Uninsured: Why EI is Failing Working Ontarians

Uninsured: Why EI is Failing Working Ontarians

Posted on 25. May, 2009 by Christopher in News, Reports

For nearly 70 years, Canada’s Employment Insurance Program (EI) – formerly known as Unemployment Insurance – has been assisting unemployed workers by providing them with temporary income relief when they’ve lost their jobs. However, starting in the late 1970s, cuts to the program and changes to the eligibility criteria have made it very difficult for many segments of Canada’s labour force to receive regular EI benefits. Additionally, the program has failed to address the changing nature of work in the country- one that has seen substantial growth in part time, temporary, and contract work. Currently, less than half of Canada’s unemployed workers are receiving regular EI benefits. In 2008, approximately 1 in 5 unemployed workers in Toronto were eligible for EI. While unemployed workers were struggling to make ends meet, the accumulated surplus of EI premiums soared to over $54 billion.

Uninsured broadly examines many of the problematic elements of the EI program that have resulted in inadequate EI access across the country, focusing particular attention to Ontario and Toronto. The report provides recommendations to ensure that the EI program is fair, equitable, and strengthened to provide income support for all unemployed workers during this economic recession marked by massive job loss. Some of the recommendations provided to improve the EI program include:

  1. Decrease the number of qualifying hours to a uniform 360 hours over a 12-month period for all regions across the country.
  2. Raise benefit amounts from 55% to 60% of workers’ insurable earnings, and use workers’ 12 best weeks within the previous 52-week period to calculate benefit amounts.
  3. Eliminate the mandatory two week waiting period.
  4. Implement special emergency benefit measures by extending benefit duration by an additional 52 weeks when the national unemployment rate reaches 6.5%.

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