EI changes will create underground economy, legislators warned
Standing committee of provincial legislature holds session in Souris
SOURIS — The future of P. E. I. rural life will become an underground “cash- based” economy if proposed changes to the employment insurance program are implemented by the federal government, a standing committee was advised here Wednesday night.
“I truly think the federal government feels it is doing the right thing,” said Cardigan MP Lawrence MacAulay. “But they don’t understand how much hurt these changes will deliver.”
Joined by fellow Liberal, Malpeque MP Wayne Easter, the pair presented objections to a new federal pilot project Working While on a Claim, to be implemented next year.
“If these changes go ahead, most people working in seasonal positions will lose between $ 70 to $ 120 every two weeks,’’ said Easter before the Standing Committee on Fisheries, Transportation and Rural Development.
“I shouldn’t probably say this at a public meeting, but the minister should stick this where the sun don’t shine.”
The meeting held at St. Mary’s Hall was packed mostly with people who will bear the brunt of the changes by losing out on income or forced into lesser paying jobs far from their homes.
Standing committee member Paula Biggar noted the public sessions with the greatest attendance have been in Souris and Alberton, where the proposed changes will have the greatest impact on seasonal jobs.
“These changes won’t just hurt the person losing out in income, but it’s going to take money out of a community and close hardware stores, restaurants and services we depend on in rural P. E. I.,’’ said MacAulay.
“People looking to fill a small job while collecting will lose half the money they make. Who will come to work for half the money?”
The proposed EI changes surfaced in a news release issued at 6 p. m. on the Friday before the Thanksgiving weekend. Even employees at Human Resources Development Canada had no details.
The federal government plans to reduce the EI budget from $ 103 million to $ 44 million.
The changes proposed would, for example, claw back 50 per cent of a $ 100 paycheque earned by someone collecting EI who did a side job such as grass cutting in a community, picking potatoes for a farmer, shifting at a fish plant or helping out during busy times in the tourist industry. The changes would also make it mandatory for individuals to accept a job paying 30 per cent less.
“It bothers me that these changes have been designed to perpetuate the myth that people are lazy and don’t want to work,” said Ann Wheatley of the Cooper Institute.
“People are not trying to take advantage of the system.”
The standing committee was told there are more active EI claims in the city of Montreal than in the three Maritime provinces.
“We’re already the lowest province for wages and I’m afraid the impact will only increase the need at food banks,” said CUPE member Leo Cheverie, urging the committee to recommend a liveable wage as part of its mandate.
Easter said restaurants and farmers won’t be able to get extra people for a few days when needed because those collecting EI will be penalized.
“You won’t be able to get extra people to help and so the employer has to pay cash which leads to a cash economy that none of us wants to get into,” he said. “Employers are telling me they don’t want this new system. As a way to help people get employment, they want to send out job notices twice a day to people who don't even have a computer.”
Both MPs said the “easy fix” would be to reinstate the 40 per cent in place under the old pilot ( for extra dollars earned) and allow those most affected to continue working in a seasonal economy.