40th PARLIAMENT, 2nd SESSION
EDITED HANSARD • NUMBER 108
CONTENTS
Thursday, November 5, 2009

Employment Insurance

Ms. Jean Crowder (Nanaimo—Cowichan, NDP):

Madam Speaker, I am rising on a question that I raised in the House on June 3 of this year with respect to employment insurance. It was about the fact that the Catalyst Crofton pulp mill was laying off workers and it was in the context of a lot of other forestry sector workers that were being impacted. Specifically, I indicated that there would be no severance package for Catalyst workers and, instead, the employer was negotiating a plan to top up EI benefits, as had been done in Sudbury. I asked the minister to explain whether these sub-plans would trigger clawbacks. It is ironic that I am now raising this question again in the House.

The answer I got from the minister did not indicate what the government would be doing about the clawbacks for these laid-off workers. Since that time things have not been a lot better in the forestry sector, at least in my riding and other parts of British Columbia.

I recently received a letter from the Catalyst - Timberwest Retired Salaried Employees Association indicating that not only did some of them lose their jobs through layoffs, but some of them ended up taking retirement and now their pensions are under threat. As well, they are not getting full entitlement to employment insurance. In its letter of October 26, the association indicated:

Currently both the underfunding of the pension plan and the non-pension benefits are considered unsecured debt, and has one of the lowest claims on funds.

In a letter of October 28, one of the workers said:

I am a retiree of a forestry company in British Columbia. The quarterly financial and economic reports of our Company indicate that it is in a survival mode in an industry that no one is predicting will turn around soon. I am very concerned that the company will seek CCAA or Bankruptcy protection while my pension fund is between 25% and 30% underfunded.
If this occurs, I anticipate losing 25 to 30% of my pension and all of my medical benefits earned while I was working.

I specifically raised the point around employment insurance, but what is becoming increasingly clear is not only do workers not get adequate employment insurance when they are in a temporary layoff, but when they are in receipt of company pensions that they expected would support them for their retirement years, they are also under threat in terms of the pension.

Given the circumstances that many workers in forestry and manufacturing in this country are facing with continuing lack of productivity in the workplace and the uncertainty surrounding economic recovery, I would like to ask the parliamentary secretary if the government is entertaining some additional changes to the employment insurance legislation.

We welcome some of the changes that we have seen come forward, certainly, the additional weeks in Bill C-50, and we welcome what is happening with Bill C-56 with respect to employment insurance for self-employed workers in particular categories, but that is simply not enough.

I want to point to some of the things that New Democrats have requested: a reduction in the number of hours that are required to qualify for employment insurance; an increase in the number of weeks; some standardization across this country in the number of weeks to qualify; and an increase in the benefit rate. We know that for many workers the current benefit rate simply does not reflect the cost of living and the reality in many people's communities.

When it comes to the unemployment rate, I have mentioned a number of times in this House that we have had no movement from the government to change it, but the differential rates in calculating benefit rates simply disadvantage communities like mine.

Is the government entertaining future changes to the Employment Insurance Act that would reflect the needs in our communities?

Mr. Ed Komarnicki (Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour, CPC):

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.

Ms. Jean Crowder:

Madam Speaker, I want to thank the parliamentary secretary for the clarification on the SUB program because he is absolutely correct, it is very technical in nature.

We were having some concerns from the employees from Catalyst because we simply were not able to get clarification at the local level. The employees at the local level are very good to work for, but this was an usual situation.

I want to ask the parliamentary secretary, once again, are there future plans that he is aware of to make some modifications to the employment insurance system? Again, we have many workers who continue to be laid off, many workers who are now running out of employment insurance and are not eligible for some of the other programs.

Again, in my area, workers are disadvantaged because our unemployment rate is actually tied to the Vancouver labour market. The Vancouver labour market simply does not reflect the realities on Vancouver Island. We would welcome some other changes that looked at some balancing out of the unemployment rates, so that people actually can collect benefits that are reflective of the labour market in their region.

Mr. Ed Komarnicki:

Madam Speaker, obviously we are doing whatever we can to ensure that we can help those who are affected in their workplace. We have done that with skills training and upgrading with $1.5 billion, on top of $2.5 billion. We froze EI premiums that will in itself insert about $10 billion into the economy. Wherever the unemployment rate goes higher, it takes less weeks to qualify for longer benefits.

As I mentioned, Bill C-50 has passed. It adds 5 to 20 weeks of benefits as a bridge to the career assistance plan program. The self-employed will be able to enter the program. There is the five extra weeks we have added across the board, and we have extended the work-sharing program. We have made it more flexible.

We are always monitoring what is happening in the economy. We have been reacting to it as we felt appropriate and reasonable. We will continue to monitor the situation. We will see where it goes from there.

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