The upcoming federal budget will see a doubling of funding for a union training program and the introduction of a refundable tax credit for personal support workers (PSWs).
The government aims to enhance union-based apprenticeship training for Red Seal trades by increasing the federal Union Training and Innovation Program (UTIP) for three years.
The UTIP funding will be doubled from $25 million to $50 million annually, fulfilling a long-standing promise by the Liberal Party. This commitment was also echoed by Conservative Leader Pierre Poilievre during the campaign.
John Zerucelli, Secretary of State for Labour, stated, “Our new government is investing in Canadian workers, creating high-quality careers, and accelerating project completion.”
Additionally, a new temporary tax credit for PSWs will enable eligible workers to claim a refund on their taxes equal to five percent of their eligible earnings, up to a maximum of $1,100 per year for five years. Specific eligibility criteria were not provided in the program announcement.
Zerucelli emphasized the importance of the PSW tax credit, stating, “It demonstrates genuine respect for individuals who dedicate themselves daily to caring for our loved ones.”
Minister of Jobs and Families Patty Hajdu revealed that the PSW tax credit is supported by $1.5 billion over five years during a separate news conference.
Kelly Stephenson, a veteran PSW and member of the Service Employees International Union (SEIU), highlighted the financial struggles faced by healthcare workers in the industry.
The union training funding and the new tax credit form part of a series of budget measures unveiled by Zerucelli ahead of Prime Minister Mark Carney’s government presenting its first budget on November 4.
Other measures include a $97 million investment over five years to establish a fund for recognizing foreign credentials and imposing stricter regulations on non-compete agreements in employment contracts for federally regulated businesses.
Carney has hinted at potential sacrifices in the upcoming budget, which is anticipated to feature a climate competitiveness strategy, a new immigration plan, and an international talent attraction strategy.
The Liberal government will require support from at least one other party to pass the budget, as it is a confidence vote that could trigger a new election if unsuccessful.
Liberal House leader Steven MacKinnon revealed in an interview on Rosemary Barton Live that the government currently lacks the necessary votes to secure budget passage.
