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Decentralized Democracy

House Hansard - 49

44th Parl. 1st Sess.
March 30, 2022 02:00PM
Mr. Speaker, I want to thank the hon. colleague for his story and for his words. I am thankful for the opportunity to speak to this proposed amendment. Our employment insurance program is there to support Canadians when they are unable to work or unable to find work. Over the past several decades, governments have amended the EI Act to adapt to Canada's changing employment environment. In that same tradition, the bill we are debating today seeks to change an existing program to address evolving circumstances. However, we need to ensure that any amendments to the EI Act are considered in the full context of the new reality. Please allow me to outline some of the reasons that the Minister of Employment, Workforce Development and Disability Inclusion opposes Bill C-215. Parliament has already approved an extension of EI sickness benefits from 15 to 26 weeks. We are working hard to implement the extension this summer to better support Canadian workers. In contrast, an extension of EI sickness benefits from 15 to 52 weeks, as proposed in this bill, would incur an estimated incremental cost of over $2 billion per year, which is $1 billion more per year than the extension to 26 weeks. It could impact labour-market attachment and participation by providing additional income support to many workers who are not expected to return to work, and could result in a drop in employer-provided sickness benefit coverage, leading to more claims against the EI program. Sickness benefits within the EI program are a short-term income replacement for temporary work absences due to illness, injury or a quarantine. When Canadians are facing illness or injury, they deserve to feel confident that the EI program is financially supporting them and protecting their jobs as they recover. Unfortunately, we recognize that some workers use the maximum number of weeks of EI sickness benefits available to them before they are healthy enough to return to work. A worker who needs more time to recover from an illness should not have the added burden of coping with financial stress, which is why in budget 2021 our government pledged to extend EI sickness benefits from 15 to 26 weeks. The permanent extension of the EI sickness benefits, expected to be in effect by the end of this summer, will provide Canadians with additional time and flexibility to recover and return to work. Other supports are available to workers who may be eligible for longer-term illness and disability, including the Canada pension plan disability benefit, benefits offered through private and employer insurance, and financial supports provided by the provinces and territories. The current 15 weeks of temporary income support available under EI sickness benefits provide an amount equal to 55% of the worker's average weekly insurable earnings. In 2022, this maximum weekly amount is $638. In 2019-20, on average, workers used approximately 10 weeks of EI sickness benefits. However, just over one-third of workers used the full 15 weeks of sickness benefits available. That told us there was a need to extend the number of weeks available to provide more time to recover for those suffering from longer-term illness. That is why we have committed to increasing the maximum number of weeks from 15 to 26 weeks. We think this strikes a good balance. The increased number of benefit weeks is a positive change to the EI program, but the government has a much bigger picture developing that must also be addressed. When the COVID pandemic struck, it quickly exposed inadequacies in the EI program. It taught us that EI has not kept up with the way Canadians work, nor has it kept up with emerging trends in labour markets. The gradual and continued emergence of gig workers and self-employed Canadians in recent years is perhaps the best example. The CERB and the Canada recovery benefit helped many of those 2.9 million people keep food on the table and a roof over their heads. It is clear that the EI program was unable to adequately respond to a major crisis like the COVID pandemic, hence the necessity for the government to introduce a series of emergency benefits. On the positive side, the government is grasping the unique opportunity to bring the employment insurance program into the modern era and to make it more inclusive. Indeed, it is a major component of the mandate letter for the Minister of Employment, Workforce Development and Disability Inclusion. Last summer, the minister joined the Canada Employment Insurance Commission to launch the first phase of a two-year consultation on the future of the EI program. To reach as many Canadians as possible, the minister asked her department to launch a consultations portal, which included an online survey, where all interested Canadians could share their views. The survey was open from August 6 to November 19 last year and drew more than 1,900 responses. Approximately 60 written submissions came from a cross-section of labour, employer and other groups. The minister personally attended many of the 10 national and 11 regional round tables to hear feedback on how the EI program could better serve Canadians. Input was received from more than 200 stakeholders across the country, including employer and employee organizations, unions, academics, self-employed and gig worker associations, parent and family associations, and health associations, just to name a few. The overarching goal is to bring forward a vision for a new and modern EI system that is simpler and more responsive to the needs of workers and employers. The first round of the consultations focused on key priorities relating to improving access to EI, including how to address the temporary emergency measures that will expire this fall. We are also examining whether the EI system meets the evolving and diverse needs of Canadian families, like, for example, how to make maternity and parental benefits more flexible and inclusive for adoptive parents. There are differing views, obviously, but I know the minister has found a unanimous commitment on the part of both employer and employee representatives to develop a modern EI program that is resilient, accessible, adequate and financially sustainable. The government is planning a second phase of round-table consultations by the summer. Aside from the information, advice and recommendations from the round tables and online consultations, there are several other reviews, evaluations and reports already available. In particular, there was some excellent work in 2021 by the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, which included 20 recommendations on modernizing the EI program. In conclusion, the EI program has been a crucial part of Canada’s social safety net since 1940. As I mentioned earlier, EI has become the most complex system within the Government of Canada. Reforming EI for the 21st century is essential, and the government is moving with pace to get it done and, more importantly, get it done well.
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