The federal government has announced a $30-million retraining initiative to support workers affected by mass layoffs, drawing criticism from provincial and territorial labour ministers over a lack of consultation and funding cuts.
On Oct. 16 in Montreal, Minister of Employment, Workforce Development and Official Languages Randy Boissonnault launched the Canada Retraining and Opportunities Initiative during Workforce Summit 2024. The initiative aims to fund community-based projects that offer new skills training opportunities for displaced workers.
“Local leaders know their communities best,” Boissonnault said. “That’s why we created the Canada Retraining and Opportunities Initiative; to give local leaders what they need to support workforce planning and help displaced workers find work. That’s how we’re empowering communities to address labour challenges, drive innovation and create good paying jobs across the country.”
Provincial and territorial labour market ministers did not attend the summit, expressing concerns that it was planned unilaterally by Employment and Social Development Canada without consulting provinces and territories, which are responsible for workforce development.
“An event such as this should not be held without acknowledging each government’s roles and responsibilities and addressing the significant $625 million reduction in Labour Market Transfer Agreement funding in 2024–2025,” the ministers said in a joint statement released the same day.
They urged Boissonnault and Finance Minister Chrystia Freeland to recognize that provincial and territorial governments are best positioned to design and deliver workforce programming and to immediately increase LMTA funding.
“At a time of high inflation, increased unemployment, demographic changes, and quickly evolving labour market needs, the federal government should be increasing LMTA funding so that provinces and territories can fully address these pressing workforce challenges,” the statement said. “Instead, Minister Boissonnault announced federally administered programs that do not adequately respond to the needs of provincial and territorial labour markets.”
The Labour Market Transfer Agreements are used by provinces and territories to help Canadians find and keep good jobs, especially those who are underrepresented in the workforce. The ministers noted that in 2022–23, 1.2 million individuals were served through the LMTAs, with a social benefit to Canada of $8,200 for each individual assisted, according to Employment and Social Development Canada’s own unpublished report.
They expressed disappointment that the federal government did not release the 2022–2023 pan-Canadian report, “Canada’s Labour Market Agreements: Sharing key results with Canadians,” ahead of the summit.
“By failing to respect provinces and territories as key partners, the federal government has ignored the role of the Forum of Labour Market Ministers and missed an opportunity to strengthen the close federal–provincial–territorial cooperation established over 40 years ago,” the ministers said.
The Canada Retraining and Opportunities Initiative is delivered through the Community Workforce Development Program and was first announced in the 2022 Fall Economic Statement. Organizations interested in applying for funding can submit an expression of interest between Oct. 16, 2024, and March 31, 2025.
The governments of New Brunswick, Saskatchewan, and British Columbia are currently in caretaker mode and did not participate in the joint statement.
