Canadian Review of Social Policy (CRSP) / Revue canadienne de politique sociale (RCSP)

O'Grady, Bill

English

Testing the Water: Unemployed Youth and the 'Enterprise Culture' in Newfoundland

Calhoun, Sue

Controlling Common Property: Regulating Canada's East Coast Fisghery, by David Ralph Matthews

Hardina, Donna

Targeting Women for Participation in Work Programs: Lessons from the U.S.

Free Trade and Health Care 
Ecumentical Coalition for Economic Justice 
Toron t o  
Does NAFTA threaten health care? Mexican and Canadian analysts present 
persuasive evidence that it does. 
Ana Cristina Laurell and Maria Elena Ortega from the School of So- 
cial Medicine a t  Xochimilco Autonomous University cite three reasons why 
NAFTA is harmful for health care in Mexico: 
First, it will open up profitable economic activities relating to health 
care to the private sector and weaken the role of the state in safeguarding 
social needs. 
Second, it will reinforce the Mexican experience with economic lib- 
eralization and structural adjustment which have already weakened 
socialized medicine in Mexico. Per capita spending by Mexico's two 
publicly funded social security agencies, IMSS and ISSSTE, fell by 44% 
between 1983 and 1990.l 
Third, the medical-industrial complex in the United States is one of the 
most powerful sectors in the USA with a vested interest in maintaining 
and expanding its sphere of activity. The U.S. hospital and insurance 
firms are interested in gaining access to the 20 to 25 million Mexican 
citizens out of a total population of 86 million who are wealthy enough 
to  pay for private services. 
The Medical-Industrial Complex 
Huge insurance and hospital corporations wield substantial economic and 
political power in the USA. The three largest insurance companies (Pru- 
dential, Metropolitan and Aetna) managed assets worth US$289 billion in 
1990. 
The four largest hospital corporations (Humana, Hospital Corporation 
of America, National Medical Enterprises, American Medical Holdings) con- 
trol 70% of the 700 private hospitals in the USA with assets worth $17.6 
billion while public hospitals in the USA suffer from cronic undercapitaliza- 
tion. In a "side letter" to the official NAFTA text Mexico has promised to 
allow U.S. insurance companies to wholly own and operate subsidiaries in 
M e ~ i c o . ~  
Laurell and Ortega point to  attacks on Canada's public medicare system 
as evidence that U.S. insurance and hospital corporations want to harmonize 
96 No. 33, 1994 
Canadian Review of Social Policy 
the three systems. The Mexican analysts fear that the result will be further 
polarization in health care with one system for the rich who can afford to 
buy private insurance and pay private doctor's fees and another, inferior 
system for the poor who will be dependent on a scaled-down, under-funded 
pulbic institutions. 
Canada's Experience 
Since the signing of the Canada-U.S. Free Trade Agreement (FTA) the 
Canadian health care system has been weakened considerably. Before the 
FTA was ratified many Canadians argued that it would result in pressures 
to  "harmonize" health care in Canada with U.S. standards as part of the 
"level playing field" demanded by free traders. 
During the 1988 election campaign the Canadian Alliance for Trade 
and Job Opportunities, representing big business proponents of free trade, 
took out four-page newspaper advertisements that asked and answered these 
rhetorical questions: 
"Won't the agreement gradually force us to align our policies along the 
lines of the larger and stronger partner? Won't Canadian business lobby 
to reduce spending on social and other programs?" 
"Not at all." 
Just a month after the free trade election big business went back on its word 
and onto the offensive. The Canadian Manufacturers Association (CMA) 
called for a Royal Commission on social spending. The Chairperson of 
the CMA said "All Canadien governments must test all their policies to 
deterime whether or not they reinforce or impede competitiveness. If a 
policy is anti-competitive, dump it."3 The President of the CMA bluntly 
asserted "The social programs we've come to depend on . . . we're going to 
have to abandon. We're going to be shutting down hospitals, like it or lump 
it."4 
In its first post-free trade budget delivered in April of 1989 the Conser- 
vative government responded to the business lobby by cutting a number of 
social programs including Unemployment Insurance and Old Age Security. 
That same budget reduced federal contributions to Established Program 
Financing (EPF) which transfers funds to the provinces for health care and 
secondary education. The 1990 and 1991 budgets imposed a total freeze on 
EPF until the 1994-95 fiscal year. The cumulative effects of these changes 
amounts to  a loss of $97.6 billion worth of federal cash contributions for 
health and higher education between 1986-87 and 1999-2000.~ 
The accompanying graph shows how all federal cash transfers for health 
and education will disappear by 2009. 
No. 33, 1994 97 
Revue canadienne de politique sociale 
Federal Cash Outlays for Health and Higher Education 
Billions of Dollars 
Source: Funding Health and Higher Education: Danger Loolcing, A Report by the 
National Council of Welfare, 1991, p. 20. 
Harmonizing with the USA 
As a result of the financial squeeze brought on by federal cutbacks, some 
Canadian hospitals are purchasing computer software from U.S. consulting 
firms with patient classifications already built in according to cost-cutting 
criteria. Under these systems nurses are expected to follow standardized 
action plans that emphasize quick treatment and short stays. For example, 
nurses are given as litle as six a.nd a half minutes to get an elderly patient 
out of bed, bathed and ready for breakfast. "I am humiliated in the way 
I a.m expected to work," says one care giver. "And I am paid to bring 
humiliation to the residents." 
The services chapter of the Canada-U.S. FTA opened the door to pri- 
vate U.S. firms to take over the management of Canadian hospitals, nursing 
homes, treatment centres, laboratories and other services. Private labora- 
tories and diagnostic clinics have already sprung up in some provinces and 
profit-making management firms have been hired to run hospitals in 0nta.rio 
a.nd Alberta. 
The Kaiser Foundation, a large U.S. private health insurer, has ta.rgeted 
Canada as its next "growth market." 
Generic Medicines Eliminated 
The U.S. Pharmaceutical Manufacturers Association (PMA) represents one 
of the most powerful sectors within the medical-industrial complex. In 1992 
PMA members world-wide sales surpassed US$75 billion. Their profits were 
98 No. 33, 1994 
Canadian Review of Social Policy 
more than 50% higher than the median earned by Fortune 500 companies 
in the USA. 
Lobbyists from the PMA were instrumental in persuading the U.S. 
government to use trade agreements such as NAFTA and unilateral trade 
sa.nctions to force other countries to amend their patent laws to give more 
protection to the transnationals pha,rmaceutical patents. 
Until recently Canada allowed domestic drug manufacturers to produce 
generic drugs which sold for 20% to 50% less than their brand-name equiv- 
alents. It is estimated that Bill C-91 amending Canada's pharmaceutical 
patent law will cost Canadians more than $500 million a year in higher 
drug costs. Bill C-91 gives pharmaceutical patent holders 20 years of exclu- 
sive monopoly protection as required by NAFTA's chapter on intellectual 
property rights. 
Similarly Mexico used to have a thriving domestic drug industry that 
produced inexpensive copies of brand-name pharmaceuticals for local con- 
sumption. In 1987 the USA withdrew preferential tariff treatment affecting 
US$220 million worth of Mexican exports of chemical products because 
Mexico allowed chemical and pharmaceutical companies to produce generic 
copies of patented products. Then the USA threatened further sanctions, 
placing Mexico on a "priority watch list . . . because of its lack of adequate 
patent p ro t e~ t ion . "~  Mexico was forced to amended its patent law to give 
transnational drug companies 20 years of exclusive monopoly protection. 
While in Canada the extra cost for pharmaceuticals will be an inconve- 
nience and a further burden on provincial drug benefit plans that provide 
prescription drugs to the elderly and the poor, in Mexico the unavailability 
of cheaper generic medicines could cost lives. 
1. Ana Cristina Laurel1 y Maria Elena Ortega, "El TLC y el sector salud," 
Mexico City (1991), p. 5. 
2. Inside U.S. Trade (Aug. 13, 1993)) p. 8. 
3. Cited in Canadian Labour Congress, Free Trade Briefing Document 7 (Jan- 
uary 1991), p. 13. 
4. Cited in The  London Free Press (28 December 1991), p. A4. 
5. Funding Health and Higher Education: Danger Looming. National Council 
of Welfare, Ottawa (1991), p. 18. 
6. United States International Trade Commission, Review of Trade and In- 
vestment Liberalization Measures by Mexico and Prospects for Future United 
States-Mexico Relations. Investigation No. 332-282, USITC Publication 2275, 
Washington (April 1990), p. 6-1. 
No. 33, 1994 


Free Trade and Health Care (Ecumenical Coalition for Economic  Justice)

Murphy, Jonathan

Welcome to Alberta 
Jonathan Murphy 
Edmonton Social Planning Council 
After getting 44 per cent of the popular vote and a four-point margin of 
victory in the June election, the Conservative government inisists it has 
the right and obligation to  dismantle Alberta's social safety net.1 Health, 
social services, and education have all been severely affected. In response, 
thousands have attended protest marches and meetings outside the Alberta 
legislature, in Calgary, and in other smaller centres. A rally by students in 
Lacombe even made the Globe and Mail, which described the chaotic scene 
as students laid down on mainstreet and halted traffic. 
The particularly vigorous opposition of students and the well-organized 
lobby of teachers has caused the government to  backpedal on its promise of 
20 per cent across-the-board spending reductions in all departments, only 
t o  say that any cuts not made in education will be found elsewhere. 
Welfare recipients are not and never will be a very strong lobby group, 
and staff from many social agencies are terrified t o  speak on behalf of their 
clients for fear of their agency being singled out for funding cuts. When 
that's combined with social services minister Mike Cardinal's sincere belief 
that welfare has "destroyed" Aboriginal people and others, we can look 
forward to further reductions to welfare benefits. There are even rumors 
that all welfare for single employable people will be eliminated. 
All efforts to  have the government reconsider its cruel treatment of the 
poorest and most defenceless members of society fall on deaf ears. Premier 
Klein, defacto premier Ken Kowalski, and government ideologue Stockwell 
Day all made flippant comments about the 5,000 strong crowd which gath- 
ered outside the legislature October 23 to  beg the government t o  change 
direction, and all vowed to stay the course on the budget 'plan.' 
While roundtable discussions have been held to discuss future directions 
for health and education, Mike Cardinal has refused to do the same in social 
services. At a meeting with agency representatives October 25th, he insisted 
that there was no point holding any roundtables because "no-one outside 
Edmonton has complained" about the cuts. 
People in the human service field seem to have very few avenues left 
open. More rallies will likely be held, but it is hard to  match school students' 
spontaneity and impact. Letters and telephone calls are ignored. The official 
opposition is in a minority in the legislature, and is treated with derision 
when it expresses concerns. 
No. 33, 1994 75 
Revue canadienne de politicrue sociale 
All is never lost. Any one strategy is unlikely to dissuade a government 
convinced of its righteousness and with four years left before the next elec- 
tion. But in combination, innovative and determined action can make even 
the most intransigent minister a.nd government think again. Every person 
who cares about the hungry, the weak, and the children needs to  explore her 
own conscience and decide what she can do to help protect the defenceless. 
There are many different ways to  speak up for a caring Alberta: 
Government members come exclusively from Calgary and rural areas. 
A few phone calls from constituents and meetings with rural MLA's 
probably affect this government's policies more than 10,000 Edmonto- 
nians on the steps of the legislature. Organizations and individuals can 
reach out to  their contacts across the province. Food banks in rural 
areas are already starting to talk to  their government representatives 
about the hunger and pain government policies are causing. Churches 
must begin to  use their province-wide networks to  insist upon caring 
policies and social justice. 
Long term alternatives need to be developed. If government policies 
are short-sighted and ultimately costly, what would be long-sighted 
and ultimately cheaper? For example, many leading economists have 
commented that the budget balancing plan is both harmful and unre- 
alistic. They have recommended increasing taxes which remain much 
lower than anywhere else in Canada. Their message should be repeated, 
multiplied, and amplified. 
Every government is a coalition of different interests and opinions. 
While many of the more enlightened members of the Lougheed and 
Getty governments are in retirement, they still influence the Conserva- 
tive party and need to stand up for their beliefs in balanced and humane 
government. Human service advocates can encourage them to do the 
right thing. 
The government of Alberta is given money by Ottawa to pay for the 
welfare program. Even with federal cuts, about 44 per cent of Alberta's 
welfare bill is actually paid by the federal government. As a result, 
our welfare program must be delivered according to principles set out 
by the federal Canada Assistance Plan Act. The reforms seem to con- 
travene some of those principles. Federal officials need to review the 
province's welfare program and direct Alberta to  bring the program up 
to standard. 
e Former Children's Advocate Bernd Walter recently completed his re- 
view of child welfare services In Need of Protection. The report warns 
that the child welfare system does not properly protect children at risk 
and needs major reforms. Instead of an overhaul, the system has suf- 
fered severe cutbacks. Restrictions on services to  some groups, like 
No. 33, 1994 
Canadian Review of Social Policv 
16 and 17 year olds, clearly contravene the Child Welfare Act. The 
government must be made aware that its negligence in this field will 
invariable lead to needless suffering and even deaths among children 
refused protective services or provided inadequate protection. 
Our new federal government can provide some balance to government 
policies, and thus help protect the many Albertans who are being cut 
out of the 'new Alberta.' Edmonton is represented by four talented 
government members, of whom one is a senior cabinet minister. They 
can be expected to advocate for federal programs and policies which 
will serve the interests of our city. 
We must change the attitude of our government towards the disadvan- 
taged. Not so much because of the details of the cuts, which are bad enough. 
More dangerous is the message our government is sending to Albertans, that 
it is OK to let the poor go hungry and the children go without protection 
because they are not our friends, not our kids. This is exactly the perspec- 
tive Reagan and Bush promoted in the United States. It ended up with the 
inner cities in flames and a bigger deficit than when they took over. 
Premier Klein says he must balance the budget to show that Alberta is 
"open for business." Let us ask him, what kind of business wants to relocate 
to  a place where we would have the poor go hungry and the children go 
without protection if that means avoiding paying even one cent more in 
taxes? 
1. This article first published in First Reading, December 1993. Jonathan blur- 
phy is executive director of the Edmonton Social Planning Council. 
No. 33, 1994 


Welcome to Alberta

Ralph, Diana

Fighting for Canada's Social Programs

Editorial/Éditorial

Hoyt, Michael

Clients and agencies wrestling 
with SF1 cuts 
Michael Hoyt 
Dean, an Edmonton welfare recipient, claims that Supports of Indepen- 
dence, Alberta's welfare program, no longer lives up t o  its name. The 
province recently made cuts to  social assistance benefits to  get people off 
of welfare. "The program as it stands now doesn't fortify people, it traps 
them," he concluded. 
When the recession hit Dean lost his job. He hoped that social assis- 
tance would help his family to  survive until the job market improved. That 
hope faded when the new welfare changes went into effect on October 1. 
"We were sharing the rent of our house with some friends," he explained. 
However, their friends moved just before the welfare cuts. Now they can 
afford neither to  stay nor to  move to  cheaper accommodation. 
"If we move to  a cheaper place without giving one month notice our 
landlord will keep the damage deposit money we have now," explained 
Dean's wife, Stephanie. If they give 30 days notice the new landlord will 
want a damage deposit to hold the unit for them. "We don't qualify for 
money for a new damage deposit under the welfare changes, even though 
we would be moving to  a less expensive place." The welfare changes limit 
money for damage deposits to  a one-time pay out to recipients. They have 
looked, unsuccessfully, for new roommates. "It's hard to find someone you 
feel you can trust with two small children," noted Stephanie. 
At their income support worker's suggestion, they asked the landlord 
for a rent reduction. "He can't do anything until the bank reduces his 
mortgage," said a restrained Dean, who fears that their eviction is imminent. 
In the wake of cutbacks many families across Edmonton have turned to 
the pawnbroker for assistance. Shelly, a 24-year-old wife and mother, has 
pawned her family's television and cassette player to help pay for rent and 
food this month. "Before the cuts they gave you barely enough to  get by," 
she said. After this month, "we're probably going to be in more debt than 
when we started. I'll have to  pay 30% on what (the pawnbroker) gives to  
get our things back." Dean, who is in the same position, cautioned "we are 
losing everything to stay alive." 
To pay for expenses no longer covered by social assistance many peo- 
ple have dug into their food allowance. "We eat everyday, but some days 
78 No. 33, 1994 
Canadian Review of Social Policy 
this month it has been oatmeal for breakfast and dinner," noted Stephanie. 
"That's a problem because if you're undernourished you don't feel like get- 
ting up in the morning." 
At Operation Friendship workers calculate that the number of meals 
they are serving to seniors has increased by almost 14%, to 5,700 meals 
per month since the welfare cuts began. Mary Ann Cunningham, drop in 
supervisor, said "A lot of new faces are showing up for meals. Up to a third 
are coming for the first time." 
Eddy, an unemployed 57 year old, was waiting for his meal when he 
spoke. "The government is taking food right off my table to  pay for the 
deficit," he said. Eddy's welfare cheque was cut by $70 to $400 per month. 
After rent, that leaves him with $180 for living expenses. He would like 
to  have a phone installed for $46 to provide comfort and safety. "I live in 
a building with 20 people, all over age 55, and there are only four private 
phones. What happens if there is an emergency?" 
Eddy feels fortunate, he expects to be called back to work in December. 
Cunningham noted that many seniors at the drop in are less fortunate. 
"They are considered employable between the ages of 55 and 65, but they 
have no advantage over 20-year-olds looking for jobs. It's unrealistic to 
think that  this group will become financially independent." 
At Candora, a resource center for low income families, mothers are 
worried about the effects of the welfare cuts on their children. "Kids are 
the ones who will suffer the most because of the cutbacks," observed one 
mother. She explained that for many families at the center food money goes 
toward children's school fees and supplies. "How do you explain to a child 
that you don't have the money for (fees and supplies), they just see that 
they don't have what other kids have." 
Welfare covered the actual cost of school fees and supplies for each child 
before the changes. This amount has been reduced to $25 per year for each 
child. "Our kids can't afford to attend the schools or take the classes they 
want because of user fees," explained the mother of a grade 12 student. 
A two-tiered school system, one for the poor and one for the rich. is just 
around the corner according to these mothers. 
Mothers feel the cuts in other ways. Many mothers are feeling pressured 
to look for work to  keep their benefits but they don't have a place to leave 
their children. "S4'e are looking at daycare to provide crisis relief for these 
mothers," said a worker at the Bissell Centre, but that is not a long term 
solution. 
Fred, a volunteer at the Boyle Street Co-op, is concerned that the wel- 
fare cuts push those on assistance into a labor market where they have no 
hope of competing. "Who is an employer going to take, a person on as- 
sistance or someone with a steady work record and maybe post-secondary 
No. 33, 1994 79 
Revue canadienne de ~ol i t i aue  sociale 
education? These people can't compete with an ALCB worker who has 10 
years experience." 
Many people on assistance fear that the cuts will have other negative 
consequences. Crime is going to increase warned a group on welfare at a 
drop in center in Edmonton's inner city. "There is more hooking going on 
now," confided Maggie, a young native woman at the Boyle Street Coop- 
erative. She has decided not to  work the street, but some of her friends 
are hooking to make up for cuts to  their housing allowance. "Stealing has 
already increased," noted another. If these predictions are correct some wel- 
fare recipients may end in jail rather than becoming independent members 
of society. 
Community workers in the inner city agree that crime is one possible 
offshoot of the welfare cuts. It is still too early to assess the long term effects 
of the cuts say both Karen Schulz, youth unit supervisor at the Boyle Street 
Co-op, and Scott Smillie, director of adult service at the Bissell Centre. 
"Prostitution appears to  be up already," said Schulz, who fears that break 
and enters, and muggings will follow this trend. Workers at the Bissell 
Centre have also noticed tempers becoming shorter. "People are expressing 
fears about being cut off,"said Smillie, "and that leads to  frustrations and 
fights." 
Smillie believes that people are finding temporary solutions to the cuts. 
"They are doubling up on accommodations," while others are leaving the 
province. He is concerned that this could drive the problem of poverty 
underground. This invisibility creates another difficulty for those on welfare. 
"People have to  speak out to  make changes to the welfare system," 
explained Dean, but they are afraid of negative repercussions, like being 
labeled a troublemaker or having their case closed. "Some mothers live in 
fear that their children will be taken if they report that they are unable to  
provide for them," said a Candora mother. Others are simply resigned to 
the problems of living on welfare. After a while you just give up because no 
one is listening when you tell them what is happening to those on welfare," 
said Gary, who has been on assistance and looking for steady employment 
since the summer. 
The role of advocating or speaking on behalf of those on welfare is the 
work of community agencies. However, the cuts have also hurt these groups. 
"Good staff are burning out," noted Sharon Laton, acting director of the 
Norwood Community Service Centre. Workers from the centre have watched 
helplessly as families break up under the stress of the cuts. "More appeals 
are being made t o  welfare, but the success rate has dropped," said Laton. 
Workers are finding that the only assistance they can offer is emergency 
relief in the form of food hampers, clothing, furniture, 01 help with a move. 
80 No. 33, 1994 
Canadian Review of Social Po1ic.y 
"TVorkers are finding that there is less they can do and less they can offer 
to people in real need," stated Schulz. "To be effective workers must always 
build on positives, but with the welfare cuts it is becoming more difficult 
to find the positives." At Operation Friendship, Rosalie Gelderman, client 
service coordinator, noted that the welfare cuts will lead to more difficult 
times. "Everybody likes to give around Christmas. The real crunch will 
not come until the new year when the generosity tap is cut off." 
1. When this article was written, Michael Hoyt was a fourth-year social work stu- 
dent with the University of Calgary, Edmonton Campus, serving his practicum 
with the Edmonton Social Planning Council. 
Supports for Independence (welfare) 
Change Highlights 
Utility connection, moving expenses, damage deposit - ONE TIME 
ONLY 
School supply allowance $25 per year per child, down from $50-$175 
per year for each child 
Shelter allowance down by $50 per month for singles and families; 
down by $100 per month for childless couples 
Standard allowance down by $26 per month for singles; down by $52 
per month for families 
AISH eligibility tightened- 3,000 targeted to move to SF1 
Students on welfare are transferred over to the Student's Finance 
Board for loans and payouts 
Supplementary benefits such as special diets or babysitting, are re- 
stricted or eliminated 
No room and board allowances for clients boarding with adult rela- 
tives 
Child recreation allowance was dropped from $220 per year lump 
sum to $108 per year in montnly installments and it's no longer 
specified for recreation 
No. 33, 1994 


Clients and agencies wrestling with SFI cuts

Campeau, Georges

Le budget Martin et l'assurance ch6mage : 
Conservateurs et Libkraux . . . mitme combat! 
Georges Campeau 
Dkpartement des sciences juridiques 
Universitk du Que'bec B Montrkal 
Ces mesures consternent les Libkraux. En rkduisant les prestations et 
en pknalisant davantage ceux et celles qui quittent volontairement leur 
emploi, il est Cvident que le gouvernement se prkoccupe trks peu des vic- 
times de la crise 6conomique. Au lieu de s'attaquer au fond du problkme, 
il s'en prend aux chameurs . . . (Le Trks Honorable Jean ChrCtien, dans 
une lettre adressCe le 25 mars 1993 & des opposants au projet de loi 
C-113) 
Une ann6e ne s'est pas encore kcoulke depuis cette prise de position de Jean 
Chrktien. Or,  les modifications au rkgime d'assurance-chbmage du budget 
du ministre Martin poursuivent les rkformes entreprises par les conserva- 
teurs en 1990. Non seulement, le gouvernement Chrktien maintient pour 
l'essentiel les mesures restrictives et coercitives adoptkes par les conserva- 
teurs, mais il accklkre le rythme des coupures. 
Affirmant vouloir prkserver l'intkgritk financikre de la caisse d'assurance- 
chbmage et ramener le taux des cotisations & son niveau de 1993 pour crker 
des emplois, le gouvernement resserre de nouveau les conditions d'admissibi- 
lit6 B l'assurance-ch6mage et rkduit la durke de la pkriode ainsi que le taux 
des prestations pour la grande majorit6 des sans-emploi. Nu1 doute que 
ces mesures se traduiront par un appauvrissement des chbmeurs et des 
chbmeuses, particulikrement pour les personnes ayant occupit des emplois 
prkcaires de courte durke. Dksormais, elles devront travailler plus longtemps 
pour se qualifier a des pkriodes de prestations plus courtes. 
Comment ne pas s'interroger sur la lkgitimitil de telles initiatives lors- 
qu'on sait que le dkficit actuel de la caisse d'assurance-chbmage est im- 
putable essentiellement & la nouvelle stratkgie du gouvernement f6dQal en 
matikre d'assurance-ch6mage. 
Enfin, ces mesures en disent long sur le processus de consultation amorck 
par le ministre Axworthy sur la rkforme des programmes sociaux. Aprks 
avoir dknoncit les actions de ses prkdkcesseurs, le gouvernement libkral con- 
tinue & ditmanteler un de nos plus importants rkgimes de sitcuritk sociale 
en affirmant que ces coupures ne prkjugent aucunement de la rkforme & 
venir . . . ? 
No. 33, 1994 
Canadian Review of Social Policy 
La rkforme de nos programmes sociaux est be1 et bien amorcke. Et 
pour l'assurance-chhmage, les dernikres modifications annonckes ne font que 
poursuivre l'oeuvre des conservateurs visant B harmoniser notre systkme 
d'indemnisation du ch a celui de nos voisins du Sud. 
Le budget Martin 
Les modifications au rkgime d'assurance-ch6mage contenues dans le dernier 
budget visent autant les cotisations que les prestations. 
Ainsi, l'augmentation de cotisations du ler janvier est rkviske et les 
augmentations statutaires prkvues pour 1995 et 1996 annulkes. Le taux des 
cotisations est ramenk au niveau de 1993, soit 3.00 $ par l00 $ de salaire 
pour les employks et 4.20 $ pour les employeurs. 
Les conditions d'admissibilitk aux prestations sont resserrkes, faisant 
passer le nombre minimal de semaines requises de 10 B 12 semaines. Ainsi 
la durke de la pkriode de prestations dkpendra dorknavant davantage du 
nombre de semaines travaillkes. Les changements apportks obligeront les 
prestataires & travailler pendant de plus longues pkriodes pour etre ad- 
niissibles au meme nombre de semaines de prestations. Actuellement, & 
A/Iontrkal avec un taux de chhmage de plus de 13%, 29 semaines de travail 
sont nkcessaires pour recevoir le maximum de 50 semaines de prestations. 
Le projet de loi fait passer ce nombre B 50. 
Les travailleuses et les travailleurs prkcaires ayant de courte pkriode 
d'emploi & leur actif verront leur pkriode de prestations sensiblement rkduite. 
Ainsi, une personne rksidant & Montrkal qui est licencike aprks 16 semaines 
de travail aura droit & 28 semaines de prestations alors qu'elle peut en 
toucher prksentement 39. 
Le taux de prestations sera rkduit de 57 5. 55% pour environ 85% des 
prestataires. Maigre consolation, les prestataires ayant des personnes & 
charge et dont le salaire est infkrieur a 390 $ par semaine, verront leur 
taux de prestations ramenk & celui antQieur a la rkforme de 1993, soit 60%. 
La prise en compte dans la dktermination du taux de prestations de la 
faiblesse des revenus et du statut familial, affaiblit le caractkre universe1 de 
l'assurance-ch6mage et tend & en faire un rkgime plus sklectif. 
Ce n'est pas moins de 5.5 milliards de dollars que le gouvernement 
lib6ral ira chercher dans les poches des sans-emploi au cours des trois pro- 
chaines annkes. C'est presque le double de la ponction rkaliske par le 
ministre Valcourt avec sa dernikre rkforme. La rkduction de la pkriode 
de prestations reprksente prks des 213 de ce montant. Or cette mesure sera 
durement ressentie par le segment de la main-d'oeuvre dkj& le plus affect6 
par la rkcession, soit les personnes ayant occupk des emplois pr6caires. 
No. 33, 1994 
Revue canadienne de politique sociale 
Ces mesures auront un impact important sur llappauvrissement. Ainsi, 
lors de la rkforme de 1990, un document interne du Ministkre de la Main- 
dlOeuvre et de la Skcuritk du Revenu kvalua.it a 10 000 le nombre de familles 
au Qukbec qui se verraient contraintes de recourir a l'aide sociale & cause du 
resserrement des conditions d'admissibilitk et de la rkduction de la pkriode 
de prestations. 
Enfin, les dispositions touchant le dkpart volontaire et l'inconduite, dont 
on avait tant parlk lors de la rkforme Valcourt, font l'objet de modifica- 
tions mineures. Cependant, la sanction demeure inchangke : ces personnes 
nlauront toujours pas droit aux prestations. 
Le pourquoi du deficit de la caisse 
Une des raisons avancke par le gouvernement libkral pour justifier ces mod- 
ifications est l'assainissement des finances de la caisse d'assurance-chbmage 
dont le dkficit cumulatif est actuellement d'environ 6 milliards de dollars. Le 
contexte kconomique difficile des dernikres annkes n'explique pas & lui seul 
l'existence de ce passif, loin de l&. I1 faut plutbt en chercher les raisons dans 
la politique du gouvernement prkckdent en matikre d'assurance-chbmage. 
Rappelons les grandes lignes de la rkforme des conservateurs de 1990. 
En plus d'augmenter les sa.nctions dans les cas de dkpart volontaire et 
d'inconduite, la loi C-40 resserrait les conditions d'admissibilitk et diminuait 
la durke des prestations. Mais le changement majeur de cette rkforme ktait 
la fin de la participation financihre du gouvernement fkdkral qui contribuait 
& la caisse d'assurance-chbmage depuis sa mise sur pied en 1940. Rappelons 
qu'en 1988, la contribution de 1 ' ~ t a t  s'klevait 8. 2.8 milliards de dollars, soit 
26% des frais de l'assurance-chbmage et qu'en 1989 la caisse gknkrait un 
surplus de 440 millions de dollars. 
Parmi les programmes alors assumks B m6me cette contribution fkdkrale 
mentionnons certaines rnesures dites productives, notamment les dkpenses 
likes & la formation. 
Le contexte du libre-kchange pourrait expliquer ce dksengagement sou- 
dain de la part du gouvernernent fkdkral. I1 n'y a pas irtk question de 
diminuer progressivernent une contribution aussi importante que 1 ' ~ t a t  as- 
sumait depuis le dkbut du rirgime, mais d'un retrait pur et simple. Or la 
participation financitre de 1 ' ~ t a t  faisait en;re autres klkrnents l'originaliti: 
de notre rkgime par rapport B celui des Etats-Unis. D'a.utant plus que 
l ' ~ t a t ,  en assumant une partie importante du financement du rkgime, se 
reconnaissait ainsi une responsabilitk a I'kgard du chbmage. 
Certes, malgrk le retrait de sa participation financikre, le gouvernement 
fkdkral demeure responsable du paiement des prestations lorsque la caisse 
est dkficitaire. Cependant, la loi prkvoit que le compte d'assurance-chbmage 
doit rembourser ces avances de fonds gouvernement. Evidemment ce 
84 No. 33, 1994 
Canadia,n Review of SociaJ Policy 
dksengagement financier de 1 ' ~ t a t  face au problkme du ch6mage ne pouwit 
6tre compensk que par des hausses de cotisations et/ou des coupures dans 
la protection du rkgime. 
Enfin, la rkforme de 1990 consacrait l'utilisation de sommes d'argent de 
plus en plus considkrables B des fins de formation et de rkemploi puisites B 
m6me un compte d'assurance-ch6mage dksormais privk de la contribution 
golivernementale. Dorknavant, jusqu'k quinze pour cent (15%) des dkpenses 
du compte d'assurance-chbmage pourront etre consacrkes au financement de 
mesures "actives." En 1993 ces dkpenses se sont itlevites B 2.21 milliards de 
dollars, soit 10.1% du budget global de I'assurance-ch6mage. Soulignons 
que le ditficit de la caisse d'assurance-ch6mage pour l'annke 1993 est estimk 
B 1.3 milliard de dollars. 
Rappelons que l'annonce de cette rkforme de l'assurance-ch6mage en 
avril 1989, survenait B peine un mois aprks la publication du Rapport du 
Conseil consultatif sur l'adaptation (Rapport de Grandprk). Considkrant 
la formation comme une responsabilitk de l'entreprise et constatant que 
le secteur privk canadien y consacrait par employk, moins de la moitik de 
ce que le secteur privk amkricain y consacrait, le rapport recommandait 
l'imposition d'une "taxe" de 1% sur la masse salariale des entreprises pour 
financer la formation. Plusieurs dirigeants des milieux d'affaires n'avaient 
gukre prise cette recommandation. 
Le gouvernement conservateur a prkfkrk opter pour une solution moins 
contraignante pour les entreprises. Les employeurs contribueront & la for- 
mation, mais par le biais de la caisse d'assurance-chamage, B laquelle ils 
cotisaient dkjB. Un des objectifs de cette stratkgie gouvernementale ktait de 
rkduire les facteurs de dksincitation au travail que comporterait le rkgime 
d'assurance-chbmage pour rkaffecter ces sommes d'argent aux nouvelles pri- 
oritks. Le ministre Valcourt devait le rappeler lors d'une r6union de 1'OCDE 
en janvier 1992 : 
Les mesures productives consistaient & affecter les Cconomies rkalisCes au 
titre des conditions plus restrictives d'admissibilitk B l'assurance-chbmage 
k des programmes de formation et de rkemploi plus efficaces et plus com- 
plets, destinks aux chbmeurs. 
Dans un tel contexte, on ne peut que s'interroger sur la lkgitimitk des 
coupures annonckes dans le budget Ma.rtin de la part d'un gouvernement qui 
ne contribue plus au financement B la caisse, et qui demande B ses assurks 
de rkduire le bknkfice de leurs prestations pour financer notamment des res- 
ponsabilitits qui ne relkvent pas des objectifs premiers du rkgime. D'autant 
plus que ce rkamknagement s'opkre au dktriment du soutien du revenu que 
s'attendent B recevoir normalement ceux et celles qui se retrouvent sans- 
emploi et qui ont cotisk & un rkgime visant B les indemniser dans une telle 
situation. N'oublions pas que des personnes ont k t k  kvinches du systkme et 
No. 33, 1994 85 
Revue canadienne de soliticrue socia,le 
le seront encore, et dans certains cas devront avoir recours & l'aide sociale, 
pour financer cette nouvelle orientation du ritgime. 
La rdduction des cotisations va-t-elle crder 40 000 emplois? 
Le document d'information sur les modifications soutient que la rkduction 
du taux de cotisation allkgera sensiblement le fardeau financier des en- 
treprises et permettra d'ici la fin de 1996 la crkation de 40 000 emplois 
de plus que si l'on avait permis une hausse du taux de cotisation. Au- 
cune explication n'est fournie sur la mkthode utiliske pour en arriver & un 
tel rksultat. D'ailleurs, cette conclusion apparait pour le moins ktonnante 
compte-tenu que bon nombre de petites et moyennes entreprises ont pu 
bknkficier en 1993 d'un crkdit d1imp6t correspondant & leurs augmentations 
de cotisations . . . patronales. 
Rappelons qu'en plus de rkduire le taux de prestations de 60 & 57% et 
de supprimer les droits dans les cas de ditpart volontaire et d'inconduite, le 
budget de dkcembre 1992 du ministre Mazankowski prkvoyait un montant 
de 495 millions pour dkfrayer les augmentations de cotisations de certains 
employeurs pour les exercices 1992-1993, 1993-1994, 1994-1995. Le min- 
istre prkvoyait que 95% des entreprises canadiennes seraient admissibles 
& ce programme dont l'objectif ittait . . . la crkation d'emplois. Le budget 
prkcisait que ce serait le gouvernement et non la caisse d'assurance-ch6mage 
qui financerait une telle mesure. 
Ainsi, les entreprises dont les cotisations annuelles & l'assurance-ch6mage 
sont infkrieures 8. 60 000 $ sont admissibles & un crkdit d1imp6t pour cou- 
vrir leurs augmentations de cotisations & l'assurance-chijmage, jusqu'h un 
maximum de . . . 30 000 $. Comme ce crkdit d'imp6t s'applique toujours, 
il est pour le moins surprenant qu'on invoque de nouveau la rkduction des 
cotisations pour crker des emplois. Peut-6tre le ministre pourrait-il nous 
informer sur le nombre d'emplois crkks griice & ces subventions? 
Dr6le de rkgime d'assurance-ch6mage oc le gouvernement n'a pas d'ar- 
gent pour verser des prestations aux sans-emploi mais trouve les ressources 
nkcessaires pour dkfrayer les cotisations de certains employeurs au rkgime! 
La rdforme de la sdcuritd sociale est commencde 
Contrairement au ministre Martin affirmant que son budget posait la pre- 
mikre pierre d'une rkfonte de la skcuritk sociale dans deux domaines impor- 
tants dont celui de l'assurance-chBmage, le ministre Axworthy soutieit que 
ces changements & l'assurance-chbmage ne pritjugent en rien de la rkforme 
de la skcuritk sociale . . . ? 
No. 33, 1994 
Canadian Review of Social Policy 
Comment croire un gouvernement qui justifie maintenant des coupures 
dans le rkgime d'assurance-ch6mage qu'il dknon~ait pourtant avec tant de 
vigueur il n'y pas si longtemps encore? 
En effectuant des modifications d'une telle ampleur & l'un des prin- 
cipaux rkgimes de skcuritk sociale au Canada, le gouvernement Libkral ne 
peut que nous faire douter du skrieux du processus de consultation "rapide" 
du ministre Axworthy. 
Qu'on ne s'y trompe pas, la rkforme de nos programmes sociaux est be1 
et bien commencke et les modifications B l'assurance-ch6mage en sont une 
dkmonstration kloquente. Ces mesures ne font que poursuivre et accklkrer 
un processus amorck par les conservateurs et qui vise B rendre notre systkme 
d'indemnisation du ch6mage semblable au rkgime amkricain. Ainsi, nous 
pouvons constater que notre rkgime d'assurance-ch6mage se rapproche pro- 
gressivement du modkle amkricain, oh dans la plupart des ~ t a t s  le taux de 
prestation est de 50% et la norme minimale d'admissibilitk de vingt (20) 
semaines. En poursuivant la rkduction des prestations de la majoritk des 
prestataires B 55%' les libkraux poursuivent le mouvement amorck par les 
conservateurs. En augmentant la norme d'admissibilitk B 12 semaines, ils 
dkbutent & leur tour un processus qui nous rapprochera progressivement de 
la norme des vingt (20) semaines. 
D'ailleurs la Commission Terre-Neuvienne chargke par le gouvernement 
Wells d'ktudier les rkgimes de skcuritk du revenu, recommande que la norme 
d'admissibilitk B l'assurance-ch6mage soit portke & 20 semaines pour une 
durke maximale de 35 semaines de prestations. Les personnes qui dorknavant 
ne pourraient plus se qualifier B l'assurance-chbmage devraient avoir recours 
& un rkgime de supplkment de revenu oh les prestations seraient financkes 
notamment par . . . les cotisations de l'assurance-chbmage. 
On nous avait promis un budget kquitable oh chacun serait appelk & 
faire sa part. Or, ce gouvernement comme le prkckdent demande encore 
aux victimes de la crise kconomique de faire les frais d'un systkme qui les 
protkge de moins en moins. 
No. 33, 1994 


Le budget Martin et l'assurance chômage: Conservateurs et Libéraux . . . même combat!

Richard, Brenda K.

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