Harper’s EI reforms don’t go nearly far enough

'We need serious reforms that improve access to the EI program and enhance benefits in order to help families who are reeling from this economic crisis.'

Ottawa (25 May 2009) – The Harper government has let Canadians down again, proposing changes to the Employment Insurance (EI) program that fall far short of the major reforms needed to support vulnerable families and boost the economy, says the National Union of Public and General Employees (NUPGE).

"When it comes to the kind of support that families need during these tough times the prime minister has once again demonstrated that he has a tin ear,” argues James Clancy, NUPGE's national president.

“Canadians are hurting from this recession and yet our EI system leaves too many unemployed workers out in the cold,” said Clancy. “We need serious reforms that improve access to the EI program and enhance benefits in order to help families who are reeling from this economic crisis. Yet today’s announcement is totally underwhelming.”

The Harper government has rejected a broad package of reforms that has been proposed in recent months by trade unions and opposition political parties. Instead, it has repeated its promise from the January budget to provide $500 million to help laid-off, long-tenured workers upgrade their skills.

"Of course we support enhanced skills training for workers but it begs the question: training for what? The Harper government doesn’t have a job creation plan so what exactly do they want people to train for?” asks Clancy.

“Also, restricting job training to those who receive EI benefits is a problem, since only 40% of unemployed Canadians actually qualify for EI.”

Clancy says the Harper governments refusal to reform EI in a significant way also represents a missed opportunity to provide a badly needed jolt to the economy.

“Improving access and increasing benefits would have been the fastest way to put money in the hands of people who need it most and who are going to spend that money at local businesses in their community,”  he said.

If the Harper government really wants to help vulnerable families and stimulate the economy, he adds, it would overhaul the EI program in four specific ways:

• Reduce the qualifying period to a minimum of 360 hours of work, regardless of where someone lives in the country.
• Raise the rate of benefits to 60% and base benefits on the best 12 weeks in the qualifying period.
• Eliminate the two-week waiting period.
• Allow all workers, including the self-employed, to participate in the plan.

NUPGE

The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE

For more information:
Facts and Insights on Employment Insurance (EI) - pdf