Submitted on Behalf of the Inter-Provincial EI Working Group

To the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities

Submission on the Impact of Recent Changes to Employment Insurance and of Access to the Program ______

Submitted on behalf of the Inter-Provincial E.I. Working Group

May, 2016

We wish to thank the HUMA Committee for this opportunity to present the views of the Inter-Provincial EI Working Group which speaks on EI-related matters for a large number of community and labour organizations across Canada.

2015 marked the 80th Anniversary of the On-To-Ottawa Trek during the Great Depression. Workers and communities demanded, among other reforms, a social insurance system to provide income maintenance during periods of unemployment.

2015 also marked the 75th Anniversary of Canada’s Unemployment Insurance Act.

In the decades since 1940 our EI social insurance system has been key to the health of the larger economy as well as individuals and their families. An earlier federal study found that EI is “the single most powerful automatic stabilizer”, reducing both GDP and job losses by up to 14% during recessions1.

But EI has not been performing so well in recent decades in large part because of dramatic changes in the labour market. Only 40% of the country’s unemployed are receiving EI benefits at any given time, some because they don’t qualify, some because their benefits have run out. Until the 1990s more than 70% of the unemployed were receiving benefits. There is a pressing need to rebuild our EI system.

The Inter-Provincial EI Working Group is agreed on 5 key recommendations:

1. The government should move faster on EI improvements announced in the 2016 Budget including elimination of the discriminatory 910 hour rule for new entrants/re-entrants and repeal of punitive rules related to job search and suitable employment, including those for hiring halls and union members with recall rights. The elimination of the 910 hour rule is an important down payment on the reforms needed to expand EI access.

2. ALL 2012-13 EI amendments should be repealed.  Repeal arbitrary classifications of frequent, occasional and long tenure claimants  Rescind new EI regions in Prince Edward Island and Canada’s North  Restore the 5 week extended benefits pilot project  Restore ‘best weeks’ calculation for low income workers  Restore ‘working while on claim’ conditions that benefitted low income workers  Restore parental/sick benefits for Temporary Foreign Worker program participants  Rescind arbitrary new Ministerial powers to set regulations.

3. The government should immediately address rampant problems with EI service delivery and the appeal system. Staffing levels and in-person services have

1 The UI System as an Automatic Stabilizer in Canada, Peter Dungan and Steve Murphy, May 1995, Human Resources Development Canada 1

seriously declined. The appeal system is also suffering under the Social Security Tribunal that was introduced with the 2012 changes; the model requires fundamental reforms and restoration of an informal worker-friendly process, a tripartite body involving business and labour, and the right to in-person hearings.

4. The government should ensure that there is an independent EI Account and that EI contributions are used exclusively to fund EI programs.

5. The promised EI review should be fast tracked. The government’s EI election platform promised a review of “how successfully the Employment Insurance system is delivering its core mandate to provide income security to workers in a changing labour market” which “will result in changes to the program that ensure more Canadian workers particularly those in more insecure work can get access to the benefits they need.” It follows that a hold should be placed on premium cuts until we know what improvements are needed to restore EI social insurance to health. The review must involve community groups, unions, legal clinics and others who advocate on behalf of unemployed workers and are familiar with the problems they confront.

Some EI capacity issues for review:

 EI access has become an Urban issue. EI policy tends to assume seasonal workers are unique to certain regions but that is an outdated concept. Every major town and big city in this country is rife with non-full year work. Hotels, restaurants, stores, private services, utilities, tech firms and manufacturers all lay off during slow and shoulder seasons. EI beneficiary rates are now at critically low levels in many of these urban centres and as of February fell below 30% in all 4 of our largest labour markets – Toronto, Montreal, Vancouver and Calgary. Community and labour organizations have long advocated replacing the regional variations in qualifying hours with a fixed requirement for a basic EI claim: the lesser of 360 hours or 13 weeks.

 EI access has become a Service Sector issue. Public and private services now account for 80% of all jobs according to StatsCan’s Survey of Employment, Payrolls and Hours. Employment in this sector is often erratic, part-time or temporary. The survey also reports that hourly paid service workers average 28.1 hours weekly. In retail services, the #1 employer in Canada, the average is just 25.6 hours. Yet the EI Hours System - which dictates qualifying hours and the duration of benefits - is based on a 35 hour week with entitlement increments in 35 hour blocks. The EI Hours System is in dire need of reforms which will especially benefit the women, racialized workers, new immigrants, young adults and working poor in the sector’s more precarious jobs. The new EI Monitoring & Assessment Report states that “results show the highest percentage of earnings interruptions

without an ROE (28.7%) are observed in the service sector”, another direct jeopardy to the EI entitlements of workers in the sector.

 Benefit rates are inadequate. 55% of normal earnings does not provide adequate income maintenance. The average 2014/15 Regular EI benefit was only $434 weekly ($395 for women; $458 for men). For those earning at or about minimum wage, it is considerably less.

 Reasonable EI duration. It is disheartening to see the debates fixated on when an additional few regions might join the ranks of the 12 regions out of 64 that now qualify for special extensions of up to half a year (5 weeks plus 20 more for long tenure workers). We’re exacerbating existing regional disparities. The Montreal EI region actually had higher unemployment than Calgary in May but both exceeded 8%. It is worth noting that a national average of 6% unemployment used to be the ‘high unemployment’ trigger for government contributions to cover extended unemployment insurance benefits. All regions should have an additional 5 weeks as a permanent provision in the EI Act as was previously the case. ~

The Inter-Provincial EI Working Group represents community and labour organizations concerned with Canada’s Employment Insurance social insurance system. The group was formed in early 2013, initiated by EI coalitions in New Brunswick, PEI, Nova Scotia, Newfoundland & Labrador as well as in Quebec and the Good Jobs for All Coalition in Toronto. By May 2014 more than 100 organizations from coast to coast had signed a Joint Statement of principles and recommendations. In February 2016 the Working Group issued a Joint Letter with respect to EI reforms and the need for stimulus spending in the 2016 Budget. More recently representatives from Alberta and Saskatchewan have participated in the group’s inter-provincial discussions.

The Inter-Provincial EI Working Group’s 2013-14 and 2016 Joint Statements are included as part of this brief.

On behalf of the Inter-Provincial EI Working Group  Laurell Ritchie, EI Working Group, Good Jobs for All Coalition  Patrick Rondeau, EI Working Group, FTQ  Lori MacKay, PEI Coalition for Fair EI

February 10, 2016

Hon. William Morneau, Minister of Finance Hon. MaryAnn Mihychuk, Minister of Employment, Workforce Development, and Labour Right Hon. Justin Trudeau, Prime Minister of Canada

Joint Community and Labour Statement on the 2016 Budget, Stimulus, and E.I.

We are writing on behalf of the Inter-provincial Employment Insurance Working Group to urge the government to act quickly and decisively to restore the integrity of Canada’s EI social insurance system.

In particular, it is vital that the 2016 Budget provide economic stimulus and be at the ready as the country prepares for difficult economic storms. As an earlier federal study found, EI is ‘the single most powerful automatic stabilizer’ reducing both GDP and job losses by up to 14% during recessions. Much of that earlier capacity has been lost with only 40% of the unemployed now receiving EI benefits after years of repeated cutbacks.

We recommend the government delay any decision on premium changes and immediately begin the job of making much-needed improvements to EI. All are long overdue but will now also serve as strong economic stimulus in the 2016 Budget:

1. Repeal the 2012/13 EI changes. This includes but is not limited to the punitive and discriminatory job search rules, a detrimental ‘best weeks’ calculation for low income workers, removal of the extended benefit pilot project, erosion of the ‘working while on claim’ benefit for those taking casual work while unemployed, and the politically- motivated addition of new EI regions in Prince Edward Island and Canada’s North.

2. Move up EI improvements. This includes the promised 1-week waiting period and reforms to the EI Hours System that will expand access and restore reasonable benefit durations. The elimination of the 910-hour rule for new immigrants, young workers, and parents re-entering the labour force is an important down payment. But other reforms are urgently needed. EI must be allowed to do the job it’s supposed to do in a labour market overflowing with precarious, temporary and part-time jobs and now facing a downturn.

3. Immediately address rampant problems with EI service delivery and appeals. Staffing levels and in-person services have seriously declined, discouraging workers from pursuing a benefit claim. The appeal system is also suffering with the Social Security Tribunal that was introduced with the 2012 changes; the model requires fundamental reforms and restoration of the business-labour role.

4. Ensure there is an independent EI Account and that EI contributions are used exclusively to fund EI programs. This includes the projected 2016 surplus, which should be used to pay for the highlighted improvements.

We have previously commented on the need for EI reforms, including the attached “Joint Statement Concerning Federal Changes to Employment Insurance by Community and

Labour Groups” signed by 106 organizations from coast to coast. Many of them deal with EI on the front lines. We have also met with MPs from all parties to express our concerns.

Thank you for considering our position.

On behalf of the Inter-provincial E.I. Working Group:

Unemployed Workers Help Centres, Saskatchewan Alberta Federation of Labour Community Unemployed Help Centre, Winnipeg Good Jobs for All Coalition, Toronto Canadian Labour Congress Coalition de l'Est du Québec Fédération des travailleurs et des travailleuses du Québec Mouvement autonome et solidaire des sans-emploi (MASSE) Conseil national des chômeurs Confédération des syndicats nationaux Centrale des syndicats du Québec Centrale des syndicats démocratiques Nova Scotia Federation of Labour New Brunswick Coalition Against EI Cuts Newfoundland and Labrador Federation of Labour PEI Coalition for Fair EI … and others.

Copies:  François-Philippe Champagne, Parliamentary Secretary to the Minister of Finance, Francois- [email protected]  Rodger Cuzner, Parliamentary Secretary to the Minister of Employment, Workforce Development and Labour [email protected]  Hon. Thomas Mulcair, Leader of the NDP [email protected]  Niki Ashton, NDP Critic for Employment, Workforce & Labour [email protected]  Guy Caron, NDP Critic for Finance [email protected]  Rhéal Fortin, Le chef du Bloc Québécois [email protected]  Elizabeth May, Leader, Green Party of Canada [email protected]  Hon. Rona Ambrose, Leader of the Official Opposition [email protected]  Hon. Lisa Raitt, Conservative Party Critic for Finance [email protected]  Gérard Deltell, Conservative Party Critic for Employment, Workforce & Labour [email protected]  Other Members of Parliament

Enclosure: 2013-14 Joint Statement and 106 signatories in English and French

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Joint Statement by Community and Labour Groups Concerning Federal Changes to Employment Insurance

To the Prime Minister of Canada: Our unemployment insurance program has served this country well since 1940. When the Great Depression gave rise to mass unemployment and large public demonstrations, workers demanded a program of unemployment insurance to address the obvious, painful need. They were supported by mayors, business leaders and others who understood how important an income replacement program was for families trying to weather bad times and for communities trying to maintain economic stability. The program has continued this vital role in the decades since and especially during periods of economic crisis.

It is deeply disturbing to watch your government now make such destructive, harmful changes to our EI program. There is no excuse for such unilateral action. The people directly concerned have not given their agreement or even been consulted. Since 1990 workers and employers have entirely funded the UI/EI program without any government contributions. What’s more, between 1994 and 2009, the funds of the EI program were used for other purposes than the protection of workers; those funds should be restored.

We are united in calling on your government to Scrap the EI Changes! We believe that:  The Universal Declaration of Human Rights recognizes our fundamental human right to economic supports in case of unemployment as well as the freedom to choose our own employment;

 Unemployment is an economic and social phenomenon. It requires a collective response;

 Unemployed workers have a right to a fair and worker-friendly appeal system when contesting EI Commission decisions;

 EI requires improvements that improve access, duration and benefit levels. Less than 40% of unemployed people are now collecting EI benefits.

We say NO to:

 the impoverishment of workers and degradation of working conditions;

 changes which are not necessary or desirable, and for which no impact studies have been provided;  new rules that reinforce the myth that Canadians do not wish to work and abuse the system when they are unemployed. In fact, fewer than a third collect the total benefits to which they are entitled;  the attack on communities throughout Canada especially rural communities and those which rely on seasonal industries;  the erosion of coverage for people without full-time, full-year employment. Temporary, part-time and migrant jobs mean insecure, erratic employment, especially for aboriginal workers and workers of colour, women and youth.  an obligation to accept work regardless of training, experience or willingness;  the focus on individual rather than collective responses to unemployment;  intimidation, surveillance and intrusion into our private lives;  a new Social Security Tribunal which will gravely restrain access to justice;  the attempt to dismantle our EI social insurance program by stealth.

We seek Employment Insurance reforms that benefit workers and their communities. We therefore urge the PARLIAMENT of Canada to:

1. Rescind all 2012 and 2013 Budget measures related to EI. 2. Improve EI benefits:  Improve access by reducing qualifying hours in all regions to the lesser of 360 hours or 13 weeks.  Increase duration to at least 50 weeks in all regions. Provide a Special Extension when unemployment exceeds 6.5%, paid from federal general revenues.  Increase benefits to at least 60% of earnings using workers’ 12 best weeks. Raise the maximum benefit. And eliminate severance pay allocations and the 2 week waiting period.  Provide EI income benefits so long as workers are in approved training.  Expand supports for work-sharing arrangements under EI to reduce layoffs, and build links between work-sharing and training.

3. Provide Temporary Foreign Workers with meaningful EI entitlements.

Oct 22, 2013 FINAL/ jcb/lr/pr/

Joint Statement: Signatories / Déclaration Commune: Signataires 1. Good Jobs For All Coalition (Toronto) 38. Association of Employees Supporting 2. CUPE (Ontario) Education Services (AESES) 3. Colour of Poverty – Colour of Change 39. Alliance du personnel professionnel et 4. United Steelworkers Toronto Area Council technique de la santé et des services sociaux 5. Toronto & York Region Labour Council 40. Alliance québécoise des techniciens de 6. Labour Community Services l'image et du son 7. Social Planning Toronto 41. Association pour une solidarité syndicale 8. CUPE Local 416 étudiante 9. SEIU Local 2 42. Centrale des syndicats démocratiques 10. Unifor 43. Centrale des syndicats du Québec 11. Unifor Local 591G 44. Confédération des syndicats nationaux 12. Unifor Local 27 London 45. Conseil national des chômeurs et chômeuses 13. Elementary Teachers of Toronto 46. Conseil provincial du Québec des métiers de 14. Hamilton & District Labour Council la construction (International) 15. London & District Labour Council 47. Fédération autonome de l'enseignement 16. Brampton Mississauga & District Labour 48. Fédération des commissions scolaires du Council Québec 17. Unite HERE Local 75 49. Fédération des femmes du Québec 18. Urban Alliance on Race Relations 50. Fédération des travailleurs et travailleuses du 19. Canadian Federation of Students – Ontario Québec Office 51. Fédération étudiante collégiale du Québec 20. Ontario Federation of Labour 52. Fédération étudiante universitaire du Québec 21. Labour Education Centre 53. Fédération interprofessionnelle de la santé 22. Migrant Workers Alliance for Change du Québec 23. ACORN Canada 54. Fédération Québécoise des municipalities 24. Workers Action Centre, Toronto 55. Mouvement autonome et solidaire des sans- 25. Campaign 2000: End Child Poverty in emploi Canada 56. Mouvement d'éducation populaire et d'action 26. Council of Agencies Serving South Asians communautaire du Québec 27. Chinese Canadian National Council – 57. Solidarité Rurale du Québec Toronto 58. Syndicat de la fonction publique et 28. Public Service Alliance of Canada (PSAC) - parapublique du Québec Ontario 59. Syndicat de professionnelles et 29. IATSE professionnels du gouvernement du Québec 30. OPSEU 60. Union des artistes 31. Parkdale Community Legal Services 61. Union des municipalités du Québec 32. West Scarborough Community Legal 62. Union des producteurs agricoles Services 63. Coalition de l'Est (Québec) 33. Community Unemployed Help Centre, 64. FRAPRU - Front d'action populaire en Winnipeg réaménagement urbain 34. University of Manitoba Faculty Association 65. Union des consommateurs 35. CUPE Manitoba 66. RCLALQ - Regroupement des comités 36. CUPE Local 3909 logement et associations de locataires du 37. CUPE Manitoba School Division Sector Québec Committee

67. Table des regroupements provinciaux 81. Maritime Fishermen’s Union - Union des d'organismes communautaires et bénévoles pêcheurs des Maritimes 68. New Brunswick Coalition Against EI Cuts – 82. Association des municipalités francophones Coalition du N.-B. contre les coupures à du Nouveau-Brunswick l’Assurance-emploi 83. Association acadienne des artistes 69. Société des acadiens et acadiennes du professionnel.le.s du Nouveau-Brunswick Nouveau-Brunswick 84. Regroupement féministe du Nouveau- 70. NB Federation of Labour- Fédération des Brunswick travailleuses et travailleurs du N.-B. 85. Moncton & District Labour Council 71. Canadian Union of Public Employees- NB 86. Fredericton & District Labour Council Division – Syndicat canadien de la fonction 87. Miramichi & District Labour Council publique-Nouveau-Brunswick 88. Conseil de travail Edmundston et region 72. Fédération des étudiants et étudiantes du 89. Newfoundland & Labrador Federation of Centre universitaire de Moncton Labour 73. New Brunswick Common Front for Social 90. CUPE – Newfoundland & Labrador Justice inc. – Front commun pour la justice 91. Fish, Food & Allied Workers – Unifor sociale du N.-B. Inc. 92. Social Justice Co-operative of Newfoundland 74. Council of Canadians - Saint John Chapter. and Labrador Conseil des Canadiens, chapître de Saint- 93. Labrador West & District Labour Council Jean 94. Nova Scotia Federation of Labour 75. Union of Municipalities of NB - Union des 95. PEI Coalition For Fair EI municipalités du N.-B 96. PEI Federation of Labour 76. New Brunswick Coalition for Pay Equity - 97. Cooper Institute Coaliton pour l’Équité salariale du N.-B. 98. MacKillop Centre for Social Justice 77. NB Association of Social Workers - 99. CUPE – PEI Association des travailleurs sociaux du N.-B. 100. PEI – Status of Women 78. Association des aînés francophones du N.-B. 101. Council of Canadians, PEI Chapter 79. Groupe des 12 102. PEI Health Coalition 80. New Brunswick Building Trades Council – 103. CUPE Saskatchewan Syndicats des métiers de la construction du 104. CUPE Alberta N.-B. 105. CUPE National 106. Vancouver & District Labour Council

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