NLIS 5
May 4, 2001
(Human Resources and Employment)

Seasonal workers to gain through EI legislation changes

Seasonal workers in the fishing, forestry, construction and service industries, and repeat users of the Employment Insurance program are among those who will benefit from the changes to EI legislation now moving through Parliament.

Commenting on the changes to EI legislation (Bill C-2), nearing final passage in the House of Commons, Tom Lush, Minister for Intergovernmental Affairs and Gerald Smith, Minister of Human Resources and Employment, note that these amendments go a long way to correcting the negative impacts that the previous reforms to the EI program imposed on workers. 

"Restoring the earnings replacement ratio to 55 per cent from 50 per cent for repeat users, improving access for women who have taken time off from the workforce to have and care for children, and raising the benefit repayment threshold from $39,000 to $48,750 are changes for which this government lobbied very strongly" said Minister Lush. 

These changes will be retroactive to October 2000, when the federal government committed to amending the EI legislation.

While the changes are welcome, the province remains concerned about the continuing impact of the divisor rule. "This rule is unfairly penalizing those who are very low income and qualify on the basis of the minimum number of hours worked. We will continue to lobby for further change as long as this rule remains, " said Minister Smith.

Responding to opposition concerns with respect to the income support program, Minister Smith notes that the Department of Human Resources and Employment has made significant changes over the past couple of years, changes designed to support those who find themselves in vulnerable circumstances.

"As a minister from rural Newfoundland I certainly understand the difficulties that people face when they are without work," said Minister Smith. "The changes we have implemented under the income support program, including the extended drug card program and the Newfoundland and Labrador Child Benefit, are designed to assist people to maintain their attachment to the workforce. We continue to seek improvements to the program that minimize employment barriers within available resources. "

Media contact: 
Marcia Porter, Human Resources and Employment, Communications, (709) 729-4062

Tansy Mundon, Intergovernmental Affairs, Communications, (709) 729-1341

2001 05 04                                                   4:35 p.m.