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Now is the time to reform EI

There’s a report today in the Globe and Mail that some Canadians are waiting up to 6 weeks for Employment Insurance payments.

EI payments are normally supposed to be received within 28 days of making an application. There is a mandatory 2 week waiting period, followed by two weeks to process and receive the payment.

The backlog appears to be caused by both a higher number of applicants and an inability of Service Canada to deal with the number of applicants.

This delay is highly problematic. Someone who is laid off still has bills to pay: rent, utilities, credit cards and any loan repayments are all due monthly. Groceries need to be purchased regularly. No one can simply wait 6 weeks for income. To make them do so over the Christmas season seems, well, highly Scrooge-like.

The delay could be remedied in part by eliminating the two week waiting period, as recommended by the opposition parties. Even with the slower than usual processing, payments would still be arriving within the first month of unemployment.

Service Canada’s capacity also needs to be adequate to deal with the numbers of unemployed. Those numbers are more likely to rise than to drop in the near future.

But this issue is about more than individual suffering. EI is one of several automatic stabilizers for our economy, since total payments increase as unemployment rises. It ensures there is cash flowing into the economy. Recent governments of different political parties have weakened EI, as well as other automatic stabilizers like a progressive tax structure, social assistance and other individual transfers.

Our EI system needs to be completely reformed so that it meets the needs of Canadian workers. Only 40% of Canada’s unemployed can even access EI, which excludes many who have paid regular premiums. Those who do not qualify for EI are also shut off from the training programs that are available through EI.

Carol Goar also has an excellent article in today’s Toronto Star summarizing the comments of last week’s National Council of Welfare report. Sadly, the pattern for welfare incomes and EI are the same: our governments have no problem leaving Canadians existing at barely subsistence level.

It’s to our shame. We can do so much better.

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About author

Chandra Pasma is a former CPJ Public Justice Policy Analyst.

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Comments:

re: emerging and relevant issues
Does CPJ have any thought on what is happening in the middle east this Christmas holiday or does it just deal with issues within Canada?

While we are certainly tremendously troubled by the current situation in Gaza, our focus is primarily domestic. I encourage you to take a look at some of the work being done by the Canadian churches and KAIROS. www.crcna.org www.devp.org www.presbyterian.ca www.pwrdf.org www.united-church.ca www.kairoscanada.org

My husband's workplace was destroyed in a fire in early November. He applied for EI the very next day. We didn't receive our first payment until over 2 months later. We have a nine month old baby to take care of, so we called and appealed to Service Canada but they were of no help. Luckily I am on Maternity Leave still so I am receiving a small amount of money, but not nearly enough to cover our expenses. I can't imagine how a single person living alone would survive in this situation. I'm ashamed of our Government's lack of sympathy.

Thanks for sharing your story, Karen. I can't imagine waiting two months for EI! There is some small hope that the government will reform EI when parliament is reconvened. We will have to keep pushing for it so that no one else needs to wait that long.

Just to let you know about my situation. I was laid off due to my company moving to another province on Sept 29 2008. Granted a got a severance package. but the way our gvt taxes the package I will not receive any EI until mid to late feb 2009.. They are taking weeks of payments from the severance which THEY TAXED as income..although my severance with taxes took me till Dec 2008 I still have this "make believe money that they took as tax"...first of all when you get a severance the EI should take in consideration the NET AMOUNT and not the GROSS AMOUNT as they took over 30% of the earning in taxes..but I still have to wait 5 MONTHS when really that severance money was 3 MONTHS salary ( once the tax were paid) How can you explain the amount of money I made working last me 3 months and now I can survive paying my mortage, bills and food on a supposed 5 MONTHS severance???... on top of it that 2 weeks waiting period is a slap in the face..I never collected EI and I am so frustrated about the process.. I had to dig into my RRSP to pay my bills ( which is TAX again)... where does this milking stops???? I even went to a second carrier assessement that was a JOKE too... basically if you do qualify for the program you have to make sure that it is at the right time..example. I wanted to go back to college in Sept 2009..my EI would run out in November 2009. well guess what TOO BAD.. then I would have to get a line of credit ( which is hard due to the fact that I would be a full time student )... sell my house...or go for a loan.. I just dont get it....this is a scam ...all of it...feel good programs for the gvt to pat themselves!..these are not made for hard working MIDDLE CLASS taxpayers...The ones who are paying with taxes all these lovely goodies..

I have almost the same story as joanne....... I am getting laid off due to my company closing the department that I worked in for 22 years.. on April 30 2009. Granted I will get a severance package. But the way our gvt taxes the package I will not receive any EI until my severance is used up... They will be taking weeks of payments from the severance which THEY TAXED as income. although my severance was to be used in my retirement in two years, I still have this "make believe money that they took as tax"...first of all when you get a severance the EI should take in consideration the NET AMOUNT and not the GROSS AMOUNT as they took over 30% of the earning in taxes. but I still have to wait 11 MONTHS when really that severance money was 8 MONTHS salary ( once the tax were paid) How can you explain the amount of money I made working last me 11 months and how I can survive paying my mortgage, bills and food on a supposed 11 MONTHS severance???... On top of it those 2 weeks waiting period is a slap in the face. I never collected EI and I am so frustrated about the process... I will have to dig into my RRSP to pay my bills (which is TAXED again)... where does this milking stops???? .. Sell my house...or go for a loan... I just don’t get it....this is a scam ...all of it...a.feel good program for the gvt to pat themselves! These are not made for hard working MIDDLE CLASS taxpayers...The ones who are paying with taxes...

I was lad off from my job at the end of january 2009. I waited the 2 weeks to see if i would get my record of employment and i did not! My mom called the government and said that I could still go online and file for EI. So i did that. I was late sending in my records of employments because i was waiting for people to send them to me after i requested more than once for them. I finally got one of my record of employments at the beginning of march 2009 Which i should have gotten in September 2008! (That business closed and the government said that they had until the end of february to give me my record of employment). I only just got my record of employment from the place where i was laid off in January 2009! Only took them about 2 months to get it to me. In january i made less than $500 and of that $500 almost half of it went to my student loan payment! The government is now paying the interest on my student loan so i don't need to pay that. My mom has had to work overtime just to get some extra money to give to me so i can at least keep my cellphone. For people that live pay cheque to pay cheque we can't wait 6weeks for EI to kick in! I've waited my 6 weeks and i still have no money! I have creditors calling every day! i keep telling them that they will get money when i get money, but the thing is they need to know when that will be. I have absoutley no money!! i have to borrow money from family or even friends just to get gas money so i can hand out resumes! I just did my report on the weekend for EI and i was thinking i would get money this week well that never happened. Now its looking like i won't get anything until april! How do they expect anyone to get through life without any income for 2 months or more! I was a waitress so i only made $7.60/hour i was only making like $500 every 2 weeks! i was living pay cheque to pay cheque but i have come to realize that i need something better than a waitress job! And to top it all off the place where i was laid off in January 2009 is now hiring! Can they do that? Shouldn't i get my job back before they hire more people? The longer this goes on the more stressed i get! They need to make it so that from the moment you start an application for EI that ypou get a little something even if its only $50 every 2 weeks! A little is better than nothing!

i told my company that i had to go home and look after a family member , they told me to take as much time as i needed , while i was there i applied for E.I because i had no money coming in and couldnt live off my dad ,E.I phoned me after a couple of weeks of waiting ,and asked me the reason that i left my place of employment ,i told her the situation ,and it was not good enough for her ,and i was refused my claim ,so i made arrangements for my dad and went back to work at the same place ,a few months later i was laid off so i tried to reactivate my claim ,they sent me a letter they wont reactivate my claim due to past disqualification and that i dont have enough hours of insurable employment and to appeal the matter .I thought e.i. was there to help us in these troubled times .Any advice anyone can give me on this matter would be a great help

Ya this all is pretty sad...I'm going on waiting almost 5 months for my claim to be completed here in st. catharines. I've been to my local service canada center twice, called 13 times, and have had 4 call backs sent on my report. These people have no consideration for the fact that I have lost everything I've worked to get over these last 5 years of working everyday, I've spent my entire savings account and lost my apartment, car, phone, ... It's just a nightmare and these people could give 2 shits about us. BYE

I would just like to say this is pretty pathetic, Not only are there people that do not have any work being put behind in their bills but so are the people that are going on maternity leave and sick leaves. I say this because I applied for Materntiy Benefits on Nov 19th and they have yet to process my request! I have a baby that is due Jan 19th and I have bills piling up, things that need to be bought for the new arrival and I can't even afford food for myself because I have no money! I used to work a retail job which I've been off now for a month, so those wages have long been spent and not to mention christmas is next week! Its so nice of them to leave me high and dry for the holidays, thanks again Ontario!

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