New Democrat Leader Jack Layton hinted Monday his party may support an upcoming confidence motion and keep the government alive, as Liberal Leader Michael Ignatieff mocked the new Conservative-NDP "coalition."

"If Parliament is working, and we are getting things done ... I'm sure Canadians would prefer there would not be an election and we got results for them," Layton told CTV News Channel's Power Play.

After 79 straight votes against the government, Layton says his party will now vote on a "case-by-case" basis, after the Tories announced changes to the Employment Insurance system.

That's in stark contrast to the Liberals, who say they will firmly vote against the Tories, leaving the NDP and Bloc Quebecois in the position of propping up the government.

Speaking on Power Play, Ignatieff said the Conservatives were "impossible to work with," citing an attempt at EI reform over the summer.

"That's the conclusion we reluctantly came to," he said. "I can't prop up a government that lets Canadians down."

The NDP has expressed cautious approval of the EI measure.

"The (EI) announcement today appears to be a step in the right direction," Layton said Monday afternoon. "Our preference remains fighting for the unemployed rather than fighting for an election.

"Make no mistake about it, we have no intention of giving this government a blank cheque like Michael Ignatieff and the Liberals did. We will be studying the bill and considering it very, very carefully."

Despite the tenuous support, Layton expressed little faith in the ability of Harper to work with other parties in a minority government.

"He's taken this 'his way or the highway' attitude time and time again," Layton told Power Play. "I think people would find it surprising and perhaps disturbing that Mr. Harper doesn't see fit to work with other members of Parliament."

There is a ways-and-means vote taking place on Friday that could potentially take down the government. However, Bloc Quebecois Leader Gilles Duceppe eased any tension in that vote, when he indicated Monday that his party would support the Conservatives on that measure.

Coalition deja vu

The Grits came out with a new line of attack on the Conservatives Monday -- charging that Prime Minister Stephen Harper is seeking out his own coalition government with the NDP.

In the first session of question period following the summer break, Ignatieff asked the prime minister whether he has a "new-found love for socialism and does he not think it's prudent to change his attack ads."

Ignatieff's charge comes after it came to light that the Tories intend to introduce legislation that would provide temporary, additional employment insurance benefits for long-tenured unemployed workers -- legislation that the NDP seems likely to support.

It's a move that could help stave off Canada's fourth federal election in less than six years.

Harper responded to Ignatieff by saying "the leader of the opposition is flailing around trying to invent reasons why Canadians should have another election."

"The fact of the matter is Canadians do not want an election, Canada does not need an election, an election is not in this country's best interest," Harper said, citing the economy as his government's top priority.

As for the Liberal-NDP-Bloc coalition of late last year, Ignatieff has said that's off the table.

In fact, he says he has not spoken to Layton and Duceppe about the fall session and has no plans to.

The EI changes

Human Resources Minister Diane Finley and Revenue Minister Jean-Pierre Blackburn introduced the changes at a news conference in Ottawa late Monday morning.

The changes will provide up to 20 weeks of additional benefits for "unemployed, long-tenured workers."

According to a government news release, a long-tenured worker is defined as a person who has contributed to the EI program in seven of the past 10 years, and who has received regular EI benefits for no more than 35 weeks in the past five years. The number of weeks of additional benefits they qualify for will depend on the number of years they have worked and paid EI premiums.

Finley said the changes will cost more than $900 million to implement.

Political implications

The early indications are that the NDP is likely to support the EI changes, provided that the forthcoming legislation is as beneficial as it seems.

Immediately following Monday's government announcement, Paul Dewar, the MP for Ottawa Centre and the NDP's foreign affairs critic, said the opposition party would look carefully at the "serious proposition" from the government.

"If they are going to put forward something that is going to help Canadians who have been hard-hit, we would be irresponsible not to seriously consider and support that," Dewar added.

Earlier in the day, Layton told his caucus that the party is ready for an election, but the preferred option is to make Parliament work.

"This is an opportunity now for Stephen Harper to make a choice," Layton said.

"Does he want to demonstrate some sort of leadership and make this Parliament work or is he going to take us headlong into an election? That's his choice."

While the NDP have voted against the Conservative government 79 times since the last election, CTV's Ottawa Bureau Chief Robert Fife said it appears they will change course for the EI issue.

"Clearly, the New Democrats signaling very strongly that they are likely to support the EI package," Fife said.

The NDP do not want an election at this time, which would cost the country $350 million and has party members concerned about taking part in a campaign.

"Right now, a lot of New Democrats are worried about going into an election campaign and therefore, you're seeing a change in attitude on the part of Mr. Layton," Fife said.

With files from The Canadian Press