Why it's not easy to escape EI 'black hole'

The federal solution to the unemployment insurance problem in New Brunswick has done little to ease frustrations of seasonal workers.

More than 200 people came from different areas of the province to take part in yet another protest this week this one in front of the constituency office of federal minister DominicLeBlanc.

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Ottawa gave $10 million to New Brunswick in its recent federal budget for atraining and work experience programthat would essentially allow workers to continue collecting EI benefits during the "black hole" period between now and June.

But by the looks of Wednesday's protest, many more were interested in taking to the streets than going back to school.

Only about 20 to 30 peoplesigned up for the program, out of an estimated 40,000 seasonal workers on EI in the province.

Many of those interviewed on the streets saidthey're simply too old or not interested in learning new skills.

Instead, they would like to see the EI formula recalculated so they have benefits all winter or for there to be more opportunities in their own line of work.

So what's the 'black hole'?

The so-called "black hole" is the gap between when a seasonal worker's employment insurance benefits run out and when the worker's job starts up again.

The amount of insurance the workers get will depend on the number of hours worked.The more hours worked, the longer the EI benefits will last.

For instance, those who worked in the fishing industry in the Acadian Peninsula last summer had to work a minimum of 14 weeks, or just over threemonths, to qualify for EI.

But those who managed to find only 14 weeks of work received benefits for 23 weeks, based on the program's formula. That meansthey're without income, or in the black hole, for 15 weeks, or about three and a half months,before the next season starts and their wages resume.

Steven Hughes ofLamqueovercame the black hole by stringing together several jobs.

He worked as a deckhand on a snow-crab fishing boat from April until mid-July, then took out his own fishing boat to catchhalibut in July and herring and rock crab in the fall, which kept him working until November.

He worked about 26 weeks, and was actually able to qualify for more insurance than he would need before being called back to work.

But Hughes said not everyone in the Acadian Peninsula can find as much work.

He said those who work in the processing plants have been the worst off, and he expects next winter to be even more dire, with snow-crabprocessing being the main employer in the area.

"The government is pushing us as fishermen to have the fishing season endbefore the right whales arrive on the fishing ground," said Hughes, referring tomeasures announced to protect the endangered mammal after a historically devastating summer for North Atlantic right whales.

"We're talking maybe a four, five-week season.That's going to be affecting the people who work in the fish factory. Theywon't have enough weeks to qualify for EI."

To make matters worse, said Hughes, the minimum number of weeks of work to qualify for EI will go up to 16 weeks next year from 14.

"Everybody is very worried," he said.

"In the Acadian Peninsula, we all depend on the fishing industry. If there's less EI to go around, the people who run the stores won't be able to sell as much as before. The whole economy is going to be going down."

Better economy, fewer benefits

The reason seasonal workers throughout the province aregetting fewer EI chequesthis year is essentially because the economy is better.

The weeks-to-benefits formula is basedon the unemployment rate, with the logicthat lower unemployment means it's easier forseasonal workers to find work in the off-season.

Unemployment has gone down in New Brunswick in the past year, and even up north many employers say they're having a hard time finding workers to fill vacancies.

According to experts, that's why there's an issue this year.

"The EI system was set up at a time where you had chronic high unemployment," said David Campbell, an economic development consultant.

"And now you've got a situation where there's lots of industries struggling to find workers, even in these areas that have high unemployment," he said. "So it's a bit of a weird paradox. So in the long run, we have to reform the system so that it encourages people to work in the jobs that are available in their region."

Others, like Hughes, believethe solution is to create more work opportunities in the fishing industry.

"Entrepreneurs and the governmenthave to sit hand in hand to basically create an economy that's 16 weeks," said Hughes.

But in the meantime, those who are angry are showing no sign of slowing down, with aprotest already planned for next week.