Governments of Canada and Saskatchewan sign first Memorandum of Understanding to finalize job training deal

May 20, 2015, 12:01 ET from Employment and Social Development Canada

Deal will better align training to job opportunities in Saskatchewan

REGINA, May 20, 2015 /CNW/ - The Governments of Canada and Saskatchewan today announced that they have signed the first Memorandum of Understanding (MOU) in Canada and are now in final discussions to retool an existing federal-provincial job training deal. This deal will further align training to labour market opportunities in Saskatchewan. The Honourable Pierre Poilievre, Minister of Employment and Social Development, and the Honourable Jeremy Harrison, Saskatchewan Minister Responsible for Immigration, Jobs, Skills and Training, today signed an MOU to direct officials to finalize the deal.

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. 

The signing took place at Meridian Manufacturing Inc., a manufacturing company that specializes in storage and handling products to serve the agriculture, industrial and oil and gas sectors. Minister Poilievre and Minister Harrison took the opportunity to announce that approximately 770 workers in Saskatchewan are receiving training through the Canada Job Grant. To date, 145 employers in Saskatchewan have been approved for funding under the Canada Job Grant. The Canada Job Grant is providing 15 employees with leadership and management training at Meridian Manufacturing Inc.

Quick Facts

  • The Harper Government transfers over $2 billion annually to the provinces and territories through the Labour Market Development Agreements (LMDA) to provide skills training and employment services to all unemployed Canadians.
  • As the single largest labour market transfer to provinces and territories, these job training deals help over 600,000 Canadians annually.
  • $35.2 million is allocated toward the Canada–Saskatchewan deals 2015–16.
  • Saskatchewan is currently accepting employer applications for the Canada Job Grant. Employers are encouraged to apply at http://economy.gov.sk.ca/job-grant.

Quotes

"Our Government's top priorities are creating jobs, economic growth and long-term prosperity. The new generation of job training deals will result in greater employer engagement 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

"We want to ensure everyone in Saskatchewan has access to the training and employment services they need to fully participate in our strong, diversified economy. Funding provided through the Labour Market Development Agreement will ensure these programs and services are in place to help Saskatchewan people secure meaningful employment."
– The Honourable Jeremy Harrison, Saskatchewan Minister Responsible for Immigration, Jobs, Skills and Training

"With the assistance of the Canada Job Grant, our organization was able to introduce training programs that are significantly more effective and of higher quality than we had originally planned. Our employees will now have a better opportunity in enhancing their skills, which will in turn help us reach our organizational goals."
Miro Armeen, Human Resources Manager, Meridian Manufacturing Inc.

Associated Links

Labour Market Development Agreements
Canada Job Grant
Canada Job Grant (Saskatchewan)


Backgrounder


Labour Market Development Agreements

The Labour Market Development Agreements (LMDAs) provide over $2 billion in annual funding from the 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 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 Saskatchewan. 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.

 

SOURCE Employment and Social Development Canada