Madam Speaker, there is no question this member raised a very technical point during her original question; however, today she speaks more generally.
As she may well know, we have Bill C-50 that would extend benefits by 5 to 20 weeks, which I understand has passed through the Senate and is receiving royal assent, or has. There is Bill C-56 for the self-employed, five extra weeks of benefits across the board, and work-sharing programs. Those are all significant improvements and there is the freezing of the EI rate.
Specifically to the question she raised and in dealing with the situation described especially in her original comments, HRSDC and Service Canada take many steps to help employers and Canadian workers. Whenever there is a threat of a company facing mass layoffs, Service Canada immediately moves in to work with the company, with the employees and with the union, if there is one, to try to reach an agreement that will help all of them get through difficult times.
It may be through work-sharing, a program we have enhanced for Canadians. It may be advising them of potential benefits, including the option for them to continue with long-term work studies so they can upgrade their skills. During this difficult time, the supplemental unemployment benefit program, or SUB as it is known, allows employers to provide top-up payments to claimants who are receiving EI benefits during a period of temporary unemployment, training or illness.
I should explain that one of the main objectives of the SUB program is to stabilize an employer's workforce. The reasoning is that workers will be more inclined to return to work when they are recalled. Moreover, if the claimants do return to their old workplace, they will be avoiding the need to go through the retraining process. So it is a win-win situation for everyone. The program is also designed to mitigate the adverse financial impacts that communities would suffer when massive temporary layoffs occur.
Please be assured that in the event of a temporary layoff, the payments under such plans are not deducted from the claimant's EI benefits nor are the payments during the waiting period. If the layoff is permanent, any employer payments to the claimant to top-up EI benefits would not be considered SUB payments.
The difference is that the workers will not be returning to work for that employer. In such a situation, the employers top-up payments to the EI benefits would be classified as earnings. As such, these earnings would be deducted from the EI benefits that were paid.
I should stress, however, that as a result of the working while on claim pilot project, claimants can earn up to 40% of their EI benefit rate before any deductions are made. This went into force December 2008. I would like to clarify that there is a short time during the mandatory two-week waiting period when there is no allowable amount of earnings. Any earnings during this period are deducted dollar for dollar.
This is the situation in the matter referred to by my colleague in her original question, and is somewhat technical in nature. As members can see, we are doing whatever possible whenever we can to ensure that the claimants do not endure unnecessary hardship. Where possible we try to work with them to make the situation better.