Employment Insurance - A Double Win for the Chamber

The following is an excerpt of a letter from the Canadian Chamber of Commerce to its members regarding EI. To view the full letter click here.

Dear member,

As the biggest and most important businesses constituency in the country, the Canadian Chamber of Commerce and its network across the country issued a resounding call to action in the wake of proposed changes to the Employment Insurance (EI) program, and plans to increase EI premiums by the maximum allowed under federal legislation. Our voice was heard loudly.

Last night, members of Parliament defeated Bill C-308 — a bill that would have added over $2 billion to the costs of the EI Program, increased work disincentives, hindered labour force mobility and constrained job creation.

Today, the government announced it will be scaling back planned increases in EI premiums. For 2011, EI premiums will rise 5 cents per $100 in insurable earning for employees and 7 cents for employers instead of the maximum 15 cents and 21 cents, respectively. For 2012, premiums will be increased by 10 cents per $100 in insurable earnings for employees and 14 cents for employers instead of the maximum amount.

“As a result of this decision, Canada’s businesses will save over $640 million in 2011 and $320 million in 2012. A business with 100 employees will save as much as $6,100 next year and $3,100 in 2012. This is the right thing to do at the right time,” said Perrin Beatty, President and CEO of the Canadian Chamber of Commerce. “The Canadian economy went into reverse in July, the first monthly decline in 11 months. Additionally, the breadth of negative indicators indicates ebbing economic momentum going forward. The jobless rate will be hard pressed to break below 8 percent on a sustained basis for some time,” concluded Beatty.... (continue)