March 23 2025
The US tariff crisis means changing the conversation about our Employment Insurance program.
Community and labour organizations across the country are calling on the Federal Parliament to prioritize the interests of working people as they develop an action plan.
Bank economists expect that significant, broad-based US tariffs on Canadian goods will have far-reaching, adverse effects on the Canadian economy and employment. Their consensus is that—quite aside from the effects of Canada’s retaliatory measures— protracted US tariffs on Canadian goods will send our economy into recession.
Layoffs would not be confined to trade-exposed firms and industries but include indirect job losses among vendors and through supply chains, as well as rising joblessness as households cut back on spending.
Despite headlines reassuring Canadians that the government is planning “pandemic- level” income support, it’s become clear the government is actually assuming a “no-cost” response to the tariff upheavals. A federal election adds even more uncertainty to the response.
To date, the government’s EI proposals emphasize EI Work Sharing and targeting trade-exposed industries immediately at risk from US tariffs.
This will be totally inadequate for several reasons, including
- The economic effects of protracted, broad-based tariffs will not be confined to traded industries.
- EI Work Sharing is an important program but inappropriate for many workplaces and falls short of comprehensive coverage for workers needing assistance, including those who can’t qualify for EI.
EI’s deficiencies, obvious during COVID-19, have not yet been addressed, despite lengthy consultations on reforms.
In order to stabilize the economy while responding to the US bullying and the new trade environment, the government of Canada must act on EI and protect all workers at a time of uncertainty, vulnerability and need.
Most vulnerable workers—initially racialized workers and newcomers, but eventually women, youth and low-income workers in precarious work—will be affected by an economic downturn triggered by US tariffs. Employed in part-time, casual, sporadic and misclassified jobs, many of these vulnerable workers will struggle to access EI benefits under existing rules.
We are calling on the government to reinstitute the EI “temporary flexibilities” introduced in 2020-22. These were special EI measures, not to be confused with the Wage Subsidy program or Canada Emergency Response Benefit (CERB).
- A national unemployment rate set sufficiently high to establish a universal 420-hour entrance requirement for both EI regular and special benefits;
- A 300-hour credit for those with precarious employment;
- A minimum weekly benefit rate of at least $500 (if adjusted for post 2020 inflation, it would be $600). This is important for low wage workers but also to help stabilize the larger economy;
- A significant increase in Maximum Insurable Earnings and the 55% benefit rate so that moderate/higher-income workers have a liveable benefit;
- A minimum of 26 weeks for regular benefits (and automatic 50-week extension for workers already on claims like those in auto plants undergoing retooling).When establishing eligibility, consider only the most recent reason for separationWaive the waiting period and pay benefits from the first week;
- Suspend the allocation of separation payments (severance, vacation pay) so that EI is payable from the first week;
- Ensure migrants contributing EI premiums have full access to EI.
Given the economic disruption and job displacements, it is also urgent that the federal government restore and enhance the EI Part 2 supplements that were eliminated from provincial Labour Market Agreements in the last budget. Provincially administered retraining and employment programs are more important than ever.
At some point, sooner rather than later, the old habit of ad hoc EI fixes every time there’s a new emergency simply won’t do. Comprehensive reforms are needed.
Developed by the Interprovincial EI working group
Endorsing Organizations
| Action Canada for Sexual Health & Rights |
| Action Populaire Rimouski-Neigette |
| Action-Chômage Côte-Nord |
| Advancement of Women Halton |
| Advocacy Centre for Tenants Ontario |
| Aide et Soutien aux Travailleuses et Travailleurs des Secteurs Saisonnier Inc. (A.S.T.S. Inc) |
| Atkinson Foundation |
| BC Employment Standards Coalition |
| BC Society for Policy Solutions |
| Broadbent Institute |
| Canadian Centre for Policy Alternatives |
| Canadian Labour Congress (CLC) |
| Canadian Union of Postal Workers (CUPW) |
| Centrale des syndicats démocratiques (CSD) |
| Centre for Future Work |
| Canadian Federation of Nurses Union (CFNU) |
| Child Care Now |
| Chinese & Southeast Asian Legal Clinic |
| Clinique juridique Grand-Nord Legal Clinic |
| Community Advocacy & Legal Centre |
| Community Food Centres Canada |
| Community Legal Assistance BC |
| Community Legal Assistance Sarnia |
| Community Legal Clinic – Brant, Haldimand, Norfolk |
| Conseil central Gaspésie-îles-de-la-Madeleine (CSN) |
| Conseil central Saguenay-Lac Saint-Jean (CSN) |
| Conseil regional: Bas-Saint Laurent Gaspesie Iles-de-la-Madeleine (FTQ) |
| Conseil régional: Côte-Nord (FTQ) |
| Cooper Institute |
| Council of Canadians / Conseil des canadiens |
| Canadian Union of Public Employees (CUPE) |
| CUPE BC |
| CUPE PEI |
| Decent Work and Health Network |
| Dignidad Migrante Society |
| Downsview Community Legal Services |
| Fédération des travailleurs et travailleuses du Québec (FTQ) |
| Feed Ontario |
| First Call Child and Youth Advocacy Society |
| Good Jobs for All Coalition |
| Hamilton Community Foundation |
| HIV & AIDS Legal Clinic Ont |
| IAVGO Community Legal Clinic |
| Injured Workers Action for Justice |
| Justice for Workers |
| Justicia for Migrant Workers |
| Kensington-Bellwoods Community Legal Services |
| Labour Studies at Simon Fraser University |
| L’Alliance Interprovinciale de l’AE / Interprovincial Alliance on EI |
| Landlord’s Self-Help Centre |
| Legal Assistance Windsor |
| Living in Community |
| Maytree |
| Migrant Workers Alliance for Change |
| Migrant Workers Centre BC |
| Mouvement Action Chômage Lac-Saint-Jean |
| Mouvement Action Chômage Pabok Inc. |
| Mouvement Autonome & Solidaire des Sans- Emploi (MASSE) |
| National Campaign 2000: End Child and Family Poverty |
| National Union of Public and General Employees (NUPGE) |
| Neighbourhood Legal Services (London & Middlesex) |
| New Brunswick Federation of Labour |
| New Westminster & District Labour Council |
| Newfoundland and Labrador Association of Public and Private Employees (NAPE) |
| Newfoundland and Labrador Federation of Labour |
| Northumberland Community Legal Centre |
| Ontario Campaign 2000 |
| Ontario English Catholic Teachers’ Association (OECTA) |
| Ontario Federation of Labour |
| OPSEU |
| Parkdale Community Legal Services |
| Parkdale Queen West Community Health Centre |
| PEI Federation of Labour |
| Peterborough Community Legal Clinic |
| Professional Institute of the Public Service of Canada (PIPSC) |
| Progressive Intercultural Community Services Society |
| Prosper Canada |
| Rexdale Community Legal Clinic |
| Service Employees International Union Local 2 |
| Social Assistance Action Committee |
| Social Planning Council of Winnipeg |
| IFPTE 160 – Society of United Professionals |
| IFPTE International IFPTE 222- SCMMA IFPTE Council of Canadian Locals |
| South Asian Legal Clinic of Ontario |
| Southern Nova Scotia Seasonal Workers Alliance |
| Steelworkers’ Toronto Area Council |
| Teamsters |
| The Legal Clinic |
| Toronto & York Region Labour Council |
| Unemployed Workers Help Centre (Regina and Saskatoon) |
| Unifor |
| Unite Here |
| United Steelworkers (USW) |
| Vancouver and District Labour Council |
| Vancouver Committee for Domestic Workers & Caregiver Rights |
| Waterloo Region Community Health Centre |
| West Coast Leaf |
| West Neighbourhood House |
| Willowdale Community Legal Services |
| Workers’ Action Centre |
| Workers’ Health and Safety Legal Clinic |
| YWCA Halifax |
| YWCA Muskoka |
| YWCA St. John’s |
| Fish, Food and Allied Workers (FFAW-Unifor) |
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