MP Kamp Promotes Work Sharing Program

February 11, 2009

The Work-Sharing program is Helping More Workers Stay on the Job

OTTAWA – Local MP Randy Kamp (Pitt Meadows—Maple Ridge—Mission) announced today that the Conservative government will help to protect employees that might otherwise be laid-off during a temporary slowdown by expanding the Work-Sharing program.

As part of Canada’s Economic Action Plan, the Government will extend, over the next two years, work-sharing agreements by 14 weeks, to a maximum of 52 weeks, to help businesses recover from the global economic downturn. It is expected that this extension will cost $200 million over the next two years.

“The problems facing businesses in our community didn’t start here in Canada,” said Kamp. “We remain hopeful that the impact that the global economic downturn is having on our businesses will be temporary and we want to try and help prevent layoffs wherever possible. The Work-Sharing program will help businesses minimize the number of layoffs they have to make during a slowdown.”

Based on joint application by the employer and employees, the Work-Sharing program allows qualifying workers to receive Employment Insurance benefits in exchange for a reduced work-week while their employer recovers.

The Working Sharing program helps:

• Workers avoid the hardship of a temporary lay-off
• Businesses retain valuable employees
• Maintain company morale
• Avoid unnecessary re-training costs.

“By minimizing layoffs and working with both businesses and employees, we are ensuring that more individuals will be able to keep their jobs and more businesses will stay afloat,” said Kamp. “Forestry and manufacturing companies make use of work-sharing agreements to keep people employed during a production slowdown. Extending these agreements to a maximum of 52 weeks will protect more jobs in many critical industries.”

Employers who are interested in the Work-Sharing Program should contact their local Service Canada Centre or call 1 800 O-Canada to apply. More information about the program can also be found online at www.servicecanada.gc.ca.

 

Work Sharing Backgrounder

Employment Insurance (EI) Work-Sharing is designed to help companies facing a temporary downturn in business avoid layoffs by offering EI Part I income support to workers willing to work a reduced work week while the company undergoes recovery.  Under Work-Sharing employers can retain employees and avoid expensive re-hiring and re-training costs.  Employees are able to continue working and keep their skills up to date.  

Under current Canada Employment Insurance Commission policy, the need to reduce the normal level of business activity must be beyond the control of the employer and the employer must provide a Recovery Plan that describes the activities to be undertaken to return to normal production at the end of the Work-Sharing Agreement, which is normally a maximum of 26 weeks but can be extended by up to an additional 12 weeks to a maximum 38 weeks under exceptional circumstances.  Workers laid off at the end of their participation in Work-Sharing may receive their full entitlement to regular EI benefits based on their rate of pay prior to participating in Work-Sharing.

The objective of the temporary policy change announced in Canada’s Economic Action Plan is to increase access to Work-Sharing during this difficult economic period.  Also, extending the maximum duration criteria of Work-Sharing Agreements by an additional 14 weeks to a total maximum duration of 52 weeks will allow a longer period for companies to recover. 

The proposed changes to Work-Sharing must be approved by the EI Commission before taking effect.