Dissenting opinion of the NDP Official Opposition, tabled as part of the study by the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities on the renewal of the Labour Market Development Agreements (LMDA).

 

 

 

NDP members of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (hereinafter “the Committee”) would like to thank all of the witnesses who took the time to present their views and recommendations during this study.

NDP members of the committee are troubled that many of the constructive recommendations made by individuals and organizations involved in the labour market were not included in the Committee’s report, and we would like to present them here.

I.    Labour shortages: a difference in opinion

The NDP believes that the government’s approach to employment and skills development is distorted by a presumed national labour shortage. The NDP acknowledges that there are mismatches in the labour market at the sectoral, occupational and regional levels that make it difficult for some businesses to find employees, but that there is no evidence to support the government’s presumption of an overall national labour shortage.

Jean-Denis Fréchette, Parliamentary Budget Officer, gave a detailed presentation before the committee, which serves to summarize much of the testimony the Committee heard. The Opposition regrets that the valuable information he, and other witnesses, provided on this front is not contained in the Committee’s report:

“The PBO has found no evidence in support of a national labour shortage in Canada. Some provinces may be experiencing a tighter labour market than was the case prior to the 2008-09 recession. Labour shortages may exist in specific sub-provincial regions, sectors, or occupations. However, the PBO found no evidence of a national skills mismatch that is any more acute than prior to the 2008-09 recession.”[1]

II.     The need to study the labour market

One of the reasons for these differences is that there is, at present, no effective system in place in Canada for generating adequate, accurate labour market information. Speaking before the Committee, the Honourable Jason Kenney, Minister of Employment and Social Development,[2] and Deputy Minister Ian Shugart[3] both acknowledged these problems and the need to improve access to information on the labour market and labour market trends.

The NDP maintains that this situation must be remedied in order to develop a coherent national employment policy that reflects labour market realities, in cooperation with the provinces and territories.

2.1     Statistics Canada’s mandate

To that end, the NDP recommends giving Statistics Canada the mandate to conduct an ongoing study of the labour market. Most witnesses argued that this approach is essential for informed action on training and skills development.

“[W]e need solid data from an institution, from an organization like Statistics Canada to really make informed decisions, not the PBO but parliamentarians and policy-makers, to really make up their minds and make good decisions about future programs. As the old saying goes—I used to say this to many people in another life, and it was good in agriculture—if you cannot measure it, you cannot manage it.”[4]

Recommendation 1: That the Government of Canada give Statistics Canada the mandate to conduct an ongoing study of the current state and prospects of Canada’s labour market to make possible the regular collection and publication of labour data across the country by region, sector and occupation.

While it is essential that Statistics Canada be given this mandate, many witnesses noted that it currently lacks the resources to undertake this kind of ongoing study.

“We recommend the federal government increase funding to Statistics Canada so it can develop more detailed labour market data.”[5]

Recommendation 2: That the government boost Statistics Canada’s human and financial resources accordingly.

2.2     Canada-wide labour market partners forum

Many witnesses told the Committee that federal, provincial and territorial authorities and other interested parties fail to collaborate in collecting labour market data and coordinating policies. To correct this problem, the witnesses proposed creating a Canada-wide labour market partners’ forum.

“A permanent federal labour market partners forum should be established to contribute to the successful training initiatives and to identify other labour market measures that are needed as part of a new Canadian job strategy.”[6]

The NDP supports creating this forum and believes—as the witnesses emphasized—that it would be the appropriate platform for exchanging best practices in order to identify effective mechanisms and initiatives, and sharing the experiences of various labour market stakeholders across Canada.

Recommendation 3: That the federal government work with the provinces and territories to create a Canada-wide labour market partners’ forum comprising federal, provincial and territorial governments and labour market partners in order to discuss trends and challenges and coordinate the direction of national labour force training and skills development policies.

Recommendation 4: That the proposed Canada-wide forum study various provincial and territorial Labour Market Development Agreement implementation models; and that, to improve accountability, the members of the forum share lessons and best practices regarding the collection of reliable data.

III.     Addressing labour market gaps

The NDP notes that there are gaps in the labour market in certain sectors, occupations and regions, even as unemployment rates for youth and other marginalized groups – e.g. seniors and Aboriginal people – remain especially high.

The NDP believes that employment training, particularly for youth, is fundamental to addressing this problem. Accordingly, the NDP maintains that increasing the occupational skill level of the Canadian labour force—and especially that of youth—requires improved access to employment training programs.

3.1     Improving access to LMDA training programs

During the study, most of the witnesses—including management and industry representatives—advocated for expanded access to the training programs funded by the LMDAs.

“There are some individuals who wouldn't qualify for EI benefits or EI reach back and therefore aren't really ready for that LMDA program or don't qualify. They're not [eligible for Labour Market Agreement programs] either.

“Yet, that group in the middle has the best outcome of success statistically. The widening of programs is really important to be more inclusive.”[7]

The Minister of Employment and Social Development himself mentioned this idea and went even further, asking whether access to Employment Insurance (EI) and LMDA-funded training programs should be expanded by reducing the number of hours required to qualify.[8]

The NDP believes we need to expand access to LMDA-funded labour force training programs by reducing the number of hours required to participate.

Recommendation 5: That the government work with the provinces and territories to revise the eligibility criteria for Labour Market Development Agreement employment benefits in order to make precarious workers eligible and provide the broadest possible access to training programs funded by Labour Market Development Agreements.

The NDP is disappointed with the report’s fourth recommendation – that LMDA funding be reviewed based on demonstrated savings to the EI Operating Account – considering that the Minister of Employment and Social Development was the only witness to mention this idea.[9]

Lastly, the NDP wishes to reaffirm that improving access to LMDA-funded training programs also entails ensuring that everyone can take the training programs, including individuals in minority language communities. The NDP recommends that the LMDA language clauses contain implementation and accountability measures.

Recommendation 6: That the federal government work with the provinces and territories to include in the Labour Market Development Agreements language clauses that specify implementation and accountability measures should be taken, respecting parts IV and VII of the Official Languages Act. These clauses should mention the need to consult and collaborate with key stakeholders in minority francophone and Acadian communities to ensure that the Labour Market Development Agreements meet their specific needs.

3.2     Eligibility period

The NDP believes that individuals taking employment training need financial support to improve their chances of completing the training and obtaining employment.

A great many witnesses underscored the absolute necessity of granting access to EI benefits for the duration of employment training programs so that individuals can meet their long-term needs while undergoing training.

“As well, we are recommending that the EI part I benefits be extended to the full duration of the LMDA training program.”[10]

Recommendation 7: That the government match the duration of Employment Insurance benefits to the duration of training programs funded by Labour Market Development Agreements.

3.3     Interprovincial mobility

The NDP believes it is important to encourage interprovincial labour mobility while respecting the specific needs of the provinces and territories.

Numerous witnesses argued for measures to promote labour mobility for both training and employment purposes. Some recommended concrete measures to assist individuals interested in moving to another province.

The NDP has proposed such support, including in Bill C-201, introduced by the NDP MP for Hamilton Mountain. Most of the proposed solutions took the form of financial aid.

Recommendation 8: That the government study the benefits and costs of providing financial support to individuals interested in moving to another province or territory in order to fill available jobs or take training.

3.4     Employer engagement in skills development and training

The NDP believes that, to overcome the labour force training challenges Canada currently faces, employers must substantially increase their skills development efforts. During his appearance, the Minister himself underscored the merits of this approach.

“Some of the principles that we think are useful include a greater participation of employers in the training process, trying to leverage increased employer investment in skills development and job training.”[11]

To that end, the NDP supports the reintroduction of an LMDA-funded internship program, targeting youth in particular.

Recommendation 9: That the government assess the possibility of involving employers more directly in the delivery of training, including the reintroduction of a workplace internship program during the Employment Insurance benefit period and/or offering tax or financial incentives for businesses providing on-site training (that meets certain criteria, to be defined). One of criterion could be the transferability of acquired skills and knowledge from one business to another.

Finally, the NDP maintains that we must support employers—especially small and medium-sized businesses—that demonstrate a willingness to hire and train youth, particularly in regions with noticeably high unemployment rates.

Recommendation 10: That the government create a youth hiring and training tax credit targeted at small and medium-sized businesses and regions with noticeably high unemployment rates.