Evidence of meeting #4 for Human Resources, Skills and Social Development and the Status of Persons with Disabilities in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was billion.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Pierre Céré  Spokesperson, Conseil national des chômeurs et chômeuses
François Lamoureux  Assistant to the Executive Committee, Confédération des syndicats nationaux (CSN)
Danie Harvey  Executive Member, Conseil national des chômeurs et chômeuses

4:20 p.m.

François Lamoureux Assistant to the Executive Committee, Confédération des syndicats nationaux (CSN)

Good afternoon to everyone. First, I would like to thank committee members for inviting us and hearing our views on Bill C-308, which was sponsored by the member of Parliament Yves Lessard.

I would like to point out that the CSN represents 300,000 workers in every economic sector in Quebec. I say “every economic sector in Quebec” for the following reason. The CSN welcomes Bill C-308 because we believe that this bill contains elements, important tools to help fight poverty and inequity between unemployed workers in every part of Canada.

The CSN supports this bill because, in our view, it is based on an understanding of the real problems which unemployed workers in Quebec and in every economic sector are experiencing. All of the workers from the various economic sectors represented by the CSN have been harshly affected. This mainly applies to the manufacturing sector which is going through a major crisis. But there's also a major crisis in the pulp and paper industry, there is a major crisis in the shipbuilding industry, and there is a major crisis in the steelworking industry.

Today, workers who have lost their jobs in these sectors are experiencing situations which have led to family crises. The CSN agrees with all of the proposals contained in Bill C-308, but we support in particular the proposal that sets the eligibility threshold at 360 hours.

We wish to express our position as follows. Why do we need an eligibility threshold? For us, it is a matter of treating all unemployed workers, regardless of where they are in Canada, fairly. In our opinion, an unemployed worker is an unemployed worker, and this person needs a temporary income in order to look for work. Premiums are not based on the regional unemployment rate. Premiums are the same, whether one is a part-time worker, a seasonal worker, whether one works on call or full time, whether one is young, a man or a woman. Workers are not responsible for being laid off. A worker can be laid off in a region with a very low unemployment rate, either because that person was working for a company which went bankrupt, which decided to decrease its activities or terminate its operations, or a company that is operating in a shrinking economic sector.

Why do employment benefits depend on the unemployment rate of the region we live in? Do we receive less health care in a region where there are fewer sick people? No. Does it make sense for people who are laid off by a company, but who live in different administrative regions for the purposes of employment insurance, not to be eligible for the same benefits?

In our view, workers who lose their jobs in a low unemployment area suffer just as much as those who lose their jobs in a region with a high one. Losing a job is a personal tragedy which leads to a loss of income and an increase in stress. Everyone needs a temporary income to find a new job, regardless of what the regional unemployment rate is.

Canada seems to be the only industrialized country, with the exception of certain U.S. states, to apply variable eligibility standards. Why should we have a threshold of 360 hours? We think it will make the system fairer. Despite what some unemployment statistics might indicate, the Parliamentary Budget Officer, who is an independent government official, estimated that if the threshold was brought down to 360 hours, 165,000 additional unemployed workers would be eligible for regular benefits, excluding new recipients.

In the same document, the Parliamentary Budget Officer noted that the department estimated that over 330,000 additional unemployed workers would be eligible for benefits if the 360-hour threshold applied to everyone, that is, to all categories of beneficiaries, including those eligible for regular and special benefits.

A little earlier, questions were raised about how this would affect women who work part-time. When the eligibility criteria were changed from weeks worked to hours worked, the purpose was to help more workers qualify for benefits, at least in theory, including people working fewer than 15 hours per week. So, theoretically, these changes were supposed to benefit women, because 40% of women work in irregular employment, such as part-time or casual work. In this regard, the statistics are interesting. The eligibility criteria were established in such a way that the original objectives were not met and, in fact, they greatly penalized workers, especially women, who engage in irregular types of work.

From 1971 to 1978, a woman working 15 hours a week on a part-time basis could qualify for benefits with 120 hours, or 8 weeks. However, over time, this same worker would need between 150 and 210 hours from 1978 to 1989, 210 hours in 1990, from 150 to 300 hours from 1991 to 1994, from 180 to 300 hours from 1994 to 1997, and from 420 to 700 hours since 1997. That's more than double.

In our opinion, the 360-hour threshold is essential, because, pending a major overhaul of the system, it is the only way to restore a minimum degree of fairness for workers, whose employment regimes vary. We believe the current system discriminates against women, and that the new rules had a huge impact on women. Indeed, in total, the average number of hours worked by women was set at 33.8 hours per week, but women work, on average, 29.8 hours per week. Therefore, women need to work more hours to qualify for benefits, and they are entitled to fewer weeks of benefits. Eighteen per cent of jobs are part-time, which explains why, in 2007, barely one-third of workers, and especially women working part-time, were eligible for employment insurance benefits.

In our opinion, this bill is a step in the right direction as far as the fight against poverty is concerned, and it also creates more fairness in the way all workers are treated.

4:30 p.m.

Conservative

The Chair Conservative Candice Bergen

Merci beaucoup. Thank you very much.

We will basically have time for one round. You will have seven minutes, so if you wish to share it, you will have the time.

We'll begin with Mr. Regan, please.

4:30 p.m.

Liberal

Geoff Regan Liberal Halifax West, NS

Thank you very much, Madam Chair.

Ladies and gentlemen, thank you for being with us today. I appreciate your comments.

First, I don't know whether you heard what the Prime Minister said. During question period, I believe it was today, he spoke about the opposition parties' proposals concerning the number of days required for a person to receive employment insurance benefits.

Do you have any comments on this?

4:30 p.m.

Danie Harvey Executive Member, Conseil national des chômeurs et chômeuses

We did indeed hear that a little earlier. You realize that we were travelling today, and so we didn't actually hear the Prime Minister discuss this, but Mr. Lessard referred to it earlier. Obviously, it's wrong because that is not what the bill stipulates. It does not say 52 weeks of employment insurance benefits, because it will depend on the number of hours that each person has worked. So the 52 weeks is not accurate. People should look at the numbers carefully before speaking out. That is it not exactly what the bill says.

4:30 p.m.

Liberal

Geoff Regan Liberal Halifax West, NS

Do you have any other comments?

4:30 p.m.

Assistant to the Executive Committee, Confédération des syndicats nationaux (CSN)

François Lamoureux

It's a shame that the human aspect is not more present when employment insurance is mentioned. It's as if injecting more resources had no developmental effect on Canada's economy and that of its regions. People who have access to employment insurance are able to benefit their community, because they must spend money on clothing, food and transportation. So these people are reinvesting government funds.

So why doesn't the same principle apply? Investing in infrastructure helps stabilize the economy. Why do people not use the same reasoning by making the same investment in employment insurance and understanding that it has the same developmental effect, both in human and economic terms?

4:30 p.m.

Liberal

Geoff Regan Liberal Halifax West, NS

The idea is that people whose income declines will spend the money they receive on the things they need. Have you compared this bill with Bill C-280? Unlike Bill C-280, this bill does not relax the eligibility criteria for parental and maternity benefits. Do you prefer this change?

4:30 p.m.

Spokesperson, Conseil national des chômeurs et chômeuses

Pierre Céré

I'm not sure I understood the question. In Quebec, we have a parental insurance plan. It's not a question of accumulating working hours in order to be eligible—we're fairly modern in that regard—but rather a minimum income of $2,000 during the qualifying period. As concerns the issue of parental and maternity benefits, I would say we've settled it.

4:30 p.m.

Liberal

Geoff Regan Liberal Halifax West, NS

Do you believe that there should also be an eligibility criterion for special benefits?

4:35 p.m.

Spokesperson, Conseil national des chômeurs et chômeuses

Pierre Céré

In general, the system must be unlocked. An editorialist for the daily newspaper La Presse, Mario Roy, concluded his editorial last year by saying that the employment insurance system must be unlocked. In other words, the issue of eligibility must be settled, because many people are currently not entitled to benefits.

Allow me to give you an example. Last week someone called our office from Lachute, which is not far from Montreal. The person's administrative region for EI is Centre-du-Québec. This person is a construction worker who applied for EI benefits in December. He had accumulated 594 hours of work. When he submitted his application to the Lachute office, he was told that it was fine and that there shouldn't be any problem. Two months later, in February, he received a reply. His application was refused whereas one of his construction colleagues, who lives in Mirabel, which is not far from Lachute but part of the administrative region of Montreal, had his application accepted.

In Montreal, 560 hours of work is required. So his colleague was eligible. There was nothing that could be done legally because of this rather arbitrary division that should not exist.

4:35 p.m.

Liberal

Geoff Regan Liberal Halifax West, NS

The Prime Minister, the Minister of Finance and the Minister of Human Resources refer only to the costs arising from such a change. Have you evaluated the costs that this bill would entail?

4:35 p.m.

Assistant to the Executive Committee, Confédération des syndicats nationaux (CSN)

François Lamoureux

First, with regard to costs, the following aspect should be noted. Canada is below the average of industrialized countries with regard to the GDP-value-of-EI-benefit ratio. Canada has one of the lowest employer-employee contribution rates. The current rate is something like 1.73.

The current contribution rate is the lowest it has ever been in over 25 years, even when the federal government was contributing to the EI fund. Adopting a national standard of 360 hours to qualify for regular benefits would cost, according to TD Bank, some $1 billion per year. The Parliamentary Budget Officer estimates the cost at $1.14 billion. This would enable over 165,000 unemployed Canadians to receive regular benefits this year. This does not include new entrants.

If the 360-hour standard is broadened to include all categories of regular benefits, benefits for new entrants and special benefits, the number of eligible Canadians would double. Over 330,000 additional unemployed people would have access to the system. The amount of the benefits paid would be $2.3 billion. This means that roughly 20% more unemployed Canadians would be entitled to benefits.

4:35 p.m.

Conservative

The Chair Conservative Candice Bergen

Thank you. Mr. Guimond, the floor is yours.

4:35 p.m.

Bloc

Michel Guimond Bloc Montmorency—Charlevoix—Haute-Côte-Nord, QC

Thank you, Madam Chair.

First, I would like to commend you on your presentation. You are talking about real things and real values. It's good to hear that kind of thing in a parliamentary committee.

My question goes to Ms. Harvey, who represents the region of Charlevoix and the Haute-Côte-Nord, which are hard hit by unemployment and have a large portion of seasonal jobs. People sometimes make the mistake of referring to seasonal workers, but it is not the workers who are seasonal. They're not labelled that way and don't have it tattooed on their forehead. They are workers in the seasonal job industries. You may think that this is a question of semantics, but I think that we should set the record straight, so people realize that we are talking about the whole range of seasonal industries, forestry work, fishing, tourism, and hotels and inns. It would be nice if these industries functioned year-round, but that is not the reality. Frequently, in our regions, things shut down in October, after Thanksgiving, and do not open again until May.

I would like you to explain to committee members—especially since today is March 17—what is commonly called the “black hole”. This hole is something the bill is trying to fill by adding weeks of benefits. Please explain the phenomenon that you experience in the Charlevoix region.

4:40 p.m.

Executive Member, Conseil national des chômeurs et chômeuses

Danie Harvey

As you say, it is seasonal work. What is seasonal is the economy, the nuance is important. People want to work. This concept that people want to work their hours and get EI benefits is quite simply not true, because bills come anyway. When people call our office and they're in a tight spot, we have to help them, things have to go on. They are on the edge of the “black hole” and there are some people who are in it right now, meaning that their work has not resumed and their benefits have run out. What can we do with that? What can we do with these people? There are very long periods between the time work starts and the time benefits run out. This is a reality in our neck of the woods and elsewhere, but I am going to talk on behalf of my region.

I have been working at the MAC for 23 years, and the situation has never been as dramatic as it is now. People are worried. When we talk about 490 hours in our parts, that is a lot. Last summer was terrible, as we know. It was difficult for these people to get the hours they needed to qualify for employment insurance. Three hundred and sixty hours is realistic, it is achievable, but we should not expect either that these people will only work 360 hours and then go home. That is not true, it's no longer true. Three hundred and sixty hours makes them eligible for EI. It's all fine and well to conduct pilot projects, but if people are not eligible, what is the point? There isn't one.

We need to ensure that workers can qualify and obtain EI if they lose their jobs. We mustn't forget that this is an insurance that employers and employees have paid for protection. For the government to come and interfere in this and decide how it is going to work is a bit problematic for me. In Charlevoix, this bill would have a major impact and could improve the quality of life of people in that region, there is no doubt.

4:40 p.m.

Bloc

Michel Guimond Bloc Montmorency—Charlevoix—Haute-Côte-Nord, QC

Mr. Lamoureux, I would like you to go back to the issue that was addressed previously.

Mr. Céré talked about two construction workers who lived 10 kilometres away, and also the whole issue of accessibility. Let us talk about EI benefits. Governments have taken the surpluses and the current government wants to do it again. It was in the last budget. This money, as Ms. Harvey just said, belongs to workers and employers who contributed to the fund.

I would like to hear you talk about the EI fund surpluses, but also about accessibility. Accessibility is a little like having an insurance agent say, after losing everything in a fire, that it's true that you have lost everything and that you have been the victim of a fire, but you didn't read your contract: you can only get paid the second time you lose everything. We would call them thieves, because it's robbery. I want to hear your comments on this.

4:40 p.m.

Assistant to the Executive Committee, Confédération des syndicats nationaux (CSN)

François Lamoureux

First, perhaps the economic crisis and its impact on the budget could be used as a pretext not to adopt this bill, but it would really be ignoring the structural effect of this bill on the economy.

With regard to your question, there are three important elements that need to be highlighted. Since 1990, the government has not invested a cent in the program. Unlike what people would have us believe, it is not, in our opinion, funding the deficits.

The law stipulates that the government lends money with interest to the EI fund and that this loan be repaid when there is a surplus. However, the system is important in order to support the economy and it becomes even more so during times of crises.

Yes, nearly $60 billion were misappropriated from the employment insurance fund surpluses, when it's the employers and workers who paid into the EI fund. This goes beyond comprehension.

What also goes beyond our comprehension is the lack of vision and perspective with regard to developing the labour force, which is currently the most hard hit. We see older workers, people losing their jobs in industry and people who do not have access to EI benefits experiencing hardship or reaching significant crossroads in their careers.

I have witnessed some dramatic situations. People are losing their jobs. My friends at Aciers Sorel have lost their jobs. Furthermore, the pension fund is in a deficit position. Insolvency has meant that these people have seen their pensions cut in half. I have seen people at Aleris, in Shawinigan, in metallurgy, experiencing the same thing. The same thing is happening with AbitibiBowater's restructuring.

We are at a crossroads. People do not realize that these individuals really need a bridge to ensure they can have a decent income and try to find a new job. Soon, the opposite will occur. There will be a labour force shortage. Unlike now, we will be looking for people to work in our company.

4:45 p.m.

Conservative

The Chair Conservative Candice Bergen

Thank you very much.

Mr. Godin, it is your turn.

4:45 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Thank you, Madam Chair.

The problem with EI did not start yesterday. Mr. Céré, you said that this started in 1986 when the Auditor General recommended that the EI fund be transferred to the consolidated revenue fund. That has become a cash cow. We know the rest.

I don't want to point the finger at the Liberals because they are in the opposition. However, this is part of the history of employment insurance. The Liberals tried to make everyone believe that they now want to save the day, but, in reality, after the Mulroney government tried to slash the program, the Liberals made drastic cuts.

If I recall correctly, it was in 1996, because I was elected in 1997. At that time the Minister of Human Resources lost his job and I beat him. Doug Young had imposed budget cuts, I remember well. At the time, the argument was that people would stay home, that the program would undermine employment and that the unemployment rate would increase if EI benefits were not cut.

Today, are we not experiencing the worst economic crisis? Will we blame the employment insurance system for having caused it, despite all the cuts? It is not because they cut EI that they prevented the economic crisis. Are there jobs or not?

At the time, Jean Chrétien sent a letter to a group of unemployed women in Rivière-du-Loup. He said that unemployment was not the most important problem and that the worst problem was the economy and that it had to be fixed. Our people are hardworking. Do you agree with me?

I want to mention something else. Are you not concerned when the Liberals say that they want the adoption of the 360-hour standard to be temporary, during the economic crisis? Do you agree that it should be temporary or would you like it to be permanent?

4:45 p.m.

Assistant to the Executive Committee, Confédération des syndicats nationaux (CSN)

François Lamoureux

We would like to see structural change and long-term fairness. Some people believe that we are almost out of the financial crisis, but that is simply magical thinking. We are far from being out of it, despite what you hear. The economic crisis can be felt in every region, not only in the regions of Quebec, but throughout Canada as well. The country's economic situation will be such that in a few years, the poorest will need even more support from government.

Mr. Godin, as we speak, only one unemployed worker out of five is potentially eligible for benefits. This represents 571,469 unemployed workers who paid into the system, who have a valid reason for not holding down a job, but who have not accumulated enough hours to qualify for benefits. About 40% of workers who pay into the employment insurance system do not qualify. Therefore, in answer to your question, I would say that we need long-term structural changes. We cannot come back before the standing committee each year to discuss short-term solutions. I believe that job creation is linked to structural changes in the labour market, to a national employment policy, to a training policy and to the protection of those who are hardest hit, from coast to coast. However, as some people have said, Canada is one of the countries with the lowest benefits.

4:50 p.m.

Executive Member, Conseil national des chômeurs et chômeuses

Danie Harvey

You talked about measures, but in the riding of Charlevoix, we have pilot projects and temporary measures. This creates uncertainty and stress in people. We get calls from people asking when these measures will end, whether they will be extended, and so on. But we don't know. It is high time that the system be completely overhauled.

4:50 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

There is always a lot of talk of unemployed workers and employers, but when an unemployed worker goes to the employment insurance office, or puts in an application online, and then is turned down, not only is this worker turned down, but his entire family is as well, including his children. In fact, 1.4 billion children in Canada go hungry, which is a blight on our country.

Do you think that the employment insurance system contributes to this type of poverty in Canada? This is not only happening in Charlevoix, but in many other regions, be it in Prince George, Timmins, Hearst, in the riding of Acadie—Bathurst, in Caraquet or Shippagan. You can't go fishing for lobster in winter on St. Catherine Street in Montreal. You can't go fishing for cod on Yonge Street in Toronto, where the movers and shakers hold the fate of Canadians in their hands.

4:50 p.m.

Executive Member, Conseil national des chômeurs et chômeuses

Danie Harvey

Indeed, they really don't know anything about what happens in the regions. It is high time that we invite them to see what things look like in winter, in January, in Charlevoix.

4:50 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

In fact, Madam Chair, perhaps our committee could visit the regions.

4:50 p.m.

Executive Member, Conseil national des chômeurs et chômeuses

Danie Harvey

Yes, you are all invited.