ALF V1

Thousands of jobs will continue to be lost down the pipeline as a result of government's failure to adopt more aggressive policies

The Alberta government has finally added flesh to the bones of its long-promised Bitumen Royalty In-Kind (BRIK) program - but one of the province's strongest proponents of an Alberta-first oil-sands policy says the program doesn't go nearly far enough to keep value-added energy jobs in the province.

"Since becoming premier, Ed Stelmach has promised new policies that would stop valuable jobs in oil-sands upgrading and refining from being shipped down the pipeline to places like the U.S. Midwest and Gulf Coast," says Gil McGowan, president of the Alberta Federation of Labour.

"Now, after two long years of waiting, we're finally seeing the plan: but frankly, it's deeply disappointing. The government's rhetoric on this issue has been big, but the program they've delivered is shockingly small."

McGowan points out that the 75,000 barrels per day of raw bitumen that will be made available for Alberta-based upgrading under the program is little more than a drop in the bucket compared to total oil-sands production.

"It represents only 6.25 per cent of the 1.2 million barrels per day produced from the Alberta oil sands each year," says McGowan.

"If this is all the Stelmach government has to offer when it comes to policies to promote value-added development in the oils sands, then Albertans should get used to losing refining jobs to the U.S. - because this program is not going to turn the tide. The government is letting Albertans down by setting their sights far to low. Their lack of ambition is truly frustrating and disappointing."

McGowan says the 75,000 barrels per day of bitumen collected under the BRIK program will, at most, provide feedstock for one new upgrader - and a small one at that. Comparisons with the capacity of existing upgrading facilities put the government's promised bitumen reserve in perspective: Syncrude currently processes 300,000 barrels of bitumen per day; Suncor processes 275,000 barrels and Albian Sands-Shell Scotford processes 155,000 barrels.

"The small scale of the BRIK program underlines the weakness of using the royalty system as the government's only tool to address the problem," says McGowan. He says what's really needed are more aggressive policies: like export restrictions, conditional lease agreements for companies working in the oil sands and even the creation of a crown energy corporation to spearhead the construction and operation of Alberta-based upgraders and refineries.

McGowan says these kind of policies are needed to deal with the "new generation" of oil-sands developers (companies like Encana, Conoco-Phillips, Husky and Exxon) who are planning to export most of their raw bitumen to the U.S. for processing, as opposed to the "older generation" of developers (companies like Suncor, Syncrude and Shell) who traditionally have done their upgrading in Alberta.

McGowan says more aggressive policies like the ones he favours are actually nothing new for Alberta. They were used successfully by the Lougheed government in the 70s and 80s to create a value-added petrochemical industry - one that had not existed before and which continues to contribute billions of dollars to the provincial economy every year.

"We were hoping the Stelmach government would learn lessons from the Lougheed era," say McGowan. "But, if this is all that they have up their sleeves, it's clear that this latest version of the Conservative government is a pale imitation of the original."

McGowan concluded by saying that even if the BRIK program is successful in kick-starting one small upgrader, it won't do anything to move the province toward the more ambitious goal of refining a greater proportion of our oil into more valuable products like gasoline, diesel and jet fuel.

"The program sets its sights too low both in terms of volume and in terms of how high the government wants to climb the value ladder," says McGowan. "If this is all the government has to offer, then basically what they're saying is that they're content for Alberta to remain stuck on the bottom few rungs of the value ladder. I think most Albertans aspire for something bigger and better."

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For more information call:

Gil McGowan, AFL president @ (780) 218-9888 (cell)

The new federal-provincial task force on pensions meets in Calgary today. The Alberta Federation of Labour is concerned that the task force will not focus on real changes that protect people's pensions and ensure adequate retirement income.

"The Task Force has come to the wrong province to launch their investigation if they're looking for the right answers on pension reform," says Nancy Furlong, Secretary Treasurer of the Alberta Federation of Labour. "The Alberta and B.C. governments have been pointing us in the wrong direction. Their proposed ABC Pension Plan is a meager supplemental program that employers can simply opt out of and which shifts all the risks onto the shoulders of individual Canadians. We've seen the terrible impact that fluctuation on the global equity markets can have on such plans and on workers and their families."

The Alberta Federation of Labour's actuarial analysis of the ABC Pension Plan has revealed striking flaws: the proposed plan, even when added to existing benefits provided by CPP and OAS, would generate as little as 14 per cent of pre-retirement income for individuals enrolled in the plan, which falls far short of the recommended threshold of 70 per cent. Furthermore, employers are allowed to opt out and even those who join the plan wouldn't be required to match the contributions made by individual employees. Finally, the ABC Plan would be a defined contribution plan, rather than a more secure defined benefit plan. Defined contribution plans are more risky because the value of the benefits can be significantly lower than expected, particularly in economic downturns and periods of increased inflation.

"Instead of simply sticking on a band-aid, like the ABC voluntary supplemental plan which lures Canadians into a false sense of security, the federal-provincial task force should commit to a significant expansion of the Canadian Pension Plan. The CPP is easy to reform and improve and is available to all Canadians," says Furlong.

If the task force does consider plans to supplement the CPP, it should insist that participation is mandatory. Otherwise, employers will continue to simply opt out or cut back contributions.

Improvements must also be made to protect private sector pensions. The Alberta Federation of Labour calls on the task force to examine legislation that will protect these plans and ensure that workers get what they bargained for. In particular, legislation should include insurance that protects Canadians from the fallout if their pension plans go bankrupt.

The Alberta Federation of Labour believes that the task force should make the pension reform debate public and open to all stakeholders, starting the process with a national summit on pension reform.

"It is high time that we take a good look at how to best provide retirement income to Canadians. And what we need is a cohesive system, like significant improvements to CPP that makes a guarantee to Canadians that they won't face the prospect of living in poverty in their old age," says Furlong. "The federal-provincial taskforce shouldn't be fooled by the ABC plan's promises."

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For more information call:

Nancy Furlong, AFL Secretary Treasurer @ 780-483-3021 (office); 780-720-8945 (cell)

With construction of its oil sands upgrader stalled, Suncor Energy Inc. SU-T said Wednesday it plans to sell unprocessed bitumen to U.S. refiners, whose strong demand for Canadian heavy oil has sent prices soaring in recent months.

But with little more than a week remaining until he takes the reins of the newly merged Suncor, chief executive officer Rick George remained coy on how long the company would take to bring to life its 200,000 barrel-per-day Voyageur upgrader expansion, which is designed to process the bitumen it produces. Voyageur was scheduled to be built by 2012, but construction was halted in January.

Work has already begun to prepare for resumption of another halted Suncor project, its Firebag 3 oil sands plant, which was half-built when workers were called away in January amid a dramatic move to slash capital spending. Suncor has authorized contractors to finish building a camp and administration building, ahead of an expected green light for that project, which is likely later this year.

And Mr. George said the company will be able to switch on the Voyageur expansion in short order when it so chooses. But, he told analysts on a second-quarter earnings call Wednesday, "initially, we want to be bitumen long."

That means the company intends to produce more bitumen than it is capable of upgrading, turning instead to U.S. refiners to do work it has traditionally done itself. Voyageur will be restarted at some point, but not until Suncor, which is scheduled to complete its merger with Petro-Canada PCA-T by Aug. 1, has a chance to evaluate where it fits in among its broad suite of projects, Mr. George said.

An upgrader is a kind of pre-refinery that takes the thick, heavy oil sands bitumen and transforms it into a product capable of being made into end products like gasoline.

"There's no need to build the upgrader if there's no bitumen to fill it," Mr. George said. "We continue to see very good pull from customers in the U.S. refineries for heavy oil from Canada. So I expect that to be a fairly good strategy over the next four or five years."

Significant drops in heavy oil exports from Venezuela and Mexico have left U.S. refiners scrambling to fill their capacity, driving up the price for a commodity that used to trade at a 30 per cent discount to light crude oil. In recent months, heavy oil has halved that gap, and on at least one day earlier this month was worth more than light crude – a circumstance some observers have never before seen.

Strong heavy oil pricing damages the profitability of upgraders. Still, contractors and business leaders in Fort McMurray have long expected Voyageur to resume construction in coming months. But Mr. George did not make clear whether he intends to restart Voyageur soon – it will take at least three years to finish building it – or whether the project will be delayed.

"We haven't determined yet when we will restart it," he said.
But BMO Nesbitt Burns analyst Randy Ollenberger said Mr. George may be "making a straight bet that he's going to make more money as a bitumen producer and pushing [Voyageur] off."

"He seemed to be backing away from [Voyageur]," Mr. Ollenberger said. "I'd be very surprised if they don't complete it [at some point]. I think it's more a question of timing. And maybe it makes more sense for them to remain a bitumen producer for the next five or six years, so defer that capital until it makes more sense."

That prospect angers labour groups, who see the export of unprocessed bitumen as the export of provincial jobs.

"If a stalwart energy company like Suncor is thinking of heading south, then chances are that almost all other energy companies are having similar thoughts," said Alberta Federation of Labour president Gil McGowan. "And frankly, that's bad news for everyone who works in the energy sector."

Still, others believe Suncor could simply export bitumen from its expanding oil sands operations during the time it builds Voyageur – a prospect that would leave its original plans little changed.

"They'd still have to sanction [Voyageur] in short order to get it on stream in the next four-year time frame," said UBS Securities analyst Andrew Potter.

Globe and Mail, Wed July 22 2009
Byline: Nathan VanderKlippe

Premier Ed Stelmach's declaration that there will be no tax hikes during his reign has some people bracing for brutal cuts to programs and services if the faltering economy does not quickly turn around.

While the premier suggested most provincial government departments can stand a "haircut," some groups fear the governments could be forced to axe programs or cut or freeze wages to balance the books.

Economist Jack Mintz said the financial picture is likely going to be worse than the forecasted$4.7-billion deficit. That's because natural gas prices are two dollars less than the budget estimate. For every 10 cents the price falls below the estimate, $126 million is lost.

"I wouldn't be surprised if we're looking at a deficit of more than $7 billion," he said. "There's more downside than upside risk."

Mintz, who teaches at the University of Calgary, said this year's deficit alone could eat up nearly half of the province's savings.

Liberal MLA Hugh MacDonald said the government will have to conjure up some magic to balance the budget without tax hikes. The Liberals tried unsuccessfully to introduce amendments that would have cut nearly $50 million from the budget.

"The government is not going to find $2 billion under a mattress somewhere," Alberta Federation of Labour president Gil McGowan said. "If they want to balance their budget with cuts alone, there will be deep cuts and they will have a huge impact. "

McGowan said such cuts may balance the books in the short term, but will cripple programs for years.

"It's bad news for those who represent public-sector workers and it's bad news for all Albertans. A return to Klein-style cuts is not in anyone's best interests."

Alberta Treasury Board president Lloyd Snelgrove predicted earlier this week that if tax increases were off the table, there would have to be a cut of at least 15 per cent to health care, education and social programs, and infrastructure spending would have to be cut 30 per cent. But Snelgrove was much more optimistic Wednesday after the premier made his declaration there would be no tax increases.

"We have to really sharpen our pencils," Snelgrove said. "We need to go back. We'll be sending targets out to the different departments sooner than later."

He said the government was "spending a little too much," but it now had to be careful it didn't cut too deeply. "We don't want to swing the pendulum past the point where we do damage to what in many cases are very good systems."

The Canadian Taxpayers Federation says cuts can be made without destroying programs.

"This is the biggest spending government in Canada, next to Newfoundland, on a per-capita basis," said Alberta director Scott Hennig.
"I don't think other provinces live in constant chaos just because they don't spend as much as we do."

Grant MacEwan political studies expert Chaldeans Mensah said Stelmach is taking a big risk with his vow not to increase personal or corporate taxes. In the short term, the promise will shore up the premier's support among fiscal Conservatives, with a leadership review looming this fall, Mensah said.

"In a sense, he has boxed himself into a corner and he has to be hopeful that economic conditions improve," Mensah said. "This will be a very telling moment for Ed Stelmach. He has set the stage for what will be a clear basis for judging him and making a very definitive judgment on his performance."

NDP MLA Rachel Notley called the vow "a blatant political ploy."

She added that Stelmach's decision to reverse the liquor taxes in the April budget that would have brought in $180 million was "incredibly irresponsible and thoughtless."

David Eggen, executive director of the Friends of Medicare, said Stelmach is "playing a dangerous game" and every cut he makes to social programs will be measured against his decision to reverse the tax on liquor. "He is lowering alcohol taxes when seniors will be paying more for prescriptions next year," he said. "It seems like he doesn't have his priorities straight."

Edmonton Journal, Thurs July 9 2009
Byline: Darcy Henton

Premier Ed Stelmach is ruling out any tax increases to balance the budget.

And to prove the point, he's rescinding a tax on liquor, brought in just a few months ago, that boosted the price of a dozen beer by $1.30, and a bottle of spirits by $2.89.

But, an Alberta labour leader isn't impressed. Gil McGowan, the president of the Alberta Federation of Labour, fears Stelmach's inflexible position could spell massive job cuts across the province.

iNews880.com, Wed July 8 2009

CALGARY - Alberta Premier Ed Stelmach is laying down the law when it comes to raising taxes in the province - saying now and forever, the answer is no.

Faced with mixed messages from his own cabinet and rampant speculation about how the government will curb a soaring deficit, he said Tuesday that while he's in charge, any budget shortfall won't come from taxpayers or businesses.

"As long as I'm premier of this province, there will be no tax increases, simple," he said following a cabinet meeting. "You cannot tax your way out of a recession, and we're not going to do that."

That promise applies to both corporate and personal taxes, as well as to the idea of introducing a sales tax in the province. The government is even rescinding a tax on liquor, brought in just a few months ago, that boosted the price of a dozen beers by $1.30 and a bottle of spirits by $2.89.

The rollback will cost $180 million annually but it's the right way to go to prove the point, said Stelmach.

"It was something that I had a hard time agreeing with, it's been bothering me all that time," he said. "When we say no tax increases, it's no tax increases, period."

An increase on cigarettes brought in at the same time as the liquor tax will stand for now because it's tied up in health and gang issues that go beyond a normal tax, he said.

The head of Alberta's largest union said he feared Stelmach's inflexible position could spell massive job cuts across the province.

"We're deeply disappointed by the premier's comments, because they signal a return to the bad old days of (former premier Ralph) Klein cuts, and that's not good for anyone in the province," said Gil McGowan, president of the Alberta Federation of Labour.

Klein cut thousands of jobs to help pull the province out of debt during the 1990s during the last recession, creating a shortage of health-care workers that is still felt in the province today, said McGowan.

"Hearing the premier's comments today frankly has dashed our hopes," he said. "All that's left, if he's going to take that kind of inflexible position, is a return to deep cuts."

While hiking taxes should be a last resort, it should still be an option for a government to consider, said Alberta Liberal finance critic Dave Taylor.
Many people have suggested that a funding shortfall would have to be balanced by both raising taxes and government job cuts. Cutting out taxes doesn't leave many other options, said Taylor.

"Apparently that can only mean spending cuts now. And we know that the last time the Conservatives went on a slash-and-burn spending cut exercise that they did a lot of damage."

Even more confusing is the reversal on the liquor tax, he said.
"Well, sir, you were the premier. It was on your watch that this tax increase happened. If you weren't in favour of it from the get-go, why did it ever happen?"

The day after releasing the April budget, Finance Minister Iris Evans suggested raising taxes hadn't been ruled out to help deal with an anticipated $2 billion shortfall. Other ministers have echoed that suggestion in recent days.

"I've got a list of quotes from various ministers who have been saying since April, since the day after the budget that they're going to be looking at tax increases, they absolutely have to look at increases, we're going to be seeing it coming, it's likely to happen," said Scott Hennig, director of the Canadian Taxpayers Federation.

Hennig added he's thrilled to see the premier make such a blanket statement, but now wants to see the government cut wasteful spending to make up the shortfall.

"This is the most bloated, biggest spending government in Canada - second only on a per-person level to Newfoundland."

The premier acknowledged the province is facing tough economic times amid low commodity prices and a global financial crisis.

The government ran an $852 million deficit last fiscal year, and at least one finance spokesman has conceded there could be up to a $7 billion shortfall this year.

But Stelmach said the way to deal with the recession is to offer incentives to companies, not for the government to collect more money through taxes.

"We have to continue to work to reduce the cost of doing business in the province. That's the way you build Alberta's future and I can tell you Albertans expect confidence and stability in these very, very difficult economic times, and that is my focus."

Stelmach also introduced changes to the provincial Crown bank ATB Financial that will let it expand its lending capacity by up $15 billion, guaranteed by the government.

The premier said he's made his position on taxation clear to his entire cabinet and also wants municipalities to know they shouldn't rely on the government to take in any extra money.

"This will send a message to other levels of government - start tightening up your budgets."

AM1150, Tues July 7 2009
Shannon Montgomery

EDMONTON, July 7, 2009 /PRNewswire via COMTEX News Network/ --
On June 30, 2009, an action was commenced in the Court of the Queen's Bench of Alberta, Judicial District of Edmonton by Gil McGowan on his own behalf and on behalf of all of the affiliates of the Alberta Federation of Labour, Terry Jardine on his own behalf and on behalf of all of the members of the Canadian Union of Public Employees, Local 30, and Leo Derkach on his own behalf and on behalf of all of the members of Civic Service Union 52, making claims relating to Capital Power Corporation's proposed initial public offering and related transactions.

The claim names The City of Edmonton, EPCOR Utilities Inc. and Capital Power Corporation as defendants and alleges, among other things, that certain purported actions taken by the City of Edmonton in connection with the proposed initial public offering were outside the jurisdiction of the municipality under the Municipal Government Act. Based on its review of the available information, Capital Power Corporation believes that this claim is without merit and intends to vigorously defend itself.

This communication does not constitute an offer of securities for sale in the United States, and the securities referred to in this communication may not be offered or sold in the United States absent registration or any exemption from registration.

About EPCOR
EPCOR's wholly-owned subsidiaries build, own and operate power plants, electrical transmission and distribution networks, water and wastewater treatment facilities and infrastructure in Canada and the United States. EPCOR, headquartered in Edmonton, Alberta, has been named one of Canada's Top 100 employers for nine consecutive years, and was selected one of Canada's 10 Most Earth-Friendly Employers.

Stockhouse.com, Tues July 7 2009

A single stock issue in June by a company new to the TSX was the first initial public offering (IPO) since mid-2008, PricewaterhouseCoopers said Tuesday.

The $500 million IPO by Capital Power Corp. of Edmonton doesn't show the IPOs are bouncing back, but may be one of several "hopeful signs" for the market, Ross Sinclair, leader of the consulting company's income trust and IPO services, said in a news release.

"We're starting to see the market regain some of its appetite," he said. "The volumes are still very small but the Capital Power issue, along with some significant activity in secondary equity offerings and debt issues across the markets, point to a level of financing activity that has been absent for some time."

In fact, two other IPOs closed Tuesday, but missed the PricewaterhouseCoopers' report, which covered the first half of the year.
About $850 million worth of stock in mortgage insurer Genworth MI Canada Inc. began trading Tuesday. Most of the shares were sold by its U.S. parent company.

Issued at $19 each, the stock slid 61 cents to $18.39.

Magma Energy Corp., a geothermal power company, said it raised $100 million selling stock at $1.50 a share. It fell two cents to $1.48.
Companies that are not publicly traded are considering IPOs, and investors, looking for better returns than the low interest rates on bonds, are becoming more open to equity issues, Sinclair said.

The Capital Power issue was sold at $23 a share and began trading on the TSX on June 26, exchange data show. It has dropped since, falling 60 cents to $21.05 Tuesday.

Capital Power, an electricity generating company spun out of Epcor, the utility owned by the city of Edmonton, was the only TSX IPO in the second quarter this year and first since the comparable period on 2008, PricewaterhouseCoopers said.

Including the TSX junior venture exchange and "other" issues, total IPOs were $514.8 million in the quarter.

There were seven TSX IPOs worth $434 million in the second quarter of 2008.

The figures do not include issues of stock by companies which were already publicly traded, and do not include mutual funds — which raise money to invest in existing listed companies — which have come bounding back in the second quarter of 2009 after sagging at the end of 2008 and the first quarter of 2009.

Capital Power will use the money raised to buy Epcor's power generation business, including its 30.6 per cent interest in Epcor Power LP. Epcor has about 3,300 megawatts of owned and/or operated generation capacity at 31 plants in Canada and the United States.
The Alberta Federation of Labour has tried to block the sale legally, but failed, Epcor said.

CBC News, Tues July 7 2009

CALGARY- When Heather Eide applied for employment insurance, she didn't expect she'd have to wait more than two months.

At 23, she had never been laid off before. She was a full-time administrator at a pension company in Calgary until mid-March and thought she'd find a new job easily.

But with Alberta's economy sinking deeper into recession, Eide, a single mother of a toddler with no savings to help her, soon found herself evicted from her rental home, dependent on handouts from her family until her first unemployment cheque arrived.

"Ten weeks was way too long to wait. How is anybody going to survive?" she said.

Aside from financially straining laid-off workers, Employment and Immigration Minister Hector Goudreau said Alberta's average 10-week wait--among the longest in the country--is putting pressure on provincial coffers, as more and more people without savings are turning to the welfare system for relief.

I n April, 523 Albertans waiting for EI were granted aid from Alberta Works welfare program, a 120 per cent spike from 238 in December. The federal government eventually reimburses the province for these funds.

"There is no reason why it should take 10 weeks. That's not acceptable," Goudreau said.

The length of time jobless Albertans are waiting for employment insurance is one of several reforms the provincial government is seeking to an "inequitable" federal program.

In a sense, the province's unprecedented economic growth, which stalled only months ago, is now handcuffing jobless Albertans.

Long EI waits are mainly due to federal government staffing levels based on boom-time jobless rates below four per cent. Ottawa is attempting to address this issue by adding staff and processing Albertans' applications in other provinces, but Goudreau said it's too soon to tell whether the delay is easing. (Human Resources and Skills Development, the federal department responsible for EI, did not respond Friday to questions about the delay.)

While the EI wait is frustrating many unemployed Albertans, a larger number of them don't even qualify for the insurance program funded by employers and employees.

Jobless Albertans, who face tougher eligibility rules than almost anyone else in the country because of the province's relatively low unemployment rate, are least likely to receive EI, according to statistics compiled by the Alberta Federation of Labour.

Of the 123,000 unemployed Albertans in March, only about one-third are receiving insurance benefits, compared to 46 per cent in British Columbia, 57 per cent in Quebec, and more than 90 per cent in Prince Edward Island and Newfoundland.

Meanwhile, Alberta's jobless rate has risen rapidly since the global economic downturn hit. In May, the rate jumped to 6.6 per cent, the highest level since October 1996 and a stark increase from 3.7 per cent in October.

The number of Albertans relying on the province's welfare program is also growing, to 34,143 in May, a 27 per cent increase from October.
Provincial disgruntlement with the federal EI program has been strongest in the West, while on the federal political stage, the Liberals have threatened to force an election over the issue.

Days after the Harper Conservatives and the Ignatieff Liberals agreed to create a working group to examine Canada's employment insurance system over the summer, a package of proposed reforms surfaced from Western premiers and territorial leaders at their annual meeting, held last week in Dawson City, Yukon.

They want the EI program streamlined from 58 regions to three -- urban, rural and remote -- and are calling for more equitable support regardless of where people live.

Currently, laid-off workers in regions with higher employment rates require more hours on the job to qualify for benefits than those living in areas with worse employment prospects.

The range varies from 420 hours to 700 hours. The length of EI payments also hinges on employment rates.

Premier Ed Stelmach views the system as a "transfer of wealth out of the West to Eastern Canada."

"Today there's quite a difference between the number of hours worked to qualify for EI in Eastern Canada compared to Western Canada, so that is a disparity," he told a radio talk show on Friday.

"An employed family is equally unemployed, whether they live in Nova Scotia, Quebec or in Alberta."

Last week's decision to create a federal EI working group concerns the Canadian Federation of Independent Business.

Spokesman Dan Kelly said small businesses want the federal opposition parties' proposal for a national eligibility standard of 360 hours off the table.

Kelly contends lowering the EI threshold will discourage unemployed people from looking for work or moving to regions with better job prospects, potentially exasperating labour shortages in the future.
The business group also has reservations about the Conservative government's desire to extend EI payments to self-employed Canadians.

"From a practical level, how is that even workable? How can you lay yourself off?" Kelly questioned.

Goudreau shares some of Kelly's reservations about potential EI reforms, saying a balance must be struck.

"We don't want to make employment insurance so good and so readily available that people don't want to go to work," Alberta's employment minister said.

Alberta Federation of Labour president Gil McGowan dismisses this notion, however. Given the choice between working or drawing on temporary EI benefits, McGowan believes most Canadians would choose to work.

McGowan supports adopting a 360-hour national standard. The union also wants the ceiling on benefits raised to 70 per cent of an employee's earnings.

"These are not handouts. This is money workers have set aside themselves to help through hard times," McGowan said.

"The problem is not that the benefits are too generous. The problem is there are not enough jobs to go around."

In Calgary, the city's growing ranks of jobless workers can be felt at the Calgary Workers' Resource Centre.

The centre helps workers file claims and appeals for employment insurance, worker compensation and human rights abuses.

It noticed a marked increase in the first three months of 2009 compared to the same period last year--269 claims and appeals versus 70 in 2008. EI issues make up 90 per cent of the files, said centre director Xavier Cattarinich.

Like McGowan, Cattarinich believes a lower, uniform qualifying threshold is needed.

He said bolstering Canada's EI system will help reduce poverty, crime and welfare cases.

"You can pay now or much more later down the road," he said.

As politicians squabble over EI reform, Heather Eide wonders how she and her young daughter will manage on $1,400 a month.

Her employment insurance cheque is less than half of what she was making at a Calgary pension company. Eide's monthly rent alone is $1,350 in the new home her mother helped secure after her eviction.
Eide's EI payments are set to end after 27 weeks.

"For how much I paid into EI over the years, it's totally not enough," she said.

"Nobody can live off $1,400 a month."

Eide hopes to find a job paying close to the $20-an-hour wage she once made, but she's not feeling optimistic.

She's noticed wages in her line of work have dropped to about $14 an hour.

"I have been applying to everything that has an income level that I need," she said. "The market is just so terrible right now. I'm not even getting calls back for jobs I don't want."

Calgary Herald, Mon Jun 21 2009
Byline: Renata D'aliesio

Canadians desperately need a mandatory pension program to ensure they don't retire into poverty, but a supplementary pension plan being considered by the Alberta and British Columbia governments is a step backwards, says the Alberta Federation of Labour.

Federation president Gil McGowan says the supplementary plan proposed by the two provinces is flawed because it's not mandatory and -- even when added to Canadian Pension Plan and Old Age Security benefits -- still wouldn't provide workers sufficient money for retirement.

Employers that don't have pension plans now aren't likely to sign up if they still don't have to, he said.

The labour federation said only 40% of Canadians have workplace pension plans. The percentage is much lower in Alberta, where only 18% of residents working in the private sector have pension plans.

The situation has prompted the Alberta and B.C. governments to work on a supplementary pension plan for workers with no company pensions.

Finance ministers from B.C., Alberta, Ontario, Nova Scotia and Manitoba have scheduled a meeting in July to discuss the possibility of a national supplementary pension plan.

Canwest News Service, Fri Jun 19 2009