The government says the expansion will help ensure skilled workers are available for the housing and major infrastructure projects that will be funded in the budget.Christinne Muschi/The Canadian Press
Ahead of next week’s federal budget, the Liberal government rolled out more details on Monday, revealing that it will expand a union-based apprenticeship program and launch a new tax credit for personal support workers.
Prime Minister Mark Carney and federal ministers have made several announcements in recent weeks that disclose programs and new spending that will be accounted for in the Nov. 4 budget.
The latest announcement is that it will expand the Union Training and Innovation Program, an apprenticeship program for Red Seal trades, which include plumbers, roofers and carpenters. The expansion will cost $75-million over three years, beginning in April, 2026.
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The government said this will help ensure skilled workers are available for the housing and major infrastructure projects that will be funded in the budget.
The government also said the budget will announce a temporary, five-year Personal Support Workers Tax Credit. This will allow eligible workers to claim a refundable tax credit equal to 5 per cent of earnings, up to a maximum of $1,100 a year.
The Liberal Party election platform had promised to launch a “Health Care Workers Hero Tax Credit,” which would be funded by reprofiling $1.35-billion in existing funding. The government said Monday’s announcement includes additional money, with details to be released in the budget.
This will only apply in provinces and territories that are not covered by a bilateral agreement with Ottawa for increasing the wages for personal support workers (PSWs). Such deals are in place in British Columbia, Newfoundland and Labrador and the Northwest Territories.
Jobs Minister Patty Hajdu says the upcoming federal budget will include $75-million over three years for an apprenticeship training program focused on building trades.
The Canadian Press
The announcements were made in a news release by Finance Minister François-Philippe Champagne and Jobs and Families Minister Patty Hajdu.
Ms. Hajdu promoted the funding during a news conference at a long-term care home in Ottawa with unionized PSWs, who welcomed the tax credit.
Those deals to boost PSW pay followed a funding announcement in the 2023 budget of $1.7-billion over five years to support hourly wage increases for PSWs, but Ms. Hajdu said the tax credit will speed up the process.
“We did not arrive at agreements with the remaining provinces,” she said. “Care can’t wait, and this is an opportunity to get money in the hands of the workers immediately through a tax credit.”
The news release said the budget will also include amendments to the Canada Labour Code to restrict the use of non-compete agreements in employment contracts. The government said this will allow workers to move more freely to higher-paying jobs or start their own businesses.
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The budget will also include $97-million over five years to create a Foreign Credential Recognition Action Fund, which will involve working with the provinces to speed up approvals for qualified professionals.
An analysis published last month by three health policy and economics academics writing for Policy Options said Canada “is staring at an imminent crisis” in terms of not having enough trained care workers to support the growing number of older Canadians.
The researchers point to Statistics Canada data showing the number of Canadians aged 75 and older is expected to double by 2052 and triple by 2073, yet the number of students entering related training programs has remained flat.
They said Canada could consider “earn as you learn” paid apprenticeships to help students manage the cost of training. Such a program is currently in place in the United Kingdom.
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One of the three researchers, Katherine Zagrodney, an assistant professor at the University of Toronto’s Institute of Health Policy, Management and Evaluation, said in an interview that the tax credit is a good start, but more is needed.
“There’s also wage parity issues across sectors that aren’t addressed through this policy,” she said, adding that PSWs in hospitals are paid more than workers in long-term care or home care.
“A lot more needs to be done to address this fully,” she said.
Bea Bruske, president of the Canadian Labour Congress, said in a statement that all four measures are welcome. She said PSWs are among the lowest paid of essential workers in Canada’s health care system.
Rodrigue Gilbert, president of the Canadian Construction Association, said more training support is welcome, especially during a time of labour shortages. However, he questions why the program is limited to unionized projects, given that about 70 per cent of construction workers in Canada are non-unionized.
“A lot of people will not have access to that program,” he said. “That’s something the federal government has been forgetting for a long time.”
Mr. Carney delivered a speech to university students last week in which he said the budget will include plans to boost trade and construction, with the goal of doubling exports to non-U.S. markets over the next decade.
He also said the budget will announce changes to Canada’s immigration policies, without offering specifics.