EI fund. The reason it's important is that we have people who pay EI and have no choice but to do so—employers and employees.

There's a $2 billion fund in this new EI financing board, which is not a lot. The Canadian council of actuaries told us last year that it should be $10 billion to $15 billion. So there's already a draw on this and it seems inevitable that there are going to be rate increases for employers and employees as a result of Bill C-50. It appears there'll be further rate increases required because of Bill C-56, if there's a cost to this program of $70 million.

Diane Finley Conservative Haldimand—Norfolk, ON

Thank you.

Our Conservative government knows that families are the foundation of this great country. And now self-employed Canadians will no longer have to choose between their family and work responsibilities. Like all workers, self-employed Canadians facing important life events need peace of mind regarding their financial security. This bill provides them with just that.

Madam Chair, let me briefly explain how the system would work.

Overall, special benefits for the self-employed would mirror those available to salaried employees under the EI system. Under the proposed legislation, self-employed Canadians who opt into the program would pay the same EI premium rate as salaried employees. For 2010, that premium rate would be $1.73 per $100 of insurable earnings. They would not be required to pay the employer portion of premiums as they would not have access to EI regular benefits. They would face similar benefit duration periods, income replacement rates, maximum insurable earnings, treatment of earnings, and waiting periods.

However, there would be some differences. Those who choose to take advantage of special benefits would be required to opt into the program at least one year prior to claiming benefits. They would also be responsible for making premium payments for the tax year in which they apply to the program. For example, someone registering in May 2010 would be able to claim benefits on May 1, 2011.

However, we are providing some room for the first year. Those who apply before April 1, 2010, would be able to collect benefits as early as January 1, 2011.

To access EI special benefits, self-employed individuals would need to earn a minimum of $6,000 during the preceding calendar year. As the self-employed do not report hours of work, this number has been arrived at by converting 600 hours on an earnings basis using a representative minimum wage of $10 an hour, since 600 hours is the number of hours required by salaried workers to access existing EI special benefits.

It's important to note that the self-employed could opt out of the program as long as they've never claimed benefits. If they've claimed benefits, however, they would need to continue to contribute on self-employed earnings for as long as they're self-employed. This treats the self-employed in the same way that the regular EI program treats paid employees. We think this is fair.

In the province of Quebec, our Conservative government is offering the self-employed that ability to take advantage of the sickness and compassionate care benefits for the first time in history. Currently, the only choice Quebeckers have if they need to take care of a gravely ill relative, or if they fall ill themselves, is private insurance which can be very expensive.

Our government is offering peace of mind with a more affordable option. This bill takes into account that, in Quebec, self-employed residents already have access to maternity and parental benefits through the Quebec Parental Insurance Plan.

Rates in Quebec have been adjusted to take into account the provincial maternity and parental benefit plan. Self-employed workers in Quebec who choose to take advantage of the program would pay the same EI premiums as other employees in the province. The 2010 EI premium rate in Quebec will be $1.36 per $100 of insurable earnings.

I want to reinforce that the decision to opt into the EI program is entirely voluntary. There is no obligation for the self-employed to take advantage of these new benefits.

This bill is yet another example of how our government is providing support and choice to Canadian families. Our government believes that self-employed Canadians should not have to choose between their families and their business responsibilities, and this bill will have a significant impact on their lives and their families.

Don't just take it from me: the response to this bill has been overwhelmingly positive. The Grain Growers of Canada, the Canadian Federation of Independent Business, the Coalition of BC Businesses, the Certified General Accountants Association of Canada, the Alliance of Canadian Cinema, Television and Radio Artists, and the Independent Contractors and Businesses Association are just some examples of organizations that represent self-employed Canadians and that support this important bill.

This is one of the most significant enhancements to the EI program in a decade. It is part of a series of timely enhancements that we've already made to ensure that the employment insurance program remains responsive to the needs of Canadians.

Our economic action plan is geared towards helping Canadian workers and their families get through this global economic downturn. We're providing a timely and unprecedented investment of $8.3 billion to strengthen EI benefits and enhance the availability of training, including outside EI.

In closing, Madam Chair, I'd like to thank the committee for its work on our last bill, Bill C-50, which recently passed. It provides between five and 20 additional weeks of EI to long-tenured workers who've worked hard and paid premiums for years, but who now need a hand up.

I urge all members of this committee to support self-employed Canadians and their families by supporting Bill C-56.

I'd now be pleased to answer your questions. Merci.

Ed Komarnicki Conservative Souris—Moose Mountain, SK

I agree with Mr. Vellacott.

In the past when we did Bill C-50, it was with the immigration committee, but I subbed in to ask questions. It becomes more complex and difficult from a process point of view to have two committees, two chairs, whatever. We know that we have an allotted time for questions. We go by rounds of seven minutes and then rounds of five minutes.

There are enough members and numbers here where people from the status of women could be subbed in to ask questions on the first round or second round in a simple fashion through the committee we now have, with one chair. It's less complicated. It's straightforward. You can achieve the same thing without complicating the matter further.

So we would be opposed to the motion but not opposed to status of women people being subbed in to ask questions in the first round or second round during our hearing. It would be done in a normal fashion with the normal rules in this committee. And this committee would be the lead.

November 17th, 2009 / 4:40 p.m.


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Policy Analyst, Government and Regulatory Affairs, Building and Construction Trades Department, AFL-CIO, Canadian Office

Christopher Smillie

If that were proposed, if that were in the bucket, so to speak, we would definitely be supportive of such an initiative. I'd say that right now there are roughly 200,000 apprentices who are sort of in the system. Anything we can do to make sure that the transition between the workplace and school is as seamless as possible would be of assistance.

I appeared at another committee discussing Bill C-50, regarding the extension of employment insurance benefits, and at a broader level, we made sure that apprentices were not excluded when they do go to school. We didn't get the full monty, so to speak, on the waiting period, but we did make sure that under Bill C-50 apprentices aren't penalized for going to trade school.

Would we support it? Yes. Is it something that we can definitely work towards? Absolutely. I'd be willing to bring you industry information on that.

Economic Recovery Act (Stimulus)Government Orders

November 16th, 2009 / 1:05 p.m.


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NDP

Thomas Mulcair NDP Outremont, QC

Mr. Speaker, I thank my colleague for his question because it is an important one.

He is right when he says that a sector of the economy that has been affected by successive layoffs and where workers needed to draw EI benefits over the years does not necessarily benefit from the extension that has just been given. However, one cannot say that Quebec workers will not benefit as much as other Canadians from the improvements included in Bill C-50. Tens of thousands of Quebec families will benefit from the bill and that is the reason why I was so disappointed to see that the Bloc voted against the measure. I really do not understand why the Bloc did that. Earlier, I alluded to the ideological approach of the Conservatives. Sometimes, the Bloc also has an ideological approach to issues.

As for Bill C-56, it has already been shown that the contributions will vary from one jurisdiction to the other. Since Quebec already pays, the contributions asked from Quebec workers will be lower than in the other provinces. I can illustrate that with the example of daycare centres that have received subsidies from the federal government. Since Quebec already had its system in place, the money was simply transferred to the province. On that issue, we succeeded.

As for the member's last question, I will say that, yes, we must once again make major reforms in the EI system in the best interest of protecting the entire population.

Economic Recovery Act (Stimulus)Government Orders

November 16th, 2009 / 1:05 p.m.


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Bloc

Guy André Bloc Berthier—Maskinongé, QC

Mr. Speaker, I would like to ask a question of our colleague from the NDP.

As we know, Bill C-50 does not meet the needs of the forestry workers in Quebec. They have told us so. The bill was designed more for automobile workers in Ontario. We are not against that, but we wanted the government to support the forestry workers as well. Bill C-56 does not help self-employed workers in Quebec at all, since they already have access to a parental leave insurance plan.

My question is quite simple. Does the member not agree that the patchwork reform of the employment insurance plan, proposed by the Conservative Party in Bill C-50, is of no help to workers in Quebec?

Second ReadingEmployment Insurance ActPrivate Members' Business

November 16th, 2009 / 11:30 a.m.


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Bloc

Robert Vincent Bloc Shefford, QC

Mr. Speaker, I am pleased to speak today.

The excellent bill introduced by my colleague from Berthier—Maskinongé is designed to fill a major gap in the legislation that hurts workers. The bill seeks to benefit people who have worked for 15 or 20 years in a business where a labour dispute occurs. It may be that the employer has locked out the employees or that the union has decided to go on strike. It is impossible to know how long a dispute might last, but one thing is certain: conflicts at the federal level last the longest. Why? Because there is still no anti-scab legislation. The Bloc Québécois has tried for years to have such legislation passed so that no one can replace workers who go on strike. It is always easier for the employer to find managers to replace workers during a labour dispute, and that is why disputes are becoming longer and longer.

My colleague opposite said that this was not important because less than 1% of the population was affected. I would like him to go into the ridings and tell those people that this is not important, that there are not enough of them and that they will not get anything, even if they have paid employment insurance premiums for 20 years. This is the big problem this bill seeks to address. If someone has worked for 52 weeks before a dispute, he or she would, in theory, be entitled to another 52 weeks of employment insurance benefits.

It is impossible to know how long a dispute will last. If it goes on for 52 weeks and the employer decides the following week to close the business because of a lockout or for some other reason, someone who has worked for 20 years will not receive any employment insurance benefits. Have the members opposite thought about that? Someone who has worked for 20 years will not be entitled to EI because he or she has been on strike or locked out. That makes no sense.

The champions of repression on the other side of the House are doing everything they can to send people to prison for any reason they see fit. Inmates are luckier than honest workers. An inmate is entitled to a qualifying period of 104 weeks, twice as much time as an honest worker. I cannot understand how the Conservatives can change their tune when it comes to workers. Why does the government not give workers the same 104-week qualifying period as inmates? It makes no sense.

I hope that anyone listening to us this morning will be able to see that this makes no sense. The Conservatives keep introducing bills to impose two-year prison sentences for people who steal a car or what have you. But when it comes to workers, the government says they are not important, and that they represent less than 1% of the population. The Conservatives need to stop making publicity out of the big cheques they sign. With that money alone, they could pay workers after the 53rd week.

They should start thinking about why their spending with taxpayers' and workers' money is systematically out of control, and why they promote themselves on the backs of these people. A worker covered by a collective agreement has one opportunity to stand up for himself.

He cannot do this while the collective agreement is in effect; only when the agreement has expired. The only point at which a worker can tell his employer that he will go without a raise, will go without pay, is during the collective bargaining process. That is the only time he can stand up for himself. He has the right to tell his boss that he would rather go without pay, because he does not agree with the new collective agreement; he can walk out and assert his rights. This individual is using the right to strike given him by the province. He is using that right. But if the strike lasts more than 52 weeks, he will not be entitled to anything, as I have already mentioned. That makes no sense.

When it comes to employment insurance, there are a lot of things the Conservatives do that do not make sense. Last week, we spoke about Bill C-50, which provides an additional 5 to 20 weeks for workers who have worked seven of the last ten years. This bill should not even have been introduced here. The government could have simply created a pilot project. There was no need for all the readings, the speeches and the committee stage. A pilot project would have served the purpose.

I suppose that, with this bill, the Conservatives wanted to restrict the rights of workers and bring them to their knees again. That is all they want to do. They do not want to help workers who pay taxes, thereby ensuring that the government has operating funds. When it comes to giving something to these people who are more often than not referred to as the middle class, there is never anything for them.

Had the Conservatives really wanted to do something for these workers, they would not have given them 5 to 20 additional weeks of benefits. They would have restored the Program for Older Worker Adjustment, or POWA. It would have been fair for a 55-year-old worker who lost his job because of a plant closure to have access to such a program.

That being said, I fail to understand, once again, why the Conservatives do not help these workers. When businesses are in trouble, the government is first in line to give them the money everybody wants in order to save them. We saw that with the auto industry in Ontario. Billions of dollars started pouring into this industry. The government had no problem giving money to those companies.

Tomorrow, we will be debating the Canada-Colombia free trade bill. What does this government want to do? It wants to help mining companies take control of Colombia and ensure that workers over there have no rights. Not only is the government stripping away the rights of workers here, but it wants to do the same in another country. It does not want Colombian workers to have any rights. I find it despicable that the government would give more rights to prisoners than to workers.

I hope the Conservatives will change their minds and vote in favour of this bill which, I can assure members, is an excellent piece of legislation.

Second ReadingEmployment Insurance ActPrivate Members' Business

November 16th, 2009 / 11:15 a.m.


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Liberal

Michael Savage Liberal Dartmouth—Cole Harbour, NS

Mr. Speaker, once again, I am pleased to speak to Bill C-395, the proposed changes to the Employment Insurance Act with respect to labour disputes.

This legislation addresses what I think is a bit of a gap in the EI system right now and in the Employment Insurance Act. The question is: what should be done if the qualifying period for somebody who has lost his or her job includes work lost because of a labour disruption? This bill is a reasonable attempt to address the gap. At the very least, it is worthy of further study at committee, so we can identify whether or not there is more that needs to be done. Also, to some extent, we could perhaps address the issue of what the cost might be. I see that the Speaker has ruled that a royal recommendation will be required.

Let me speak to the issue this bill addresses and how it proposes to solve it. Right now, somebody's qualification for employment insurance is determined by the qualifying period that precedes the loss of employment, and that is 52 weeks. There are allowances for certain instances such as sickness, but not for work time lost due to a labour disruption.

During a labour dispute, employees cannot draw EI. They can, in some cases, receive strike pay. Or they could, conceivably, go out and get another job, although it is a very difficult circumstance in which to look for a job when one is hoping to go back to a job that one currently holds. If one gets strike pay, of course, it is different from having insurable earnings for EI.

It is always difficult to determine costs when we are looking at employment insurance. It involves very complex calculations. This year, we had the issue of what it actually costs in another area of qualification, the 360-hour national qualifying standard. Just over a year ago, last spring, because of a request from the committee looking at a private member's bill, the HRSDC department had estimated that cost at somewhere around $600 million or $700 million. The exact figure does not come to me, but it was in that range.

Other people have estimated it will cost $1 billion to $1.5 billion a year. That would make sense, because there are more people unemployed now than there were last spring, and there has been a slight escalation in cost. As a result of a request from the employment insurance working group established by the Prime Minister and the Leader of the Opposition, we had the outrageous guesstimate, we might call it, of over $4 billion. They came back and said this would cost over $4 billion.

That did not make any sense. Everybody knew that was nuts. In fact, the government itself came back a little bit later and said the cost was actually about $2.5 billion. We asked the Parliamentary Budget Officer and he came in with a cost of about $1.1 billion, which notionally makes sense and obviously was statistically backed up. But that is why we have issues with costs when we start looking at employment insurance.

We have the same thing when we look at two-week waiting periods. What is the cost of a two-week waiting period? It is not really a waiting period; it is an out-of-luck period for a person who loses his or her job. What is the cost of that? The estimates have varied a bit on that, as is the case with this bill.

This bill does indicate that if a job is lost following a labour disruption, allowances can be made. It is very difficult for people and families who are already suffering from being unemployed because of a labour disruption when, all of a sudden, they come back and within a short period of time they are laid off completely and find out that their qualification for EI has been affected.

In essence, this bill will simply extend the qualifying period by the length of time of the labour dispute. As I have indicated before, qualifying is a huge problem in this country. It has been identified as the number one problem with the EI system. Many solutions have been proposed over the last number of years, and specifically in the last year.

We have had private member's Bill C-269 and private member's Bill C-265 from the member for Acadie—Bathurst and the member for Chambly—Borduas. In this session, we have looked at Bill C-241, Bill C-280 and Bill C-304. These are serious attempts to have a look at what the gaps are in the EI system, particularly at a time of economic difficulty.

We are still in this; we are still seeing job losses. We saw the numbers that came out the other day. There are still people in Canada who are losing their jobs. The economy needs a little bit of help. Everybody talks about stimulus. From any reports I have seen, the best stimulus is to invest in people who have lost their jobs or are in economic difficulty, because they will in fact put the money back into the economy, which is what stimulus is supposed to be all about.

We have heard from many people, including all the premiers from Ontario to the west, who normally have not spoken out much on employment insurance. All of the premiers of varying political stripes have said that we need to look at the issue of accessibility. We need to have a look at these variable entrance requirements, particularly at a time of economic difficulty, to see if they still make sense, because they are hurting the provinces. We heard that from the Minister of Finance's wife, when she was running for the leadership of her party in Ontario. We heard it from Premier Stelmach and Premier Campbell, and every premier, including Premier Brad Wall in Saskatchewan.

We have heard it from social policy groups. We have heard it from economists. We have even heard it from organizations that one might not normally think would call for such a thing. TD Economics has called for it. The Chamber of Commerce urged that we have a look at a couple of things in its prebudget submission this year, including entrance rates, but also at the two-week waiting period. These are all things that can be done to improve the system right away.

We have to have a look at what has the government done for employment insurance, recognizing finally that we are in a period of economic distress. As the House will recall, last November when the United States was already looking at proposals to assist people who were unemployed, we had an economic update that offered nothing.

In January, when we came back after Parliament was prorogued, EI was addressed in a specific way by adding five weeks of eligibility, which was a step forward in my view. If we look at the private members' bills that we have seen in the House over the past few years, the extra five weeks was always a small piece of it.

Of course, there was nothing on the two-week waiting period, nothing on accessibility, and nothing on increasing the rate of payment from 55% to 60%, which is called for a lot. But the five weeks were helpful and they were particularly helpful because they affected all Canadian workers; they did not pick winners and losers.

That is why the five weeks was a good piece of public policy at the time, but they are nowhere near to being enough and did not address the issue of accessibility that the 360-hour national standard would address. But the five weeks were something for all workers in Canada.

This fall we had a couple of pieces of legislation, one of them being Bill C-50, which would extend benefits from 5 to 20 weeks, but only for a select few, the fortunate few, in this country.

In the spring the government was saying that it was going to offer extra benefits to everyone, and then in the fall it said it was going to go back to a small percentage of the unemployed. One may qualify for between 5 and 20 weeks, but if one has drawn on EI before, too bad. If one happened to be a seasonal worker in northern New Brunswick, or in the fishing industry or the tourism industry, or others like that, one did not qualify for the extra 5 weeks.

That kind of discriminatory approach flies in the face of what the government was proposing to do at the beginning of the year, which was to provide equality in the employment insurance system, at least on the extension of benefits, if not in actually going to the number one source of irritation for Canadians, for workers, public sector unions, social policy groups, economists, think tanks, premiers and the wife of the finance minister. They were all saying that the system is not fair and that we have to fix it.

The reason it is not fair is that accessibility requirements range too much. At a time of economic difficulty, we need to do something to assist all Canadians and we need to make sure that people who lose their jobs do not feel like the government has forgotten them.

I would remind members that earlier this year the Minister of Human Resources and Skills Development was quoted as saying she did not want to make EI too lucrative. I remind the House and the millions who are watching at home that average employment insurance benefits are somewhere in the range of $330 a week. There are not that many people in the House who would want to work for $330 a week, or would feel very excited about losing their job so they could get $330 a week. I think the maximum is $440 a week.

EI is far from being a lucrative proposal for anyone. We have to keep in mind as well that people cannot draw EI in Canada if they voluntarily quit their jobs. If they quit their jobs, they do not get EI. They are told that they do not qualify. They can appeal it and they might be able to make their case, but they cannot quit their jobs and get EI.

Therefore, for an individual to suggest that EI is lucrative and that anyone would deliberately try to qualify for it, the individual would have to suggest that the person find a way to lose his or her job without quitting it. That person would have to get the employer to let him or her go so he or she could make 55% of his or her previous earnings.

Bill C-395 is worthy of consideration. I congratulate my colleague who brought it forward. We think it addresses a gap in the system. We think that at a time of economic difficulty, this is when we need to invest in employment insurance, because employment insurance assists Canadians when they need it the most, through no fault of their own from a work stoppage. It should not be made harder because of a labour disruption in the previous qualifying period.

Second ReadingEmployment Insurance ActPrivate Members' Business

November 16th, 2009 / 11:05 a.m.


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Conservative

Ben Lobb Conservative Huron—Bruce, ON

Mr. Speaker, thank you for the opportunity to debate the merits or demerits of Bill C-395 today.

Let me begin by acknowledging that labour disputes do affect Canadians, and sometimes Canadians do find themselves unemployed at the end of such disputes. My colleague from the Bloc obviously cares about these workers, as do all members of the House. I am sure of this, but we must go beyond good intentions. As the old saying goes, good intentions can lead us down a path on which we would be better not to go.

We must probe the potential policy and legal impacts of these proposed amendments on the Employment Insurance Act. We must ensure that any changes to the employment insurance system are based on hard evidence, and we must look at the practical facts on the ground. When we conduct this investigation, the implications of Bill C-395 become troubling on several levels. Let me discuss some of my concerns.

First, let us deal with the practical facts on the ground. In the history of law and legislation, we have seen that another old saying is also true, that often extreme cases make bad law. I recognize that this bill is intended to protect employees who are caught in a lengthy labour dispute that ends in a firm's closure. This result of course is regrettable and often difficult on the workers affected.

We should view this in context, however. Most labour disputes are relatively short and they rarely end in the closure of a firm. Between 2003 and 2009, for example, a little more than one per cent, only one per cent, of the total number of strikes ended in a firm's closure. Moreover, the average length of a strike that ended in a firm's closure was 110 days. For lockouts, the figure was 116 days. As the parliamentary secretary noted, these figures average out to 16 weeks. That leaves plenty of time for employees to qualify for benefits under the current 52-week requirement.

By these comments, I do not want to suggest that I am or our government is unsympathetic to the plight of the unemployed, far from it. Simply, we need to take account of the facts to inform our decision-making. Here are some of the facts.

The Employment Insurance Act does not preclude workers from accepting other employment during a labour dispute. The act allows employees to accumulate the work hours required to establish a claim for benefits. Specifically, through the variable entrance requirement, employees need between 420 and 700 insurable hours to qualify for regular benefits, depending upon the unemployment rate in the applicant's region.

In other words, using existing provisions of the act, employees in a labour dispute could qualify for benefits by building up their hours through work elsewhere. For this reason alone, the provisions in Bill C-395 are inadvisable.

Let us also recall that the employment insurance system is an insurance-based program. It is designed to provide benefits to workers if they are unable to work, whether because they are unemployed, sick, pregnant, caring for a newborn or adopted child, or caring for a gravely ill family member. This regime is supported by the premiums paid by both workers and employers.

When a worker meets the qualifying requirement, benefits kick in. It is that simple. The proposal before the House goes against the guiding principle that the EI program should remain neutral during a labour dispute.

My colleague from Souris—Moose Mountain pointed out correctly that allowing the provision of benefits to workers, paid for in part by employers, during a labour dispute would disrupt the system's balanced treatment, tilting the system in favour of workers in a situation where they are negotiating with management. This bill would make changes such that the negotiating position of unions and workers would be unfairly improved at the cost of employers, who pay 58% of employment insurance premiums. I simply do not think this change is something we should undertake.

There are other related aspects of this bill which I do not think are wise. Specifically, the bill proposes to change how the EI program calculates a qualifying period in the event of a labour dispute that leads to work stoppage. As members know, the qualifying period is the time in which a claimant must accumulate enough hours of insurable employment to establish a claim for benefits.

Currently it is generally the 52 weeks preceding the beginning of a claim. In some cases the period can be shorter when there was a prior claim. The bill would extend the qualifying period to be the same as the period of the labour dispute. This would allow employees to be eligible for employment insurance benefits if they are laid off after a lengthy labour dispute is resolved.

Existing provisions allow for the extension of a qualifying period to up to 104 weeks in certain situations. These exceptions include situations in which individuals are physically unable to work, such as quarantine and sickness. Labour disputes are not considered an exception, because individuals are not physically prevented from working. They could work somewhere else. The proposals in Bill C-395 would therefore deviate from the EI program's basic insurance principle, that there must be a reasonable proximity of timing and correlation of value between premiums paid and benefits disbursed.

These are the reasons I think this bill is not wise. I welcome the chance to speak a little bit about some actions that I do think are wise. Those are the actions of this Conservative government both recently and as part of Canada's economic action plan. Since coming to office and particularly since the beginning of the economic downturn, our government has acted decisively to support unemployed Canadians and help them get back to work, but we have done so based on sound evidence that the changes are in the best interests of all Canadians.

Through Canada's economic action plan, our government has introduced measures that support all unemployed Canadians. Specifically, we have temporarily extended the duration of EI benefits by five weeks. We have made it easier to take part in work-sharing agreements, which are helping to protect the jobs of almost 167,000 Canadians. We are also helping young people get certified in skilled trades, and helping long-tenured workers make the transition into new careers.

We have frozen the employment insurance premium rates for 2010 so they will be at the same rate as this year, which is the lowest level in a quarter of a century, and we are providing an additional $1.5 billion to the provinces and territories to help support skills training. Our government has also recently passed measures in Bill C-50 that will help long-tenured workers who lost their jobs because of the global recession. These measures will now start to help ensure that approximately 190,000 long-tenured workers who have paid into the EI system for years are provided between five and 20 extra weeks of EI while they search for new employment. Surely we can identify with likely one or two businesses in every riding throughout this House. This much-needed support is in addition to the five weeks of EI included in the economic action plan. This is an important step for Canadian workers who have worked hard, have paid taxes their whole lives and who find themselves in economic hardship.

Our government recognizes that the self-employed are an integral part of our economy. We believe that self-employed Canadians should not have to choose between their family and business responsibilities. That is why in 2008 our government committed to extending maternity and paternity benefits to the self-employed. On November 3, 2009 we introduced Bill C-56, the Fairness for the Self-Employed Act, which provides all EI special benefits, including maternity, parental, sickness and compassionate care benefits to self-employed Canadians on a voluntary basis.

We have not just met our commitment to these 2.6 million Canadians, we have exceeded it. Bill C-56 has received a very positive response from a variety of stakeholders: the Grain Growers of Canada, the Canadian Federation of Independent Business, the Independent Contractors and Businesses Association, the Canadian Real Estate Association. I could go on and on.

The government has acted responsibly to enhance the employment insurance program, particularly since the global economic slowdown. For all these reasons, I cannot support the proposed amendments, and I urge all members of the House to join me in my opposition to the bill.

Employment InsuranceOral Questions

November 6th, 2009 / 11:50 a.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

Mr. Speaker, I am proud to announce that Bill C-50 has received royal assent. This means that unemployed Canadians, long-tenured workers, can now receive between five and twenty weeks of extra EI support while they transition into a new job.

Shamefully and regrettably, the Liberal leader and members of his party voted against these hard-working Canadians at every stage in the House and in committee.

While the Liberal leader continues to disappoint those hardest hit, it is our Conservative government that will continue to stand up for hard-working Canadians and their families in their hour of need.

Employment InsuranceOral Questions

November 6th, 2009 / 11:50 a.m.


See context

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, unemployed long-tenured workers are among the hardest hit by the global recession. These are Canadians who have worked hard, paid premiums for years and need extra support while they search for new employment. Our Conservative government took concrete action to help them by introducing Bill C-50.

Could the Parliamentary Secretary to the Minister of Human Resources please update this House on the status of this important bill that will provide much-needed support for these hard-working Canadians?

Employment InsuranceOral Questions

November 6th, 2009 / 11:45 a.m.


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Mégantic—L'Érable Québec

Conservative

Christian Paradis ConservativeMinister of Public Works and Government Services

Mr. Speaker, we introduced Bill C-50. What did the Bloc members do? They voted against it. That is what they did. An additional 5 to 20 weeks of benefits for Quebec's unemployed workers is significant. There are long-tenured workers everywhere in Canada, and particularly in Quebec. The Bloc voted against that. They will vote against everything we do to help the economy and unemployed workers. That is what is shameful. They do not want to move things forward; they want to create divisions. So they continue to pick petty quarrels that make no sense.

Employment InsuranceOral Questions

November 6th, 2009 / 11:45 a.m.


See context

Mégantic—L'Érable Québec

Conservative

Christian Paradis ConservativeMinister of Public Works and Government Services

Mr. Speaker, Bill C-50 is an excellent bill for Quebec's unemployed workers. The Bloc should have supported it. Long-tenured workers will have access to an additional 5 to 20 weeks of benefits. That is not insignificant.

As for self-employed workers, they currently have access to a private system that is very expensive. We are offering them something affordable, and once again, the Bloc is going to vote against it. They will have to explain to people who want to take advantage of those measures why they will have to make do with the private system, at outrageous prices.