As economy slows, Liberals push off EI reform over worries it could drive up premiums
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.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
4th Indian national arrested, charged with murder of Hardeep Singh Nijjar
Homicide investigators in B.C. say murder charges have been laid against a fourth Indian national in connection to the killing of Sikh activist Hardeep Singh Nijjar outside a Surrey gurdwara last year.
'I am angry': Alberta farmers will continue fight over world class motorsport resort
The rolling hills leading to the hamlet of Rosebud are dotted with sprawling farms and cattle pastures -- and a sign sporting a simple message: No Race Track.
Man ticketed after allegedly trespassing again at Drake's Bridle Path mansion to get his bike
A man who tried to access Drake’s Bridle Path mansion earlier this week returned to the property Saturday and was apprehended again for allegedly trespassing, Toronto police say.
Couple randomly attacked, 1 stabbed, by group of teens in Toronto, police say
A man has been transported to hospital after police say he was stabbed in a random attack carried out by a group of teens in Toronto on Friday night.
Millions of Canadians have been exposed to potentially toxic chemicals, and they're not going anywhere
For decades, North Bay, Ontario's water supply has harboured chemicals associated with liver and developmental issues, cancer and complications with pregnancy. It's far from the only city with that problem.
Biden calls Trump 'unhinged,' says 'something snapped' in former president after he lost 2020 U.S. election
U.S. President Joe Biden on Saturday called Donald Trump “clearly unhinged” and claimed that “something snapped” in the former president after he lost the 2020 election.
Wildfire that forced evacuation of Fort Nelson, B.C., caused by tree falling on wires, mayor says
The wildfire that prompted the evacuation of more than 3,000 people near Fort Nelson, B.C., was caused by a tree falling on wires, according to the municipality's mayor.
Switzerland's Nemo wins 68th Eurovision Song Contest
Swiss singer Nemo won the 68th Eurovision Song Contest on Saturday night with 'The Code,' an operatic ode to the singer’s journey toward embracing their nongender identity.
IN PICTURES Northern lights dance across the night sky in southern Ont.
From London, to Grand Bend, Collingwood and Guelph, here are some highlights of Friday night and Saturday morning's northern lights display.
Local Spotlight
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Wilfrid Laurier football player drafted despite only playing 27 games in his entire life
A Listowel, Ont. man, drafted by the Hamilton Tigercats last week, is also getting looks from the NFL, despite only playing 27 games of football in his life.
Federal government bans watercraft from Manitoba lake popular with tourists
The threat of zebra mussels has prompted the federal government to temporarily ban watercraft from a Manitoba lake popular with tourists.
Toronto-area dessert shop featured by Keith Lee forced to move after zoning complaint
A small Ajax dessert shop that recently received a glowing review from celebrity food critic Keith Lee is being forced to move after a zoning complaint was made following the social media influencer’s visit last month.
'Oh Crap!' New exhibit at Canada Science and Technology Museum explores human waste
The Canada Science and Technology Museum is inviting visitors to explore their poop. A new exhibition opens at the Ottawa museum on Friday called, 'Oh Crap! Rethinking human waste.'
Regina police hope new biometric monitoring system will save lives in detention facility
The Regina Police Service says it is the first in Saskatchewan and possibly Canada to implement new technology in its detention facility that will offer real-time monitoring of detainees’ vital health metrics.
Her SUV was stolen in Montreal. A Good Samaritan on Facebook helped her get it back
Just as she had feared, a restaurant owner from eastern Quebec who visited Montreal had her SUV stolen, but says it was all thanks to the kindness of strangers on the internet — not the police — that she got it back.
Vancouver and Edmonton's mayors bet on who will win Round 2 of the playoffs. Here's what's at stake
The stakes have been set for a bet between Vancouver and Edmonton's mayors on who will win Round 2 of the Stanley Cup playoffs.
'No other life taken': Mother leads ATV helmet drive to honour daughter's legacy
A grieving mother is hosting a helmet drive in the hopes of protecting children on Manitoba First Nations from a similar tragedy that killed her daughter.