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HOW TO SURVIVE THESE TOUGH, TOUGH TIMES: By LINDA LEATHERDALE Canada's trusted financial voice A layoff can be as devastating as death or divorce. So believe me - there's a lot of misery out there, with a whopping 129,000 jobs lost last month, the biggest number since Ottawa began tracking unemployment. We're told it's a now a jobless rate of 7.2%, up from 6.6% from December, and in the manufacturing heartland of Ontario where 71,000 jobs were lost, it's a jobless rate of 8%, up from 7.2%. Even though gurus will chirp we're still a way better off than the dark dark days of the Great Depression, when the jobless rate hit 30% and higher - how do we truly know? There are so many chronically unemployed in Canada - since the "re-engineering" days of the corporate world in the 1990s, which made "Freedom 55" a boot out the door for many. These often over-qualified, older workers have given up finding a job, and are no longer counted among the ranks of the unemployed. Then there's this: A slow erosion of EI benefits, which grew the fund into huge surpluses, while never giving a break to small business employers who help to foot the bill. Many unemployed workers exhausted their benefits, and resorted to other programs, like welfare. They're no longer counted. So, is there a bigger story behind our jobless rate? I say yes. Meanwhile, benefits remain at a low of 55% of insurable earnings, while Finance Minister Jim Flaherty boosted the number of weeks eligible workers can collect from 45 to 50. But this isn't fair. Even though Ontario is now officially a "have-not" province, workers in Ontario have to work more hours to be eligible to collect, than their counterparts on the East Coast. Big losers are manufacturing workers, where half of the 71,000 lost jobs were in that sector, that began to bleed jobs big-time up to three years ago, as the loonie soared, jobs were shipped overseas, skyrocketing energy prices shut down many players, and the auto sector began a brutal cycle of rationalization. It's a no brainer there were more jobs in social assistance last month, so they were winners. Health care jobs were also on rise. But overall, it was a brutal bloodletting with most of 129,000 job losses full-time, private-sector employment for those aged 25 to 54. Even the public sector, which has been on a hiring binge, reduced its ranks with 42,000 lost jobs. The name of the game today is "Survival" so here are some tips to help: • Most of us are "at will" employees, so unless we're unionized and high up on seniority rolls, we cannot fight a layoff. However, we can try to get a better package. Consult with a labour lawyer and make sure your package is fair. But try to avoid the hefty costs of hiring a lawyer to fight back. That could eat up more than any extra amounts you may win. • Try to negotiate continuance of health benefits, and if you decide to become self-employed start shopping around for the best deals to start up your own insurance package. Good health is key here. • With pensions funds so underfunded these days, my advice is take a the accumulated lump sum value of your pension out of the company and move it to a locked-in pension plan, where you call the shots where the money is invested. Now you're in the driver's seat, but play it safe with the money during these days of market meltdowns. • Tax shelter the package. If you have room, max out your RRSP. And don't forget to take advantage of a now axed program, that allows you to move some of your severance money earned before 1996 into an RRSP, if you had room or not. • If you're only getting one or two weeks severance, cash flow will become a big issue. Consult with creditors right away. If you need to renegotiate your mortgage to give you breathing room and cut payments, work with your bank. And move fast, so your credit rating won't be hurt. Take on freelance jobs, part-time work, sell big items, have a garage sale. Even get a line of credit to help you through, but be careful. Too much debt can drown you. • Sit down with the family and rework the household budget. Get rid of wants, list only needs and look at ways to cut monthly costs. But try not to make it a doom and gloom exercise. Let the family know when the good times return, you'll save for a trip or something special. Make it a teamwork affair. • Dust off the resume, rework it to make all your qualities shine, put on a brave face and start networking. Some of the best jobs are through who you know, and getting out there. Don't be shy and don't become negative. • Pick up a copy of the book, Surviving a Layoff, A Weekly Guide to Getting Your Life Back Together, authored by Lita Epstein, for more advice. • Look at the bright side. Did you like that job anyway? Sometimes getting a severance package can be like winning a lottery particularly if you find a job right away, or you already have your own venture up and running. As Toronto's popular morning radio talk show host, Bill Carroll, commented, he once was laid off from a media job and went on to get his dream job. You never know what the future holds. But believe me, a positive attitude helps. Carroll's advice on his show today (Friday) where we commiserated over the latest jobless numbers was don't blame yourself, move on and if a friend loses a job, be compassionate, not patronizing. My dad always said, "hold your head high." So to me, it's the Sun's loss after a layoff in December, and my gain as I head onward and upward. As the Boston song goes, "Don't look back." There were happy days at the Sun, but lately it was depressing and miserable, and I'm better off out of there, with my pension. And a final word: Now, is the time for leaders to be fair to all the hard-working families out there. Cut taxes, put a lid on obscene pump prices, get tough on gouging rates on credit cards and lines of credit, and get all the hands out of our pockets. We, the consumer, account for two-thirds of this economy, and if the fleecing continues and we don't have jobs, watch out! |