The federal government has put together a $6.5-billion aid package and is making temporary changes to the employment insurance program to support Canadian businesses and workers through the trade war with the U.S.
The government is building new flexibility into the employment insurance program to help businesses retain workers by reducing work hours.
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“Employees can reduce their hours, spread the work across the same number of employees while compensating those employees through EI for lost time or lost wages,” Employment Minister Steven MacKinnon told a news conference in Ottawa on Friday.
Ottawa’s new trade impact program earmarks $5 billion over the next two years to help businesses cope with decreased U.S. sales and reach new global markets. It’s also making $500 million available for business loans of between $200,000 and $2 million at preferred interest rates, and another $1 billion for loans specifically for the agricultural sector.
Earlier in the day, NDP Leader Jagmeet Singh called on the federal government to expand the EI program to cover all workers, including contractors, and to lengthen the amount of time people can claim benefits. Asked about Singh’s recommendations, MacKinnon said Ottawa has “every intention” of customizing its trade war response, depending on what the U.S. does next.
“Should this prove to be an enduring situation, you can absolutely expect that we would come with further measures to protect our workers,” he told reporters.
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