Provincial Consultations Planned on Proposed Changes to Federal Skills and Employment Programs

The Honourable Joan Shea, Minister of Advanced Education and Skills, said she has strong concerns with how proposed changes to federal skilled trades and employment program funding through the Canada Job Grant have been proceeding. Minister Shea says there has been insufficient federal consultation with employers and other interested parties, and today announced plans for consultations in Newfoundland and Labrador.

Following their September 24 meeting, Provincial and Territorial Labour Market Ministers called on the Federal Government to reconsider plans for extensive changes to skilled trades and employment program funding. Federal-Provincial Labour Market Agreements that provide this funding are set to expire in April 2014.

“It was very clear from discussions among Labour Market Ministers that there is a strong consensus that the Federal Government needs to revisit its plans for the proposed Canada Job Grant,” said Minister Shea. “We believe these changes, which were announced without any prior consultation with provinces and territories, will not improve our ability to ensure that we can provide the training and employment opportunities to meet a high demand for skilled labour. Employers are telling us they have serious concerns about the impacts of these proposed changes and we believe a far more extensive consultation is required.”

Minister Shea also noted that Premier Dunderdale has shown leadership on this matter, including at the Council of Atlantic Premiers and the Council of the Federation, in helping to shape provincial-territorial consensus on proposed changes.

Under the proposal, the Federal Government would divert as much as $600 million in funding from existing programming to the Canada Job Grant. There is a further concern that a requirement of businesses to contribute to the Canada Job Grant in order to participate would leave the majority of small and medium-sized businesses excluded.

Plans are now underway to hold consultations in Newfoundland and Labrador later in the fall. Details on the provincial consultations on proposed changes to Labour Market Agreements and the proposed Canada Job Grant will be announced in the coming weeks.

Following their national meeting yesterday, Ministers released a report titled Building Skills Together that provided detail on the importance of skills and training, the success of current programming under Labour Market Agreements, and concerns about the federal proposal. The report is at www.councilofthefederation.ca/en/publications . Visit, www.gov.nl.ca/releases/2013/aes/FLMMFinalCommunique.pdf for a copy of the communiqué.

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Media contact:
John Tompkins
Director of Communications
Department of Advanced Education and Skills
709-729-0753, 728-7762
jtompkins@gov.nl.ca 

2013 09 25                                     5:10 p.m.