Food Banks Canada is raising concerns that Canada's employment insurance (EI) system is not adequately serving the modern workforce. In its latest poverty report card, the organization points out that the labour market has shifted significantly towards part-time, temporary, and contract work, while EI continues to cater primarily to a shrinking segment of workers holding stable, full-time positions.
The organization's chief executive, Kirstin Beardsley, argues that the outdated EI system poses a significant threat to Canada's resiliency, particularly as unemployment remains high and households grapple with the increasing cost of living. The core issue lies in EI eligibility requirements, which demand a specific number of insurable hours within a fixed timeframe. Irregular hours, multiple jobs, and the prevalence of contract work make it increasingly difficult for many workers to qualify for EI, even those with consistent employment, leading to income instability.
Richard Matern, the director of research at Food Banks Canada, emphasized that the EI system was designed for a time when full-time employment was the norm. He stated that the organization is seeing more people with part-time, casual, or precarious jobs struggling to make ends meet, and they are not covered by the current system. Matern suggests raising EI rates across the board, increasing the coverage from the current 55% of previous income. Food Banks Canada is advocating for a higher benefit floor of $450 per week and extended benefits for individuals unable to find new employment when their EI expires.
The organization gave Canada a D+ grade in its poverty report. While acknowledging that some legislative suggestions like the Canada Groceries and Essentials Benefit (CGEB) are coming into effect, they maintain that comprehensive EI reform is crucial to supporting vulnerable workers across the country.
