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SUMMARY |
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This enactment implements various parts of the February 22, 1994
budget.
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In so far as it affects persons employed in the public service, as well
as federally appointed judges, Parliamentary agents, the Governor
General, the Lieutenant Governors, Parliamentarians, and members of
the Canadian Forces and the Royal Canadian Mounted Police, this
enactment extends the wage freeze currently in effect for a further two
years, suspends the upward movement within salary scales (pay
increment increases) for a two-year period and enables incentive
payments to be made to indeterminate employees of the Department of
National Defence, Emergency Preparedness Canada and the
Communications Security Establishment under the Civilian Reduction
Program referred to in the budget.
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It also fixes a maximum on contributions to provinces under the
Canada Assistance Plan for the fiscal years after 1994-95 and extends
the restrictions on payments to provinces under the Public Utilities
Income Tax Transfer Act.
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It makes permanent the 10% reductions in payments to railway
companies under the Atlantic Region Freight Assistance Act originally
enacted by chapter 13 of the Statutes of Canada, 1993, and increases the
reduction in the government share of freight rates under the Western
Grain Transportation Act from 10% to 15% for crop years beginning on
or after August 1, 1994. If the latter amendment is not in force by
June 16, 1994, the reduction will only apply to crop years beginning on
or after August 1, 1995.
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The enactment also authorizes the Canadian Broadcasting
Corporation to borrow money.
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In so far as this enactment affects unemployment insurance
claimants, it establishes a two tier benefit rate: enhanced income
protection at 60 per cent for claimants with low earnings and
dependants and a basic benefit rate at 55 per cent. It decreases the rate
of employees' premiums to three per cent of insurable earnings for 1995
and not more than that percentage for 1996. A new benefit entitlement
schedule strengthens the link between work history and duration of
entitlement to unemployment insurance benefits and adjusts
entitlement when this enactment comes into force. The minimum
entrance requirement is increased from ten to twelve weeks of work.
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It also provides that claimants who are suspended for misconduct,
who take a leave of absence or who quit their job a few weeks before the
end of their employment will no longer be disqualified from receiving
benefits for their entire entitlement period; they will, however, not be
entitled to benefit while suspended or on leave or while their contract
of employment continues. The benefit of the doubt will be given to
claimants on these and other issues related to just cause or misconduct,
where the evidence is equally balanced.
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The enactment also authorizes the establishment and operation of
pilot projects to study ways to make the administration of the
Unemployment Insurance Act more efficient, to improve service to the
public or to make that Act more current with industry practices. Such
pilot projects could include matters such as earnings reporting history,
electronic filing and direct deposit of benefits.
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