Canada’s Employment Insurance fiasco

Image via HuffingtonPost.ca

Excuse my biased news sources, but I think we may have a slight problem here…

Inside Canada’s battered EI system via CBC News

It sounds like a joke. Thousands of people who used to run Canada’s Employment Insurance system have themselves been laid off (as part of a separate fiasco that I won’t even get into), leaving an overburdened, glitchy, automated system that has created an enormous backlog.

The “infusion of 3000 term workers” hired when the economic meltdown blindsided the system were mainly previous EI workers who had lost their permanent jobs.

Meanwhile…

EI financing agency spends millions doing nothing via CBC News

The Harper government invested $3.3 million dollars into creating the Canada Employment Insurance Financing Board. This small agency of consultants was hired to manage the EI system’s finances.

The economic crash in 2008 that sent a tidal wave of unemployed into the EI system left the CEIFB without any finances to manage.

The EI fund is running a deficit of $8.8 billion. High unemployment means there are more people who need support, and less contributions coming in from employed people’s paychecks.

I’m just waiting for the punchline: when the consultants at the Canada Employment Insurance Financing Board agency get laid off.

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One comment

  1. Anonymous · January 21, 2012

    EI fund is running a deficit only because govt cancelled its $57 billion surplus in July 2010, retroactive to Dec. 31, 2008. That surplus, 100% funded by workers and employers, should have taken up the slack, and would have dropped to about $48 billion (yes, those are billions…) if govt hadn’t scooped it all.

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