Province welcomes proposed changes

"Proposed changes to the Employment Insurance program are good news for unemployed workers in Newfoundland and Labrador, and are welcome for seasonal workers in general, and women in particular," said Human Resources and Employment Minister, Julie Bettney, today in St. John�s.

"Since the 1996 changes were introduced, we�ve been lobbying our federal colleagues to restore benefits to these groups, and it�s good to see the Government of Canada taking action," said Minister Bettney.

Of the four key changes announced by the federal government, Minister Bettney pointed out that elimination of the controversial intensity rule, which reduced the amount a person could collect in EI benefits, is one of the most significant. "The proposed change is good news for all repeat users of EI, and particularly for seasonal workers in the fishing, forestry, construction and service industries," said the minister.

Also welcome is the proposed new rule which would allow parents easier access to EI benefits when re-entering the workforce after taking time off to raise children. Women were among those hardest hit by 1996 EI reforms, Minister Bettney noted.

A further positive change is an increase in the amount of income a person can receive before any EI benefits are clawed back through the income tax system.

In addition to benefits for the unemployed, the proposed reduction in EI premiums will benefit both workers and employers.

While these changes are welcome, Minister Bettney is concerned that people hit by the divisor rule will not see any improvements. This rule reduces benefits for those who qualify for EI based on the minimum entrance requirements.

"We encourage the federal government to move quickly to implement the changes proposed, and continue to look for new ways to make the system more responsive to the needs of unemployed workers," said the minister.

Media contact: Marcia Porter, Communications, (709) 729-4062.

2000 10 06 4:25 p.m.