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The Minister of Finance has heard us and is taking steps to limit EI premium increases in 2011. EI premiums would have increased to the maximum legislated limit of $0.21/$100 of payroll for employers without government intervention. Instead, premiums will increase $0.07/$100 of payroll.

CRFA warned government that jobs would be lost and measures to stimulate economic recovery would be for naught, if payroll taxes were increased by that magnitude. Even a $0.07 premium increase is a $100-million hit on foodservice operators.

The government introduced other measures to limit EI increases by announcing the maximum increase permitted by statute will be reduced from $0.21/$100 of payroll to $0.14/$100 of payroll. This announcement needs to be accompanied by a commitment from government to contribute to the EI fund from General Revenue, to avoid further increases in the EI fund deficit compounding future employee and employer obligations.

The government also announced it would undertake consultations on how the EI rate-setting mechanism can be improved to ensure more stable, predictable rates going forward.