Employment Insurance

Employment Insurance is the major federal government program for laid-off workers and is separated into two distinct programs: EI Part I (income support) and EI Part II (“active employment measures”). Since government changes in 1996, Part I Employment Insurance benefits are harder to get, are shorter in duration, and have lower benefit levels. EI Part II funds will be transferred to the province of Ontario in 2007 when the Labour Market Development Agreement takes effect.

Unionized workers who have had well-paid full-time work usually receive the maximum EI benefit. However, problems are still common. Claims may be denied for different reasons, such as incorrectly completed application forms, innocent reporting mistakes, and complications to claim applications resulting from severance payments. Computerized and phone filing and reporting mean that claimants who have limited skills with the English or French language or with computer technology may become frustrated and even discouraged from applying.

Active Measures for Individuals: EI Part II

Note: As of January 1, 2007, Active Measures will be transferred to the Ontario government, under the Canada-Ontario Labour Market Development Agreement.

Part II of Employment Insurance funds “Active Measures” or labour market programs. Unlike Part I benefits, workers do not have a right (statutory eligibility) to Part II benefits. Part II benefits are discretionary, usually based on an individual’s application for benefits through employment programs in community agencies to Human Resources and Social Development (Service Canada).

For individuals, the following Active Measures may be available:

• Skills Development to obtain training and other necessary skills for employment
• Self-Employment programs to help start small businesses
• Targeted Wage Subsidies to encourage employers to hire individuals whom they would not normally hire in the absence of a subsidy
• Targeted Earnings Supplements to encourage individuals to accept employment by offering them financial incentives
• Job Creation Partnerships to provide individuals with work experience that leads to on-going employment

Training is an important avenue for many workers seeking to upgrade their skills and re-enter the labour market. Helping workers with the application process is an important role played by peer helpers and others in adjustment support programs. However, helping workers access Skills Development funding is challenging. EI regulations around Skills Development funds are not clearly outlined. Inconsistencies can produce many ‘maybes’ and discrepancies.

Unions emphasize the need for an accessible application process and speedy response so as to take advantage of training opportunities. They stress the need for funding approval for academic upgrading (Grade 12 or the General Education Diploma), group training, part-time as well as full-time programs, longer training periods as needed, training prior to layoff and access to training beyond the narrow employability based on a worker’s previous job – all of which are currently difficult to obtain.