Thank you very much, Madam Chair.
I want to thank you on behalf of the more than three million members of the Canadian Labour Congress, workers who work in every industry from coast to coast to coast.
I want to say as well that this is a very important issue. Employment insurance is critically important, and especially critically important to women.
It's especially important in tough times such as we face today. Laid-off workers obviously need adequate benefits to support themselves and their families while they search for a new job. Unemployment benefits are spent on necessities, they are an effective form of economic stimulus, and they help maintain hard-hit communities. People who are on employment insurance spend their dollars in their main streets. They don't sock them away in a savings account, they don't take trips somewhere, they don't have huge investments. Their investment is back into their communities.
Compared with those when we have hit previous recessions, our EI program leaves far too many workers out in the cold, and that's especially true for women, for young workers, for low-wage, insecure workers.
In November 2008, just four in ten unemployed workers qualified for benefits. The maximum weekly benefit of $447 today is more than 25% lower than in 1996, and the average benefit is now just $335 a week. The program does even worse when we consider what it does with women, and I'm going to give you some statistics on that in just a minute.
There were cuts in the mid-1990s in who is eligible and in the amount of benefits that are paid, and things sharply declined. In particular, they reduced the supporting role of EI for women.
EI income support during periods of unemployment, maternity, parental leaves, periods of sickness, or periods of compassionate leave is obviously important in terms of stabilizing and supporting family incomes. It also supports the economic independence of women in their communities, since the benefits are based not on family income, with the exception of a small supplement for low-income families—which, by the way, hasn't been raised for a large number of years, which means fewer and fewer people are able to access it....
Key EI program rules exclude or unfairly penalize women, because they fail to take into proper account the different working patterns of women compared with men. While the great majority of adult women now engage in paid work, the hours they work exclude many from EI benefits, as do periods of time spent away from work caring for children or others.
A study done by Monica Townson and Kevin Hayes, conducted originally for Status of Women Canada, showed that only 32% of unemployed women qualified for regular EI benefits in recent years, compared with 40% of men who were unemployed. Now, 40% for men is also an awful number, but the fact is that women's statistics are even worse. More than 70% of women and 80% of men qualified for benefits before the cuts were imposed in the early 1990s. The gender gap in the proportion of unemployed women and men collecting regular benefits has closed a bit, but it was still two percentage points in November 2008.
The gap is much bigger when it comes to average benefits. In 2006-07, the most recent year for which we have statistics—and there will be new stats coming out, apparently, next month—the average benefit for women was $298 a week, compared with $360 for men. That's a $62-per-week difference.
Women also qualified for shorter periods, on average. In 2005-06, 30% of women exhausted their regular benefits, compared with 26% of men.
Only about one-third of the total dollar amount of regular EI unemployment benefits is paid to women, even though women now participate in the paid workforce at almost the same rate as men.
Just to give you some other comparisons, parental benefits for men are on average $382 a week; for women, $331, a difference of $51 a week.
For sickness benefits, it's $343 for men and $277 for women, a difference of $66 a week.
For compassionate care, it's $364 compared with $318, a difference of $44 per week.
A key difference of the qualifying is that a person has to have worked in the previous year and must have put in between 420 and 700 hours of work, depending on the local unemployment rate. Workers in most large urban areas now have to put in at least 700 hours, roughly the equivalent of 20 weeks of full-time work. Fewer unemployed women qualify than men, because many women take extended leaves from work to care for children or others.
After a two-year absence from the workplace from paid work, the entrance requirement jumps to 910 hours, or more than six months of full-time work. When they work, women are much more likely than men to be employed in part-time, casual, temporary jobs, as opposed to full-time, permanent, year-round jobs providing steady hours. Because they don't have the qualifying hours, only about half of part-time workers who lose their jobs actually qualify for unemployment benefits.
The EI program now provides up to 15 weeks of maternity benefits and 35 weeks of parental benefits, 90% of which are taken by women. Expansion of the maternity and parental leaves stands as a major gain for working women in recent years, especially the 2001 increase in parental benefits from 10 weeks to 35 weeks. However, to qualify, a woman must have worked 600 hours in the previous year. About three-quarters of all women giving birth do qualify, and about 60% claim a benefit. However, a full year of leave is much more likely to be taken by women who qualify for a reasonable benefit and whose employer supplements the EI benefit.
Quebec has recently begun its own EI maternity parental program, which offers much higher benefits and also covers self-employed workers for the first time. I'd also refer you to an article that was written in Chatelaine magazine about a year ago called “Modern Times: The Myth of Mat Leave”, because it quite clearly lays out what the difficulty is here.
The government likes to argue that 80% of all currently employed workers would qualify for regular EI benefits if they were to lose their jobs. However, this ignores the fact that job loss particularly affects those with unstable patterns of work, such as workers on reduced hours before a layoff as well as part-time, temporary, and contract workers. It also ignores the fact that many unemployed workers qualify for EI for a shorter period of time but quickly exhaust their benefits.
In the run-up to the budget, many voices, including those of editorial writers, business leaders, provincial premiers, and the labour movement, endorsed our call for major improvements to the EI system. However, the government has largely failed to listen. The budget did nothing at all about access to benefits. Many workers, especially women, still have to jump that 910-hour hurdle for new entrants: about six months of full-time work. Seven hundred hours are still needed in many regions, and the budget did not improve the level of weekly benefits.
The budget bill did add an extra five weeks of eligibility to all claims, taking the minimum eligibility period from 14 weeks to 19 weeks and raising the maximum in a few high unemployment areas, those with over 10% unemployment, to 50 weeks. However, this is a temporary measure, and it will exhaust in September of 2010. The extension will benefit some unemployed workers, the victims of the recession, but by just $500 million per year in total. This is less than one-sixth of what will be spent on home renovation grants. These are grants, by the way, that unemployed workers won't be able to access, because on three hundred and some dollars a week, you're not going to be spending $10,000 to get a grant back.
The minister says she doesn't want to pay unemployment benefits to workers to just sit around. Quite frankly, this is an insult to many workers, more than a quarter of a million in the last three months, who have lost their jobs through no fault of their own and are now desperately seeking new jobs and training opportunities. It ignores the fact that those who find training places will still need an income on which to live. As a social worker for 17 years, I can say that people who are on unemployment insurance, welfare, or other kinds of social benefits want to be able to contribute. They don't want to be on those benefits. They want a job with a decent level of income.
The Canadian Labour Congress has called for lower entrance requirements of 360 hours of work across the country so that more workers would qualify when they are laid off.
We've called for longer benefits of up to 50 weeks so that fewer unemployed workers will exhaust their claims; higher weekly benefits based on the best 12 weeks—not the most recent 12 weeks, but the best 12 weeks—of earnings before a layoff; and a replacement rate of 60% of insured earnings, which by the way doesn't even get us back to the 1970s levels.
All of these proposals would help women. Reducing the entrance requirement would be particularly important in terms of helping to close the EI gender gap, because, quite frankly, you can do whatever you want to the system and make it look good in some kinds of benefits, but if people can't get access and if they don't have access at a reasonable level, then they're not going to be able to use the EI system.
Thank you.