As economy slows, Liberals push off EI reform over worries it could drive up premiums
As economy slows, Liberals push off EI reform over worries it could drive up premiums
OTTAWA -
The Liberal government left employment insurance reform out of the federal budget this week over concern that reforming the program amid a slowing economy could drive up premiums for workers and employers.
That's according to a spokesperson for Employment Minister Carla Qualtrough, who said the federal government "remains committed to modernizing the EI system."
"However, the current and near-term economic context caution against measures that could put pressure on EI premiums and we needed to be careful about any decision that could 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 handed out a mandate letter that tasked Qualtrough with bringing forward and implementing a plan to "modernize the EI system for the 21st century" by summer 2022.
As the summer was ending, the minister promised reform was coming soon. "By the end of the year, you'll know what the vision for EI is," she said in September.
There was scant hope that, several months into 2023, the federal budget would finally hint at the government's plans. Sure enough, its narrow focus on the clean economy and health care left other agenda items off the table.
The federal government, which is now expecting a mild recession this year, appears to be avoiding EI reform right now so as to not drive up the cost of the program. A recession would likely come with job losses. Expanding eligibility now could result in even more people tapping into the program.
But with this latest delay, labour groups and experts are getting impatient.
There is a long list of complaints about the current structure of the program, on its eligibility requirements, financing and administrative technology. But the central concern for workers is that too few can access the program.
In 2021, the Liberals had campaigned on a promise to modernize EI and pledged to expand the program to cover self-employed workers and address gaps highlighted by the COVID-19 pandemic.
Finance Minister Chrystia Freeland signalled Thursday that broader reforms are still coming.
"My colleague Carla Qualtrough ... is hard at work on broader EI improvements and that is important work that has to be done thoughtfully and carefully," she told reporters in Surrey, B.C.
Freeland cited two changes to EI announced in the budget.
One measure proposes extending a temporary change to EI introduced in 2018 that increases the number of weeks of coverage available to seasonal workers. The other aims to strengthen prohibitions against employee misclassification for federally regulated gig workers.
The National Council of Unemployed Workers reacted to the budget by calling on the NDP to withdraw its support of the Liberal government through the parties' supply-and-confidence agreement.
"We are fully disappointed, because the government is betraying its commitment and choosing once again the status quo," Pierre Cere, a spokesperson for the group, said in a statement.
"In light of this situation, we are asking the NDP to withdraw its confidence in the government and for MPs to put their seats on the line over this issue."
A member of the Canadian Employment Insurance Commission, which includes both labour and business voices and helps to oversee and review the EI system, added to the criticism.
Pierre Laliberte, its commissioner for workers, said it was "very disappointing" to see EI reform left out of the budget.
At the very minimum, the federal government could have included interim measures to address major gaps and expand access, he said. "It really is absolutely bizarre that the government would not have seen fit to at least ... plug some holes here and there."
During the pandemic, the government had expanded access to the EI system via temporary measures. Those expired in September, despite staunch opposition from labour groups and the NDP.
Under the temporary measures, workers qualified for EI based on a national requirement of having worked 420 insurable employment hours, whereas workers would normally need between 420 and 700 hours depending on the regional unemployment rate. And monies paid upon a worker's separation from a job, such as severance, were not deducted from the benefits.
The lack of clarity on the future of EI reform comes as many economists anticipate the Canadian economy will enter a mild recession this year, which is expected to come with some job losses.
Canadian Labour Congress president Bea Bruske said implementing EI reform would help "recession-proof" the economy for workers by ensuring the social safety net can support those who face layoffs.
But Laliberte said EI reform doesn't appear to be a priority for the Liberals or NDP. Both have been more focused on delivering a federal dental care plan, he said, despite health care being under provincial jurisdiction and the EI program being a federal responsibility.
"It's not sexy," Laliberte said of EI reform. "Announcing something new, like dental care -- it's glamorous, right?"
In a statement, NDP deputy finance critic Peter Julian said New Democrats are proud of what they accomplished for Canadians in the budget, but they are "not satisfied."
"It is shameful that the Liberals failed to include EI reform in the 2023 budget as economists are warning that we're heading into a recession," Julian said.
"New Democrats will continue to push the Liberals to reform EI and make sure no worker is left behind."
This report by The Canadian Press was first published April 1, 2023.
A New Democrat MP is trying to convince his colleagues to change the rules that govern the House of Commons in a series of ways he says would instill 'democratic controls' on the prime minister's 'unfettered' powers.
Monday morning, the Public Service Alliance of Canada announced it had reached a 'tentative' agreement with the federal government for the 120,000 picketing Treasury Board workers who, since April 19, had been engaged in one of the largest strikes in Canadian history. Here's a rundown of the developments from Parliament Hill as they happened.
The House committee studying foreign election interference heard from top 2019 and 2021 Liberal and Conservative campaign directors on Tuesday, with party officials from both camps speaking about the need for politicians to come together to address any "legislative gaps" ahead of the next vote.
In the 2023 federal budget, the government is unveiling continued deficit spending targeted at Canadians' pocketbooks, public health care and the clean economy.
U.S President Joe Biden and Prime Minister Justin Trudeau have announced updates on a number of cross-border issues, after a day of meetings on Parliament Hill.
Special rapporteur David Johnston didn't recommend public inquiry knowing it was a pathetically insufficient response for a foreign democratic assault of this magnitude, writes Don Martin in an exclusive column for CTVNews.ca.
To frame a few new illustrations on pages tucked inside a passport as proof of a Liberal plot to purge the Canadian historical record seems like a severe stretch, writes Don Martin in an exclusive column for CTVNews.ca.
Public Safety Minister Marco Mendicino is a bright former federal prosecutor, who was destined to be a star in Justin Trudeau's cabinet. But in an opinion column on CTVNews.ca, Don Martin argues Mendicino has taken a stunning fall from grace, stumbling badly on important issues just 18 months into the job.
It's the most peculiar of elections with the frontrunner and her main opponent being the same person, writes columnist Don Martin. 'In the looming Alberta showdown, it's Premier Danielle Smith versus her mouth.'
Two billion carbon-absorbing trees to be planted by 2030 was the eye-catching Trudeau government promise from four years ago. But according to a new environment commissioner’s report, a mind-reeling list of failures makes it 'unlikely that the program will meet its objectives.'
A 'truly innocent' engaged couple was shot dead while attempting to flee their attacker outside their home after a landlord-tenant dispute escalated on Saturday night, according to police.
Farmers in Atlantic Canada are growing increasingly worried about drought, as many regions on the east coast have been classified as drier than usual for this time of year, with little rain in the forecast.
Turkiye President Recep Tayyip Erdogan won reelection Sunday, extending his increasingly authoritarian rule into a third decade in a country reeling from high inflation and the aftermath of an earthquake that levelled entire cities.
Both Smith and Notley agree the vote will be one of the most consequential in decades, featuring two leaders in their 50s who have been both premier and Opposition leader.
The historic impeachment of Texas Attorney General Ken Paxton was just the first round of a Republican brawl over whether to banish one of their own in America's biggest red state after years of criminal accusations.
Less than two months after he pleaded guilty to storming the U.S. Capitol, Texas resident Daniel Goodwyn appeared on Tucker Carlson's then-Fox News show and promoted a website where supporters could donate money to Goodwyn and other rioters whom the site called 'political prisoners.'
Both Smith and Notley agree the vote will be one of the most consequential in decades, featuring two leaders in their 50s who have been both premier and Opposition leader.
A 'truly innocent' engaged couple was shot dead while attempting to flee their attacker outside their home after a landlord-tenant dispute escalated on Saturday night, according to police.
Alberta NDP Leader Rachel Notley held a major rally in downtown Calgary Saturday morning, while her United Conservative rival had no public events planned this weekend after a final pitch to voters a day earlier.
Farmers in Atlantic Canada are growing increasingly worried about drought, as many regions on the east coast have been classified as drier than usual for this time of year, with little rain in the forecast.
With advance voting open in Alberta and election day looming on May 29, CTV News Edmonton has compiled a list of ridings to watch in the capital region.
The historic impeachment of Texas Attorney General Ken Paxton was just the first round of a Republican brawl over whether to banish one of their own in America's biggest red state after years of criminal accusations.
With days to spare before a potential first-ever government default, President Joe Biden and House Speaker Kevin McCarthy reached final agreement Sunday on a deal to raise the nation's debt ceiling and worked to ensure enough Republican and Democratic votes to pass the measure in the coming week.
Less than two months after he pleaded guilty to storming the U.S. Capitol, Texas resident Daniel Goodwyn appeared on Tucker Carlson's then-Fox News show and promoted a website where supporters could donate money to Goodwyn and other rioters whom the site called 'political prisoners.'
Ukraine's capital was subjected to the largest drone attack since the start of Russia's war, local officials said, as Kyiv prepared to mark the anniversary of its founding on Sunday.
Turkiye President Recep Tayyip Erdogan won reelection Sunday, extending his increasingly authoritarian rule into a third decade in a country reeling from high inflation and the aftermath of an earthquake that levelled entire cities.
One of the so-called godfathers of artificial intelligence says governments need to move faster on regulations to protect against the dangers of the rapidly advancing technology, before it poses a larger threat to humanity.
With just four weeks left until the House of Commons breaks for the summer, the weekly panel of political strategists on CTV's Question Period says it's likely time for the prime minister to shuffle his cabinet.
Almost a year before the closure of 24 Sussex Drive due to disrepair and an infestation of rodents, the chairman of the National Capital Commission's board of directors warned that further delaying a cabinet decision on the fate of the residence would put the whole structure at risk.
Allergies in both children and adults have definitely been on the rise over the last several years, much of the rise in allergies and asthma 'can be directly linked to climate change,' experts say.
It is a world wrapped in mystery - the seventh planet from the sun, Uranus, seen up close just once nearly four decades ago by a passing NASA probe and still warily guarding its secrets.
Egypt unearthed human and animal mummification workshops as well as two tombs in the ancient burial ground of Saqqara, officials said on Saturday, marking the latest in a string of discoveries that the country hopes can help revive its vital tourism industry.
France confirmed its aim to launch a vaccination program against bird flu in the autumn after results from a series of tests on the vaccination of ducks showed 'satisfactory effectiveness,' the farm ministry said.
Several Jewish groups, politicians and an alliance of civil society groups gathered for a memorial ceremony and a protest rally against a concert by Roger Waters in Frankfurt on Sunday evening.
Dedicated fans of 'Succession' are locking in plans to watch the whopping 88-minute finale while turning online for emotional support, memes and endless theories about how the show could end and who will prevail.
Mortgage delinquencies are expected to rise by more than one-third of current levels over the next year, according to some economists. If you anticipate being unable to make your payments and decide to sell your home, here's what an expert says you should consider.
A new report is casting doubt on the idea that Canada is facing a widespread labour shortage and bolsters the arguments by some labour economists that high job vacancies aren't due to a shortage of workers.
As Elizabeth Holmes prepares to report to prison next week, the criminal case that laid bare the blood-testing scam at the heart of her Theranos startup is entering its final phase.
It's a joyous day for Eve, resident falcon at the Université de Montreal: her babies are hatching. The event is being live-streamed on Sunday from a nest box atop the 23rd floor of a tower on campus.
The Toronto Blue Jays took another step toward a turnaround at the end of a rough month, posting their first series win in four ties in well-rounded fashion.
Ryan McMahon homered for the third straight game and drove in five runs, Charlie Blackmon also went deep and the Colorado Rockies outslugged the New York Mets 11-10 on Sunday.
The 24 Hours of Le Mans, the world's most famous endurance race, will be open to hydrogen-powered cars starting in 2026, Pierre Fillon, the president of the Automobile Club de l'Ouest, said Saturday.
A Tennessee company is refusing demands from U.S. regulators to recall millions of vehicles due to airbag inflators that can explode and shoot shrapnel into drivers. While cases are rare, there has been at least one death in Canada, where officials lack the authority to demand a similarly sweeping recall.
Defending Formula One champion Max Verstappen produced a superb final lap to take pole position at the Monaco Grand Prix on Saturday and deny Aston Martin veteran Fernando Alonso his first pole in 11 years.
