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. The Library of Parliament often publishes better independent summaries.

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.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:15 p.m.
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Bloc

Yves Lessard Bloc Chambly—Borduas, QC

Madam Speaker, the argument made by the hon. member for Acadie—Bathurst is very clear and fits in with what he has always maintained here in the House. The Bloc completely agrees with him regarding Liberal politics.

The Bloc is a little surprised by the conclusions on which he is basing his decision to vote in favour of the bill. This morning the Liberals and the NDP agreed with us that this bill should be referred to committee immediately so we can amend it. With things going the way they are right now, amending the bill will be rather difficult. Our colleague summarized his speech by saying that this bill was an insult to workers. Major unions—like the CAW, the CSN and the FTQ, with whom we have been in discussions since yesterday—agree. They think the same thing, namely, that this is an insult to workers. Those major unions do not want us to vote in favour of this bill.

I would like to hear his opinion of that. Like me, he comes from a labour background and I would like to know what he thinks of the unions' position.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:15 p.m.
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NDP

Yvon Godin NDP Acadie—Bathurst, NB

Madam Speaker, I would like to thank my colleague, the member for Chambly—Borduas.

There is not a big difference between saying that we will support the bill today so that it can go to committee and voting for it or unanimously voting to send it to committee. It is the same thing. The Bloc Québécois rose and asked that it be sent to committee right away so we can work on it. The Conservatives refused. Now, what shall we do? Do we say no or do we send it to committee?

What are the unions saying? That is not what they want. However, they are not telling us to vote against it. This morning the president of the Nova Scotia Federation of Labour told the newspapers that we must accept positive changes to employment insurance, even though they are not enough.

When I say that it is an insult, that is true. We have always maintained that it is not enough. We want real change. However, when we are in the House and a bill makes positive changes, are we going to vote against it? That is what we have to ask ourselves.

Should we accept our responsibilities, study it in committee and try to make the necessary changes? That is what we must do. So, that is exactly what I said earlier or even what the Bloc Québécois said. The Bloc said that it should go straight to committee and the Conservatives refused. Since we cannot send it immediately, let us vote to send it to committee and then work on this bill, call witnesses, experts if necessary, to say that other changes also need to be made. There are some things that need to be fixed in this bill.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:20 p.m.
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NDP

Brian Masse NDP Windsor West, ON

Madam Speaker, I thank my colleague for all the work he has done on this. It certainly is not the full buildup we want but it is a start.

One thing that will be raised is how we can afford this $1 billion bill. What I want to point out is that with the redistribution of the Canadian economy, the Conservatives and Liberals have voted to reduce corporate tax cuts right now so that in 2012 they will be down to 15%. I had the parliamentary research division, which consists of independent economists, do an analysis of what this will cost and they have project that it will cost Canadian taxpayers an additional $86 billion.

I would remind the public that as these tax cuts are taking place and we now have a deficit, we are borrowing money from ourselves and our children to give tax cuts to profitable companies, like the banks, the oil industry and the pharmaceutical companies, while at the same time other struggling industries do not get any benefit whatsoever.

I would like to ask my colleague whether we should be again looking at freezing those large corporate tax cuts and redirecting some of that money back as stimulus to workers and ensure we can expand the actual provisions for communities. That is one of the opportunities we still need to seize. If not, we will need to continue to borrow money for tax cuts for corporations and pass that debt on to our children.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:20 p.m.
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NDP

Yvon Godin NDP Acadie—Bathurst, NB

Madam Speaker, the money would be much better spent if it were directed to the communities and the regions. Instead of cutting corporate taxes, the government should spend the money in the communities. That would help people make changes to their infrastructure or correct problems in their cities or towns, which would create employment. When people work, they pay taxes, and that money comes back to the government after providing work for people and giving them a living. It would have been much better to take that route.

Ask the towns and municipalities or talk to mayors across the country, and they will all say the same thing. They need to repair their infrastructure, whether it be water lines or sewers There is a lot of renovation work to be done, enough so that people who have lost their jobs can find work and will not have to live on welfare.

That would have been much better for the economy than just sending the money to friends who already have enough. Only big, profitable corporations are going to benefit from the tax cuts. Companies that do not turn a profit will not benefit from tax cuts because they are not paying much tax to begin with. No profit, no tax. Why should some companies that are making a profit be rewarded when others are in need? They are the ones the government should be helping. These people who are in trouble today are able to help the economy.

Regarding the $1 billion, I have to say that the EI fund has a $57 billion surplus. There is money in the EI fund, and that money belongs to workers and employers. The government has the money to make the necessary changes to employment insurance.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:25 p.m.
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Jonquière—Alma Québec

Conservative

Jean-Pierre Blackburn ConservativeMinister of National Revenue and Minister of State (Agriculture)

Madam Speaker, I am here this morning in the House to support Bill C-50, which the government wants to have passed. We are hoping of course to have the support of the opposition parties.

Why do I support this bill? The economic recession has hurt our country. It is a worldwide economic recession. We have tried, through various initiatives, by stimulating the economy and by establishing programs, to help workers facing difficult times. We have put a variety of measures in place.

This morning, we are adding another. What do we want to do? We want to protect long-tenured employees. We want to ensure that employees who have paid EI premiums for 10 or 15 years, for example, or even longer and who have worked for the same company may benefit from more weeks of EI benefits if the company has to close. We want to give them 5 to 20 weeks more than they would usually have.

In principle, those who pay EI premiums for a number of years should be entitled to nearly a year of benefits. So it is to a year of benefits the 5 to 20 weeks are added, according to various criteria. One of the criteria requires that the claimant not have received EI benefits for over 35 weeks in the past five years.

Why are we choosing these figures? Because the line has to be drawn somewhere. The cost associated with this initiative—that is, $935 million—must be measurable. We can call it $1 billion. It is estimated that 190,000 people in Canada could benefit from this new measure, which will help them through these most difficult times. It will ensure other opportunities for employment as the economy recovers.

The schemes of the Bloc members are bothering me somewhat. They are trying to play down what we are doing here and to confuse people. Let me give an example. They are saying that seasonal workers are not included. That is true, because this is a measure intended to help long-tenured workers who have paid premiums for years.

Seasonal workers, however, are currently protected. They receive EI benefits under the usual criteria. They are entitled to them after working between 420 and 700 hours. It depends on the region they live in. This measure is in place for seasonal workers.

Today, a specific measure applies to people who have contributed for a long time and find themselves in a much more difficult situation.

What sectors are affected? There are of course the forestry, automobile manufacturing, manufacturing and mining sectors. There are others as well. We want to help them and others like them during these difficult times.

I would also like to mention something else. This week I heard Bloc members saying that many people who paid EI premiums were not eligible. Statistics were compiled in 2008 and show that 82% of those who paid EI premiums and had to draw benefits were indeed eligible. That is an important statistic.

We want to help people in the sectors we have been talking about who have contributed to employment insurance for a long time. Some 190,000 people should benefit from nearly $1 billion. This is in addition to the other steps we have taken. It is not all we have done over the past year.

First, we extended the employment insurance period by five weeks. The Bloc Québécois wanted to drop the two week waiting period, but we thought it was better to tack an additional five weeks onto the end because it might take longer to find a job. It is estimated that 290,000 people will benefit from these additional five weeks, at a cost of $1.15 billion.

We did things as well with work sharing. Employers told our government they had good employees whom they did not want to lose and whom they wanted to keep with the company four days a week rather than five. They asked the government if it could upgrade its work sharing program. We listened, and the answer was yes.

These employees used to be entitled to 38 weeks. We increased that by 14 weeks, making it 52. People who share work are protected now for a year and we give commensurate funding to the companies. How many companies are taking advantage of this? At present, 5,800 employers are taking advantage of it, together with the 165,000 employees who benefit from our improved work sharing program.

There are other things as well. Take, for example, someone who works in a plant and is laid off. He had been doing the same job for 10, 15, 20 years. There are no new opportunities in his region in his traditional job. If he wants to get some training, therefore, we will let him have two years of training paid through employment insurance. Some of those workers who were unable to benefit from employment insurance may well be able to take advantage of this program. About 150,000 people should benefit at a total cost of $1.5 billion.

I also want to mention our most recent measure, the one for long-tenure jobs, from which 190,000 people will benefit. The total number of Canadians who will benefit from all these initiatives is 790,000.

What more have we done? We are protecting our workers for sure, but we also needed to stimulate the economy. To do this, we first reduced taxes by $20 billion this year and for the next five years. Canadian taxpayers will have an additional $20 billion in their pockets.

Then we turned to infrastructure. We are going to try to make Canada one big construction site. Why? The private sector has reduced its investments and so we, as the government, must shoulder our responsibilities. We need to think about protecting our workers and Canadians. We said there are infrastructure projects that need doing in any case. We are going to speed them up. We will inject a total of $33 billion to replace bridges, build new roads, and carry out major projects in various communities in Quebec, in the regions, and all across Canada. That is what we are doing.

With the renovation credit, we want to ensure that people who need to renovate their home or their cottage are able to do so. To that end we are granting a credit of $1,350 on an investment of $10,000 that people make in renovation. This program is administered by the department which it is my honour to manage, the Department of National Revenue. It is working incredibly well. At present, we are even seeing contractors who previously were working under the table now deciding to get their licence and do things officially, because to benefit from our measure, a Canadian has to obtain a receipt from the contractor doing the work on the home. We are giving them $1,350. That has made it possible to hire plumbers, electricians, carpenters, joiners and others. We estimate that $3 billion in credits will be allowed on the next tax return of Canadians who have renovated their homes.

I touched upon another aspect when I visited the regions and, indeed, much of the country recently. I want to talk about scientific research and experimental development, since this too is managed by the Department of Revenue. The fact is that the reason we have such a high standard of living in Canada is not because we are called Canada, but because we produce a lot and we export 80% of what we produce elsewhere in the world. If we produced just for our own needs, we would not have this standard of living. What do we do to be able to keep on exporting? What do we do to ensure that our entrepreneurs have the best possible product at the best possible price, with the latest technology? We encourage them to engage in scientific research and experimental development. In recent weeks I have visited different companies and have spoken to the press about our scientific research and experimental development credit. This credit now stands at $4 billion annually. There is no cap. If more businesses of whatever size want to carry out scientific research, they are eligible for this program. They can take a look at the website of the Canada Revenue Agency. These are some of the measures.

Where does the problem lie? There is always something, somewhere. One has to draw a line. When you draw a line, someone who is missing a few hours or a few weeks may be disadvantaged. It is impossible not to draw a line.

Even if the Liberals proposed 360 hours, that is, 45 days of work, there would also have been a line. There is always a line. Some have the advantage of finding themselves inside the line and so can benefit. There will be 190,000 people who will be able to benefit from the measure that I am now discussing. There is no perfect system, but we are a government that wants to help the most vulnerable and those who are experiencing hardship during this more difficult economic period. In the month of June, for the first time in a very long time, economic growth was 0.1%. This is not a lot, but the numbers show that what we are doing is working. Thanks to the infrastructure program, more and more projects will be starting up. These projects will have to be implemented by March 31, 2011.

The other thing I would like to mention is the contribution rate. We are freezing premiums for employees who are legally required to pay employment insurance contributions. For 2009-10, the rate is frozen at around $1.73 per $100. We have seen to it that our employees, who need to hang on to their money in this difficult times, are protected.

There is another thing I would like to bring to the attention of the House. The newspaper Le Soleil said the following, “The downward spiral of the job situation in Canada could be nearing an end, according to the Conference Board of Canada. In the month of August, the help wanted index showed that the number of jobs posted online in Canada increased by 2.6% over the previous month.” That means that there are more job offers and more opportunities for work. Employers are gradually getting their confidence back. The article continues, “This is another sign that the worst of the recession is now over, according to the Conference Board. According to the Conference Board, the recovery can be seen from coast to coast. In Quebec, the help wanted index rose by 3% in August.” So there is progress.

I would like to talk about the number of hours that an individual must work based on the regions. There are 58 regions in Canada, and the number of hours required depends on the economic activity in the region. We feel it is reasonable to require fewer hours to be eligible for EI in a region like Gaspésie or Saguenay—Lac Saint-Jean, compared to Quebec City or the greater Quebec City region. It is easier to find a job in the greater Quebec City region than in the regions I just mentioned. That is why the system is the way it is. Once again, there will always be a line. If someone accumulated 320 hours, they would be 40 hours short. We calculated the cost, we have an idea of what is needed, and we are trying to help people as much as possible. In Canada, 190,000 long-tenured workers will be able to benefit from this measure.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:35 p.m.
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Liberal

Paul Szabo Liberal Mississauga South, ON

Madam Speaker, I have noticed that the debate has morphed into a discussion of more than just what this bill offers but in fact virtually everything to do with addressing the economic needs of Canadians at this time of financial duress.

There were three areas on which I wanted to ask the member for his input.

I, unfortunately, did not get a chance to go to the government's briefing on this thing. The bill was tabled only yesterday after question period. There was not very much time to give notice. I was not even back in my office until late last night. I wonder, since there are so many questions about the computation of how one comes up with $900 million, or almost a billion dollars, for 190,000 people--and I assume the briefing provided the basis for that calculation--if the minister would undertake to table in the House a copy of the calculation so that we could understand where it came from.

The second item on which I would ask for his input is that the member, in his speech, actually did say that this bill is just one more item, that it is just one more thing that they are going to do, that they are not fixing the EI system, that they are not addressing the qualification periods or, as the member for Acadie—Bathurst was concerned about, little technicalities, and that they have a computation of additional benefits for long-term workers who have paid over a longer period but have not claimed.

I wonder if he could explain why the government refused unanimous consent to either send this bill to committee or deal with it at all stages before the end of the week if it is so straightforward and he really supports it.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:40 p.m.
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Conservative

Jean-Pierre Blackburn Conservative Jonquière—Alma, QC

Madam Speaker, I should ask the members of the Liberal Party this question: why did they walk away from the bipartisan committee, which they asked us to form, in order to not bring down the government last spring? Why did they not participate in that bipartisan committee? Why did they decide to walk away in the middle of things, when we wanted their support—

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:40 p.m.
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NDP

The Acting Speaker NDP Denise Savoie

Order, please. Those people who continue to heckle will have difficulty being recognized. The minister is speaking. I would like to allow the minister to complete his response.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:40 p.m.
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Conservative

Jean-Pierre Blackburn Conservative Jonquière—Alma, QC

Madam Speaker, I was saying that they walked away from the committee when workers and the unemployed would have liked to hear their valuable input in order to adopt as many positive measures as possible to help workers. They turned their backs on workers; they turned their backs on the committee. We continued working, and now we are introducing this important measure to help long-tenured workers, those who have been paying in for many years and who, when the business shuts down, are suddenly going through a hard time. In addition to the year of employment insurance they will receive, we are adding another 5 to 20 weeks, so they will have more assistance from our government and this Parliament.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:40 p.m.
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Bloc

Robert Bouchard Bloc Chicoutimi—Le Fjord, QC

Madam Speaker, I listened carefully to the minister and member for Jonquière—Alma. He said they had to draw a line. He also said that 190,000 workers will benefit from employment insurance. He even talked about several sectors, including forestry and automotive. Can he tell me how many unemployed workers, by sector, will benefit from these measures? He mentioned 190,000 workers and various sectors. Can the government table a document giving us the number of unemployed workers in each sector who will get EI benefits?

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:40 p.m.
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Conservative

Jean-Pierre Blackburn Conservative Jonquière—Alma, QC

Madam Speaker, whom were we thinking of when we set up this EI program to help long-tenured employees? We thought of individuals who lose the jobs they have held for a number of years in Canada, in a region, in a business. We want to help them.

In our country, people in all types of jobs and businesses may find themselves in this situation. We are aware, of course, that there have been more layoffs in the forestry, automobile manufacturing and mining sectors and in the manufacturing sector. This is why we are helping these people.

I would remind the member for Chicoutimi—Le Fjord that we have also put measures in place. My colleague, the Minister of State (Economic Development Agency of Canada for the Regions of Quebec) and I both come from that region and have put four different measures in place to support workers in Canada's forestry sector, among others.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:40 p.m.
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NDP

Tony Martin NDP Sault Ste. Marie, ON

Madam Speaker, I certainly appreciate the opportunity to be engaged in this debate here this morning. Members of the Bloc and of our party were cut out of the discussions that happened over the summer, which I think was rather unfortunate. Perhaps it might have led to more success at having something done had we been there.

However, here we are, and we have an opportunity to put on the table some of what we think needs to be done. This is a beginning, but a very feeble beginning of trying to respond to a very difficult circumstance that is now evolving out there. The government has indicated that 190,000 people will be served by this initiative. I suggest that if we did the math, we would find that there are hundreds of thousands of others who do not fit the category that is identified in this initiative. They either do not qualify for EI, have already run out of EI or will run out of EI very soon.

Some economists are referring to this as another wave. As these people find that they cannot pay their bills and they begin to default on all kinds of credit, credit cards, bank loans, mortgages, et cetera, the impact that will have on the economy, not to speak of the impact that it will have on them personally and on their families, is what concerns me the most.

Is there any opening over there to some discussion about that large group of people who, if they have not already, will soon fall onto welfare in this country? As the member knows, that is not a very happy place for anybody.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:45 p.m.
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Conservative

Jean-Pierre Blackburn Conservative Jonquière—Alma, QC

Madam Speaker, I thank the member for his question and comment.

Once again, we are putting all sorts of measures in place in an effort to support Canadians, people and workers in this difficult economic period. We are one of the countries currently coming out of it fairly well compared with the situation worldwide. Seasonal and regular workers have EI when they lose their job. They have, based on the region where they live, between 420 and 700 hours. They are entitled to employment insurance.

The other thing we are doing this morning is adding on. We are saying this: If you lose your job and the business closes for good, you will, in principle, have a year's EI. It is there. The system is in place. We are adding an extra 5 to 20 weeks to help these people. That is what we are doing. There are parameters, of course, which we cannot avoid. There is a budget to manage. Our country has to be managed. At the same time, however, we feel a responsibility to try to help those in difficulty.

If it were left to our hearts, we would give and give and give, but we have to manage a budget and keep within the guidelines set for all governments.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:45 p.m.
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NDP

Dennis Bevington NDP Western Arctic, NT

Madam Speaker, I have a very brief question.

The dollars that we are investing in Canadians and employment insurance hardly match up to some of the dollars that we have put into companies across this country to deal with the impacts of the financial crisis.

Does the member not think that there needs to be proper support for Canadian workers in the future? Is this not really what we are here for?

Employment Insurance ActGovernment Orders

September 17th, 2009 / 12:45 p.m.
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Conservative

Jean-Pierre Blackburn Conservative Jonquière—Alma, QC

Madam Speaker, there are two things. Just this morning, Guy Chevrette of the forestry sector said he feared that employer premiums could be raised. As soon as we try to help one group in difficulty someone is afraid because there is a cost associated with doing so. In the current circumstances, we have said we were freezing premiums for employees.

Permit me to say this to the hon. member. We should compare what is offered in Canada in terms of employment insurance with what is offered in the United States. There, people get between 40% and 60% of what they have earned. That is all they can get. Here, between 4 and 10 times more goes to help our employees and unemployed.