I have a natural tendency to talk fast. I'll do my best to slow down. I have just 10 minutes, so I'd like to get out as much as I can.
A study by the parliamentary budget officer revealed that just 38% of unemployed workers were eligible to collect EI benefits. That sounded the alarm. As my predecessor pointed out, this reduced access to the EI system has been the subject of outcry for years.
In fact, we believe significant improvements to the system are needed. Not only is it necessary to undo the recent EI changes—at least the bulk of them—but it is also imperative that improvements be made, especially as regards access to EI.
My presentation will focus on three areas. First, I will talk about repealing the recent changes. Second, I will recommend measures to improve access to EI. Third, and finally, if I have enough time, I will address enhancements to the program.
As far as EI reforms go, mainly two major changes had serious consequences: one, the new definition of suitable employment; and two, the new method for challenging EI decisions by the Employment Insurance Commission.
On the subject of suitable employment, there have been been few cases reported in Quebec of claimants being disqualified for refusing suitable employment. The fact is that few people have been disqualified for this reason, but we believe that the protests and objections stemming from these changes resulted in a less strict application of the disqualification provisions. Our sense is that a directive was given to enforce these regulatory provisions on a more limited scale, or a more flexible basis, if you will.
What's more, this definition may have caused unemployed workers to behave differently given the potential problems associated with filing an EI claim. On the one hand, people heard about and saw all the problems tied to the reforms. On the other hand, each claim is recorded and could therefore push an unemployed person from one category to another and render them subject to other consequences.
We are therefore calling on the Government of Canada to repeal the changes and reinstate the pre-2012 definition to section 27 of the Employment Insurance Act. In our view, the new definition violates fundamental rights, including the right to freedom of choice of employment, the right to unemployment protection, and the right to social security. We further believe that this definition discriminates against certain categories of workers, in particular, women, vulnerable workers, immigrants, seasonal workers, and young people.
That's all for that recommendation.
When it comes to the method for challenging the Employment Insurance Commission's decisions, we are calling on the government to abolish the Social Security Tribunal. Not only does the mechanism give rise to inordinate delays, but the very way it operates causes miscarriages of justice. We have observed numerous problems tied to the Social Security Tribunal and the method for challenging EI decisions. For that reason, we are recommending that the mandatory administrative review step be eliminated. The administrative review by the Employment Insurance Commission used to be optional. Previously, the claimant could proceed directly to the board of referees stage but now has to go through the administrative review. The step lengthens wait times, especially for those who will nevertheless have to appeal to the General Division, and the Appeal Division after that.
Furthermore, decisions do not have to be rendered within a certain timeframe. The wait times are excessive. Some claimants have had to wait up to a year before having their case heard. Then, it can be months before the unemployed worker receives the decision, since there is no prescribed timeframe for the tribunal to make its determination.
Summary dismissal is another serious problem, with some people not even having the possibility to be heard. When their cases are reviewed, their application and their request for leave to appeal to the Appeal Division are dismissed outright. They are actually being denied their full-fledged right to appeal, particularly in person. We have noted that in-person hearings are being bypassed in favour of video conference or telephone hearings, creating problems for some claimants.
We have also noted that the number of appeals has declined by 85% and that only 15% of unemployed workers who receive a negative decision following an administrative review end up taking their case to the Social Security Tribunal. MASSE believes that this mechanism discriminates against unemployed workers and discourages them from asserting their right to benefits. The mechanism, then, is clearly problematic.
Another consequence of the EI reforms was the non-renewal of the pilot project to extend the employment insurance benefits by five weeks in certain economically disadvantaged regions. We are calling on the government to reinstate the pilot project, which was not renewed, thus restoring the additional five weeks of EI benefits provided to unemployed workers in economically disadvantaged regions. This recommendation applies to regions where the extended coverage was previously in effect, as well as the new regions identified in the budget.
I'm not sure whether you're familiar with the infamous black hole, the period of time between the end of benefits and the return to seasonal employment. In some cases, workers have no income whatsoever during this period.
Now I will touch on the other recommendations.
We are recommending that the eligibility threshold be set at 350 hours or 13 weeks. This is a hybrid measure that would improve access to the EI system, while taking into account the restructuring of the labour market.
MASSE believes that the government should abolish disqualifications of more than six weeks. We have always opposed the 1993 measure, which can result in total disqualification from the EI program in the case of voluntary departure or misconduct. In our view, the disqualification period should be limited to a maximum of six weeks in all cases. This would allow workers to maintain their fundamental right to protection against unemployment, while still punishing, albeit more reasonably, certain conduct considered to be non-compliant such as refusal of suitable employment, voluntary departure, or misconduct. We believe that disqualification for six weeks would be dissuasive enough to curb potential abuse.
We would also like to see the benefit rate increased to 70% and calculated based on the best 12 weeks. While that may seem like a lot, as I mentioned earlier, an October 2014 study by the parliamentary budget officer showed that, had the government not lowered premium rates and left them intact, it would be possible to raise the benefit rate to 68%. That means, then, that 70% is a realistic target. Given the surplus in the EI fund, it would be possible to increase the EI wage replacement rate without placing an additional burden on employers, at least in the short term.
In addition, MASSE is recommending that the government establish a minimum floor of 35 weeks of benefits. We believe that would constitute a reasonable period of time, taking into account the multiple factors that can affect a job search, which vary from person to person. Those considerations should be taken into account. At the same time, it is our view that the regional unemployment rate is not an adequate measure to determine the number of weeks of benefits or an unemployed worker's access to benefits.
Thank you.