The federal government’s upcoming budget will double funding for a union training program and introduce a refundable tax credit for personal support workers (PSWs).
The government intends to boost union-based apprenticeship training for Red Seal trades through an increase to the federal Union Training and Innovation Program (UTIP) for three years.
A doubling of UTIP from $25 million to $50 million annually has been a Liberal Party promise for years, while Conservative Leader Pierre Poilievre made a similar pledge on the campaign trail.
“Our new government is investing in Canadian workers, creating high-quality careers and getting things built faster,” said Secretary of State for Labour John Zerucelli.
The new temporary personal support workers tax credit will allow eligible workers to claim a refund on their taxes equal to five per cent of their eligible earnings up to a total of $1,100 per year for five years. Further details on how the government intends to determine eligibility were not included in a Monday news release announcing the program.
“PSWs remain amongst the lowest-paid workers in health care,” Zerucelli said. “It’s a tangible way to show respect, real meaningful respect, for people who show up every day to care for our loved ones.”
At a separate news conference on Monday, Minister of Jobs and Families Patty Hajdu said the PSW tax credit is backed by $1.5 billion over five years.
WATCH | Jobs Minister Patty Hajdu announces PSW tax credit:
Federal budget to include temporary tax-credit for personal support workers: Hajdu
As part of new budget inclusions to support Canada’s workforce, minister of jobs and families Patty Hajdu says next week’s federal budget will include a temporary refundable tax credit for personal support workers in provinces and territories not covered by an existing wage-enhancement agreement.
Veteran PSW Kelly Stephenson said health-care workers like her have been struggling financially for years.
“After the rent is paid and the grocery bills have been purchased, PSWs have little to nothing left,” said Stephenson, who is also a member of the Service Employees International Union (SEIU).
“I know PSWs who have gone homeless, who are sleeping in their cars, but still show up to work to take care of people’s families.”
In an email statement, the SEIU said PSWs often work multiple jobs to make ends meet, and most earn less than $25 an hour or $50,000 a year.
Part of pre-budget announcements
The funding for union training and the new tax credit are part of a suite of budget measures Zerucelli announced on Monday, about a week before Prime Minister Mark Carney’s government is set to table its first budget on Nov. 4.
Also among the measures announced Monday are plans to invest $97 million over five years to create a fund to help recognize foreign credentials and add new restrictions on non-compete agreements in employment contracts for federally regulated businesses.
Carney has indicated Canadians should prepare for “sacrifices” from the upcoming budget, which is expected to include a climate competitiveness strategy, a new immigration plan and an international talent-attraction strategy.
The Liberal government will need the co-operation of at least one other party in order to pass the budget. The budget is considered a confidence vote, meaning Canadians could be facing another election if it doesn’t pass.
In an interview on Rosemary Barton Live that aired over the weekend, Liberal House leader Steven MacKinnon said the government does not yet have the votes it needs to pass the budget.
