National Board of review on Employment Insurance

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Impacts The changes to employment insurance that will have the greatest impact on First Nations involve the definition of suitable employment, the number of best weeks used to calculate the amount of benefits, and the amount that may be earned during a benefit period. Contrary to the provisions of articles 19 and 21 of the UNDRIP, the changes to the Employment Insurance program announced by the federal government during the adoption of Budget 2012, which were defined and progressively implemented with the adoption of Bill C-38, will hinder the improvement of the economic and social situation of many First Nations citizens and communities whose particular socio-economic conditions were not given adequate consideration in the development and application of the changes – thus perpetuating discrimination by omission on the part of the federal government towards First Nations: a. Seasonal workers (fishing, forestry, construction, tourism, etc.) will be categorized as frequent claimants and, consequently, they will be forced to accept lower-paying jobs farther away from home and outside their usual occupation which will have a greater effect on First Nations since employment opportunities and the economy of many communities are heavily dependent on seasonal work; i. According to the 2006 Census, the portion of First Nations community members working in agriculture, forestry, fishing or hunting was more than two times greater than that of the non-Aboriginal population of Canada; ii. Also according to the Census, 58% of First Nations community members work part of the year or on a part-time basis, compared to 45% of the non-Aboriginal population of Canada; b. The new way of calculating the amount of benefits based on the highest weeks of earnings will disadvantage a large number of First Nations communities whose number of best weeks of earnings will increase from 14 to 18, 19 or even 20 weeks, thus reducing the amount of benefits – a situation that will affect the claimants as much as their communities, where the unemployment rate largely exceeds that of their respective regions and where the median salary is well below the national median salary; i. According to the 2006 Census, the unemployment rate of First Nations communities (24.9%) was four times higher than that of the non-Aboriginal population of Canada (6.3%); ii. Also according to the Census, the median employment income of First Nations community members ($13,705) was half the median employment income of the non-Aboriginal population of Canada ($27,097); c. In addition, the new way of calculating the amount that can be earned while on claim will also significantly disadvantage claimants who live in First Nations communities, the median employment income in First Nations communities being – as mentioned above – well below the median employment income of the non-Aboriginal population of Canada; i. The attached chart shows that for insurable earnings of $340 or less, the new “Working While on Claim” pilot project will only be advantageous for a claimant who works for a salary of more than $150.

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