Madam Speaker, I welcome the opportunity to speak to the bill, formerly Bill C-44, which has generated a great deal of debate and discussion around the country. It is certainly a matter of great interest in my constituency in Nova Scotia, Pictou—Antigonish—Guysborough.
The changes that we are discussing result from callous changes that were made by the Liberal government to the insurance plan in 1997 which resulted in a public backlash that was attempted to be remedied by the government in the wake of the 2000 election.
Now in typical Liberal fashion, the call of the election resulted in the death of the bill. We saw that with a number of important pieces of legislation. While on the hustings though, the Liberals dangled former Bill C-44 in front of the faces of Atlantic Canadians in particular. Seasonal workers of course were those who were most vulnerable on this particular piece of legislation.
Hopefully, this early calling of the bill, the debate that has ensued and the opportunity again to revisit these issues at the committee is an indication that the Liberals are in fact quite serious about passing this legislation and bringing about improvements that will enhance the ability of seasonal workers to benefit from the bill.
In my riding of Pictou—Antigonish—Guysborough the problems with employment insurance are major issues of concern. Whether I spoke to workers at Trenton steel plant, farmers in Lismore or fishermen in Canso, the same complaints were prevalent when addressing their EI concerns. The issue of undeclared earnings was by far the number one complaint throughout the riding and was given particular priority by those who engaged in shift work at the Trenton Works Ltd. steel plant in Trenton, Nova Scotia.
Just to elaborate, there is a loophole in the undeclared earnings section of the Employment Insurance Act which allows the government to claw back moneys from individuals as an overpayment even though the claimant never receives the benefit. That is the crux of the issue. In essence, the government is taking money back on earnings that were never actually realized by the employer.
I spoke to members of the HRDC local office who administer the EI claims in the maritimes and they too have expressed concerns over the manner in which this particular section is implemented.
For example, during the weeks where a shift worker is employed, the worker does not expect, nor does he receive any EI benefits. At the end of hard week's work, the worker then fills out an EI claim and sends it to be processed. However, the problem arises if the worker is then asked to work overtime. That is there is a change in the situation because of an overtime job that requires the worker to be called back in. The worker, in some instances, has already sent in the card. This is not an issue where the individual is trying to deliberately mislead anyone, it is simply a change in circumstance.
What then happens is the overtime hours will not be included in the declaration of hours worked. Often a worker does not bother to phone the HRDC office to report his or her additional hours because the person knows that he or she does not qualify for benefits for that particular week. The person knows that making a change in the original card submission will only cause delays in the processing. Sadly, those who are reliant on these government cheques are in a catch-22. They are afraid, in essence, that they will receive no benefits if they are forthcoming with this information. There is also a shortcoming in their ability to communicate this.
I know there have been attempts to deal with this anomaly by setting up a 1-800 number. Again, it is very difficult for the worker on shift work to provide that information to the local office. The delays often result in a longer wait for claims where individuals are not able to work or are not called in to work and are therefore in receipt of no income.
Still when an EI representative phones the employer to confirm how many hours the employee has worked, the discrepancy becomes evident quite quickly. The employee is then penalized for having submitted a fraudulent claim.
There is an issue that has to be addressed. There is an opportunity in this particular bill to address this anomaly. The penalties for fraudulent claims are enormous and unnecessary. The penalty covers the entire period of pay as opposed to the pay week where the infraction occurred. There is almost an issue of double jeopardy here. Thus the employee's penalty would claw back the much needed money even from weeks where the hours of work were properly reported and a blanket penalty would be imposed.
All of this may sound convoluted to any individual who has never availed themselves of seasonal employment and been on the EI system. For those who have, this is a real dilemma for seasonal workers.
I know my time is short. I look forward to the opportunity to continue participation in this debate when we resume the matter tomorrow. I know the time is here to conclude for the day, but I respect the Chair's indulgence and look forward to further participation.