A House of Commons committee is urging the federal government to overhaul the Employment Insurance system and expand benefits for seasonal workers, a move critics warn could drive up payroll costs for businesses and employees.Blacklock's Reporter says the House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities released a report recommending sweeping reforms to the Employment Insurance program, including longer benefit periods for workers in seasonal industries such as farming, fishing, forestry and tourism.“Seasonal industries are an important part of Canada’s economy and can be critical to the vitality of regions where they operate,” the committee wrote. “However the off-season can bring about financial difficulties for workers in these industries.”The report recommends the federal government permanently increase the number of weeks seasonal workers can receive EI benefits, though it did not provide an estimate of the potential cost.MPs also called on Ottawa to launch a broader review of the EI system, including eligibility rules, benefit duration and how payments are calculated. The committee said the goal should be to create “an adequate, predictable and equitable income replacement that respects the dignity of workers.”The proposals are outlined in the report Workers In Seasonal Industry And The Employment Insurance Program.Canada’s unemployment benefits system dates back to the Unemployment Insurance Act. .Under current rules, workers must accumulate between 420 and 700 hours of employment each year, depending on regional unemployment rates, to qualify for 14 to 45 weeks of benefits worth 55% of insurable earnings.Critics of expanding the system warn the changes would raise costs for both employers and workers who fund EI through payroll premiums.Nancy Healey, the employers’ commissioner on the Canada Employment Insurance Commission, told MPs in a written submission that seasonal workers account for only about 2% of EI beneficiaries.Healey said proposals such as boosting benefit levels to 70%, lowering eligibility thresholds to 360 or 420 hours or extending benefit durations would significantly increase the program’s cost.“The notion of adding additional cost burdens by enhancing benefits or eligibility requirements across the board will have a detrimental impact on the Employment Insurance Fund,” Healey wrote.Conservative MPs also opposed the proposal in a dissenting report, warning that expanding benefits would likely mean higher EI premiums.“Canada should certainly not be increasing payroll taxes,” the dissent said. “As Canadian businesses face already high tax and regulatory barriers, economic uncertainty and ongoing affordability challenges, increasing payroll taxes risks discouraging hiring.”
