Madam Speaker, I welcome the opportunity to speak to the bill proposed by the member from Hochelaga-Maisonneuve because it brings to the attention of the House the very difficult adjustment problems faced by laid-off older workers.
These problems have caused the government to arrange a cost shared program to offer assistance for older workers who have been involved in major layoffs and this program has been in place since 1988.
Under the program, the federal and provincial governments have purchased annuities to provide income assistance to 9,000 older workers. The federal government has contributed $254 million, the provincial governments, $109 million as their respective portion of cost.
The effect of the bill proposed by the hon. member from Hochelaga-Maisonneuve will be to change one of the major criteria of the program for older workers adjustment and to place that change into the Department of Labour Act.
At present, the program criteria are contained in the cost shared framework agreements negotiated and signed by the federal government and the participating provinces. The bill would make one of the layoff designation criteria part of the law. Specifically, the bill would allow any layoff involving at least 20 employed workers to be eligible under the program. This bill would significantly change one of the fundamental concepts behind and the criteria for eligibility in the program for older worker adjustment.
Presently, to be eligible under the program, a layoff is considered relative to the size of the community. This consideration is directly related to the degree of difficulty that laid off older workers will face finding new employment. The more laid off workers with similar skills, the greater the competition for jobs and the degree of difficulty in finding a job also depends on the size of the labour market.
Under the current federal-provincial framework agreements that govern eligibility at least 20 workers must be laid off in communities with a population of 10,000 or less and at least 100 laid off in communities with a population of more than half a million. There are various categories in between.
I have no difficulty with proposals to change the numbers involved. In fact, the lower numbers might even be an improvement, but a graduated entry requirement is a way of measuring both the hardship faced by the laid off workers in finding re-employment and the disruption to the community caused by the layoff.
On the other hand, to establish in law a universal minimum would mean that practically all layoffs would need to be covered, thereby removing the targeted measures of limited prospects for re-employment and significant economic disruption in a region. The effect would be to change the fundamental program criteria and that without any consultation with our provincial partners.
The bill is well intentioned and it would help more older workers. However, I am concerned that if enacted it could potentially cost the federal and provincial governments billions of dollars. As we know, during times of scarce resources the measurement of targeting mechanisms contained in present legislation could be overwhelmed by sheer volume and drive cash strapped governments out of the program. That would not help unemployed workers.
Where in the event that criteria were changed without commensurate funding increases, the advantage that smaller communities have now because of the graduated entry requirements would result in small communities being left behind.
The government recognizes the needs of unemployed older workers and has programs in place to help those in greatest difficulty. Improvements need to be made to address the needs of older workers and that is being done in the social policy review.
I would bring to the attention of the House a program that was instituted between the federal government and the province of New Brunswick called Jobs Corps, where older workers are allowed to earn up to $1,000 a month for a year and in return would work for 26 weeks. They could earn up to $8,000 on top of that without penalty to the original $12,000.
The government recognizes the need to help older workers who are trying to move in a direction of active programming to decrease the potential for dependency and away from passive programs.
I appreciate the opportunity to speak to the member's motion. I encourage the member to participate in the social policy review process and welcome consideration of all of his ideas.