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O~oi~rWeekly~Thn~a, Wedne8day, No~rember ~29. 1995 - 17 Promi Capital Hill Alex Shepherd, MP Durham The federal government's changes to Unemploymient Insurance will be announced this week. And many will view the changes as punitive and retrogressive. Canada's UI benefits are the highest in the Western World. Some argue this has led to a decrease in the pro- ductivity of labour. International comp arisons show productivity in Canada has declined steadily throughout the '80s. High UI benefits has resulted in some recipients being less concerned about being unemployed. We al know people who regularly dlaim benefits for seasonal jobs in industries such as forestry and fishing. The changes to UI will reduce premîums and there- fore benefits. Since over hall of UI benefits are paid by employers hopefully this will lead to more hîring by employers. At the same time the changes will reduce benefits and higher income earners will see their benefits reduced. But statistics show this group is less prone to col- lect UI. The changes also mean less benefits for those who use the system frequently. Many workers, GM employees corne to mind. will be affected by this. The idea, as in other forms of insurance, is that if you use the, system more fre- quently you should pay high- er premiums or, as in this case, receive less benefits than those who use the sys- tem less. GM argues they are justi- fieçl in using the systemi as is because they draw only 60 cents for every dollar they pay into Ul. In a sense this argument is justified since GM workers are subsîdizing high users especially those in the East Coast fishery and forest industry. Still Ul is an insurance plan. And it's impossible to design one where everyone breaks even especially in a country like Canada which is so diverse. Seasonal workers on the east coast xiii be even harder hit. Small and medium-sized businesses shouldn't see any great changes. 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