Mr. Speaker, as members know, Bill C-55, containing the Wage Earner Protection Program Act, was proposed and passed into law with the unanimous support of all political parties in the House of Commons and the Senate. Bill C-55 also includes a comprehensive reform of Canada's insolvency laws, including the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act. As such, Bill C-55 provided a balanced and complete package of reforms on bankruptcy.
In particular, the wage earner protection program has strong support from parliamentarians, labour unions, the insolvency community and employers. This program should be brought into force as soon as possible. The current insolvency system does not provide adequate protection for unpaid wage earners. An estimated 10,000 to 20,000 workers a year are left with unpaid wage claims due to employer bankruptcies. That is why the wage earner protection program was proposed. The program will improve the protection of workers during the insolvency process.
The protection of unpaid wage earners has been a major issue during every attempt at insolvency reform over the past 30 years and the issue has never been resolved.
The wage earner protection program will address this issue by providing certain payments of up to $3,000 to workers for unpaid wages and earned but unused vacation pay, so that payment of wages will no longer depend on the amount of assets of the bankrupt employer. It is estimated that this will satisfy 97% of unpaid wage claims in full. In addition, the wage earner protection program will provide prompt payment of wages so that workers receive payment of their wage claims when they need it most.
We cannot deny the importance of implementing this program in a timely fashion. However, before the Wage Earner Protection Program Act can come into force, some technical amendments have to be made to ensure that the program will be effective. The regulations necessary to operate the act must be prepared and considerable work needs to be done before implementation.
We do not have to convince Canadians that it is important to protect vulnerable workers who suffer an economic setback through no fault of their own. We do not have to convince Canadians that it is the right thing to do.
This government also understands that protecting Canadian workers when employers declare bankruptcy is the right thing to do.