The intent of the changes is to push unemployed Canadians off the insurance rolls and into the workforce, even if it means they must accept lower-paying jobs or work they might not want.
Currently, less than half the unemployed qualify for Employment Insurance benefits, but the government feels that some EI recipients are taking advantage of the system and passing up local job opportunities.
Under the proposed changes unveiled Thursday, unemployed Canadians will, for the first time, be “required to look for a job every day they receive benefits” and be able to show evidence of their job search.
It rewrites the rules to redefine “suitable employment” and what constitutes a reasonable job search.
The government is making the case that Canadians are collecting Employment Insurance while foreign workers are being allowed into the country to fill job vacancies.
For example, federal officials noted that in Ontario, 2,200 general farm workers submitted EI claims while employers got the green light to hire 1,500 foreign workers for the same occupation.
“This is going to impact everyone because what we want to do is make sure that the MacDonald’s of the world aren’t having to bring in temporary foreign workers to do jobs that Canadians who are on EI have the skills to do,” Human Resources Minister Diane Finley told a news conference Thursday.
“It’s about taking advantage of the labour and skills that we have in this country, putting them to productive use,” she said.
“We want to redress the balance right now so that Canadians get first crack at the jobs before we bring in temporary foreign workers,” Finley said.
The complex new regime breaks EI claimants into three categories: long-tenured workers, frequent claimants and occasional claimants. But in each case, the requirements for hanging on to EI get tougher. A person could be forced to take on a lower-paying job and can be less choosey about the jobs they accept.
“We’re changing the compensation structure of EI to make sure that workers are always better off taking available work than being solely on EI,” she said.
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EI recipients will receive more information from the government on employment opportunities, including a “Job Alert” system based on two emails a day to each EI claimant. The government also intends to ensure employers are seeking Canadian workers before bringing in foreign labour.
Finley touted the changes as an “improvement” to the EI system. The changes only apply to Canadians receiving regular and fishing EI benefits. They do not apply to Canadians receiving EI special benefits, such as maternity, parental, compassionate and sick leave.
Officials said they were moving “to a more precise regime” so EI claimants better know what is expected of them.
They denied that the purpose of the change is to curb costs.
“The goal of this is not to save money for EI . . . the goal is to match employees and employers,” an official told reporters at a Thursday morning briefing.
He said it was “extremely difficult” to estimate what the outcome of the changes would be but estimated that less than one per cent of claimants would see their benefits cut off.
The official said the government is earmarking $21 million over two years to help administer the changes to the EI system, which has in recent months been hard for the unemployed to access because it has been overloaded with claimants. The official said there are always challenges related to reforming a government program.
In a news conference, Finley said some of the $21 million will be used to hire compliance officials to ensure EI recipients are following the new rules.
“There will be some (money) set aside for integrity issues because we want to make sure Canadians are compliant and, as always with change, there are going to be some growing pains,” she told reporters.
The new rules, Finley said, will “strengthen requirements for Canadians receiving EI benefits to actively look for and accept all suitable work.”
But she said people will not be required to take jobs well below their skill level or that require more than a one-hour commute (except in areas where longer commutes are the norm).
“These changes are not about forcing people to accept work outside their own area, or taking jobs for which they are not suited,” Finley said.
“We wanted to help people find jobs within their skill range and within their approximate previous salary range,” she said.
The changes underscored deep divisions over the operation of the EI system, which has long been a lightning rod for criticism from all sides of the political spectrum.
NDP finance critic Peggy Nash said the new rules are “scapegoating” the unemployed by suggesting they are not looking hard enough for work.
“The implication is that people are lazy and don’t want to work,” she said.
“What I hear from this government is a message to demonize people who through no fault of their own are unemployed,” Nash said.
The overall impact of the Conservative changes to EI and the Temporary Foreign Worker Program will be to drive down everyone’s wages, Nash said.
But the Canadian Taxpayers Federation (CTF) applauded the new regulations.
“The new EI rules strike a blow for hard-working Canadian taxpayers, against habitual pogey collectors who have been enjoying part-time work with other people’s money for far too long,” said CTF Federal Director Gregory Thomas.
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