Thank you.
Good afternoon. Thank you to the committee for allowing me the time to address you today.
My name is Richard St. Denis. I'm from Windsor, Ontario, a city with one of the highest unemployment rates in the country. I'm also a proud member of the Canadian Auto Workers, CAW Local 444, working at Chrysler Canada in one of the hardest hit segments of our economy, the manufacturing industry. While I'm disappointed that these meetings aren't happening in Windsor or Essex County, I do appreciate the opportunity to be here today.
I come before you with two very specific recommendations for you to address in the next federal budget with regard to unemployment insurance. The first is for the two-week waiting period to be removed. Premiums are required to be paid by workers on the very first dollar they make on their paycheques. Benefits should be paid from the first day that a worker loses their job and a valid claim is established.
Under the current system, a worker laid off tomorrow must first serve the two-week waiting time, followed by two weeks of served time, and then wait until the next week for payment. That means a minimum of five weeks before they see their first dollar from the EI program. This is the time when they most need the money, but the system makes them wait five weeks before they see their first payment.
The second recommendation is for the employment insurance clawback to be removed. No other insurance has this type of system. When a person buys insurance to protect against a loss, employment or any other, the insurance should be paid when there's a valid claim established.
This is the only insurance that is mandatory to purchase, yet it only pays based upon income levels. Anyone required to pay the clawback on their income tax return has already paid the maximum premium into the program and should be entitled to those benefits when they need them. The clawback is a penalty imposed on the workers that contribute the most to the EI system, and it's not fair.
Even though the current very high unemployment rates happened as a result of the economic climate in Canada, the employment insurance program continues to operate at a surplus. This money belongs to workers who contributed to the fund, not to the government. It should be used to support workers in their time of need, when they're faced with layoffs or a dramatic decrease in their income levels.
Thank you for allowing me the time to bring forth these two very important recommendations. I hope you consider them very seriously in the next federal budget and implement them both.
If you have any questions, I will be happy to take them at the appropriate time.