Mr. Speaker, I almost hate to break up this Bloc-Reform love-in on a government motion which puts forth provisions for a discussion paper and discussion on something that is very important to the country.
The changing nature of employment over the past several years has had considerable impact on the unemployment insurance program. Since UI is the key component in social security, it is essential that we revitalize the program to meet the needs of all Canadians in all provinces in the 1990s and beyond.
Originally UI was intended to provide temporary financial assistance for workers between jobs. Today people use UI for long term support and many use the programs repeatedly. Last year 13 per cent of unemployed Canadians had been out of work for a year or more. Compared to 1976 that is three times the level of long term unemployment.
Almost 40 per cent of UI recipients have claimed benefits at least three times during the previous five years. The number of frequent claimants has almost doubled in 13 years.
The problem with UI is not the claimants. The problem is the program. It works well for people who require short term help while looking for a job, but it does help workers who need to adjust to the changing economic structure.
Many individuals alternate short periods of work with periods of receiving UI benefits. It becomes a way of life. These UI recipients need more than basic support. Their problem is more complex. They may need skills training, even basic academic upgrading or some counselling to get started in a new, more stable occupation.
A recent study by StatsCanada suggests that some employers take unfair advantage of the program. They do so by organizing schedules around the required number of weeks people need to qualify for UI benefits. Employers plan layoffs to coincide with UI qualification periods and plan recalls when worker benefits come to an end.
The business community complains that increases in UI premiums discourage job creation. Since premiums often increase during the latter part of a recession, we are taxing jobs at the worst possible time. Also, due to the changes in the labour market many more workers are not covered by UI. This is especially true for women and young Canadians.
What we need is an effective, sustainable insurance program that recognizes an individual's responsibility to become self-reliant. At the same time the program must ensure an income support system for those who truly need it.
To that end, we are recommending for discussion two possibilities for revitalizing UI. One approach calls for a new employment insurance program that closely integrates assistance with employment development services, or we could adjust the existing UI program to discourage abuse and better serve those who genuinely need it. Some elements overlap in both approaches. A new employment insurance program could divide benefits into two kinds: basic insurance and adjustment insurance.
Under basic insurance occasional users of UI could receive help returning to work much as they do now. These claimants could receive UI benefits and training employment programs more or less as they do now. Basic insurance would include the special benefits available in the current system. This insurance
would be for those who are caught between two jobs or who may need some assistance on a temporary basis.
Adjustment insurance could be available to frequent claimants. Who is a frequent claimant would have to be determined. For discussion we are using the example of a person who files three or more claims in five years. As well, adjustment insurance would consider regional differences in the workforce.
Other questions under adjustment insurance include: How long should a claimant draw these benefits? Should adjustment benefits be income tested? Should adjustment benefits depend upon a claimant's willingness to participate in adjustment programs? In considering the answers to these questions it will be important to recognize the significance of the UI system to many parts of the economy and in many parts of the country.
A fair approach which allows people to respond and adjust will be important. That is one approach, a new employment insurance program. A second approach, adjusting the current UI program, would not distinguish between occasional and frequent claimants.
We can increase the time a person had to work to qualify for UI, or we could reduce benefits by shortening duration and/or lowering the level of benefits. This approach would free up significant resources for reinvestment in employment programs, but it would not identify claimants who require the most help in staying employed. Those most in need of income support will not receive adequate assistance. Nonetheless this approach might be taken in conjunction with the first to create an equitable and balanced reform strategy.
As well, UI reform must address the needs of the workers in non-standard employment: part timers, self-employed, temporary workers, and people with multiple jobs. Last year more than 60 per cent of all new jobs were part time. Many of these workers are not fully covered or not covered at all.
We also have to determine the best way to fund the renewed insurance program. Employers and workers are concerned about how UI premium rates are set. Higher premiums are killing jobs. We need to think about how the burden of premiums is shared.
Options for improving funding include: building a surplus in the insurance account during strong economic growth; requiring employers to pay premiums on their total payroll; expanding earnings subject to premiums; increasing premium rates for those who use the program the most; and reducing premiums for employers who support training.
Funds saved from a revitalized UI program could be used to reduce premiums or to make employment development services more effective. The two must work hand in hand.
Employment development services help the chronically unemployed by offering them job counselling, training, labour market information and work experience. When people move from welfare to work, employment development services are a good investment. Unfortunately they do not do that often enough.
Employment development services need to be flexible, to be tailored to individual needs and community opportunities. We must give more UI claimants personalized job counselling that directs them toward the specific help they require. Up to date relevant information about job opportunities would help people make better informed decisions about jobs, training and education.
Millions of adults require additional training in reading, writing and arithmetic, the basic skills essential for almost all employment. The federal government sends UI recipients to classroom courses but again training must fit individual needs. Workplace training provided by employers is often the most effective approach. To encourage this we could offer employers tax credits, levies for training and paid educational leave.
Another consideration is to supplement wages for unemployed workers facing specific barriers to employment such as persons with disabilities or long term unemployed workers who may need an extra bit of support to break into the labour market.
Much of the success of employment development services depends upon good management. Success should be measured by results, not by bureaucratic enforcement of the program's rules. We should consider setting broad goals and then inviting local communities to decide which programs will best achieve those goals.
Once again effective EDS will require effective partnerships. We have invited the provinces and territories to plan many employment development services and to manage the purchase of institutional training. The province could manage single window offices to bring federal-provincial programs under one roof. This would make access easier for both UI recipients and those on social assistance who should also have access to EDS.
We must do more to help people with disabilities overcome barriers and become fully integrated into Canadian society. Constructive partnerships could lead to more accessible workplaces, flexible working conditions, appropriate training and better management practices for persons with disabilities.
I know hon. members appreciate the complexity and magnitude of reforming UI and adjusting employment development
services. I trust the ideas I have presented will help them prepare input for the government's discussion paper. I look forward to hearing the responses of my hon. colleagues.