Provincial and territorial labour market ministers have urged the federal government to reverse a significant cut to the Labour Market Transfer Agreements (LMTAs), warning of dire consequences for public employment services and critical labour sectors.
The call came during a virtual meeting on June 17 with Federal Employment, Workforce Development, and Official Languages Minister Randy Boissonnault, according to a press release issued by the Government of Manitoba.
The ministers are pressing Ottawa to reinstate $625 million in annual funding, slashed in Budget 2024, which they argue will deprive 240,000 clients and 13,000 employers of vital employment services. The sectors most affected include construction, child care, and health care, all facing acute labour shortages.
Boissonnault was informed that the unexpected 20 per cent cut has already led to the suspension, reduction, or discontinuation of various programs across provinces and territories. The ministers cautioned that the most vulnerable populations, including Black, Indigenous, and people of colour, persons with disabilities, women, 2SLGBTQIA+ individuals, and newcomers, would bear the brunt of these service disruptions.
Despite acknowledging the negative impact on workers and employers, Boissonnault confirmed that the federal government would not reinstate the funding, which has been in place since 2017. He did not provide an explanation for his earlier public statements suggesting that provincial and territorial ministers were forewarned about the cut.
In response to Boissonnault’s promotion of new federal workforce training programs, the ministers argued these initiatives might be unevenly distributed, duplicate existing provincial services, and complicate access for workers and employers. They emphasized that employment insurance premiums paid by employees and employers are a significant source of LMTA funding and should be used to provide targeted employment services.
The ministers stressed that restoring the funding is crucial for delivering effective, high-quality programs tailored to regional workforce training needs. They expressed unanimous concern about the long-term implications of the funding cut on Canadian workers and employers and reiterated their demand for the immediate reinstatement of the $625 million.
All 13 provincial and territorial ministers concluded the meeting by restating their unified position: the federal government must act swiftly to reinstate the funding in the interest of all Canadians.
