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 / 3:55 p.m.
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Kootenay—Columbia B.C.

Conservative

Jim Abbott ConservativeParliamentary Secretary to the Minister of International Cooperation

Madam Speaker, it is regrettable. I recognize that sometimes we get some words like the member has just used in this place, and it happens from both sides, I grant that. However, I must admit I am a little disappointed with the member. I thought, as a person who has been around this chamber as long as she has been, that she might find a little more appropriate way of expressing her disappointment in the way things have been going.

That said, I want to ask her a question. Does she accept the fact that we represent probably the vast majority of Canadians who think it is really quite, if I must use frivolous words, silly to be thinking of coming up with a revision to the employment insurance scheme that would give a year's benefits for 45 days of work? Does that really make any sense to her? It certainly does not make any sense to any right thinking Canadian with whom I have had any conversation, and it does not make any sense to me. I do not understand why that is the one thing the Liberals put in the window as a proposal. It really is rather—

Employment Insurance ActGovernment Orders

September 17th, 2009 / 3:55 p.m.
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NDP

The Acting Speaker NDP Denise Savoie

The hon. member for Notre-Dame-de-Grâce—Lachine.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 3:55 p.m.
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Liberal

Marlene Jennings Liberal Notre-Dame-de-Grâce—Lachine, QC

Madam Speaker, the member has just proven what I said, that the member from the Conservative Party, regardless of who it was who was going ask me a question, would again repeat the untruth that the Minister of Human Resources and Skills Development and the rest of her caucus have been repeating over and over again. Members opposite do not have to believe me. They should read the Parliamentary Budget Officer's report. When those members say that the Liberal proposal is 45 days work for one year of benefits, the Parliamentary Budget Officer has proved that it is not true. For those members to continue to repeat it, in my view, shows bad faith on their part. They should read the Parliamentary Budget Officer's report.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 3:55 p.m.
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NDP

Don Davies NDP Vancouver Kingsway, BC

Madam Speaker, what is an absolute fact is that for 13 years, through three successive majority governments, the Liberal Party did nothing to improve EI for the workers of our country. In fact, the Liberals gutted EI and they took $57 billion of workers' and employers' premiums and they put it into general revenues. Now they stand here when the government comes forward with some proposal to fix EI and they vote against it.

Could the member opposite explain to me why, during 13 years in power, the Liberals did not take any action?

Employment Insurance ActGovernment Orders

September 17th, 2009 / 4 p.m.
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NDP

The Acting Speaker NDP Denise Savoie

Order, please. I know these are testing times, but I would ask that we be careful about our language, and that the heckling and the comments when the speakers are not recognized cease.

The hon. member for Notre-Dame-de-Grâce—Lachine

Employment Insurance ActGovernment Orders

September 17th, 2009 / 4 p.m.
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Liberal

Marlene Jennings Liberal Notre-Dame-de-Grâce—Lachine, QC

Madam Speaker, first, when we talk about employment insurance under a Liberal government, the EI payroll tax was reduced 13 consecutive years. That has not happened under the Conservatives. In fact, they are talking about creating a $13 billion payroll tax as of 2011.

Second, under a Liberal government, EI maternity and paternity benefits were extended. I am quite proud of that as well. I have no apologies to make about the Liberal record with regard to EI under the Liberal tenure. I do, however, ask the member this. Why is his party supporting a Conservative government that has already said that it will increase the EI payroll tax by $13 billion? It is a job killer.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 4 p.m.
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Regina—Lumsden—Lake Centre Saskatchewan

Conservative

Tom Lukiwski ConservativeParliamentary Secretary to the Leader of the Government in the House of Commons

Madam Speaker, it is a pleasure to stand and speak to Bill C-50, a bill to once again improve the Employment Insurance Act, this time to deal with improvements to payments and benefits to long-tenured workers.

Before I get into the essence of the bill itself, it would be beneficial to all to take a little trip back in history to try to determine exactly how we got to this point today.

Some of my other colleagues in this place this afternoon have indicated that for 13 years under the previous Liberal administration there were really no substantive changes to the EI program whatsoever. What we did find out though, however, was that during that time there was an incredible amount of surplus in the EI fund, a notional fund, of upwards of $50 billion which the previous government basically put into general revenues. This was widely known and quite frankly unacceptable to most Canadians.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 4 p.m.
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An hon. member

The Auditor General told us and so did Brian Mulroney.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 4 p.m.
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Conservative

Tom Lukiwski Conservative Regina—Lumsden—Lake Centre, SK

Madam Speaker, I understand you gave admonitions to people with heckles. Maybe we could do the same on the Liberal side.

It is widely known and quite correct that the previous Liberal government took approximately $50 billion in excess payments from the EI fund and put it into general revenues. By anyone's standards, I would believe that would have to be considered unacceptable. Nonetheless that was the situation of the day.

The Liberals had also put in a formula based EI program, which various regions of the country would react to needs of the unemployed in different fashions. What I mean by that, is in certain regions unemployed workers could qualify for EI after 420 hours of work throughout the year. In other regions of the country they could only qualify for EI benefits after up to 700 or 720 hours.

That certainly was not a perfect system because of the overcharging of employees and employers to the tune of $50 billion. However, the formula itself had some merit at its time.

However, what happened about a year ago, as we all know, there was an unprecedented economic meltdown throughout the world. This was precipitated not by any actions of our government or our country, but because of the sub-prime mortgage crisis that occurred in the United States.That hit all countries in the industrialized world quickly, swiftly and without precedent.

In fact, every country in the G20, as well as many other countries throughout the world, were reeling from the effects of that sub-prime mortgage crisis. It affected so many countries in a manner in which number one stock markets started to crash, unemployment made drastic increases, economies almost collapsed in some jurisdictions and banks did collapse.

In fact, which I will speak to later in my presentation, Canada was the only country I believe in the G20 that did not have to bail out any of its banks. We have the strongest banking system in the world. I think we all know that and we should all be proud of it. However, that is how severe the economic downturn, the global crisis was.

It affected every country with which we do business. All our trading partners were affected and the G20 was reeling.

One of the many things we did, once the realization of how severe and how widespread this economic downturn was, was to start making plans to change the EI program. We realized that many hard-working Canadians were losing their jobs through no fault of their own. Employees in the auto sector, the forestry sector and the manufacturing sector were losing their jobs because their companies were going bankrupt because of this global economic downturn.

Therefore, it was imperative for our government, and I believe governments throughout the world, that fundamental, substantive and necessary changes were made to employment insurance programs to protect those workers, to give them the benefits they required and they needed so desperately as they tried to recover and transition from this economic downturn that was affecting all of us.

What did this government do? The first thing we did was to start consulting widely and broadly with Canadians from coast to coast to coast and people who had an interest and an expertise in employment insurance. We wanted to find out from average Canadians and the experts what they believed was necessary in EI reforms, what could we do as a government, what changes could be implement in the employment insurance program that would best serve the Canadian people and Canadian workers.

We heard from thousands of Canadians from coast to coast to coast. They told us the first thing that needed to be done was to extend the benefits because the benefit period was not long enough. Many workers had been working for 15 and 20 years and had suddenly lost their jobs. They were out on the street, as it were, trying to transition and find new work, but they did not know how long it would take them. This economic crisis was so severe and so widespread that job loss was rampant across the country and countries across the world. It would not be the easiest thing in the world for anyone who had lost a job to find new employment quickly. Therefore, we extended the benefit period for EI.

The second thing we heard was that we needed to put more money into skills training and upgrading so workers who were laid off or lost their jobs in an industry, where they had worked for perhaps 15 or 20 years, could get the necessary training to transition and find work in a different industry. We did that.

I am proud to say we put over $1.5 billion into training programs. People who could qualify and even those who did not qualify for EI could access these training programs so they would be ready when the time came to take a new job, or perhaps start a new career to be able to fend for themselves and their families. The dollars that we put in were helping approximately 150,000 Canadians. We know that because that is how many Canadians have accessed these training programs to date.

However, that is not all. We expanded a work-sharing program. It was a program currently in place but we expanded the number of weeks that employers could access it. That allowed Canadians to keep their jobs, approximately 200,000 people, Canadians who were able to continue in their jobs because of expanded work-sharing opportunities.

That is one other thing in which our government should take great pride. Canadians, again, from coast to coast told us that is what they required.

We did more than just that. We decided we would freeze EI premiums for the next two years. We understood that employers and employees needed to keep more of their money in their pockets to help them through these troubled times.

All of this was done swiftly. We consulted with Canadians, they told us what they needed and we acted. We put these provisions into place as quickly as possible and they passed in the House. Those provisions are now helping hundreds of thousands of Canadians.

However, there was one other thing we said quite clearly and forcefully. We recognized there might be more required. No one could tell at the time how long this worldwide recession was going to last, how long this economic downturn, which has affected millions of people around the world, was going to last. We stated we would keep monitoring and observing the EI program to determine whether more changes were needed.

I must point out that during this time we heard from members of the opposition who gave their input and suggestions as to what was required to further improve the EI program.

What did we hear consistently, first from the NDP and then the Liberal Party of Canada? We heard that they felt the panacea to all the problems with the EI program could be solved by one single course of action. What was that? They suggested we lower the threshold on which individuals could access employment insurance to 360 hours.

Were there more suggestions? Absolutely not. That was it. That was the single suggestion that we heard. Again, as I mentioned, in their minds that was the complete solution, the panacea to all of the ills.

However, let us examine that a little closer. What does lowering the threshold to 360 hours really do? Does it help those workers who have worked for the last 20 years in the automotive industry and who suddenly found themselves out of a job because one of the big three auto manufacturers was going bankrupt and laying off workers by the thousands? Of course not. Did it help the forestry workers who have worked for 10, 15 or 20 years in the forestry industry and who put in literally thousands of hours in full-time employment year after year? Did it help them to lower the threshold to 360 hours? Absolutely not.

In fact, one could argue that the only people who would be helped by lowering the threshold to 360 hours might be part-time workers or students perhaps, but it certainly did not do anything to assist those workers who had been in the workforce for almost all of their adult life working 40 hour weeks, month after month, year after year. It did nothing to help them.

That is why, as many of my colleagues this afternoon have already observed, we thought it rather, to put it bluntly, silly and counterproductive to accept a suggestion that would do nothing to help those people who desperately needed help. That is why when we offered five weeks of extended benefits it was received universally well by workers across this country. When we decided to put billions of dollars into skills training and upgrading programs, it was universally applauded by workers and industry leaders across this country. When we decided to increase the work share program so that thousands of Canadians who were on the precipice of losing their job would be able to continue to work at their places of employment, it was cheered.

However, never did I hear from any people who had a full-time position, who had worked for years in their industry and had lost their job, that lowering the threshold to 360 hours was what they wanted.

I only point that out to the members of this place because, while it is a legitimate debate point, I have yet to hear a member of the opposition, who had been advocating lowering the threshold to 360 hours, fully explain to me how that would best serve Canadians who had been working for the last 15 to 20 years in full-time employment. The reason they have not been able to articulate an answer is because it does not help them. Workers needed more than just lowering the threshold. They needed money in their pockets and they needed extended benefits, which is why we took the actions that we did.

However, we recognized, as this recession and the global downturn kept churning along relentlessly, that there may still be other improvements that could be made. Again, I reiterate that for 13 years under the previous government there were absolutely no changes made to the program except for the fact that it kept siphoning off money from employers and employees.

In consultation with the official opposition, we decided to set up a bipartisan group of parliamentarians to examine the EI changes that we have currently made and to examine what additional changes and improvements to the EI program could be made to better assist workers. This working group of parliamentarians started their work but, unfortunately, somewhere down the way it was derailed because the Liberal members of that group walked out. When they were attending the meetings, they were still advocating a 360 hour threshold for employment insurance benefits and that was all.

We, on the other hand, wanted to go further than that. We felt there was much more that could be done. Therefore, even though our colleagues in the Liberal Party had walked out of that committee, we decided that we would go it alone.

We again consulted with Canadians from coast to coast to coast and we brought forward some further improvements that are contained in Bill C-50. What are those improvements? Quite frankly, they were targeted at those long-tenured workers that I was referring to earlier in my remarks, those hard-working Canadians who perhaps had been at the same job, but at a job nonetheless, in usually full-time employment, or close to full-time employment in almost all cases, for years and years.

We have all heard the stories. I am sure every person in this place has heard stories from constituents in their own ridings that have almost ripped their hearts out. We have had men and women, age 50, 55 or older, coming and pleading with their parliamentarians for help because they had been working at a job for 20 or more years and found themselves unemployed. They needed assistance because they were not sure how long it would take them to find a new job. They needed our help.

Even though we extended the benefit period by five weeks for those who were collecting EI premiums, we felt there were some special needs for those Canadians who were in that category that we would consider to be long-tenured workers because they were the most vulnerable.

I think we all know that for Canadian men or women who are middle aged or getting close to retirement and they lose their job, it is not easy for them to find a new job. These people would come in with stories of anguish, relating to me, and I am sure every other parliamentarian, stories of their fears and their concerns, not only for themselves but in almost all cases for their families. How do they feed their families? How do they keep a roof over their heads? How do they clothe and feed their families? They feared that in a number of weeks or perhaps up to a year their benefit period would run out and they still would not have new employment.

What could we do for them? We decided to act. As we did when we made our first improvements to the EI program, we decided to specifically target long-tenured workers. We have come up with a program, the provisions of which are contained in Bill C-50, that deals with exactly that.

Bill C-50 purports to change the EI program to deal with long-tenured workers so that an additional five to twenty weeks would be available for those workers who are in the situation of being unemployed after working most of their adult lives.

I can say from personal experience, and I think all of my colleagues on this side of the House can say the same, that when we proposed those changes, they were universally applauded. I have had workers in my riding phone me, write me and tell me face to face that this was something they thought might ultimately save their families' futures.

At the same time we were bringing forth these changes, we wanted to get clear acceptance from members of this House. What did we hear once again? We heard members of the official opposition, through the Leader of the Opposition, state that they would oppose absolutely every initiative this government brought forward. I understand the opposition leader's need to justify his existence by forcing an election but I do not understand why any member of any opposition party could possibly stand in this House and argue against the initiatives that we have brought forward.

We are doing what we feel is in the best interests of Canadian workers. We have heard from Canadian workers, those unfortunate souls who have lost their jobs through no fault of their own, and they have told us loud and clear that we are on the right course. The actions we are taking to improve the EI system are necessary and they are appreciated by working families all across this country.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 4:20 p.m.
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Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Madam Speaker, I thank the hon. member for talking about the strong banking system that we have. On behalf of the Liberal Party of Canada, I say that he is welcome.

I would like to discuss some of the issues. He talked about the notional deficit and general revenues. The general revenues were used at the time to erase what was a $50 billion deficit. No, I think it was $42 billion back then, was it not? It is hard to keep track. However, that was the deficit back then as opposed to the deficit the present government has today.

I would like to touch on one subject. He talked passionately about long-tenured workers and the forestry industry. I would like to show him an illustration, based on Bill C-50, of what we are talking about. There are a few gentlemen in my riding who have called and they are loggers. The logging situation is that it is primarily a seasonal industry. If he is so concerned, and he says that this bill would do so much for people in the forestry industry, what about a logger?

This is the situation. Subclause (2.1) states quite clearly that over the past 260 weeks, “If a claimant was paid less than 36 weeks”. Hopefully my math does not fail me, but that is about 7.2 weeks per year over a five-year period, which basically means that Bill C-50 means nothing for that logger he speaks so passionately about. They are out.

I would like him to comment on that. When it comes to seasonal work, why will those people he speaks so passionately about not be accepted by Bill C-50?

Employment Insurance ActGovernment Orders

September 17th, 2009 / 4:20 p.m.
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Conservative

Tom Lukiwski Conservative Regina—Lumsden—Lake Centre, SK

Madam Speaker, my hon. colleague started his comments by talking about the deficit that the Liberals inherited. This is revisionist history that members of the Liberal Party continue to purport. I would point out to the member opposite that the actual deficit that has crippled this country at times was first started in the 1970s under former Prime Minister Pierre Elliott Trudeau. In fact, as history proves, at the end of that prime minister's tenure—

Employment Insurance ActGovernment Orders

September 17th, 2009 / 4:20 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

How much did Mulroney have?

Employment Insurance ActGovernment Orders

September 17th, 2009 / 4:20 p.m.
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NDP

The Acting Speaker NDP Denise Savoie

Order, please. If the hon. members expect to be recognized, I would ask them to refrain from heckling or making comments while there is someone speaking who has been recognized.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 4:20 p.m.
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Conservative

Tom Lukiwski Conservative Regina—Lumsden—Lake Centre, SK

Madam Speaker, as history has shown, at the end of former Prime Minister Trudeau's reign, for every dollar in revenue that the Government of Canada was bringing in, that government was spending $1.03. Can anyone imagine trying to run a government while it was spending more money than it was taking in? That is why we had such crippling deficits.

The following administration reduced that at the end of its tenure. We all know that once a program is in place in governments, it is very difficult to cut off the tap. However, at the end of the following administration, that government had cut down revenues to the point that the government was only spending 97¢ for every dollar it was taking in. In other words, it was cutting down on the massive debt left by the former Liberal government.

We need to ensure we have history straight.

With respect to his specific question on those workers who are working less than 35 weeks a year, whether they are in the forestry industry or other industries, Bill C-50 deals specifically with long-tenured workers. The provisions in that bill do exactly that.

Employment Insurance ActGovernment Orders

September 17th, 2009 / 4:25 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Madam Speaker, I do not think the government member is on very solid ground when he tries to lecture the Liberals about deficits and debt. At the end of the Mulroney period, when there was a huge increase in the debt, it was followed by the Mulroney years, which put us into as big a debt as was there under the Liberal years. He is not on good ground there.

The government member has certainly come a long way when it comes to the issue of EI, from the days of the old Reform Party, when it basically operated on the basis of a pull-yourself-up-by-your-bootstraps mentality, to the point where we now have a party looking at bringing in a $1 billion improvement to the EI program. I think we should be applauding that. Rather than complaining, the Liberal Party should be coming up with some amendments for the committee to try to make the bill even better than what it is right now.

Could the government member tell the House why his party voted against the New Democratic bill, Bill C-279, which would have removed severance pay from the calculation of EI benefits, especially since the Conservatives' own report recommended that severance pay should not be treated as earnings?