The upcoming major funding announcement from the federal government is expected to include support for new infrastructure, equipment, and recruitment efforts by unions and other organizations to train workers. Secretary of State for Labour, John Zerucelli, is set to disclose over $350 million in funding, as per a senior government official.
The funding, part of the “Team Canada Strong” initiative outlined in the spring economic update, aims to recruit, train, and employ 80,000 to 100,000 skilled trades workers with the Red Seal certification by 2030-31. This initiative seeks to address the annual shortage of over 20,000 skilled trades workers. The proposed funding will be distributed through the Union Training and Innovation Program (UTIP) and the spring economic update allocation across three different streams.
One stream will support investments in training equipment for organizations involved in Red Seal trades, with the government temporarily covering up to 70% of training equipment costs. Another stream will focus on infrastructure to aid in expanding or constructing union-run training centers nationwide. The third stream, innovation, will provide funding for ideas to recruit, retain, and train Red Seal trades, potentially incorporating technologies like artificial intelligence.
The formal announcement is scheduled for Thursday morning in Metcalfe, Ont. In the previous spring economic update, the government committed $6 billion over five years for worker recruitment, training, and hiring. Plans include wage subsidies for employers hiring apprentices, creating paid entry-level trades work leading to apprenticeships, and offering income top-ups and training completion bonuses for apprentices. Details of these plans and their rollout timeline are yet to be disclosed.
