Canada. Unemployment Insurance Commission : Prior to 1940, there was no government-administered unemployment insurance system in Canada. Although the effects of the Depression of the 1930s underscored the need for such a system, the constitutionality of establishing one prevented the federal government from doing so. The Report the Royal Commission on Dominion-Provincial Relations, which was tabled in 1940, recommended creating a federal social insurance program to address unemployment. Consequently, the federal government sought agreement from the provinces to amend the British North America Act to provide exclusive authority by the federal government for legislation in this area. The constitutional roadblocks were quickly eliminated, and the federal government began implementing an unemployment insurance program.
The Unemployment Insurance Commission (UIC) was established in 1941, following the passage of the Unemployment Insurance Act (S.C. 1940, C. 44). The UIC was managed by three commissioners, one each from management, labour, and government. Its primary function was to provide for the compulsory insurance of employed persons and the payment to such persons, upon becoming unemployed, of weekly payments for limited periods of time. The Commission was also responsible for organizing and maintaining a National Employment Service (NES) for Canada. To this end, it collected information on employment, established local employment offices, and created advisory committees at the national and local levels. From the 1940s to the 1960s, however, the NES was viewed as a subordinate adjunct of the UIC.
The original legislation also provided for the establishment of two consultative mechanisms: the Unemployment Insurance Advisory Committee (which advised the Commission on the state of the Unemployment Insurance Fund) and the National Employment Committee (which joined with similar regional and local committees to provide advice to the Commission on employment matters). Through the years these bodies underwent a number of transformations. The Unemployment Insurance Advisory Committee, for example, was disbanded in 1976 and replaced by the Unemployment Insurance Advisory Council.
In addition, the legislation referred to an appeal system for those individuals whose claims had been rejected by the Commission. After amendments to the Act in 1971, the appeal system consists of three levels: the insurance agent, the Boards of Referees and the Canadian Umpire Board (commonly referred to as the Umpire). The appeal process usually begins with the UIC agent who, if s/he believes that there is cause for an appeal, passes it onto the Board of Referees, an autonomous body but one that is connected to the UIC. A claimant who received an unfavourable decision from an agent may also appeal to the Boards of Referees. Under certain circumstances, the claimant has the right to appeal a decision of the Boards of Referees to the Umpire. The Umpire, the final level of appeal within the UIC, operates at arm's length from Commission. In fact, although the Umpires are paid by the UIC, they are, in fact, Federal Court judges, who are empowered to make legally-binding decisions.
In the 1960s and 1970s the UIC underwent a number of administrative changes and assumed additional responsibilities. The Appropriation Act No. 10, 1964 (S.C. 1964-65, C. 35), for example, authorized the transfer of the powers and duties relating to employment services from the UIC to the Minister of Labour. At about the same time, the Commission was given the responsibility of maintaining the register of Social Insurance Numbers, the identifier for all insurance claimants, after they were implemented in 1964.
In 1977 the government passed the Employment and Immigration Reorganization Act (S.C. 1976-77, C. 54) to integrate the Unemployment Insurance Commission and the Department of Manpower and Immigration, effective 15 August 1977. The result of this legislation was the creation of Employment and Immigration Commission. At the same time the Department of Employment and Immigration was created. The tripartite management of the UIC was maintained and enhanced in the new organization. In addition, the legislation created the Canada Employment and Immigration Advisory Council, which replaced the Unemployment Insurance Advisory Committee.
In June 1993 Prime Minister Kim Campbell announced a plan to restructure her government. One of the changes was the creation of the Department of Human Resources and Labour (which, in turn, became Human Resources Development Canada). The new Department merged the employment and unemployment insurance programs formerly administered by Employment and Immigration Canada; the social development and income support functions of Health and Welfare Canada; many of the education functions of the Department of the Secretary of State; and all of Labour Canada. The Employment Insurance Act of 1996 (45 Elizabeth II 1996) created the Employment Insurance Plan, which replaced the Unemployment Insurance Program.
