8.0 Future Program Options for TAGS Clients Funds for the TAGS program may run out as early as May 1998. This has caused concern for those affected and for both levels of Government. With the fishery operating at a reduced level of activity, the post-TAGS income situation for many is uncertain. In the past, income earned in the fishing industry was supported and/or supplemented by UI/EI income received; furthermore, fisheries earnings provided access to UI/EI. Alternative employment opportunities tend to be scarce, and in some instances, virtually non-existent in areas where fishing is the main source of employment. Thus, without a resumption of fishing activity many could have neither earnings potential nor access to EI. LABOUR FORCE ATTACHMENT It has been announced that, effective July 6, 1996 and until December 31, 1997, TAGS clients will be permitted to use weeks of TAGS benefits as labour force attachment when applying for EI. The relaxation of the attachment regulations will provide all TAGS clients access to EI who have the minimum 420 hours. This measure will not eliminate the attachment hurdle for all clients. This results from variations in the duration of labour market participation amongst clients. For example, about 38 percent of TAGS clients have found employment and qualify for EI in the last year without the change. Some of the remaining 62 percent have found year round employment and do not require EI; others have more than 910 hours and could readily enter the EI program; also some might not be able to attain the 420 hours needed to meet the minimum qualifications and thus will be unable to benefit from the exemption. Those who are most likely to benefit are those who have between 420 and 910 hours of employment. The exemption would grant these people access to EI without their having to find the full complement of 910 hours that would have been needed prior to the granting of labour force attachment. Due to many factors, it is not possible to predict the precise number of TAGS clients who will be able to qualify for EI as a result of the relaxation of the criteria for labour force attachment. Examples of such factors might be: the amount of employment clients find between the current and the future date when they might wish to file for EI; individuals may be able to qualify but choose not to file for personal reasons; some may leave the Province or access full time employment where EI is not needed, etc. These and many other factors make it impossible to determine how many TAGS participants will ultimately qualify for EI. |
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EI
REACH BACK In July 1996, it was announced that active programming (the provision of training and other adjustment measures) under TAGS would be discontinued. The purpose of this was to re-direct program funds in order to extend the duration of TAGS income support for as long as possible. Analysis indicates, nonetheless, that the majority of TAGS clients can still take advantage of HRDC's regular programs because of their current eligibility status as an EI claimant or through their determination as EI Reach Back clients. It is estimated that approximately 60 percent of clients in Newfoundland and Labrador would be considered EI eligible or EI Reach Back. Thus 13,530 of the 22,530 currently eligible for TAGS can participate in the various HRDC programs available to regular clients, including training and employment interventions. The related table shows that this proportion is of the same order of magnitude as has been noted for those who have already exhausted their benefits. A smaller proportion (46 percent) of those who have exited the program are EI eligible/Reach Back. Many in this group are those who took advantage of an early retirement and/or licence retirement option. Thus, they are not comparable to those who are currently eligible or have exhausted their benefits. |
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The number of clients who are EI
eligible/Reach Back varies throughout areas of the
Province. Figure 7 illustrates the proportions for the
HRCCs (see Appendices 3.1, 4.1 and 5.1 for details
relating to CCS, HRCC and Economic Zone areas). Between
81 and 90 percent of clients associated with the
Marystown, Grand Falls and Port aux Basques HRCC areas
would be considered EI eligible or Reach Back. The map
also shows that the proportion of EI eligible or Reach
Back is also high in other HRCC areas. The differences in the proportions of EI eligible/Reach Back are derived from the interplay of a variety of factors specific to different regions. Also, in areas where the fisheries were closed at a later date (regions not covered by NCARP), a larger number of clients tend to fall into the three year Reach Back status determining period because they were eligible for UI more recently. In some areas fisheries are more diversified and workers are able to catch species such as pelagics, lobsters and other shellfish, etc. which provide them with employment, and thus access to EI. Analysis indicates that proximity to stronger and more diversified non-fishery labour markets (such as in the St. John's area) has not been as important a factor in determining EI eligible/Reach Back status as the diversification of fisheries and the level and duration of fishing activity that has taken place in other areas. The regional proportions of EI eligible/Reach Back clients results from combinations of these occurrences and other factors within the various areas. |
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