The forthcoming federal budget is set to increase funding for a union training program and introduce a refundable tax credit for personal support workers (PSWs). The government plans to enhance union-based apprenticeship training for Red Seal trades by boosting the federal Union Training and Innovation Program (UTIP) for three years. The UTIP will double from $25 million to $50 million annually, fulfilling a long-standing promise by the Liberal Party and a similar commitment made by Conservative Leader Pierre Poilievre.
Secretary of State for Labour John Zerucelli stated, “Our new government is investing in Canadian workers, creating high-quality careers and getting things built faster.” 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 were not provided in the program’s announcement.
Minister of Jobs and Families Patty Hajdu confirmed that the PSW tax credit is supported by $1.5 billion over five years. Veteran PSW Kelly Stephenson highlighted the financial struggles faced by health-care workers like her, emphasizing the significant challenges PSWs encounter despite their dedication to their work.
The funding for union training and the PSW tax credit are part of a series of budget measures announced by Zerucelli, aligning with Prime Minister Mark Carney’s upcoming budget presentation on November 4. Other announced measures include investing $97 million over five years to establish a fund for recognizing foreign credentials and implementing new restrictions 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 include initiatives such as a climate competitiveness strategy, a revised immigration plan, and strategies for 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. Failure to pass the budget could lead to another election, with the government currently lacking the necessary votes for approval as indicated by Liberal House leader Steven MacKinnon.