Labour group also calls on government to improve EI benefits
The federal government needs to take "bold and direct action" to create jobs and help the unemployed, according to the Canadian Labour Congress (CLC).
"The upcoming federal budget must focus on creating full-time jobs and fixing our broken Employment Insurance program. It can't just focus on the needs of the banks and corporations that got us into this mess," said Ken Georgetti, president of the umbrella organization for Canadian unions.
In recent years, six in 10 unemployed men and seven in 10 unemployed women failed to qualify for EI benefits, even though they had paid the premiums, said Georgetti. And for those who did qualify, the benefits they received were smaller and didn't last as long.
"Fixing this important program must be part of the government's plan to help people get through what is now an economic recession," said Georgetti.
In addition to help for the unemployed, Georgetti said the upcoming budget needs to kick-start the economy through a major program of public spending on infrastructure to create jobs. But it must also contain measures to protect a further loss of jobs, particularly in manufacturing, mining and forestry as well as measures to protect the pensions and retirement savings of Canadians.
CLC's recommendations for the federal government:
• Increase Employment Insurance benefits. Workers have paid billions into EI but benefits have been drastically reduced. The EI fund is running a huge surplus and it should be used to improve access to benefits for unemployed workers.
• Ensure that laid-off workers have access to training and adjustment programs.
• Launch a major public investment program to create good jobs in infrastructure, manufacturing and public services, and link this program to a made-in-Canada procurement policy. Ensure that government contracts promote a strong public sector, unionization and inclusion of women and workers of colour in good jobs.
• Provide a pension guarantee fund for workers’ pensions, like in the United States. Phase in increases to the Canada and Quebec pension plans and immediately raise Old Age Security to protect retirees and reduce reliance on private pensions and registered retirement savings plans.
• Invest directly in sector renewal strategies designed to save jobs and promote successful restructuring in hard-hit industries such as auto and forest products. Pursue strategies to support cultural industries, energy efficiency, renewable energy and other promising sectors.
• Maintain equalization and other transfers to provinces and cities for public infrastructure, public services and social programs.
Other proposals to improve EI include:
• reduce reported delays in the promised 28 days it takes to process an insurance claim
• make hours of work requirements the same across the country for all claimants
• eliminate a two-week waiting period in which no payments are made to successful claimants.