In the upcoming federal budget, the government plans to double the funding allocated to a union training program and introduce a refundable tax credit for personal support workers (PSWs). The aim is to enhance union-based apprenticeship training for Red Seal trades by increasing the federal Union Training and Innovation Program (UTIP) for three years.
The doubling of UTIP funding from $25 million to $50 million annually has been a long-standing promise of the Liberal Party, with Conservative Leader Pierre Poilievre also making a similar commitment during the campaign. Secretary of State for Labour John Zerucelli emphasized that the government’s investment aims to create high-quality careers and expedite construction projects.
Additionally, a new temporary tax credit for PSWs will allow eligible workers to claim a refund on their taxes equivalent to five percent of their eligible earnings, up to a maximum of $1,100 per year for five years. Details on eligibility criteria will be provided separately by the government.
Minister of Jobs and Families Patty Hajdu announced that the PSW tax credit is supported by $1.5 billion over five years. The initiative is intended to address the financial struggles faced by PSWs, who are among the lowest-paid healthcare workers.
The funding for union training and the PSW tax credit are part of a series of budget measures revealed by Zerucelli, ahead of Prime Minister Mark Carney’s government presenting its first budget on Nov. 4. Other measures include investing $97 million over five years to establish a fund for recognizing foreign credentials and implementing new regulations on non-compete agreements in employment contracts for federally regulated businesses.
Carney has cautioned Canadians to prepare for sacrifices from the upcoming budget, which is anticipated to include strategies on climate competitiveness, immigration, and international talent attraction. The Liberal government will require support from at least one other party to pass the budget, as it is a confidence vote that could potentially trigger an election if unsuccessful.
In a recent interview on Rosemary Barton Live, Liberal House leader Steven MacKinnon noted that the government currently lacks the necessary votes to secure the budget’s passage.
