CFIB applauds lower EI premium increase for 2011

OTTAWA, Sept. 30 /CNW/ - After one of the most comprehensive lobbying campaigns in the history of the Canadian Federation of Independent Business (CFIB), the Federation applauds the news that government will limit the 2011 EI premiums increases to $0.05 for employees and $0.07 for employers, saving employers and employees more than $1 billion in 2011. This is far lower than what was expected to be announced by the Canada Employment Insurance Financing Board (CEIFB) later this year and will be welcome news for many small business owners and their employees that were worried they would be facing far higher EI rates in 2011.   

"There is no doubt that the worry and frustration expressed by tens of thousands of CFIB business owners and their employees  over a maximum increase in EI payroll taxes has been heard by government," said Catherine Swift, CFIB's president & CEO. "While not a complete freeze, we are pleased to see the government take a major step on this critically important issue to help lessen the impact on small businesses and thereby the economy overall," she added.

CFIB's fierce EI lobbying efforts included meetings with 50 MPs, 10,000 postcards from business owners, 8,000 signatures on petitions from employees and thousands of visits to CFIB's EI Facebook page, dedicated website and YouTube video.

CFIB also welcomed the news that there will be further limits on future EI premium increases and a review of the overall structure of the EI premium setting system. "Having some certainty on what rates to expect in future years and reviewing how EI premium rates can be better managed going forward are also key parts of this announcement," said Swift. "This is important as we do not want to simply delay future rate hikes, but ensure that the EI system is managed appropriately for the long-term," concluded Swift.

"We also hope that other governments will follow this lead to limit future tax increases and other costs imposed on small businesses. We are concerned that CPP premium increases, workers compensation premium increases, minimum wage increases and other such job destroying measures are currently being contemplated by many governments across Canada," said Swift. "The precarious state of our present economic recovery demands that governments resist such short-sighted policies."

As Canada's largest association of small- and medium-sized businesses, CFIB is Powered by Entrepreneurs™. Established in 1971, CFIB takes direction from more than 107,000 members in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.

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To arrange an interview with Catherine Swift, please contact Linnet Forand at 613-235-2373 or via[email protected]