Memorandum of Understanding will help finalize deal to better align training to job opportunities in British Columbia
NANAIMO, BC, June 24, 2015 /CNW/ - The Governments of Canada and British Columbia today announced that they have signed a Memorandum of Understanding (MOU) that paves the way towards retooling an existing federal-provincial job training deal which will better-align training with jobs. The Honourable Pierre Poilievre, Minister of Employment and Social Development, and the Honourable Michelle Stilwell, Minister of Social Development and Social Innovation (British Columbia), today signed an MOU to direct officials to finalize the deal. This is the second job training deal to be signed between the federal government and provinces.
The Government of Canada transfers over $2 billion annually to the provinces and territories through the Labour Market Development Agreements (LMDAs) to provide skills training to active and former Employment Insurance clients and employment services to people who are unemployed.
Under the retooled deal, training will be better aligned with job opportunities to help the unemployed find available jobs sooner. Employers will have the opportunity for greater input on training to meet their needs, and an amended accountability framework will help ensure EI premium-payers are getting maximum value for premiums paid. In B.C., the majority of the funding will support employment programs and supports delivered through 84 WorkBC Employment Service Centres across the province.
The signing took place at VMAC Global Technology Inc., a manufacturer of vehicle-mounted mobile air compressor solutions used for service trucks, public works, utilities, highway/heavy construction, oil and mining and a recent recipient of funding under the Canada Job Grant. Minister Poilievre and the Honourable Shirley Bond, Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour (British Columbia) took the opportunity to announce that approximately 7,360 workers in British Columbia are receiving training through the Canada Job Grant (CJG). To date, over 1,400 employers have been approved for funding to train employees in British Columbia. The CJG is providing 23 VMAC Global employees with training in sales, manufacturing, leadership development and supply chain technology.
- The Government of Canada transfers over $2 billion annually to the provinces and territories through the Labour Market Development Agreements (LMDAs) to provide skills training to active and former EI clients and employment services to all unemployed Canadians.
- The Government of Canada is transforming Canada's skills training system by encouraging greater employer participation in skills training decisions and ensuring that training is better aligned with job opportunities.
- The B.C. Government invests approximately $331 million each year on employment programs.
- WorkBC Employment Service Centres have provided employment services to more than 195,000 people in B.C. since they were launched in 2012.
- As the single largest labour market transfer to provinces and territories, these job training deals help over 650,000 Canadians annually.
- $279.9 million is allocated toward the Canada-British Columbia LMDA in 2015-16.
- By 2017–18, over $39 million per year will be available for the Canada Job Grant in British Columbia.
"The new job training deal with B.C. will result in greater employer participation to ensure that Canadians are equipped with the skills employers need now and in the future."
- The Honourable Pierre Poilievre, Minister of Employment and Social Development
"Through the B.C. Skills for Jobs Blueprint, our government has realigned education and training to meet labour market demands. This MOU is the first step to a renewed agreement that will offer more flexibility to align federal funding with our provinces labour market needs and give more B.C. residents opportunities to train today for tomorrow's in-demand occupations."
- The Honourable Michelle Stilwell, Minister of Social Development and Social Innovation (British Columbia)
"B.C. is reaching a tipping point with fewer young people entering the workforce than older workers leaving it. That is why we are taking steps now to meet the needs of our rapidly changing labour market. The re-negotiated Labour Market Development Agreement as well as funding provided under the Canada-B.C. Job Grant will better align training to job opportunities and ensure that British Columbians have the skills they need to find their fit in our diverse, strong and growing economy."
- The Honourable Shirley Bond, Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour (British Columbia)
''VMAC is very aware of the importance of investing in the training and education of our team members and their skill sets in order to grow our position within the manufacturing industry. The Canada Job Grant has provided us with the opportunity to continually invest in our employees, resulting in a highly skilled and knowledgeable team while also giving us a competitive advantage within a global capacity''.
- Jim Hogan, P.Eng President, VMAC Global Technology Inc.
Labour Market Development Agreements
The Labour Market Development Agreements (LMDAs) provide over $2 billion in annual funding from the Employment Insurance (EI) Operating Account—$1.95 billion for programming and roughly $190 million per year for administration—to provinces and territories to support the costs of designing and delivering employment programs that help Canadians get back to work and reduce their dependency on EI income support so the EI system is sustainable in the long term.
With these funds, provinces and territories provide a full range of employment programs and services, ranging from longer-term skills training for active and former EI claimants to counselling and job search assistance for all unemployed Canadians.
Provinces and territories are responsible for the design and delivery of employment programs under these deals.
These deals allow provinces and territories flexibility to determine how to best address the needs of Canadians.
Each year, every jurisdiction reports to the Government of Canada on LMDA-funded programs and services in order to demonstrate that the measures taken lead to results. Provinces and territories report on elements such as funding spent, performance indicators and progress against targets for clients served.
LMDA results can be found in the EI Monitoring and Assessment Report, which is published annually, at http://www.esdc.gc.ca/en/reports/ei/index.page.
Retooling these job training deals will reorient them toward labour market demand and will provide employers the increased role in training decisions that they have asked for during recent consultations.
Through retooled deals, we will ensure that the tools and incentives are in place to get to unemployed Canadians as quickly as possible and help their return to work, while also strengthening reporting to EI premium payers.
Canada Job Grant
The Canada Job Grant, which is separate from the LMDA, will help Canadians get the training they need for available jobs and put skills training decisions in the hands of employers. It can provide up to $15,000 per person for training costs, such as tuition and training materials, which includes up to $10,000 in government contributions. The program is delivered by the Government of British Columbia. Employers are required to contribute one-third of these training costs. By 2017–18, a total of approximately $300 million per year will be invested nationally in the Canada Job Grant.
The Canada Job Grant is for short-duration training provided by eligible third-party trainers, such as community colleges, career colleges, trade union centres and private trainers. Training can be provided in a variety of settings, including in a classroom, on site at a workplace or online.
All private and not-for-profit businesses with a plan to train Canadians for a new or better job are eligible to apply for a Canada Job Grant.
The Canada Job Grant is flexible enough to meet the needs of businesses of all sizes, in all industries and regions. Small businesses may benefit from flexible arrangements, such as the potential to count wages as part of the employer contribution. This will help ensure that all businesses, regardless of size, can fully participate in the Canada Job Grant.
The Canada Job Grant will ensure that employers participate meaningfully as partners in the skills training system, sharing in the associated costs. This will ensure that training is better aligned with job opportunities, particularly in sectors facing skills mismatches and labour shortages.
The Canada Job Grant is strongly supported by employers and other stakeholders, including:
- Building and Construction Trades Department, AFL-CIO;
- National Association of Career Colleges;
- Canadian Federation of Independent Business;
- Canadian Manufacturers & Exporters;
- Canadian Construction Association;
- Information Technology Association of Canada;
- Canadian Welding Bureau;
- Engineers Canada;
- Progressive Contractors Association of Canada;
- Christian Labour Association of Canada;
- Canadian Home Builders' Association;
- Canadian Shipowners Association;
- Canadian Electricity Association;
- Canadian Institute of Plumbing & Heating;
- Merit Canada;
- Polytechnics Canada;
- Prospectors and Developers Association of Canada;
- Chemistry Industry Association of Canada; and
- Aerospace Industries Association of Canada.
SOURCE Employment and Social Development Canada
For further information: Aaron Bell, Press Secretary, Office of the Minister of Employment and Social Development, 819-994-2482; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]; Follow us on Twitter; Media Relations, British Columbia Ministry of Jobs, Tourism and Skills Training and Responsible for Labour, 250-387-2799