HUMA committee briefing binder: Appearance of Deputy Minister Tremblay – February 7, 2023

2.a. Employment Insurance modernization

Issue

When will the plan for Employment Insurance (EI) modernization be presented, why were the temporary measures terminated before the modernization plan was announced or put in place, and is the EI program nimble enough to provide support to Canadians should a recession come?

Background

Temporary EI measures in response to COVID-19

On September 24, 2020, a set of temporary changes to EI rules were implemented to facilitate the transition for workers from the Canada Emergency Response Benefit (CERB) to EI during the COVID-19 pandemic. These 1 year measures came to an end on September 25, 2021.

On September 26, 2021, a suite of new EI temporary measures came into force for a 1 year period to support workers during the pandemic recovery period when jobs were sporadic and scarce. These measures were announced as part of Budget 2021 and included:

• a common entrance requirement of 420 hours for regular and special benefits (with corresponding changes to fishing and special benefits for self-employed), and
• simplified treatment of reasons for separation and monies paid on separation

This second set of EI temporary measures ended on September 24, 2022, after which the program has returned to regular EI rules.

Budget 2022 announced the extension of the parameters of the EI seasonal claimant pilot project that provides up to 5 additional weeks of regular benefits to seasonal EI claimants in 13 regions, until October 2023.

Budget 2022 also announced the implementation of the extension to the duration of EI sickness benefits from 15 to 26 weeks in summer 2022. This change came into effect on December 18, 2022.

EI modernization

In Budget 2021, the Government of Canada announced $5 million over 2 years to conduct targeted consultations on designing an EI program for the future.

Budget 2022 reaffirmed the Government’s commitment to EI modernization and to continuing consultations on how to build an EI program that better meets the current and future needs of workers and employers.

In 2021 and 2022, comprehensive consultations on the EI program were co-led by the Minister of Employment Workforce Development and Disability Inclusion (EWDDI) and the EI Commissioners for workers and employers. A phased approach was used for these consultations to support broad engagement with workers, employers, expert stakeholders and Canadians (Phase I: August 2021 to February 2022; Phase II: April 2022 to July 2022), including stakeholder roundtables, written submissions and an online survey.

Topics for the consultations included EI access and simplification, adequacy of benefits, supports for workers experiencing life events, workers in seasonal industries, supports for self-employed and gig workers, including artists and cultural workers, the Premium Reduction Program, and the financing of the EI program.

The What We Heard reports from the first and second phase of the consultations were published online (Phase 1 report – April 2022; Phase 2 report – September 2022).

The 2022 Mandate Letter for the Minister of EWDDI committed to bring forward and begin implementing a plan to modernize EI, taking into account input from consultations. This included a commitment to build a stronger and more inclusive EI program that covers all workers, including seasonal workers, new supports for the self-employed, adoptive parents, long-tenured workers and consideration of the realities of artists and cultural workers.

Work on the EI modernization plan is ongoing and changes to the EI program will be informed by what was heard during the consultations and lessons learned from the pandemic, including the EI temporary measures.

Key facts

On temporary EI measures

As a result of changing labour market and unemployment rates it is difficult to accurately estimate the number of Canadians that have been affected by the end of the temporary measures that ended in September 2022. Initial estimates indicated that:

• 241,000 new regular claims and 12,900 new special benefit claims annually could be affected by the end of the temporary 420-hour common entrance requirement
• approximately 47,000 claims annually could be affected by the end of the temporary reasons for separation measure, and
• approximately 90,000 claims annually could be affected by the end of the temporary monies on separation measure

On EI consultations

Across both phases of consultations:

• over 35 virtual Ministerial national and regional roundtables were held, co-led with the EI Commissioner for Workers and the EI Commissioner for Employers
• consultations had active participation from over 200 stakeholders: employer and labour groups, community organizations, sector groups, self-employed and gig-worker associations, parent and family associations, and academics
• over 1,900 individuals and organizations participated in the online survey
• over 160 written submissions were received, and
• additionally, a number of focused workshops with academics and experts were held on self-employed and gig-workers, seasonal work, and EI financing

On EI support during a recession

The current EI program is built to respond to changing economic conditions (for example, the entrance requirements, benefit rate, and benefit duration all vary based on the regional unemployment rate).

EI can also serve as an economic stabilizer, providing income stability and helping to maintain a certain level of consumer spending activity.

There is a suite of well-proven tools that are available within and outside of EI to support workers in case of recession, including proactive outreach to ensure individuals can quickly apply for and access their EI benefits, the Work-Sharing program, skills and training programs, etc.

Key messages

On EI temporary measures in response to COVID-19

On September 24, the EI temporary measures announced in Budget 2021 ended.

These measures were put in place for a 1-year period to address the challenges faced by many workers during the economic recovery from the COVID-19 pandemic when work was scarce or sporadic.

As of September 25, 2022, the EI program returned to the following regular rules on eligibility for benefits:

• regular benefits: Between 420 and 700 hours of insurable employment in the qualifying period, depending on the regional unemployment rate
• special benefits: 600 hours of insurable employment in the qualifying period
• fishing benefits: $2,500 to $4,200 in earnings from self-employment in fishing based on the regional unemployment rate, and
• self-employed special benefits: The earnings threshold for self-employed workers registered for special benefit coverage is $8,092 in self-employment earnings in the 2021 taxation year

The government’s overall plan for EI modernization will be informed by lessons learnt from the pandemic, including from these EI temporary measures, and what we heard during the 2 years of EI consultations.

On EI modernization

The EI program is a critical component of Canadians’ social safety net. However, it has not kept pace with the changing nature of work and the pandemic highlighted long-standing gaps with the program.

This is why we held comprehensive consultations on the modernization of the EI program with workers, employers, expert stakeholders and Canadians in 2021 and 2022. Feedback from these consultations was published in What We Heard reports.

We heard from stakeholders on how to make the program simpler, fairer, more accessible, more inclusive and more responsive, while remaining financially sustainable.

The development of a long-term plan on EI modernization is underway informed by input received during these consultations and lessons learned from the pandemic.

We have already taken important steps to modernize the program with the extension to EI sickness benefits from 15 weeks to 26 weeks for new claims as of December 18, 2022. This will provide additional weeks of income support to approximately 169,000 Canadians who need more time to recover from their illness, injury or quarantine before being able to return to work.

I understand that you are eager to see what our plan for EI modernization looks like. The Government is working hard to analyze the results of consultations to ensure that all stakeholders views are taken into consideration, and that we bring forward a plan that will make durable and meaningful reforms to the program.

However, as the consultations showed, EI is a complex program. Modernizing EI is a serious undertaking that requires significant consideration, and the Government is taking the time necessary to get it right.

EI is a complex system that services millions of Canadians each year, and modernizing it is a serious undertaking. At this stage, it would be premature to speculate on the timing of EI modernization and its content.

2.b. EI claims

Issue

What are the current service standards for Employment Insurance (EI) claims?

Background

Employment and Social Development Canada (ESDC) is the largest federal service delivery organization in Canada, delivering benefits and services to support Canadians at all stages of their lives. Since the beginning of the pandemic, ESDC has worked tirelessly to manage efficiently the processing of EI applications and call volumes and issued more than $36.4 billion in EI benefits in 2021 to 2022.

Service Canada’s key client service performance indicator for timeliness of EI claims processing is Speed of Payment (SOP). The target is to issue a payment, or notification of non-payment, to claimants within 28 days of filing their application for benefits, 80% of the time.

For 2022 to 2023 (as of January 14, 2023), Service Canada has received a total of 2.45 million new EI applications. This volume is within 1.1% of the forecast (3.05 million) for 2022 to 2023. Currently, Service Canada has 206,951 new applications pending. Of these, 65,604 (31.7 %) are 29 days or older.

For 2022 to 2023 (as of January 13, 2023), the EI Call Centre answered over 4.8 million calls. Service Canada forecast between 6.0 million and 6.5 million calls will be answered by EI Call Centre officers by the end of 2022 to 2023.

Key facts

Service Canada makes every effort to meet EI’s service standard of issuing a payment, or notification of non-payment, within 28 days of filing a new application, 80% of the time. However, there are situations that prevent the Department from meeting this objective, particularly during the annual summer and winter peak periods, or because of missing documents or incorrect information.

In 2021 to 2022, Service Canada issued 85.4% of EI payments, or notifications of non-payment, within the 28-day timeframe. This is the second highest result in the last 15 years.

So far, in 2022 to 2023, as of December 31, 2022, 76.7% of EI payments, or notifications of non-payment, were made within 28 days. The average number of days it took for a client to receive their first EI benefit payment was 24 days. For this same period, 1.81 million EI Initial and Renewal applications were processed, of which 1.47 million (81.4%) were processed within 35 days.

In 2021 to 2022, EI Call Centre officers answered 7.2 million calls, compared to 5.6 million calls in 2020 to 2021. The average wait time was 20 minutes, a significant reduction compared to the previous fiscal year, when it averaged more than an hour.

In 2022 to 2023, the year-to-date result as of January 13, 2023 is 39% of calls answered within 10 minutes and the average wait time is 19 minutes. The EI Call Centre has improved its accessibility to be near 100% for callers accessing the queue to speak to an agent, compared to 50% in 2020 to 2021.

On November 3, 2022, the Fall Economic Statement announced $1.02B for Service Canada to process EI and Old Age Security claims faster, while reducing the EI claim inventory. In addition, $574M was announced to reduce the EI and Pensions Call Centre wait times.

Key messages

The EI Program, including its Call Centres, remains at the forefront of the Government of Canada’s service to Canadians.

As Canada moves into a post-pandemic era, yearly peak periods of demand will continue to affect some Canadians as they wait longer for their claims to be processed and their calls to the EI Call Centre be answered.

Service Canada continues to put measures in place to ensure that Canadians have timely access to the EI benefits when they need it most.

If pressed

The EI program is one of the pillars of Canada’s social safety net and plays a pivotal role in the lives of Canadians, providing vital income support when they need it most.

In 2021 to 2022, Service Canada delivered $36.4 billion in direct EI benefits to ensure the economic and social well-being of Canadians.

While I cannot discuss individual cases, any clients who are waiting for a decision regarding their eligibility for EI benefits and are in an urgent or dire need situation should contact the EI Call Centre for assistance.

2.c. Employment Insurance – Sickness benefits

Issue

Will the Government grant a royal recommendation to Bill C-215 (Jacques Gourde, CPC), which proposes to amend the Employment Insurance Act (illness, injury or quarantine) to extend the number of weeks available under EI sickness benefits to 52?

Background

On November 25, 2022, Minister Qualtrough announced that the Government is permanently extending the number of weeks available under EI sickness benefits from 15 weeks to 26 weeks, as committed to in Budget 2021, to provide workers with additional time and flexibility to recover before their return to work. These extra weeks are available for new EI claims established on or after December 18, 2022.

EI sickness benefits provide workers (including self-employed workers who enroll in the program) with temporary income support when they are unable to work because of illness, injury or quarantine. The EI sickness benefit is designed to ease the financial burden on claimants so that they can focus on restoring their health and return to work.

Bill C-215 was introduced by Jacques Gourde (CPC) on November 22, 2021 and proposes to extend EI sickness benefits to 52 weeks. The bill passed at Second Reading in the House of Commons on June 15, 2022 and was referred to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) for consideration. Departmental officials appeared as witnesses before HUMA on October 19, 2022. At that meeting, the CPC, NDP and BQ all indicated support for the bill, arguing that 26 weeks of sickness benefits is not enough in the case of cancer or certain other serious illnesses.

On December 12, 2022, the bill proceeded to Third Reading in the House of Commons, where its status is ‘in progress’. The Speaker reminded members that a Royal Recommendation is required for Bill C-215 before the House proceeds to the debate at third reading since the bill appropriates part of the public revenue.

Given the Government announced the implementation as of December 18, 2022, of the extension of EI sickness benefits from 15 to 26 weeks.

Currently, the bill does not specify any date for its coming into force, which means that if passed by Parliament it would come into force on the day it receives Royal Assent. This would have systems implications and also impact the sequencing and implementation of other EI modernization measures.

Key facts

As a short-term income replacement, a 26-week benefit duration for the EI sickness benefit aligns with its policy intent of providing short-term income support and supporting labour force attachment for eligible claimants who are unable to work temporarily due to illness or injury.

The extension of EI sickness benefits from 15 weeks to 26 weeks will provide additional weeks of income support to approximately 169,000 Canadians who need more time to recover from their illness, injury or quarantine before being able to return to work. In 2020/2021, there were 450,350 claims for EI sickness benefits for a total amount of $2 billion paid in benefits.

In 2020/2021, on average, EI sickness benefits claimants collected 9.1 weeks of sickness benefits. However, one-third (33.3%) of claimants used the maximum entitlement of 15 weeks.

In 2020/2021, women received a slightly larger share of the amount paid in EI sickness benefit than men, with 55.5% and 44.5%, respectively. Women (36.2%) were generally more likely than men (30.0%) to use the maximum number of sickness weeks for claims completed in FY2021. This trend is expected to continue with the extension of EI sickness benefits from 15 weeks to 26 weeks.

The 2020 Evaluation Report of EI Sickness Benefits indicated that claimants are much less likely to return to work after taking more than 26 weeks of sick leave, close to half do not return to work. A majority of those who do return to work do so within 10 weeks of exhausting their EI sickness benefits.

In 2018, the Government extended the Working While on Claim provisions to the EI sickness benefit, which provides greater flexibility to workers experiencing an illness to keep more of their EI benefits if they choose to gradually return to work.

The Parliamentary Budget Officer (PBO) has released multiple legislative costing notes on EI sickness extensions, including on the 26 weeks extension announced by the Government in Budget 2021; the proposal in Bill C-265 to extend EI sickness to 50 weeks; the proposal in Bill C-215 to extend EI sickness to 52 weeks.

The March 29, 2022, PBO’s estimate that an extension of EI sickness benefits to 52 weeks would cost approximately $1.9 billion per year ongoing is roughly double the Government’s estimated cost of $1 billion for an extension to 26 weeks, as announced in Budget 2021.

Key messages

Extending EI sickness benefits from 15 weeks to 26 weeks will provide additional weeks of income support to approximately 169,000 Canadians who need more time to recover from their illness, injury or quarantine before being able to return to work.

The EI sickness benefit complements a range of other supports that are available for longer-term illnesses and disabilities in Canada, including benefits offered through employer-sponsored group insurance plans, private coverage plans held by individuals, long-term disability benefit available under the Canada Pension Plan, as well as provincial and territorial support programs.

For many years, stakeholder groups representing cancer patients and people with disabilities, such as Multiple Sclerosis, have been recommending an extension to EI sickness benefits and have welcomed the extension from 15 weeks to 26 weeks.

These extra weeks are available for new EI claims established on or after December 18, 2022.

2.d. Employment Insurance – Premiums

Issue

What is the Government doing to ensure that employment insurance (EI) premium rates remain stable and predictable for workers and employers and will the Government credit the EI Operating Account (EIOA) for costs of EI temporary measures during the pandemic?

Background

EI premium rate setting

The EI program is financed by premium contributions from employees engaged in insurable employment in Canada and their employers. Employers pay 1.4 times this rate and Quebec residents receive a premium reduction to account for the Quebec Parental Insurance Plan (QPIP) replacing EI maternity and parental benefits.

The EI premium rate setting process is carried out by the Canada Employment Insurance Commission (Commission), a tripartite organization representing business and labour groups along with the Government of Canada.

Since 2017, the Commission has set the EI premium rate according to a 7-year forecast break-even rate, determined by the EI Senior Actuary. This mechanism ensures that EI premiums collected are equal to the total amounts charged to that account at the end of a 7-year period.

The EI financing mechanism also limits annual changes to the EI premium rate to 5-cents. This, along with the 7-year break-even period, ensures affordability for premium payers while offering ongoing predictability and stability.

Given the economic impact of the COVID-19 pandemic, the Government used its authority under the EI Act to freeze the EI premium rate for 2021 and 2022 at the 2020 level.

On September 14, 2022, the Commission set the 2023 EI premium rate at $1.63 per $100 of insurable earnings. This represents the maximum 5-cent increase to the premium rate permitted under the Act (from $1.58 in 2022 to $1.63 in 2023). Thereby ending the 2-year freeze on premium rate increases.

In the 2023 Actuarial Report on the EI Premium Rate, released in August 2022, the EI Senior Actuary forecasted the 7-year break-even rate at $1.74 per $100 of insurable earnings.

Premium rates are expected to continue to increase in 2024 to reach a break-even rate that will pay down the costs of the current cumulative deficit in the EI Operating Account.

The costs stemming from the COVID-19 temporary measures total approximately $23.2 billion, with projected costs going into 2023 and 2024.

The Fall Economic Statement (FES) 2022, released by the Department of Finance in November 2022, revised the break-even premium rate projection for 2024 at $1.66.

IRPP report

The Institute for Research on Public Policy (IRPP) led a workshop on EI Financing on June 29 and 30, 2022, as part of phase 2 consultations on EI modernization. The workshop brought together various stakeholder groups representing workers and employers as well as academics to discuss how the EI program can remain financially sustainable through economic downturns all while increasing the generosity of the program.

The IRPP released a report: “Financing Employment Insurance Reform: Finding the Right Balance” and commentary: “Building a Package of Compromise Solutions for EI Reform” on December 7th, 2022.

The Report highlights several longstanding issues with the program and notes that there is no perfect solution to achieving the following 3 objectives:

• expanded coverage and generosity
• low, stable, and predictable premium rates, and
• ensuring the program breaks even without government contribution

On EI financing the IRPP recommends:

• shifting the break-even period from 7 to 10 years
• limiting the decrease in premium rates while the EIOA is in deficit
• crediting the EIOA from the Consolidated Revenue Fund (CRF) for the costs of the COVID-19 temporary measures
• increasing the Maximum Insurable Earnings threshold, and
• a trigger for future government contributions to the EI program

Key facts

The 2023 EI premium rate of $1.63 is at a historical low. It is 10-cents lower than it was between 2008 and 2010 and 25-cents lower than the 2015 EI premium rate of $1.88 per $100 of insurable earnings, having reached its lowest levels ($1.58) in 2020, 2021, and 2022.

With the 5-cent increase in 2023, workers earning at or above the maximum insurable earnings threshold are paying $49.71 more in premiums than they did in 2022, while employers are paying $69.59 more for each of their employees.

While the premium rate for 2024 will be determined by the EI Actuarial Report that will be released in August 2023, the latest public figures from the 2022 FES projected the EI break-even premium rate for 2024 at $1.66 per $100 of insurable earnings. If premiums were held at this rate, the EIOA would be brought to near cumulative balance by 2030. This is 8-cents lower than the forecast break-even rate of $1.74 per $100 of insurable earnings calculated by the EI Senior Actuary in the 2023 EI Actuarial Report.

These revised figures are due to several updated economic and labour market projections reported in the 2022 FES. For example, EI premium revenues are projected to grow at 11.7 per cent in 2022 to 2023. This is due to continued strength in the labour market, with the unemployment rate expected to be near pre-pandemic rates. Premium revenues from 2023 to 2024 to 2027 to 2028 are also expected to grow at an average of 4.2%, reflecting earnings growth and expected future increases to the EI premium rate.

The 2022 FES also projected a cumulative deficit of $26.7 billion in the EIOA by the end of 2022, $0.6 billion lower than what the EI Senior Actuary forecasted.

However, none of the projections for EI premiums and the EIOA cumulative deficit account for costs (expenditures and revenues) of any future measures that may be implemented as part of EI modernization, or future economic downturns. Implementing EI modernization will require additional premium rate increases at a time when many economists are predicting a recession. This could be mitigated by other measures to support the financial sustainability of the EIOA.

Key messages

The Commission sets the EI premium rate according to a 7-year forecast break-even rate, determined by the EI Senior Actuary. Annual adjustments to the premium are limited to 5 cents. This mechanism ensures affordability for premium payers while offering ongoing predictability and stability.

On September 14, 2022, the Commission set the 2023 EI premium rate at $1.63 per $100 of insurable earnings. This represents the maximum 5-cent increase to the premium rate permitted under the Act (from $1.58 in 2022 to $1.63 in 2023).

This rate remains at a historical low and is based on forecasts and estimates prepared by the EI Senior Actuary.

During consultations on EI modernization, stakeholders and experts raised the importance of ensuring the program remains affordable and identified various approaches to modernize EI financing. Keeping EI financially sustainable is 1 of the objectives of EI modernization.

The Government is currently developing a plan for EI modernization that is informed by input from the EI consultations, including on EI financing.

The Government remains committed to ensuring that the EI program is accessible, adequate, and affordable for employees and employers while remaining financially sustainable in the long-term.

If a question is raised on the difference between the projections in the Chief Actuary’s Report and the FES:

• the 2023 Actuarial Report on the EI Premium Rate, released in August 2022 forecasted the 7-year break-even rate at $1.74 per $100 of insurable earnings
• the 2022 FES, released in November 2022, revised this projected break-even rate at $1.66. This updated projection was based on the newest available information on the economic and labour market projections available at the time, and
• the 2024 rate will be set based on the information available in summer 2023 and these projections will be released by the EI Senior Actuary in August 2023

If question is raised on IRPP report on EI financing:

• on December 7, 2022, the IRPP released a report titled “Financing Employment Insurance Reform: Finding the Right Balance”. The report provides a summary of a workshop held in June 2022 with experts and stakeholders to discuss ways to modernize EI financing, as part of ESDC’s EI Modernization consultations
• the report looks at various proposals to reform the EI financing mechanisms to address concerns about the deficit in the account, prepare against future recessions and support modernization. The conclusions of the IRPP report are consistent with key messages heard during consultations about providing greater access to EI and adequate supports for workers, while remaining financially sustainable, and
• evidence and insights from research and academic experts help inform the policy development work underway on the modernization of the program, combined with the results of consultations with Canadians and stakeholders

2.e. One EI zone for Prince Edward Island

Issue

Should Prince Edward Island (PEI) be a single economic region for the purpose of the Employment Insurance (EI) program?

Background

In 2014, PEI was split into 2 EI economic regions: a capital region (Charlottetown) and a non-capital region to better reflect labour market conditions between the 2 areas. Since then, a number of stakeholders have commented on the change, including some calling for its reversal.

Bill S-236, An Act to amend the EI Act and the EI Regulations (Prince Edward Island), was introduced in the Senate on February 21, 2022 by former Senator Diane F. Griffin (Independent) to amend the Employment Insurance Act (EI Act) and the Employment Insurance Regulations (EI Regulations) so PEI becomes 1 region again for the purpose of the EI program.

ESDC Officials appeared twice before the Senate Committee on Agriculture and Forestry that is in charge of studying the Bill:

• on June 16, 2022, ESDC officials responded to general questions about EI economic regions and the 2014 changes made in PEI. No question was asked about the financial impact of amalgamating the 2 PEI regions
• the Senate referred the Bill back to committee after the Office of the Parliamentary Budget Officer (PBO) released its legislative costing note for the Bill in August 2022, estimating a reduction in EI benefits paid to PEI of approximately $15 million per year if the current 2 EI regions in the province were amalgamated into a single region
• on November 17, 2022, ESDC officials appeared in front of the committee a second time to respond to questions related to the estimated impacts of merging the 2 PEI regions

The Canada Employment Insurance Commission (Commission) is required to initiate a review of the boundaries of the EI regions every 5 years to determine if it is appropriate to make changes to them. This requires extensive analysis of labour market and geographic data. ESDC supports the Commission in that role.

EI regional boundaries are based on Statistics Canada’s Census geography. EI regional boundaries generally separate large metropolitan areas from rural areas, and group together rural regions that have similar labour market conditions so that people residing in similar labour markets face comparable EI rules.

The last boundaries review began in 2018 and was completed in 2021. The analysis for the review was done by the Department on behalf of the Commission, which issued a resolution in 2021 that the analysis was complete.

In July 2021 the Minister was provided with a copy of the report including findings from both phases of this boundaries review. Copies of this report were provided to the Senate Standing Committee for Agriculture and Forestry in December 2022, following their request to the Minister regarding Bill S-236.

Key facts

For the period of January 8, 2023 to February 11, 2023, the unemployment rate that will be used for the purposes of the EI program for Charlottetown is 4.5%, while the unemployment rate for the rest of PEI is 8.2%, representing a 3.7 percentage point difference in the unemployment rate between the 2 regions. If the 2 EI regions had been combined, the resulting unemployment rate for the entire province would have been around 6.3% for that period, impacting claimants’ eligibility, benefit rate and duration of benefits calculation.

Given the labour market differences between Charlottetown and the rest of PEI, amalgamating the 2 EI economic regions would result in less EI benefits paid to claimants residing outside of Charlottetown, while minimal gains would be made for claimants residing in Charlottetown.

Analysis done by ESDC estimates that, if the 2 regions in PEI had been amalgamated in 2022, it would have resulted in a net loss of about $12.6 million in EI benefits paid in the province in that year. This is generally consistent with the Office of the PBO analysis.

The Bill currently debated in the Senate would circumvent the existing regulatory process that allows the Commission, with the approval of the Governor in Council (GIC), to make changes to regions, taking into account impacts on all regions.

The most recent EI regional boundary review concluded in June 2021. Results of the assessment will help inform the Government on whether regions should be modified to better reflect regional labour market characteristics. The next review is expected to start in 2023.

Key messages

The purpose of the EI economic regions is to ensure that people living in areas with similar labour market conditions are treated the same in terms of eligibility, benefit rate and length of benefit entitlement.

The Commission is responsible for establishing the boundaries of the EI regions and, according to EI regulations, they must be reviewed at least once every 5 years to ensure they continue to reflect regional labour market characteristics.

Employment and Social Development Canada supports the Commission in undertaking the review using Statistics Canada data and other labour market information. The analysis assesses whether or not the current EI economic regions continue to reflect regional labour market characteristics.

The Commission may make recommendations to the Minister responsible for EI regarding changes.

Amalgamating PEI into a single EI economic zone, as proposed by Bill S-236, would replace the 2 regional unemployment rates with a single unemployment rate for the province. This alternate configuration of EI boundaries in PEI was analysed as part of the most recent EI boundary review completed by the Commission and the 2021 report indicates that it would result in less labour market homogeneity in the region than what exists in the current 2 regions. For some claimants in the Charlottetown area, a single EI region in PEI would mean less hours to qualify and higher benefit rates and duration, while it would be the opposite for claimants in rural areas due to the lower unemployment rate of the combined region.

The department will continue to monitor and analyze labour market trends as they arise throughout the country. The next boundary review is expected to start in 2023.

If pressed, did ESDC officials purposefully mislead Senators when discussing S-236

I would like to thank the officials from my department who appeared in front of the Senate Committee on Agriculture and Forestry to support the discussion on Bill S-236.

I am confident that these officials responded to the questions asked by Senators to the best of their knowledge and with the information they had at their disposal at the time.

2.f. EI regions and boundaries – Questions and answers

EI Economic regions

• Q1: What are Employment Insurance (EI) economic regions?
• Q2: What is the purpose of EI economic regions?
• Q3: How are EI boundaries determined?
• Q4: Under regular EI rules, how does an individual’s eligibility, entitlement and the benefit rate for EI benefits vary based on the EI economic region?

EI Boundary review

• Q5: What is the EI Boundary Review?
• Q6: When was the last boundary review conducted?
• Q7: How does the boundary review consider seasonal workers?
• Q8: What approach and data sources are used to analyse the boundaries and determine if changes should be made?
• Q9: Why were changes made to the boundaries of Prince Edward Island (PEI) in 2014?
• Q10: Why were changes made to boundaries in 2014 outside of a formal boundary review?

Impacts of amalgamating Prince Edward Island

• Q11: What were the costing impacts published in the Regulatory Impact Analysis Statement (RIAS) in 2014 for the creation of the 2 EI economic regions in PEI?
• Q12: What is the Department’s current analysis of the costing impacts of amalgamating PEI into a single EI region?
• Q13: What explains the difference between the 2014 RIAS estimate and the 2022 estimates?
• Q14: How does the initial 2022 ESDC estimate compare to the Office of the Parliamentary Budget Officer (PBO) fiscal analysis of the bill?
• Q15: How would amalgamating the 2 regions result in changes to EI benefits for claimants?
• Q16: How does ESDC estimate the costing of EI measures?
• Q17: What were the 2018-2021 Boundary Review Results for PEI?
• Q18: How is the unemployment rate calculated for EI purposes?

Other

• Q19: How many EI claimants were there in Prince Edward Island pre-pandemic?
• Q20: What is the Canada Employment Insurance Commission (CEIC)?

EI economic regions

Q1: What are Employment Insurance (EI) economic regions?

Under the EI program, Canada is currently divided into 62 economic regions. The regional unemployment rate within each region determines EI eligibility, benefit rate and length of benefit entitlement.

However, as part of the temporary 1-year measure that came into effect on September 26, 2021, a common entrance requirement of 420 hours was introduced for EI benefits for all EI economic regions. This measure ended on September 24, 2022.

Q2: What is the purpose of EI economic regions?

The purpose of the EI economic regions is to ensure that people residing in areas with similar labour market conditions are treated the same under the EI program in terms of eligibility, benefit rate and length of benefit entitlement.

Q3: How are EI boundaries determined?

Under the Employment Insurance Act (EI Act), EI regional boundaries are based on Statistics Canada’s Census geography. EI regional boundaries generally separate large metropolitan areas from rural areas, and group together rural regions that have similar labour market conditions so that people residing in similar labour markets face comparable EI rules.

Q4: Under regular EI rules, how does an individual’s eligibility, entitlement and the benefit rate for EI benefits vary based on the EI economic region?

Depending on their regional rate of unemployment, insured individuals require between 420 and 700 hours of insurable employment in the 52 weeks preceding their claim, or since their last claim, whichever is shorter, to qualify for EI regular benefits. Eligible individuals are entitled to between 14 and 45 weeks of EI regular benefits, depending on the rate of unemployment in the EI economic region and the number of hours worked in the qualifying period.

When a region’s unemployment rate rises, the entrance requirement is reduced and the duration of benefits increases. Therefore, the amount of assistance provided increases and support adjusts to the changing needs of regions and communities.

The calculation of weekly benefit rates for both EI regular and special benefits also takes into account differences in regional labour market conditions. It is based on the regional rate of unemployment. Specifically, EI benefits are calculated using the best (highest) weeks of earnings during the qualifying period (generally 52 weeks). The number of weeks used ranges from 14 to 22 depending on the unemployment rate in a particular EI economic region.

EI boundary review

Q5: What is the EI Boundary Review?

EI Regulations require that the boundaries for EI economic regions be reviewed at least once every 5 years to ensure they continue to reflect regional labour market characteristics.

The Government provides its analysis to the Canada Employment Insurance Commission (CEIC) which is responsible for reviewing the EI boundaries to determine if changes are needed.

The Commission reviews the boundaries of the EI economic regions every 5 years to determine if changes would be appropriate. They may make recommendations to the Minister responsible for EI regarding the changes that could be made.

The EI regional boundary review uses a variety of methods to examine and compare the labour markets within a regional EI boundary. Statistics Canada data and other labour market information is analyzed and compared with labour market conditions across the country. The analysis assesses whether or not the current EI economic regions continue to reflect regional labour market characteristics.

Q6: When was the last boundary review conducted?

The most recent review commenced in the fall of 2018 and concluded in June 2021. The next review will start in 2023.

Q7: How does the boundary review consider seasonal workers?

The purpose of the EI economic regions is to ensure that people residing in similar labour markets are treated similarly by the EI program.

The latest boundary review considered numerous factors, such as the unemployment rate, the industry mix and the seasonality.

Q8: What approach and data sources are used to analyse the boundaries and determine if changes should be made?

The EI economic regions must be based on Statistics Canada geographic units. Large urban areas, currently defined as census metropolitan areas, are designated as their own EI region. The remaining areas are grouped into relatively homogeneous, contiguous areas with similar economic conditions based on economic variables such as unemployment and employment rates, average wages, average weeks worked, low-income incidence, and seasonality.

The data for these variables comes from the Labour Force Survey, the Census of Population, and income tax and benefit returns.

Q9: Why were changes made to the boundaries of Prince Edward Island (PEI) in 2014?

When the change to the regions in PEI was made in 2014, the difference in the unemployment rate between the new Charlottetown economic region (8.0%) and the new economic region of PEI (11.7%) was 3.7 percentage points. As a result, a similarly placed EI claimant in the new PEI region was entitled to more EI than a claimant in the new Charlottetown region.

By comparison the rate for the old (aggregate) PEI region in the month preceding the change was 9.8% which was applied to all claimants in PEI at that time.

As of January 8, 2023 the EI unemployment rate in the EI economic region of Charlottetown was 3.7 percentage points lower than that in the EI region that consists of the rest of PEI.

Link to the 2014 RIAS

Q10: Why were changes made to boundaries in 2014 outside of a formal boundary review?

The change to EI economic regions occurred in 2014, outside of a boundary review.

Improvements in data availability allowed for the introduction of a new unemployment rate methodology in the territories to better reflect labour market conditions. Prior to this, the unemployment rate in each of the territories was administratively set at 25 percent for the purpose of the EI program.

As a result of analysis done with the newly available data, the territories were each split into capital and non-capital regions, effective October 12, 2014.

Recognizing capital and non-capital differences in the territories would have left Charlottetown as the only provincial or territorial capital without EI economic region status, PEI was also assessed.

Given that Charlottetown had at the time a significantly lower unemployment rate than the rest of the province, PEI Island was also divided into a capital and non-capital region on October 12, 2014.

Impacts of amalgamating Prince Edward Island

Q11: What were the costing impacts published in the Regulatory Impact Analysis Statement (RIAS) in 2014 for the creation of the 2 EI economic regions in PEI?

Analysis done for the 2014 RIAS estimated that, had the 2 regions been in effect in 2014, the change would have increased benefits for 9,150 EI claimants in the non-capital region of PEI (+$15 million), and decreased benefits for 5,450 EI claimants in Charlottetown (-$14 million), for a net difference of about $1 million.

Q12: What is the Department’s current analysis of the costing impacts of amalgamating PEI into a single EI region?

Recent initial analysis done by Employment and Social Development Canada (ESDC) estimates that, if the 2 regions in PEI were amalgamated in 2022, the payment of EI benefits would have decreased for 9,085 claimants residing in the rural, non-capital region of PEI (-$15.3 million) and increased for 2,635 claimants residing in Charlottetown ($2.7 million), for a net loss of about $12.6 million.

Q13: What explains the difference between the 2014 RIAS estimate and the 2022 estimates?

Three factors explain the difference in the estimates:

• the relative number of claimants in each of the 2 regions. Amalgamating the regions would increase benefits paid in Charlottetown and decrease benefits paid to the rural region of PEI. The percentage of EI claimants in the province that live in the rural PEI region has increased since 2014. The analysis done for the 2014 RIAS estimated that 69.7% of EI claimants in the province would live in the rural region. In the 2019/20 fiscal year, 77.7% of EI claimants in the province lived in the rural region
• the average gap in the EI unemployment rates in the 2 regions has fluctuated significantly since 2014, with monthly gaps ranging between 0.1 percentage points and 8.6 percentage points. A larger unemployment gap between the 2 regions increases the magnitude of the increases and decreases in benefits from the amalgamation of regions
• the EI maximum insurable earnings have increased by 24% since 2014, from $48,600 (max weekly benefit rate of $514) to $60,300 (max weekly benefit rate of $638). Increasing the maximum insurable earnings increases the average weekly benefit rate claimants can receive, which in turn increases the dollar value of any change to benefit qualification or duration

These 3 changes, taken together, would increase the percentage of claimants who are expected to experience a reduction in EI benefits if the 2 PEI regions are amalgamated into a single region. It would also increase the magnitude of these reductions in terms of qualifying and weeks of benefits, and increase the average dollar value of these lost weeks of benefits.

Q14: How does the initial 2022 ESDC estimate compare to the Office of the Parliamentary Budget Officer (PBO) fiscal analysis of the bill?

In its Legislative Costing Note, the Office of the PBO estimated the bill would generate around $76.6 million in savings for the Federal government between 2021 to 2022 and 2025-26. This represents, on average, approximately $15 million annually over that period.

This is generally consistent with analysis done by ESDC in 2022 found that, had the 2 regions been amalgamated during 2022, benefits would have decreased for 9,085 claimants (-$15.3 million), and increased for 2,635 claimants ($2.7 million), for a net loss in EI benefits paid to the province of PEI of about $12.6 million.

ESDC and the Office of the PBO use different models and assumptions. The costing from ESDC was performed by comparing 2 scenarios in a microsimulation model. The underlying sample used for the model is based on the calendar year 2018. Results are projected for 2022 using the Department of Finance forecasting variables for unemployment and weekly earnings.

Q15: How would amalgamating the 2 regions result in changes to EI benefits for claimants?

The EI program uses the unemployment rate in an EI economic region to determine the entrance requirements, duration of benefits, and, through the Variable Best Weeks’ provision, the calculation of weekly benefit rate.

EI regions with higher unemployment rates have lower entrance requirements and provide a longer duration of benefits.

Amalgamating the 2 EI regions in PEI would replace the 2 current regional unemployment rates in PEI with 1 single rate for the province:

• for claimants in the current rural PEI region, this new unemployment rate would be lower than their current regional rate of 10% (in effect as of November 6, 2022), resulting in a higher entrance requirement of insurable hours for these claimants. This could mean that some claimants residing in this rural PEI region may not have sufficient hours to qualify for benefits in an amalgamated region. Eligible claimants would also have fewer weeks of EI entitlement, and, for some claimants, a reduction in the weekly benefit rate:
  • for example, a claimant who lives in the current rural PEI region and who files an EI regular benefits claim between January 8 and February 11, 2023, would require a minimum of 595 hours of insurable employment to qualify. If the 2 regions in PEI were amalgamated, under the revised EI unemployment rate of 6.3% for the new single region, this claimant would require at least 665 hours to qualify and would be entitled to 4 fewer weeks of benefits than they would have received with the current EI regions. Their benefits would be calculated based on their 19 best weeks of earnings, whereas if the regions were amalgamated, under the new rate their benefits would be calculated using their best 21 weeks, which could result in a lower weekly benefit rate, depending on their work pattern
• for claimants in the current Charlottetown region, the new unemployment rate would be higher than their current regional rate of 4.5% (in effect as of January 8, 2023), resulting in a reduced entrance requirement of insurable hours for these claimants. This could mean that some claimants residing in Charlottetown who might not have qualified under the current regions could have sufficient hours to qualify for benefits in an amalgamated region. Eligible claimants would also have more weeks of EI entitlement, and for some claimants, an increase in weekly benefit rate
• see graph in annex for historical rates of the 2 EI regions in PEI and the amalgamated rate for the province, and for further details

Q16: How does ESDC estimate the costing of EI measures?

ESDC has developed an EI Micro-Simulation Model to assess policy options and their impact on the current EI program. This model allows ESDC to analyze the effects of complex interactions between changes to a single or multiple policy parameters and estimate program costs.

The Model supports a broad range of policy work. Almost every aspect of EI Part I benefits can be analyzed using this tool. In general terms, work could be done on the following program parameters:

• boundaries of EI economic regions
• entrance requirement, qualifying and pre-qualifying period
• entitlement received by qualified claimants
• calculation of the weekly benefit rate
• processing of weekly benefits (including allowable earnings and working while on claim)
• benefit supplements
• benefit repayment provisions; and
• employee’s penalties

Q17: What were the 2018-2021 Boundary Review Results for PEI?

The most recent EI boundary review analyzed the homogeneity of the unemployment rates and labour market conditions in all EI regions. These homogeneities were determined by comparing the unemployment rates and labour market conditions in the Statistics Canada census geographic units that comprise each EI region.

The results of this analysis were used to assess the impact of amalgamating the 2 regions on the unemployment rate and labour market condition homogeneities. Results found that an amalgamation of the 2 regions would result in a significant reduction in unemployment rate and labour market condition homogeneity compared to the current boundaries.

Q18: How is the unemployment rate calculated for EI purposes?

The regional rates of unemployment used by the EI program are produced by Statistics Canada using data from their monthly Labour Force Survey.

The monthly regional unemployment rates for EI purposes (except for the territories) are seasonally adjusted 3-month-moving averages.

The monthly regional unemployment rates for EI purposes in the territories are subject to the greater of a seasonally adjusted 3-month-moving average or 12-month-moving average.

Other

Q19: How many EI claimants were there in Prince Edward Island pre-pandemic?

For the 2019/20 fiscal year, PEI accounted for 1.2% of total EI claims (21,770).

PEI had average weekly benefits (all benefits under EI Part I combined) of $455, compared with $480 for Canada, and PEI claimants received $226 million in total benefits, which represents 1.3% of total EI income benefits.

EI regular claimants in PEI received $446 per week on average, while the average for regular benefits for all Canadians was $483 in 2019/20.

Q20: What is the Canada Employment Insurance Commission (CEIC)?

The CEIC is a tripartite organization with representatives from business, labour and the Government of Canada. The CEIC plays a leadership role, with ESDC, in overseeing the EI program.

Annex – Historical unemployment rates (3MMA) and labour force

Estimated impacts of amalgamating the PEI EI economic regions – EI regular benefit access, duration and entitlement

From October 2014 to January 2023, the monthly unemployment rate used for EI purposes has always been higher in the rural region of PEI than in Charlottetown:

• The smallest difference observed between the unemployment rates in the 2 regions was 0.1 percentage point, which was in effect in May 2022 (8.1% in Charlottetown vs 8.2% in PEI)
• The largest difference observed between the unemployment rates in the 2 regions was 8.6 percentage points, which was in effect in September 2017 (5.7% in Charlottetown vs 14.3% in PEI)
• In 2021, the average difference in the unemployment rates of the 2 regions was 3.8 percentage points, while the average was 3.2 percentage points during 2022

2.g. Bill C-37, Employment Insurance Board of Appeal

Issue

An Act to amend the Department of Employment and Social Development Act and to make consequential amendments to other Acts (Employment Insurance Board of Appeal) to enable the creation of the Employment Insurance (EI) Board of Appeal (BOA) was tabled by the Minister of Employment, Workforce Development and Disability Inclusion on December 14, 2022

Background

In August 2019, the Government announced significant changes to the EI and Income Security recourse processes. These changes included client-centric improvements within the Social Security Tribunal (SST) and a return to a locally-based tripartite decision-making model for first-level EI appeals (EI BOA) outside of the SST.

As the Government’s key priority was to support Canadians during the COVID-19 pandemic, the EI BOA and other legislative changes associated with the EI recourse process were delayed from the expected implementation date of April 2021.

As part of Budget Implementation Act, 2022, No. 1, legislative amendments were proposed to the Department of Employment and Social Development Act (DESDA) and consequential amendments were proposed to related legislation.

After hearing concerns from several stakeholders on the proposed legislation, the EI BOA related clauses of the proposed legislation were removed from the Budget Implementation Act, 2022 at the Standing Committee on Finance (FINA) on May 31, 2022.

At that time, the Minister of Employment, Workforce Development and Disability Inclusion committed to undertake further consultations and that new proposed legislation would be introduced in fall 2022.

The Government of Canada has committed to ensuring that reforms to the EI appeals process are informed by feedback from Canadians and stakeholder groups. The Government has undertaken several rounds of stakeholder consultations since 2017.

In summer 2022, the Government undertook another round of consultations with Canadians and stakeholder groups across Canada. Participants shared their views on the design of a new process to appeal an EI benefits decision and how an EI appeal hearing takes place.

These stakeholder consultations reviewed five main issues raised by stakeholders, examined possible solutions, and identified remaining concerns of the proposed legislation. In parallel, consultations in the form of an online survey open to the public was launched to review aspects of the EI appeal process. The outcome of these consultations informed the drafting of the proposed legislation.

Key facts

Departmental resources, Department of Justice drafters, and Privy Council Office finalized the drafting of the EI BOA legislation and received ministerial approval on December 12, 2022.

The first reading of the Bill occurred on December 14, 2022. The bill is eligible to be debated at second reading as early as January 30, 2023.

Key messages

The Bill entitled “An Act to amend the Department of Employment and Social Development Act and to make consequential amendments to other Acts (Employment Insurance Board of Appeal)” was tabled on Wednesday, December 14, 2022.

Through this Bill, it is proposed that the EI BOA would become responsible for hearing first-level EI appeals, which are currently heard by the Social Security Tribunal, EI General Division.

The EI BOA will operate as a tripartite decision-making tribunal comprised of representatives for the government, workers and employers, helping put first-level EI appeal decisions back into the hands of those who pay into the EI system.

Until the EI BOA is operational, the SST will continue to hear first level EI appeals. To ensure smooth operations following the launch of the EI BOA, there will be a transition period during which the new EI BOA and the SST will run in parallel.

3.a. Labour shortages and skills training

Issue

Canada’s labour market faces the simultaneous challenge of labour shortages in some sectors and regions, and skills shortages in others.

Background

The resurgence of the economy has exacerbated labour and skills shortages but the underlying drivers predate the pandemic. Canada’s rapidly aging population, global shifts toward greener, digital economies, and evolving skills requirements are long-term trends transforming its labour market and causing downward pressure on labour force growth, and skills gaps and mismatches.

Canada’s efforts to bolster and support the workforce are based on a human capital approach, which seeks to maximize four sources of labour supply:

1. supporting the transition of new entrants to the labour market, principally youth
2. welcoming talent from around the world – particularly immigrants, international students, and temporary foreign workers
3. increasing the participation of groups underrepresented in the labour market (that is, women, persons with disabilities, Indigenous peoples, youth, racialized Canadians, etc.), and
4. helping individuals already working who need upskilling and reskilling to adapt and stay in the labour force longer

Employment and Social Development Canada (ESDC) has a robust suite of programs and partnerships to help address labour shortages and skills gaps, and ensure that Canada has an inclusive and agile workforce that can thrive in a rapidly evolving labour market. For instance:

• Youth Employment and Skills Strategy (YESS), the Student Work Placements, and Canada Summer Jobs programs help young Canadians build job-relevant skills and connect with employers. These investments have benefited hundreds of thousands of youth, in particular those from underrepresented groups
• Indigenous Skills and Employment Training Program funds a network of over 110 Indigenous service delivery organizations with over 650 points of service to provide Indigenous peoples with training and supports to improve skills and secure employment
• Women’s Employment Readiness Pilot Program funds organizations to provide and test pre-employment and skills development supports for women in four groups: racialized and/or Indigenous women; women with disabilities; women from the LGBTQ2 community; and women with prolonged labour force detachment
• Sectoral Workforce Solutions Program funds projects that will help thousands of employers and connect Canadians with the training needed to access good jobs in sectors seeking skilled workers
• Community Workforce Development Program was also created to pilot and test innovative community-based approaches to connect employers and training providers as part of economic development efforts to upskill and reskill jobseekers to fill in-demand jobs in local communities

Collectively, these programs along with recent investments through Budget 2021 are bolstering the labour market participation of underrepresented groups and helping young Canadians build job-relevant skills and connect with employers.

Key facts

In Canada, training is a shared responsibility between the federal and provincial/territorial governments. The Government of Canada’s largest investment in training is through bilateral labour market transfer agreements (LMTA) with the provinces and territories (PTs). Each year, over $3 billion is provided to assist more than one million individuals and employers with training and employment supports.

As of November 2022, there were 823,485 job vacancies nationally, with shortages most acute in Ontario (308,490), Quebec (196,095), and British Columbia (134,070). Sectors with the highest job vacancies included health care and social assistance (134,040), accommodation and food services (107,535), retail trade (101,465), construction (73,980), and manufacturing (68,905).

To help address current and future labour shortages, and tackle skills gaps and mismatches, ESDC is leveraging and realigning existing tools, targeting new investments and working with all partners, including employers, unions, Indigenous communities, and PTs by:

• modernizing the LMTAs, the federal government’s most powerful lever for upskilling and reskilling workers, to support inclusive economic growth
• creating a simpler and fairer EI program that better meets the needs of the 21st century economy to provide a social safety net for Canadians as they go through career transitions, in times of economic growth or downturn
• redesigning and implementing the Canada Training Benefit to encourage a culture of lifelong learning and facilitate upskilling among Canadians

Building on these changes, the 2022 Fall Economic Statement recently announced investments that will also help job seekers and workers obtain the skills they need to thrive in a changing economy, including:

• $250 million over 5 years, starting in 2023 to 2024, for a Sustainable Jobs Training Centre, a new sustainable jobs stream under the Union Training and Innovation Program, and a Sustainable Jobs Secretariat to help Canadians acquire the skills to thrive in a net-zero economy; and
• $802.1 million over 3 years, starting in 2022 to 2023, to invest in jobs for young Canadians via the YESS. This will help young Canadians gain valuable skills and work experience, setting them up for a lifetime of success in the job market

Further details on all these measures will be provided in the first half of 2023.

Key messages

Labour market pressures are affecting practically all sectors of the economy and most regions of the country.

• In November, there were just over 820 thousand job vacancies in Canada with shortages most acute in Ontario, Quebec, and British Columbia. Sectors with the highest job vacancies included health care and social assistance, accommodation and food services, retail trade, construction, and manufacturing

As the economy evolves, addressing skills gaps, reducing skills mismatches and better utilizing available talent pools, will be critical to meet employment needs.

While market forces may reduce some labour market pressures in the short-term, the federal government has a role to play in supporting partners to address shortages, build our economy and prepare the workforce for the labour market of the future.

To this end, ESDC is positioned with tools and partnerships to support Canada’s labour market as it evolves, in times of economic growth or downturn, and according to the diversity of contexts that exist across the country. The department also continues to roll out investments that will support workers and businesses, and help build an agile and more inclusive workforce.

3.b. Labour shortages – Temporary Foreign Worker Program

Issue

Canadian employers are moving to fill more jobs with temporary foreign workers, in the face of a sustained labour shortage.

Background

The Temporary Foreign Worker (TFW) Program enables employers to fill labour and skills shortages on a temporary basis when Canadians and permanent residents are not available, while also protecting foreign workers while in Canada.

The TFW Program includes an assessment of the labour market impact and, as such, is designed to be responsive to changes in the labour market.

The Program is particularly important in seasonal work, and is a key source of labour for Canada’s agricultural sector. Other sectors that rely on the Program include meat and fish processing, tourism, trucking, construction, digital media and technology firms, among others.

Key facts

Since 2020, a number of measures have been taken to improve the Program’s flexibility and reduce administrative burden for employers. This includes the April 2022 announcement of the TFW Program Workforce Solutions Road Map. This Road Map marks the deepest reforms to the Program since 2014, and outlines five key policy changes:

• removal of the 6% Refusal to Process Policy, for low-wage occupations in the Accommodations and Food Services and Retail Trades sectors
• increasing the validity period for LMIAs from 6 months to 18 months
• extending the maximum duration of employment for High-Wage and Global Talent Stream workers from two years to three years
• temporarily allowing employers from seven sectors with demonstrated labour shortages to hire up to 30% of their workforce through the TFW Program for low-wage positions; permitting employers from other sectors hiring low-wage positions to hire up to 20% of their workforce through the TFW Program; and
• permanently increasing the maximum employment duration from 180 days up to 270 days, per year, for seasonal positions that are already exempt from caps on TFWs in their workforce

Recognizing the current labour shortages in Canada, the government announced, in Budget 2022, a number of additional measures to increase worker protections, reduce administrative burdens for trusted repeat employers, and to ensure that employers can quickly bring in workers to fill short-term labour market gaps. This includes funding to:

• introduce a Trusted Employer Model that reduces red tape for repeat employers who meet the highest standards for working and living conditions, protections, and wages in high-demand fields
• implement a new foreign labour program for agriculture and fish processing. This program will seek to address the power imbalance between employers and TFWs in these industries, including the establishment of more consistent rules for employers across streams
• increase capacity to process employer applications within established service standards; and
• improve the quality of employers inspections and hold employers accountable for the treatment of workers

Key messages

The Government of Canada recognizes the current challenges facing Canadian employers, as well as the vital role that temporary foreign workers play in key sectors of the Canadian economy, including across Canada’s supply chain.

The TFW Program is designed to be responsive to changes in the labour market, and enables Canadian employers to fill labour and skills shortages on a temporary basis when Canadians and permanent residents are not available.

Since 2020, a number of measures have been taken to improve the Program’s flexibility and reduce administrative burden for employers. This includes the April 2022 announcement of the TFW Program Workforce Solutions Road Map, which includes measures to help employers address current job vacancies across many sectors.

Recognizing the current labour shortages in Canada, the government announced, in Budget 2022, a number of additional measures to increase worker protections, reduce administrative burdens for trusted repeat employers, and ensure employers can efficiently hire workers to fill short-term labour market gaps.

Program policies are continuously reviewed to ensure they reflect the latest economic conditions. The Government of Canada is actively working with provinces and territories to understand and help meet their labour needs, while also ensuring the rights and protections of workers.

3.c. TFWP inspections

Issue

What is the government doing to increase the reach of Temporary Foreign Worker (TFW) Program inspections to the extent possible and to improve the quality of the TFW Program inspections?

Background

Since 2011, Employment and Social Development Canada (ESDC) has been working to adapt the compliance regime to meet evolving needs. The regime evolved from conducting paper-based reviews, to verifying employers’ compliance with 3 Program regulations in order to sustain their approved Labour Market Impact Assessment status. Presently, employers must demonstrate compliance with up to 28 conditions designed to better protect temporary foreign workers (TFWs) from abuse and exploitation. Findings of non-compliance result in administrative monetary penalties and, in some cases, bans from participating in the Program.

Many efforts to enhance the compliance regime were already underway prior to the pandemic; however, the realities of COVID-19 introduced a set of new issues and challenges for the Department. The impacts of this were highlighted in the Report on the Auditor General’s (AG) audit of the Department’s new quarantine and outbreak inspections conducted during the pandemic.

Report findings revealed issues in the timeliness of completing inspections, the quality of inspections, and proper documentation, with a focus on the impact to the health and safety of TFWs in the agriculture sector.

In response, the Department immediately began to make improvements to the quality, timeliness and reach of inspections, with efforts underway to rebuild the compliance regime.

Key facts

Budget 2022 announced $17.6 million to improve the quality of inspections, and to begin work on rebuilding the employer compliance regime.

To help improve inspection quality, the Department will use funding from Budget 2022 to invest in measures such as quality control and review functions, to better detect and correct substantive^{Footnote 3} errors within the inspection process. This allows for real-time improvements earlier in the inspection process. Between April 1, 2022 to January 15, 2023, 97% of inspections assessed were without substantive errors.

In addition to the quality control function, funding is also used to:

• modify IT tools, to allow for the better documentation of evidence
• implement enhanced training for inspection staff
• implement workload approach to target high risk areas and reduce inspection backlogs
• strengthen data capabilities to better identify high-risk areas, so that resources can be maximized and focused on cases with a higher-risk of non-compliance
• engage in outreach and engagement sessions, to increase awareness on TFW rights and employer obligations
• enhance reporting tools in place; and
• ensure greater collaboration efforts and information sharing with partners to facilitate more timely interventions

The quality control initiatives above will enable the increase in the reach of inspections, which means leveraging the Department’s compliance regime to attain maximum impact on the protection of the health and safety of TFWs.

Key messages

Resources from the combined Budget 2021 and Budget 2022 funding decisions will allow ESDC to maintain and build on efforts to help improve quality, timeliness and reach of inspections, and to embark on preliminary work to support the rebuild of the Employer Compliance Regime.

The Department has seen continuous improvement in the quality of its inspections since the Auditor General’s findings in 2021. We have introduced quality control functions that allow case monitoring throughout the inspection process, as opposed to at the end, which has had a significant impact on the Program’s ability to better identify administrative errors early on. This allows for earlier course correction, as needed.

In addition to improvements on inspection quality, our aim is to increase their reach – to leverage the entirety of the compliance regime’s activities, to maximize positive impacts to better ensure health and safety of TFWs. We are putting investments into outreach sessions to spread awareness on TFW rights and employer obligations; enhancing tools so that strong and user-friendly mechanisms are in place to report potential misuse of the Program; and increasing collaboration with partners to enable more timely interventions and actions by the appropriate authority, through enhanced information sharing.

The rebuild of the compliance regime takes into account the Auditor General’s recommendations, lessons learned during the COVID-19 pandemic, and builds on areas of improvement identified prior to the pandemic as needing strengthening – all with the objective to better protect TFWs and fairly hold employers accountable for the treatment of workers.

The Government of Canada takes its responsibility to protect the health and safety of temporary foreign workers very seriously. This includes helping to ensure they are provided with safe living and working conditions. The Program has a comprehensive compliance regime in place to protect temporary foreign workers by verifying that employers are meeting their obligations under the Program.

Annex: TFWP inspections – Supplementary statistics

Inspection case statistics

From April 1, 2022 to January 15, 2023:

• Cases created and completed: A total of 3,249 inspection cases were created and 1,461 inspections were completed
• Employers brought into compliance: 46% of employers were brought into compliance by educating them on their responsibilities and on how to provide acceptable justifications to the program.
• Employers found non-compliant: Of the 31 (31 of 1,461 = 2.12%) employers found non-compliant, 8 were found non-compliant and received a warning (8 of 1,461 = 0.55%), and 23 (23 of 1,461 = 1.57%) were assessed a penalty and/or program ban.
  • 2 employers were found non-compliant with COVID-19-related conditions
  • 30 employers found non-compliant were found non-compliant with pre-COVID-19-related conditions
  • Other inspections underway could increase the number of employers found non-compliant

Quality control

From April 1, 2022 to January 15, 2023:

A total of 355 inspections underwent Quality Control, which concluded that 346 (97%) were without substantive errors.

Outreach and engagement activities

In 2021 to 2022:

• A total of 7 sessions were delivered to raise program awareness.
  • This includes 3 employer focused sessions – reaching employers and associations that represent 90% of Agriculture employers from Nova Scotia, farmers with 96% of gate sales in British Columbia, and over 240 specialized jurisdictional groups and local unions; and
  • four sessions were conducted to raise awareness about temporary foreign worker rights.

So far in 2022 to 2023:

• A total of 16 sessions have been delivered.
  • This includes 12 employer-focused sessions, reaching over 71 farming partner organizations, 120 collaborators including universities, farming associations and provincial partners; and
  • four sessions on temporary foreign worker rights and the integrity process, reaching 16 foreign consulates, and CBSA
  • One session has been scheduled and 4 additional sessions are being planned to take place before the end of the fiscal year

3.d. Temporary Foreign Worker Program – Labour Market Impact Assessment processing

Issue

As the Canadian economy reopened after the COVID-19 lockdowns, the Temporary Foreign Worker (TFW) Program has been under increased pressure to deliver its mandate due to a sustained surge in demand from employers due to historically low unemployment and recent policy measures designed to address labour shortages.

Background

The TFW Program provides employers with access to foreign workers on a temporary basis when Canadians or Permanent Residents are not available.

The Program also protects temporary foreign workers while in Canada, and strikes a balance between protecting the Canadian economy, informing employers of their obligations, and protecting workers once they arrive.

The TFW Program is co-delivered by ESDC and IRCC, and co-administered with the Ministère de l’Immigration, Francisation et Intégration (MIFI) in Quebec.

The TFW Program is designed to be responsive to the Canadian labour market by ensuring that Canadians and Permanent Residents are first considered for available jobs.

The Labour Market Impact Assessment (LMIA) process is the key labour market test that provides the government with assurances that hiring temporary foreign workers will not have a negative impact on the Canadian labour market.

The LMIA also establishes Program conditions that identify standards to ensure the health, safety and protection of TFWs.

Budget 2022 announced access to $64.6 million over three years, beginning in 2022 to 2023, to improve the service delivery of the TFW Program by addressing increased volumes of LMIAs.

Key facts

The TFW Program faces increased pressure to deliver its mandate in light of a sustained surge in demand from employers. This surge is due to post-pandemic economic recovery, historically low unemployment, and recent policy measures designed to address labour shortages.

On April 4, 2022, ESDC implemented measures to address labour shortages through the Workforce Solutions Road Map, which includes making the Seasonal Cap Exemption permanent; increasing the validity of LMIAs from 9 months to 18 months; and, increasing the maximum duration of employment for High-Wage and Global Talent Stream workers from two to three years.

Further changes took effect on April 30, 2022. These changes included increasing the cap on low-wage TFWs as a percentage of an employer’s workforce from 10% to 20% for all occupations, and to 30% for sectors with labour shortages. Moreover, the Program removed a policy that automatically refused the processing of LMIA applications for low-wage occupations in the accommodations and food services and retail sectors, where there is an unemployment rate of 6% or higher.

These policy measures made more employers eligible for the Program and increased the number of TFWs they could hire.

As of January 15, 2023, the TFW Program has received 48% more LMIA applications overall than at the same point in the previous fiscal year, which was also a record year in terms of application volume.

The Quebec region has been particularly impacted, experiencing a 71% increase in year-over-year volume.

As the Program is co-administered the ministère de l’Immigration, Francisation et Intégration (MIFI) in Quebec, applications from employers in the Quebec Region take longer to process.

To meet unprecedented application volumes, the Program has ramped up productivity and set new processing records.

The Program has already processed 24.6% more files than it did during the entire previous fiscal year, and there are still months left in this fiscal year.

Year to date, the Program has improved its average processing time by 10.8 business days.

Currently, the weekly average as of January 15, 2023 indicates that employers are waiting 23.5 business days to receive an LMIA decision, compared to 40 days at the start of this fiscal year.

Key messages

The Labour Market Impact Assessment (LMIA) process is key to ensuring that hiring temporary foreign workers will not adversely affect the Canadian labour market.

The LMIA also establishes Program conditions that identify standards to ensure the protection of TFWs and prevent bad actors from accessing the Program.

The LMIA process takes into account any potential for wage suppression and displacement of Canadian workers. It is also key in reinforcing Program requirements related to wages, working conditions, employment standards and employer obligations to ensure the health, safety, and protection of migrant workers.

The Program aims to strike a balance between protecting the Canadian Labour Market, informing employers of their obligations and protecting workers once they arrive.

The Temporary Foreign Worker (TFW) Program has seen a record number of LMIA applications this fiscal year, due to a tight labour market and increased employer demand.

By obtaining and allocating additional funds, and through ongoing modernization, streamlining, and workload management, the Program has increased its processing capacity and improved service levels throughout this fiscal year, processing a record 87,685 LMIAs year to date (more than any of the previous fiscal years’ totals).

Through the use of streamlining measures, modernization and workload management, as well as the allocation of additional funds, the Program has significantly increased productivity and improved Labour Market Impact Assessment (LMIA) processing times.

3.e. Supplementary Estimates B: Anticipated questions based on the Parliamentary environment – DM binder

Q1. What is the status of other measures announced in Budget 2022?

Answer:

Budget 2022 proposed a number of measures to increase worker protections, further reduce administrative burdens for trusted repeat employers, and to ensure that employers can quickly bring in workers to fill short-term labour market gaps.

This included:

• $29.3M over three years to introduce a Trusted Employer Model that reduces red tape for repeat employers who meet the highest standards for working and living conditions, protections, and wages in high-demand fields
• $48.2M over three year to implement a new foreign labour program for agriculture and fish processing. This program will seek to address the power imbalance between employers and TFWs in these industries, including the establishment of more consistent rules for employers across streams
• $64.6M over three years to increase capacity to process employer applications within established service standards; and
• $14.6M in 2022 to 2023 to improve the quality of employer inspections and hold employers accountable for the treatment of workers

Work is underway on the development of the Trusted Employer Model and the new Agriculture and Fish processing stream, and updates will be shared as more information becomes available.

Q2. Will the Government make it easier to bring in TFWs to address the labour shortage?

Answer:

Since 2020, a number of measures have been taken to improve the program’s flexibility and reduce administrative burden for employers. This includes the April 2022 announcement of the TFW Program Workforce Solutions Road Map. This Road Map marks the deepest reforms to the Program since 2014, and outlines five key policy changes:

• Removal of the 6% Refusal to Process Policy, for low-wage occupations in the Accommodations and Food Services and Retail Trades sectors
• Increasing the validity period for LMIAs from 6 months to 18 months
• Extending the maximum duration of employment for High-Wage and Global Talent Stream workers from 2 years to 3 years;
• Temporarily allowing employers from seven sectors with demonstrated labour shortages to hire up to 30% of their workforce through the TFW Program for low-wage positions; permitting employers from other sectors hiring low-wage positions to hire up to 20% of their workforce through the TFW Program; and,
• Permanently increasing the maximum employment duration from 180 days up to 270 days, per year, for seasonal positions that are already exempt from caps on TFWs in their workforce

Recognizing the current labour shortages in Canada, Budget 2022 also announced a number of additional measures to increase worker protections, reduce administrative burdens for trusted repeat employers, and to ensure that employers can quickly bring in workers to fill short-term labour market gaps. This includes funding to:

Introduce a Trusted Employer Model that reduces red tape for repeat employers who meet the highest standards for working and living conditions, protections, and wages in high-demand fields;

• Implement a new foreign labour program for agriculture and fish processing. This program will seek to address the power imbalance between employers and TFWs in these industries, including the establishment of more consistent rules for employers across streams
• Increase capacity to process employer applications within established service standards; and

improve the quality of employers inspections and hold employers accountable for the treatment of workers.

Program policies are continuously reviewed to ensure they reflect the latest economic conditions. The Government of Canada is actively working with provinces and territories to understand and help meet their labour needs, while also ensuring the rights and protections of workers.

Q3. Will the government ease the administrative burden and processing delays for employers who are trustworthy and consistently use the program due to significant labour shortages in their industry and region? Trusted Employer model?

Answer:

Currently, the weekly average as of January 15, 2023, indicates that employers are waiting 23.5 business days to receive an LMIA decision, compared to 40 days at the start of this fiscal year.

Recognizing the current labour shortages in Canada, Budget 2022 announced a number of measures to increase worker protections, reduce administrative burden for trusted repeat employers, and to ensure that employers can quickly bring in workers to fill short-term labour market gaps.

This included an announcement of $29.3 million over three years to introduce a Trusted Employer Model that reduces red tape for repeat employers who meet the highest standards for working and living conditions, protections, and wages in high-demand fields.

Further details on this program will be announced in the coming year.

Q4. What is being done to ensure TFWs are informed of their rights? What is being done to keep them safe?

Answer:

The Government of Canada takes the protection of temporary foreign workers seriously, and several measures are in place to protect workers and the Program from abuse.

While in Canada, TFWs have the same rights to workplace protections as Canadians under applicable employment standards and collective agreements.

Employers are expected to uphold certain conditions and be aware of their responsibilities and obligations. They must regularly review the activities related to the employment of the TFW to ensure they continue to uphold the Program requirements and conditions. Employers must take action to rectify errors and/or non-compliance as soon as it is discovered and inform Service Canada of these issues and the actions that were taken. Should the non-compliance not be addressed or is found to be severe, the employer could be issued an administrative monetary penalty, and/or a ban from the Program.

To raise employers’ awareness of their responsibilities and TFWs’ awareness of their rights, the Department engages in outreach and awareness sessions.

• In 2021 to 2022, a total of 7 sessions were delivered to raise program awareness. This includes 3 employer focused sessions – reaching employers and associations that represent 90% of Agriculture employers from Nova Scotia, farmers with 96% of gate sales in British Columbia, and over 240 specialized jurisdictional groups and local unions; and 4 sessions were conducted to raise awareness about temporary foreign worker rights
• So far in 2022 to 2023, a total of 16 sessions have been delivered. This includes 12 employer-focused sessions, reaching over 71 farming partner organizations and 120 collaborators including universities, farming associations and provincial partners; and four sessions on temporary foreign worker rights and the integrity process, reaching 16 foreign consulates, and CBSA. One more session has been scheduled and four additional sessions are being planned to take place before the end of the fiscal year

The Department also works closely with its provincial partners on information sharing to collaborate on inspections to verify compliance with the TFW Program.

As part of the Government’s broader commitment to protecting temporary foreign workers from mistreatment and abuse, Budget 2021 committed $49.5M over three years to implement a new Migrant Worker Support Program to better support temporary foreign workers by addressing power imbalances between employers and workers.

This commitment builds on the $19.3M directed through non-profit organizations since 2019 to support temporary foreign workers across Canada by supporting community-based organizations that provide programs and services that meet the needs of migrant workers, including on-arrival orientation services, information on rights and responsibilities, and assistance in emergency and at-risk situations.

On September 26, 2022, new amendments to the Immigration and Refugee Protection Regulations also came into force. These regulatory amendments better protect TFWs and help prevent mistreatment and abuse during their stay in Canada by:

• Mandating that employers provide all TFWs with information about their rights in Canada
• Prohibiting reprisal by employers against workers, for instance against those who come forward with complaints
• Prohibiting employers from charging recruitment fees to workers and holding them accountable for the actions of recruiters in this regard; and
• Requiring employers to provide reasonable access to health-care services. Employers using the TFWP Program are also required to provide private health insurance when needed

These regulations further deter bad actors from participating in the program and improve the program’s ability to conduct inspections and administer consequences for those who do not follow the rules.

All workers in Canada deserve to be safe in their workplace, and the Government of Canada continually reviews activities under the TFW Program to ensure that worker rights and protections are upheld.

Q5: What is the government doing to increase the reach of TFWP inspections to the extent possible and to improve the quality of the TFWP inspections?

Answer:

The Department has seen continuous improvement in the quality of its inspections since the Auditor General’s findings in 2021. We have introduced quality control functions that allow case monitoring throughout the inspection process as opposed to at the end, which has had a significant impact on the Program’s ability to better identify administrative errors early on, so that course corrections can occur early on, as needed.

In addition to improvements on inspection quality, our aim is to increase their reach – to leverage the entirety of the compliance regime’s activities, to maximize positive impacts in an effort to better ensure health and safety of TFWs.

Budget 2022 announced $17.6 million to improve the quality of inspections, and to begin work on rebuilding the employer compliance regime.

To help improve inspection quality, the Department will use funding from Budget 2022 to invest in measures such as quality control and review functions, to better detect and correct substantive^{Footnote 3} errors within the inspection process. This allows for real-time improvements earlier in the inspection process. Between April 1, 2022, and January 15, 2023, 97% of inspections assessed were without substantive errors.

In addition to engaging in initiatives to improve the quality of inspections, work is also underway to improve the reach of inspections, which means leveraging the Department’s compliance regime to attain maximum impact on the protection of the health and safety of TFWs.

To help with this work, funding is being used to implement the following initiatives, which are enablers to improving both the quality and reach of inspections:

• modify IT tools, to allow for the better documentation of evidence
• implement enhanced training for inspection staff
• implement workload approach to target high risk areas and reduce inspection backlogs
• strengthen data capabilities to better identify high-risk areas, so that resources can be maximized and focused on cases with a higher-risk of non-compliance
• engage in outreach and engagement sessions, to increase awareness on TFW rights and employer obligations
• enhance reporting tools in place; and
• ensure greater collaboration efforts and information sharing with partners to facilitate more timely interventions

Q6: In terms of labour shortage, will the government expedite and streamline the arrival of temporary foreign workers for our Small and Medium-sized Enterprises (SME)?

Answer:

The Temporary Foreign Worker Program (TFWP) is designed to be responsive to the Canadian labour market by ensuring that Canadians and Permanent Residents are considered first for available jobs. When processing Labour Market Impact Assessments (LMIAs), the Program aims to strike a balance between protecting the Canadian Labour Market, informing employers of their obligations, and protecting workers once they arrive.

The TFW Program recognizes that employers need timely and predictable access to workers, and is continuously reviewing the administrative processes and the requirements of the program to find efficiencies and improve service delivery. Through the use of streamlining measures, modernization, and workload management, as well as the allocation of additional funds, the Program has significantly increased productivity and improved LMIA processing times.

Furthermore, the Department has also been prioritizing the processing of LMIAs with National Occupational Classification (NOC) codes for occupations identified as essential and critical for Canada, including occupations in the agriculture, agri-food, and health sector.

Currently, the weekly average as of January 15, 2023, indicates that employers are waiting 23.5 business days to receive an LMIA decision, compared to 40 days at the start of this fiscal year. It should be noted that the streamlining efforts do not affect the stringent checks undertaken through the process to keep workers safe and protect labour market conditions.

Employers are strongly encouraged to submit their LMIA applications through the LMIA Online system. LMIA Online introduces a host of benefits for applicants, such as the ability to save and retrieve copies of previously submitted LMIAs, a safe mechanism to upload documents to support their LMIAs, and automatic status updates from the moment their LMIA is submitted to the Department to the notification of a decision rendered.

Q7: Why is the government continuing to demand that businesses do labour market impact assessments when Quebec has already done them?

Answer:

The LMIA is the only labour market test that focuses on a specific job offer to ensure that it meets the complete regulatory framework under the Immigration and Refugee Protection Regulations.

Sectoral Labour Market Analysis conducted in Quebec, such as the ones performed by the Commission des partenaires du marché du travail (CPMT) or the Comités Sectoriels sur la Main-d’Oeuvre (CSMO), look at the labour market for an entire industry and do not focus on a specific job offer from a specific employer to ensure it meets Canadians standards.

While a broad and encompassing analysis may be useful to provide outlooks and statistical data for occupations within Canada, it does not ensure that Canadians are always given priority for any job opportunity before being offered to a foreign national.

The LMIA ensures that employers are able to fulfill their commitments before allowing them to hire a foreign worker. This helps support worker protection and prevent abuse by providing the TFW Program with authority for enforcement of employer obligations through the compliance regime.

The assessment conducted in Quebec as part of the co-delivery model for the Province is useful to the issuance of a LMIA, but is not sufficient overall because it only provides an assessment of the wages offered to the worker and the existence of a possible labour dispute.

The Province’s assessment alone cannot meet the regulatory framework established under the Immigration and Refugee Protection Regulations.

Furthermore, the LMIA conducted by ESDC allows better coordination with the Department for Immigration, Refugees and Citizenship Canada to ensure that the full continuum towards the admission of a foreign national can be monitored.

Q8: Does the TFW Program operate as a cost recovery program? If so, how much of its costs is it able to recover?

Answer:

Employers accessing the TFW Program must pay an LMIA fee per TFW position requested to help cover the cost of administering the program. However, there are fee exemptions set-out for certain applications, most notably those made under the program’s Primary Agriculture Stream.

Positions in primary agriculture are exempt given the industry’s longstanding domestic labour supply challenges and the potential downstream effects on national food security. As a result, the TFW Program, which is exempt from the Services Fee Act, operates on a partial cost-recovery basis.

With respect to fiscal 2021 to 2022, the program has costs of $131,237,758 and revenues of $80,596,00. Figures for 2022 to 2023 will not be available until the completion of the fiscal year, with precise dollar amount published annually, typically in the fall. This information is publicly available in the Fees Report

4.a. Bill C-22, Canada Disability Benefit Act

Issue

An overview of Bill C-22, the Canada Disability Benefit Act.

Background

The Government committed in the September 2020 Speech from the Throne, and again in the Minister of Employment, Workforce Development, and Disability Inclusion’s 2021 mandate letter, to improve the financial security of persons with disabilities by introducing a new disability benefit.

The Government of Canada reintroduced framework legislation for the new Canada Disability Benefit Act (Bill C-22) in the House of Commons on June 2, 2022. The goal of the proposed benefit is to reduce poverty and support the financial security of working-age persons with disabilities. Bill C-22 is framework legislation which means that many of the proposed benefit’s details—such as eligibility and benefit amount—will be detailed in future regulations once the Bill is passed.

In the spirit of Nothing Without Us, the framework nature of the legislation is allowing the Government to continue to engage with Canadians with disabilities as well as provinces and territories on aspects of the benefit’s design. Engagement activities began last summer with Ministerial roundtables and an online public survey. Furthermore, consultations with members of the disability community and other stakeholders have taken place throughout the winter and spring of 2022, and community-led consultations will continue over the coming months. Engagement is also taking place with the provinces and territories, who play a central role in providing supports and services for persons with disabilities.

Since its introduction, the Bill received unanimous, all-party support in its second reading and was referred to the House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) on October 18, 2022. HUMA reported back to the House of Commons on December 14, 2022 with 9 amendments to the Bill. These amendments provide that:

• the term “disability” has the same meaning as in the Accessible Canada Act
• the Minister must make public any agreements entered into with a department or agency of the Government of Canada or of a province
• regulations may be made that require that the benefit be indexed to the cost of living increase, and that provide for an application process that is without barriers, as defined in the Accessible Canada Act
• the Governor in Council must take the Official Poverty Line into consideration when making regulations regarding the amount of the benefit
• persons with disabilities must be provided with meaningful and barrier-free opportunities to collaborate in the development of regulations, and that the Minister must table a report in the House of Commons within six months of the Act coming into force on how that obligation was implemented
• the Minister must, within a year of the Act coming into force, table in both Houses of Parliament a report on progress made in the regulatory process
• a parliamentary review of the Act is to be undertaken as soon as feasible after the first anniversary of coming into force, the third anniversary of that day, and each subsequent fifth anniversary; and
• the Act must come into force no later than the first anniversary of the day on which it receives royal assent

The Bill is awaiting report stage and third reading in the House of Commons and will then proceed to the Senate.

Key facts

More than 6.2 million people, including just over 4 million who are working-age (18 to 64), identify as having a disability in Canada.

According to the 2017 Canadian Survey on Disability, 917,000 working-age Canadians with disabilities experience poverty—twice the rate of working-age Canadians without disabilities (23% vs 12% based on Canada’s Official Poverty Line, the Market Basket Measure). The rate increases with severity of disability, with 28% of persons with severe disabilities and 34% of persons with very severe disabilities living in poverty.

Persons with disabilities who are women, Indigenous Peoples, 2SLGBTQI+ people, visible minorities, living alone, and lone parents are also at particular risk of living in poverty.

Employment can be an important driver of social and economic inclusion, but is not enough to lift many persons with disabilities out of poverty. Many persons with disabilities are unemployed in the Canadian labour market with 59% of persons with disabilities aged 25 to 64 working compared to 80% of those without disabilities. Even with a job, many persons with disabilities continue to live in poverty. 13% of employed persons with disabilities live in poverty compared to 9% of employed persons without disabilities.

Existing federal supports for persons with disabilities are largely focused on children (through the Canada Child Benefit/Child Disability Benefit), people who were employed but can no longer work due to a severe and prolonged disability (through the Canada Pension Plan Disability benefit), and low-income seniors (through the Guaranteed Income Supplement, which supplements Old Age Security).

Key messages

The Government is very aware that many Canadians with disabilities are in desperate need of the additional financial support that the proposed CDB will provide. The intent, therefore, is to move forward as fast as possible while still taking the time to get things right and ensuring that Canadians with disabilities are involved.

We have heard through our consultations on the Benefit that many Canadians with disabilities are facing unimaginable choices on a daily basis, like whether to purchase the medications they need to manage their pain or, instead, to use that money to buy food for themselves and their families. This situation has only worsened with inflation. The proposed Canada Disability Benefit will help to ensure that they no longer have to make these choices. It will provide increased economic security and increased certainly, but also a sense of stability and peace of mind.

In the spirit of Nothing Without Us, the Government will continue to engage with Canadians with disabilities and other stakeholders to inform the design of the benefit and future regulations. As well, the Government plans to work with provinces and territories to reach clear agreements on how the proposed CDB and provincial and territorial benefits could be harmonized to work together to maximize assistance to persons with disabilities and maximize the impact on poverty.

Some stakeholders have called for an interim benefit to fill the gap while the CDB Act moves through Parliament and while the regulations are being developed. However, in order for the Government to provide an interim benefit, or disability support payments similar to the one issued in 2020, additional processes and procedures would be required. This would distract from and slow down the development and implementation of the CDB. Rather, the Government is focusing on getting the CDB out of the door as quickly as possible.

4.b. Disability Inclusion Action Plan

Issue

To provide an update on the Disability Inclusion Action Plan.

Background

The Disability Inclusion Action Plan was released on October 7, 2022, fulfilling commitments made in the 2020 Speech from the Throne and the Minister of Employment, Workforce Development, and Disability Inclusion’s 2021 mandate letter.

In the spirit of Nothing Without Us, the Plan was developed following extensive consultations with the disability community and reflects its priorities.

The Plan is a comprehensive, whole-of government blueprint for change whose objectives will be achieved through action across four pillars: financial security, employment, inclusive and accessible communities, and adopting a modern approach to disability in Government programs and services.

It seeks to advance the participation of persons with disabilities in all aspects of society and is key to realizing the Government’s goal of achieving a barrier-free Canada by 2040.

The Plan builds on new federal investments announced under Budget 2021 and Budget 2022 to make Canada more inclusive for persons with disabilities.

Investments under Budget 2021 include:

• $11.9 million over three years, starting in 2021 to 2022, to support consultations to reform the eligibility process for federal disability programs and benefits and support the design of a new disability benefit
• $129.2 million over two years, starting in 2021 to 2022 for the Enabling Accessibility Fund to improve accessibility in communities and workplaces across Canada
• $65 million in 2021 to 2022 for the Opportunities Fund and other funding for employment supports
• $376 million in additional support over five years, starting in 2021 to 2022, to make changes to the Disability Tax Credit

Investments under Budget 2022 include:

• $272.6 million over 5 years to support the implementation of an employment strategy for persons with disabilities through the Opportunities Fund to help address labour market shortages by increasing participation by persons with disabilities and making workplaces more inclusive and accessible
• $20 million to help Autistic Canadians and persons with intellectual disabilities find employment
• $25 million over 5 years to support the production of alternate format reading materials for people with print disabilities

Key facts

There are 6.2 million persons with disabilities in Canada. That is about 22% of the Canadian population. Persons with disabilities reflect the diversity and composition of the population of Canada, across age groups, ethnicity and race and gender. They face many longstanding social and economic inequalities.

According to the 2017 Canadian Survey on Disability, 917,000 working-age Canadians with disabilities experience poverty—twice the rate of working-age Canadians without disabilities (23% vs 12% based on Canada’s Official Poverty Line, the Market Basket Measure). The rate increases with severity of disability, with 28% of persons with severe disabilities and 34% of persons with very severe disabilities living in poverty.

Canadians with disabilities between the ages of 25 to 64 also have lower rates of employment (59%) than Canadians without disabilities (80%). For persons with severe disabilities employment rates are even lower, with rates decreasing as the severity of disability increases – ranging from 76% among those with mild disabilities to 31% for those with very severe disabilities.

Persons with disabilities contribute to the economy, to Canada’s culture, and to the core of the nation but face barriers to inclusion in the workplace and in communities, as well as attitudinal barriers. According to the Government of Canada’s 2019 Pilot Public Opinion Survey on Accessibility, 50% of Canadians with disabilities reported experiencing barriers that limit their ability to move around public buildings and spaces. Other areas where barriers are found include transportation, communication and when accessing programs and services.

Key messages

When Canadians with disabilities are able to fully participate in their communities, have the same quality of service from their government, have equal opportunities to work and enjoy the same quality of life as everyone else, all of Canada benefits. Through the release of its first-ever Disability Inclusion Action Plan in October 2022, the Government of Canada is taking concrete action to improve the lives of Canadians with disabilities and advance their full participation in society and in the job market.

The Disability Inclusion Action Plan was developed following extensive engagement with the disability community and reflects its priorities.

Actions under the Disability Inclusion Action Plan will help Canadians with disabilities find quality jobs, live a life free of barriers and improve their access to federal disability programs and benefits. It will also help lift many working-age Canadians with disabilities out of poverty.

The Government will work closely with the disability community to monitor and update the public on its progress to implement the Action Plan and meet its objectives.

4.c. Persons with disabilities seeking MAiD (Medical Assistance in Dying)

Issue

The disability community continue to raise concerns that expansion of eligibility under the Medical Assistance in Dying (MAID) regime is facilitating persons with disabilities to seek MAID because they live in poverty or are not getting the supports requested to live in dignity.

Background

In September 2019, the Superior Court of Québec, in its Truchon decision, ruled that the “reasonable foreseeability of natural death” (RFND) criterion in federal MAID legislation violated the Charter.

In January and February 2020, Minister Qualtrough, along with the Minister of Justice and Attorney General and Minister of Health, attended consultation meetings across Canada to discuss the Government’s response to the Truchon decision, including appropriate safeguards. Representatives of the disability community participated in these discussions.

In March 2021, the Government passed a law to remove the RFND criterion. This law also contains a provision excluding MAID for persons suffering solely from a mental illness that will expire on March 17, 2023. Minister Qualtrough fulfilled a key commitment in her 2019 mandate letter by supporting the Minister of Health and Justice in responding to the Truchon decision.

There have been frequent news stories domestically and internationally raising concerns that the March 2021 changes to remove the RFND criteria and the potential addition of mental illness, promote stigma and that persons with disabilities may seek MAID due to a lack of disability supports. These comments echo concerns that have been raised consistently by the disability community. In light of the upcoming expiration of the legal provision excluding MAID for persons suffering solely from a mental illness, many have expressed concerned about MAID being chosen as an alternative to inadequate mental health support services

The Government of Canada is taking steps to improve the financial security of persons with disabilities through the proposed Canada Disability Benefit as well as other actions to improve the lives of persons with disabilities through Canada’s first-ever Disability Inclusion Action Plan (Action Plan), released in October 2022.

Key facts

Since March 2022, the Special Joint Parliamentary Committee on MAID (AMAD) has been studying various topics related to MAID, including protections for persons with disabilities. AMAD’s final report is expected to be tabled on February 17, 2023.

Some representatives of the disability community appeared before AMAD as witnesses. These witnesses raised concern that the March 2021 changes to federal MAID law promote stigma against persons with disabilities, that there are inadequate safeguards under MAID, that insufficient consultations with the disability community have been undertaken and that MAID may be chosen as an alternative to adequate disability supports.

As required by changes to MAID law in March 2021, Health Canada made amendments to the MAID monitoring regulations to enhance data collection about vulnerable populations, including persons with disabilities. The regulations came into force on January 1, 2023. Data collected under the new regulations will be published in Health Canada’s 2024 Annual Report on MAID.

Health Canada is also planning to conduct policy-oriented research in 2023, with input from ESDC, to address data gaps, evaluate best practices, and enhance understanding of socio-cultural aspects of MAID in relation to disability.

The Government of Canada and the provincial and territorial governments share responsibilities for both MAID and supporting persons with disabilities. While federal MAID legislation sets out the framework for the legal provision of MAID in Canada, provinces and territories are responsible for oversight, delivery of health care services and regulation of medical professionals.

The Government continues to advance initiatives under the Disability Inclusion Action Plan. There is currently framework legislation for a new Canada Disability Benefit (Bill C-22) in the House of Commons. The goal of the proposed benefit is to reduce poverty and support the financial security of working-age persons with disabilities.

On February 2, 2023, the Government introduced legislation to extend the temporary exclusion of eligibility for MAID where a person’s sole medical condition is a mental illness until March 17, 2024. This extension would provide additional time to prepare for the safe and consistent assessment and provision of MAID and allow time to consider AMAD’s final report, expected in February 2023.

Key messages

While the Department of Health and Department of Justice are primarily responsible for federal MAID law and regulations, Employment and Social Development Canada continues to provide support to ensure that the perspectives of persons with disabilities are included in the dialogue and policy decisions on MAID. The Government has heard the concerns raised by the disability community and appreciates that more steps must be taken beyond improving safeguards and the monitoring system under MAID in order to foster inclusion and equality.

The Government of Canada and the provincial and territorial governments share responsibilities for both MAID and supporting persons with disabilities. The Government supports initiatives to address barriers faced by Canadians with disabilities, including legislation and policy, social and economic supports, and transfers provided to the provinces and territories.

The Government is also taking concrete action to support the social and economic inclusion of persons with disabilities through its first-ever Disability Inclusion Action Plan (Action Plan), released in October 2022.

The Government’s Action Plan, developed in consultation with the disability community, will help Canadians with disabilities find quality jobs, live a life free of barriers and improve their access to federal disability programs and benefits. It will also help lift many working-age Canadians with disabilities out of poverty.

5.a. Eliminating interest on student loans

Issue

Supporting learners and improving affordability of post-secondary education by eliminating interest accrual on Canada Student Loans and Canada Apprentice Loans.

Background

Unlike private lenders, the Government covers interest on Canada Student Loans and Canada Apprentice Loans while students are in school fulltime. Prior to the COVID-19 pandemic, the Government also covered interest for the first 6 months following studies, after which borrowers could choose a fixed or floating interest rate.

In November 2019, the interest charged on Canada Student Loans and Canada Apprentice Loans was reduced from prime plus 2.5% to prime (floating) and from prime plus 5% to prime plus 2% (fixed). To help mitigate the economic impact of COVID-19 on new graduates, a moratorium on payments and interest accrual on all Canada Student Loans and Canada Apprentice Loans was implemented for six months (March 30 to September 30, 2020). An additional one-year suspension of interest accrual on Canada Student Loans and Canada Apprentice Loans was introduced for fiscal year 2021 to 2022, which was later extended until March 31, 2023. This measure was subsequently made permanent through the 2022 Fall Economic Statement, to help ensure that borrowers’ student and apprentice loan payments remain manageable as Canadians face increased costs of living and rising financial pressures.

On December 15, 2022, Bill C-32, which included the measure to permanently eliminate interest accrual on student and apprentice loans as of April 1, 2023, received Royal Assent, fulfilling Minister Qualtrough’s mandate commitment to “permanently eliminate federal interest on Canada Student Loans and Canada Apprentice Loans”.

Key facts

The temporary elimination of interest accrual during the COVID-19 pandemic responded to acute financial pressures faced by Canada Student and Apprentice Loan borrowers. However, coming out of the pandemic, as inflationary pressures increase, rising education costs and higher prices for food, housing, and other necessities will make student and apprentice loan repayment more challenging.

Through an investment of $2.7 billion over five years and $556.3 million ongoing, this measure proposes to eliminate interest accrual on Canada Student Loans and Canada Apprentice Loans, starting on April 1, 2023. It will help approximately 1.2 million borrowers save $410 per year on average and better manage their loan repayments each year.

Key messages

The Government of Canada recognizes the importance of making post-secondary education affordable and accessible for all Canadians and is committed to ensuring that student and apprentice loan repayment remain manageable.

As post-secondary students and recent graduates continue to face economic pressure and uncertainty, including significant increases in the cost of living, the federal government committed to ease the burden on borrowers by eliminating the accrual of interest on Canada Student Loans and Canada Apprentice Loans.

On December 15, 2022, the Government introduced changes to the Canada Student Loans Act, the Canada Student Financial Assistance Act, and the Apprentice Loans Act to make the elimination of interest permanent. They received Royal Assent as part of the Fall Economic Statement Implementation Act, 2022 (Bill C-32).

How much will eliminating interest on student loans cost the government?

Through an investment of $2.7 billion over five years and $556.3 million ongoing, the government will eliminate interest accrual on Canada Student Loans and Canada Apprentice Loans, starting on April 1, 2023. This measure will help approximately 1.2 million borrowers per year.

How will students currently repaying their student loans be impacted by this new policy? Will it be retroactive?

Student loan borrowers will save on average $410 per year as a result of their loan being interest-free. This measure will apply to loans that are in repayment as well as loans that will be entering repayment in the future. Any outstanding interest that accrued on Canada Student Loans and Canada Apprentice Loans before April 1, 2023, will not be retroactively eliminated.

Will provincial governments follow suit and eliminate their interest on their portion of student loans?

The Government of Canada does not have any control over provincial student aid policies. That said, 6 of the 10 participating jurisdictions (BC, MB, NB, NS, PE, NL) do not charge interest on their loans.

Students from Quebec, Nunavut, and the Northwest Territories will not directly benefit from this measure as these jurisdictions do not participate in the Canada Student Financial Assistance Program. However, as set out in legislation, the 3 non-participating jurisdictions will receive compensation for this measure once it has been implemented, if their programs have “substantially the same effect” as this measure.

5.b. Canada Student Grant / Students living in poverty

Issue

Supporting students living in poverty and improving affordability of post-secondary education through Canada Student Grants.

Background

The Canada Student Financial Assistance Program is needs-based and aims to make post-secondary education more affordable for students from low- and middle-income families by providing non-repayable grants, repayable loans, and repayment assistance.

Canada Student Grants are targeted to students from low- and middle-income families, students with dependants, and students with disabilities. These grants are intended to support students who face the deepest financial barriers to accessing post-secondary education, including students living in poverty, without increasing their debt burden.

In 2016 to 2017, the federal government increased the value of Canada Student Grants by 50% for students from low- and middle-income families and part-time students (to up to $3,000 for a typical year for full-time students and $1,800 for part-time students), and expanded their eligibility so that more students could benefit.

In April 2020, Canada Student Grants were temporarily doubled as an emergency response to COVID-19, a measure that was extended until July 31, 2023, to continue supporting students in the face of a slow economic recovery.

Key facts

Canada Student Grants directly contribute towards easing the burden of affordability pressures for post-secondary education students. A full-time student from a family of four would be eligible for the maximum Canada Student Grant of $6,000 if their annual family income is below $66,360. Above this amount, Canada Student Grant amounts gradually decrease until being phased out when family income reaches $119,117.

In 2020 to 2021, 472,000 low- and middle-income students received the Canada Student Grant for Full-Time Students; 53,000 students with disabilities the Canada Student Grant for Students with Permanent Disabilities; and 81,000 students with dependants received the Canada Student Grant for Full-Time Students with Dependants.

Key messages

The Government of Canada recognizes the importance of making post-secondary education affordable and accessible for all Canadians.

Canada Student Grants are key to ensuring the affordability of post-secondary education, as they are non-repayable. They help foster access to post-secondary education, especially for those who are low-income, living in poverty, or debt averse, and assist in keeping debt loads manageable.

With inflation and housing costs, are the Canada Student Grant and other government programs providing enough support to sustain and encourage post-secondary education?

• The Government has increased the Canada Student Grants twice in the last six years to ensure that financial support keeps pace with rising costs.
• Building on the temporary interest waiver that has already been in place since April 2021, the Federal Government will permanently eliminate interest on all Canada Student Loans and Canada Apprentice Loans as of April 1, 2023. As such, the average student loan borrower would be able to save about $410 per year on interest payments.
• The Program has also recently announced enhanced eligibility to its Repayment Assistance Program by increasing the income threshold from $25,000 to $40,000. This allows students to pause their student loan repayment until they make at least $40,000 per year, and it reduces payments for those earning slightly above that threshold.

5.c. Skilled trades

Issue

What is being done to encourage an apprenticeship in the skilled trades as a Post Secondary Education (PSE) option?

Background

The Canadian Apprenticeship Strategy is an overarching framework for Employment and Social Development Canada’s apprenticeship initiatives that support a trades workforce that is skilled, inclusive, certified and productive. It aims to:

• promote the skilled trades as a good career option
• develop initiatives that help Canadians explore, prepare for, participate, and succeed in apprenticeship
• facilitate the participation of employers and unions in apprenticeship, and
• encourage innovative tools and approaches to better prepare pre-apprentices, apprentices and journeypersons for the jobs of tomorrow

A number of measures under the Canadian Apprenticeship Strategy are aimed at attracting youth to apprenticeship and the skilled trades.

• The Skilled Trades Awareness and Readiness Program provides $10 million annually to encourage Canadians, including groups that face barriers (for example, women, Indigenous people, newcomers to Canada, persons with disabilities and youth), to explore and prepare for careers in the skilled trades.
• Skills Canada is a national organization that works with employers, educators, labour groups and governments to promote skilled trades and technology careers to Canadian youth. Skills Canada receives approximately $9M annually from ESDC and has member organizations in each province and territory (P/T).
• The Apprenticeship Grants are intended to help apprentices progress and complete their training in Red Seal trades. Three types of grants are available: the Apprenticeship Incentive Grant, the Apprenticeship Incentive Grant for Women, and the Apprenticeship Completion Grant.

To complement these measures, the Government has invested over $10 million to create a national campaign for youth, their parents and caregivers, to promote the skilled trades as a first-choice career and to change the perception around careers in the trades. As part of this campaign, the Canada.ca/skilled-trades website was launched and includes resources and tools that will help Canadians learn about the skilled trades.

• The Minister’s 2021 Mandate letter outlined a commitment to continue to support the work of the national campaign to promote the skilled trades as first choice careers for young people and diverse populations. The Department will continue promoting the skilled trades to young Canadians in the coming years through initiatives such as the national campaign.

Key facts

Canada is facing significant labour shortages across the country, yet skilled trades continue to be perceived as a “second-choice” career by youth. Less than 1 in 10 15-year old students and only 2% of 15-year old female students definitely plan to pursue a trades career (Youth Attitudes towards Trades Survey, 2018).

Apprenticeship is a proven industry-based method of training, combining on-the-job (about 85%) and in-class technical training (about 15%) that leads to certification in a skilled trade.

Apprenticeship is a provincial/territorial responsibility. The federal government plays a key role by making significant investments through various initiatives to support apprenticeship and the skilled trades.

The Canadian Apprenticeship Strategy also includes measures to improve apprenticeship outcomes and to engage unions and employers in apprenticeship, such as the Union Training and Innovation Program, the Apprenticeship Service, and the Women in the Skilled Trades initiative.

Early results (January to March 2022) from the national campaign to promote the skilled trades show that the Canada.ca/skilled-trades web page received close to half a million visits and positive feedback from industry professionals. For this timeframe, the campaign has also generated close to 200 million impressions along with almost 50 million video views and over 850,000 clicks.

Through its national and provincial/territorial competitions, Skills Canada brings together more than 3,000 students or apprentices each year to compete in over 40 skilled trades and technology areas.

Key messages

Our Government is a strong supporter of apprenticeship and the skilled trades that provide Canadians with well-paying, rewarding careers.

That is why our Government invests nearly $1 billion annually in a broad array of apprenticeship supports through grants, loans, Employment Insurance benefits to eligible apprentices attending full-time technical training, tax credits, deductions, and initiatives under the Canadian Apprenticeship Strategy.

These investments will encourage more young people to consider an exciting new career in the skilled trades, improve the quality of training in the skilled trades and help apprentices connect with job opportunities in the trades.

Furthermore, in the 2022 Fall Economic Statement, we announced investments in skills for a net-zero economy, including $250 million over five years to help ensure Canadian workers have the skills they need to succeed in a changing global economy. This will include a new sustainable jobs stream under the Union Training and Innovation Program to support unions in leading the development of green skills training for workers in the trades. It is expected that 20,000 apprentices and journeypersons would benefit from this investment.

6.a. Key facts note – OAG report on the performance audit of specific COVID-19 benefits

Issue

On December 6, 2022, the Auditor General of Canada tabled her report in the House of Commons on the performance audit of Specific COVID-19 Benefits.

Background

On December 17, 2021, An Act to provide further support in response to COVID-19, also known as Bill C-2, received Royal Assent. This Act serves to extend or create specific benefits and programs related to COVID-19.

The Act also requires that the Auditor General (AG) of Canada complete a performance audit of certain COVID-19 benefits and programs. The benefits and programs included in this audit are:

• the Canada Worker Lockdown Benefit (“CWLB”)
• the Canada Recovery Benefit (“CRB”)
• the Canada Recovery Sickness Benefit (“CRSB”)
• the Canada Recovery Caregiving Benefit (“CRCB”)
• the Canada Emergency Response Benefit (“CERB”)
• the Employment Insurance Emergency Response Benefit (“EI-ERB”)
• the Canada Emergency Wage Subsidy (“CEWS”) program

The AG has now completed this audit examining whether Employment and Social Development Canada (ESDC) and the Canada Revenue Agency (CRA) delivered COVID-19 benefit/subsidy payments that were both efficient and effective, and on December 6, 2022, released its report.

Verification and validations controls were studied as part of the performance audit, as well as the CRA’s capacity to recover ineligible payments.

CERB total recipients: 8.5 M unique recipients including EI-ERB at 3.7M unique recipients

Of the $74B overall paid out to recipients, $36B was paid to EI-ERB recipients (TBC by CFOB/BISB)

Note: Programs ended on different dates, and applications could be submitted for a specific time period once a benefit program ended. This exhibit reflects all payments made for the Canada Emergency Wage Subsidy up to May 2022 and for each benefit program for individuals up to July 2022.

Source: The Canada Revenue Agency and Employment and Social Development Canada

Key facts

The December 6, 2022 AG report found that:

• ESDC and the CRA effectively delivered COVID-19 emergency programs to provide relief to individuals and employers affected by the pandemic, preventing a rise in poverty, mitigating income inequalities, and helping the economy rebound.
• Overpayments of $4.6 billion were made to ineligible individuals, and it is estimated that at least $27.4 billion of payments to individuals and employers should be investigated further.
• ESDC and CRA’s post-payment verification plans did not include verifying payments made to all identified recipients at risk of being ineligible for COVID‑19 benefit programs.
• Efforts to collect amounts owing have been limited to date and approximately $2.3 billion in overpayments have been recovered.

As part of the 2020 Fall Economic Statement, the Government announced $260.4 million over four years for ESDC and the CRA to increase their respective capacities to detect, investigate and address cases of error, misrepresentation/abuse and fraud related to the CERB.

From this, ESDC received $114.3 million to enhance integrity measures to continue to detect, investigate and address high-risk cases of error, misrepresentation/abuse and fraud in the EI-ERB and committed to completing 157K post-payment verifications over 4 years.

ESDC efforts and recovery activities to date include:

• In the spring of 2020, ESDC began verification activities, with a focus on addressing higher-risk areas, where fraud and identity theft were more likely to occur. As of fall 2020, payments were stopped on more than 30,000 potentially fraudulent applications. This represented approximately $42 million in payments.
• In addition,12,507 files suspected of fraud were referred to the RCMP for further investigation.
• In order to get support out to Canadians as quickly as possible, those who applied for the EI-ERB at the beginning of the pandemic through Service Canada received an advance EI-ERB payment. In November 2021, Service Canada began reaching out directly to those individuals who went off EI-ERB prior to that payment being reconciled.
• The time limit to reconsider a EI-ERB claim under the EI Act is 36 months after the benefit has been paid or would have been payable. If there was a false or misleading statement, or a misrepresentation, this period is extended to 72 months.
• EI-ERB benefits were paid from March to October 2020. Accordingly, several claims will reach the 36 months time limit over the period of March to October 2023. For cases involving misrepresentations, the 72 months time limit will be reached in 2026.
• The $4.6B in overpayments is divided into two categories. Approximately 1.8 million people received notices of debt for overpayments due to unreconciled advance payments, for an amount of $3.1B, of which $1.68B has been repaid as of January 6, 2022.
• The remaining $1.5B to approximately 711,000 recipients are for those who received more than one benefit in a given period, which CRA is responsible for recovering.
• Almost half of the $27.4 billion of payments is related to the Canada Emergency Wage Subsidy ($15.5B), which was administered by the CRA. The remaining $12B in potentially ineligible payments to be investigated relates to individual benefits programs such as the Canada Emergency Response Benefit (of which EI-ERB is included), Canada Recovery Benefit, and Canada Worker Lockdown Benefit.
• The CERB and EI ERB are presented in aggregate in the audit, and amount to $9B in potential overpayments or payments to recipients that either were ineligible or should be investigated further to approximately two million recipients. Of this amount, approximately $1.6B can be attributed to the EI-ERB administered by ESDC.
• As part of its post payment verification activities, ESDC has sent over 55,000 fact-finding letters to potentially ineligible recipients requesting proof of eligibility. This work will continue throughout 2023-24 and 2024-2025.
• As of January 18, 2023, 32,609 EI-ERB debtors have fully repaid their debt for a total of $68.2M. This includes voluntary payments, EI recoupment if the debtor is still in receipt of benefits, collection activities by CRA including negotiating a payment arrangement and CRA set offs.

Key messages

• The Government of Canada thanks the Office of the Auditor General of Canada for its work on this report.
• The Auditor General concluded that the Government’s COVID-19 benefit programs achieved their objectives in terms of helping mitigate poverty and income inequality as well as facilitating an economic rebound.
• The attestation-based application process approved by Parliament was the only effective way to get money into the hands of Canadians rapidly.
• The Government was fully aware of the risks associated with this approach.
• Using an attestation-based application approach is an acknowledged best practice by the International Public Sector Fraud Forum (IPSFF) when providing rapid supports.
• The attestation-based application process was balanced by a risk-based integrity framework at the back end that is focused on post-payment verifications.
• ESDC delivered the Employment Insurance Emergency Response Benefit and used data analytics to assess 100% of all EI-ERB applications for potential misrepresentation. The Department has committed to completing 157,000 post payment verifications over a 4-year period
• The Government has a strong post-payment verification plan that it will continue to advance methodically.
• While the worst of the pandemic may seem behind us, Canadians and businesses continue to face significant challenges, including the rising cost of living, combined with high debt loads.
• Applicants found to be ineligible will be required to repay the amount owed; however, the Government is committed to continuing to provide an empathetic, people-first approach in its efforts to recover ineligible payments and working with Canadians to ensure they will not be put into financial hardship by having to repay the emergency benefits they received.

Annex – Supplementary information on COVID-19 Benefits – Post-compliance verifications

$6.1 million to incarcerated recipients (incarcerated recipients for both CRA and ESDC): For Service Canada there were approximately 159 ERB recipients who were incarcerated during part or all of their ERB period (approximately $1 million in payments). These files are/will be reviewed to determine eligibility. For federally incarcerated individual, CRA and ESDC established information sharing agreements with Correctional Service of Canada which resulted in files being blocked from being paid or allowed for the recovery of any payments issued to ineligible individuals. For provincially incarcerated individuals, ESDC will need to conduct post-payment verifications to determine eligibility.

$1.2 million in payments to deceased people: As part of the intake control in place for the delivery of EI ERB, a verification of the individual's identity through the Social Insurance Register (SIR) was conducted. Applications were not processed in situations where the applicant’s death was registered in the SIR. Service Canada conducted in-depth validation and applications were not processed until the restriction could be lifted. In addition, verifications of the deceased status was done through a CRA data exchange and data analytics were used to identify if the death was subsequently registered in the SIR. Despite these measures, there were 10 individuals that have passed away after applying and received EI ERB for a value of approximately $70,000.

$1.6 billion to individuals who appear to have quit their jobs (instead of losing it due to COVID-19): Due to the subjective nature of the criteria, the difficulty of proving eligibility after the fact and undue burden investigation would create, Service Canada will apply a risk managed approach to these cases.

Recipients who did not reside in Canada: These cases will be reviewed as part of our post payment verification plan to confirm if the residency* eligibility criteria was met. A risk based approach will be applied.

*Residency: The intent is for the EI ERB to be available to a person who makes Canada their home and who ordinarily lives here, even if it is for a limited period of time. Therefore, unlike EI Regular benefits, the EI ERB is available to a claimant who is temporarily outside of Canada, if they make Canada their home and ordinarily live here.

7.a. Subject: Overview – Tabling of the Supplementary Estimates (B) for fiscal year ending March 31, 2023

Issue

Why does Employment and Social Development (ESDC) require additional authorities in the Supplementary Estimates (B) for fiscal year ending March 31, 2023?

Key facts

Supplementary Estimates seek parliamentary approval for changes to departmental spending plans for the current fiscal year.

ESDC is requesting a total of $411.4 million in additional authorities through the Supplementary Estimates (B).

• $164.5 million in Vote 1 Operating expenditure;
• $225.7 million in Vote 5 Grants and contributions; and
• $21.2 million in Statutory.

Response

ESDC is requesting adjustments for:

Text description: Employment and Social Development is requesting additional authorities in the Supplementary Estimates (B) in Operating Vote 1 and Grants and Contributions Vote 5.

Text description: Employment and Social Development is requesting transfers in the Supplementary Estimates (B) in Operating Vote 1 and Grants and Contributions Vote 5.

Text description: Employment and Social Development is requesting adjustments to forecasted budgetary statutory authorities in the Supplementary Estimates (B).

Background

A. Voted appropriations

1. Funding for the Black-Led Philanthropic Endowment Fund – $199.9 million

Budget 2021 announced the investment of $200 million to create a new Black-Led Philanthropic Endowment Fund.

Led by Black Canadians for Black Canadians, the Endowment Fund will create a sustainable source of funding for Black-led, Black-focused and Black-serving charities and non-profits working to combat anti-Black racism and improve social and economic outcomes in Black communities.

The Government of Canada will provide $199.5 million (in up-front multi-year contributions) to a single national Black-led and Black-serving recipient organization, supported by one or more investment management firm(s) as well as an established public foundation that will provide it with support and guidance for a period of three years or more.

ESDC is requesting authority to include $430,172 in Vote 1 (Operating expenditures, excluding employee benefit plans (EBP) costs of $81,523) and $199,476,227 in Vote 5 (Contributions) for the Black-Led Philanthropic Endowment Fund as part of the Supplementary Estimates (B) 2022 to 2023.

2. Funding to increase Old Age Security workload capacity – $46.4 million

The Old Age Security (OAS) program is one of the largest programs of the Government of Canada. In 2021 to 2022, the program paid $60.8 billion in benefits to 6.9 million beneficiaries.

Through a deferred Budget 2022 decision, ESDC is requesting $46.4 million in funding for 2022 to 2023 to address the demographically-driven OAS workload increase, to slow growing inventory levels and to increase the Pensions Call Centre’s capacity to better respond to client enquiries and minimize impacts to wait times.

In the absence of these funds, the Pensions Call Centre forecasted wait times could increase to an estimated average of 60 minutes, and inventory levels to close to 3 million work items by the end of 2023 to 2024.

ESDC is requesting authority to include $46,420,245 in Vote 1 (Operating expenditures, excluding EBP costs of $7,882,045) to increase Old Age Security workload capacity as part of the Supplementary Estimates (B) 2022 to 2023.

3. Funding for the Temporary Foreign Worker Program for rebasing Labour Market Impact Assessment processing (Budget 2022) – $18.7 million

Budget 2022 announced access to $64.6 million over three years, beginning in 2022 to 2023, to improve the service delivery of the Temporary Foreign Worker Program (TFWP) by addressing increased volumes of Labour Market Impact Assessments (LMIAs) going forward.

This funding will allow Service Canada to allocate resources to address ongoing workload pressures and increased LMIA volume pressures expected to continue in future years. This will also help mitigate the risk of a growing inventory of pending LMIA applications and will ensure that employers receive timely decisions.

ESDC is requesting authority to include $18,742,308 in Vote 1 (Operating expenditures, excluding EBP costs of $3,792,404) for the Temporary Foreign Worker Program for rebasing Labour Market Impact Assessment processing as part of the Supplementary Estimates (B) 2022 to 2023.

4. Funding to stabilize information technology to support program delivery – $16.3 million

ESDC is the largest federal service delivery organization in Canada. However, decades of chronic underinvestment in information technology (IT) have put ESDC in an unprecedented situation where the systems could fail and affect the ongoing delivery of critical programs and services to Canadians.

Recognizing the need to stabilize and remediate ESDC’s IT systems, the Government of Canada approved an off-cycle funding request in May 2020 of $469 million over 6 years (2020 to 2021, to 2025 to 2026) to implement ESDC’s Technical Debt Remediation Initiative.

For 2022 to 2023, the operational funding required is $64.9 million to continue activities addressing the most pressing issues facing ESDC’s aging IT systems, such as improving network performance, stabilizing aging IT, and establishing disaster recovery solutions to improve the ability to meet ESDC’s business recovery objectives. This is comprised of $58.9 million of new funding from the approved 2020 off-cycle decision and a re-profile of $6.0 million from 2021 to 2022 lapsed funds.

The $16.3 million represents the Consolidated Revenue Fund (CRF) portion of the funding required for fiscal year 2022 to 2023. In addition, $40.2 million is funded from the Employment Insurance (EI) Operating Account and $8.4 million from the Canada Pension Plan (CPP) which are not included in the Estimates.

ESDC is requesting authority to include $16,251,407 in Vote 1 (Operating expenditures, excluding EBP costs of $824,299) to stabilize information technology to support program delivery as part of the Supplementary Estimates (B) 2022 to 2023.

5. Funding to increase the reach of Temporary Foreign Worker Program inspections to the extent possible (horizontal item) – $13.8 million

Budget 2021 announced $54.9 million over three years, starting in 2021 to 2022, to ESDC ($52.7 million) and Immigration, Refugees and Citizenship Canada (IRCC) ($2.2 million) to increase the number of employer inspections under the employer compliance regime of the Temporary Foreign Worker Program (TFWP), and to ensure temporary foreign workers have appropriate working conditions and wages.

In January 2022, ESDC and IRCC collectively sought the funding and resources required to support an increased number of inspections. ESDC and IRCC only received funding approval for one year (2021 to 2022) of the 3 requested.

New policy direction provided in Budget 2022 grants authority to use the remaining Budget 2021 funding starting in 2022 to 2023 to continue to perform inspections, with the new objective of increasing the reach of inspections to the extent possible.

Resources from the combined Budget 2021 and Budget 2022 funding decisions will allow ESDC to build on efforts already underway to improve quality, timeliness and responsiveness of inspections, and embark on preliminary work to support the rebuild of the Employer Compliance Regime. (See also item #9 below – Funding to improve the quality of the Temporary Foreign Worker Program inspections and begin rebuilding the Employer Compliance Regime (Budget 2022)).

ESDC is requesting authority to include $13,810,143 in Vote 1 (Operating expenditures, excluding EBP costs of $2,949,556) to increase the reach of Temporary Foreign Worker Program inspections to the extent possible as part of the Supplementary Estimates (B) 2022 to 2023.

6. Funding to build a more inclusive and prosperous Canada under the Disability Inclusion Action Plan (Budget 2022) – $13.6 million

Budget 2022 proposes to provide $272.6 million over five years (2022 to 2023, to 2026 to 2027) to ESDC to support the implementation of an employment strategy for persons with disabilities through the Opportunities Fund. This will help to address labour market shortages through increased participation by persons with disabilities and make workplaces more inclusive and accessible.

Budget 2022 also proposes to provide $38 million over 7 years (2022 to 2023, to 2028 to 2029) to support the production and distribution of alternative format reading materials by the Centre for Equitable Library Access and the National Network for Equitable Library Service, to conduct research through a survey to better understand gaps in availability of accessible reading materials, and to launch a new Equitable Access to Reading Program to boost the production of accessible format reading materials through innovative partnerships.

Out of the $13.6 million requested through these Estimates, $11.4 million is for the Opportunities Fund ($5.8 million in Vote 1 and $5.6 million in Vote 5), and $2.2 million is for alternate format reading materials ($0.2 million in Vote 1 and $2.0 million in Vote 5).

ESDC is requesting authority to include $6,033,995 in Vote 1 (Operating expenditures, excluding EBP costs of $1,065,026) and $7,576,525 in Vote 5 (Grants and contributions) to build a more inclusive and prosperous Canada under the Disability Inclusion Action Plan as part of the Supplementary Estimates (B) 2022 to 2023.

7. Funding for the Benefits Delivery Modernization – $13.5 million

In Budget 2021, the Government of Canada committed to accelerating the replacement of the OAS solution to minimize the risk of this 60-year-old system failing and impacting seniors’ benefits.

The Benefits Delivery Modernization (BDM) Programme is implementing a Common Benefits Delivery (CBD) platform, which was chosen as the new, modern technology to deliver OAS and eventually other benefits. By replacing the legacy system, the CBD platform will mitigate the risk of IT failure and maintain the department’s ability to issue benefit payments to seniors.

ESDC requested 2 re-profiles of 2021 to 2022 funding to 2022 to 2023 for BDM, for a total of $64.5 million. The first one is for the onboarding of OAS on BDM for a total of $11.5 million of CRF funding. The second one is for the Tranche 1 Implementation: Foundation Phase for a total of $52.9 million out of which $2.0 million is funded from the CRF. The remaining portions of $47.7 million funded from the EI Operating Account and $3.2 million from the CPP are not included in the Estimates.

ESDC is requesting authority to include $13,531,250 in Vote 1 (Operating expenditures) for the Benefits Delivery Modernization as part of the Supplementary Estimates (B) 2022 to 2023.

8. Funding for the Canada Emergency Response Benefits integrity measures – $13.5 million

ESDC received $328.9 million in operating funding over four years in the 2020 Fall Economic Statement to ensure the Canada Revenue Agency (CRA) has continued capacity to advance compliance, verification and overpayment collections activities with respect to the Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB). Due to delays in CRA’s ability to complete these activities, $44.8 million of 2021 to 2022 fiscal year lapses are being re-profiled into future fiscal years, based on CRA’s updated forecasted spending. CRA’s activities in future years also include the collection of Employment Insurance Emergency Response Benefits (EI ERB) overpayments, on behalf of ESDC.

For fiscal year 2022 to 2023, ESDC is requesting to use $13.5 million of the 2021 to 2022 CERB and CESB lapses to fund CERB ($1.8 million) and EI ERB ($11.7 million) integrity and collection activities that CRA will do on behalf of the department.

ESDC is requesting authority to include $13,449,235 in Vote 1 (Operating expenditures) for the Canada Emergency Response Benefits Integrity Measure as part of the Supplementary Estimates (B) 2022 to 2023.

9. Funding to improve the quality of the Temporary Foreign Worker Program inspections and begin rebuilding the Employer Compliance Regime (Budget 2022) – $13.3 million

New policy direction provided in Budget 2022 grants authority to use the remaining Budget 2021 funding starting in 2022 to 2023 to continue to perform inspections, with the new objective of increasing the reach of inspections to the extent possible. (See also item #5 above – Funding to increase the reach of Temporary Foreign Worker Program inspections to the extent possible).

Resources from the combined Budget 2021 and Budget 2022 funding decisions will allow ESDC to build on efforts already underway to improve quality, timeliness, and responsiveness of inspections, and embark on preliminary work to support the rebuild of the Employer Compliance Regime.

ESDC is requesting authority to include $13,300,680 in Vote 1 (Operating expenditures, excluding EBP costs of $2,522,787) to improve the quality of the Temporary Foreign Worker Program inspections and begin rebuilding the Employer Compliance Regime as part of the Supplementary Estimates (B) 2022 to 2023.

10. Funding to address labour demand and training the workforce of the future (Budget 2022) – $13.3 million

The requested $13.3 million is part of the $115 million over five years announced in Budget 2022, with $30 million ongoing for the Foreign Credential Recognition Program (FCRP), and $84.2 million over four years (2022 to 2023, to 2025 to 2026) for the Union Training and Innovation Program (UTIP).

Canada is facing significant labour shortages across the country. For 2022 to 2023, $4.6 million ($1.8 million in Vote 1 and $2.8 million in Vote 5) of the funding requested through these Estimates for the FCRP will help support the labour market integration of skilled newcomers with an initial focus on internationally educated health professionals.

Also for 2022 to 2023, the funding of $8.7 million ($1.9 million in Vote 1 and $6.8 million in Vote 5) for the UTIP will be used to help women, persons with disabilities, Indigenous people, and racialized Canadians start careers in Red Seal trades, including through mentorship, career services and job matching.

ESDC is requesting authority to include $3,628,628 in Vote 1 (Operating expenditures, excluding EBP costs of $701,535) and $9,633,486 in Vote 5 (Grants and contributions) to address labour demand and training the workforce of the future as part of the Supplementary Estimates (B) 2022 to 2023.

11. Funding for New Horizons for Seniors Program (Budget 2022) – $10.0 million

Budget 2022 announced $20 million over 2 years, beginning with $10 million in 2022 to 2023, for an expanded New Horizons for Seniors Program to support more projects that improve the quality of life for seniors and help them continue to fully participate in their communities.

The additional funding will support projects that will improve the well-being of seniors and help communities benefit from the increased participation and contribution of seniors to community life.

ESDC is requesting authority to include $10,000,000 in Vote 5 (Grants) for New Horizons for Seniors Program as part of the Supplementary Estimates (B) 2022 to 2023.

12. Funding for government advertising programs (horizontal item) – $6.0 million

In line with Budget 2022, some of the Government of Canada’s goals consist of:

• putting in place measures to address barriers faced by persons with disabilities to finding meaningful and well paid work
• ensuring that Canadian seniors have a secured and dignified retirement, and that programs and services are developed to respond to Canada’s aging population; and
• that the government is focused on connecting workers to good jobs in growing sectors, by creating new opportunities and increasing diversity in the trades, and helping Canadians gain the foundational skills needed to succeed in today’s economy

For the 2022 to 2023, ESDC requested $6.0 million for advertising campaigns, allocated as follow:

• $0.5 million for the “Inclusive Workplaces” campaign to promote hiring persons with disabilities
• $2.5 million for the “Services for Seniors’’ campaign to promote programs and services related to seniors
• $3.0 million for the “National Skilled Trades” campaign to promote the skilled trades as a first-choice career

ESDC is requesting authority to include $6,000,000 in Vote 1 (Operating expenditures) for government advertising programs as part of the Supplementary Estimates (B) 2022 to 2023.

13. Funding to implement public health measures for in-person services at Service Canada Centres (Budget 2022) – $5.9 million

ESDC received $29.8 million in funding in Budget 2022, out of which $5.9 million is funded from the CRF. The remaining portion of $20.3 million is funded from the EI Operating Account and $3.6 million from the CPP which are not included in the Estimates. This funding is being used to comply with public health requirements by maintaining commissionaire/security guard services to enforce health and safety measures and is necessary to maintain access to in-person services especially for at-risk groups that are more reliant on the in-person network.

This funding addresses public health requirements necessary to provide in-person services to the public, particularly Occupational Health and Safety requirements relevant to the Department’s obligations as an employer.

While active screening and tracking of employees and visitors on-site is no longer required, all persons entering Service Canada Centres (SCC) are required to wear a medical mask or respirator. Differences between provincial and federal masking requirements create points of friction with the public. Combined with the return to full occupancy and particularly high volumes of clients, the situation necessitates a continued commissionaire presence at SCCs.

ESDC is requesting authority to include $5,941,433 in Vote 1 (Operating expenditures) to implement public health measures for in-person services at Service Canada Centres as part of the Supplementary Estimates (B) 2022 to 2023.

14. Funding for Early Learning and Child Care – $4.4 million

Budget 2017 announced $100 million over 10 years for the Early Learning and Child Care (ELCC) Innovation Program and the 2020 Fall Economic Statement made that funding permanent with $15 million annually starting in 2028 to 2029.

ESDC is requesting to re-profile $4.4 million of the 2021 to 2022 ELCC lapses in grants and contributions to 2022 to 2023. Funding to be re-profiled consists of $0.2 million to support ELCC data and research, and $4.2 million to ELCC innovation projects.

The re-profiling of grants funding for ELCC Data and Research Program is requested due to delays in working with Indigenous partners, changes in the organizational mechanism to launch calls for proposals for data and research projects, and changes in organizational capacity during the year. Re-profiled funds will support the broader expert community in the development of new projects to address ELCC data and research gaps.

The 2020 ELCC Innovation Program call for proposals ran from October 30, 2020 to January 7, 2021 and resulted in a significantly higher number of applications than anticipated, which prolonged the assessment period. While projects were ultimately approved in late 2021, funding did not flow to recipients until 2022 to 2023. Re-profiled finds will support multi-year projects starting in 2022 to 2023, ensuring the continued positive impact of the ELCC Innovation Program.

ESDC is requesting authority to include $4,422,857 in Vote 5 (Grants and contributions) for Early Learning and Child Care as part of the Supplementary Estimates (B) 2022 to 2023.

15. Funding for the Investment Readiness Program – $4.4 million

Budget 2021 announced $50 million over 2 years ($25 million each fiscal year) for a renewed Investment Readiness Program (IRP) starting in 2021 to 2022.

Of the $23 million grants and contribution funding available in 2021 to 2022, $15 million was committed into agreements, resulting in uncommitted funds of approximately $8 million. ESDC is requesting to re-profile these uncommitted funds across 2 fiscal years ($4.4 million in 2022 to 2023 and $3.3 million in 2023 to 2024).

Re-profiling these funds across 2 fiscal years will help mitigate the impact caused by the delays and give funding recipients the time they need to complete their project activities. The re-profile will also ensure that the program achieves the results and outcomes it has committed to.

ESDC is requesting authority to include $4,356,106 in Vote 5 (Contributions) for the Investment Readiness Program as part of the Supplementary Estimates (B) 2022 to 2023.

16. Funding to amend the Canada Labour Code to implement ten days of paid medical leave – $3.1 million

Through a deferred Budget 2022 decision, ESDC received $9.3 million over 3 years starting in 2022 to 2023 to Implement ten days of paid medical leave for federally-regulated employees.

The funds will be used to prepare regulatory amendments, develop educational materials, update information systems, inform inspectors of the changes, and respond to complaints and enforce the new legislative requirements to ensure employer compliance.

ESDC is requesting authority to include $3,104,112 in Vote 1 (Operating expenditures, excluding EBP costs of $608,593) to amend the Canada Labour Code to implement ten days of paid medical leave as part of the Supplementary Estimates (B) 2022 to 2023.

17. Funding for retroactive compensation – $2.2 million

In 2019, ESDC worked collaboratively with managers, employees and the union to resolve a longstanding job description grievance concerning the Program Support Delivery Clerk.

Budget 2019 committed funds to the resolution of the reclassification. Subsequently, the ESDC obtained funding for fiscal years 2019 to 2020 and 2020 to 2021 to cover retroactive payments and salary adjustments for work performed since 2006.

In 2022, ESDC received permanent funding to offset costs from 2022 to 2023 onwards. This funding includes $2.2 million sourced from the CRF and $1.4 million sourced from the EI Operating Account (which is not included in the Estimates) to support the permanent incremental top-up costs.

ESDC is requesting $2,155,118 in Vote 1 (Operating expenditures, excluding EBP costs of $591,882) for retroactive compensation as part of the Supplementary Estimates (B) 2022 to 2023.

18. Funding for the Indigenous Early Learning and Child Care – $1.9 million

In 2022 to 2023, a selection of Indigenous governments partnering with the Government of Canada on the implementation of the Indigenous Early Learning and Child Care (IELCC) Transformation Initiative requested adjustments to their planned multi-year funding allocations. Adjustments were requested in order to respond to the impact of the pandemic on their communities, and to provide partners additional time to position, plan and expend the incremental IELCC investments.

To respond to these requests from Indigenous governments, ESDC is re-profiling $11.9 million in funding from 2021 to 2022 into future years, including $1.9 million in 2022 to 2023. The funding being re-profiled originally comes from announcement made in Budget 2017, the 2020 Fall Economic Statement and in Budget 2021 for the IELCC.

The re-profile will provide Indigenous communities impacted by the pandemic more time to spend funding that was planned for 2021 to 2022, advance commitments outlined in the co-developed IELCC Framework and support strategies and work plans developed by individual First Nation, Inuit and Métis communities.

ESDC is requesting authority to include $1,885,967 in Vote 5 (Contributions) the Indigenous Early Learning and Child Care as part of the Supplementary Estimates (B) 2022 to 2023.

19. Funding for the Employment Equity Act review (Budget 2022) – $1.7 million

As announced in the Budget 2022, the $1.7 million funding will support the completion of the Employment Equity Act review, which is being conducted by an independent task force.

This amount is comprised of operating funding to allow ESDC to secure the skills and resources required to support the task force with consultation management and planning, research, policy analysis, and communications. This amount takes into account the expanded scope of the review and the accelerated timelines for its completion.

After completing its review of the Act, the task force will make recommendations to the Minister of Labour on how best to adjust the Act to the new sociodemographic, economic and political realities of the Canadian society and its labour market. A final report is expected to be issued December 31, 2022. The Labour Program is expected to propose legislative, regulatory, policy and/or program changes emerging from the review.

ESDC is requesting authority to include $1,722,859 in Vote 1 (Operating expenditures, excluding EBP costs of $154,284) for the Employment Equity Act review as part of the Supplementary Estimates (B) 2022 to 2023.

20. Funding for the Employment Equity Act review (Reprofile) – $0.8 million

Of the funding granted in the Fall Economic Statement 2020, ESDC requested a re-profile of $0.8 million of lapsed funds under the Employment Equity Act review, related to enhanced community engagements that target more local and grassroots Indigenous and disability organizations.

This re-profile will assist organizations representing the equity-deserving communities to target more grassroots Indigenous and accessibility/disability communities and therefore, allow for an even wider range of views to be captured and shared with the task force.

ESDC is requesting authority to include $800,000 in Vote 5 (Grants and contributions) for the Employment Equity Act review as part of the Supplementary Estimates (B) 2022 to 2023.

21. Funding for the resettlement of Afghan refugees (Budget 2022) (horizontal item) – $0.2 million

Immigration, Refugees and Citizenship Canada (IRCC) is seeking funding equal to the incremental increase in permanent resident admissions in addition to what has already been approved in the 2021 to 2023 Immigration Levels Plan. This plan includes increasing Canada’s resettlement commitment to up to 50,000 Afghan refugees.

With an increase in immigration levels due to the Afghan resettlement initiative, the Social Insurance Number (SIN) program anticipates a corresponding increase in the number of individuals accessing the program, including applications that require Tier II (complex cases) assistance.

ESDC is requesting $0.2 million to support incremental costs for the Social Insurance Number /Social Insurance Register (SIN/SIR) Tier II operations. This amount will enable SIN/SIR to support Citizen Service Officers (Tier I) operation of clinics including SIN services for resettled Afghan refugees in Canada.

ESDC is requesting authority to include $169,135 in Vote 1 (Operating expenditures, excluding EBP costs of $38,410) for the resettlement of Afghan refugees as part of the Supplementary Estimates (B) 2022 to 2023.

B. Transfers

22. From the Department of Indigenous Services to the Department of Employment and Social Development for the Indigenous Early Learning and Child Care Transformation Initiative – $14.6 million

This funding is being transferred to ESDC for the IELCC based on a recent decision taken by the First Nations of Quebec and Labrador Health and Social Services Commission (FNQLHSSC) to flow funding through ESDC which had previously been flowed through First Nations and Inuit Health agreements and was therefore allocated to Indigenous Services Canada 2022 to 2023 Main Estimates. The current Memorandum of Understanding, which sets out the terms and conditions for the transfer of funds for the IELCC, was amended and signed for additional funding for 2022 to 2023 of $14.6 million.

ESDC is requesting authority to include a transfer of $14,587,931 in Vote 5 (Contributions) from the Department of Indigenous Services for the Indigenous Early Learning and Child Care Transformation Initiative as part of the Supplementary Estimates (B) 2022 to 2023.

23. Internal reallocation of resources from Apprenticeship Grants ($115,000) to Support for Labour Market Information in Canada grants

The Labour Market Information Council (LMIC) is a non-profit organization that works to promote co-operation between federal, provincial and territorial (F/P/T) governments and other stakeholders, on Pan-Canadian and regional labour market information priorities.

The LMIC funding envelop is cost-shared between the Government of Canada ($1.1 million from ESDC, sourced from the Apprenticeship Grants) and the provinces and territories ($1.1 million, sourced from P/T on a per capita basis). ESDC and P/T governments’ contributions are managed via separate agreements, with the P/T portion flowing through the Forum of Labour Market Ministers (FLMM) Secretariat and ESDC porting through the Support for Labour Market Information in Canada grants.

The 2022 to 2023 payment to the LMIC increased by $0.1 million requiring a transfer from the Apprenticeship Grants to the Support for Labour Market Information in Canada grants.

ESDC is requesting authority to include an internal reallocation of resources from Apprenticeship Grants ($115,000) to Support for Labour Market Information in Canada grants as part of the Supplementary Estimates (B) 2022 to 2023. (Note: the internal reallocation does not increase the department’s Vote 5 funding).

24. Internal reallocation of resources from Apprenticeship Grants ($42,204,322) and Grant for the Union Training and Innovation Program ($1,300,000) to Canadian Apprenticeship Strategy grants

Budget 2019 announced the development of a new Canadian Apprenticeship Strategy to increase the impact of the Government’s current suite of apprenticeship supports and help address ongoing challenges across apprenticeship systems.

Implemented in 2022, the Canadian Apprenticeship Strategy provides a framework for federal apprenticeship initiatives that support a trades’ workforce that is skilled, inclusive, certified and productive. It builds on the success of apprenticeship measures such as the Union Training and Innovation Program, the Skilled Trades Awareness and Readiness Program, the Apprenticeship Grants, and the Apprenticeship Service, and supports pre-apprentices, apprentices, employers, unions and tradespeople to explore the skilled trades and participate in apprenticeship.

Going forward, the Apprenticeship Grants and the Grant for the Union Training and Innovation Program will be reported under the blended program title of Canadian Apprenticeship Strategy grants.

ESDC is requesting authority to include an internal reallocation of resources from Apprenticeship Grants ($42,204,322) and Grant for the Union Training and Innovation Program ($1,300,000) to Canadian Apprenticeship Strategy grants as part of the Supplementary Estimates (B) 2022 to 2023. (Note: the internal reallocation does not increase the department’s Vote 5 funding).

25. From various organizations to the Treasury Board Secretariat to support the Capacity Accelerator Project – $0.03 million

This funding contributes to the internal audit community services and initiatives delivered by the Office of the Controller General which aims to reinforce the internal audit function’s role as a credible and timely assurance provider that advises management in light of the organization’s strategy, objectives and tolerance for risk for the whole of Government of Canada.

ESDC is requesting authority to include a transfer of $30,000 in Vote 1 (Operating expenditures) to the Treasury Board Secretariat to support the Capacity Accelerator Project as part of the Supplementary Estimates (B) 2022 to 2023.

26. From the Department of Employment and Social Development to the Department of Natural Resources in support of the 2 Billion Trees program activities – $0.1 million

This transfer of $0.1 million from ESDC to Natural Resources Canada is to support the planting of 25,000 trees in Canada. This includes appropriate site preparation, planting, and monitoring activities to support a high survivability rate of the trees. These trees are to be over and above what the 2 Billion Trees program would otherwise be able to support and in support of sequestering carbon related to ESDC procurement efforts.

ESDC is requesting authority to include a transfer of $125,000 in Vote 1 (Operating expenditures) to the Department of Natural Resources in support of the 2 Billion Trees program activities as part of the Supplementary Estimates (B) 2022 to 2023.

27. From the Department of Employment and Social Development to the Department of Crown-Indigenous Relations and Northern Affairs to support Indigenous Skills and Employment Training and Indigenous Early Learning and Child Care – $27.1 million

Under the IELCC Initiative, Indigenous partners have the flexibility to request that some or all of their funding be advanced through existing funding agreements with a selection of federal departments that deliver IELCC programs, namely, ESDC, Indigenous Services Canada, Public Health Agency of Canada, and Crown-Indigenous Relations and Northern Affairs Canada.

This approach supports commitments outlined in the co-developed IELCC Framework relating to flexibility and streamlined service delivery for Indigenous partners.

In 2022, a number of Indigenous partners requested that their IELCC funding be advanced through agreements with CIRNAC, for a total of $27.1 million. These Indigenous partners are: the Kativik Regional Government in Quebec, Nunatsiavut Government in Newfoundland and Labrador and a selection of Metis Nation partners – Métis National Council, Métis Nation of Alberta, Métis Nation of Saskatchewan and the Manitoba Métis Federation.

ESDC is requesting authority to include a transfer of $27,087,752 in Vote 5 (Contributions) to the Department of Crown-Indigenous Relations and Northern Affairs to support Indigenous Skills and Employment Training and Indigenous Early Learning and Child Care as part of the Supplementary Estimates (B) 2022 to 2023.

C. Statutory Budgetary Authorities

28. Contributions to employee benefit plans – Increase of $21.2 million

Contributions to employee benefit plans (EBP) include costs to the government for the employer’s matching contributions and payments to the Public Service Superannuation Plan, the Canada and the Quebec Pension Plans, death benefits, and the Employment Insurance Operating Account.

The forecasted increase of $21,202,344 in Statutory Authorities is directly linked to the Vote 1 – Operating expenditures funding being requested through the Supplementary Estimates (B) for the Voted Appropriations items presented in Section A (Items 1, 2, 3, 4, 5, 6, 9, 10, 16, 17, 19 and 21) above.

Key quotes

NIL

7.b. Supplementary Estimates (B) tracker for the Honourable Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion

Appearance before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) – 2022 to 2023 Supplementary Estimates (B) – House of Commons – February 7, 2023

Note: The Estimates do not include charges against the Canada Pension Plan (CPP) or Employment Insurance (EI) accounts for program benefits, $57.2 billion and $24.8 billion respectively, or for operating expenditures to administer the CPP or EI programs, $489.6 million and $2.1 billion respectively.

7.c. Questions and Answers (Qs and As) for the Honourable Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion

Appearance before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) – 2022 to 2023 Supplementary Estimates (B) – House of Commons – February 7, 2023

Question 1. Why is ESDC requesting $164.5 million in Vote 1 (Operating expenditures) authorities through the 2022 to 2023 Supplementary Estimates (B)?

Answer 1. The net increase of $164.5 million in Vote 1 is for the following items:

Question 2. Why is ESDC requesting $225.7 million in Vote 5 (Grants and contributions) authorities through the 2022 to 2023 Supplementary Estimates (B)?

Answer 2. The net increase of $225.7 million in Vote 5 is for the following items:

Text description: Employment and Social Development is requesting $225.7 million in additional authorities for Grants and contributions (Vote 5) in the Supplementary Estimates (B).

Question 3. Why is ESDC requesting $21.2 million in Statutory authorities through the 2022 to 2023 Supplementary Estimates (B)?

Answer 3. The net increase of $21.2 million in Budgetary Statutory forecast is for the following items:

Question 4. Why is ESDC requesting to increase its Total Budgetary Expenditures by $411.4 million through the 2022 to 2023 Supplementary Estimates (B)?

Answer 4. The net increase of $411.4 million in total planned budgetary authorities is for the following items (this includes Vote 1, Vote 5 and Statutory):

Question 5. Why is the 2022 to 2023 Proposed Authorities to Date for the Non-Budgetary Statutory -$205.6 million?

Answer 5. The net -$205.6 million non-budgetary statutory forecast is due to the following:

• Canada Student Loans
  • The expected net disbursement is estimated to be negative as loan disbursements have decreased (slowly returning to pre-pandemic levels) while loan repayments have resumed (and expected to be higher than total disbursement).
  • Note that negative net disbursements are atypical and are expected to be temporary.
• Canada Apprentice Loans
  • Same as above, expecting a decrease in disbursements of new loans and an increase of anticipated repayments.

Question 6. Why are Employment Insurance (EI) and Canada Pension Plan (CPP) planned spending excluded from ESDC’s Estimates?

Answer 6. EI and CPP planned spending is excluded from ESDC’s Estimates because they are not voted by Parliament.

Here is a reconciliation from the Proposed Authorities To Date in the Supplementary Estimates (B) to the Departmental Total Planned Spending:

7.d. Supplementary Estimates B line items cards Subject: Tabling of Employment and Social Development Canada’s Supplementary Estimates (B) for fiscal year ending March 31, 2023

7.e. Placemat with key figures and administration (FTEs (Full-time equivalents), budget, real estate footprint, etc.)

Of the $174.8 billion in planned spending, $87.7 billion is reported in the Estimates, out of which $86.3 billion are statutory and voted transfer payment programs. The following voted and statutory programs are included in ESDC’s planned spending:

• Canada Student Loans Program and Canada Apprentice Loans (statutory) = $4,628.9 million
• Canada Education Savings Grants (statutory) = $1,050.0 million
• Workforce Development Agreements (voted) = $922.0 million
• Canada Disability Savings Program (statutory) = $691.1 million
• Canadian Apprenticeship Strategy (voted) = $373.7 million
• Canada Recovery Caregiving Benefit and Canada Recovery Sickness Benefit (statutory) = $360.2 million
• Sectoral Workforce Solutions Program (voted) = $348.4 million
• Indigenous Skills, Employment and Training Program (voted) = $235.9 million
• Canada Learning Bond (statutory) = $181.0 million
• Skills for Success (voted) = $159.0 million
• Canada Emergency Response Benefit and Canada Emergency Student Benefit (voted) = $136.3 million

Of the $411.4 million requested through Supplementary Estimates (B), the following items fall under the responsibility of the Minister of Employment, Workforce Development and Disability Inclusion:

• Funding for the Temporary Foreign Worker Program for rebasing Labour Market Impact Assessment processing (Budget 2022) = $18.7 million
• Funding to increase Temporary Foreign Worker Program inspections to the extent possible = $13.8 million
• Funding to improve the quality of the Temporary Foreign Worker Program inspections and begin rebuilding the Employer Compliance Regime (Budget 2022) = $13.3 million
• Funding to build a more inclusive and prosperous Canada under the Disability Inclusion Action Plan (Budget 2022) = $13.6 million
• Funding for the Canada Emergency Recovery Benefits integrity measures = $13.4 million
• Funding to address labour demand and training the workforce of the future (Budget 2022) = $13.3 million
• Funding for government advertising programs ($3.5 million out of the total $6.0 million is for Inclusive Workplaces and National Skilled Trades campaigns) = $6.0 million
• Transfer to TBS to support the Capacity Accelerator Project = ($0.03 million)
• Transfer to Natural Resources Canada in support of the 2 Billion Trees program activities = ($0.1 million)
• Internal reallocation from Apprenticeship Grants to Support for Labour Market Information in Canada grants ($0.1million) = N/A
• Internal reallocation from Apprenticeship Grants and Grant for the Union Training and Innovation Program to Canadian Apprenticeship Strategy grants = N/A

Additional information (text not in original document)

ESDC footprint has a total of 405 sites, which include the above Service Canada Centres, general office spaces, passport print, processing and call centre locations.

As of January 1st, 2023, ESDC’s total number of FTEs (including Passport employees) is 37,234.

1. Canada Worker Lockdown Benefit

Commitment text: Secure passage and ensure implementation of a new Canada Worker Lockdown Benefit to support workers whose work is interrupted due to public health measures

Canada Worker Lockdown Benefit Progress to date

The Canada Worker Lockdown Benefit Act received Royal Assent on December 17, 2021. The benefit was retroactive to October 24, 2021, to support workers in regions where public health lockdowns have led to work interruptions. This commitment is already complete as the benefit concluded May 7, 2022. The Canada Worker Lockdown Benefit was implemented and Canadians had the ability to apply retroactively for and receive the benefit until May 19, 2022

The Canada Worker Lockdown Benefit distributed just over $914 million dollars to support nearly 456,000 eligible Canadians

Canada Worker Lockdown Benefit Next Steps

N/A – Canada Worker Lockdown Benefit has come to an end

2. 50,000 New Personal Support Workers

Commitment text: Work with the Minister of Health and provinces and territories to train up to 50,000 new personal support workers

New Personal Support Workers Progress to date

My department is taking a holistic approach to fulfilling this commitment through different programs and initiatives

To begin with, as announced in the 2020 Fall Economic Statement, my department is currently funding a $38.5 million pilot project to help address labour shortages in long-term and home care

This pilot project is testing a new recruitment and training model for up to 2,600 Supportive Care Assistants through micro-certification, of which 1,300 are anticipated to complete full Personal Support Worker certification

Additionally, we estimate that approximately 2,500 Personal Support Workers benefit from Labour Market Transfer Agreements for training purposes each year. This means that up to 8,750 Personal Support Workers could be trained through these agreements by October 20, 2025

We continue to explore how other ESDC programs could help meet this commitment. For instance, in March 2022, ESDC concluded two Calls for Proposals for the Sectoral Workforce Solutions Program to launch new training-based projects to address the needs of the clean economy; the health sector; and other sectors that are key to post-pandemic economic growth

Recommendations for projects from the Sectoral Workforce Solutions Program’s open Call for Proposals, that included a focus on projects targeting Personal Support Workers, are in the approval process

In addition to training opportunities, a National Occupational Standard for Personal Support Workers has been developed. It serves as a set of voluntary guidelines to address skills gaps within the occupation as well as inconsistencies across jurisdictions. It can be used to create workplace standards, performance expectations, and as the basis for developing training curriculum

New Personal Support Workers Next Steps

We continue to explore other ESDC programs to help meet this commitment

We will also continue to collaborate with Health Canada to identify programs in the health portfolio to help meet this commitment and engagement opportunities with provinces and territories

If pressed on this measure and the Government’s action

As of January 19, 2023, there are over 1,617 reserved seats for the Long Term and Home Care pilot project, with 1,642 students in online training, 680 students are in work placements, 318 students have graduated as Supportive Care Assistants, and 62 students are pursuing their full Personal Support Worker certification

3. Canada Disability Benefit Act and Canada Disability Benefit

Commitment text: Move forward with the design, introduction and implementation of a Canada Disability Benefit Act and Canada Disability Benefit for low-income working age persons with disabilities

Canada Disability Benefit Act and Canada Disability Benefit progress to date

On June 2, 2022, the Canada Disability Benefit Act, Bill C-22, was introduced in the House of Commons.

After being studied and amended by the HUMA Committee in the fall of 2022, the Bill was reported back to the House of Commons, where it passed third reading and was unanimously adopted on February 2, 2023

Bill C-22 is now in the Senate for consideration, sponsored by Senator Brent Cotter

In the lead-up to the tabling of Bill C-22, and in the spirit of “Nothing Without Us,” the Government launched an engagement process to seek input on the proposed Benefit and the Disability Inclusion Action Plan from disability communities, researchers, Indigenous organizations and other stakeholders

This engagement included over 8,500 Canadians having participated in an online survey; roundtables being held; and funding agreements being put in place to support disability organizations and national Indigenous organizations to engage their members

For example, Independent Living Canada is receiving funding to work with disability stakeholders across the country to solicit community perspectives and insights into the design and implementation of key initiatives under the Disability Inclusion Action Plan, including the proposed Benefit. Funding is also being provided to five National Indigenous Organizations to do this work

I have also engaged with my provincial and territorial counterparts, multilaterally through the Forum of Federal-Provincial/Territorial Ministers responsible for Social Services about the design and implementation of the proposed Canada Disability Benefit and bilaterally through meetings this autumn to further discuss harmonizing provincial and territorial benefits with the new Canada Disability Benefit

Canada Disability Benefit Act and Canada Disability Benefit next steps

The Government will continue to engage with the disability community and other stakeholders to inform the design of the benefit and, should Bill C-22 pass in Parliament, future regulations on the specific details of the benefit

Provincial and territorial governments are crucial partners in developing the proposed Canada Disability Benefit

My officials are currently engaged on a joint federal-provincial/territorial work plan to gain a better understanding of the possible interactions between the new benefit and provincial/territorial benefits

With this partnership, we will have a better chance of maximizing the impact that the new benefit will have, to make sure everyone is better off as a result and ensure we do not create any unintended consequences

If pressed on Canada Disability Benefit

We are very aware that many Canadians with disabilities are in desperate need of the additional financial support that the proposed Canada Disability Benefit would provide. Our intent, therefore, is to move forward as fast as we can

If pressed on the potential claw back of provincial and territorial supports

I am working with my provincial and territorial counterparts to ensure that the new benefit builds on provincial social assistance and other supports and does not replace them

4. EI System for the 21st Century

Commitment text: Taking into account input received through consultations on the future of Employment Insurance (EI), by Summer 2022, bring forward and begin implementing a plan to modernize the EI system for the 21st century, building a stronger and more inclusive system that covers all workers, including workers in seasonal employment and persons employed by digital platforms, ensuring the system is simpler and more responsive for workers and employers

EI System for the 21st Century Progress to date

During the pandemic, millions of Canadians’ livelihoods were interrupted by lockdowns, illness, or the need to care for loved ones. As a result, the government brought in temporary EI measures to support workers

The temporary measures announced in Budget 2021 allowed for easier and more flexible access to EI as the economy recovers, including:

• A common national entrance requirement of 420-hours to improve access to EI benefits for workers
• Measures to simplify EI program rules and make it easier to navigate and administer; and
• Enhancements to employer eligibility, duration of benefits, and streamlined application in the EI Work-Sharing program

These temporary measures have now ended

As Canada’s economy continues to recover from the pandemic and emergency measures have wound down, it’s time to build an EI program that better meets the current and future needs of workers and employers

We have undertaken comprehensive consultations with Canadians, labour groups, employers, and other key stakeholders and academic experts to inform the modernization of EI, as per the Budget 2021 commitment to consult over a 2-year period

The first phase of consultations with workers, employers, community organizations, academics, and other experts, started in August 2021 and concluded in February 2022. It gathered valuable input through multiple engagement avenues on a range of issues identified in Budget 2021, including: EI access and simplification, life events, workers in seasonal industries, self-employed and gig workers, and the Premium Reduction Program

The second phase of consultations launched in April 2022 and closed in July 2022

Phase II focused on additional key issues guiding the objectives of EI modernization, including adequacy of benefits and EI financing. It also examined, in more detail, certain issues from Phase I such as supports for the self-employed and gig workers, workers in seasonal industries and the Premium Reduction Program

The department released What We Heard reports on the findings of the Phase I and Phase II consultations

EI System for the 21st Century next steps

Lessons learned from the pandemic and the temporary measures that have now ended will be used to deliver on the commitment to modernize EI and develop a comprehensive, long-term plan for the future of EI that is accessible to all types of workers, and is adequate, fair, simple, client focused, affordable, and responsive to labour market needs

The Government will release its EI modernization plan once this work is complete

If pressed on digital platform workers

Our government is committed to advancing amendments that entitle workers employed by digital platforms to job protections under the Canada Labour Code. I will support the Minister of Labour on this issue to ensure better benefits and supports for these workers

5. EI Sickness Benefits from 15 to 26 weeks

Commitment text: Moving forward with extending EI sickness benefits from 15 to 26 weeks

EI Sickness Benefits progress to date

EI sickness benefits are an important support for Canadians who leave work due to illness, injury or quarantine. They complement other supports available to workers for longer-term illness and disability

Amendments to the EI Act required to extend EI sickness benefits from 15 to 26 weeks were included in the Budget Implementation Act 2021, which received Royal Assent on June 29, 2021

These amendments came into force on December 18, 2022

6. EI Benefit for Self-Employed

Commitment text: A new EI benefit for self-employed Canadians that would provide unemployment assistance comparable to EI and lasting for as many as 26 weeks

EI Benefit for Self-Employed progress to date

Budget 2021 announced $5 million over 2 years for ESDC to conduct targeted consultations on designing an EI program for the future, including the need for income support for self-employed and gig workers

In August 2021, my department launched comprehensive consultations on EI using a phased approach that took place over 2 years. February 2022 marked the end of the first phase

The second phase of the consultations on EI modernization launched in April 2022 and closed in July 2022

The What We Heard reports from the first and second phases of the consultations have been published

EI Benefit for Self-Employed next steps

Now that the consultations are complete, policy development is underway on a comprehensive plan to modernize EI, including supports that could better support self-employed and gig workers, including artists and cultural workers

If pressed on implementation of EI Benefit for Self-Employed

Work is underway to determine the earliest feasible implementation date for the benefit, and a number of delivery mechanisms are being explored. Timing of implementation will depend on sequencing with other EI commitments

7. 15-week Benefit for Adoptive Parents

Commitment text: A new 15-week benefit for adoptive parents

15-week Benefit for Adoptive Parents progress to date

Budget 2021 announced $5 million over 2 years for ESDC to conduct targeted consultations on designing an EI program for the future

In August 2021, my department launched comprehensive consultations on EI using a phased approach that took place over 2 years. February 2022 marked the end of the first phase

The second phase of the consultations on EI modernization launched in April 2022 and closed in July 2022

The What We Heard reports from the first and second phases of the consultations have been published

As part of the consultations on the modernization of the EI program, I hosted two roundtables in December 2021 on how best to support Canadians through life events, during which I heard about the needs of adoptive parents and to make EI maternity and parental benefits more inclusive of the way families are formed

15-week Benefit for Adoptive Parents next steps

As part of the EI consultations over the past year, my department held additional targeted discussions with a variety of stakeholders and organizations, including adoption advocates

Now that the consultations are complete, policy development is underway on a comprehensive plan to modernize EI

The Government will release its EI modernization plan once this work is complete in the coming months

If pressed on the coming into force date

Timing of implementation will depend on sequencing with other EI commitments

If pressed on whether the benefit will be available to kinship and customary care families

Continued engagement with adoption stakeholders will be key to inform the design of this new benefit, and ensure that it responds to the needs of adoptive parents, as well as is as inclusive as possible for various forms of adoption and family formation

8. EI Career Insurance Benefit

Commitment text: A new EI Career Insurance Benefit to provide long-tenured workers who have lost their job with additional income support while they reintegrate into the labour market

EI Career Insurance Benefit progress to date

The Department is exploring policy options for long-tenured workers in the context of EI modernization

In August 2021, my department launched comprehensive consultations on EI using a phased approach that took place over two years. February 2022 marked the end of the first phase

The second phase of the consultations on EI modernization launched in April 2022 and closed in July 2022

The What We Heard reports from the first and second phases of the consultations have been published Continued engagement with stakeholders will be key to inform the design of this new benefit

EI Career Insurance Benefit next steps

Now that the EI consultations are complete, policy development is underway on a comprehensive plan to modernize EI

The Government will release its EI modernization plan once this work is complete in the coming months

Timing of implementation will depend on sequencing with other EI commitments

9. Artists and Cultural Workers

Commitment text: Consideration of the realities of artists and cultural workers

Artists and Cultural Workers progress to date

Budget 2021 announced $5 million over two years for ESDC to conduct targeted consultations on designing an EI program for the future, including the need for income support for self-employed and gig workers

In August 2021, my department launched comprehensive consultations on EI using a phased approach that took place over 2 years. February 2022 marked the end of the first phase

The second phase of the consultations on EI modernization launched in April 2022 and closed in July 2022

Participants in both phases of consultations included organizations representing artists and cultural workers

The What We Heard reports from the first and second phases of the consultations have been published

Artists and Cultural Workers next steps

My department will continue its engagement efforts on how to best support artists and cultural workers, who often are self-employed

If pressed on Artists and Cultural Workers

Now that the consultations are complete, policy development is underway on a comprehensive plan to modernize EI

The input received from the consultations will inform ongoing work to make the EI system more accessible and better support self-employed workers, which is expected to benefit artists and cultural workers

10. Canada’s Disability Inclusion Action Plan

Commitment text: Finalize and release Canada’s Disability Inclusion Action Plan, in consultation with the disability community, with early actions in key areas of financial security and employment, creating disability-inclusive spaces and adopting a modern approach to a common definition of disability across the Government of Canada

Canada’s Disability Inclusion Action Plan progress to date

I released Canada’s first ever Disability Inclusion Action Plan on October 7, 2022

A blueprint for change, our plan ensures that four main pillars are addressed:

• Financial Security
• Employment
• Accessible and inclusive communities; and
• Adopting a modern approach to disability in government programs and services

The release of the Disability Inclusion Action Plan builds on the early investments already made to make Canada more inclusive for persons with disabilities, including:

• $11.9 million over three years to support the development of recommendations on modernizing eligibility processes for federal disability programs and benefits, that will also support the development of the Canada Disability Benefit
• $129.2 million over 2 years, starting in 2021 to 2022 for the Enabling Accessibility Fund, which to date has supported over 800 projects to improve accessibility in communities and workplaces across Canada, including over 200 in early learning and child care centres
• $65 million in 2021 to 2022 for the Opportunities Fund and other funding for employment supports
• Measures to improve financial security for students with disabilities
• On August 1, 2022, the Government of Canada expanded eligibility for student financial assistance to students with persistent or prolonged disabilities. This means many more students with disabilities can access disability-targeted grants, in-study flexibilities, and more generous repayment assistance. This will make post-secondary education more affordable and help alleviate financial pressures for many more students with disabilities in Canada every year, starting in 2021 to 2022
• $376 million in additional support over five years, starting in 2021 to 2022, for changes to the Disability Tax Credit
• Updating the list of mental functions used for assessment of the Disability Tax Credit. This will make it easier for applicants to be assessed, reduce delays, and improve access to benefits
• Recognizing more activities in determining time spent on life-sustaining therapy and reducing the minimum required frequency of therapy to qualify for the Credit. The Government intends to undertake a review of these changes in 2023 to ensure they enable applicants to have a fair and proper assessment of their eligibility for the Disability Tax Credit
• Each year, an estimated 45,000 additional individuals are expected to qualify for the Disability Tax Credit, and related benefit programs linked to its eligibility, from these changes

We also committed to taking actions in key areas through Budget 2022, including the following:

• $272.6 million over five years to support the implementation of the Employment Strategy through the Opportunities Fund. This will help to address labour market shortages through increased participation by persons with disabilities and make workplaces more inclusive and accessible
  • $20 million of this funding will be allocated to the Ready, Willing and Able program to help persons with Autism Spectrum Disorder or intellectual disabilities find employment
• $25 million over 5 years to promote the economic and social inclusion of persons with print disabilities and help to create a barrier-free Canada through the following measures:
  • The production of alternative format materials by the Centre for Equitable Library Access and the National Network for Equitable Library Services
  • Research to better understand gaps in availability of accessible reading materials; and
  • A new Equitable Access to Reading Program to boost the production of accessible format reading materials through innovative partnerships

During summer 2021, in keeping with the Government’s commitment to the principle of “Nothing Without Us,” we engaged with the disability community through roundtable discussions, bilateral discussions, and an online public engagement survey that received almost 8,600 responses

Overwhelmingly, respondents indicated the importance of measures to improve the financial security of persons with disabilities so that they may experience levels of inclusion in all the areas of our society on an equal basis as others

I met virtually with provincial and territorial Ministers responsible for social services to brief my counterparts on the Disability Inclusion Action Plan and the proposed Canada Disability Benefit. Federal, provincial, and territorial Ministers committed to work together to improve the well-being of persons with disabilities across Canada

In December 2021, through the Social Development Partnerships Program – Disability component’s project funding stream, Independent Living Canada was selected as recipient of $650,000 to lead cross Canada engagement with the disability community on the design and implementation of key initiatives under the Disability Inclusion Action Plan

A coalition of disability organizations led by Independent Living Canada is working to solicit the perspectives of persons with disabilities into the design and implementation of key initiatives under the Disability Inclusion Action Plan. A What We Heard report was submitted by Independent Living Canada in early November and is currently being reviewed

Distinctions-based engagement with First Nations, Inuit, and Metis on the Plan continues. As part of this, funding is being made available to five National Indigenous Organizations for the provision of community perspectives on the Disability Inclusion Action Plan and the Public Health Agency-led National Autism Strategy. Funding (up to $400,000 from ESDC and $400,000 from the Public Health Agency of Canada) will flow through existing Engagement Protocol Agreements

Canada’s Disability Inclusion Action Plan next steps

The Disability Inclusion Action Plan is an evergreen plan

We are continuing to implement the Action Plan and will be establishing new governance structures to embed the involvement of persons with disabilities into government systems and processes. This includes setting up new Disability and Indigenous Persons with Disabilities Advisory Councils, as well as a Ministerial Leadership Group and a Senior Officials Group on Disability Issues

Other measures to be implemented include, for example, the development of performance indicators and a Data Improvement Strategy that will include targets to measure the impact of the Action Plan

11. Employment Strategy for Canadians with Disabilities

Commitment text: Launching an employment strategy for Canadians with disabilities

Employment Strategy for Canadians with Disabilities progress to date

Development of the Employment Strategy has been informed by ongoing consultations. Most recently, these included:

• The results of a survey conducted in Summer 2021 on the framework of the Disability Inclusion Action Plan
• A series of roundtables on disability inclusion in 2021
• Ongoing bilateral discussions with stakeholders; and
• Discussions with the COVID-19 Disabilities Advisory Group in 2021

Implementation of early deliverables under the Employment Strategy are underway. They are focused on supporting a disability-inclusive recovery by:

• Providing more skills training and employment supports for persons with disabilities
• Helping employers create inclusive, accessible and welcoming workplaces; and
• Improving the skills and capacities of organizations and individuals who support persons with a disability in employment

Budget 2022 announced $272.6 million over 5 years to support the implementation of an Employment Strategy for Canadians with disabilities through the Opportunities Fund for Persons with Disabilities.

A Call for Proposals was launched May 30, 2022, with new projects expected to begin before March 31, 2023. This investment will help to address labour market shortages through increased participation by persons with disabilities and by making workplaces more inclusive and accessible

These investments build on earlier enhancements to the Opportunities Fund, including $65 million provided in the 2020 Fall Economic Statement, and $15 million in emergency funding in June 2020 for a National Workplace Accessibility Fund. These investments have helped to mitigate the impacts of the COVID-19 pandemic and stimulate economic recovery from 2020 to 2021, to 2022 to 2023

The Employment Strategy forms an important part of the government’s Disability Inclusion Action Plan, which aims to improve the social and economic inclusion of persons with disabilities, and builds on more than $1.1 billion in funding that the federal government has committed to advance the inclusion of persons with disabilities since 2015

Employment Strategy for Canadians with Disabilities next steps

Over the coming years, the Employment Strategy will guide federal efforts to transform the Canadian labour market into one that is fully inclusive and accessible. It will embed and mainstream disability inclusion in federal skills training and employment programming and better coordinate the federal government’s many policies, programs and initiatives that aim to help persons with disabilities find and keep good jobs

In order to reach this goal and ensure the Employment Strategy is responsive to the diverse needs of this community, engagement with Canadians with disabilities, employers, disability experts and other stakeholders will continue in the months to come

If pressed on Employment Strategy

As much-needed supports are put in place, the focus will turn to creating an Employment Strategy that:

• Includes an evolving set of with forward-looking policy and program responses; ongoing engagement activities will inform future programming
• Embeds and mainstreams disability inclusion in federal programming, so persons with disabilities are equally served by targeted and broad-based skills employment programs
• Creates a whole-of-government approach that coordinates federal efforts and supports provincial and territorial efforts
• Takes a holistic approach to addressing barriers to entering and remaining in the labour force (for example, built environment, transportation, lack of supports, accessible housing); and
• Establishes key indicators and measures progress against targets

Prior to Budget 2022, the $40 million per year for the Opportunities Fund for Persons with Disabilities supported 85 national and regional projects, which served about 4,500 clients per year. The last program evaluation completed in 2020 found that the average annual earnings of participants increased by nearly 40 per cent over the 5-year period following participation in the program. It also found that an investment of $1 in the program yielded $1.70 in return over 10 years.

12. Access to Federal Disability programs

Commitment text: Undertaking a comprehensive review of access to federal disability programs, including for Canadians with mental health challenges

Access to Federal Disability Programs progress to date

To ensure an accurate assessment of the access to federal disability programs and benefits, we have consulted federal partners and reviewed data and evidence from an inventory of federal disability-related programs and benefits

Access to Federal Disability Programs next steps

My department will continue to work with other federal departments responsible for disability programs and benefits to confirm the scope and objectives of the comprehensive review of access to federal disability programs, including for Canadians with mental health challenges

In keeping with the Government’s commitment to the principle of “Nothing Without Us,” my department is committed to engaging with external stakeholders – including community leaders, policy leaders and people with lived experience of disability – on their experiences accessing federal disability programs and benefits, and priorities for reform

If pressed on Access to Federal Disability Programs

My department is exploring several initiatives, including looking at how to enhance access to federal programs and benefits, improving the coherence of assessments across federal programs, and undertaking research to support the development of a modern, human-rights based approach to determining eligibility

If pressed on Mental Health as Related to Persons with Disabilities

My department will ensure that this comprehensive review, including engagement activities and subsequent development of recommendations, will address how to improve access to federal disability programs and benefits for those with mental health related disabilities

13. Capacity in National Disability Organizations

Commitment text: Supporting national disability organizations to build capacity and partner in efforts to eliminate systemic barriers

Capacity in National Disability Organizations Progress to date

The Accessible Canada Grants and Contributions program has funded projects to increase capacity and enhance leadership within the disability stakeholder community, in order to raise awareness of the Accessible Canada Act, change attitudes and behaviours, and mobilize knowledge to advance accessibility and drive meaningful inclusion

Through the Social Development Partnerships Program (Disability component), ESDC provides funding to support the capacity of Canadian disability organizations and to build partnerships across the disability community and with other sectors

In December 2021, through the Social Development Partnerships Program – Disability component’s project funding stream, Independent Living Canada was selected as recipient of $650,000 to lead cross-Canada engagement with the disability community on the design and implementation of key initiatives under the Disability Inclusion Action Plan. This engagement is grounded in an intersectional approach and will highlight the perspectives of underrepresented and harder-to-reach populations within the disability community

In addition to this project, funding has been made available to 5 national Indigenous organizations for the provision of community perspectives on implementation of the Disability Inclusion Action Plan and the Public Health Agency-led National Autism Strategy. Funding (up to $400,000 from ESDC and $400,000 from the Public Health Agency of Canada) will flow through existing Engagement Protocol Agreements

Through this program, we are partnering with LIFT Philanthropy Partners to work with a group of disability organizations to increase their capacity to deliver on their mandates for social inclusion and employment outcomes for persons with disabilities

In spring 2022, an open competitive Call for Proposals was launched to support the capacity building of national disability organizations. Agreements for this work are expected to begin in the 2023 to 2024 fiscal year

I have also sought advice from my COVID-19 Disability Advisory Group related to this priority. Members of the Advisory Group are experts from the disability community and their role includes providing me with advice on disability inclusion and implementing my mandate

Capacity in National Disability Organizations next steps

In the spirit of our commitment to “Nothing Without Us,” under the Accessible Canada Act and the UN Convention on the Rights of Persons with Disabilities, we will continue to engage and involve persons with disabilities and disability organizations in the implementation of the Disability Inclusion Action Plan

Stakeholder engagement within the disability community and engagement with First Nations, Métis and Innu through national Indigenous organizations continues as part of the iterative process of including persons with disabilities in the implementation of the Disability Inclusion Action Plan

14. Access for Canadians with Print Disabilities

Commitment text: Advancing our commitment to permanently fund support services that ensure equitable access to reading and other published works for Canadians with print disabilities

Access for Canadians with Print Disabilities progress to date

Access to alternative format reading materials is critical for persons with print disabilities to be able to fully participate in Canadian society. That is why our Government is developing a long-term plan for services that enable access to published works for Canadians with print disabilities Budget 2022 announced $25 million over five years to promote the economic and social inclusion of persons with print disabilities and help to create a barrier-free Canada through the following measures:

• The production of alternative format materials by the Centre for Equitable Library Access and the National Network for Equitable Library Services
• Research and a survey of persons with print disabilities; and
• A new Equitable Access to Reading Program to boost the production of accessible format reading materials through innovative partnerships

This investment will provide long-term, stable funding in a dedicated and transparent program devoted to improving the availability of accessible print materials for persons with print disabilities, which marks a departure from the ad hoc nature of funding provided to Centre for Equitable Library Access and National Network for Equitable Library Services since 2015

These measures are in addition to previous investments in this area, including $10 million announced in the 2020 Fall Economic Statement for the not-for-profit sector to support the production of alternate format materials as the Canadian publishing industry made progress to adapt to publishing books that are born accessible. This support was on top of an additional $1 million in departmental investments in 2021 in recognition of the profound effect the pandemic had on production and the significant need for persons with print disabilities to have access to alternate format print materials as individuals were more isolated

These investments build on the $22.8 million over 5 years from Budget 2019 for the Canada Book Fund, delivered by Canadian Heritage. The Fund supports Canadian publishers in improving the accessibility of digital books

If pressed on Print Disabilities

With Budget 2022 funding, agreements with our current service providers, the Centre for Equitable Library Access and the National Network for Equitable Library Services, have been signed

Steps are also being taken to launch a survey on accessible print materials in 2023. A questionnaire for the survey has been drafted in collaboration with Statistics Canada. This will be complemented by engaging with the disability community and stakeholders to inform the design and implementation of the new program. This will support equitable access to alternative format reading materials for persons with print disabilities

We are aiming to launch and implement the new program by 2024 to 2025

15. Accessible Canada Act and Accessibility Standards

Commitment text: Proceeding with the implementation of the Accessible Canada Act and the harmonization of accessibility standards across Canada

Accessible Canada Act and Accessibility Standards progress to date

The Accessible Canada Regulations came into force on December 13, 2021, taking an important step towards a barrier-free Canada, and creating communities, workplaces and services that enable everyone to participate fully in society

These regulations require federally regulated organizations to report to the public on their policies and practices to identify, remove, and prevent barriers to accessibility. Under the regulations, public sector entities were required to publish their initial accessibility plans by December 31, 2022, and large private sector entities will need to publish their initial accessibility plans by June 1, 2023. Responsibility for compliance and enforcement of the Regulations is held by the Canadian Human Rights Commissioner

My department has begun early engagement on the next set of regulations under the Accessible Canada Act, which would deal with removing barriers in the area of information and communication technologies

Since 2021, my department has published guidance on accessibility plans and reporting requirements in order to help regulated organizations meet and exceed regulatory requirements

In addition, Canada’s first Chief Accessibility Officer, Stephanie Cadieux, was appointed and began her four-year appointment on May 2, 2022

As well, Canada’s first Accessibility Commissioner, Michael Gottheil, was appointed for 5-years starting on May 9, 2022

The Accessibility Commissioner is responsible for compliance and enforcement of the Accessible Canada Act, including the Accessible Canada Regulations

Other progress towards a barrier-free Canada has included:

• National celebrations led by my department since 2019 as part of the National AccessAbility Week, a significant milestone to recognize and celebrate the substantial contributions of Canadians with disabilities to our communities and workplaces across Canada
• The Accessible Canada Grants and Contributions program has funded projects to increase capacity and enhance leadership within the disability stakeholder community, in order to raise awareness of the Accessible Canada Act, change attitudes and behaviours, and mobilise knowledge to advance accessibility and drive meaningful inclusion
• To facilitate the mobilization of accessibility-related data, Canadians and regulated organizations can turn to an Accessibility Data Hub, established in collaboration with Statistics Canada in June 2021 as an evergreen repository of accessibility data
• The Federal Data Measurement Strategy for Accessibility 2022 to 2027, was published on June 1, 2022, to aid in measuring progress towards the identification, removal and prevention of barriers for persons with disabilities; and
• On May 26-27, 2022, my department hosted the first annual Canadian Congress on Disability Inclusion. Over these 2 days, Canadians from various sectors came together to exchange ideas and share groundbreaking insights, to help shape accessible and inclusively designed communities and workplaces across Canada

Accessibility Standards progress to date

Accessibility Standards Canada was established in 2019 with the mandate of developing national standards and facilitate the harmonization of accessibility standards across Canada

To date, eight technical committees have been established and are working on standards related to plain language, emergency egress, emergency measures, outdoor spaces, wayfinding and signage, employment, the built environment, and information and communication technology

Accessibility Standards Canada is also working in partnership with the Canadian Standards Association toward standards on accessible design for the built environment, accessible housing, and accessible design of interactive devices and electronic payment terminals

Accessible Canada Act next steps

My department will continue the development of standards-based regulations under the Act that deal with identifying and removing barriers in the priority areas such as Information and Telecommunication Technologies. We will also publish additional guidance to support regulated entities

Following a Call for Proposals launched in 2022, my department has finalized the next round of projects to receive Accessible Canada grants and contributions funding, expected to be announced in winter 2023

These projects are designed to promote accessibility and inclusion in communities and workplaces across Canada. They will also focus on increasing the participation of a diverse range of disability organizations, and on promoting partnerships between the disability community and other sectors in the implementation of the Accessible Canada Act and its regulations

Accessibility Standards next steps

Accessibility Standards Canada will continue the development of standards, will continue to fund research to inform its standards to engage with provincial counterparts with the goal of promoting uptake of the national standards as they are developed

16. Interest on Canada Student Loans, Canada Apprentice Loans

Commitment text: Permanently eliminate federal interest on Canada Student Loans and Canada Apprentice Loans

Interest on Canada Student Loans, Canada Apprentice Loans progress to date

To help mitigate the economic impact of COVID-19 on Canada Student Loan and Canada Apprentice Loan borrowers, a temporary moratorium on payments and interest accrual was initially implemented for six months (March 31 to September 30, 2020). An additional two-year interest waiver began on April 1, 2021

Through the 2022 Fall Economic Statement, the Government of Canada announced a plan to ease the burden on borrowers by permanently eliminating the accrual of interest on Canada Student Loans and Canada Apprentice Loans

Through an investment of $2.7 billion over five years and $556.3 million per year ongoing, as announced in the 2022 Fall Economic Statement , we have permanently eliminated interest on Canada Student Loans and Canada Apprentice Loans, starting on April 1, 2023

This measure will help approximately $1.2 million borrowers better manage their loan repayments each year and will also help ensure post-secondary education is more affordable over the longer term

Interest on Canada Student Loans, Canada Apprentice Loans next steps

Necessary legislative amendments to the Canada Student Financial Assistance Regulations, Canada Student Loans Regulations, and the Apprentice Loans Regulations will be advanced in winter 2023

Implementation on April 1, 2023, will ensure there is no gap in interest-free status following the end of the two-year interest waiver on March 31, 2023

If pressed about this measure and the Government’s action

The Government of Canada recognizes the importance of making post-secondary education affordable and accessible for all Canadians

We are committed to ensuring that post-secondary education is affordable and student debt is manageable

This measure will help ensure that borrowers’ student and apprentice loan payments remain manageable as Canadians face increased costs of living and rising financial pressures

The permanent elimination of interest builds on the two-year interest waiver that is set to expire on March 31, 2023, and complements more generous repayment assistance that was announced in Budget 2021 and implemented on November 1, 2022

Students from Quebec, Nunavut, and the Northwest Territories will not directly benefit from this measure as these jurisdictions do not participate in the Canada Student Financial Assistance Program. However, as set out in legislation, the three non-participating jurisdictions will receive compensation for this measure once it has been implemented, if their programs have “substantially the same effect” as this measure

17. Repayment Assistance Threshold for Canada Student Loan Borrowers

Commitment text: Increase the repayment assistance threshold to $50,000 for Canada Student Loan borrowers who are single and make appropriate adjustments to the thresholds for other family sizes

Repayment Assistance Threshold progress to date

As announced in Budget 2021, as of November 1, 2022, the Government of Canada increased the repayment assistance threshold from $25,000 to $40,000 for a single borrower (and higher for larger family sizes), indexed the thresholds to inflation, and lowered the cap on loan payments to 10% of a borrower's family income

Analysis related to the commitment to increase the repayment assistance threshold to $50,000 for Canada Student Loan borrowers who are single, and to make appropriate adjustments to the thresholds for other family sizes, is currently underway

We are working to advance this commitment in a way that complements other program changes, including giving consideration to the timing and sequencing of implementation

Repayment Assistance Threshold next steps

As part of this work, further engagement with provinces and territories and delivery partners is required as the decision to mirror this repayment measure for provincial loans are up to the provinces

Changes to repayment assistance will require regulatory amendments

If pressed about this measure and the Government’s action

The Government is committed to ensuring that post-secondary education is affordable and student debt is manageable for more borrowers, particularly those early in their careers who are earning less income than other workers, as well as those starting families, which adds to their financial obligations

Analytical work and consultation with provinces, territories, and service delivery partners will be required to advance this commitment in a way that ensures that delivery and costing impacts are understood by all stakeholders

18. New Parents, Repayment of Federal Student Loans

Commitment text: Allow new parents to pause repayment of their federal student loans until their youngest child reaches the age of five

New Parents, Repayment of Federal Student Loan progress to date

The Government is committed to ensuring that post-secondary education is affordable and student debt is manageable, including for parents of young children

On October 1, 2020, the Government of Canada introduced interest-free and payment-free leave for up to 18 months for Canada Student Loan borrowers who take a temporary leave from their studies for parental or medical reasons, including mental health

In addition, Budget 2021 committed to increasing the repayment assistance threshold from $25,000 to $40,000 for a single borrower (and higher for larger family sizes), indexing the thresholds to inflation, and lowering the cap on loan payments to 10% of a borrower's family income. These changes were implemented as of November 1, 2022

In the 2022 Fall Economic Statement, the Government committed to permanently eliminating interest on Canada Student Loans and Canada Apprentice Loans as of April 1, 2023. This will provide permanent relief to borrowers in repayment including those with children

Work is underway to advance this commitment in a way that complements other program changes while ensuring that new parents with outstanding student loans have the supports they need

New Parents, Repayment of Federal Student Loan next steps

Significant analytical work and consultation with provinces, territories, and service delivery partners will be required to advance this commitment, particularly in light of the changes to repayment assistance currently underway

If pressed about this measure and the Government’s action

The Government announced permanent elimination of interest on Canada Student and Apprentice Loans in addition to changes to the Repayment Assistance Plan that were implemented on November 1, 2022, to make loan repayment more affordable

19. Maximum Debt Forgiveness for Doctors, Nurse Practitioners and Nurses in Rural and Remote Areas

Commitment text: Increase by 50 per cent the maximum debt forgiveness for which family doctors, residents in family medicine, nurse practitioners and nurses who work in rural or remote areas are eligible under the Canada Student Loans Forgiveness program, expand the current list of eligible professionals and undertake a review to ensure that rural communities are fully eligible in order to improve access to health care and social services in rural communities

Debt Forgiveness progress to date

Budget 2022 included funding to implement the 50% increase, starting in 2023 to 2024. Work is underway to implement this commitment, which will require regulatory amendments and systems changes

Budget 2022 also committed to expanding the current list of eligible professionals under the benefit, with details to be announced in the coming year, and to undertake a review of the definition of ‘rural’ to ensure the measure does not leave out certain communities in need. These modifications are expected to be implemented in 2024 to 2025

An extensive consultation process involving dialogue with a broad range of actors to understand professions in shortage in rural and remote areas took place in 2022, including:

• Provincial and territorial authorities responsible for healthcare and student financial assistance; and
• Rural and remote municipalities, advocacy organizations, professional organizations, and post-secondary education students

The Canada Student Financial Assistance Program is also consulting with its third-party service provider to determine the impact the proposed changes would have on existing systems and processes, and to identify potential solutions to administer an expanded benefit

Analysis is underway on the rural definition review and expansion of eligible professions proposals

Debt Forgiveness next steps

We are studying the information gathered through the consultative process to inform the delivery of this commitment

If pressed on this measure and the Government’s action

The Government of Canada is committed to improving access to health care and social services in rural communities Currently, the Government offers loan forgiveness to eligible family doctors, residents in family medicine, nurse practitioners, and nurses who work in under-served rural or remote communities. In 2020 to 2021, $19.7 million Canada Student Loans were forgiven for almost 4,400 individuals through this initiative

20. Transition to a Low Carbon Economy

Commitment text: To support the future and livelihood of workers and their communities in the transition to a low carbon economy: Support the Minister of Natural Resources and the Minister of Labour in moving forward with legislation and comprehensive action to achieve a Just Transition, guided by consultations with workers, unions, Indigenous Peoples, employers, communities, and provinces and territories

Low Carbon Economy progress to date

The Minister of Natural Resources and the Minister of Labour are leading the Government of Canada’s efforts to ensure a just and equitable transition to a low-carbon future for workers and their communities

The Department has supported consultations on proposed Just Transition principles, legislation and advisory body. These sessions were held with labour organizations, industry, academia, non-governmental organizations, youth, as well as experts in skills, training, and diversity inclusion

Subsequent consultations took place with provinces, territories, and Indigenous organizations over the summer in 2022. A What We Heard Report is expected to be released in the coming months

The 2022 Fall Economic Statement provided $250 million in funding for a number of investments in skills for a net-zero economy, including funding for a Sustainable Jobs Secretariat and a Sustainable Jobs Training Centre. The Centre will bring together workers, unions, employers, and training institutions across the country to examine the skills of the labour force today, forecast future skills requirements, and help 15,000 workers upgrade or gain new skills for jobs in a low-carbon economy

Low Carbon Economy next steps

My department will continue to work with Natural Resources Canada to advance Just Transition related initiatives as well as to advance legislation and comprehensive action to achieve a Just Transition. This includes recent announcements on sustainable jobs in the 2022 Fall Economic Statement

21. Sustainable Jobs Training Centre

Commitment text: Launch a Clean Jobs Training Centre to help workers across sectors upgrade or gain new skills to be on the leading edge of the zero-carbon industry

Sustainable Jobs Training Centre progress to date

The 2022 Fall Economic Statement proposed to provide $250 million to fund several measures focusing on skills for a net-zero economy, including funding for a Sustainable Jobs Secretariat and a Sustainable Jobs Training Centre. The Centre will bring together workers, unions, employers, and training institutions across the country to examine the skills of the labour force today, forecast future skills requirements, and help 15,000 workers upgrade or gain new skills for jobs in a low-carbon economy

The Department leveraged Natural Resources Canada’s Just Transition consultations that were completed in May 2022 to seek views of a diverse group of stakeholders representing key players of Canada’s skills and training ecosystem to inform the design of a Sustainable Jobs Training Centre (formerly the Clean Jobs Training Centre)

The Sustainable Jobs Training Centre would focus on specific areas in high demand, starting with the sustainable battery industry and low-carbon building and retrofits

The 2022 Fall Economic Statement also proposes to establish a new sustainable jobs stream under the Union Training and Innovation Program to support unions in leading the development of green skills training for workers in the trades

Sustainable Jobs Training Centre next steps

Work is ongoing to determine the best approach to advance this commitment and launch a Sustainable Jobs Training Centre

22. Canada Training Benefit

Commitment text: Redesign and implement the Canada Training Benefit

Canada Training Benefit progress to date

My department is working on an approach for the redesign and implementation of the Canada Training Benefit

The Department completed engagement with key stakeholders in August and September 2022, building on input from the 2019 consultations on the Canada Training Benefit

Key stakeholders included employers and businesses, labour groups and unions, education and training providers, and not-for-profit organizations

Bilateral engagement with provinces and territories launched in fall 2022 has been concluded

Canada Training Benefit next steps

The information gathered through the engagement process will inform advice on the redesign and implementation approach

If pressed on why there is a need for redesign

Following the Budget 2019 announcement of the Canada Training Benefit, my department undertook consultations with provinces, territories, and stakeholders

These consultations revealed broad support for offsetting training costs and general recognition that training is underfunded by governments and employers

However, participants noted a number of concerns with the initial proposal, for example that many working adults with training needs would likely not qualify for EI (for example, part time workers, gig workers). In addition, given the impact of COVID-19, it is important to re-assess the proposed approach to be responsive to evolving needs

23. Sustainable Battery Industry Opportunities

Commitment text: Address gaps in training and upskilling to ensure that all Canadian workers can take advantage of sustainable battery industry opportunities

Sustainable Battery Industry progress to date

ESDC is working with other departments, such as Innovation, Science and Economic Development Canada and Natural Resources Canada, to support the skills dimension of the sustainable battery industry

In March 2022, ESDC concluded 2 Calls for Proposals for the Sectoral Workforce Solutions Program to launch new training-based projects to address the needs of the clean economy, the health sector, and other sectors that are key to post-pandemic economic growth

A first set of Sectoral Workforce Solutions Program projects started in fall 2022

In addition, the 2022 Fall Economic Statement proposed to launch a Sustainable Jobs Training Centre to help workers upgrade or gain new skills for jobs in a low-carbon economy. It will focus on specific areas in high demand, starting with the sustainable battery industry and low-carbon building and retrofits

Sustainable Battery Industry next steps

The second set of Sectoral Workforce Solutions Program projects from the open Call for Proposals is anticipated to begin in early 2023. ESDC will simultaneously continue to support project recipients in the launch of their projects and monitor progress

ESDC will continue to support the government’s efforts to develop Canada’s battery industry from a skills perspective and will advance work to launch a Sustainable Jobs Training Centre

If pressed on the Sectoral Workforce Solutions Program

A first set of Sectoral Workforce Solutions Program projects, with a combined funding of $98 million, started in fall 2022. Components of five projects have the potential to support various elements of the battery supply chain

24. Double the Union Training and Innovation Program

Commitment text: Double the Union Training and Innovation Program to support more apprenticeship training opportunities and partnerships in the Red Seal trades across Canada, and target greater participation from more diverse populations, including women, Indigenous people, newcomers, persons with disabilities, and Black and racialized Canadians

Double the Union Training and Innovation Program progress to date

Budget 2022 announced $84.2 million over 4 years to double funding for the Union Training and Innovation Program

Each year, the new funding will help 3,500 apprentices from equity-deserving groups begin and succeed in careers in the skilled trades through mentorship, career services, and job-matching

We launched a new Union Training and Innovation Program Call for Proposals from August to October 2022, for projects to support union investments in equipment and materials for training. Projects could start as early as March 2023

A second Call for Proposals was launched in October 2022 and concluded in December 2022, for projects to support innovative approaches to address challenges that limit apprenticeship outcomes

Implementation in Quebec is done through a separate agreement with the provincial government and negotiations were initiated in fall 2022

The 2022 Fall Economic Statement announced a new sustainable jobs stream under the Union Training and Innovation Program. The objective is to support unions in leading the development of green skills training for workers in the trades. My department is developing options for the implementation of this new commitment

Union Training and Innovation Program Sustainable Jobs Stream – Next steps

Further details on the sustainable jobs stream will be provided in the first half of 2023

If pressed on engagement with unions

Our Government recognizes the important role that unions play in providing quality training to apprentices in Red Seal trades

ESDC undertook extensive engagement with stakeholders, including unions, to support the implementation of the Union Training and Innovation Program. As part of the Program’s ongoing work, Department officials will continue to engage with apprenticeship stakeholders

25. Apprenticeship Service

Commitment text: Continue to advance the Canadian Apprenticeship Service in partnership with provinces, territories, employers and unions so that Red Seal apprentices have sufficient work experience opportunities, including with small and medium-sized employers, to finish their training on time and find well-paying jobs

Apprenticeship Service progress to date

The Government is investing over $393 million in 19 projects to help small and medium-sized employers hire over 42,000 new apprentices by March 31, 2024

Funded projects offer small and medium sized employers a financial incentive of $5,000 for each eligible first-year apprentice hired. This incentive is doubled to $10,000 when the apprentice hired is from an equity-deserving group – specifically, women, persons with disabilities, Indigenous people, members of 2SLGBTQI+ communities, racialized communities, and newcomers

In addition, funded projects offer eligible employers other supports to make it easier for small and medium-sized employers to hire first-year apprentices, such as welcoming workplace training

If pressed on how to access the financial incentives and other supports

Employers can find information on how to apply for the financial incentives and other supports on the Government of Canada’s Apprenticeship Service website

26. National Campaign to Promote Skilled Trades

Commitment text: Continue to support the work of the national campaign to promote the skilled trades as first choice careers for young people and diverse populations

National Campaign to Promote Skilled trades progress to date

The national campaign to promote skilled trades was launched in January 2022 and concluded at the end of March 2022. It included marketing products, as well as an advertising campaign

Building on the success of the first phase, and noting the sustained demand for skilled trades, we have renewed the campaign

The second phase of the campaign launched in fall 2022. It focuses on youth who are choosing their post-secondary career path, young adults who are looking to change careers, and on parents and caregivers of youth, encouraging them to discuss the skilled trades with the youth in their lives

If pressed on National Campaign to Promote Skilled trades

Our Government is a strong supporter of apprenticeship and the skilled trades that provide Canadians with well-paying, rewarding careers

That is why our Government invests nearly $1 billion annually in a broad array of apprenticeship supports and skills training initiatives

These investments will encourage more young people to obtain an exciting new career in the skilled trades

27. Trusted Employer System now known as Recognized Employer Pilot

Commitment text: With the Minister of Immigration, Refugees and Citizenship, (1) establish a Trusted Employer system for Canadian companies hiring temporary foreign workers and, (2) as part of improving the Global Talent Stream of the Temporary Foreign Worker Program, simplify permit renewals, uphold the two-week processing time and establish an employer hotline

(1) Recognized Employer Pilot progress to date

Budget 2022 announced $29.3M over three years to introduce an Recognized Employer Pilot that reduces red tape in the Temporary Foreign Worker Program for repeat employers who meet the highest standards for working and living conditions, protections, and wages in high-demand fields

My department continuously reviews Program policies to ensure they reflect the latest economic conditions, and works actively with provinces and territories to understand and help meet their labour needs, while also ensuring the rights and protections of workers

(1) Recognized Employer Pilot next steps

My department is actively working with Immigration, Refugees and Citizenship Canada to design and implement the Recognized Employer Pilot

Engagement with provinces and territories is expected to begin in the months to come , including with Quebec for implementation in accordance with the Canada-Quebec Accord

We will be conducting employer outreach on the Recognized Employee Pilot in summer 2023

(1) If pressed on Recognized Employer Pilot

Temporary Foreign Workers (TFWs) that come to Canada contribute to the economy by filling skills and labour shortages in a range of sectors, including agriculture and fish and other food processing

The Recognized Employer Pilot will streamline the current Labour Market Impact Assessment (LMIA) application process for returning employers with a good record of hiring TFWs to fill positions that cannot be filled by domestic workers

(2) Permit Renewals, 2-week Processing Times and Employer Hotline progress to date

I share this mandate commitment with the Minister of Immigration, Refugees and Citizenship, as work permit renewals are under his authority

In April 2022, the maximum work duration for the Global Talent Stream Labour Market Impact Assessment (LMIA) was increased to 3 years, which will mean that fewer work permit renewals will be needed over time, and that foreign workers who wish to pursue permanent residence will have more time to do so

My department consistently meets or exceeds the 10 business day service standard for processing Labour Market Impact Assessments under the Global Talent Stream

A Global Talent Stream contact line for the Temporary Foreign Worker Program is also already in place

A dedicated team provides all Global Talent Stream employers with personalized, high-touch assistance throughout the Labour Market Impact Assessment process

ESDC officials continue to support IRCC’s ongoing efforts towards meeting their department’s service standards for work permit processing under the Global Talent Stream (within 2 weeks, 80% of the time)

(2) Permit Renewals, 2-week processing times and Employer Hotline Next Steps

My department will continue to support IRCC’s ongoing efforts towards reducing processing times for work permit applications under the Global Talent Stream, and enhancing client experience for temporary foreign workers in relation to work permit renewals

Foreign Credential Recognition

Commitment text: Continue to work with provinces, territories and regulatory bodies to improve foreign credential recognition

28. Foreign Credential Recognition Progress to date

Budget 2022 announced an additional $115 million over five years, with $30 million ongoing, to expand the Foreign Credential Recognition Program with an initial focus on supporting internationally educated health professionals integrating into the Canadian labour market

Along with existing funding, this new investment will allow for up to 11,000 skilled newcomers per year to get their credentials recognized and find work in their field

Through the Foreign Credential Recognition Program, we are funding partners across the country who are helping newcomers navigate Canada’s credential recognition systems

The Program currently has several active projects with provinces, territories and regulatory bodies to improve foreign credential recognition processes

For example, the Program is funding a project with the Government of New Brunswick to test innovative ways to recruit, bridge, and employ internationally educated nurses, and support them in obtaining licensure as nurses in New Brunswick

The Program is currently investing over $22M in 20 projects focusing on the labour market integration of internationally educated health professionals. Additionally, as of June 2022, over $16 million in Foreign Recognition loans have been issued, —two thirds of which were in the health sector

On December 5, 2022, we launched an Open Call for Proposals to invite eligible organizations to submit projects proposals that support the labour market integration of skilled newcomers in the health sector and supports internationally educated health professionals

Foreign Credential Recognition next steps

The Program is in the process of negotiating new Foreign Credential Recognition loan agreements with seven organizations across Canada

29.Sector-based Work Permits and Inspections

Commitment text: With the support of the Minister of Agriculture and Agri-Food, implement sector-based work permits and strengthen the inspection regime to ensure the health and safety of temporary foreign workers

Sector-based Work Permits and Inspections progress to date

Budget 2022 announced $14.6 million in 2022 to 2023, and $3 million in remaining amortization, to improve the quality of employer inspections and hold employers accountable for the treatment of workers

My department is working with Agriculture and Agri-food Canada to assess how best to support the design and implementation of possible program measures, including to create a new sector-based work permit

We have taken steps to improve the quality and timeliness of our inspections, reduce backlogs, and increase resources to strengthen inspection processes and operations

Sector-based Work Permits and Inspections next Steps

Work is underway, in coordination with Immigration, Refugees and Citizenship Canada, to strengthen the inspection regime

My department intends to engage with stakeholders on the design and implementation of measures that include a new sector-based work permit

If pressed on inspections

The health and safety of temporary foreign workers is of the utmost importance to me, my colleagues, and the Government of Canada. Like every worker in Canada, they deserve to be safe in their workplaces

We are committed to increasing awareness of program conditions with employers to better protect temporary foreign workers, and continue improving the quality and timeliness of our inspections of employers to support the protection of the health and safety of temporary foreign workers

30. Sector-specific Agricultural Labour Strategy

Commitment text: Support the Minister of Agriculture and Agri-Food in developing a sector-specific Agricultural Labour Strategy to address persistent and chronic labour shortages in farming and food processing in the short and long term

Sector-specific Agricultural Labour Strategy progress to date

My department has been working with Agriculture and Agri-Food Canada on a path forward to address the Agricultural sector’s chronic labour shortages

We have also been sharing labour market information, including initiatives to improve skills measurement, trend analysis and forecasting, as well as information on the suite of skills programs available to support and alleviate pressures on the agriculture and agri-food sector

These initiatives and programs include, but are not limited to:

• The Temporary Foreign Worker Program, the Sectoral Workforce Solutions Program, Indigenous Skills and Employment Training Program, the Skills and Partnership Fund, the Red Seal Program, the Union Training and Innovation Program, as well as the Employment Strategy for Canadians with Disabilities as part of the first-ever Disability Inclusion Action Plan

Of note, in March 2022, ESDC concluded two Calls for Proposals for the Sectoral Workforce Solutions Program to launch new training-based projects to address the needs of the clean economy; the health sector; and other sector that are key to post-pandemic economic growth, such as agriculture and agri-food

Public consultations on the Strategy opened June 27, 2022 and closed September 28, 2022. Feedback submitted as part of the online questionnaire will inform the development of the Strategy

AAFC is also in the process of holding direct and targeted engagement with provinces and territories, employers, unions, workers, and others, including on the revival of the FPT Agricultural Labour Task Team

Sector-specific Agricultural Labour Strategy next steps

We will continue to work with Agriculture and Agri-Food Canada to advance this important work, and look forward to the results of its now completed public consultations on the National Agricultural Labour Strategy, and the publication of its What We Heard Report later this year

If pressed on the Sectoral Workforce Solutions Program

Through the Sectoral Workforce Solutions Program, we launched projects in key sectors starting in fall 2022 and are expected to launch additional projects in early 2023, and this may include projects that help to address labour shortages in the Agriculture and Agri-food sector

If pressed on labour shortages

Attracting and retaining workers in the agricultural and agri-food sector through incentives is an important consideration. ESDC has numerous initiatives and programs to encourage Canadians, including those from equity-deserving groups, to explore, prepare for, participate and succeed in various jobs

The agriculture sector is an important part of our economy and Temporary Foreign Workers play a vital role in parts of this sector. We are committed to working with Agriculture and Agri-Food Canada on a whole-of-Government approach to addressing the labour and skills shortages to support building an inclusive workforce that can thrive in a rapidly evolving labour market

31. Sectoral Workforce Solutions Program, Wrap-around Supports

Commitment text: Make it easier for women and vulnerable groups to access training by requiring businesses supported through the Sectoral Workforce Solutions Program to include wrap-around supports

Sectoral Workforce Solutions Program, Wrap-around Supports progress to date

The Sectoral Workforce Solutions Program is well positioned to fund training projects that will include wrap-around supports for those facing barriers to participation. This could include, for example, accommodation, transportation and childcare costs, as well as expenses related to specialized services, arrangements or equipment

In March 2022, ESDC concluded 2 Calls for Proposals for the Sectoral Workforce Solutions Program to launch new training-based projects to address the needs of the clean economy; the health sector; and other sectors that are key to post-pandemic economic growth

The 2 Calls for Proposals included parameters requiring project applicants to provide wrap-around supports, as needed to those facing barriers to participating in training initiatives. Particularly, for women and equity-deserving groups

For the purposes of the Sectoral Workforce Solutions Program, equity-deserving groups include women, persons with disabilities, Indigenous Peoples, racialized Canadians or visible minorities, newcomers and members of the 2SLGBTQI+ community

We launched the first round of Sectorial Workforce Solution Program projects in fall 2022 with the second round expected to be launched in early 2023

32. GBA Plus

Commitment text: Support the Minister for Women and Gender Equality and Youth in the evaluation process of GBA Plus with the goal of enhancing the framing and parameters of this analytical tool, and with particular attention to the intersectional analysis of race, indigeneity, rurality, disability and sexual identity, among other characteristics

GBA Plus progress to date

Women and Gender Equality Canada has established a steering committee which will serve as the governance for this commitment

In order to improve Gender and Diversity Outcomes in Skills Programs (a Budget 2019 measure), my department has developed and is implementing a GBA Plus Strategy

The Strategy supports the integration of intersectional analysis through various capacity building activities to enable departmental staff to have the analytical capacity to incorporate GBA Plus in all stages of the development and implementation and continual improvement of skills programs

The Department has also created an engagement strategy for partners and stakeholders on the skills programs

GBA Plus was the subject of an Office of the Auditor General of Canada Performance Audit, which was tabled on May 31, 2022, in the House of Commons. It concluded that the government has not done enough to improve gender equality outcomes for diverse groups of people

Key findings of the audit:

• The audit found that gaps persisted in departments and agencies’ capacity to perform GBA Plus, including the availability and use of disaggregated data to analyze gender and diversity issues, inform the design and delivery of programs, and achieve outcomes that benefit all Canadians
• The audit found weaknesses in monitoring and reporting on the implementation and impacts of GBA Plus across government

GBA Plus next steps

Going forward, my department will work with Women and Gender Equality Canada to implement a new suite of GBA Plus tools, and support the integration of intersectional analysis in ESDC’s policies and programs by providing training, partnering on projects and knowledge sharing

If pressed on GBA Plus

ESDC has a long history of commitment to advancing gender equality from 1954, when the Women’s Bureau was first established as part of the former Department of Labour, to now where the Bureau has transformed into the GBA Plus Centre of Expertise with an expanded scope of its original mandate to address barriers faced by diverse groups of Canadians

ESDC recognizes the importance of understanding the experiences of diverse populations, and how we must also examine the impacts of our programs, policies, and services across these different groups of Canadians

Applying a GBA Plus lens enables ESDC to examine the intersection of identities (such as gender and race) within and across diverse groups, which allows us to better understand the unique experiences and challenges they face

My department is committed to enhancing GBA Plus and working with WAGE to improve government programs for all Canadians

9.a. Scenario note

1. Overview

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) has invited you to appear in view of its study of the Supplementary Estimates (B), 2022 to 2023.

2. Committee Proceedings

Your appearance is scheduled to take place on Tuesday, February 7, 2023, from 4:30 pm to 5:30 pm

You will be accompanied by:

• Jean-François Tremblay, Deputy Minister of Employment and Social Development (in-person)
• Karen Robertson, Chief Financial Officer (in-person)
• Andrew Brown, Senior Assistant Deputy Minister, Skills and Employment Branch (in-person)
• Elisha Ram, Senior Assistant Deputy Minister, Income Security and Social Development Branch (in-person)
• Tammy Belanger, Senior Assistant Deputy Minister, Benefits and Integrated Services Branch
• Atiq Rahman, Assistant Deputy Minister, Learning Branch (in-person)

Mike MacPhee, Assistant Deputy Minister, Temporary Foreign Workers Program

Minister O’Regan has appeared on the same subject on February 3. Minister Khera is scheduled to appear on February 10, followed by Minister Gould and Minister Hussen on February 14.

You will have up to 5 minutes for opening remarks.

You have no outstanding follow up written responses due to the Committee. The last written response submitted from your previous appearance on C-22, CDB Act, on October 31, 2022 was submitted on December 6, 2022.

HUMA has agreed that questioning of witnesses would be allocated as follows:

In round one, there are 6 minutes for each party in the following order:

• Conservative Party
• Liberal Party
• Bloc Québécois; and
• New Democratic Party

For the second and subsequent rounds, the order and time for questioning is as follows:

• Conservative Party, 5 minutes
• Liberal Party, 5 minutes
• Bloc Québécois, 2 and a half minutes
• New Democratic Party, 2 and a half minutes
• Conservative Party, 5 minutes; and
• Liberal Party, 5 minutes

3. Anticipated questions

Topic: Disability Inclusion

• C-22, CDB Act
• Disability Inclusion Action Plan
• People with disabilities seeking MAiD because they live in poverty or are not getting the supports requested to live in dignity

Anticipated questions

• Why not provide an interim benefit, or some DSB payments similar to the one issued in 2020?
• How will the DIAP measure progress and success, especially on employment for persons with disabilities?
• What is currently being done to address persons with disabilities from seeking recourse to MAID because their supports do not allow them to live in dignity?

Topic: Employment Insurance

• EI Modernization
• EI Claims
• Sickness Benefits
• EI Premiums
• One EI zone for Prince Edward Island

Anticipated questions

• When will EI reform be presented?
• Why is it taking so long?
• Is the EI program nimble enough to provide support to Canadians should a recession come?
• Will Canadians be left behind?
• Why were the temporary measures terminated while the promised modernization is not yet announced, let alone in place?
• Why are there delays to process EI claims?
• Will the Government support 52 weeks of sickness benefits and grant a royal recommendation to Bill C-215 (Jacques Gourde, CPC)?
• Will the Government halt the increase of EI premiums?
• Do you support one EI zone for Prince Edward Island, as is being debated in the Senate with Bill S-236?
• Did ESDC officials purposefully mislead Senators when discussing S-236?

Topic: Labour Shortage

• Labour Shortage
• Skills Training
• Temporary Foreign Worker Program

Anticipated questions

• How widespread is Canada’s labour shortage? What sectors are being impacted?
• What is the Government doing to address the labour shortage problem in Canada?
• What is being done to address the skills mismatch between employers and workers?
• What is being done to improve skills training for Canadian workers?
• Will the Government make it easier to bring in TFWs to address the labour shortage?
• Will the government ease the administrative burden and processing delays for employers who are trustworthy and consistently use the program due to significant labour shortages in their industry and region? Trusted Employer model?
• The situation and processing times for TFW is very difficult and yet, ESDC is requesting $18.7 million to address increased LMIA volume pressures. Wouldn’t it be more efficient to remove the obligation from LMIA?
• What is being done to ensure TFWs are informed of their rights? What is being done to keep them safe?
• What is the government doing to increase the reach of TFWP inspections to the extent possible and to improve the quality of the TFWP inspections?
• In terms of labour shortage, will the government expedite and streamline the arrival of temporary foreign workers for our SMEs?
• BQ: Why is the government continuing to demand that businesses do labour market impact assessments when Quebec has already done them?

Topic: Students

• Eliminating Interest on Student Loans
• Canada Student Grant/Students living in poverty
• Skilled Trades

Anticipated questions

• How much will eliminating interest on student loans cost the government? Why did it take so long to make this permanent?
• How will students currently repaying their student loans be impacted by this new policy? Will it be retroactive?
• Will provincial governments follow suit and eliminate their interest on their portion of student loans?
• With inflation and housing costs, is the Canada Student Grant and other government programs providing enough support to sustain and encourage post-secondary education?
• What is being done to encourage skilled trades as a PSE option?

9.b. Committee profile

House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities – (HUMA) Committee profile – (October 2022)

HUMA Membership

• Chad Collins (LPC)
• Michael Coteau (LPC)
• Wayne Long (LPC)
• Soraya Martinez Ferrada (LPC)
• Robert (Bobby) J. Morrissey (LPC)
• Tony Van Bynen (LPC)
• Rosemarie Falk (CPC)
• Michelle Ferreri (CPC)
• Tracy Gray (CPC)
• Scott Aitchison (CPC)
• Bonita Zarrillo (NDP)
• Louise Chabot (BQ)

Liberal party of Canada

• Chad Collins, Ontario
• Michael Coteau, Ontario
• Wayne Long, New Brunswick
• Soraya Martinez Ferrada, Québec, PS for Housing and Diversity and Inclusion (Housing)
• Robert (Bobby) J. Morrissey, Prince Edward Island
• Tony Van Bynen, Ontario

Conservative party of Canada

• Rosemarie Falk, Saskatchewan
• Michelle Ferreri, Ontario
• Tracy Gray, Vice-Chair, British Columbia
• Scott Aitchison, Ontario

New democratic party of Canada

• Bonita Zarrillo, British Columbia, Disability Inclusion Critic

Bloc Québécois

• Louise Chabot, Québec, Employment, Workforce Development and Labour Critic

Committee members biography

Chad Collins Liberal Party Hamilton East—Stoney Creek – Ontario

Brief biography

Chad Collins was first elected to the House of Commons for Hamilton East – Stoney Creek on September 20, 2021. A lifelong resident of Hamilton East – Stoney Creek, Chad resides in the Davis Creek area with his wife Mary and 2 children, Chase and Reese. He attended Glendale Secondary School, the University of Western Ontario, and McMaster University. Chad was first elected to City Council in 1995, at the age of 24, making him one of the youngest elected representatives in the City's history.

Chad is passionate about engaging local residents and community stakeholders, focusing on revitalization of infrastructure, development of social housing and stream-lining municipal programs.

As President of City Housing Hamilton, Chad has been committed to addressing the City's aging affordable housing stock by pressuring all levels of government to invest in the much needed repair of over 7,000 publicly owned units. He continues to work on nearly a dozen new projects across the City and in the riding that will provide new affordable housing units to those in need.

From the creation and development of new community parks and trails to the opening of a new food bank, Chad knows community consultation is an integral part of improving quality of life for everyone in Hamilton East – Stoney Creek.

Of note:

• Key issues of interest:
  • affordable housing

Michael Coteau Liberal Party Don Valley East – Ontario

Brief biography

Michael Coteau was first elected to the House of Commons for Don Valley East on September 20, 2021. He has served as the Member of Provincial Parliament for Don Valley East since 2011. During his time in the Ontario government, his ministerial roles include: Minister of Children and Youth Services; Minister Responsible for Anti-Racism; Minister of Tourism, Culture and Sport; Minister Responsible for the 2015 Pan/Parapan American Games; and Minister of Citizenship and Immigration.

Prior to entering the provincial government, Michael was elected as a school board trustee for the Toronto District School Board (TDSB) in 2003, 2006 and 2010. As a trustee, Michael advocated for student nutrition, community use of space and the use of educational technology. He initiated the ‘Community Use of Schools’ motion that drastically cut user fees and made schools more accessible to groups that offer programs for children. He helped introduce nutritional changes in schools that supported healthy food programs and increased awareness of student hunger.

Michael worked as an ESL instructor and curriculum developer before becoming a community organizer for a United Way agency in Scarborough. He was also the Marketing Manager for ABC Life Literacy, where he was responsible for the organizing of the Family Literacy Day across Canada, and was Executive Director of Alpha Plus, a national literacy organization mandated to support adult education through the use of technology.

Michael grew up in Don Valley East and attended Don Mills Middle School and Victoria Park Collegiate Institute. He holds a degree from Carleton University in Political Science and Canadian History. He and his wife Lori live in Toronto with their 2 daughters, Maren and Myla.

Of note:

• spent 10 years in the Ontario legislature
• Key issues of interest:
  • low-income families

Wayne Long Liberal Party Saint John — Rothesay – New Brunswick

Brief biography

Wayne Long was first elected to the House of Commons for Saint John — Rothesay in 2015 and was re-elected in 2019 and 2021. He is a member of the Saint John community with national and international business experience. Wayne currently serves as President of the Saint John Sea Dogs, and his efforts have helped turn the team into one of Canada’s most successful CHL hockey franchises winning the cherished Memorial Cup in 2011. That same year, Wayne was recognized with the John Horman Trophy, awarded to the Top Executive in the QMJHL.

Prior to his work with the Sea Dogs, Wayne was President of Scotiaview Seafood Inc. He was also a successful large-scale product manager with Stolt Sea Farm Inc. Wayne’s work has seen him travel across North America, negotiating contracts with national restaurant distributors, restaurant chains, and retail chains. He earned the North American Excellence in Sales and Marketing award twice. Wayne is a former Board Member for Destination Marketing and Salmon Marketing.

Wayne was born in the riding, and currently calls the area home alongside his wife, Denise, and their 2 children, Khristian and Konnor.

Of note:

• Has been a member of HUMA since the beginning of the 42nd Parliament (2015)
• Key issues of interest:
  • poverty
  • mental health
  • outspoken support of the Energy East oil pipeline project
  • previously broken ranks with party (Energy East, tax policy, SNC-Lavalin) which resulted in being kicked off House committees as punishment
  • frequently makes sports parallel (hockey)
  • government programs and support that benefit his constituents

Soraya Martinez Ferrada Liberal Party PS for Housing and Diversity and Inclusion (Housing) Hochelaga – Québec

Brief biography

Soraya Martinez Ferrada was first elected to the House of Commons for Hochelaga in 2019 and re-elected in 2021. She was appointed Parliamentary Secretary to the Minister of Immigration, Refugees and Citizenship in 20219 and became Parliamentary Secretary to the Minister of Transport in 2021. She has also served on the Standing Committee on Official Languages in the last Parliament.

She is a proud resident of the east end of Montréal. Originally from Chile, her family settled in the area in the 1980s. Soraya has deep roots in the community where she currently resides with her son and daughter.

Before being elected, Soraya worked for more than 20 years in the community where she specialized in communications and developed multiple cultural and political projects. Among her achievements, she created the very first cultural and socio-professional integration program at TOHU, a unique example of sustainable development in Montréal.

In 2005, she was elected as a city councillor and appointed by the mayor to the position of Associate Advisor for Culture on the City’s Executive Committee. In 2009, she became Chief of Staff to the Leader of the Official Opposition at Montréal City Hall. She transitioned to the federal government in 2015 as Chief of Staff and Senior Advisor to the Minister of Canadian Heritage.

She created the Vedette d’Hochelaga video clips in which she highlights the commitment of citizens, community organizations, and entrepreneurs in the riding of Hochelaga. She has also set up virtual roundtables and regular newsletters that present federal programs directly serving the people of her riding.

Of note:

Parliamentary Secretary – Housing and Diversity and Inclusion (Housing)

• Key issues of interest:
  • poverty
  • Quebec-focused
  • multiculturalism

Robert (Bobby) J. Morrissey Liberal Party Egmont Prince Edward Island

Brief biography

In 2015, Bobby was elected to the House of Commons and was re-elected in 2019 and 2021. He served as a Member on the Standing Committee on Fisheries and Oceans, as well as the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.

Previously, he was elected to the Prince Edward Island Legislative Assembly in 1982 and has dedicated his career and volunteer life to serving the residents of PEI.

Having served as MLA for nearly 20 years, Bobby has a deep understanding of his communities’ needs. He has held a number of high-profile roles within the Assembly, such as Minister of Transportation and Public Works, Minister of Economic Development and Tourism, and Opposition House Leader. He was also responsible for the redevelopment of the Canadian Forces Base Summerside and the surrounding community following its closure by the federal government in 1989. Bobby left politics in 2000 to join the private sector as a consultant specializing in government relations, fisheries, and the labour market. Bobby has been a member of the Board of Directors for the Heart & Stroke Foundation of PEI. He was the founding member and former president of the Tignish Seniors Home Care Co-op, and Vice-Chair of Tignish Special Needs Housing.

Of note:

• Chair of HUMA
• former member of HUMA in 2019 (briefly before the general election)

Tony Van Bynen Liberal Party Newmarket — Aurora – Ontario

Brief biography

Tony Van Bynen was first elected to the House of Commons for Newmarket-Aurora in 2019 and re-elected 2021. A resident of Newmarket for over 40 years, Tony and his wife Roxanne raised their 2 daughters there.

Community service, volunteerism, and helping those who need it most is what drives Tony every day. He and Roxanne have volunteered at the Southlake Hospital, and the Inn from the Cold, for over 10 years. They also deliver food for the Newmarket Food Bank, and Tony was instrumental in creating Belinda’s Place, which is a multi-purpose facility for homeless and at-risk women.

He also had the privilege of serving as the Mayor of Newmarket for 12 years. During that time, community building is what guided Tony on his mission to revitalize Main Street, renew the historic Old Town Hall, and build the Riverwalk Commons so families and friends can enjoy great public places.

Through his previous role as the President of the Chamber of Commerce, and his 30-year career in banking, Tony understands what local businesses need to thrive and grow. He’s delivered innovative solutions to help local business owners find success, including creating the Envi broadband network, so businesses in the community have ultra-high-speed connectivity, which has been particularly crucial during the pandemic.

Of note:

Key issues of interest: Focused studies to help Canadians, especially getting through the pandemic

Rosemarie Falk Conservative Party Associate Labour Critic— Battlefords-Lloydminster Saskatchewan

Brief biography

Rosemarie Falk is the Conservative candidate for Battlefords-Lloydminster. Rosemarie was born and raised in Lloydminster, Saskatchewan. Along with her husband Adam, she is now raising her children there. She has always been actively engaged in her community. Throughout her social work career and extensive volunteer work she has worked with some of the most vulnerable members of the community.

Rosemarie was first elected to the House of Commons in a by-election on December 11, 2017. Prior to this, Rosemarie worked as a registered Social Worker in Saskatchewan and has a Bachelor of Social Work from the University of Calgary. She also has experience as a legal assistant specializing in family law and as a legislative assistant in federal politics.

In October 2022, under the new Conservative Party leader, she was named to the new Official Opposition's Shadow Cabinet as the Associate Shadow Minister for Labour and Associate Labour Critic.

Of note:

• She has served as a member of the Standing Committee on Citizenship and Immigration and as a member of the Standing Committee on Human Resources, Skills and Social Development and Status of Persons with Disabilities.
• Rosemarie is committed to being a strong voice for seniors, families, taxpayers and rural communities.
• Associate Critic- Labour in the Official Opposition's shadow cabinet

Michelle Ferreri Conservative Party for Families, Children and Social Development Critic Peterborough Kawatha- Ontario

Brief biography

Michelle is the Member of Parliament for Peterborough-Kawartha and was elected in the 2021 federal election. Michelle was appointed as Shadow Minister for Tourism as part of the Conservative Shadow Cabinet for the 44th Parliament. In October 2022, under the new Conservative Party leader, she was named to the new Official Opposition's Shadow Cabinet as the Minister for Families, Children and Social Development.

Prior to being elected, Michelle was a well-known community advocate, an award-winning entrepreneur, a committed volunteer, and a highly sought-after public speaker and social media marketer.

Michelle has over 20 years’ experience in media, marketing and public speaking. During her time as a reporter, one of Michelle’s most memorable experiences was when she had the opportunity to visit the Canadian Forces Base, Alert and fly to the station on a C-17 Globemaster.

Michelle is a graduate of Trent University (Biology/Anthropology) and Loyalist College (Biotechnology). Her education in science has led her to be a passionate advocate for physical and mental health.

She is a proud mother of three children, between the ages of 12 and 17, and shares her life with her supportive partner, Ryan, and his three daughters.

Of note:

• She is a member of the Standing Committee on the Status of Women since December 9, 2021
• Michelle is interested in physical and mental health, housing, the economy and food security
• Critic- Families, Children and Social Development in the Official Opposition's shadow cabinet

Tracy Gray Conservative Party Employment, Future Workforce Development and Disability Inclusion Critic Calgary Midnapore – Kelowna- Lake Country- British Columbia

Brief biography

Tracy was elected to serve as Member of Parliament for the riding of Kelowna-Lake Country in October 2019. In October 2022, under the new Conservative Party leader, she was named to the new Official Opposition's Shadow Cabinet as the Shadow Minister for Employment, Future Workforce Development and Disability Inclusion. She previously served as Shadow Minister for Interprovincial Trade and as the Shadow Minister for Export Promotion and International Trade.

Tracy has extensive business experience and worked most of her career in the BC beverage industry. She founded and owned Discover Wines VQA Wine Stores, which included the number one wine store in BC for 13 years. She is has been involved in small businesses in different sectors including financing, importing, oil and gas service and a technology start-up.

The daughter of a firefighter and Catholic School teacher, Tracy grew up around service and a strong work ethic. She has one son and been married for 27 years.

Tracy has received many accolades including RBC Canadian Woman Entrepreneur of the year, Kelowna Chamber of Commerce Business Excellence Award and 100 New Woman Pioneers in BC.

Tracy served with many organisations over the years. She was appointed to serve by BC Cabinet to the Passenger Transportation Board and elected to the Board of Prospera Credit Union for 10 years. In addition, she served on the Okanagan Film Commission, Clubhouse Childcare Society, Okanagan Regional Library Trustee and Chair of the Okanagan Basin Water Board.

Stephanie speaks English, French, and Spanish fluently, and enjoys traveling and spending time with her husband James and their son Edward.

Of note:

• Critic – Employment, Future Workforce Development and Disability Inclusion in the Official Opposition's shadow cabinet.
• Sponsor: Bill C-283, An Act to amend the Criminal Code and the Corrections and Conditional Release Act (addiction treatment in penitentiaries) and M-46 National Adoption Awareness Month (outside order of precedence).

Scott Aitchison Conservative Party Housing and Diversity and Inclusion Critic—Parry Sound—Muskoka – Ontario

Brief biography

Scott Aitchison was born and raised in Huntsville, Ontario. After leaving home at 15, Scott was raised by the character of his hometown. In October 2022, under the new Conservative Party leader, he was named to the new Official Opposition's Shadow Cabinet as the Shadow Minister for Housing and Diversity and Inclusion.

Scott was first elected at the age of 21 to Huntsville Town Council. After serving as Town Councillor, District Councillor and Deputy Mayor, he was elected as Mayor of Huntsville in 2014 on a promise of fiscal discipline, responsible governance and excellent customer service. As Mayor, he built a reputation as a consensus-builder relentlessly focused on breaking down barriers and finding solutions.

Of note:

Critic – Housing and Diversity and Inclusion in the Official Opposition's shadow cabinet

Bonita Zarrillo New Democratic Party Disability Inclusion Critic Port Moody—Coquitlam British Columbia

Brief biography

Bonita Zarrillo was first elected as Member of Parliament for Port Moody-Coquitlam in 2021. She is known to be a voice for equality and drives systemic change that puts people first. She entered public service so she could advocate for working people and to support the needs of the most vulnerable in the community. She championed buy-local as a tool for small businesses to thrive and to enable them to hire locally, challenged pipeline corporations to pay their fair share, and completed a successful housing affordability strategy that generated the most rental housing starts in her region.

On Coquitlam Council, Bonita served on the following: Fraser Health Municipal Government Advisory Council, Multiculturism Advisory Committee, Metro Vancouver Indigenous Relations Committee, Universal Access Ability Advisory Committee, and past Board Member for the Federation of Canadian Municipalities. She sat on the board of two local Not-For-Profits that advocate for gender equality and speaks regularly at The Commission on the Status of Women at the United Nations.

Before being elected to municipal government, Bonita worked in consumer products as a Business Analyst for companies across North America and Europe. She has a B.A. in Sociology from the University of Manitoba, a Human Resource Management Certificate from the University of Calgary and has a Computer Science Degree from CDI Montreal.

Of note:

• Critic – Disability Inclusion
• pledged to help Canadians through collaborative committee work
• key issues of interest:
  • mental health and suicide prevention
  • women’s issues and gender equality
  • workers’ conditions
  • care economy

Louise Chabot Bloc Québecois Employment, Workforce Development and Labour Critic Thérèse-De Blainville – Quebec

Brief biography

Louise Chabot was first elected as Member of Parliament in 2019 and was re-elected in 2021. She was born in 1955 in Saint-Charles-de-Bellechasse, Quebec, is a Quebec trade unionist and politician. She was president of the Centrale des Syndicates du Québec (CSQ) from 2012 to 2018. The organization initially represented nearly 200,000 members, including 130,000 in the education and early childhood sector. She coordinated a major unionization project that resulted in the consolidation of more than 15,000 family day care managers, a first in the union world in Canada.

Of note:

• Critic – Employment, Workforce Development and Labour Critic
• sponsored the Committee’s study on the Review of the EI Program in 2021; critical of the EI program in general and very outspoken about seasonal workers’ trou noir and inadequate sickness benefits
• interested in seniors’ financial security and their purchasing power
• seek to enact federal anti-scab legislation
• supporter of labour unions – Former president of Centrale des syndicats du Québec (CSQ)
• member of the consultative committee for Quebec’s Pay Equity Commission
• advocate for increase in health transfers
• respect for provincial jurisdictions
• labour shortages
• nurse by profession