Labour ministers from the federal, provincial, and territorial governments are meeting today — and the Canadian Manufacturers & Exporters (CME) is calling on Ottawa to reinstate $625 million in workforce funding that was eliminated this year.
The funding cut, announced in the Budget 2024, will significantly reduce access to workforce and skills training services essential for Canadians to stay engaged in meaningful employment and prepare for the future economy, it said. According to CME’s 2023 technology adoption survey, one-third of manufacturers reported a shortage of skilled workers as a major obstacle to adopting new technologies.
“The removal of more than half-billion-dollar funding for skills training will negatively impact Canada’s manufacturing industry that is struggling to remain globally competitive while grappling with skills shortages and an aging workforce,” said Dennis Darby, CME’s president and CEO.
Despite these challenges, Darby emphasized the ongoing efforts of manufacturers to upskill workers and create quality job opportunities. He called on the federal government to support these initiatives by reinstating the critical funding.
“Manufacturers will continue to upskill workers and create quality jobs and opportunities for their employees and communities. However, the federal government needs to do its part by stepping up and investing in our future, not making cuts,” he said.
The CME isn’t alone in calling for the funding to be restored. Back in May, provincial and territorial labour ministers held an emergency meeting to discuss the budget cut.
“Contrary to federal minister Randy Boissonnault’s recent public remarks, provinces and territories were not advised of the funding cut prior to the release of the federal budget,” the Government of Newfoundland and Labrador said in a press release on May 14.
“In those same remarks, Minister Boissonnault further stated that the $625 million in funding was specifically provided to provinces and territories to address the need for more workforce training across Canada. While this implies that the needs have diminished and the funding is no longer required, ministers assert that the need for training has only increased as employers continue to struggle to find the skilled workers they need,” it said.
Last week, British Columbia said labour ministers will be united in demanding the “immediate reinstatement of the $625 million that the federal government cut from the Labour Market Transfer Agreements (LMTAs) in Budget 2024.”
“The majority of LMTA funding comes from employment insurance premiums paid by workers and employers who PT ministers believe deserve to benefit from the investments they have made and have access to public skills, training and employment services they need to succeed in a constantly changing economy,” it said in a press release.
“Ministers have no intentions of giving up their efforts in pressuring the federal government to meet its obligations to the workforce in every province and territory,” it said.
