News
Workers, employers are calling on the federal government to pay off EI program debt
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OTTAWA — With employment insurance premiums set to rise in the new year, both employers and workers are calling on the federal government to step in and rescue the program from the considerable amount of debt it has fallen into since the COVID-19 pandemic.
The program, which is financed entirely through premiums paid by workers and employers, accumulated $25.9 billion of debt by the end of 2021, according to the Office of the Chief Actuary.
The rise in debt comes after a staggering number of Canadians were unemployed during the pandemic and eligibility rules for the program were relaxed to ease access to jobless benefits.
Since then, the labour market has bounced back and temporary changes to the EI program have been reversed. However, the question that lingers is: who should pick up the tab on the accumulated debt?
Employers and workers are hoping the federal government will.
“The current deficit happened because of the pandemic, and it is not the fault of any employee and it’s not the fault of any employer,” said Jasmin Guénette, vice-president of national affairs at the Canadian Federation of Independent Business.
After a two-year freeze, EI premiums are set to rise by five cents per $100 of earnings in 2023, which is the maximum increase allowed in one year by legislation.
However, the increase falls short of what the Office of the Chief Actuary recommended for the program to break even by 2029.
Nancy Healey, the representative for employers on the Canadian Employment Insurance Commission, said “both business (and) labour are concerned about the amount of debt that’s in the EI account right now.”
The EI system is overseen by a commission that regularly reviews problems and the appeals system, as well as its financing. The commissioners bring the voices of workers and companies to the table, often consulting their constituents and raising concerns with permanent officials.
The representative for workers on the commission, Pierre Laliberté, said the federal government hasn’t indicated whether it has any intention to pay off any of the debt.
“Everyone was surprised by the fact that at budget, there was no or partial compensation for the cost incurred during the pandemic,” he said.
When asked whether there are any plans for the federal government to pay off some of the debt, a spokesperson for Employment Minister Carla Qualtrough said in a statement “these debts are resolved over many years, with the premium rates being determined using seven-year break-even projections.”
“With the 5 cent increase, the rate will become $1.63 in 2023, which remains one of the lowest rates observed in Canada’s history,” said Jane Deeks, the minister’s director of communications.
Who should pay for the accumulated debt is part of a larger discussion on EI reform.
In 2021, the Liberals campaigned on a promise to modernize EI and pledged to expand the program to cover self-employed workers and address gaps, including those highlighted by the COVID-19.
Miles Corak, an economics professor at the City University of New York and longtime researcher on EI, said the reform should include changes to how the program is financed.
In a note published by the C.D. Howe Institute earlier this week, Corak made the case for tripartite funding of the program, where employers, workers and the government contribute.
He argues workers and employers shouldn’t be burdened by unexpected shocks to the economy like the pandemic that cause a spike in “involuntary” unemployment.
“Sometimes workers are willing to work, are in the right place, and have the required skills, but the jobs are just not available,” Corak wrote in the note, which is addressed to Qualtrough.
Corak suggests the federal government should cover increased costs to the program caused by unexpected economic shocks. At the same time, it should collect any surpluses accumulated during times of low unemployment.
Corak, who participated in public consultations held on EI reform, said both employer and workers’ groups seemed to react positively to his proposal.
“I’m sort of looking between the tea leaves here thinking, OK, that might be a way to get federal government financing involvement into the program,” Corak said.
While the Liberals haven’t given a timeline for the implementation of the reform, they are expected to present their plan by the end of the year.
The idea of having the government contribute to the program isn’t new. Prior to the 1990s, EI was financed through contributions from workers, employers and the federal government.
Unifor president Lana Payne says the union wants to see federal contributions reinstated “to both mitigate the accrued program deficit and support long-term enhancements to the program for workers.”
However, Jennifer Robson, a Carleton University associate professor of political management, said she would be surprised if there was much enthusiasm from the federal government to contribute financially.
“My impression is that the current mood from the Department of Finance is much more one of fiscal restraint,” Robson said.
This report by The Canadian Press was first published Oct. 14, 2022.
Nojoud Al Mallees, The Canadian Press
Keffiyehs remain banned in the Ontario Legislature after a unanimous consent motion that would have allowed the scarf to be worn failed to pass at Queen’s Park Thursday.
That vote, brought forth by NDP Leader Marit Stiles, failed despite Premier Doug Ford and the leaders of the province’s opposition parties all stating they want to see the ban overturned. Complete agreement from all MPPs is required for a motion like this to pass, and there were a smattering of “nos” after it was read into the record.
In an email on Wednesday, Speaker Ted Arnott said the legislature has previously restricted the wearing of clothing that is intended to make an “overt political statement” because it upholds a “standard practice of decorum.”
“The Speaker cannot be aware of the meaning of every symbol or pattern but when items are drawn to my attention, there is a responsibility to respond. After extensive research, I concluded that the wearing of keffiyehs at the present time in our Assembly is intended to be a political statement. So, as Speaker, I cannot authorize the wearing of keffiyehs based on our longstanding conventions,” Arnott said in an email.
Speaking at Queen’s Park Thursday, Arnott said he would reconsider the ban with unanimous consent from MPPs.
“If the house believes that the wearing of the keffiyeh in this house, at the present time, is not a political statement, I would certainly and unequivocally accept the express will of the house with no ifs, ands or buts,” he said.
Keffiyehs are a commonly worn scarf among Arabs, but hold special significance to Palestinian people. They have been a frequent sight among pro-Palestinian protesters calling for an end to the violence in Gaza as the Israel-Hamas war continues.
Premier calls for reversal
Ford said Thursday he’s hopeful Arnott will reverse the ban, but he didn’t say if he would instruct his caucus to support the NDP’s motion.
In a statement issued Wednesday, Ford said the decision was made by the speaker and nobody else.
“I do not support his decision as it needlessly divides the people of our province. I call on the speaker to reverse his decision immediately,” Ford said.
Ontario Premier Doug Ford reiterated Thursday that he does not support Speaker Ted Arnott banning keffiyehs in the Ontario Legislature because they are “intended to be a political statement,” as Arnott said in an email Wednesday.
PC Party MPP Robin Martin, who represents Eglinton–Lawrence, voted against the unanimous consent motion Thursday and told reporters she believes the speaker’s initial ruling was the correct one.
“We have to follow the rules of the legislature, otherwise we politicize the entire debate inside the legislature, and that’s not what it’s about. What it’s about is we come there and use our words to persuade, not items of clothing.”
When asked if she had defied a directive from the premier, Martin said, “It has nothing to do with the premier, it’s a decision of the speaker of the legislative assembly.”
Stiles told reporters Thursday she’s happy Ford is on her side on this issue, but added she is disappointed the motion didn’t pass.
“The premier needs to talk to his people and make sure they do the right thing,” she said.
Stiles first urged Arnott to reconsider the ban in an April 12 letter. She said concerns over the directive first surfaced after being flagged by members of her staff, however they have gained prominence after Sarah Jama, Independent MPP for Hamilton Centre, posted about the issue on X, formerly Twitter.
Jama was removed from the NDP caucus for her social media comments on the Israel-Hamas war shortly after Oct. 7.
Jama has said she believes she was kicked out of the party because she called for a ceasefire in Gaza “too early” and because she called Israel an “apartheid state.”
Arnott told reporters Thursday that he began examining a ban on the Keffiyeh after one MPP made a complaint about another MPP, who he believes was Jama, who was wearing one.
Liberals also call for reversal
Ontario Liberal Leader Bonnie Crombie also called for a reversal of the ban on Wednesday night.
“Here in Ontario, we are home to a diverse group of people from so many backgrounds. This is a time when leaders should be looking for ways to bring people together, not to further divide us. I urge Speaker Arnott to immediately reconsider this move to ban the keffiyeh,” Crombie said.
Keffiyehs are a common garment across the Arab world, but they hold a special meaning in the Palestinian resistance movement.
Stiles said MPPs have worn kilts, kirpans, vyshyvankas and chubas in the legislature, saying such items of clothing not only have national and cultural associations, but have also been considered at times as “political symbols in need of suppression.”
She said Indigenous and non-Indigenous members have also dressed in traditional regalia and these items cannot be separated from their historical and political significance.
“The wearing of these important cultural and national clothing items in our Assembly is something we should be proud of. It is part of the story of who we are as a province,” she said.
“Palestinians are part of that story, and the keffiyeh is a traditional clothing item that is significant not only to them but to many members of Arab and Muslim communities. That includes members of my staff who have been asked to remove their keffiyehs in order to come to work. This is unacceptable.”
Stiles added that House of Commons and other provincial legislatures allow the wearing of keffiyehs in their chambers and the ban makes Ontario an “outlier.”
Suppression of cultural symbols part of genocide: MPP
Jama said on X that the ban is “unsurprising” but “nonetheless concerning” in a country that has a legacy of colonialism. “Part of committing genocide is the forceful suppression of cultural identity and cultural symbols,” she said in part.
“Seeing those in power in this country at all levels of government, from federal all the way down to school boards, aid Israel’s colonial regime with these tactics in the oppression of Palestinian people proves that reconciliation is nothing but a word when spoken by state powers,” she said.
Amira Elghawaby, Canada’s Special Representative on Combatting Islamophobia, said on X that it is “deeply ironic” on that keffiyehs were banned in the Ontario legislature on the 42nd anniversary of Canada’s Charter of Rights and Freedoms.
“This is wrong and dangerous as we have already seen violence and exclusion impact Canadians, including Muslims of Palestinian descent, who choose to wear this traditional Palestinian clothing,” Elghawaby said.
Arnott said the keffiyeh was not considered a “form of protest” in the legislature prior to statements and debates that happened in the House last fall.
“These items are not absolutes and are not judged in a vacuum,” he said.
Peggys Cove now has a new bylaw to guide development and protect the iconic fishing village’s heritage, but some say the process to create those rules was unfair.
After more than two years of consultation and five different drafts, this week the province approved a new land-use bylaw that will replace one from 2003.
It aims to preserve the “authentic, traditional fishing village” spirit of the cove, while allowing commercial uses where residents can benefit financially from the thousands of tourists who flock to see the area and lighthouse.
But Paul Paruch is one of many who have voiced concerns about conflicts of interest with the Peggy’s Cove Commission, which led the process with support from Upland Planning consultants.
“[I’m] very disappointed, let down,” Paruch said Thursday.
Paruch and his wife, Claire, had hoped to see their property zoned commercial, as Claire has run a hotdog stand there for years. The couple bought a home there with plans to retire and also rent it out, Paruch said, which would also not be allowed.
The new bylaw addresses everything from dwelling size to regulations on building materials. It also has turned many residential lots along Peggys Point Road into mixed-use “core” zoning that would allow for commercial, residential and community purposes.
Vendors and buskers are no longer allowed in the cove, unless they’re accessory to a special event.
Brian Cottam said the new bylaw is a major blow for him and his wife, Kelly Westhaver. Although an early draft of the bylaw zoned their land at 173 Peggys Point Road as commercial, that changed to residential after other residents voiced concerns about having that zoning so close to the lighthouse.
A sale of $1.3 million fell through on the land because a core designation was a condition of the purchase, Cottam said.
“This sale was going to allow us the ability to relax a little and enjoy life, but that has been stripped away,” he said in an email.
Bylaw ‘effectively expropriates’ private land: lawyer
Another property owner, Eleanor McCain, will be getting the commercial zoning she pushed for to allow for new businesses.
However, a lawyer for McCain did raise concerns about how the conservation zone was applied to the rocky waterfront side of her client’s land and many others in the cove. Nancy Rubin of Stewart McKelvey said in a letter to the commission the move “effectively expropriates” private land without any evidence of why it was needed or if it was based on any scientific studies.
Paruch, Cottam and McCain have argued the commission members who run their own commercial enterprises, or are connected to businesses in the cove, are in direct conflicts of interest. The commission is made up of residents, the sitting councillor and representatives from the province to make decisions on changes in the area.
Three commission members must be from the community, but where there’s about 40 permanent residents, it is hard to avoid friendships and family ties.
The Nova Scotia ombudsman’s office is investigating the commission following recent complaints. Both Paruch and Cottam said they had hoped this independent report would lead to the province rejecting the proposed bylaw.
But John Campbell, a lifelong cove resident and owner of the Sou’wester Restaurant in the village and other properties, said the bylaw strikes the right balance.
“I think overall it’s going to be a good thing, but you know when you go through a process like this, not everybody’s going to be happy,” Campbell said.
Campbell said he’s become an “easy target” for the arguments around conflicts of interest, as his daughter Nicole Campbell is commission chair. He said he didn’t get everything he wanted in the new bylaw, pointing out that his request for land to be zoned commercial near the lighthouse was refused.
Campbell agreed that something should change with the makeup of the commission to avoid conflicts in the future, but more analysis should be done on what the fairest approach is.
“It’s a very unique place, Peggys Cove, and you know it’s good to have discussions about it,” Campbell said. “It’s my community that I grew up in, and my closest friends are in, and you know I feel like I could make a living there.”
Economic Development Minister Susan Corkum-Greek said she has faith in the commission’s process, and nothing in the draft report from the ombudsman prevents her from approving the bylaw.
She said the province is also looking at modernizing the legislation governing the commission and the area.
“I think this is an important step, but … it is a first step,” Corkum-Greek told reporters Thursday.
The bylaw will see a new development officer appointed to handle permits and variance requests, while anyone who wants to change their zoning can apply to the commission.
News
Ontario Legislature keffiyeh ban remains, though Ford and opposition leaders ask for reversal – CBC.ca
Keffiyehs remain banned in the Ontario Legislature after a unanimous consent motion that would have allowed the scarf to be worn failed to pass at Queen’s Park Thursday.
That vote, brought forth by NDP Leader Marit Stiles, failed despite Premier Doug Ford and the leaders of the province’s opposition parties all stating they want to see the ban overturned. Complete agreement from all MPPs is required for a motion like this to pass, and there were a smattering of “nos” after it was read into the record.
In an email on Wednesday, Speaker Ted Arnott said the legislature has previously restricted the wearing of clothing that is intended to make an “overt political statement” because it upholds a “standard practice of decorum.”
“The Speaker cannot be aware of the meaning of every symbol or pattern but when items are drawn to my attention, there is a responsibility to respond. After extensive research, I concluded that the wearing of keffiyehs at the present time in our Assembly is intended to be a political statement. So, as Speaker, I cannot authorize the wearing of keffiyehs based on our longstanding conventions,” Arnott said in an email.
Speaking at Queen’s Park Thursday, Arnott said he would reconsider the ban with unanimous consent from MPPs.
“If the house believes that the wearing of the keffiyeh in this house, at the present time, is not a political statement, I would certainly and unequivocally accept the express will of the house with no ifs, ands or buts,” he said.
Keffiyehs are a commonly worn scarf among Arabs, but hold special significance to Palestinian people. They have been a frequent sight among pro-Palestinian protesters calling for an end to the violence in Gaza as the Israel-Hamas� war continues.
Premier calls for reversal
Ford said Thursday he’s hopeful Arnott will reverse the ban, but he didn’t say if he would instruct his caucus to support the NDP’s motion.
In a statement issued Wednesday, Ford said the decision was made by the speaker and nobody else.
“I do not support his decision as it needlessly divides the people of our province. I call on the speaker to reverse his decision immediately,” Ford said.
Ontario Premier Doug Ford reiterated Thursday that he does not support Speaker Ted Arnott banning keffiyehs in the Ontario Legislature because they are “intended to be a political statement,” as Arnott said in an email Wednesday.
PC Party MPP Robin Martin, who represents Eglinton–Lawrence, voted against the unanimous consent motion Thursday and told reporters she believes the speaker’s initial ruling was the correct one.
“We have to follow the rules of the legislature, otherwise we politicize the entire debate inside the legislature, and that’s not what it’s about. What it’s about is we come there and use our words to persuade, not items of clothing.”
When asked if she had defied a directive from the premier, Martin said, “It has nothing to do with the premier, it’s a decision of the speaker of the legislative assembly.”
Stiles told reporters Thursday she’s happy Ford is on her side on this issue, but added she is disappointed the motion didn’t pass.
“The premier needs to talk to his people and make sure they do the right thing,” she said.
Stiles first urged Arnott to reconsider the ban in an April 12 letter. She said concerns over the directive first surfaced after being flagged by members of her staff, however they have gained prominence after Sarah Jama, Independent MPP for Hamilton Centre, posted about the issue on X, formerly Twitter.
Jama was removed from the NDP caucus for her social media comments on the Israel-Hamas war shortly after Oct. 7.
Jama has said she believes she was kicked out of the party because she called for a ceasefire in Gaza “too early” and because she called Israel an “apartheid state.”
Arnott told reporters Thursday that he began examining a ban on the Keffiyeh after one MPP made a complaint about another MPP, who he believes was Jama, who was wearing one.
Liberals also call for reversal
Ontario Liberal Leader Bonnie Crombie also called for a reversal of the ban on Wednesday night.
“Here in Ontario, we are home to a diverse group of people from so many backgrounds. This is a time when leaders should be looking for ways to bring people together, not to further divide us. I urge Speaker Arnott to immediately reconsider this move to ban the keffiyeh,” Crombie said.
Keffiyehs are a common garment across the Arab world, but they hold a special meaning in the Palestinian resistance movement.
Stiles said MPPs have worn kilts, kirpans, vyshyvankas and chubas in the legislature, saying such items of clothing not only have national and cultural associations, but have also been considered at times as “political symbols in need of suppression.”
She said Indigenous and non-Indigenous members have also dressed in traditional regalia and these items cannot be separated from their historical and political significance.
“The wearing of these important cultural and national clothing items in our Assembly is something we should be proud of. It is part of the story of who we are as a province,” she said.
“Palestinians are part of that story, and the keffiyeh is a traditional clothing item that is significant not only to them but to many members of Arab and Muslim communities. That includes members of my staff who have been asked to remove their keffiyehs in order to come to work. This is unacceptable.”
Stiles added that House of Commons and other provincial legislatures allow the wearing of keffiyehs in their chambers and the ban makes Ontario an “outlier.”
Suppression of cultural symbols part of genocide: MPP
Jama said on X that the ban is “unsurprising” but “nonetheless concerning” in a country that has a legacy of colonialism. “Part of committing genocide is the forceful suppression of cultural identity and cultural symbols,” she said in part.
“Seeing those in power in this country at all levels of government, from federal all the way down to school boards, aid Israel’s colonial regime with these tactics in the oppression of Palestinian people proves that reconciliation is nothing but a word when spoken by state powers,” she said.
Amira Elghawaby, Canada’s Special Representative on Combatting Islamophobia, said on X that it is “deeply ironic” on that keffiyehs were banned in the Ontario legislature on the 42nd anniversary of Canada’s Charter of Rights and Freedoms.
“This is wrong and dangerous as we have already seen violence and exclusion impact Canadians, including Muslims of Palestinian descent, who choose to wear this traditional Palestinian clothing,” Elghawaby said.
Arnott said the keffiyeh was not considered a “form of protest” in the legislature prior to statements and debates that happened in the House last fall.
“These items are not absolutes and are not judged in a vacuum,” he said.
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