MOTION

At the Council meeting of June 20, 2000, Councillor Louis submitted the following Notice of Motion which was recognzied by Council:

Employment Insurance File: 111
MOVED by Cllr. Louis,
SECONDED by Cllr. Bass,

WHEREAS, the 2000 Federal Budget did little to right the draconian measures in the new Employment Insurance (EI) Act;

AND WHEREAS, the current Act has lead to:
1. Less than 36 percent of claimants qualifying for benefits;
2. A reduction in benefits for those who do not qualify;
3. The institution of severe penalties for incorrectly filing complicated claim forms;
4. The Federal Government withdrawing its one third share of funding the Fund;

AND WHEREAS, these changes have resulted in an accumulation of a $27 billion surplus over the past four years;

AND WHEREAS, the said surplus is now being used to finance other government initiatives;

AND WHEREAS, according to Stats-Canada the estimated loss in benefits since 1989 for Vancouver amounts to $112.6 million;

AND WHEREAS, Employment Insurance is financed by employee/employer premiums for the explicit purpose of providing wage replacement "insurance" for unemployed Canadians;

THEREFORE, BE IT RESOLVED THAT Vancouver City Council demands that the Federal Government:
1. Implement changes to the EI Act that would allow for at least 70 percent of unemployed Canadians to be eligible for benefits;
2. That the minimum benefits paid be no less than 60 percent of earnings, with no clawbacks or penalties for repeated layoffs;
3. That the Federal Government institute an "arms length" commission to administer the EI Fund;
4. That the Fund be used for the explicit purpose of supporting unemployed workers.

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CITY OF VANCOUVER
CITY CLERK'S OFFICE

M E M O R A N D U M

DATE: June 28, 2000 FILE: 111

TO: Mayor and Council

FROM: Tarja Tuominen, Meeting Coordinator

SUBJECT: Employment Insurance

For Council's information, at its meeting on October 5, 1999, Council approved the following motion relating to Employment Insurance:

MOVED by Cllr. Puil,
SECONDED by Cllr. Bellamy,

WHEREAS according to the Chief Actuary's report on Employment Insurance rates for 1999 the current surplus in the EI account is $10 billion larger than is necessary;

AND WHEREAS this surplus will continue to grow at approximately $7 billion per year;

AND WHEREAS the current rate of Employment Insurance deductions on municipal payrolls are "excessive" and represent an unfair burden on municipal resources and employees;

THEREFORE be it resolved that the Federal Government be asked to reduce employer and employee contributions to the EI account, and that the excess surplus be given back to the municipalities, companies and their workers who have created this extraordinary surplus,

AND FURTHER THAT the Federal Government, B.C. Senators and M.P.'s and Lower Mainland Municipalities be advised of Council's action.

- CARRIED

(Councillor Herbert opposed)

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(c) 1998 City of Vancouver