HomeMy WebLinkAboutCAO-09-042 - Employment Insurance Reform - Response to Wat Reg Labour CouncilREPORT
REPORT T0: City Council
DATE OF MEETING: August 24, 2009
SUBMITTED BY: Rod Regier, Executive Director of Economic Development
PREPARED BY: Michael May,
Director of Corporate Communications and Marketing
WARD(S) INVOLVED: All
DATE OF REPORT: August 19, 2009
REPORT NO.: CAO-09-042
SUBJECT: Employment Insurance Reform
RECOMMENDATION:
That the following motion on employment insurance reform, as approved by the Federation of
Canadian Municipalities at its 2009 annual conference be endorsed:
BE IT RESOLVED that the Government of Canada introduce the following changes to the EI
system to ensure all unemployed workers across Canada are treated equally:
a) allow more unemployed workers to be eligible for EI by reducing the number of hours of
work hours required to qualify; and
b) eliminate regionalization of EI eligibility and benefits (which are tied to regional
unemployment rates) and moving towards a system which is based on a minimum number
of hours worked that would be the same across the country; and
c) enhance benefits from current levels (55% of claimant's weekly average earnings);
d) eliminate the 2 week waiting period for EI.
REPORT:
On August 10, 2009, the Waterloo Region Labour Council presented the Finance and Corporate
Services Committee with a resolution on the topic of employment insurance reform. At that time
committee members indicated a desire to review the labour council's motion alongside a motion
on the same topic which was passed at the 2009 annual conference of the Federation of
Canadian Municipalities (FCM}.
FCM Motion on Employment Insurance Reform
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FCM's motion on employment insurance reform calls on the Government of Canada to make
changes to the employment insurance system aimed at ensuring all unemployed workers
across Canada are treated equally. This motion recommends a reduction in the number of work
hours required to qualify; eliminating the regionalization of employment insurance eligibility; an
enhancement of benefits (to 55% of weekly earnings) and elimination of the two week waiting
period. The approved motion reads as follows:
BE IT RESOLVED that the Federation of Canadian Municipalities call upon the Government of
Canada to introduce the following changes to the EI system to ensure all unemployed workers
across Canada are treated equally:
a) allow more unemployed workers to be eligible for EI by reducing the number of hours of
work hours required to qualify; and
b) eliminate regionalization of EI eligibility and benefits (which are tied to regional
unemployment rates) and moving towards a system which is based on a minimum number
of hours worked that would be the same across the country; and
c) enhance benefits from current levels (55% of claimant's weekly average earnings);
d) eliminate the 2 week waiting period for EI.
Waterloo Region Labour Council Motion on Employment Insurance Reform:
The resolution presented by the Waterloo Region Labour Council is more specific in nature. The
resolution proposes 360 hours to qualify; increased benefit duration to at least 50 weeks in all
regions; an additional year of "special extension" benefits; increased benefits to at least 60% of
normal earnings; suspend allocation of severance pay; and, eliminate the two week waiting
period. The resolution reads as follows:
WHEREAS a healthy unemployment insurance system is the most powerful of all economic
stabilizers and in the recessions of the early 80's and 90's UI prevented deeper, longer
downturns and reduced the shock of job and GDP losses;
WHEREAS we have entered this new economic crisis with a much weaker EI system that
provides only half of the coverage it did in the last recession because fewerworkers qualify and
benefits weeks are reduced;
WHEREAS the federal government stopped contributing to EI and diverted EI premiums to
other spending ($54billion between 1994 and 2007);
WHEREAS even the U.S. government has shown leadership through major improvement in the
duration of UI benefits and a universal benefit top-up as part of the stimulus package to deal
with the crisis;
WHEREAS there will be negative fiscal impact on all municipalities if residents are unable to
access EI benefits or otherwise maintain incomes during this economic downturn, due to the
increased reliance on locally provided social programs,
THEREFORE BE IT RESOLVED that the City of Kitchener call upon the Government of
Canada to introduce the following changes to the Employment Insurance System:
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1) 360 hours to quality for EI benefits in all regions of Canada,
2) Increase benefit duration to at least 50 weeks in all regions,
c. Provide an additional year of "special extension" benefits if national unemployment
exceeds 6.5%, paid from federal general revenues
d. Extend EI Part I benefits while a worker is in approved training
3) Increase benefits to at least 60% of normal earnings, using workers' 12 best weeks, and
raise the maximum, suspend the allocation of severance pay and eliminate the two-week
waiting period.
Conclusion:
Adopting either the FCM or the Waterloo Region Labour Council resolutions would provide the
Government of Canada an indication of the importance of employment insurance reform to this
community.
Staff believe that adopting the FCM motion would ensure a consistent and therefore stronger
message is sent to the Government of Canada on this issue from Canada's municipalities.
In addition, the FCM motion would provide the Government of Canada with greater flexibility to
consider and implement any number of possible changes to employment insurance that would
reach the ultimate end goal of improving the system for residents of this community and across
Canada.
ACKNOWLEDGED BY: Rod Regier, Executive Director of Economic Development
Michael May, Director of Corporate Communications & Marketing
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