Backgrounder

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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Work-Sharing Program

March 17, 2011
Brampton, Ontario

Work-Sharing is an adjustment program to help employers and employees avoid temporary layoffs when there is a reduction in the normal level of business activity beyond the control of the employer. It provides income support to employees eligible for Employment Insurance benefits who work a temporarily reduced workweek. Work-Sharing Agreements must be agreed upon by both employee and employer representatives and approved by Service Canada. Agreements have a minimum duration of six weeks.

The program benefits all parties involved. It enables employees to continue working and keep their skills up to date. Organizations benefit by retaining the talents of experienced workers while avoiding expensive rehiring and retraining costs.

Through Canada's Economic Action Plan, the Harper Government extended the duration of Work-Sharing to a maximum of 52 weeks, and provided greater flexibility in the qualifying criteria. Year 2 of Canada's Economic Action Plan further extended existing or recently terminated agreements by an additional 26 weeks, up to a maximum 78 weeks and continued to ease the eligibility requirements for new agreements.

This temporary measure is estimated to be worth approximately $311 million over two years.

Between February, 2009 and February, 2011, more than 277,000 individuals have benefitted from over 10,000 Work-Sharing Agreements.

Located in Brampton, Ontario, T.A. Brannon Steel has been supplying quality carbon steel parts to equipment manufacturers and custom fabricators throughout Canada and the United States since 1968. The privately-held company employs 111 workers. Since joining the Work-Sharing Program in 2009, more than 75 of its employees have participated in the initiative and T.A. Brannon Steel was able to avoid the layoff of approximately 35 workers.

For more information on Work-Sharing, visit: http://www.servicecanada.gc.ca/eng/work_sharing/index.shtml

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The Prime Minister's Office - Communications
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