The federal government is adding extra weeks of income support for employees who are feeling ill or have to isolate, unemployed workers and parents at home with children due to the pandemic.
The government plans to add 12 weeks of eligibility to the $500-per-week Canada Recovery Benefit and the Canada Recovery Caregiving Benefit, raising the maximum number of weeks available to 38 from 26. The federal sickness benefit will be expanded to four weeks from two so workers can stay home if they’re feeling ill or have to isolate because of the coronavirus pandemic. As well, employment insurance eligibility will be stretched to allow people to receive up to 50 weeks of benefits, rather than 26, for claims filed since late September.
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Hassan Yussuff, president of the Canadian Labour Congress, said the extra weeks should be a major relief for those who worried about losing support at the end of next month. But he suggested the extension may not be enough to bridge to better times. “The one thing that nobody has been able to predict is when are we going to get to the other side,” says Yussuff. “As the government prepares for the budget, they may yet have to make a further announcement to figure out how we’re going to support people until the job numbers are starting to return to the level they were prior to the pandemic.”
Labour groups have asked the government to extend benefits until the end of the year, which is how long they believe it might take before the workers in hardest-hit industries get back on the job.
Canada’s labour market reversed months of gains in December and January, as lockdowns sent employment rates back to where they were in August, leaving the country short 858,300 jobs of pre-pandemic levels. The government had planned to review eligibility for the recovery benefits at the start of January and the jobs numbers helped inform the decision to add more weeks, says employment minister Carla Qualtrough.
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The extra weeks for the recovery benefits will provide income support to June for those who have needed it since their inception, roughly the same time that business support like the wage subsidy is also set to expire. Federal officials will see what needs to come next for workers and businesses depending on how things look, Qualtrough says. “We just are constantly figuring out the balance between all these programs, to minimize any kind of negative impact but also to maximize labour-force attachment and preparations that are underway to kick things into gear when the country is vaccinated.”
The government’s most recent figures show it has provided over $11.6 billion through the three recovery benefits launched in the fall to replace the Canada Emergency Recovery Benefit. A further $13.5 billion has been spent on regular EI benefits, with about two million people currently receiving the income support. That doesn’t include special benefits like parental leave. The government also estimates the cost to extend the benefits at $6.7 billion, and a further $5.4 billion for EI.
Extending the recovery benefits can happen through regulation, which is simpler than the law that needs to be passed to extend EI eligibility. And once changes are made, provincial governments would have to update employee protection rules to accommodate the extra weeks of sickness and caregiving leave.
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Conservative workforce critic Raquel Dancho said in a statement her party supported getting help to unemployed workers and put the onus on the government to craft a plan to create jobs across every sector of the economy. “The Liberals need to present a budget, their first in two years, that will get Canadians back to work and bring our economy back to life,” the statement noted.
NDP employment critic Daniel Blaikie welcomed the additional weeks but noted it doesn’t solve concerns that the sick leave can’t be taken one or two days at a time. “It’s a good start, but there is a lot that is still not working well with these programs,” he says. “It’s going to take more than an announcement of simply extending benefits in order to get to the heart of some of these things.”