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Well, I haven't tried the "banking" strategy, but as you say, I'd tend to think most employees would prefer all their hours being re-imbursed as they work them.
Employment insurance isn't nothing, but up here at least it doesn't amount to much. Not enough to get by for most $12-$14/hr summer employees. Perhaps in your state, and at the wages you pay, it is different.
One thing I do know is that they claw-back EI payments dollar-for-dollar above a certain threshold of earnings. If I recall it was something ridiculous like $50/week that the guys could earn before losing an equal amount of EI benefits for every other dollar earned.
If I could afford to pay my guys $40g per year I wouldn't have this problem, but I can't...
Back to the original question about alternative winter work - I would agree with GLAN that maybe keeping snow plowing as a service would help. You might have been able to scale-down without eliminating it entirely.
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