Province-wide labour campaign to reform employment insurance lauched in Weyburn

By KIRSTEN LEATHERDALE, of the Weyburn Review

The Saskatchewan Federation of Labour brought a lofty message to Weyburn, Saturday afternoon, in the form of a 26-foot-tall inflatable balloon depicting what they say is an enormous $20 billion surplus in the Employment Insurance Fund.

"Isn't he great!" yelled an enthusiastic SFL President Barb Byers, as the large, greedy-looking man holding a big pot of gold rose to life at the corner of Souris Avenue and Government Road, causing cars and passersby to stop and stare at the spectacle.

That's exactly the reaction Byers and her team were hoping to get. They came to Weyburn to launch a major campaign promoting reforms to the current Employment Insurance program (formerly known as the Unemployment Insurance Program), through the use of the inflatable, newspaper ads, posters, leaflets and postcards to MP's around the province. The launch was held in conjunction with the annual meeting of the Weyburn and District Labour Council.

The balloon, designed by Edmonton artist Memi Von Gaza, has been affectionately nick-named Ben Dover by some SFL executive members. The name refers to what the federal government has been asking unemployed people to do, explained Byers.

In the Souris-Moose Mountain riding, numbers the Canadian Labour Congress and the SFL have obtained by Statistics Canada show a major drop in the number of E.I. beneficiaries. In 1989, there were 1,690 people in the Souris-Moose Mountain area receiving regular benefits. In 1997, that number dropped to 540 - a 68 per cent decline, which is the largest percentage drop of any federal riding in Saskatchewan, representing a loss of 11.8 million in benefits to the unemployed in the area.

"The economic impact in this area is huge in terms of the number of dollars being taken out of the community," said Byers.

She added that small business people in the area won't benefit from reduced premiums, because they won't see a noticeable difference on their bottom line, and there will be less money for beneficiaries to spend in their stores.

Weyburn Labour Council President Wanda Bartlett said a resolution was passed at their annual meeting to support the campaign over the coming months in the Weyburn area, and to try and get a meeting with Souris-Moose Mountain MP Roy Bailey on the issue.

"They have a good issue about the government amassing that amount of money, and I have spoken on that issue in the house," Bailey said.

However, Bailey agrees the surplus should be reflected in premiums. "If the $20 billion excess gained off the backs of the workers and employers were returned to the source, then the payroll deductions to maintain E.I. would not be as heavy for employers and employees," he said.

Within the province, 30 per cent of Saskatchewan's unemployed were receiving E.I. (formerly known as U.I.) benefits in 1997, down from 59 per cent in 1989.

"We're calling for U.I. benefits to be restored back to the 1989 levels," said Byers.

Currently in southern Saskatchewan, where there is an unemployment rate of 7.2 per cent, a person must work 630 hours to qualify for E.I. benefits.

The campaign is based on the idea that the main purpose of E.I. benefits - to replace earnings when a person is unemployed, or during pregnancy and child care leave - is not being met, because Finance Minister Paul Martin has created a surplus in the fund by denying benefits to unemployed Canadians.

Claude Paquette, a representative of Human Resources Development Canada, admits it is harder for the unemployed to receive benefits, but says that's because of a shift in the focus of E.I.

"When the government changed Unemployment Insurance to Employment Insurance (in 1996), it went from a passive program to an active program. Instead of sending a cheque to people sitting at home, more money has been spent on training to help young people find new jobs," he said.

The goals of the SFL campaign include: that 70 per cent of unemployed people be covered by the fund; that weekly benefits should be at least 60 per cent of the claimant's pay; that an independent Unemployment Insurance Commission be created; that the federal government pay back the $20 billion "borrowed" from the fund, repeal the intensity rule (which effects seasonal workers because the more often they apply, the less money they get), and repeal the claw back and other measures; and that U.I. money must not be used for federal debt, tax cuts, or spending on government programs.

Scott Reid, a finance official from Paul Martin's office, says the demands are unreasonable, because there is no separate fund for E.I.

"Since 1986 Employment Insurance has been part of the consolidated books, and for years it ran as a deficit. When it was in a deficit, we carried it. Now it's in a surplus. The suggestion that we're robbing the surplus simply isn't true - it has been treated exactly consistently for 15 years now," he said.


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