Mr. Speaker, once again I have the privilege of taking the floor and speaking on a bill to amend the Employment Insurance Act.
It is common knowledge that the Bloc never lets up on its efforts to make substantial improvements to the employment insurance program, which has become no more than a shadow of its former self. As a result, it unfairly penalizes workers who have faithfully contributed to it their whole working lives.
While definitely necessary, reducing eligibility to 360 hours regardless of region of residence is only the first step, and in no way sufficient on its own. The reform the Bloc Québécois has been urging for ages, along with the NDP, goes a great deal further. Excluding severance pay, retirement pensions and allowances, as well as vacation pay is, in our opinion, an integral part of the reform that should be enacted urgently.
In 1984, during the Progressive Conservative government, then Minister of Finance Hon. Michael Wilson announced as part of his economic update that, in future, benefit calculations would include payments made on termination of employment.
Three years later, in 1987, that same government announced that no benefits would be paid until potential recipients had used up their severance pay, this period being calculated by dividing the amount of severance pay by the salary earned in the last week worked.
For example, a person who earned $500 a week and received $5,000 in severance pay would have no benefits and no income for 10 weeks. Then there would be another two weeks added for the waiting period.
We believe this situation is unfair to workers who have been dismissed, since it their severance was not the result of poor work performance and still less of voluntary separation.
It is obvious that employment insurance is a public insurance program and it must not by compared with private insurance in any way. If we do that, there is a danger of falling into an approach that is contrary to governmental logic, which should focus on the common good and not on supporting mercantile or commercial interests.
Yet that is exactly how one government after another has behaved for the past 15 years.
I would even go further than that: not only have they subverted the social mission of the program, but they have replaced it with a focus on profit, a change in direction that has made it possible for them to stash away $57 billion in profits, at the expense of the unemployed.
The worst, ultimately, was that not only did this system become a government pseudo-corporation operating like the private insurers, but it did worse things that any private insurer would do.
What kind of private insurer would ask its clients who had had a fire, for example, to exhaust their own savings before it would provide the amounts still needed for them to restore their property?
It would be unworthy of a company that is the least bit serious and it is simply shameful of a government. It is indecent when we know that the tiny savings which flow from these measures but have such devastating effects on the unemployed would have been made up a hundred times if the government had not dipped so copiously into what should have been a cumulative reserve employment insurance fund.
Fifty-seven billion dollars: that is an awful lot of money that would have been very useful now that the unemployment rate has reached its highest point in 11 years. More than 400,000 full-time workers have lost their jobs and more than half of them will probably not get any employment insurance.
Fifty-seven billion dollars: that is enough money to eliminate the waiting period for 63 years.
Over the last 20 years, the coverage of the employment insurance system has fallen by half. The beneficiaries to unemployed ratio has fallen from 84% to 44% because the eligibility criteria were considerably tightened, though unjustly so, in the 1990s.
It is high time for the government to finally acknowledge this injustice and do everything in its power to fix it.
The Bloc Québécois and the NDP are not the only ones denouncing it. All labour unions and groups that defend the rights of working people have also been denouncing this injustice, which has led to the perversity of an employment insurance system that does not cover even half of those who are unemployed.
In 2005, the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities adopted a report with 28 recommendations that were almost all ignored by the Liberal and Conservative governments. One of these recommendations expressly addressed the issue of excluding from the calculation of people’s benefits all forms of remuneration they receive upon leaving their jobs.
I quote the report.
The Committee recommends that the government amend the Employment Insurance Regulations so as to not consider pension, severance and vacation income in the determination of earnings for benefit purposes.
It must be noted once again that the committee's work was totally ignored. That is wholly deplorable. Nothing justifies this sort of attitude, which reveals the government's alarming indifference to its social mission. The Bloc will remain critical of this indifference so long as it leaves the unemployed in their current, untenable situation.
This is why we have introduced no fewer than four separate bills to make substantial amendments to the employment insurance plan. Thus, we hope to have the program that became a labour tax at the end of the 1990s and in the early 2000s once again become a program that really protects workers by providing them with financial security between jobs, that is, while they are unemployed.
The creation of the Canada employment insurance financing board in February 2008 seemed like a first step in this direction. But the 2009 budget has frozen contribution levels for the next two years. It seems that the Conservatives' sole concern is to have big business make economies of scale on the few cents per $100 that would be needed to improve the rate of coverage of the plan significantly.
They made a choice, that of big business over workers. They chose to drop the thousands of workers who, rather than benefiting from the support of a plan they pay into day in, day out, without skipping the two week waiting period, find themselves penalized because they receive whatever their employer owes them.
It seems, however, that penalization is the leitmotif of the Conservatives—penalization more severe than the crimes, minimum sentences, the two week waiting period penalty before employment insurance benefits are paid and, now, a penalty for workers who are less badly off than others.
If an employer gave laid-off employees a watch in gratitude, I think the Conservative government would take it into account in calculating benefits. By making sure the unemployed face serious economic difficulties, the government hopes they will return to work more quickly. This cynicism is not in keeping with the role of government. This is why my colleagues in the Bloc and I will vote in support of Bill C-279.