Welfare concerns get a forum at City Council

The anticipated crisis this winter over Employment Insurance shortfalls for local residents and beckoning welfare line ups was the topic of the public session of City Council on Monday night.

With the Social Services Committee of the United Fishermen and Allied Workers Union (UFAWU) doing the prep work, the council members in attendance were provided with a grim report on what to expect for the fall and winter months, especially for those members of their union that have seen a very poor fishing season leave them in dire straits.

The Daily news provided a front page report on the issue in its Tuesday edition. Another forum locally that provided some background on the issue is the princerupert.com portal, which had details not only on the crisis presented to council that night, but information about the council meeting itself.

COUNCIL THROWS SUPPORT BEHIND CALLS FOR EI REFORM
City urges province, feds for action and calls on other city councils for support
By Patrick Witwicki
The Daily News
Tuesday, October 31, 2006

The welfare line-ups this winter could reach epic proportions on the North Coast after fishermen and shoreworkers alike suffered through one of the worst fishing seasons in recent memory. And with the number of hours worked needing to be 560 to qualify for EI, members of the United Fishermen and Allied Workers Union (UFAWU-CAW) could be forced to request welfare during the off-season.

And with both welfare and Employment Insurance in need of an overhaul, two members of the union’s Social Services Committee called for and got support from Prince Rupert council Monday night.

Cecilia Vickers was the main speaker addressing council, and she lobbied the city to write to both the provincial and federal governments regarding the issue.

“The Stats Canada definition of the poverty line in a rural area is $11,000 for a single person per year,” she said. “Welfare pays $6,100 for a full year, so a single person on welfare only makes 56 per cent of the poverty line.

“A family of four gets $400 per month for food, clothing and other expenses. Welfare rates have not increased for 12 years, in fact, they have decreased.

“How can people live on that? They can’t.”

Some of the rules regarding welfare also make it difficult for residents, she said.

Locally, Ocean Fish workers haven’t worked since August 7, and most Canadian Fish workers haven’t worked since mid-August. Because there is a mandatory three week job search, none of those employees have received a single cheque because of these rules, said Vickers.

“No one wants to be on welfare,” she said. “And if people are desperate enough to apply, they usually need the money right away, not in three weeks.”

The other problem is that some of the workers won’t even qualify for welfare, because they have not had two consecutive years of earning $7,000 each year.

“As you know, we usually have one good year followed by a poorer year, so it is hard for lower seniority people to earn $7,000 each year for two years in a row,” said Vickers.

Finally, with the disastrous fishing season that just took place, even senior shoreworkes and fishermen may have to apply for welfare, which could affect their Canadian pension down the road, said Vickers.

“For each month you collect an early pension – that is, if you collect your CPP before you turn 65 – each month you are early, there is a 0.5 per cent penalty. For example, if you start to collect your pension at 64, you are penalized six per cent.”

If you start to collect your pension at 60, you are penalized 30 per cent. Forever. Once you have started your Canada Pension, you cannot cancel,” said Vickers.

“So if you are 60 or older, you pay a huge penalty for drawing welfare.”

Vickers also told council how difficult it is to find enough work to stop collecting welfare. Any money earned while on welfare is “clawed back” at 100 per cent, meaning a single parent on welfare could be worse off after working part-time, once costs like a babysitter or transportation are included.

Plus, with minimum wage currently at $8 an hour, only workers finding full time positions would benefit, said Vickers.

“Even at $10 an hour or $1,400 per month net, it is hard to make ends meet if you are supporting more than yourself,” she said.

Vickers outlined the changes that her union believes are necessary in reforming the system, and requested the council write the provincial government with the following requests:

* Increase income assistance rates by 50 per cent and index them to the cost of living.

* Allow people on welfare to earn up to $500 per month before it is “clawed back.”

* Get rid of the three week job search waiting period and the two-year consecutive earnings period.

*Raise minimum wage to $10 per hour.

*Prevent the forced early access to CPP.

Coun. Tony Briglio suggested council write a letter to government and attach the UFAWU-CAW report.

“Normally, we’re in need of more thought and study at future meetings,” he said.

“But there is a desperate need of welfare and E. I. in the province.”

Council will also send the correspondence to other councils in B. C, seeking support.