EI reforms spark 8 recommendations by Atlantic advisory panel

A new report on how employment insurance reforms areaffecting Atlantic Canadians callsfor revisions and criticizes the federal government for its lack of consultation on the system overhaul that sparked angry protests last year.

The Pan-Atlantic Study of the Impact of Recent Changes to Employment Insurancesays increased communication is needed to deal with the "environment of fear" and "distrust."

Under the reforms, which took effect in January 2013, repeat claimants mustaccept jobs that could pay 30 per cent less than their normal wages and be located an hour's commute away.

Federal officials have said the changes would better connect people with available job opportunities.

But the Atlantic premiers orderedareviewin April 2013,saying there should be further study of the new rules because they adversely affect the region's seasonal-based economy.

TheCouncil of Atlantic Premiers Employment Insurance Advisory Panel, made up of one representative from each of the four Atlantic provinces, came up with eight recommendations in its report, released on Monday.

Among them is to reinstate, in areas of high seasonal employment, the Best 14 Weeks pilot project, which based benefits on a claimant's highest 14 weeks of insurable earnings in a given year.

"By removing this project and increasing the number of weeksthat must be used for EI calculations, working partial weeks becomes a disincentive forworkers and an issue for employers," the 109-page report states.

Reinstatement would "assist in keeping existing worker resources in place and therefore contributing to the continued viability of businesses in these regions."

The financial formula for the Working While on Claim program alsoneeds to be revised to ensure thatclaimantswill utilize this program and employers can find workers for short-term employmentopportunities, the report states.

The other recommendations include:

• The federal government should commit to collaborate with the Atlantic premiers to betterunderstand the unique economic environment in the Atlantic provinces and the role of theEIprogram in workforce and income stability, particularly in seasonalindustries.
• Improved communications to claimants, provincial staff, and Service Canada staff isrequired by the federal government to clearly define all aspects of the changes and to clearlyadvise the public of the intent and the delivery of the EI program changes.
• Service standards for the effective delivery of the EI program must be implemented andadhered to in order to provide the required support to claimants and ensure that claims arecorrectly processed in an efficient manner.
• A clear directive from the federal government needs to be provided to remove the remainingambiguity regarding the interpretation of how workers who have worked out of province or ata location beyond a one-hour commute in the past will be treated under the new EI changesrequiring claimants to accept work of this nature in the future.
• Increased information, communication, and supports are needed for claimants regarding theSocial Security Tribunalto ensure that it is a fair and effective mechanism for thereview of EIclaims.
• Federal commitment to provide EI data to the provinces to ensure ongoing monitoring of theeffects of the EI Changes.

"One thing is abundantly clearAtlantic Canadians have very deep concerns regarding the potentialeffects of the changes," the reportstates.

"Much of the fear stems from the issues surrounding the way thatthe changes were introduced [lack of communications, misunderstanding of the issues]rather than any actual experienced effects."

"Without detailed statistical analysis of theEI claimant data we were unable to provide a detailed data examination of actualeffects. We propose that this type of analysis be conducted in the future by theprovinces."

'Missed opportunity'

The Canadian Taxpayers Federation calls the report a "missed opportunity."

"EI is a mess,"Atlantic director Kevin Lacey said in a statement.

"Taxpayers of our region would be better served by provincial politicians fighting for sensible reforms to the EI system that currently serves no one well, rather than simply complaining to Ottawa to try to keep an unsustainable system intact," he said.

"The math onEIis really simple, we can't grow the region by promoting 14 weeks of work in a 52-week economy."

The federation had recommended to the panel that EIbe replaced with Individual Employment Insurance Savings Accounts.

Under the proposal, premiums would be paid into an account that belongs to individual workers, money would be drawn from the account upon job loss, and any money left over would be transferred to an individual upon reaching the age ofretirement.

Lacey says the growing payroll burden of EI on average Atlantic workers was ignored in the report.In the past five years,EItaxes on Canadian workers have increased 25 per cent to $914 per year, he said. Employers are now paying $1,279 per employee.

The report also failed to address the high rates of EI in some areas where some companies still can't find workers to fill vacation positions, Lacey said.

The Atlantic premiers' panel soughtinput from a wide range of stakeholders, claimants, government representatives and concerned citizens in preparing its report.

The recommendations are based onin-person sessions, a telephone survey and a review ofwritten submissions.

Thepanel members include: Pierre-Marcel Desjardins, Ian MacPherson, Darlene Grant Fiander and Iris Petten.