The Liberal government pushed EI reform out of the federal budget this week, fearing that an overhaul of the program amid an economic downturn could push up premiums for workers and employers.
These are the explanations of a spokeswoman for the Minister of Employment, Carla , who declared that the federal government “remains committed to modernizing the employment insurance system”.
“However, the current and short-term economic context warns against measures that could put pressure on employment insurance premiums. We had to be careful of any decision that might make it harder for workers and employers to make ends meet,” the spokesperson said in an email.
After the last federal election, Prime Minister Justin Trudeau delivered a mandate letter that instructed Ms. Qualtrough to present and implement a “21st Century Modernization Plan for the Employment Insurance Program” by the summer. 2022.
At the end of the summer, the minister promised that the reform would arrive soon. “By the end of the year, you’ll know what the vision for EI is,” she said in September.
Several months into 2023, hopes were dim that the federal budget would finally hint at the government’s plans. Indeed, it mainly focused around the clean economy and health care, setting aside other items on the agenda.
The federal government, which now expects a slight recession this year, seems to be avoiding reforming employment insurance so as not to increase the cost of the program. A recession would probably be accompanied by job losses.
Expanding eligibility now could allow even more people to take advantage of EI.
A “lamentable status quo”
With this latest delay, unions and experts are growing impatient.
The Conseil national des chômeuses et chômeuses (CNC) reacted to the budget by asking the New Democratic Party (NDP) to withdraw its support for the Liberal government through the “support and confidence” agreement between the two parties.
“The disappointment is total, because the government is betraying its commitment. The status quo decided by this government is lamentable”, reacted the spokesman of the CNC, Pierre Céré, in a press release.
“Faced with this situation, we are asking the NDP to withdraw its confidence in the government and put its seats on the line,” continued Mr. Céré.
There is a long list of complaints about the program’s current structure, eligibility requirements, funding, and administrative technology. The main concern of workers, however, remains that too few can access benefits.
In 2021, the Liberals campaigned on a promise to modernize EI and pledged to expand the program to cover the self-employed and close the gaps highlighted by the COVID-19 pandemic.
Finance Minister Chrystia Freeland said on Thursday that bigger revisions were still to come.
“My colleague Carla Qualtrough is working hard on broader improvements to EI and it’s important work that needs to be done in a thoughtful and careful way,” she told reporters in Surrey, Colombia. -British.
Ms. Freeland cited two changes to employment insurance announced in the budget.
One measure proposes to extend a temporary change to Employment Insurance introduced in 2018 that increases the number of weeks of coverage available to seasonal workers. The other seeks to strengthen prohibitions on employee misclassification for federally regulated gig workers.
Interim measures requested
A member of the Canadian Employment Insurance Commission, which includes both labor and business representatives, and which helps oversee and review the employment insurance system, added to the criticism.
Its commissioner representing workers, Pierre Laliberté, said he was “very disappointed” to see the reform of employment insurance excluded from the budget.
At a minimum, the federal government could have included interim measures to close key gaps and expand access, he argued.
“It is really absolutely bizarre that the government has not seen fit to at least plug a few holes here and there. »
During the pandemic, the government had expanded access to the employment insurance system through temporary measures. These expired in September, despite strong opposition from labor groups and the NDP.
Under the temporary measures, workers were eligible for EI based on a national requirement of having worked 420 hours of insurable employment, whereas workers would normally need 420 to 700 hours depending on the rate. regional unemployment. And amounts paid when a worker terminated employment, such as severance pay, were not deducted from benefits.
The lack of clarity about the future of EI reform comes as many economists predict the Canadian economy will slip into a mild recession this year, which is expected to be accompanied by job losses.
Canadian Labor Congress President Bea Bruske said implementing EI reform would help the economy “resist the recession” for workers by ensuring that the social safety net can support those at risk of being made redundant.
A “not sexy” reform
Mr. Laliberté sees, however, that the reform of employment insurance does not seem to be a priority for the Liberals or the New Democrats. Both have focused more on providing a federal dental plan, he says, although health care is a provincial responsibility and the employment insurance program is a federal responsibility.
“It’s not sexy,” Mr. Laliberté said of the employment insurance reform. Announcing something new, like dental care, is glamorous, right? »
In a statement, NDP Deputy Finance Critic Peter Julian said New Democrats are proud of what they have achieved for Canadians in the budget, but are “not satisfied” .
“It is shameful that the Liberals did not include employment insurance reform in the 2023 budget when economists warn that we are heading towards a recession,” he argued.
“New Democrats will continue to press the Liberals to reform Employment Insurance and ensure no worker is left behind. »