Human Resources Committee on June 11th, 2009

[Sukh Dhaliwal, Liberal, Newton—North Delta, BC]

Thank you.

Thank you, Mr. Chair.

[The Vice-Chair, Bloc, Yves Lessard]

Mr. Vellacott.

[Maurice Vellacott, Conservative, Saskatoon—Wanuskewin, SK]

I have a quick question in respect to the targeted initiative for older workers, which is to support some 6,000 older workers.

Can you give us a little bit of detail and, for the Hansard record here, explain the good stuff--maybe Paul or whoever would be doing that--in respect of the nature of those agreements that are helping our older workers, with some of the details, and how we are taking the initiative that way? I'm wanting to know how much they vary from province to province, but I also want to know about the nature of those and the details in respect to those agreements.

[Paul Thompson]

Sure, I'd be happy to speak to this.

This program has been in place for a couple of years now. It's one that has involved nine provinces, nine of thirteen provinces and territories. The additional budget funding of $60 million over three years meant we had to go out and update our agreements. Six provinces have now signed on, so we're making fairly rapid progress in implementing this infusion of additional dollars.

The program recognizes the important role that provinces play in the delivery of training. They develop the proposed projects in conjunction with stakeholders. Unlike the labour market development agreement training, which is more individual-based, these are usually group-based projects designed to assist a collectivity of older workers. Normally a project would be proposed by a province, subject to final approval by our minister. There's a base level of activity under the existing program, and in the coming months more projects are being enabled through this additional investment.

[Maurice Vellacott, Conservative, Saskatoon—Wanuskewin, SK]

Give me an example of that. Would you be targeting older people from a sphere of work that's all of a sudden closing down? Could you paint me a scene of what it would be like?

[Paul Thompson]

There's an important community element to this. In fact, one of the changes made in the budget was to expand the eligibility to a broader number of cities. It is focused on communities that are experiencing particular challenges. Single-industry towns are the most common setting in which a large number of older workers have to make a career change. In these cases, a project would be funded to help them with job search activities, to facilitate the reorientating of their careers, and to position them to re-enter the labour market. These are the sorts of skill sets and activities that a group-based project would pursue.

[Maurice Vellacott, Conservative, Saskatoon—Wanuskewin, SK]

Thank you.

[The Vice-Chair, Bloc, Yves Lessard]

Thank you, Mr. Vellacott.

If you don't mind, I would like to ask two questions. The first one has to do with pilot project no. 14. For those who are able to participate in the pilot project, you are introducing the concept of long-tenured workers. In order to identify such workers, you have set a number of criteria, including the amount of time worked, the period of time on Employment Insurance, and contributions to EI, all of which has allowed us to realize that there are constraints here that exclude a great many people and that seem, at first glance—you tell me if I am mistaken—to be highly discriminatory towards people who do not have regular jobs. In fact, even people who do have regular jobs might have trouble qualifying before working for five years. In addition, this is a temporary measure.

I would be interested in hearing your comments. Why did you introduce a measure that excludes a large proportion of laid-off workers who could otherwise access it? That is the first part of my question.

In another connection, I am told that, as regards cost-shared work—usually called work sharing—the federal contribution to benefits is not being received in many cases. That means that there are work sharing programs where people are not being paid. I imagine they will at some point, but why all this delay? Is there a problem?

Those are my two questions.

[Paul Thompson]

I can answer your first question about measures aimed at long-tenured workers. We have basically done two things. When we analyzed the impact of the economic slowdown, it was clear to us that there was one category of workers who had lost their jobs and needed a considerable amount of training. That is also something we realized through our discussions with the provinces and territories. Before the budget was tabled, there were consultations held at a Ministers' forum on the labour market. During those discussions, it became clear that this type of worker needs help. After an individual has worked in the same industry for many years, he requires a highly intensive period of training. That is why we determined that, in order to be eligible for the program, a worker would have to have contributed to EI for seven years and have received benefits for no more than 35 weeks in a five-year period. Those are the two eligibility criteria for the program.

As I mentioned in my opening comments, we are currently sending letters to about 150,000 individuals who are potentially eligible for this program, which allows people to receive benefits for no more than two years. It is a very significant investment in their training. That is why we decided to target that particular category of workers.

[The Vice-Chair, Bloc, Yves Lessard]

Can you also answer the second question?

[Liliane Binette]

With respect to the cost-shared work program, perhaps we should remind you of how the process works. When the employer and the union, in cases where employees are protected by a union, agree to submit an application, program officers have 30 days to assess the work-sharing agreement application and authorize it. Once a work-sharing agreement is in place, workers apply for Employment Insurance—it is a streamlined application process. I was explaining earlier that we looked at ways of streamlining the work-sharing program. So, workers now submit a streamlined application, the employer forwards the information to us—

[The Vice-Chair, Bloc, Yves Lessard]

I am sorry to interrupt you, but I would just like to clarify my question. I am well aware of the process whereby the parties agree to a work-sharing arrangement which you then authorize. However, once that has been done and it is acknowledged that the government will defray part of the cost, it has happened, in a number of cases I have in mind and that concern specific regions, that the amounts the federal government was expected to pay were not paid, even in places where the program had been completed.

So, what happened? Has this been drawn to your attention? Is there a problem or a particular reason why it has taken so long for people to be paid?

[Liliane Binette]

If I understand the question, Joanne, this has to do with cases where the agreement has been rejected.

[Joanne Lamothe]

Just to clarify your question, could you tell us whether you are talking about an agreement that has been refused or that was not responded to in time, Mr. Lessard?

[The Vice-Chair, Bloc, Yves Lessard]

I am talking about a project that has been accepted.

[Joanne Lamothe]

That has been accepted?

[The Vice-Chair, Bloc, Yves Lessard]

Yes. It has been accepted, there has been an agreement, it has gone ahead, and as that was happening, the federal share never arrived. In one case, the program was even been completed, and yet the money has still not arrived. Is that the way you operate? I am just trying to understand.

[Joanne Lamothe]

I must admit I am surprised to hear about this and would like to review it further. Once the agreement has been approved, employment insurance applications are made which are processed in accordance with EI program criteria. So, once an agreement has been accepted, these applications are processed exactly the same way as the other ones are. If you are referring to a particular case, I would like to review it myself, if you don't mind, because these applications are processed the same way as other employment insurance applications.

[The Vice-Chair, Bloc, Yves Lessard]

In terms of EI paying its share, is the timeframe the same—in other words, 28 days?

[Liliane Binette]

The average processing time for applications is 24 days, as is the case for all other applications. Once the agreement has been signed, the usual process for processing applications kicks in.

[The Vice-Chair, Bloc, Yves Lessard]

Thank you very much.

[Liliane Binette]

Does that answer your question?

[The Vice-Chair, Bloc, Yves Lessard]

Yes. I simply wanted to make you aware of this case.

My colleagues have reminded me that I was entitled to two questions, but I was aware that you had not really understood one of them.

Can we wrap up now? Do you wish to add anything, Mr. Savage?

[Michael Savage, Liberal, Dartmouth—Cole Harbour, NS]

On a point of clarification, if I could, it's not about the $60 million--and I thank you all for coming here, as I know you're busy--it's about the $1.15 million for the five weeks, the pilot project in place that provided five weeks and that was rolled into the extended five weeks across the country.

Is the $1.15 million the incremental cost over what was already in place for the five-week pilot project? Am I making myself at all clear?

[Paul Thompson]

Yes. The cost for the five weeks was that upon termination of the pilot project and its replacement by the legislative measure, the entire cost of the five-week project--