Thank you very much for inviting me to testify as part of the pre-budget consultations.
My name is Colin L'Ériger. I am the director of the Research Department at the FTQ—the Fédération des travailleurs et travailleuses du Québec—a Quebec-based labour federation with 600,000 members across all sectors and regions of Quebec.
We know that Quebec and Canada face many challenges. Several have been mentioned, including the trade war, climate change and the housing crisis. Therefore, we will focus our remarks on what the federal government could do to address these issues, which affect the members we represent.
First, it is a matter of supporting workers during these turbulent times. The vast majority of the FTQ's membership is in the private sector. Unfortunately, our affiliated unions operating in the sectors most affected by tariffs are seeing bad news pile up week after week, such as partial or complete business closures.
At the FTQ, we are realistic. We know that we cannot change the economies of Quebec and Canada overnight. However, that does not mean there is nothing we can do. As I mentioned earlier, at the FTQ, we believe that establishing an industrial policy is an extremely promising way to capitalize on the strengths of Quebec and other regions of the country, as well as on the needs of the population. Obviously, it should focus on revitalizing the manufacturing sector—particularly in secondary and tertiary processing—as well as on research and innovation, in order to add greater value to Canadian products.
There's also the issue of buying local. We must encourage and promote the consumption of domestically produced goods, particularly through preferential public procurement and purchasing policies. Steps in this direction have already been taken in the latest budget.
Next, there is the issue of employment insurance. We have seen a rise in the unemployment rate over the past few years. I believe the pandemic has truly highlighted the fact that the employment insurance system no longer adequately meets the needs of workers. Fewer than four out of ten unemployed people are eligible for benefits, even though they all pay premiums. Reform is urgently needed. The brief we submitted contains several recommendations in this regard, including making many of the temporary measures permanent.
Then there is the issue of a public and universal drug insurance plan. Two weeks ago, we held a seminar with our members on group insurance. Many told us about the runaway increase in group insurance costs, to the point where people are wondering whether they'll still have group insurance or if they'll have to give it up. In Quebec, we have a rather unique system. In short, the situation is quite untenable at the moment. Costs continue to rise, and a significant portion of the population—about 10% in Quebec and even more among the most vulnerable groups—is going without medication due to lack of funds.
Of course, there was Bill C‑64 on prescription drug coverage, which we welcomed and which was passed. It is a step in the right direction. However, it is now important to devote all necessary efforts and investments to implementing this vital program in order to reduce public health care costs and ease the financial burden on households. This collaboration between the federal government and the provinces is desirable and can be achieved while respecting each jurisdiction's areas of responsibility.
Next, there is the housing crisis. This issue is of great concern to the FTQ. Rent and real estate prices are completely out of step with workers' ability to pay. We see the effects of this every day, whether in the increased reliance on food banks or the rise in homelessness. Just because we're seeing a slight increase in vacancy rates in some markets doesn't mean the crisis is over.
This is becoming a problem not only for the quality of life of the members we represent, but also for the vitality of the economy. All the dysfunctions we see in the housing market are harming the job market. In fact, people are moving less and less, for fear of losing affordable housing. This loss of residential mobility is a loss for the economy. Furthermore, all the money spent on housing is money that isn't being reinvested elsewhere in the economy. There are many studies on this subject, which you've surely seen.
So, there is no one-size-fits-all solution. A wide range of solutions will need to be implemented, but it is very important that the federal government significantly increase investment in social and community housing. Furthermore, we need targets to address the needs of the most vulnerable people and those with the greatest housing needs.
In conclusion, we must reiterate the importance of combatting climate change. We must mobilize public funds to combat climate change, support sectors with a promising future, and promote projects aimed at achieving carbon neutrality. These actions must also be part of a just transition framework—meaning that the workers who will be affected by these changes must not be the only ones to bear the costs. This is a collective effort, so the costs must be shared collectively. Certain communities must not be the only ones affected. This just transition plan must also allow workers to fully participate in planning the decarbonization of their economic sector.
Thank you very much.