Canadian Labour Congress

Canadian Labour Congress

September 30, 2010 15:23 ET

CLC Comments on Federal Government's EI Premium Announcement

OTTAWA, ONTARIO--(Marketwire - Sept. 30, 2010) - Ken Georgetti, president of the Canadian Labour Congress, says he is "relieved that the federal government will use its general revenues to absorb additional costs in the Employment Insurance program, which have resulted from the extraordinary circumstances of the recession."

Georgetti was commenting on an announcement by Finance Minister Jim Flaherty that the government will limit the 2011 increase in EI premiums to five cents per $100 of insurable earnings. The arms-length Canada Employment Insurance Financing Board had recommended an increase of 15 cents per $100 of insurable earnings.

"The EI fund is in deficit because of our continuing high levels of unemployment," Georgetti says. "Our key message is that EI benefits must be extended. We have 1.5 million Canadians out of work but fewer than half of them are receiving EI. We have to help these workers and their families while they look for work."

Minister Flaherty also announced the government will hold consultations into how the EI rate-setting mechanism can be improved in the future. Georgetti says the labour movement will be an active participant in any consultations.

The Canadian Labour Congress, the national voice of the labour movement, represents 3.2 million Canadian workers. The CLC brings together Canada's national and international unions along with the provincial and territorial federations of labour and 130 district labour councils. Web site: www.canadianlabour.ca

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