EI

[Topaz]

Every worker in Canada contributes to EI mostly because they have no choice but its suppose to be there for there times are tough and they find themselves unemployed, through no fault of their own. It does need changes to it, in my view. The two week waiting period, when there are NO jobs in a person's area, then they should be able to only have to wait ONE week. The way the system is now, you put your two weeks in and then it takes another 4 weeks before you get your first cheque and the highest you can get is around 450.00 or less depending on your pay cheque. A friend, knew they were going to be laid off so they took 2 weeks vacation pay thinking it would help them over the waiting period but they found out no, you can't have any money coming in at all, and so its 6 weeks of no money coming in and they wonder why some people are losing their homes or declaring bankruptcy. The stress levels are high for them and they have a small savings but not enough to get them through to the six weeks. They are even going to the Food Bank, which normally they were always the givers. So the backend of adding to EI isn't good for the families that need no waiting period time.

[sgarrydemocracyparty]

Every worker in Canada contributes to EI mostly ...

Hi, your ideas sound reasonable but they have to be affordable. Let's look into it.

But I'll throw in my personal circumstances since they apply to the many, many (millions) of "workers" who aren't covered by EI: The sole proprietors or self-employed, not to mention the never-employed.

We're utterly ineligible for EI, sure, and we pay no premiums for that "privilege". It doesn't make it any easier when our business disappears, for sometimes weeks at a time. And from my experience, we "contractors" or self-employed types are the first to go in a downturn or "reorganization" because we're considered luxuries.

And of course no severance, vacation pay to use, banked sick days to cash in, etc., and if we cash in RRSP we're crucified by the taxman.

I'm not envious about what "workers" get -- we have other advantages, including our "independence", which most self-employed treasure over almost everything else.

But, as an example, optional WSIB is newly-available to the self-employed in Ontario and as soon as I heard about it, I jumped on. And I now happily pay my premium in case I ever need it.

So as a self-employed person I'm not looking to get a hand-out for nothing. Give me optional EI and I'd happily pay into it. I'm sure there're some silly Rogers Cable channels I can cut off, or Internet Light vs. Internet Ultra, to cover the cost!

I hope the Tories proposal to "discuss" optional EI for the self-employed doesn't get lost amidst the grief being suffered elsewhere.

Edited July 25, 2009 by sgarrydemocracyparty

[Riverwind]

The two week waiting period, when there are NO jobs in a person's area, then they should be able to only have to wait ONE week.

I don't know the rational behind the two week waiting period but it is not unreasonable.

The way the system is now, you put your two weeks in and then it takes another 4 weeks before you get your first cheque and the highest you can get is around 450.00

A better reform would make benefits dependent on your number of claims. i.e. work 30 years with no claims then you get higher benefits for longer. Make a claim every year and your benefits go down.

its 6 weeks of no money coming

They had two weeks of vacation pay so wait is still only 4 weeks.

in and they wonder why some people are losing their homes or declaring bankruptcy.

It is unlikely that EI will save someone from losing their home if they have no rainy day savings. It is unreasonable to expect EI to shield people from all consequences of job losses. It is better than nothing.

[Riverwind]

I hope the Tories proposal to "discuss" optional EI for the self-employed doesn't get lost amidst the grief being suffered elsewhere.

EI for self-employed is a bad idea. A self employed person would be better off putting the premiums into a rainy day savings account.

You also need to remember that self-employeed EI will require much longer waiting periods because most businesses have periods of time where cash is not coming in due to normal lulls in business or delays getting payments. It is much tougher to determine when a self employeed person is really unemployed.

Edited July 25, 2009 by Riverwind

[capricorn]

It is much tougher to determine when a self employeed person is really unemployed.

This I think will be a very difficult question for the EI reform panel to address. I doubt if five politicians and one bureaucrat possess the necessary knowledge and skills to design the necessary criteria. Reaching out for input by the business community will be a must. Regardless, whatever criteria is arrived at, if any, it surely won't please everyone.

The point is that although there is a real policy issue to be addressed here, coming up with a not-incredibly-boneheaded approach to extending EI to the self-employed is not going to be a simple task. It may even be an impossible one.

So we really shouldn't expect much to come from the panel, which will neither have the expertise nor the time to deal with these issues. Probably the best we can hope for is a clearer notion of just how thorny the problem is.

http://worthwhile.typepad.com/worthwhile_c...loyed.html#more

[Malaclypse the Younger]

If you're self-employed, you should be financially savvy enough to be self-sufficient, I think. You're already managing a lot of finances, and if you do it responsibly, you should have invested the money you've made into ensuring your survival in an economic downturn.

Self-employment also doesn't mean that your business is static. You have to always come up with new ideas to keep your business diverse. If you can't do that, you won't survive anyway. In bad economic times, it means you'll just have to refocus your interests. Whether money is tight or not, it's always important to be on the move.

[madmax]

If you're self-employed, you should be financially savvy enough to be self-sufficient, I think. You're already managing a lot of finances, and if you do it responsibly, you should have invested the money you've made into ensuring your survival in an economic downturn.

Business

Albertans No. 1 in personal bankruptcy

Number of new cases for May up 34 per cent nationwide--but 86 per cent here

Alberta is leading the way nationwide for personal bankruptcies.

Albertans continue to file for personal bankruptcy at an alarming rate as the recession affects their ability to pay their bills.

Alberta was the only province to record an increase in total insolvencies in May.

His company's own numbers show bankruptcy spikes in Fort McMurray and Peace Country, which have been hit by the oilpatch slowdown.

The rate of increase in bankruptcies will go down slightly over the coming months, but will still be much higher than historical numbers, Alam said.

Business bankruptcies mostly involve smaller operations such as subcontractors, he said.

Banks are reluctant to foreclose on larger corporations because they won't get as much money for them. They prefer to keep them afloat until economic conditions improve, he added.

..... also doesn't mean that your business is static. You have to always come up with new ideas to keep your business diverse. If you can't do that, you won't survive anyway. In bad economic times, it means you'll just have to refocus your interests. Whether money is tight or not, it's always important to be on the move.

Regardless, some people would suggest that the commenter earlier who is self employed will be out of work courtesy of Dr. Summeroff.... LOL

If you have ever ran a small business, you would understand that in tough economic times, they like workers are last on the list and often get the shaft from larger corporations. Non payments or bankruptcy protection for the big corps... usually put the self employed or small business owner into financial hardships, loss of work, and or bankruptcy...

[sgarrydemocracyparty]

If you're self-employed, you should be financially savvy enough to be self-sufficient, I think. You're already managing a lot of finances, and if you do it responsibly, you should have invested the money you've made into ensuring your survival in an economic downturn.

Self-employment also doesn't mean that your business is static. You have to always come up with new ideas to keep your business diverse. If you can't do that, you won't survive anyway. In bad economic times, it means you'll just have to refocus your interests. Whether money is tight or not, it's always important to be on the move.

Oh, and I'm very familiar with ups and downs. 20+ years of it, myself.

But everything you say is words of wisdom for the "employed", too.

Just because one has a J.O.B. doesn't mean one is indestructible and that the pension or EI or union or government will take care of you, or keep you anywhere near the lifestyle you're used to when things get tough.

No bigger proof than what's happening out there right now.

Everybody should have that little "side project". Frankly, despite being told by some that they should "be happy/don't worry", all Canadians are capable of a little entrepreneurism and free-enterprise.

It's probably why one of my favourite shows is "Dragons' Den"!!!

[Malaclypse the Younger]

Oh, and I'm very familiar with ups and downs. 20+ years of it, myself.

But everything you say is words of wisdom for the "employed", too.

It most certainly is. I was laid off in February, and I've been on EI ever since. I'm just scraping by on what I get, but without the savings I've kept, I might be homeless right now.

[sgarrydemocracyparty]

It most certainly is. I was laid off in February, and I've been on EI ever since. I'm just scraping by on what I get, but without the savings I've kept, I might be homeless right now.

To bring this back to "politics" a bit, there are three major projects in my life right now, recession or not:

- work, going slowly, but I'm still managing to pay my taxes and bills

- a special "creative" project that will be, hopefully, what I retire doing

- the "political party" project, expensive both in terms of time (5 years now) and cash outlay

Even though I wish I still had some of the good money I've spent on the latter project (check the public events pages, which don't include the flyers and adverts over the years), I think it's a small price to pay toward my responsibility as a citizen. Someday, somehow, we'll get our 250 signatures and with some smart, experienced people running as candidates (not me, I'm just the "chief envelope stuffer") we'll ROCK this place!

[madmax]

It most certainly is. I was laid off in February, and I've been on EI ever since. I'm just scraping by on what I get, but without the savings I've kept, I might be homeless right now.

You can thank the Liberals and Conservatives for reducing how much you receive on EI. You personally receive less then people laid off 13 years ago.

Without the Socialist movement taking root in all parties during the depression and following the war... we wouldn't even have EI.

It is a little trite to blame a self employed or small businessman for wanting what is available to you. The self employed and small businessman must take bigger risks and their isn't a net their to pick them up.

Its painful to watch as failed business owners with no income, have to resort to liquidation and welfare, before jumping back up with another enterprise effort.

There is no reason why EI can't be used like a draw to the self employed. Fact is... you start making money, and EI claws back.

In the meantime, while you are scraping by on EI, I can assure you that one of the handful of changes that I lobbied for came forward this year. Including the ability to keep a larger percentage of weekly earnings if you find work while on EI.

Its 40% now.. thats pretty good, if there is work out there to do and you can do it.

[sgarrydemocracyparty]

There is no reason why EI can't be used like a draw to the self employed. Fact is... you start making money, and EI claws back.

I'd be for that. Most banks won't help, though there's always that 19% credit card!

In the meantime, while you are scraping by on EI, I can assure you that one of the handful of changes that I lobbied for came forward this year. Including the ability to keep a larger percentage of weekly earnings if you find work while on EI.

Absolutely. Or encourage them to volunteer. Anything to avoid killing the human spirit by having somebody sit around hoping the factory recall happens -- if it ever does.

[madmax]

To bring this back to "politics" a bit,

This is politics... This is Federal Politics.... and the Topic is EI

there are three major projects in my life right now, recession or not:

public events

Interesting... You logo looks like a Cut and Paste Job with half from the Conservative Party and the other half from the NDP. Blue/Orange.

The Webpage with its blue colours and orangeblue logo, goes to Liberal Red when you scroll it.

I like anything new, just for the sake of looking....and if you have been at this 5 years.... you've missed 3 important elections..

I hear there is another one around the corner... might be triggered by EI....

oh back on topic.. that was easy....

[madmax]

Absolutely. Or encourage them to volunteer. Anything to avoid killing the human spirit by having somebody sit around hoping the factory recall happens -- if it ever does.

Thats excellent advice.. particularly since a factory moved to china or mexico isn't re opening its doors....

[Riverwind]

There is no reason why EI can't be used like a draw to the self employed. Fact is... you start making money, and EI claws back.

Two problems with that logic:

1) Self employed are in a much better position to hide income.

2) Self employed can be much more selective about taking contracts or payments in order to optimize their income stream

It all comes down to incentive. If self-employed people have an incentive to game the system to maximize their EI payouts they will do so. That said, this could be avoided with a system that sets rates based on how often you claim. This would remove the incentive to schedule work in a way to maximize EI payouts.

[sgarrydemocracyparty]

you've missed 3 important elections

Two, actually. Started Jul-04, days after the one election in which I gave the "new" Tories one chance to try to change things.

And, yeah, every election is important.

The guy who threw together this got his declarations in days, and I always figure the woman who threw together this got hers in hours, standing outside an animal shelter somewhere!

I guess because they have esoteric policy statements that can easily rally 250 signups, whereas those of the Democracy Party should only appeal to about 25 million.

[sgarrydemocracyparty]

1) Self employed are in a much better position to hide income.

Well, I've known some cheating employees who keep a slew of "side projects" going as "losses" year after year, and basically reclaim all their tax. Yet this isn't "hidden" at all. It's right there, if the government used some detective work or computer programs to find 'em.

So to your point, and mine, we need more auditors and really severe penalties when we catch the cheats - any cheats. The bad guys in this country, from the tax cheats to the drug dealers to the murderers, just have no fear any more.

this could be avoided with a system that sets rates based on how often you claim. This would remove the incentive to schedule work in a way to maximize EI payouts.

At the very least, if you have to keep claiming it means you're in the wrong business.

I mean, just how many "shoe stores" does a mall need? Mine has about a dozen, not counting the box stores at the mall.

PS. Love the signature! It's what I always say, Canadians can be quite immoderate on the Left on some issues, and quite immoderate on the Right on others. Let's let them decide.

[Topaz]

I don't know the rational behind the two week waiting period but it is not unreasonable.

A better reform would make benefits dependent on your number of claims. i.e. work 30 years with no claims then you get higher benefits for longer. Make a claim every year and your benefits go down.

They had two weeks of vacation pay so wait is still only 4 weeks.

It is unlikely that EI will save someone from losing their home if they have no rainy day savings. It is unreasonable to expect EI to shield people from all consequences of job losses. It is better than nothing.

The two week waiting period is AFTER you receive your last pay cheque or vacation pay. EI is better than nothing but its nothing they are getting for 6 weeks. Two week waiting period, then four weeks before your first payment.

[Malaclypse the Younger]

You can thank the Liberals and Conservatives for reducing how much you receive on EI. You personally receive less then people laid off 13 years ago.

I think that what I get is quite fair, actually. I was only maing $10/hr anyway. Six years ago, when I had been making $17/hr shuffling paper for the government, I got what I considered a reasonable amount as well, but I doubt I'd be able to collect as much as that now if I had been making the same wage.

Its painful to watch as failed business owners with no income, have to resort to liquidation and welfare, before jumping back up with another enterprise effort.

Well, maybe some. I consider my dad a failed business owner with no income, but that's just because he's lazy and has extremely poor business sense.

In the meantime, while you are scraping by on EI, I can assure you that one of the handful of changes that I lobbied for came forward this year. Including the ability to keep a larger percentage of weekly earnings if you find work while on EI.

I don't consider being able to make $89 a week as a "larger percentage", really. But I guess it's fair when I'm already collecting $222 a week.

[Malaclypse the Younger]

Absolutely. Or encourage them to volunteer. Anything to avoid killing the human spirit by having somebody sit around hoping the factory recall happens -- if it ever does.

I knew, the day I was laid off, that I shouldn't count on anything like that. I was working in the department where they put their most expendable employees. Anyone that can operate a drill press or an orbital sander could do my job. But that's okay, I don't want to work there again.

[Jerry J. Fortin]

Look folks, we have become a nation of citizens claiming entitlements. E.i. or welfare it makes no difference. Health care or schools, name a program and we claim entitlement to it. The nation cannot sustain this kind of society without incurring debt, and at some point that debt servicing will force the abandonment of programs and services.

If we keep taking the short sighted approaches to problem resolution we are doomed to failure and the collapse of the society we have built out of our desires will be the result. It isn't politics that drive the solutions it is economics. Its simple arithmetic, no root cause analysis is required to solve the problem, just revenue streams. The nation needs more money to do what we are demanding it should do. Taxation is the paradigm we face. That is our sole source of revenue streams. It is time to come to the realization that taxes are regressive and actually detract from the economic viability of a nation. Capitalism is the key because it creates wealth, yet this does not provide a solution for the nation. The nation needs to create wealth and generate sufficient revenue streams to provide the funding that is needed to allow the programs and services that we have sought and implemented to function in the manner that we have already decided.

So we can either abandon the concept of entitlements or institute by design a system of wealth creation sufficient for the needs of the nation.

[sgarrydemocracyparty]

(snip)

So we can either abandon the concept of entitlements or institute by design a system of wealth creation sufficient for the needs of the nation.

I agree. Or at least we have to stop looking at entrepreneurs and wealth as an opportunity to "revenue gain" to increase said entitlements. Such a penalty-based approach is one reason the Brazilians, Mexicans, Indians, Chinese, etc. (not to mention the Yanks, once they recover) are going to wipe us out, competitive-wise.

Taxes. It's how we can afford such things as our generous programs. But they have to be affordable.

Since I'm not a card-carrying Liberal, everybody assumes I'm a Tory, if a disgruntled one. So when they hear that I'm "not" for tax cuts, they just about fall over.

We have a half trillion dollar debt and people talk tax cuts? Okay, targetted reductions to maximize productivity or genuine employment gain, and a break for those at the bottom end of the scale, but across-the-board tax cuts with that kind of debt?

Before we do that there's gotta be 10-20 percent waste we can cut, first, and then ask Canadians what they'd like to do with the savings. I'm of the thinking of 1/3 tax cuts, 1/3 deficit/debt, 1/3 to social programs "where absoutely necessary".

Canadians, not politicians with an eye to the next election, should make the final decision of what to do with such a "surplus". It's our taxes, our fate, our decision.

But before we can even get to that point, those in power have to seriously try to cut waste. No government's had the guts to try. Maybe Harris' Ontario government, first term. Maybe.

Instead, it's always "increase taxes" or suffer the consequences of lost programs, or "cut taxes" or suffer the consequences of lost programs. Governing by fear. It's never about putting those "entitlements" programs (ie. of the "grant" variety, not the EI, Pension, Health Care variety) under the microscope.

Remember the old "Waste Report" by John Williamson? I have many of them, if somebody wants a look. Most of it is still probably going on. You remember, somebody loses a boot at work at the RCMP and gets $3,500 type of stuff.

Or check my Adopt-a-Grant Program for an amusing take on the "grants" industry in Canada.

[Alta4ever]

The two week waiting period is AFTER you receive your last pay cheque or vacation pay. EI is better than nothing but its nothing they are getting for 6 weeks. Two week waiting period, then four weeks before your first payment.

What ever happened to having 3 months savings in the bank to get you through a rough patch? And don't tell me you can afford to save it, everyone called it call making a sacrifice for a short amount of time, everyone is capable of it, and it would get you past the 6 week wait.

[Jerry J. Fortin]

I agree. Or at least we have to stop looking at entrepreneurs and wealth as an opportunity to "revenue gain" to increase said entitlements. Such a penalty-based approach is one reason the Brazilians, Mexicans, Indians, Chinese, etc. (not to mention the Yanks, once they recover) are going to wipe us out, competitive-wise.

Taxes. It's how we can afford such things as our generous programs. But they have to be affordable.

Since I'm not a card-carrying Liberal, everybody assumes I'm a Tory, if a disgruntled one. So when they hear that I'm "not" for tax cuts, they just about fall over.

We have a half trillion dollar debt and people talk tax cuts? Okay, targetted reductions to maximize productivity or genuine employment gain, and a break for those at the bottom end of the scale, but across-the-board tax cuts with that kind of debt?

Before we do that there's gotta be 10-20 percent waste we can cut, first, and then ask Canadians what they'd like to do with the savings. I'm of the thinking of 1/3 tax cuts, 1/3 deficit/debt, 1/3 to social programs "where absoutely necessary".

Canadians, not politicians with an eye to the next election, should make the final decision of what to do with such a "surplus". It's our taxes, our fate, our decision.

But before we can even get to that point, those in power have to seriously try to cut waste. No government's had the guts to try. Maybe Harris' Ontario government, first term. Maybe.

Instead, it's always "increase taxes" or suffer the consequences of lost programs, or "cut taxes" or suffer the consequences of lost programs. Governing by fear. It's never about putting those "entitlements" programs (ie. of the "grant" variety, not the EI, Pension, Health Care variety) under the microscope.

Remember the old "Waste Report" by John Williamson? I have many of them, if somebody wants a look. Most of it is still probably going on. You remember, somebody loses a boot at work at the RCMP and gets $3,500 type of stuff.

Or check my Adopt-a-Grant Program for an amusing take on the "grants" industry in Canada.

One little problem with this approach. That is the idea of a surplus while being buried in debt. I will suggest that the debt is the real issue, resloving that will provide lots of additional funding without any increases in tax levies at all.

Of course I am against income taxes period, but that is another story altogether.

[Malaclypse the Younger]

Look folks, we have become a nation of citizens claiming entitlements. E.i. or welfare it makes no difference. Health care or schools, name a program and we claim entitlement to it. The nation cannot sustain this kind of society without incurring debt, and at some point that debt servicing will force the abandonment of programs and services.

I pay into EI with my paycheque, I expect to collect if I have to. I'm not paying for insurance that does nothing. I do not think that I have a misplaced sense of entitlement to expect to get what I pay for.

If we keep taking the short sighted approaches to problem resolution we are doomed to failure and the collapse of the society we have built out of our desires will be the result. It isn't politics that drive the solutions it is economics.

Actually, it's both. Without regulation, the economy ends up where it is now.

It is time to come to the realization that taxes are regressive and actually detract from the economic viability of a nation.

So, public education and subsidisation of post-secondary education holds no value? We don't need roads, hospitals, police, public health care, firefighters or ambulances to keep everything in motion? These are all things we pay taxes for. Without them, many of us would have a much more difficult time living our lives.

So we can either abandon the concept of entitlements or institute by design a system of wealth creation sufficient for the needs of the nation.

What is wealth without value?