Ottawa slashes funding for Alberta training programs

Posted on August 22, 2024 by Ryan Dahlman

By Cal Braid
Southern Alberta Newspapers
Local Journalism Initiative Reporter

On Aug. 7, Alberta’s Minister of Jobs, Economy and Trade, Matt Jones, issued a statement about the Canada-Alberta Job Grant that began, “As a result of Ottawa’s unexpected and unreasonable decision to cut $70.8 million in Labour Market Transfer Agreement (LMTA) funding for Alberta, our government has been forced to put an indefinite hold on the Canada-Alberta Job Grant program for the remainder of the 2024-25 fiscal year.”

 Albertans aren’t the only ones with an axe to grind. On June 20, the Province of Manitoba released a statement saying that provincial and territorial labour market ministers met virtually with Randy Boissonnault, minister of federal employment, workforce development and official languages, on June 17 “to insist the federal government immediately restore $625 million in funding cut from the Labour Market Transfer Agreements (LMTAs) in Budget 2024.”

 The ministers told Boissonnault that the 20 per cent cut could deprive 240,000 clients and 13,000 employers of public employment services at a time of critical labour shortages across the country in key sectors.

 The federal cuts have already resulted in the suspension, reduction, or discontinuation of programming in provincial and territorial jurisdictions. The Manitoba press release said that Boissonnault acknowledged that the cuts would have adverse consequences for workers and employers, but that “provinces and territories are best positioned to deliver targeted workforce programming.” He said the federal government would not reinstate the funding, which has been in place since 2017.

 The labour market ministers said Boissonnault did not offer an explanation or retraction of his earlier public statements that falsely asserted that provincial and territorial ministers were aware of this cut in advance of Budget 2024 and failed to prepare accordingly.

 Though the federal government promised new workforce training programs, the provincial and territorial ministers worried that those programs may be inequitably distributed and duplicate the employment services offered by provinces and territories.

 “Ultimately, the best way to provide all Canadian workers and employers with efficient, high-quality programs is to restore the funding that provinces and territories have successfully used to deliver employment services tailored to their respective workforce training needs,” the Manitoba release said. “All 13 provincial and territorial ministers expressed concern about the long-term consequences… (and) concluded the meeting by restating their unanimous position that the federal government must immediately reinstate the $625-million cut in funding in the interest of all Canadians.”

The feds, in turn, seem to have dug in their heels, as if saying, “What part of NO don’t you understand?”

 Minister Matt Jones said, “This cut to funding has serious, far-reaching consequences for workers and comes at a time when Alberta continues to face critical skills shortages in several industries, including construction, health care, and education.”

 He said that Alberta remains committed to addressing labour shortages and skilled-training gaps through programs that meet the needs of employers, training providers, and industry.

 The federal government says that labour market development agreements (LMDAs) provide skills development and training support to individuals who have recently lost a job. The LMDAs are funded by the EI contributions of employers and workers, and the programming assists individuals to prepare for, obtain, and maintain employment.

 Eligible participants include those who are currently receiving or have previously received EI benefits and who have made the minimum EI premium contributions for at least five out of the last ten years. In addition, recipients must be Canadian citizens, permanent residents, protected persons (per the Immigration and Refugee Protection Act–entitled to work in Canada), or private sector employers. Ineligible participants include international students, temporary foreign workers, federal and provincial/territorial governments, federal crown corporations, and agencies.

 Until now, the federal government was investing about $3 billion each year in skills training and employment through funding provided to provinces and territories. Programs focus on upskilling, employment supports, career counselling, and job search assistance. The government website says, “To ensure that programming meets the needs of local labour markets, provinces and territories consult annually with labour market stakeholders to inform the design and delivery of training and employment programs.” Now the provinces and territories will have to recalculate their budgets.

 The federal funding doled out to each province from 2022-23 was listed in dollars and persons served. The numbers may simply reflect the transfer amounts and how the provinces have used them for regional services, but where Ottawa takes credit for the provision it can also take heat for the lack of services that will occur due to the cuts.

 The provinces and territories received amounts correlating to population: Ont. received $1.1 billion and served 403K persons; Que. $910 million served 230K; B.C. $470 million served 189K; and Alberta $325 million served 117K. The other provinces rounded out the list, with the Yukon, N.W.T, and Nunavut receiving $7 million each and serving between 800 and 5,000 residents.

So the funding gets slashed, while critical health and child care services can’t keep pace with the demand in this province. Minister Jones said the Province is “disappointed” with the decision to cut tens of millions in funding to Alberta’s skills and training programs, but that sounds like an understatement. Thirteen labour market ministers from the provinces and territories were unanimous in calling for the decision to be rescinded, and Ottawa didn’t budge.