The Federal Government’s 2009 Budget includes measures of interest to labor organizations and employers across Canada. On February 6, 2009, Bill C-10, the Budget Implementation Act, 2009, was introduced in the House of Commons, which, if passed, will give effect to some of the proposed measures. Among other things, the Bill will amend the Employment Insurance Act to extend the regular benefit entitlement by five weeks until September 11, 2010, and freeze EI premium rates at $1.73 per $100 for 2009 and 2010. The Bill will also amend the Wage Earner Protection Program Act and Regulations to include severance and termination pay as unpaid wages recoverable under the WEPP. Currently, these payments are not covered under the program.
In addition, Bill C-10 will enact the Expenditure Restraint Act, which will set out rules governing increases to the rates of pay of both unionized and non-unionized federal public sector employees for the period from April 1, 2006 to March 31, 2011. The annual wage increase for affected employees will be 2.3% in the 2007-08 fiscal year for the following three fiscal years.
Finally, Bill C-10 will enact the Public Sector Equitable Compensation Act, which will require public sector employers of non-unionized employees to periodically determine whether any equitable compensation matters exist in the workplace, and if so, implement a plan to resolve them. Public sector employers of unionized employees will be expected to resolve those matters through the collective bargaining process.