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Finley announces $60 million to bolster EI system
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Date: Tue. Mar. 24 2009 2:52 PM ET
The federal government announced Tuesday it is spending $60 million to bolster the Employment Insurance system, as the number of laid-off Canadian workers continues to surge.
The money, Human Resources Minister Diane Finley said, will be used to hire more staff, process claims more quickly and extend the period of coverage by five weeks.
She said the hiring process has already begun, and many of the new workers are EI specialists who had recently retired.
"We have already hired a few hundred people and we will hire a few hundred more to reach our objective of delivering benefits as efficiently and rapidly as possible," Finley said in Ottawa.
Earlier Tuesday, Finance Minister Jim Flaherty said unemployment has increased in recent months, and he expects it to continue to worsen before the global recession begins to abate.
Statistics Canada recently pegged the nation's jobless rate at 7.7 per cent last month -- the highest level in over five years.
Roughly 300,000 Canadian jobs have evaporated in the past four months -- more than 82,000 in February alone.
The opposition parties said that Tuesday's announcement will not help the thousands of Canadians whose benefits have been delayed because the government was unprepared for the spike in demand.
Liberal Leader Michael Ignatieff charged during question period Tuesday "that the government is trying to patch EI with duct tape while evading the real issue, which is eligibility."
Prime Minister Stephen Harper responded that "as employment conditions become more difficult, eligibility becomes easier" for Canadians.
Earlier on Tuesday, NDP finance critic Thomas Mulcair said MPs have faced a deluge of calls from constituents who say there have been delays in their benefits.
"Ask any one of the 307 other members of Parliament and you will be told the same thing," Mulcair said. "It's a catastrophe right now administratively (and) what she is proposing right now is a Band-Aid solution."
When making her announcement, Finley said the EI system has so far been able to meet its objective of processing 80 per cent of EI claims within 28 days.
The new staff, along with measures to automate and streamline the application process, are intended to keep the rate within that target, she said.
"The minister was clearly demonstrating the position from the government that we're following through with what we said we would do and we're dealing with a surge in Employment Insurance claims," said CTV's Graham Richardson, in Ottawa.
Finley also said the EI system is adjusted regionally every month, based on local economic conditions.
In Oshawa, she said, laid-off workers can apply for benefits two weeks earlier, and can claim them for four weeks longer, than elsewhere due to the high number of people who have lost their jobs in the auto sector.
The measures announced Tuesday were the result of consultations held across the country, Finley said, noting that most people told the government they wanted EI to last longer at the back end.
The opposition parties would like to see the EI system revamped further, to include the many part-time and self-employed workers who are ineligible for benefits.
Liberal MP Michael Savage pointed out that only 23,700 more Canadians applied for benefits in January, a month that saw 129,000 jobs disappear.
"Where is the rest of them, why don't they qualify for employment insurance benefits?" he asked.
"This is an unusual time. This is not a 24-hour flu bug. It's something that's going to take a long time to recover from and the Conservatives don't understand that," Mulcair added.
Some analysts believe the unemployment rate will rise above 10 per cent and 600,000 jobs will have been lost before the recession ends.
Finley indicated that the EI program can be adjusted according to changing employment conditions. However, she would not say whether the government is considering extending benefits to those who currently do not qualify.
"There are a great number of forecasters out there and they are changing their forecasts every single week. We cannot change our plan every single week," she said.
With files from The Canadian Press
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I fail to see just what a minister could learn by an on site visit that he couldn't get from people who are actual experts in the various fields of work involved. It is doubtful that he is any sort of nuclear engineer or expert in construction. Just another photo op...
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Comments are now closed for this story
Durward
said
If the Liberal government of Chretien had not had Martin and company in finance abscond with 54 billion of the EI surplus(workers and companies money) to "balance" the budget instead of actually balancing income and spending we could have used it now as a stimulus with out burdening our children down the road with further debt. This country is top heavy with government spending and it needs to be reined in to what it needs, not what it wants for vote purchasing, high living and public servant bonuses for doing a mediocre job. Oh and Parliament should not be criminal in it's actions and the EI theft was criminal IMO and under the constitution.
Me
said
Can anyone say Double Dipping
We have 100's of thousands persons out of work not getting any EI or people laying around collecting welfare... Lets get these people trained up to take those jobs.
gerry woodstock on.
said
there was a multi billion dollar surplus one time
But the liberals took it to create a general reveneu surplus.
Mike Iggy - They got thier own moms
said
They can take jobs they don't want to take.
Charles B.C.
said
The increase in workers is for the purpose of speeding up E.I. payments which, everyone seems to say is urgently needed.
So we bring in a load of totally inexperienced people who first have to be trained before they can start doing the job everyone says needs speeding up now.
Now, that's really smart.
Peter - Toronto
said
"It just boggles the mind that a family is expected to wait 28 days, 1 month, for a claim to be processedd. Meanwhile how do our children eat, how do we pay the mortgage, or hydro!!! Not bloody good enough!!!"
If you managed your finances properly you would have savings and they would tide you over until the EI kicked in.--Of course people don't do that and then they complain that it is the Government's fault when they don't have money for food. The previous generations lesson have been ignored. As far as re-hiring experienced staff to process claims --this is a very wise move.. no training involved, on contract and able to release from the contract when no longer required.
Folks --please think before you blame everyone else for your troubles -- spend the time you complain by looking for solutions.
I just don't get it
said
Can someone in the Parliament do some math to us, please! Which group needs more money to pay out the household? The one that still have young kids to feed, car loan plus rent/ mortgage and are still physically young to handle a full time job rather than the retire person who can take up a part time job?
This Government is so behind and out of this world. When is Harper going to wake up and smell the coffee!!!
Sarah
said
James
said
The Hammer
said
The beef I have is the present day government will spend only 60 million on Canadians in need, but are willing to spen 4 billion on GM and Chrysler who have nothing but overpaid workers at the through...this government has to straighten out it's priorities....
I would classify GM and Chrysler as toxic assets to say the least so lets buy them up and throw out the union workers and hire people who want to work and construct a good product that is worthy of buying...
Stupido 4 You
said
EI has always been a last resort but too many expect a living from it. The strict rules are due to the Maritimes which has burdened the system for 20 years. They all get their number of weeks then back on the dole for winter down east.
And what is the sense in giving these temp jobs processing claims to new hires. They would be laid off again after the recession but would also suck up huge pensions from the Canadian Goverment for the next 20 years.
Duh...These are temp jobs people.
Claire
said
Wes
said
Didnt the Liberal dominated Senate hold up the budget?
Just cause in the US their different levels of government can hold up things, doesnt mean our porkbarrelling appointed senators have the same right.
James Halifax
said
Fact is, the "Brilliant financial Managers" in the Liberal Party were over-charging workers and businesses for years. This resulted in a huge EI surplus of over $46,000,000,000 (that's BILLIONS folks) which was subsequently used to pay for every vote-buying scheme or social program the Liberals could get their hands on.
The Liberal Party never balanced any budgets.....the workers of Canada did that, the Liberals are simply taking the credit for it.
Frankly, if the Liberals under Chretian and Martin actually took care of this mess with the EI Program when they had their MAJORITY....we wouldn't have Michael Ignatief and the Liberal Party demanding it be fixed now.
Think about it for a moment. The Liberals are complaining that a Minority Conservative Party, that is being obstructed every step of the way by the Liberals, is not doing what a Liberal Majority with no obstruction refused to do when they were in Government for 13 Majority years.
Makes you wonder eh? What do Liberal MP's do when they aren't at fundraisers or rallies for terrorists? Well, they obstruct working Canadians' benefits of course.
Vote Liberal? Not on your life.
Will
said
Jim McB
said
But then that is why we never elect those clowns!
Terry
said
Glenn
said
Carol Thor, Paris, Ont
said
Raurie
said
Kathy, Port McNicoll, Ontario
said
bcdarr
said
So why not apply that philosophy to our social services and E.I. offices?
Bring back experienced retirees temporarily, hire from the people who are already collecting a benefit, train them with the retirees, pay them training wage and reduce the the work load on the institutions at the same time?
In one move we reduce unemployment, increase the ability of EI and Social Services to handle the surge of newly unemployed AND get something for the money going out.
If it's a good idea to pile money out to create jobs WHY are we not doing so for EI and Social Services!?!
I'm losing faith in all politicians (not that I had much to begin with).
Trent
said
edd-medhat
said
So thanks to the Lib policies over 12-15 years, we now have very little money for EI when it is needed.
Make sure you blame the right people for this. The Cons have shot themselves in the foot on numerous occasions, but not on this matter.
Lorne
said
Don't knock retirees who are taking jobs. These jobs usually are minimum wage, which nobody else seems to want. Just look in the "help wanted" ads. Most people don't want these jobs, or else we wouldn't have foreigners working at these jobs as well.
Besides, retirees require the extra income to support their kids who don't want to get a job and decided to move back home.
John Manning
said
Having said that, they should hired some of the ones on unemploy, so that in a couple month they can them replace those hire back.
gail
said
Allan Eizinas
said
Here it is, March 24th and the federal Conservatives have discovered that people are losing jobs, the unemployment rate is quickly increasing and the EI system is not set up to handle the extra workload for processing.
Maybe tomorrow Harper will discover that housing prices are taking a nosedive and the TSX is not at 15,000.
Hey, Hello! Hello! Is there anybody awake in Ottawa?
David in Alberta
said
What happened in the last year? Come on Harper get lost!
PepperPot
said
todd
said
Double dipping, wow, another slap in the face!
Maybe they should hire more parks and rec. people to water flowers also.
John Burey Brampton
said
I suppose, the best option would be for Mulcair to be on the nearest street corner handing out cheques. That would solve all our problems...
Sheila
said
M
said
Edwin from Toronto
said
Autoworkers asking $76/hr, to secure their jobs till retirement, from the government.
Much better as autoworkers than the rest of canadians.
To be fair, the government should provide the same loan to all employers to secure jobs of other canadians, preferably guaranteed income of $76/hr.
Maggie
said
shawbrooke
said
EI contributions should not go into general treasury, but into a separate fund. When the EI fund is large enough to pay for the benefits over recession times, then the employer and employee contributions should be scaled back to half of current levels and the continuing contributions used to increase benefits.
And I agree that new people should have been hired rather than let previous staff double dip.
Brad
said
Gail (Hamilton)
said
ktowner
said
fed up
said
On ei you can not provide the essentials for your family. food & electricity is very expensive. Pray you don't get sick if you do not have insurance. Again the rich get richer and the working class get the boot. Family business get out of it asap.
Unemployed Liberal
said
Al
said
to be accomplished.
There is a backlog in claims processing and the goal is to catch up from the backlog.
This is a good response to an existing problem, not just a way to spend money.
FLASH
said
Harper government is useless!
said
I am extremely frustrated with how much government took chuck out of my pay yet they provide an useless service because they are idiot in first place to be prepared for this.
Harper government is at its own fault for this. We had surplus yet we overspend.. probably on military.
Maybe we all should sign up for army careers.
JKL from London
said
We had a hugh surplus now you are saying the Goverment needs to prop it up.Did the suplus go to the deep dark hole of Goverment last year????
Sal in Hamilton
said
Greg in the Hammer
said
Samual
said
So Canada is becoming a country of big welfare, give a few pennies to the masses to keep them from starving. While the minimum wage earners pay for the welfare. Please Harper step down!!!
What is the Aim here folks - Oshawa
said
I wish you people would tell me what you are for instead of always complaining.
Casper in TO
said
I could careless who the Government is, because they are all the same only concerned with getting re-elected so they can draw a generous pension. All of these politicians forget they are elected to serve the people not line their own pockets.
I have a beef with Stupid Harper because despite the fact the economy has been in a shambles (outside of his home province of AB) for a year he continues to make silly predictions of a robust recovery, he is clueless.
Miamichi Kid
said
Edwin from Toronto
said
Process the claim faster? They cannot process the claim within 2 weeks of waiting period. They should all get fired.
Dani
said
Jim in Edmonton
said
JJL
said
Raj
said
Brenda
said
Flora
said
AIG bonus for 72 executives are more than 200 millions (165 +49 = 214 Millions)
Doug BC
said
To "Raurie's" point about the retired people,they may well have had decent pensions BEFORE this global crisis.But many have seen huge pension losses since the market plunge.They are likely the most experienced people available,and could well now be a whole lot poorer than they were a year ago.
"casper in TO" also makes an invalid,and likely a partisan point.If Harper had not prorogued parliament,the EI changes would still not been done.We would probably be just coming out of yet another election,and waiting for yet another budget.
We have a very recently elected government.We also have a global economic situation.We cannot afford the luxury of an election every year,until the people on the left get the result they like.We have work to do now,and I expect ALL these people to get on with the job of solving problems,not posturing for the next election.
Let's get this EI system working as efficiently and affordably as is possible right now.This socialist whining and Harper Hating is counter productive.And,quite honestly,becoming a real bore.
Chris in Ontariariari-Oh!
said
Does The Great Iggy know?
This could be cause for an election threat or worse yet some stalled legislation in the liberal bastion of sober thought,the senate.That unelected, overpaid job for life where many previous liberal government's rewarded their own as a cushy place to be put out to pasture in your declining year's.
There must be shock and outrage that the government,our elected government would make decision's by consulting with Canadian's other than Liberals is appalling.Where do they get off!,the liberals are the only true party to represent Canadians and as such know what is in their best interests.Who are these people who dared to consult with the conservative government?.I bet they are looking over their shoulder now and wishing they had not consorted with the enemy.They will definitely be off the next thousand dollar a plate "Get to know Iggy" fundraiser in your local posh neighbourhood or worse still may lose all hope of a posh senate seat when the liberal's are returned to their rightful destiny.WOW! someone please re-align the planet's.
Good news hound
said
It pains me to be negative about good news but it just seems to me that these jobs could have done more good if they went to some of those people that will actually be looking for work.
I have nothing against these "recently retired" folks. I simply believe that these jobs and the work experience that is to be gained would far better serve our country if it went to active workers who could continue to use it far into the future. Rather than to pad the pockets of people who have served their time (probably very well and this in no way implies any disrespect for the "recent retirees").
Our main focus on these stimulus projects in my opinion should be to create jobs for those that NEED them first.
Trent
said
Carol Thoro,Paris, On
said
Politicians talk a Big story but not too realsitic.
Laid Off for the first time ever
said
I don't like government hand outs, but this is an insurance program we pay into and to only give our 55% of one's wages is doing nothing more then putting he unemployed below the poverty line.
Angry Jason
said
Funny how they dont Hire the people who actually NEED the jobs. Hire the unempolyed who lost there jobs, re-train them and give them the jobs, not people who decided to retire and collect Pensions.
RBLAKLEYabca
said
shirlee - SK
said
casper in TO
said
When will this Government smarten up and do its job, Stupid Harper you are a year late in acting!!
ASpenc
said
Raurie
said