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Introduced by the federal government to help integrate WWI soldiers back into Canadian life during an economic recession. It was a federal-provinical cost-sharing program, in which the federal government subsidized provinical employment offices.
The department of Employment Services was mandated to provide employment data and advice, and was a first step in Canada's view of unemployment as a national issue. -
The Borden government appointed the Mathers Commission in 1919. It recommended the introduction of a broad range of labour reforms, such as implementation of national social insurance for workers who lost jobs through no fault of their own.
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The Conservative government of R.B. Bennett was elected during the Great Depression, partially due to a promise of federal action against unemployment.
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R.B. Bennett government passed this Act, after they were unable to use traditional economic remedies to provide work and sustenance for unemployed men. The Act promised a minimum wage, federal regulation of working hours, unemployment insurance, health and accident insurance, and an old-age pension scheme.
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King's Liberal government questioned unemployment insurance on constitutional grounds, believing it fell under provinicial jurisdiction and not federal.
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The Supreme Court of Canada invalidated a majority of the Act, and the Privy Council in London, which at the time was Canada's highest court, also upheld the decision. Provincial jurisdiction over unemployment insurance was affirmed.
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The British Parliament passed an amendment that recognized unemployment insurance as under federal powers. At this time, there was a shift in views about unemployment insurance, and it was increasingly viewed as a social and involuntary issue that required state action.
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Passed by the federal government, it instituted a new national public system of unemployment insurance. Financed by contributions from employees, employers, and the Government of Canada. Contributions were paid into and benefits taken out of an Unemployment Insurance Fund.
It applied to most private and public sector employment, but did exclude sectors such as agriculture, forestry, fishing, logging, hospital care and education. Only 42 per cent of the labour force ended up being covered. -
It receives a major overhaul. Key reforms included integration of seasonal workers, and reduced the maximum benefits period from one year to 36 weeks, and the minimum benefit period to 15 weeks from 6 weeks. Coverage was extended to include about 75 per cent of the Canadian labour force.
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In 1957 -1962, Canada faced a recession and unemployment rates reached 7 per cent. The Unemployment Insurance Fund was reduced to a small reserve and relied on government advances. There was also a belief that unemployment benefits should move away from simple cash payments to providing some kind of retraining and placement.
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The government released a paper proposing to make EI more generous. Notion of re-orienting the program to make sure that mainstream economic society was open to all individuals.
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Major changes that provided nearly universal coverage for paid employees, eased eligibility, and special benefits such as sickness, maternity, and retirement. The only exclusions at this time were the self-employed, persons aged 70 years or older, and persons who did not meet the minimum weekly earnings requirement. Private sector contributions were to pay for administrative costs of the program, special benefits, and regular benefits up to a national unemployment rate of four per cent.
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Prior to 1993, benefit payouts exceeded premium revenues in most cases. The EI fund was in the red almost every year. The system changed in 1993, when the books were nearly balanced, due to increased revenues and reduced expenditures.
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The 1996 Act changed the name to Employment Insurance (EI) from Unemployment Insurance (UI). It distinguished between employment benefits (maternity, parental, sickness, compassionate, and training) and those linked to unemployment benefits.
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A record of 778,000 Canadians received EI benefits in May. The economic crisis meant issues relating to EI dominated the political agenda.
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- New job alerts system
- Changes to definition of "suitable employment" and "reasonable job search"
- EI claimaints placed into three categories: long-tenured workers, frequent claimants occasional claimants
