Mr. Speaker, I am pleased to share my thoughts today on Bill C-624, An Act to amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act (providing protection for beneficiaries of long term disability benefits plans).
I would like to start by thanking the hon. member for Sydney—Victoria for introducing this proposed legislation.
The bill seeks to address the plight of beneficiaries of long-term disability benefits plans in cases where the employer has gone bankrupt. In essence, it aims to protect employees on long-term disability by granting them preferred status during bankruptcy proceedings.
The Government of Canada does not view the bill as the best approach to addressing the challenges these beneficiaries may face, but we agree that this is an important issue. Fairness and compassion matter to all of us as Canadians.
The Government of Canada understands the challenges faced by workers whose employers go bankrupt, including the possible reduction or loss of benefits, such as for long-term disability. That is why our government has already put in place a series of measures to help deal with the challenges these beneficiaries face. In fact, this issue was identified in the 2010 Speech from the Throne. We made a commitment to Canadians that we would look at how we could better protect workers when an employer faces these kinds of difficult circumstances, and we are delivering on that promise.
We have consulted with citizens and are exploring workable, lasting solutions, but we are doing even more than that. We already have initiatives in place that are making a difference.
I would like to take a few minutes today to outline what the Government of Canada is doing to support Canadian workers and to provide the protection they need while maintaining a balanced approach.
The government recognizes that when an employer goes bankrupt, employees are often left in a difficult situation in regard to wages. Through no fault of their own, they can suddenly find themselves struggling to make ends meet. That is bad for workers and their families and it is bad for our economy.
In response, our government established the wage-earner protection program, or WEPP. It provides timely compensation to employees who are owed money when their employers go bankrupt. As a result of this important program, eligible workers who lose their jobs and are owed money because their employer has gone bankrupt, or has become subject to receivership, are now compensated for unpaid wages and vacation pay. They are also eligible for more recent severance and termination pay up to a maximum of approximately $3,400.
The WEPP was expanded in 2009. As a result there has been improved financial support for Canadian workers during the economic downturn, as more Canadians have been able to qualify for WEPP financial support and to secure higher average monetary claims. As a result, since January 2009, over 30,000 WEPP claimants have received almost $67 million in payments. In other words, the WEPP has made an important difference to those in need.
We have also taken action to ensure better pension regulation in Canada. In December 2010, a number of regulatory amendments were proposed to the pension benefits standards regulations.
The proposed amendments are designed to make federally regulated private pension plans less sensitive to financial market volatility while protecting plan members and retirees. It calls for four key measures.
First, it would permit plan sponsors to secure properly structured letters of credit in lieu of making solvency payments to the pension fund, to a limit of 15% of the plan assets.
Second, it would require plan sponsors to fully fund pension benefits on plan termination.
Third, it would render void any amendments to a pension plan that would reduce the solvency ratio of the pension plan if the plan's solvency ratio is below 0.85 or the amendment causes the solvency ratio to fall below 0.85.
Fourth, it would introduce a distressed pension plan workout scheme.
These changes are part of the Government of Canada's overall commitment to further strengthen the retirement income system for our citizens. This is the kind of action that Canadians have been asking for and that we have been delivering.
The Government of Canada stood side by side with Canadians during the recent global recession. We have worked very hard to ensure citizens have all the tools and all the support needed to ride out challenging times. We moved quickly to protect jobs. We have also invested in an unprecedented two year $62 billion stimulus program to create jobs, to strengthen innovation and to build for the future.
From major infrastructure projects to reductions in personal and corporate taxes, from support for the unemployed and those at risk of losing their jobs to transfers to provincial and territorial governments for training, we have invested wisely in Canada and in its people.
Our efforts did not stop there. Some $13.3 billion have been directed in targeted efforts to support regions and industries hardest hit by the recession.
In addition, we also developed measures to allow for greater access to employment insurance benefits. This included extra weeks of benefits and extensions to work-sharing arrangements for eligible recipients. Combined, these initiatives have helped over one million workers and their families. The enhancements to the work-sharing program have meant that more workers have been able to keep their jobs while employers have retained skilled workers with years of experience.
Our government believes in maintaining a fair and balanced approach to this issue. We are determined to continue showing our capability and capacity to act so that workers know that they will be protected.
Through Canada's economic action plan, our government has acted decisively to protect livelihoods. We have acted to protect incomes. We have worked hard to help create jobs and to ease credit markets. Just as important, we have taken steps to help ensure that workers get back on their feet.
We also emphasized in the Speech from the Throne and elsewhere that jobs and growth remain the top priority for Canada.
There is a need for balance. We need to protect workers. We also need to protect our nation's economic competitiveness, something that we have all worked so hard to build and maintain.
