Reuters: Regulatory News: Canada tightens rules to get employment insurance

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Canada tightens rules to get employment insurance May 24th 2012, 15:18 Thu May 24, 2012 11:18am EDT * Trying to tackle joblessness alongside job shortages * Frequent claimants will have to take pay cuts up to 30 pct * Minister says people will not be forced to move * Part of prime minister's "transformational changes" * Want employers to hire Canadians before foreigners OTTAWA, May 24 (Reuters) - Canada's Conservative government announced tighter rules for employment insurance on Thursday to try to deal with the anomaly of high unemployment alongside job shortages in certain areas. Frequent claimants, for example in the seasonal fisheries industry, will be required after seven weeks of receiving benefits to take any job in their region for which they are qualified, even if it means taking a 30 percent pay cut. Unemployed people have always been required to search for and accept "suitable employment" in order to draw benefits, but the terms have not been spelled out. The move is part of what Prime Minister Stephen Harper has called transformational changes to help Canada compete better, but opposition politicians have raised the prospect of people being forced to move to oil-rich Alberta, or unemployed teachers having to pick apples on local orchards. It has the potential for a backlash in areas of high and seasonal employment, for example in Atlantic Canada, which has more than 10 percent of the seats in the House of Commons. People will not be forced to move to get benefits but will be expected to commute up to an hour if they have the means of transport. "Let me be crystal clear," Human Resources Minister Diane Finley told a news conference. "The changes that we are proposing to EI (employment insurance) are not about forcing people to move across Canada or to take work that doesn't match their skill set. Our goal is to help Canadians find local work that matches their skills." Some employers were turning to foreigners even while Canadians were making claims for employment insurance in the same occupation and province, Finley said. For example, 2,200 general farm workers submitted claims in Ontario in the same month that employers received approval to hire more than 1,500 foreigners for the same jobs. Finley said she wanted to ensure that "employers consider Canadians before hiring temporary foreign workers." Only once the local supply has been exhausted will employers be allowed to look offshore for workers. The rules are expected to take effect in early 2013. Link this Share this Digg this Email Reprints

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