Canadian Human Resources

  

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Proposed Changes to the Employment Insurance Act

May 2 2001 - Canadian Labour Congress Secretary-Treasurer Nancy Riche appeared before the Senate Committee studying Bill C-2 (amendments to the Employment Insurance Act), She told Senators that they had a duty to end what she considered to be nothing less than outright discrimination against women.

"Less than a month ago, two sections of the EI Act were found to violate the Charter of Rights and Freedoms because they 'demean the essential human dignity of women' - something our research has been documenting for years," said Riche, referring to Kelly Lesiuk's appeal.

On April 5 Kelly Lesiuk, of Winnipeg, a registered nurse and mother, won an appeal against denial of benefits from the unemployment insurance system when she was in need. Justice Roger E. Salhany, sitting as Umpire under the Employment Insurance Act, found that the current eligibility rules set in 1996 discriminate against women and parents in part-time paid employment. The judgement said:

"(Kelly Lesiuk's) status as a parent and caregiver is one that the government has no legitimate interest in expecting her to change to receive equal treatment under the law. When a mother works part-time because of her unpaid parental responsibilities, she should not receive inferior employment insurance coverage on that account."

"By basing the threshold for eligibility and the definition of work attachment on the average work week of 35 hours, the eligibility requirements fail to take into account the fact that women's average work week in the paid labour force (30 hours) is 85% of men's average work week (35 hours). This places the onus on part-time workers (whose average work week is 16.5 hours) to increase their weekly hours in order to avoid longer qualification periods and shorter benefit periods. Since women continue to spend approximately twice as much time doing unpaid work as men, women are predominantly affected."

Riche argued that the Senate had an obligation to factor this ruling into its review of Bill C-2, putting an end to the way the current legislation discriminates against women as well as younger and older workers.

"The Canadian Labour Congress has a vision for a modernized system of unemployment insurance," says Riche, "one that pays benefits to people who need them when they need them and where they need them; one that recognizes the full, equal, and essential participation of women in the workforce; and one that makes life-long learning accessible to working families."

When she introduced legislation in the Canadian House of Commons, the Honourable Jane Stewart, Minister of Human Resources Development Canada had justified amendments to the Employment Insurance Act on the grounds of changing needs of the economy, the labour market and workers. The Minister stated:

"While our ongoing monitoring of the EI program indicates the reforms we introduced in 1996 are succeeding in helping people find and keep jobs, we're discovering that some changes have not produced the intended results," explained the Minister. "We are meeting our commitment to Canadians to introduce legislation to amend some measures that are less effective than we had anticipated."

Adjustments proposed to the Employment Insurance Act reflect the amendments tabled on September 28, 2000:
- eliminate the Intensity Rule;
- adjust the Benefit Repayment (clawback) provision;
- modify the re-entrant rules for parents returning to the workforce;
- continue to monitor and assess the impact of the EI program until 2006;
- allow the Governor-in-Council to set the premium rates for two years;
- maintain the maximum insurable earnings (MIE) at $39,000; and
- align EI Fishing Regulations with the enhanced maternity, parental and sickness benefits.

For more information on the proposed changes to the Employment Insurance legislation, visit the HRDC Web site at http://www.hrdc-drhc.gc.ca

The Canadian Labour Congress website is at www.clc-ctc.ca includes the modernization plan, the brief on Bill C-2 and statistical studies of the negative impacts of the changes brought in the 1990s to the unemployment insurance system (by gender, by age groups, by federal riding and so on).

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