The unemployment rate jumped to 6.1% in March, a cumulative increase of a full percentage point over the past year. Meanwhile, GDP numbers released this week came in well under expectations.

“High interest rates just slam the brakes on the economy. Starting to cut rates in June isn’t like suddenly hitting the gas. It just means easing off the brakes just a little bit to provide some relief to families struggling to pay their rent or mortgages,” declared Bea Bruske, President of the Canadian Labour Congress. “How many more workers have to lose their jobs or default on their mortgages before the Bank of Canada does the right thing and cuts interest rates?”

Bruske added that some are getting hit harder by this economic slowdown. According to Statistics Canada, racialized Canadians are seeing higher job losses. The unemployment rate for Black Canadians rose 3.9 points over the past year to 10.8%. Meanwhile younger 15- to 24-year-old workers saw the steepest losses with 28,000 net jobs lost just in March while the youth unemployment rate rose to 12.6%.

“The longer the Bank of Canada delays cutting interest rates, those with the least will suffer the most,” warned Bruske. “The Bank of Canada must not sacrifice those who have the least power on the altar of high interest rates. It’s past time the Bank of Canada cuts interest rates and starts loosening the reins so Canada’s job market and economy can start to grow again.”

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“High decibel levels from the right-wing business community demanding cuts simply fail to recognize that when we invest in housing, child care and sustainable jobs we are investing in our future and our kids’ future,” declared Bruske. “When we create child care spaces, more parents can enter the workforce. When we invest in the energy transition, we create the good, sustainable, union jobs of the future. These are the kinds of smart, pragmatic decisions that will build the future communities we want to live in.”

“October saw the largest one month increase in rent prices in over 40 years. That’s the biggest jump in over four decades. Working people welcomed progress on housing affordability, but more is needed to help people struggling to afford rising prices.”

Workers are looking to the government to act as families fall further behind.

“The government is predicting a big jump in unemployment and slower economic growth. This will mean 150,000 more workers losing their job. It is concerning as our economy is teetering on the precipice of a recession,” explained Bruske. “Instead of even more cuts to our public service, workers wanted to see the government take action to make wildly profitable oil and grocery corporations pay what they owe and fix Employment Insurance, so critical support is there for workers when they need it most.”

Bruske added that Canada faces stark fiscal policy decisions in the months and years ahead that will shape Canada’s future.

“We need to be on a financially sustainable path. But this doesn’t mean cuts to critical help and services families rely on, as Pierre Poilievre and the Conservatives keep pushing,” warned Bruske. “Amplifying anger may help serve his ambition, but it’s not doing anything to actually help people. Mr. Poilievre will never ask profitable oil companies and grocery chains to pay what they owe – the government should.”

The Canadian Labour Congress is the largest labour organization in Canada, bringing together dozens of national and international unions, provincial and territorial federations of labour and community-based labour councils to represent more than 3 million workers across the country.

-30-

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613-526-7426

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“Canada’s unions are looking to MPs from all parties to come together behind swift action to make sure help is there for people facing high prices, stretched budgets and a weakening economy,” urged Bruske. “Parliament must also act urgently on the dual challenges of addressing climate change while creating sustainable jobs.”

Bruske said Canada’s unions expect MPs to make it a top priority to strengthen the Sustainable Jobs Act, C-50, and get the bill passed before the winter break.

“The Americans’ Inflation Reduction Act has challenged the world to act, and many countries are responding. The Sustainable Jobs Act provides a roadmap for Canada’s governments, businesses, and unions to work together and make sure our workers aren’t left behind in the global transition to a low-carbon economy,” warned Bruske. “Climate change is real and getting worse. MPs must make it job one this fall to take smart action that creates the kind of good, sustainable, union jobs that are the cornerstone to building thriving communities.”

Bruske said that Parliament must also act to make things a bit easier for those struggling the most through urgent action to create more affordable homes, make sure EI is there for people when they need it, and pass a new pharmacare act so Canada can implement public, universal pharmacare.

“Building affordable homes and implementing publicly funded and publicly delivered pharmacare are tangible ways we can make sure no one is left with the impossible choice of choosing whether to pay for rent, groceries, or their kid’s medicine. MPs must deliver on pharmacare this fall,” declared Bruske. “3 in 5 unemployed people don’t even qualify for benefits. With unemployment rising and more people being thrown out of work, it’s critical we finally reform EI so help is there for workers when they need it.”

Bruske added that it is also critical the government introduces, and MPs pass, anti-scab legislation this fall.

“We have seen years of record corporate profits while workers’ pay lagged far behind. Workers are rightly demanding more balanced workplaces,” said Bruske. “If we ban the use of scabs once and for all, we can take a real step towards greater labour peace, avoiding work stoppages and building a more balanced economy.” 

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Bank risks substantially weakening our economy, potentially throwing hundreds of thousands of Canadians out of work

Facing a one-two punch of sky-high prices on daily essentials combined with rising credit card, mortgage and other bills, the last thing Canadians need right now is a recession, which could mean massive job losses and economic upheaval. But that’s exactly what could happen if the Bank of Canada raises interest rates Wednesday for the seventh time in the past nine months.

The Bank of Canada, led by governor Tiff Macklem, has already raised interest rates faster than almost any other country. These hikes have left millions of Canadians facing eye-popping rises in credit payments. Combined, Canadians now owe $2.29 trillion in credit, according to TransUnion LLC’s Q3 2022 Credit Industry Insights Report. Rate hikes have even pushed the Bank of Canada itself into the red for the first time in history, with a loss of $522 million in the third quarter.

Central banks raise interest rates to cool the economy and slow inflation, but Macklem has been doing more than just tightening monetary policy. He has also been waging an ongoing public relations campaign against phantom wage growth, arguing that wages are fuelling inflation. There is zero evidence that wages are fuelling inflation. Statistics Canada’s labour force survey, released Friday, shows wage increases are lagging inflation, not driving it.

In a recent report from the Canadian Labour Congress and the Centre for Future Work called A Cure Worse than the Disease? Toward a More Balanced Understanding of Inflation and What to Do About It, economist Jim Stanford lays out evidence showing how wages are not the cause of inflation. Stanford points out that corporate Canada’s pricing power has been fuelling higher prices, resulting in corporate accounts being padded with sky-high, record profits. In 2022, corporate profits in Canada reached the largest share of gross domestic product (GDP) in Canadian history, or put another way, corporate profits grew three times faster than wages since 2019.

Despite all this, Macklem has stubbornly declared that the Bank of Canada will continue raising interest rates, even if it pushes our economy into a harmful recession. With the myopic policy focus on achieving the target inflation rate of two percent, the bank risks substantially weakening our economy and potentially throwing hundreds of thousands of Canadians out of work.

If the Bank of Canada is determined to manufacture an economic recession, we know the pain will not be shared equally. Just last week, the International Labour Organization (ILO) warned that global poverty and income inequality are on the rise worldwide while people’s purchasing power is falling behind. The ILO’s Global Wage Report recently warned that for the first time in history, real wages fell into negative territory in 2022, down 0.9 per cent, with low-income workers and households feeling the pinch most of all.

The ILO cautions that this not only puts the pandemic recovery at risk, but it could also fuel growing social unrest. As the inquiry into the Ottawa convoy occupation wraps up, and the U.S. hearings examining the Jan. 6, 2021 insurrection draw to a close, the prospect of a manufactured economic crisis driving growing social unrest is not one we should take lightly. Pouring more cold water on our economy now — and driving it into a damaging, monetary policy-induced recession — will only make things worse.

As Macklem announces the Bank of Canada’s interest rate decision this Wednesday, he should consider the well-being of the workers and families already paying the biggest price from the cost-of-living crisis. This should start with Macklem pushing pause on more interest rate hikes. Let’s take time to evaluate the impact of previous hikes before raising them any further.

Bea Bruske is president of the Canadian Labour Congress.

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Statistics Canada released its latest Labour Force Survey today. It shows that more than 1.5 million unemployed and under-employed workers continue to struggle to find work, and thousands more have dropped out of the labour force altogether.

While February and March numbers showed strong job gains, the cresting of the Third Wave in April and subsequent lockdowns mean many of those gains could be lost.

“Following February’s achievements, a second month of strong job growth is welcome, but the federal government must stay the course and ensure a strong and broad-based recovery,” said Hassan Yussuff, President of the Canadian Labour Congress (CLC). “We need to see strong fiscal support to bring people back into the job market, especially women and workers of colour, and into decent green and care-economy jobs.”

Last fall’s Speech from the Throne promised the largest investment in Canadian history in training. That investment is what Canada’s unions will be looking for in the federal budget on April 19.

Ambitious investments in training and education are much-needed over the short- and medium term to help workers affected by ongoing technological change. Unions want to see expanded investment in upskilling opportunities and targeted support for the 30% of jobless Canadians who count among the long-term unemployed.

“Now is the time for a rapid return to full employment and investing in improving job quality to help workers fully get back on their feet,” said Yussuff.

To arrange an interview, please contact:
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The numbers of workers who are currently facing the prospect of an end to their benefits this March are staggering:

• 844,000 workers were receiving the Canada Recovery Benefit in late January 2021;
• 129,000 workers were receiving the Canada Recovery Caregiving Benefit in late January 2021;
• Over 2.3 million people are receiving Employment Insurance benefits in February 2021.

“These workers need to know what happens next as they continue to face economic hardship and uncertainty,” said Hassan Yussuff, President of the Canadian Labour Congress. “This pandemic is not ending anytime soon. We need the federal government to plan for the long-term and provide support for workers whose jobs have disappeared.”

Canada’s economy saw higher than expected job losses at the end of 2020 and another large drop in employment in January, with 213,000 jobs lost. Women and low-wage, racialized workers in precarious employment have been hit the hardest.

“It will be some time before Canada returns to full employment. The federal government must act now to ensure workers aren’t left struggling to put food on the table and cover their essential needs,” said Yussuff.

The federal government has already promised much-needed changes to Canada’s EI system. Read CLC’s recommendations for EI reform here.

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Before the pandemic, ever-increasing globalization meant many workers were employed in precarious, low-wage work with few, if any, benefits. Now millions of people across Canada and around the world have seen their jobs disappear. We need a worldwide recovery focused on secure employment and social protection.

This context serves as the backdrop for the annual commemoration of the World Day for Decent Work today, October 7.

“It’s clear that we need a recovery that is focused on shared prosperity and sustainability,” said Hassan Yussuff, President of the Canadian Labour Congress. “Better jobs are at the core of a robust recovery and that is true both nationally and internationally.”

The International Trade Union Confederation (ITUC) is calling for a new social contract to ensure a strong global economic recovery. Canada’s unions have similarly launched Forward Together: A Canadian Plan, a campaign calling for a similar focus on better jobs and reducing inequality.

“With millions of jobs lost across Canada, and hundreds of millions globally, we have to turn our focus to job creation. That includes focusing on secure employment, living wages, the universal right to collective bargaining and occupational health and safety,” said Yussuff. “The current economic model has failed working people. It’s time for us to rise to the challenge we’ve been presented with and to move forward, together.”

The CLC is marking the World Day for Decent Work with a webinar that aims to explore the issues at stake. It will be held on Wednesday, October 7 at 2 PM EDT. To register, click here.

Read ITUC’s statement on A New Social Contract for Recovery and Resilience here.

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“This is very good news for the millions of Canadians who still don’t have a job they can go back to and were growing concerned about paying their bills,” said Canadian Labour Congress President Hassan Yussuff. “The extension will allow families to continue paying their rent or mortgage and buying groceries.”

The CERB was originally scheduled to end within the next few weeks, leaving many Canadians who lost work due to COVID-19 without work or income support. The new extension to the end of August will allow these workers some peace of mind while waiting for the economy to further re-open.

“We look forward to hearing more details about this extension, as we continue with a safe and steady recovery,” said Yussuff. “We will continue checking in with workers across the country who want to be working but can’t yet. We will continue to advocate on their behalf at the federal level to ensure support stays in place as long as necessary.”

Many businesses are closing or evolving because of the COVID-19 crisis, meaning a lot still hangs in the balance in terms of rebuilding the economy and increasing employment levels. Canada’s unions will continue to be a voice for all workers as we survey the new landscape and pave the way forward.

For more information:
CLC Media Relations
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“It is important that we recognize the significant economic contribution of domestic work  – work performed in or for a household or households – as valuable work, and acknowledge the effect that the current pandemic has had on these vulnerable workers,” said Hassan Yussuff, President of the Canadian Labour Congress. “Many have lost work because employers are following public health guidelines on physical distancing or because their employers have lost income and can no longer afford these services.”

The COVID-19 pandemic has meant loss or reduction of income for many domestic workers, leaving them unable to support themselves and their families.

According to UN Women, 83 per cent of domestic workers worldwide are women, and a majority of those are racialized women. Wages are low and working conditions can be challenging – even abusive. The pandemic’s impacts are not gender neutral. There are increased demands on workloads with children at home from school, child care centres closed and more demands on household responsibilities in general.

Internationally, many domestic workers are migrants or part of the informal economy. In Canada, the pandemic has exacerbated the precarity of their situation, making them ineligible for government income supports. Moreover, migrant care workers should be granted fair and accessible pathways to citizenship in Canada.

“The pandemic has laid bare just how essential the labour of domestic workers is – cleaning, cooking, caring for children, the elderly and people with disabilities. All of this work is necessary to sustain our economy,” said Yussuff. “It is time we cared for those who care for us.”

Read more about Domestic Workers and COVID-19: https://idwfed.org/en/covid-19

Resources for Domestic Workers on COVID-19: https://idwfed.org/en/covid-19/the-idwf/educational-awareness/stay-safe-what-do-you-need-to-know-about-covid-19

Recommendations for employers, governments, and others: https://idwfed.org/en/covid-19/advocacy-to-the-target-groups

Read more on the campaign to Ratify C189: https://idwfed.org/en/campaigns/ratify-c189

Caregivers Action Centre: http://www.caregiversactioncentre.org/

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The economic fallout of COVID-19 is stark – and women are feeling the brunt of it.

Over 1.5 million women lost jobs over March and April, according to Statistics Canada. That’s a 17% drop in employment levels since February. Even with workplaces and services beginning to reopen, families will struggle to return to work without adequate child care in place.

Advocates, employers and policymakers alike fear that the burden of care will fall on women.

With Canadian women typically contributing about 40% of household income, there can be no full economic recovery without what economist Armine Yalnizyan has dubbed a “she-covery”.

Child care is key to making that possible.

It’s become clear that child care is a vital part of social infrastructure. Without child care, workers in women-dominated sectors that keep us healthy, safe and fed could not keep operating. This is why we saw several jurisdictions move quickly to make child care available to essential workers as a central component of their response efforts.

But that temporary solution is a far cry from what’s actually needed to address the gaping holes in a severely underfunded and fragmented system. It’s a system in which child care costs far too much for many families, and even when affordable, is highly competitive – sometimes with three or more children to every one licenced space.

As we begin to shape the new normal, child care must be at the heart of the post-COVID economy. Child care encourages participation in the labour market and is also an important source of employment for women – an economic driver in and of itself.

Investments in the care economy will largely pay for themselves as middle class families engage in greater labour-market participation, higher productivity, rising incomes, and increased tax revenue.

The federal government has the opportunity to spearhead a comprehensive pan-Canadian effort to build back better in the child care sector. Such a sector would ensure children have access to safe early learning and care and that parents are able to return to the paid labour force with relatively little worry.

In the short-term, the government will have to work with the provinces and territories to provide immediate funds to stabilize existing child care infrastructure.

The federal government has already committed to establishing a Federal Child Care Secretariat in order to help strengthen Canada’s social infrastructure.

The Secretariat will play a fundamental role in the reconstruction process, which will require long-term commitment and teamwork.

The Secretariat will also need to develop a workforce strategy to raise the quality of early learning in child care, improve working conditions for early childhood educators and oversee the expansion of the system.

Through collaboration, creativity and trust, we can take meaningful steps forward to ensure a robust economic recovery for all.

Hassan Yussuff is the president of the Canadian Labour Congress. Follow him on Twitter @Hassan_Yussuff
Goldy Hyder is the President and Chief Executive Officer of the Canada Business Council

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Persons with disabilities – especially those living at the intersections of multiple marginalized identities – face high unemployment rates and high levels of poverty and need additional support during the COVID-19 crisis and after.

“The current health crisis has intensified the discrimination and stigma workers with disabilities were already facing,” said Larry Rousseau, Executive Vice-President of the Canadian Labour Congress. “Hard-won workplace accommodations are at risk when the office becomes virtual, and workers with disabilities are at a greater risk of being laid off or having their jobs furloughed.”

The Canadian Labour Congress is marking National AccessAbility Week to shine a light on the challenges faced by persons with disabilities, and those whose experiences are amplified by multiple marginalized identities, including being a woman, Indigenous, racialized and 2SLGBTQI, et al.

Canada’s unions have joined with disability rights organizations in the Include Me coalition, calling for a number of priorities to protect the health and safety and provide care and support to persons with disabilities during the COVID-19 pandemic. The federal government has yet to announce specific targeted income supports for persons with disabilities to navigate their unique financial impact of this crisis.

Unemployment rates are between 35 per cent for people with ‘mild’ disabilities and 74 per cent for people with ‘severe’ disabilities. High levels of poverty and unemployment means more reliance on affordable housing, income and health care supports – programs whose funding and availability vary greatly across the country.

“We are working together to ensure that Canada’s response to this crisis leaves no one behind,” said Rousseau. “We need to see targeted income supports for persons with disabilities to address the impacts of the COVID-19 crisis, and, in the longer-term, recovery planning must make accessibility and inclusion a core priority.”

For more information on on-going advocacy efforts from disability related organizations in Canada during the COVID-19 pandemic, check out the Include Me coalition’s COVID-19 resource centre.

National AccessAbility Week was first introduced in 2019 after the implementation of the Accessible Canada Act, learn more about the history of the week here.

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We are in the midst of a global pandemic. The federal government is introducing new programs almost daily to support millions of Canadians who have been affected by this crisis. Public service employees are doing amazing work getting that support to the people who need it.

Meanwhile, the calls for austerity are already coming fast and furious, heralded by right-wing conservatives, including former Prime Minister Stephen Harper. Even as we see our health care workers struggle with staffing and supplies as the result of decades of cuts in health care spending across the country.

The opinion pages are full of columnists explaining why program spending needs to be cut immediately – without any idea when a recovery will begin. Even arguing that the public service employees who have been doing unprecedented work processing millions of claims at unbelievable speeds should be punished for having job security.

Public service employees play a fundamental role in our democracy, informing our elected representatives and allowing them to make decisions based on evidence – which is a good thing, despite what some say. Our public service is full of subject-matter experts who our political representatives rely on to help them craft the best policies and programs. We should be glad when our leaders take their advice, rather than ignore it – as we’re seeing to the south.

Judging the amount of government spending that goes to public service salaries without referring at all to the work those employees actually do day to day to keep the country running is ludicrous. You cannot reference a productivity agenda without acknowledging the producers of the work.

Equally ludicrous is the leader of the opposition repeating the false message that applications to the CERB benefit are rampant with fraud daily. A vocal minority is concerned that a $2,000 per month benefit will create a population that doesn’t want to work, but waste no time and effort examining the conditions we are asking them to work in.

Being on government benefits should never mean being treated like a criminal – but perhaps especially now as we face global uncertainly and a new future ahead. The real criminals are the ones who are hoarding wealth on the backs of workers.  

We are about to crown the world’s first trillionaire. One man could single-handedly solve world hunger. The same man who gave workers a $2 per hour pay raise in these unprecedented times and is now clawing it back even as his own warehouses continue to see outbreaks and workers demand safer conditions. In Canada, we see employers like Loblaws boosting employee wages by 15 per cent – $2 an hour for those working minimum wage. Meanwhile, the company estimates that the pandemic has resulted in a $751 million increase in quarterly profits.

The wages and benefits of public sector employees do not represent a problem, they represent an example of what is possible. Every working Canadian deserves the security of a good job with a living wage, benefits and paid sick leave. Access to paid sick leave would give workers leeway so they wouldn’t have to choose between their job and their health, meaning fewer workers would feel forced to work while sick – key in slowing the spread of illnesses like COVID-19.

Getting to the recovery has been a group effort. Canadians, as a population, moved swiftly to protect each other.

We are a society that lifts everyone up, and now is not the time to start punching down.

When we plan out the recovery, we cannot return to the careless individualism that has led to the growing inequality we’re seeing globally. Collective action is what flattened the curve, and collective action is where progress lies.

The most important thing that we have seen over the past nine weeks is this: Canada has the capacity to move quickly to protect the most vulnerable. The money is there when we need it and when there is political will.

It’s time to leave the right-wing, me-first thinking in the past where it belongs. We can’t afford to work against each other anymore.

Hassan Yussuff is the president of the Canadian Labour Congress. Follow him on Twitter @Hassan_Yussuff

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2SLGBTQI peoples are more vulnerable to discrimination, violence, harassment and stigma on the basis of sexuality and gender identity right now. The lockdown makes it more difficult to find support and to escape a less than accepting situation at home.

“COVID-19 has amplified the inequities in our society, including the discrimination faced by 2SLGBTQI peoples,” said Larry Rousseau, Executive Vice-President of the Canadian Labour Congress. “We may all be practicing social distancing, but that doesn’t mean marginalized communities are less impacted by the reality of homophobic, transphobic and biphobic intolerance and violence.”

As the first waves of lockdown hit communities across Canada, over 100 2SLGBTQI organizations sounded the alarm in a letter addressed to Canada’s federal government.

According to data collected by Egale, 53 per cent of Canada’s 2SLGBTQI households have been impacted by job losses since mid-March, compared to 39 per cent of the general population. Further, 42 per cent of 2SLGBTQI respondents to Egale’s recent survey said they have experienced negative mental health impacts due to the added stress, compared to 30 per cent of the general public.

“We need action from the federal government to support 2SLGBTQI organizations dealing with an increase in demand from community members struggling with a lack of resources due to the pandemic,” continued Rousseau. “We also need federal and provincial governments to mandate collection of disaggregated data across Canada to give health officials and policy makers a greater understanding of the disproportionate impact of this pandemic on marginalized communities, including 2SLGBTQI people.”

Learn more about the specific impacts of COVID-19 on 2SLGBTQI communities in Canada here, and learn more about the history of IDAHOBIT here.

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“The expansion of the CERB to include those continuing to work in low-income, precarious jobs is an important step,” said Hassan Yussuff, President of the Canadian Labour Congress (CLC). “This move will be a relief to many workers who have been struggling and were left out of previous supports. The NDP should be credited with helping to influence this expansion of the emergency benefit.”

The Prime Minister’s announcement of top-up payments for essential workers, including those working in long-term care, is also a necessary move, said Yussuff.

Workers in long-term care often hold multiple part-time positions in different facilities in order to make a decent living. These workers are often without sick leave or benefits of any kind.

“This crisis has made it clear that our society’s essential workers have been grossly undervalued for too long,” said Yussuff. “When we start to re-open the economy, we must work to rectify these structural inequities around compensation and support. We must go to bat for the very workers who are ensuring our society continues to function throughout this pandemic.”

The CERB expansion also includes supports for hundreds of thousands of seasonal workers, Canadians who became unemployed before the COVID crisis and workers who have exhausted their EI claims.

“We will continue to work closely with government and opposition parties to bring attention to the experiences and needs of workers throughout various sectors in order to identity any new or emerging gaps,” said Yussuff.

For more information:
CLC Media Relations
media@clcctc.ca
613-526-7426

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With unanimous consent of all parties, Bill C-14: A second Act respecting certain measures in response to COVID-19 passed during a special sitting at the House of Commons. The bill will now pass the Senate and receive Royal Assent by the end of the day.

The wage subsidy aims to make it easier for employers to retain staff during the COVID-19 crisis. Not only will it ease the financial strain on employers, it aims to help expedite the eventual economic recovery.

“Parliamentarians are clearly sensing the need to act decisively to protect jobs and to help keep Canadian households afloat,” said Canadian Labour Congress (CLC) President Hassan Yussuff. “This bill ensures that workers will continue to receive wages and also have access to workplace benefits in the short term.”

This subsidy will be made available to eligible companies, non-profits and charities, providing a benefit of up to $847 per week or 75 per cent of the employee’s prior weekly paycheque, whichever is less. The CLC is urging the government to enforce the expectation that employers make every effort to top up wages so that workers receive 100% of their pre-crisis pay.

The Canada Emergency Wage Subsidy will also provide employers with a refund for certain contributions to Employment Insurance, the Canada Pension Plan, the Quebec Pension Plan, and the Quebec Parental Insurance Plan.

The CLC has been urging employers who have laid off workers to quickly reinstate them using this subsidy. Air Canada, for instance, is already working to rehire 16,500 employees.

“The next step is stronger support for essential workers, part-time employees and gig workers, so no one falls through the cracks,” said Yussuff.

For more information:
CLC Media Relations
media@clcctc.ca
613-526-7426

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According to Statistics Canada, employment fell by one million in March and the ranks of the unemployed grew by 413,000. Canada’s unemployment rate rose by 2.2 percentage points to 7.8 per cent, the largest single-month increase since comparable data became available in 1976.

“Today’s alarming unemployment numbers underscore the devastation this pandemic is having on workers and has made clear the enormous task in front of us,” said Hassan Yussuff, CLC’s president.

“Right now, working people need secure and adequate incomes, rent and mortgage relief, and a break on bank and credit card fees. The federal government’s commitment to increasing the Canada Child Benefit and expanding the GST/HST credit was welcomed news. As are the emergency benefits package and wage subsidy programs which are integral to preserving jobs and getting money to many of these workers. However, the scope of coverage simply needs to be broadened.”

The latest numbers highlight the impact of current efforts to curb coronavirus infections on communities across the country. Losses were concentrated in accommodation and food services where employment fell by 294,000 jobs, or 23.9 per cent compared to the previous month. Women and vulnerable workers have been hit hardest in this sudden downturn.

All provinces saw increases in the unemployment rate, with the exception of Newfoundland and Labrador and Prince Edward Island. The largest increases were in Quebec (+3.6 percentage points to 8.1 per cent), British Columbia (+2.2 percentage points to 7.2 per cent) and Ontario (+2.1 percentage points to 7.6 per cent).

April employment numbers are expected to show even higher numbers of job losses. The critical need for social distancing will continue to impact the country’s economic well-being. Beyond that, it will take cross-sector efforts to ensure that a full, robust recovery benefits everyone.

“Economic recovery will take all orders of government, business and industry, workers and labour being at the same table building durable, long-term solutions. The CLC will continue to demand action to support the livelihoods of all workers in Canada, now and in the recovery to come,” said Yussuff.

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“This pandemic has led to major disruption in the lives of many Canadians and is taking a financial toll. Many people have no choice but to turn to their credit cards to pay for basic needs,” said Hassan Yussuff, President of the Canadian Labour Congress (CLC). “The banks have made some moves to help, but it’s simply not enough.

“With the Bank of Canada’s lending rate at a historic low, financial institutions have an opportunity to pass along those savings to help all of us weather this storm. It’s not enough to provide a break for only a segment of borrowers, forcing desperate people to jump through hoops; this policy must apply right across the board for all customers.”

Yussuff sent a letter to the CEOs of Canada’s largest banks and credit card companies late last week urging the reduction. That action is being followed by a broad campaign to encourage Canadians to add their voice to the campaign and to reach out to the banks as well.

So far, over 5,000 people have joined the campaign, sending letters and tweets to raise the issue and over 2,500 have signed on to a petition.

The CLC is calling on all financial institutions to reduce interest rates on all purchases made on credit cards after March 15, and all balances carried forward from prior to that date, for the duration of the COVID-19 health crisis.

“This is a defining moment in our country’s history, and CEOs need to show solidarity and step up to support the common good,” said Yussuff. “Canadians are watching closely and are expecting every institution to do its part to help.”

A copy of the original letter is available here.

To arrange an interview, please contact:
CLC Media Relations
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613-526-7426

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“The Bank of Canada has reduced its lending rate to historically low levels and that means it’s cheaper for financial institutions to borrow money,” said Canadian Labour Congress President, Hassan Yussuff. “Passing those saving on to help struggling families weather this storm is the right thing to do.”

The CLC is calling on all financial institutions to reducing interest rates on all purchases made after March 15th, and all balances carried forward from prior to that date, for the duration of the COVID-19 health crisis.

“This is a defining moment in our country’s history, and I am urging CEOs to step up and take action to support the common good,” said Yussuff.

The CLC is collecting signatures to put more pressure on the banks and credit card companies to respond to this call, you can sign on here.

A letter has also been sent from CLC to the CEOs of financial institutions asking them to take steps to reduce the debt families are facing.

The post Credit card relief now appeared first on Canadian Labour Congress.

Representing 40,000 employees, Canada’s airline unions participating in the meeting included the Canadian Union of Public Employees (CUPE), Unifor, the International Association of Machinists and Aerospace Workers (IAMAW), the Air Line Pilots Association (ALPA) Canada, the Air Canada Pilots Association (ACPA) as well as the Canadian Labour Congress (CLC).

“A key priority for today’s call was to ensure that front-line aviation employees still working have the appropriate personal protective equipment,” said CLC President Hassan Yussuff. “This includes pre-board screeners, flight crews, and passenger agents who are working to ensure the safety of both employees and the travelling public.”

Union leaders urged the federal government to consider measures similar to those in U.S. Congress where affected airline and airport workers are to be provided top-up benefits similar to those in U.S. Congress where 80% of wages are guaranteed. The Unions also proposed that employers extend health benefit plans and ensure pensionable service is accrued under retirement plans. Moreover, they also wanted to ensure that any federal aid allows laid-off employees to return to payroll and maintains employment levels.

Unions also asserted that any government support be accompanied by tight restrictions on executive compensation. This includes bonuses and stock options, share buybacks and dividend payments, as well as debt repayment designed to increase shareholder value.

“Air travel is a vital part of Canada’s transportation network and economy, and the success of any federal financial aid package will require worker supports,” added Yussuff. “Canada’s unions welcome the federal government’s efforts to work with Labour to ensure the airline industry will continue to flourish into the future.”

To arrange an interview, please contact:

CLC Media Relations
media@clcctc.ca
613-526-7426

CUPE
Philippe Gagnon
613-894-0146

UNIFOR
Hamid Osman
Hamid.Osman@unifor.org
647-448-2823

IAMAW
Frank Saptel
fsaptel@iamaw.org
416-386-1789

ALPA
media@alpa.org

ACPA
Kym Robertson
krobertson@acpa.ca

The post Canada’s unions deliver clear priorities for federal airline relief package appeared first on Canadian Labour Congress.

“We continue to share our recommendations with the federal government as this situation progresses. While there has been an important move in easing measures around Employment Insurance (EI) benefits, the government will need to go much further to protect the most vulnerable,” said Hassan Yussuff, President of the Canadian Labour Congress (CLC).

After decades of cuts, Canada’s unemployment safety net is wholly inadequate and paid sick leave policies across the country are insufficient.

In 2018, only 33 per cent of unemployed women and 38 per cent of unemployed men received EI benefits. Seasonal workers, those with precarious employment and the self-employed are most vulnerable and will require urgent support.

“While we acknowledge the important measures all levels of governments are taking to ease the burden on the business community to help save jobs in the private sector, more must be done to assist front-line workers in health care fields who are vital in the fight against COVID-19,” said Yussuff.

Further, CLC urges the federal government to:

• Reduce the entry requirement for EI regular and sickness benefits;
• Immediately increase the current benefit rate from 55 per cent to 60 per cent;
• Establish an emergency benefit with a low minimum contribution requirement to support otherwise ineligible workers;
• Implement regulations to waive the requirement that claimants obtain a doctor’s note if they require quarantine;
• Make additional government funds available to provide special income relief for health sector workers who may be subject to quarantine or who become sick;
• Instruct utilities, banks, landlords, credit card companies and financial institutions to extend and relax mortgage, rent and bill payment requirements, loan servicing obligations, and other responsibilities facing consumers and households;
• Work with First Ministers to declare that no one be fired for self-quarantining or recovering from infection, and that if a worker loses their job for these reasons, they will be reinstated;
• Double the GST/HST credit to provide income support to low-income Canadians; and
• Increase the Canada Child Benefit (CCB) paid to low- and modest-income families.

“Single and vulnerable parents living paycheck to paycheck are going to struggle to pay rent and utilities if they have to scale back hours and turn down shifts to deal with the child care crisis. We know that these measures will disproportionately affect women.

“All across Canada, working people have been listening to public health authorities and doing their part to slow the spread of COVID-19—it is now time for Canada to support them.”

Read more: Supporting workers in a time of crisis — Key steps for governments and employers.

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While unemployment rates continue to fall overall, many Canadians aged 15-29 are staying in school or giving up looking for work altogether.

In particular, the number of people aged 25 to 29 who are not in employment, education, or training (NEET) has remained high since the 2008-2009 recession. This is when most Canadians have finished their formal education and should be able to find meaningful work that matches their education and training.

The Labour Market Snapshot is a quarterly report, which examines Canada’s employment landscape to spotlight trends in the economy. Analysis is based on Statistics Canada’s Labour Force Surveys.

Read the full Labour Market Snapshot here.

The post Labour Market Snapshot – Q2 2019 appeared first on Canadian Labour Congress.

The Canadian Labour Congress (CLC) provides a detailed quarterly analysis of select labour market indicators and what it means for Canada’s workers.

In our spring snapshot, the CLC discovers that while job growth in Canada is strong, garnering laudatory headlines, there is a hidden story.

While the unemployment rate hovered near 40-year lows, the overall percentage of employed Canadians continued to trend below levels seen before the global financial crisis of 2008. The ensuing recession led many Canadians – particularly women and youth – to leave or delay their entry into the labour market. These dynamics continue to affect the labour market today.

To learn more, download the spring 2019 snapshot here.

The post Labour Market Snapshot – Q1 2019: Behind the headlines appeared first on Canadian Labour Congress.

More than 75 years later, the program has been expanded and adapted to changing times – even renamed for political reasons – but today it is badly frayed by successive cuts. A few key changes would restore EI and its ability to meet the needs of employers, workers and the economy as a whole.

THIS BRIEF HISTORY SHOWS THE RISE AND FALL OF UI/EI IN CANADA.

1918 – Faced with the integration of returning soldiers back into the workforce, the Employment Officers Co-ordination Act is introduced in which the federal government subsidized provincial employment offices. The federal government also created the department of Employment Services, mandated to provide employment data and advice.

In 1919, the Government of Canada signed a draft document which recommended public unemployment insurance at the first International Labour Conference. In the same year, the federal government also appointed a Royal Commission on Industrial Relations. The Commission recommended the implementation of a national scheme of social insurance for workers who lost their jobs through no fault of their own.

1930s – In response to high rates of unemployment caused by the Great Depression, various levels of government set up a system of “relief”. This was often limited to vouchers not cash and tied to providing labour to public works or in work camps.

March 1935 – Failed first attempt – Employment and Social Insurance Act passed third reading in Prime Minister Bennett’s Conservative government.

June – July 1935 – Dire conditions in work camps on the West Coast prompt the On To Ottawa Trek, which ends in a police instigated riot in Regina on July 1^st. Relief camps are shut down, and the incident highlights the need for a social insurance system in Canada.

October 1935 – With Bennett’s government defeated, the Employment and Social Insurance Act is never implemented. It is deemed unconstitutional the following year, because employment falls under provincial jurisdiction.

Between 1935 and 1940 – Growing pressure from unions, social groups and the Cooperative Commonwealth Federation (CCF was the forerunner of the NDP) forced the Liberal government of W.L.M. King to take action.

1940 – The effects of the depression so deeply marked Canadians that the provinces unanimously agreed to change the constitution. Prime Minister King finally gets British approval and unanimous provincial support to allow UI to fall under federal jurisdiction, and the Unemployment Insurance Act passes. Only 40% of labour force covered, as seasonal workers, public servants, and others excluded. Workers are required to show they are unemployed, available for suitable work, and have contributed to the program for 180 days over the past two years.  Benefits last between 6 to 52 weeks.

1955 – Under Prime Minister Louis St. Laurent, an extensive overhaul of program extends benefits to approximately 75 percent of the Canadian labour force and changes benefit duration to 15 – 36 weeks.

1971 – Prime Minister Pierre Trudeau passes a new Unemployment Insurance Act that covers 96% of wage/salary-earning workers. People need 8 weeks of work over past year to qualify, with a minimum of 20 hours per week. The maximum benefit duration is raised to 50 weeks, but calculated on a complicated formula based on labour force attachment, the national and regional unemployment rate. Benefits for illness, maternity, and retirement are added.

1977 – The Trudeau government simplifies the benefit duration formula, but adds a variable entrance requirement based on the unemployment rate in the region where someone lives. Workers who live in a low unemployment region must work twice as long to qualify for benefits as workers living in a high unemployment region.

1978 – Trudeau’s government increases the number of UI regions from 16 to 48.

1990 – Prime Minister Brian Mulroney ends federal (tax dollar) contributions to the program, making UI entirely financed by worker and employer contributions. The number of UI Regions is increased to 62 and a single benefit duration schedule is introduced based on weeks of insurable earnings and the regional unemployment rate.

1990 – 1996 – Successive Conservative and Liberal governments make a number of changes that reduce the benefit amount paid to recipients, reduce the duration of benefits, and increase the weeks needed to qualify in some regions.

1996 – Prime Minister Jean Chrétien’s government introduces major reforms, changing the program’s name to Employment Insurance (EI). The entrance requirement is increased substantially. In the lowest unemployment regions, for example, it increases by 240% from 20 weeks at 15 hours/week (300 hours) to 720 hours of work.

1996 – 2006 – Under successive Liberal governments, the reduced ability of unemployed workers to quality for EI benefits builds up a massive surplus of $57-billion. Rather than save the money for future employment needs, the money is taken out of the fund, and used to balance federal budgets that offer substantive tax cuts to corporations and the wealthy.

2008 – Prime Minister Stephen Harper’s Conservative government establishes a new Board to govern Employment Insurance financing (Canadian Employment Insurance Financing Board), wipes out the $57B “borrowed” by the federal government and reboots the program with only $2B in EI fund. Unions take the government to court, asking for the $57B to be repaid, but the Supreme Court sides with federal government. Later that year, the Great Recession hits.

2012 – Harper’s government changes the definition of “suitable employment” so that all EI claimants are compelled to accept job offers at wages lower than their previous job – between 10% and 30% depending on previous EI usage and length of time on current claim. The appeals process is also changed from face-to-face hearings with a three member Board of Appeals to mostly written submissions decided by a single member of the Social Security Tribunal.

2013 – 2017 –  see “Resources”

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The “On To Ottawa Trek” was a worker protest against unfair treatment and government austerity that captured public support, contributed to the defeat of the Conservative federal government of R.B. Bennett later that year, and paved the way to the establishment of a national unemployment insurance plan.

In the 1930s, “The Great Depression” had crippled the Canadian economy and resulted in massive unemployment. In response, the Federal Government created “relief camps” where thousands of men lived and worked at a rate of twenty cents per day.

By 1935, people had had enough. In April that year, following a two-month protest in Vancouver over the dismal and unfair working conditions in the camps, more than a thousand unemployed workers boarded – or rather jumped on top of – railway box cars in what became to be known as the “On‑to‑Ottawa Trek.” Their goal: to meet as a group with the Conservative government of the day and demand better conditions and a fairer way to address unemployment.

The Prime Minister eventually agreed to meet, but only with a handful of representatives, not all of the workers. While those representatives travelled to Ottawa, the hundreds of other trekkers “waited” in Regina (they were actually being held in place by the RCMP).

The meeting went badly, with the Prime Minister accusing the trekkers of being radicals leading an insurrection. When the workers’ representatives returned to Regina with news of their meeting, nearly 2000 people joined 300 trekkers as a show of protest and solidarity for workers’ rights.

The police charged the crowd, setting off hours of hand-to-hand fighting throughout the city’s centre. People fought back with sticks and stones while police used tear gas and fired bullets above and into groups of people.

Damage to property was considerable and personal injuries were many; one trekker and a plain clothed policeman died while hundreds of injured local residents and trekkers were taken to hospitals or private homes. The police proceeded to arrest those in hospital, along with over 100 others.

The police claimed 39 injuries in addition to the dead police officer, but denied that any protesters had been killed in the melee. Hospital records were subsequently altered to conceal the actual cause of death.

Later that year, in reaction to public support for a better deal for the unemployed, the federal government passed the Employment and Social Insurance Act and the country’s first national unemployment plan.

Eventually, the government was defeated, and its hastily-crafted law struck down in the courts. But, the bold attempt at reform paved the way for the establishment of a national unemployment insurance program under the new government, led by W.L.M King, in 1940.

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