Excessive unemployment brings some closer to EI qualification

It sounds like an oxymoron, but in this case a worsening unemployment situation is actually a good thing for others.

An increase in the local unemployment rate is actually working to benefit some of those that were coming up short on EI qualification. The local unemployment rate, estimated to be officially at around ten percent, is providing local fishery shore workers with a slight reduction in the hours needed to qualify for unemployment insurance. The numbers of those that will qualify is small, roughly 20 or so, leaving a larger number still short on qualifying hours and looking at having to turn to social assistance to get by over the winter.

The issue serves to highlight the two problems locally regarding unemployment, and an official rate that may not give a true picture of the jobless situation in the area as well as the requirement to match insurable hours here with those in the more economically boisterous areas of the Northern region. The latter being a requirement that has been the subject of much debate over the last number of months.

While local government officials continue to lobby for changes to the EI system, the need to create full time and long lasting jobs around the area couldn't be more pressing. A constructive plan to increase the desirability of the region to major employers, might do much more in the long run than all the lobbying, trips afar and letters written over EI combined.

While the economic picture is expected to improve over the next few years, it seems to be something driven by other forces, the Port, an LNG firm or a Wind farm consortium.

The city needs to be seen making some progress on its own to show that they are providing the necessary incentives to bring business back to the area. Should that take place the resulting increase in jobs, would do quite a bit to reduce the burden on those that scramble from year to year to try and qualify for EI.

The Daily News had the story in their Wednesday edition on the EI situation and what local residents are hoping to do about it.

EI WOES EASE SLIGHTLY BUT FIGHT FOR FAIRNESS GOES ON
Changes mean some will now get EI but most are still out in the cold
By James Vassallo
The Daily News
Wednesday, October 11. 2006
Pages One and Three

Shorworkers trying to collect unemployment insurance will need a few less hours than originally expected to qualify, however the change is expected to help less than 20 people. Due to an increase in the unemployment rate for the region – which includes the oil rich Peace and booming Prince George – the number of required hours have dropped to 560 from 595.

“Our unemployment rate was between 8.1 and 9 per cent and that translated to 595 hours,” said Joy Thorkelson, United fishermen’s and Allied Workers Union (UFAWU-CAW) northern representative. “That unemployment rate has gone up to from 9.1 to 10 per cent, and that’s why the hours dropped.”

While it’s difficult to say for sure, it is likely that Prince Rupert’s excessive unemployment has driven the rate up at least some, she said. The change is expected to bring the total number of shoreworkers who have met their necessary hours in order to claim EI to around 80 in an industry that employs nearly 1,300 people. Of those, around 500 would normally collect EI at 420 hours – the level formerly required by the government.

“The summer’s been terrible for everyone, you’re going to be looking a low numbers for everyone,” said Thorkelson, noting that many would struggle even at the old levels.

On the provincial front, the EI case was brought to the Minister of Finance while she was in town last week.

The issue is also expected to be brought up at the upcoming Union of B. C. Municipalities (UBCM) conference later this month.

While on the federal level there is currently ongoing discussions in the House of Commons on Bill C-269, a private member’s bill brought by the Bloc Quebecois and supported by the NDP that calls for the adoption of 28 recommendations submitted by an EI committee under the Liberals from 2005. Among the recommendations are a flat 360 hours for all industries across the country to receive EI benefits

“My understanding is that the NDP and the Bloc Quebecois are going to make that a priority,” said Thorkelson. “We’re hoping that it will be debated and passed before Christmas – that’s probably the best we can hope for.”

Coun. Kathy Bedard had traveled to Ottawa to meet with Minister of Service Canada Diane Finley but was “frustrated at every turn.”

I ended up meeting with an assistant deputy minister of another portion of Service Canada,” said Bedard.

“I used the analogy of if 800 people had been affected by an earthquake our country would jump in and help them right away, but (in this case) 800 people in our community are going to be on welfare or if they can’t get welfare I don’t know where they’re going to go.”

While in the nation’s capital Bedard also asked for faster job creation projects in the community and requested that the government look at a different way of calculating insurable hours that doesn’t include the Peace River and larger urban centres with higher employment.

At Tuesday’s council meeting, the city agreed to sent the minister a “strong letter” again calling for the hours to be reduced at least to the former standard of 420.

In the meantime, the fish union with be focusing on finding as many job creation projects as it can to get some money in people’s pockets and ensuring local services are aware and prepared to respond to the crisis as many shoreworkers struggle to make ends meet.