HUMA Committee briefing binder: Appearance by the Minister Labour and Seniors - April 29, 2024

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 (C), 2023 to 2024 and Main Estimates 2024 to 2025.

Committee Proceedings

Your appearance is scheduled to take place on April 29, 2024, from 4:30 p.m. until 5:30 p.m. Minister Khera will be on the panel preceding yours. Other ESDC Ministers will appear at later dates.

You will be accompanied by:

• Sandra Hassan, Deputy Minister of Labour and Seniors and Associate Deputy Minister of Employment and Social Development
• Brian Leonard, Deputy Chief Financial Officer, ESDC

You have no outstanding follow up written responses due to the Committee.

HUMA has agreed that questioning of witnesses would be allocated as follows:

In round one, there are six minutes for each party in the following order:

• Conservative Party
• Liberal Party
• Bloc Québécois
• 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
• Liberal Party, 5 minutes

Parliamentary Environment

Given the scope of the appearance, you can expect to receive questions on very broad range of issues, which include:

• Bill C-58: some members may seek to further question you of cross-examine you now that they have heard from multiple witnesses on the bill. Notably:
  • Shorter CIF timelines
  • Shorter CIRB decision timeline
  • The use of existing sub-contractors during labour disputes
  • Use of military personal by DND as replacement workers during Non-Public Funds Agency strike
  • We expect there to also be attempts to link the use of foreign workers at EV plants as being akin to replacement workers. See Annex 2 in this note for facts regarding why they are needed and what the contracts are for.
• Forced Labour
  • When legislation will be introduced
  • What is currently being done in the interim/post S-211
• Given some of the questions at your previous appearance on March 21^st, the use of contractors and consultants by the federal government writ large and ESDC/Labour specifically.
  • There was one follow-up from your appearance on March 21 on C-58 from MP Gray regarding the amount spent by Labour/Seniors on outside contractors and consultants from an amount she said she had sourced from 2022 to 2023 Public Accounts. We expect similar questioning during your appearance and have included additional context on amounts found on Public Accounts (Professional services) and how the various amounts are distributed for contractors and consultants to prepare you to explain how and why these funds are allotted. See Annex 1 in this note.
• Supports for seniors
  • Increase to OAS and GIS to reflect high cost of living
  • Processing times for payments
  • Affordability
  • If in support of a royal recommendation for PMB C-319, An Act to amend the Old Age Security Act (amount of full pension)
• Safe Long-Term Care
  • Timelines for introduction of legislation

Annex 1: Public Accounts Data - Professional and Special Services for ESDC

Employment and Social Development Canada (ESDC) has validated information available in the Fiscal year 2022 to 2023 public accounts without being able to reconcile the $601,511,775 being referred in the question for external consultants or contractual expenses. As per Volume III, Section 3 of ESDC Public Accounts, Professional and Special Services amounts to $963,190,633.11 for Fiscal year 2022 to 2023. Public accounts are reported based on the Government of Canada coding structure. As such, the Professional and Special services under ESDC portfolio encompasses several categories of expenses that are not limited to consultants or contractual expenses. It includes spending for services rendered by Other Government Departments, other level of government as well as a variety of services provided by external vendors.

As provided in the Volume III, Section 3 of the Public Accounts, the main sub-categories of spending for ESDC under the Professional and Special Services category are as follows:

• Business Services
• Health and Welfare Services
• Information Technology Services
• Interpretation and Translation Services
• Legal Services; Management Services
• Protection Services
• Scientific and Research Services
• Special Fees
• Temporary Help Services
• Training and Education Services
• Other Services

Leveraging our internal reporting structure, we were able to provide a different detailed overview of the main spending categories and types of service paid for by the department for 2022 to 2023 for this category of spending. Those services could have been paid to other level of government, other federal government departments as well as external vendors for the sub-categories identified above. The following tables present the details and relative importance of each expenditure type. Please note that these amounts are approximates.

Finally, as requested, please find below the total expenditure for Professional and Special Services reported in the Public Accounts since 2012.

We hope that this data extracted from the information available in our financial system can help you better understand the nature of the activities related to the expenditures disclosed at the level of the public accounts.

Annex 2: Facts on Battery Plants

Why the plants are needed and investment facts:

• Canada aims to become a global leader in the development of an end-to-end battery ecosystem.
• By supporting domestic battery development capacity, the Government of Canada is pleased to attract further investments throughout the electric vehicle (EV) and battery supply chain, and securing future EV assembly mandates.
• To date, the government's efforts have attracted projects worth nearly $25 billion in private investment, including most recently Honda. These projects will generate significant benefits by supporting tens of thousands of jobs and contributing to GDP growth.
• Since March 2023, Canada has announced three EV battery manufacturing plants:
  • Volkswagen's EV battery subsidiary, PowerCo., in St. Thomas, Ontario;
  • Stellantis-LG Energy Solution joint venture, NextStar, in Windsor, Ontario;
  • Northvolt in Saint-Basile-le-Grand and McMasterville, Quebec.
• On April 25, 2024, Honda also announced that it will be investing $15 billion to create a comprehensive electric vehicle supply chain, located in Alliston, Ontario. These private investments will total nearly C$25 billion in the Canadian economy only for the building of the facilities.
• NextStar has committed to creating 2,500 jobs, which NextStar has confirmed will be filled by Canadians. Beyond this, NextStar has indicated that an additional 2,300 Canadians will be employed during the construction and equipment installation phase of the project.
• Separate from these jobs created for Canadians, NextStar has indicated that up to 900 jobs during the installation phase will be filled by foreign workers with technical skills from outside of Canada. These foreign workers will be needed for short, temporary assignments, ranging from 3 to 18 months, and will consist of highly specialized technicians with detailed knowledge of the machinery and equipment to be used in the plant.

Why foreign workers are necessary

• The battery plants that have been announced over the last year will take Canadian manufacturing to a new level. The technology going into these plants is something that Canada has not seen before.
• Part of the role of the foreign workers is to bring their expertise, validate the equipment, and to train the Canadian workers who will be operating the equipment once the plant is in production. This ensures that the plant be operational on time and operated by Canadian workers who have the specialized training.

Temporary work entry programs

• The International Mobility Program (IMP) at Immigration, Refugees and Citizenship Canada (IRCC) and the Temporary Foreign Worker Program are Canada's two temporary work entry programs.
• Under the IMP, business visitors can enter Canada and work without a work permit if conducting international business activities and are not entering the Canadian labour market. This can include activities associated with servicing related to a sales or warranty obligation, as well as to train and provide their knowledge and expertise to the Canadian workforce.
• ESDC/Service Canada's information about the number workers hired through the Program is strictly limited to LMIA applications received directly from employers. It is possible that some workers are hired under avenues that are work permit and LMIA exempt, such as intra-company transferees who could be eligible to travel to Canada through the Canada-Korea Free Trade Agreement.
• The Global Talent Stream (GTS) within the Temporary Foreign Worker (TFW) Program aims to provide timely access to skilled global talent for Canadian employers across multiple sectors by expediting TFW Program processes (e.g., shorten processing times related to Labour Market Impact Assessments [LMIA] and work permits) in exchange for a commitment to support the Canadian labour market through a Labour Market Benefit Plans (LMBP).
• The GTS provides a client-focused service to assist with the application process and expedited processing for two categories of Canadian employers who are committed to carrying out activities that benefit the Canadian labour market:
  • Category A: Canadian companies recommended by a Designated Referral Partner, and seeking to fill a position(s) which requires unique and specialized talent (e.g., C-suite executives); and,
  • Category B: Companies seeking to hire highly-skilled foreign workers for occupations found on the GTS Occupations List. The Program aims to update the list annually and relies on departmental labour market experts, as well as engagement with federal partners (e.g., Innovation, Science and Economic Development Canada) and stream stakeholders, to do so. While occupations have been added and removed from the list over the years, the list has grown from 11 occupations in 2017 to 22 occupations today.

Mandate Letter Commitment: Continue to work with federally regulated workplaces to ensure that COVID-19 vaccination is enforced

Mandate Letter Commitment: Amend the Canada Labour Code to provide 10 paid days of sick leave for all federally regulated workers

Mandate Letter Commitment: Convene provinces and territories to develop a national action plan to legislate sick leave across the country while respecting provincial-territorial jurisdiction and the unique needs of small business owners

Mandate Letter Commitment: Develop a right-to-disconnect policy

Mandate Letter Commitment: Amend the Canada Labour Code to include mental health as a specific element of occupational health and safety and require federally regulated employers to address workplace stress and injury

Mandate Letter Commitment: Amend the Canada Labour Code to provide up to 5 new paid leave days for federally regulated employees who experience a miscarriage or stillbirth

Mandate Letter Commitment: Amend the Canada Labour Code to strengthen provisions to better support working women who need to be re-assigned during pregnancy and while breast-feeding

Mandate Letter Commitment: Continue working with the provinces and territories to fully implement the International Labour Organization (ILO) Violence and Harassment Convention

Mandate Letter Commitment: Lead the efforts to require federally regulated employers to provide menstrual products in the workplace to help ensure menstruating employees' participation in work

Mandate Letter Commitment: Accelerate the review of the Employment Equity Act and ensure timely implementation of improvements

Mandate Letter Commitment: Modernize the Federal Contractors Program to ensure federal contractors are paying their employees the federal minimum wage

Mandate Letter Commitment: Advance the implementation of the Pay Equity Act across federally regulated workplaces

Mandate Letter Commitment: Advance legislation to prohibit the use of replacement workers in federally regulated workplaces when a unionized employer has locked out its employees

Mandate Letter Commitment: Work to advance amendments that entitle workers employed by digital platforms to job protections under the Canada Labour Code. (Improve labour protections for gig workers)

Progress as Minister Speaking Points

• In Budget 2024, we are proposing to amend the Canada Labour Code to improve job protections for federally regulated gig workers by strengthening prohibitions against employee misclassification.
• Because they have been historically treated as independent contractors, gig workers do not have access to the rights and protections for employees under the Code. Wrongfully treating an employee as an independent contractor is known as misclassification.

Mandate Letter Commitment: Introduce legislation to eradicate forced labour from supply chains and ensure that Canadian businesses operating abroad do not contribute to human rights abuses (shared commitment with ministers responsible for public safety, federal procurement and international trade)

Mandate Letter Commitment: Strengthen harassment and violence prevention measures in federally regulated workplaces

Mandate Letter Commitment: Work with the Minister of Natural Resources in moving forward with legislation and comprehensive action to achieve a Sustainable Jobs Transition

Increase the Guaranteed Income Supplement by $500 for single seniors and $750 for couples starting at age 65

Supported by the Minister of Health, Deputy Prime Minister and Minister of Finance, establish an expert panel to provide recommendations for establishing an Aging at Home Benefit

Assist organizations to provide practical supports to help seniors age in place

Supporting the Minister of Justice and Attorney General of Canada, strengthen Canada's approach to elder abuse by finalizing the national definition of elder abuse, investing in better data collection and establishing new offences and penalties in the Criminal Code related to elder abuse

Supporting the Minister of Health, negotiate agreements with provinces and territories to support efforts to improve the quality and availability of long-term care homes and beds

Met Commitments

Issue

On November 9, 2023, Bill C-58, An Act to amend the Canada Labour Code and the Canada Industrial Relations Board Regulations, 2012, was introduced to amend the Canada Labour Code to prohibit the use of replacement workers and improve the maintenance of activities process.

Background

• The Minister of Labour's 2021 mandate letter includes a commitment to prohibit the use of replacement workers when a unionized employer has locked out its employees. As part of the Supply and Confidence Agreement with the New Democratic Party (NDP), this commitment was updated to "introduce legislation by the end of 2023 to prohibit the use of replacement workers, ‘scabs', when a union[ized] employer in a federally regulated industry has locked out employees or is in a strike."
• Budget 2023, tabled on March 28, 2023, noted that "the ability to form a union, bargain collectively, and strike is essential to a healthy democracy. These important rights can be undermined when an employer brings in replacement workers to temporarily do the work of unionized workers during a strike or lockout." Acknowledging this, Budget 2023 commits to amend the Canada Labour Code (Code) to prohibit the use of replacement workers in federally regulated sectors and to improve the process to identify activities that must be maintained to ensure the health and safety of the public during a work stoppage.
• From October 19, 2022, to January 31, 2023, the Minister of Labour and Seniors held consultations on prohibiting the use of replacement workers in federally regulated workplaces and the maintenance of activities process under Part I of the Code.
• A total of 55 stakeholder organizations participated in 5 roundtables that were held during the consultation period. Major unions and labour groups participated. There was also significant sectoral representation, with major employers from key sectors, such as telecommunications, air, marine and rail transportation, and courier and postal services participating in the roundtables. In addition to the roundtables, 71 written submissions as well as 45 personal stories and individual comments were shared.
• On September 19, 2023, the Minister of Labour and Seniors released the "What We Heard Report" on prohibiting replacement workers and improving the maintenance of activities process, which summarizes feedback from consultations with employers, labour organizations and Indigenous partners. Employers and unions disagreed strongly on the topic of replacement workers and whether they should be prohibited. Union stakeholders all supported a ban on replacement workers. Many of them urged the Government to introduce legislation as soon as possible. On the other hand, employer stakeholders opposed the idea and argued the Government should not proceed.
• Bill C-58 would amend Part I of the Code and the Canada Industrial Relations Board Regulations, 2012 to prohibit the use of replacement workers and improve the process for protecting against immediate and serious danger to public health and safety during a legal strike or lockout (also called the "maintenance of activities process"). The amendments would come into force 18 months after the bill receives Royal Assent.
• On February 27, 2024, Bill C-58 was adopted unanimously at second reading and referred to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.

Key facts

• The Code does not currently prohibit employers from using replacement workers in the event of a work stoppage to continue operations. However, since 1999, it prohibits employers from hiring replacement workers to undermine union representation.
• From January 2012 to June 2023, the Labour Program estimates that federally regulated employers used replacement workers to do the work of striking or locked out employees in approximately 42% of work stoppages.
• British Columbia and Quebec currently prohibit employers from using replacement workers during a strike or lockout. Ontario enacted legislation in 1993 but it was repealed in 1995. The Government of Manitoba intends to introduce a bill to prohibit replacement workers, which has been on the order paper of the Legislative Assembly of Manitoba since March 18, 2024, but has not yet been introduced and undergone First Reading.
• Numerous Private Members' Bills (PMBs) have been proposed to strengthen the prohibition against using replacement workers in the Code since 1999. The most recent PMBs were introduced in 2022. However, all previous PMBs were defeated or "died on the order paper" in the House of Commons, except the most recent Bill C-302.
• Bill C-302, An Act to amend the Canada Labour Code (replacement workers), was introduced by the NDP on October 27, 2022. The NDP has advised that Bill C-302 "should be the guide the government uses to implement anti-scab legislation."

Key messages

• The Government of Canada believes in free and fair collective bargaining because the best agreements are reached through good faith negotiations at the bargaining table.
• The use of replacement workers can distract from the bargaining table, prolong disputes, and jeopardize labour relations. As well, the current maintenance of activities process can be lengthy, further prolonging disputes.
• The Government introduced Bill C-58 to prohibit the use of replacement workers in federally regulated workplaces during a strike or lockout, and to improve the current maintenance of activities process.
• Together, these changes aim to promote collaborative labour relations, protect a meaningful right to strike, limit interruptions to collective bargaining and continue to protect Canadians during work stoppages in federally regulated industries.

If pressed on why the coming into force is 18 months after Royal Assent

• Bill C-58 represents one of the most significant changes to federal collective bargaining rules since the 1990s.
• These changes would impose significant new responsibilities on the Canada Industrial Relations Board. There will be more issues for the Board and less time to resolve them.
• As Minister of Labour, I need to make sure the Board has the resources it needs to prepare itself in dealing effectively with all these new demands and expectations and deliver timely results for Canadian workers.
• We need to identify and appoint the right people to the Board who understand the industries, the unions, and the issues. It takes time to identify the right people with the right skills and experience. You can't rush this.
• Accessing the funds to support staffing and other preparations also takes time. People generally don't like to talk about administrative issues; but they are part of the process, and they matter.
• We need Parliament to approve the new funding going to the Board and the team supporting the Board.
• Ensuring we are doing this right is important. It means workers, unions and employers will get decisions on time. It means they can focus on the negotiating table.
• That's what every part of this bill is focused on: getting deals at the table.

If pressed on why the ban wouldn't apply to the public service

• My mandate letter and the Supply and Confidence Agreement are clear. The commitments refer to banning replacement workers in the sectors that are covered by Part I of the Canada Labour Code - and Bill C-58 fulfills that promise.
• This bill is not about the federal public service as it is not covered by Part I of the Code.

If pressed on economic impacts of the changes

• Bill C-58 would make major changes to the collective bargaining process in federally regulated industries.
• Requiring maintenance of activities agreements and banning the use of replacement workers would change how employers and unions negotiate at the bargaining table.
• If the bill becomes law, there will be growing pains as both employers and unions adapt, but we ultimately believe that protecting a meaningful right to strike will lead to more balanced collective bargaining.

If pressed on the potential for more frequent strikes

• The proposed changes aim to promote collaborative labour relations, keep parties focused on the table and limit interruptions to collective bargaining.
• We're also very fortunate to have top quality mediators at our disposal. The Federal Mediation and Conciliation Service has resolved 96% of labour disputes in 2022 to 2023 without a work stoppage. They have navigated tough negotiations before, and they'll keep doing it.
• The ban on the use of replacement workers would set the table for free and fair collective bargaining to get fair deals at the table. It's the right thing to do.

If pressed on employer concerns/studies that suggest strikes are more frequent and last longer in British Columbia and Quebec, where replacement workers are banned

• There are important caveats with these studies.
• First, there are clear cases that demonstrate what we already know: that using replacement workers distracts from the bargaining table and prolongs disputes. On January 26, 2024, the Canadian Centre for Policy Alternatives released a report on strikes in Manitoba. It found that from 2016 to 2023, strikes with replacement workers lasted on average twice as long (45 days) as strikes without them (23.2 days).
• The second important point is that the Canada Labour Code applies to different industries than provincial labour laws do. There's no guarantee that prohibiting the use of replacement workers in the federal jurisdiction will have the same effects as it has had in British Columbia and Quebec.

If pressed on the use of contractors

• The Bill provides that no contractor would be able to do union work that is normally done by an employee that is on strike or locked out. It is crystal clear on that.
• But there are times when an employer may have contractors that do the same or very similar work that unionized employees do. The bill is also clear on what happens here.
• Those contractors would be able to continue to do the work they were doing before the notice to bargain was given, as long as they do it in the same manner, to the same extent and in the same circumstances as they did before the notice was given. But to be clear, they can't do the work of employees in the bargaining unit.
• We think this hits the right balance between protecting unionized workers' work during a strike or lockout, while also allowing the employer to continue to operate legally.

Issue

Budget 2023 announced the federal Government's intention to introduce legislation in 2024 to help eradicate forced labour from Canadian supply chains. This commitment was repeated in Budget 2024. This reinforces the Minister of Labour's mandate commitment, alongside other named ministers, to eradicate forced labour in Canadian supply chains and ensure that Canadian businesses operating abroad do not contribute to human rights abuses. The federal budget also indicated that the Government would strengthen the import prohibition on goods produced using forced labour.

Background

• Several jurisdictions have introduced or announced planned measures to address labour exploitation and human rights abuses and violations in supply chains.
• Jurisdictions have adopted or are developing supply chain legislation to address forced labour and other human rights issues (for example, Australia, France, Germany, the Netherlands, Norway, the United Kingdom and the European Union).
• The US, Mexico and Canada have a prohibition on the importation of goods produced by forced labour as part of the Canada, United States and Mexico Agreement (CUSMA) obligations, and the European Union is developing a regulatory proposal for a similar prohibition.
• In Canada, parliamentarians are seized with the issue, with the tabling of several Private Member's and Senate Public Bills since November 2021.^{Footnote 1} This includes former Senate Public Bill S-211, An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act, and to amend the Customs Tariff, which received Royal Assent on May 1, 2023, and came into force on January 1, 2024. Public Safety Canada is responsible for implementing the Act. The Government recognizes that while the Act serves as an important first step, more is needed.
• Supply chain legislation is just 1 tool, among many, needed to address forced labour and other forms of exploitation in global supply chains. There are a number of complementary initiatives across the federal government aimed at tackling the issue of labour exploitation. These include, for example:
  • The inclusion of comprehensive and enforceable labour provisions in Canada's free trade agreements.
  • The delivery of technical assistance to developing trade partner countries to promote compliance with internationally recognized labour standards, including forced labour.
    • For example, the Indo-Pacific Strategy includes $25 million over 5 years, starting in fiscal year 2023 to 2024 to support the enforcement of labour provisions in current and future free trade agreements by Canada's partners in the region.
  • The 2022 launch of a new Responsible Business Conduct Strategy.
  • The National Strategy to Combat Human Trafficking (2019 to 2024) led by Public Safety
  • A strengthened federal procurement contracting regime that includes expectations for suppliers and subcontractors on upholding human rights; and,
  • A prohibition on the importation of goods produced in whole or in part by forced labour, which the government has committed to strengthen.
• The Canada Border Services Agency (CBSA) is responsible for the administration and enforcement of the prohibition of goods made using forced labour. ESDC's Labour Program provides support to CBSA by conducting research and analysis on the risk of forced labour in other countries, including analysis of specific complaints or allegations received by CBSA. CBSA may use information from the Labour Program as well as other sources of information to inform potential enforcement considerations.
• In October 2023, the Labour Program and CBSA, together with several other departments, hosted a technical stakeholder engagement session to inform the development of government-led due diligence supply chain legislation and means of strengthening the import prohibition on goods produced with forced labour. This session built upon previous consultations, including the 2019 roundtables on possible measures to address labour exploitation in supply chains as well as the feedback received following the release of the subsequent "What we Heard Report" in 2022.
• Overall, stakeholders indicated their support for the introduction of due diligence supply chain legislation. However, they emphasized the need to balance clarity of due diligence obligations with flexibility to implement in a manner appropriate to the level of risk and role of various entities, as well as the importance of harmonizing requirements with those of other jurisdictions where possible or appropriate. Many participants also recommended that the government proceed cautiously in developing new elements to strengthen the import prohibition in order to mitigate against unintended harms (for workers in developing countries, industry, et cetera) and ensure complementarity with other mechanisms (notably supply chain legislation) and other jurisdictions.

Key facts

• According to the International Labour Organization's 2021 Global Estimates of Modern Slavery, there are:
  • 27.6 million people in situations of forced labour on any given day.
  • Women and girls make up 11.8 million of this total.
  • More than 3.3 million of all those in forced labour are children.
  • Most forced labour occurs in the private economy. 86% of forced labour cases are imposed by private actors, 63% in the private economy in sectors other than commercial sexual exploitation and 23% in forced commercial sexual exploitation. State-imposed forced labour accounts for the remaining 14% of people in forced labour.
• Forced labour has grown in recent years. There was a 2.7 million increase in the number of people in forced labour between 2016 and 2021.
• In addition, the latest International Labour Organization (ILO) and UNICEF global estimates indicate that approximately 160 million children were in child labour at the beginning of 2020. Almost half of those in child labour (over 79 million children) work in hazardous work that directly endangers their health, safety and moral development.
• On January 24, 2023, World Vision released its report, Supply Chain Risk Report 2023: Canada's Growing Child & Forced Labour Problem. The report indicates that there were nearly $48 billion in goods imported into Canada in 2021 that were at risk of being made with forced labour and/or child labour. Some of the goods at risk include electronics, garments and textiles, footwear, coffee, and fish, among others.

Key messages

• The 2023 federal budget announced the Government's intention to introduce legislation in 2024 to help eradicate forced labour from Canadian supply chains. This commitment was reinforced in Budget 2024. The legislation will be strong, effective, and enforceable.
• Supply chain legislation is just 1 tool, among many, needed to address forced labour and other forms of exploitation.
• The Government will also strengthen the import prohibition on goods produced using forced labour.
• There is no jurisdiction that currently has both supply chain legislation and an import prohibition on goods produced with forced labour in place.
• These measures need to be designed and implemented carefully to be effective in addressing exploitation in supply chains and avoiding unintended harms.
• Forced labour is a complex problem that requires considerable work and collaboration between departments, governments, industry and civil society.
• We will continue to work closely with stakeholders and international partners to improve the overall approach to tackling forced and child labour.

If pressed on the Fighting Against Forced Labour and Child Labour in Supply Chains Act (formerly Bill S-211)

• An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff, received Royal Assent on May 11, 2023, and came into force on January 1, 2024. Public Safety Canada is responsible for implementing the Act.
• The Government recognizes that the Act serves as an important first step, however, more is needed.
• The Government remains committed to introducing supply chain legislation that is strong, effective, and enforceable.

If pressed on the import prohibition

• CBSA is responsible for the enforcement of the import prohibition.
• Federal departments are working together to consider means of strengthening the import prohibition, as was committed to in Budget 2023 and Budget 2024.

Issue

Entitling digital platform workers to job protections under the Canada Labour Code (Code).

Background

• The Minister of Labour and Seniors has a 2021 mandate letter commitment to "advance amendments that entitle workers employed by digital platforms to job protections under the Canada Labour Code. This work will also include collaborating with the Minister of Employment, Workforce Development and Disability Inclusion to ensure better benefits and supports for these workers."
• On January 1, 2021, amendments to the Code related to misclassification came into force. These changes created a clear prohibition against the intentional misclassification of employees, and placed the burden on employers to prove that a worker is not their employee when a complaint is made to the Labour Program.
• In March 2021, the Labour Program launched a pilot project in the Ontario Region to support enforcement and awareness of the new misclassification measures. The pilot project revealed widespread misclassification in the road transportation industry.
• In Budget 2024, the government proposed to amend the Canada Labour Code to improve job protections for federally regulated gig workers by strengthening prohibitions against employee misclassification.
• Further, on the topic of worker misclassification, Employment and Social Development Canada and the Canada Revenue Agency will enter into necessary data-sharing agreements to facilitate inspections and enforcement.
• Labour Program officials held two phases of public and stakeholder consultations from February 2021 to July 2021 to discuss issues in the gig economy and potential policy responses. In December 2022, officials carried out additional targeted consultations focused on legislative amendments aimed at addressing the issue of misclassification.
• Taking into account input from three phases of consultations, the Government is developing policy options to improve job protections for workers in the gig economy.

Key facts

• The share of Canadian workers who engage in gig work at some point during a given year increased from 5.5% to 8.2% between 2005 and 2016, with this share expected to have risen to about 10% over the last few years.
• About 250,000 Canadians provided ride or delivery services through digital platforms in 2022. Many other services were offered by Canadians through platforms, such as videos, blogs, or podcasts (58,000 workers), programming, coding, web or graphic design (42,000 workers) and teaching or tutoring (41,000 workers).^{Footnote 2}
• Gig work and platform work generally falls under provincial and territorial labour jurisdiction. This includes the most well-known forms of gig work, such as driving for Uber and Lyft, or delivering food for SkipTheDishes.
• Statistics Canada estimates that there may be up to 41,000 gig workers in the federal private sector.
• Roughly 63% of these workers operate in the interprovincial road transportation sector, 15% are in the courier and postal services sector, and 10% are in the telecommunication and broadcasting sector.^{Footnote 3} The remaining 12% are distributed across other federally regulated sectors such as air, rail and maritime transportation, and banking.
• Examples of federally regulated gig workers include some interprovincial transport truck drivers, some parcel-delivery persons, and television and radio broadcasting artists and freelancers hired as independent contractors, but who often do not have all the characteristics of a true entrepreneur.
• Federally regulated gig workers earned an average annual income of $20,300 in 2016 from gig work, and some earning as low as $11,500 annually in the telecommunications and broadcasting sector.
• Because they have been historically treated as independent contractors, gig workers do not have access to the rights and protections for employees under the Code. Wrongfully treating an employee as an independent contractor is known as misclassification.
• Misclassification can allow employers to avoid the costs of having to bargain with unionized workers, providing full occupational health and safety protections, and complying with labour standards such as minimum wage, overtime pay, paid sick leave and rights on termination of employment. Employers may also do so because it allows them to avoid payroll taxes such as contributions to EI, CPP/QPP, and workers' compensation.
• As a result of misclassification, some gig workers experience precarious working conditions and economic vulnerability, including low and unpredictable earnings, unpredictable schedules, and unpaid work time. Amendments would ensure gig workers can better access their labour rights.
• The challenge of misclassification is shared by another group of federally regulated workers: truck drivers misclassified through the incorporated business model. While they do not fall under the definition of gig worker, transport truck drivers hired through the incorporated business model also face the misclassification problem. There has been a growing trend amongst employers in the road transportation industry to have their employees self-incorporate. The self-incorporated driver model can be a legitimate business model when used appropriately, but unfortunately, some carriers have abused this model, treating drivers as independent contractors when they should be treated as employees.

Key messages

• We have seen gig and digital platform work rapidly expand to cover more segments of the economy, and this is changing the way we work.
• Our Government is committed to ensuring that workers in the gig economy are treated fairly and have access to greater labour protections.
• To make sure that we get things right, 3 phases of consultations with stakeholders and the public were conducted between 2021 and 2022 to better understand how current federal labour protections could be updated to better protect gig and digital platform workers.
• The results of these consultations are being taken into account as the Government develops ways to improve job protections for workers in the gig economy.
• In Budget 2024, the government proposes to amend the Canada Labour Code to improve job protections for federally regulated gig workers by strengthening prohibitions against employee misclassification.

If asked what is being done to address the misclassification in the road transportation sector:

• As misclassification has become a common practice in the federally regulated road transportation industry, the Government of Canada announced $26.3 million in new funding over 5 years through the 2022 Fall Economic Statement.
• Additionally, in Budget 2024, the government directed Employment and Social Development Canada and the Canada Revenue Agency to enter into necessary data-sharing agreements to facilitate inspections and enforcement.
• In the road transportation sector, our teams are working to ensure the funding is put to its most efficient and optimal use to take stronger action against the misclassification of workers.
• The initiative is allowing the Labour Program to establish a dedicated team to focus on misclassification in the road transportation sector nationally for at least the next 4 years. While we are building the team to full capacity, many (over 1500) education sessions and inspections have already taken place with federally regulated employers in the trucking industry.
• With this funding, the Government is enforcing the Canada Labour Code so that thousands of workers receive the rights and protections they are entitled to under the Code.
• These efforts are expected to create workplaces in the road transportation industry that are fairer, safe, respectful, and inclusive for all.

Issue

Starting in fiscal year 2023 to 2024, Canada's Indo-Pacific Strategy includes $25M over 5 years to help developing trading partners in the region to improve their compliance with labour provisions of current and future free trade agreements.

Background

• Canada's approach to trade and labour is to include comprehensive and enforceable labour provisions in free trade agreements (FTAs).
• Typically, these provisions commit Canada and its trading partners to implement their respective labour laws that should provide protection for internationally recognized labour rights and principles (that is, freedom of association and collective bargaining, non-discrimination in employment and occupation, the elimination of child and forced labour, and a safe and healthy work environment).
• Canada also provides as much capacity building as possible so that developing partner countries can fulfill their trade and labour commitments. The additional funding provided through the Indo-Pacific Strategy will allow Canada to provide more technical assistance and further promote compliance with international labour rights.
• Robust labour provisions and technical assistance to developing partners reinforce the international rules-based trading system and help to prevent labour violations in global supply chains.
• With respect to Bangladesh, a large garment exporter located in the Indo-Pacific, Canada continues to coordinate with like-minded partners and multilaterally to speed up the pace of legislative labour reforms and press the Bangladeshi government to address recent reports of violence, harassment, and anti-union discrimination.

Key facts

• In November 2022, $25M over 5 years was announced for "Labour Program Technical Assistance to the Indo-Pacific for Trade and Labour Compliance."
• The funding will be used to provide additional technical assistance to Indo-Pacific trading partners to improve the enforcement of labour provisions in current and future free trade agreements with Canada.
• The first 2 projects, 1 regional (that is, Southeast Asia) project and 1 project in the Philippines, have been approved and have begun the implementation phase. These projects focus on promoting compliance with fundamental principles and rights at work in trade-related sectors, notably by building societal and intersectional understandings of international labour standards and improving national governments' enforcement of labour laws.
• Additional projects in the Indo-Pacific region are expected to begin in fiscal year 2024 to 2025.
• In September 2023, Labour Program officials undertook a technical mission to re‑engage on improving labour conditions in Bangladesh. This mission confirmed the egregious labour rights violations that continue to take place in Bangladesh, despite the progress achieved in the area of occupational safety since the 2013 Rana Plaza tragedy.

Key messages

• The Government has announced $5M annually for 5 years for technical assistance to support trade and labour compliance as part of Canada's Indo-Pacific Strategy.
• With this funding, Canada will provide greater technical assistance and capacity building to Indo-Pacific trading partners to improve the enforcement of labour provisions, including on forced labour, in current and future free trade agreements with Canada.
• 2 projects (1 regional and 1 in the Philippines) have been approved and have begun implementation. Additional projects are expected to start in 2024 to 2025.
• This will help protect workers' rights, promote respect for human rights in supply chains, and contribute to levelling the playing field for Canadian workers and employers.
• Canada recognizes that trade and labour are mutually supportive and that labour provisions in free trade agreements promote a rules-based international system.

Issue

The Government of Canada committed to amending the Canada Labour Code (Code) to provide paid leave for federally regulated employees who experience a pregnancy loss.

Background

Key facts

• According to the Public Health Agency of Canada, between 15% to 25% of pregnancies end in miscarriage. Statistics Canada reports that about 3,000 stillbirths occur each year.
• The Canadian Institute for Health Information reported over 87,500 induced abortions in 2021. This figure doesn't capture all abortions performed in non-hospital settings (for example, nurse practitioner and physician offices, community and public health clinics) or at home through medication.
• These experiences are prevalent, and the emotional or physical impact they have varies from person to person. Depending on the circumstances of the event, some people may experience profound feelings of grief while others may feel mixed emotions (for example, guilt, anger, anxiety).
• Without proper rest and recovery, some individuals could be at risk of developing prolonged mental health problems, such as clinical depression, anxiety disorders, and post-traumatic stress disorder.

Key messages

• Dealing with a pregnancy loss can be extremely challenging, and individuals who experience it may need time away from work to support their recovery. Without it, they are more at risk of developing prolonged mental health problems, such as clinical depression, anxiety disorders, and post-traumatic stress disorder.
• To better support federally regulated private sector employees during this difficult time, the Government is proposing changes to the Canada Labour Code to provide 3 days of leave following a pregnancy loss, and 8 weeks in the event of a stillbirth. Three days of leave would be paid for employees who have completed three consecutive months of continuous employment with their employer.
• The new leave will provide workers with greater job and income security while they recover. It will be available to the individual who was pregnant, their spouse or common-law partner, and any person who intended to be the legal parent of the child, including the biological parent and parents who were planning to have a child through adoption or surrogacy. The leave will be available to individuals who are employed in a federally regulated private sector workplace.

Issue

Accelerate the review of the Employment Equity Act and ensure timely implementation of improvements.

Background

• The Minister of Labour has a 2021 mandate letter commitment to accelerate the review of the Employment Equity Act and ensure timely implementation of improvements, with the support of the President of the Treasury Board, the Minister of Housing and Diversity and Inclusion, and the Minister for Women and Gender Equality and Youth.
• Since the Act was introduced in 1986, progress has been made to correct conditions of disadvantage in employment experienced by four designated groups: persons with disabilities, women, Indigenous peoples and members of visible minorities. However, some workers continue to face barriers to equity.
• On July 14, 2021, the Government launched a Task Force, composed of 12 members from various backgrounds and fields of expertise, including the Chairperson, Professor Adelle Blackett, to conduct an independent review and provide recommendations on how to modernize the Employment Equity Act.
• The Task Force heard from hundreds of stakeholder and partner organizations from public, private and non-profit sectors, including employers, unions, professional associations and members of designated groups and other communities, such as women, 2SLGBTQI+ Canadians, Indigenous peoples, Black and racialized Canadians, persons with disabilities and other under-represented groups, including faith-based networks. Overall, the Task Force held over 100 meetings that involved more than 300 participants representing over 175 organizations. The Task Force also received over 400 written submissions covering the full scope of the Employment Equity Act review, and an additional 350 expressions of views shared via electronic correspondence.
• On December 11, 2023, the Minister of Labour and Seniors, accompanied by the former Chairperson of the Task Force, Professor Blackett, released the report of the Task Force, A Transformative Framework to Achieve and Sustain Employment Equity. The report is comprehensive and includes 187 recommendations covering both the human rights principles to guide the proposed changes and specific actions for implementing those changes.
• In response, the Government announced its initial commitments to modernize the Employment Equity Act, including:
  • Creating 2 new designated groups under the Act: Black people and 2SLGBTQI+ people;
  • Replacing the term "Aboriginal Peoples" with "Indigenous Peoples," and updating the definition to include First Nations, Métis and Inuit and to ensure it is consistent with the United Nations Declaration on the Rights of Indigenous Peoples Act;
  • Replacing the term "members of visible minorities" with "racialized people" and updating the corresponding definition; and
  • Aligning the definition of "persons with disabilities" with the Accessible Canada Act to make it more inclusive.
• Budget 2024 confirmed the government's intention to propose legislative amendments to modernize the Act, including by expanding designated equity groups.

Key facts

• According to the 2022 Employment Equity Act Annual Report, in federally regulated private sector employers covered under the Employment Equity Act:
  • Women accounted for 39.1% of the workforce, compared to 48.2% labour market availability;
  • Indigenous peoples accounted for 2.4% of the workforce, compared with 4.0% labour market availability;
  • Persons with disabilities accounted for 4.4% of the workforce, compared with 9.1% labour market availability; and
  • Members of visible minorities accounted for 27.4% of the workforce, compared with 21.3% labour market availability.
• Within the core public administration:
  • Women (56.0%) exceeded the labour market availability (53.3%);
  • Indigenous peoples accounted for 5.2% of the workforce, compared with 3.8% labour market availability;
  • Persons with disabilities accounted for 6.2% of the workforce compared with 9.1% labour market availability; and
  • Members of visible minorities accounted for 20.2% of the workforce, compared to 17.2% labour market availability.

Key messages

• Diversity is Canada's strength, and one of the ways the Government of Canada promotes equality and diversity is through the Employment Equity Act.
• Since its introduction in 1986, progress has been made in removing barriers to employment in federally regulated workplaces for the 4 designated groups under the Act: women, Indigenous peoples, persons with disabilities and members of visible minorities.
• However, many workers still face barriers getting a job and advancing their career. We launched a Task Force to conduct a comprehensive review of the Act and advise on how to modernize the federal employment equity framework.
• The Government welcomes and broadly supports the Task Force's recommendations for transforming Canada's approach to employment equity.
• In response, the Government announced its initial commitments to modernize the Employment Equity Act. These include:
  • Creating 2 new designated groups under the Act: Black people and 2SLGBTQI+ people;
  • Replacing the term "Aboriginal Peoples" with "Indigenous Peoples," and updating the definition to include First Nations, Métis and Inuit and to ensure it is consistent with the United Nations Declaration on the Rights of Indigenous Peoples Act;
  • Replacing the term "members of visible minorities" with "racialized people" and updating the corresponding definition; and
  • Aligning the definition of "persons with disabilities" with the Accessible Canada Act to make it more inclusive.
• Budget 2024 confirmed the government's intention to propose legislative amendments to modernize the Employment Equity Act, including by expanding designated equity groups.
• [If consultations have been launched] To inform these amendments, the Government has launched consultations with affected communities and organizations representing unions and employers.
• [If consultations have not been launched] To inform these amendments, the Government will soon begin consultations with affected communities and organizations representing unions and employers.

Issue

Actions undertaken and planned by the federal Government to support workers in the transition to a net-zero emissions economy through the creation of sustainable jobs.

Background

The Minister of Labour and Seniors has a mandate commitment to work with the Minister of Natural Resources to move forward with legislation and comprehensive action to achieve a transition to a net-zero emissions economy through supporting the creation of sustainable jobs.

The purpose of Bill C-50, the Canadian Sustainable Jobs Act, tabled by the government on June 15, 2023, is to facilitate and promote economic growth, the creation of sustainable jobs and support for workers and communities in the shift to a low-carbon economy. The bill provides a framework to ensure transparency, accountability, engagement, and action by the government.

The legislation is a key component of the Government's interim Sustainable Jobs Plan 2023-2025, signed by the Minister of Labour and Seniors, the Minister of Employment, Workforce Development and Official Language, and the Minister of Natural Resources, and released publicly in February 2023. The Plan outlines ten concrete actions, including the commitment to introduce Sustainable Jobs legislation and establish a Sustainable Jobs Partnership Council.

The Plan also reflects the commitments of the 2022 Fall Economic Statement, which proposed to provide $250 million over five years, starting in 2023-2024, to Employment and Social Development Canada and Natural Resources Canada to help ensure Canadian workers can thrive in a changing global economy. Specific measures include a Sustainable Jobs Training Fund, a new sustainable jobs stream under the Union Training and Innovation Program, and a Sustainable Jobs Secretariat.

The Interim Sustainable Jobs Plan 2023-2025

The Plan precedes and sets an initial frame for the Sustainable Jobs Action Plans that will be released every five years starting in 2025 to guide and organize efforts to support the transition to a low-carbon economy.

The plan has been informed by consultations with provinces and territories, Indigenous peoples, workers and unions, industry, environmental organizations, and Canadians.

Legislation

In 2019, the Government of Canada committed to introduce legislation to support workers and their communities in the transition to a low-carbon economy.

C-50, the Canadian Sustainable Jobs Act, completed third reading in the House of Commons on April 15. The bill was considered by the House Standing Committee on Natural Resources Canada, including the clause by clause and the vote on proposed amendments. The Bill has been referred to the Senate where it will continue to move through the legislative process in 2024.

Key facts

Public consultations to inform the development of sustainable jobs legislation were launched in July 2021 and included 17 roundtable sessions with a range of stakeholders, including workers and labour organizations, industry, academia, non-governmental organizations, youth, and experts in skills and training as well as diversity and inclusion.

Since 2015, the Government of Canada has earmarked $120 billion in investments to help achieve climate and environmental objectives, accelerate economic growth, and support the creation of sustainable jobs.

ESDC has also made significant investments in skills programs to support a net zero economy. These programs aim to develop workers' skills through different strategies such as sectoral solutions, community workforce plans, union training and Indigenous partnerships.

Key messages

The commitment to advancing sustainable jobs is about supporting an economic transformation to net-zero that provides opportunities for workers and communities, and to ensuring that all workers have the foundational and transferable skills they need to adapt in the evolving workforce. This transition should be based on well-paid sustainable jobs that are inclusive and provide decent work.

Collaboration is key to our success. That is why the sustainable jobs legislation was informed by feedback from Canadians and include ongoing mechanisms for engagement. This will ensure Canada's sustainable jobs measures are aligned with the local realities and reflect the needs and experiences of partners and stakeholders, from labour unions, industry, academia and Indigenous organizations, in a meaningful way.

The Government continues to consult with a broad range of stakeholders on sustainable jobs to ensure we get this right for workers as we look to move forward the legislation and comprehensive action.

Issue

The Fall Economic Statement announced on November 21, 2023, the introduction of a new, 15-week shareable benefit in the Employment Insurance (EI) program for parents through adoption or surrogacy, along with corresponding changes to the Canada Labour Code to ensure job-protected leave for employees in the federally regulated private sector. The legislative amendments were introduced in the Fall Economic Statement Implementation Act, 2023, which is undergoing the Parliamentary process.

Background

The new benefit would fulfill the Government of Canada's commitment to "introduce a new 15-week benefit for adoptive parents," as outlined in the 2021 mandate letter to the then Minister of Employment, Workforce Development and Disability Inclusion.

It would apply to the same types of placements for the purposes of adoption already covered by parental benefits, such as those under the adoption law in a province or territory, Indigenous customary adoptions under an applicable Indigenous law in the province or territory in which the person resides, and placements under a foster-to-adoption program.

Parents through adoption or surrogacy would be able to combine the new benefit with parental benefits, which would provide access to the same total number of weeks of EI income support as birth parents, i.e., 15 weeks of maternity or adoption benefits, combined with parental benefits (up to 40 shareable weeks of standard parental benefits at 55% replacement rate or up to 69 shareable weeks under the extended parental option at 33% replacement rate).

A surrogate can receive maternity benefits because they experienced pregnancy or childbirth, but not parental benefits.

Once this benefit is in place, it would also bring EI more in line with benefits offered to parents in Quebec through the Quebec Parental Insurance Plan (QPIP). Parents through birth, adoption or surrogacy would have access to the same number of weeks of benefits available under their regime (EI or QPIP).

The new EI benefit for parents through adoption or surrogacy would focus on the responsibilities carried out by parents related to the placement of a child(ren) for the purpose of adoption or, in situations such as surrogacy, related to the arrival of a new-born child(ren) under their care.

As such, parents could receive the benefit within a period that would begin the earlier of five weeks prior to the week of the expected placement of the child(ren) or arrival of the new-born child(ren), or the week in which the actual placement or arrival occurs. Benefits would be payable up to 17 weeks after the week of the actual placement or arrival. This period would provide flexibility to parents to claim the benefit in a way that best suits their needs.

Associated amendments to the Canada Labour Code would provide employees in the federally regulated private sector with up to 16 weeks of unpaid job-protected leave. The leave duration provides one additional week of job-protected leave to allow EI claimants to serve the one-week waiting period prior to receiving their benefits.

The federally regulated private sector includes about 990,000 employees (or 6% of all Canadian employees) working for 19,150 employers in industries such as banking, telecommunications, broadcasting, and inter-provincial and international transportation (including air, rail, maritime, and trucking), as well as federal Crown corporations. Part III does not apply to the federal public service.

Private Member's Bill C-318, introduced on March 8, 2023, by MP Rosemarie Falk (Battleford-Lloydminster, Conservative Party of Canada), aims to introduce a similar benefit that targets a similar population group with the same benefit length and qualifying criteria as the new benefit. However, the proposed benefit under Bill C-318 differs in policy intent, as it focuses on attachment of the child (similar to the parental benefit) while the government proposal focuses on the responsibilities related to the placement or arrival of the child. It also differs in implementation timelines, as C-318 would be implemented on royal assent which would be challenging while government proposal would be by Order approved by Governor in Council.

Bill C-318 was studied by the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities in January 2024. MP Leah Gazan (Winnipeg Centre, NDP) successfully brought forward amendments to explicitly recognize child placements aligned with Indigenous customs and traditions. The amendments were ruled inadmissible by the Speaker of the House given their financial implications. The bill is expected to die on the order paper due to lack of royal recommendation after its second and final hour of debate at third reading scheduled for May 27, 2024, and not proceed to a vote.

Key facts

The 2023 Fall Economic Statement announced the introduction of a new 15‑week shareable EI adoption benefit, at an estimated cost of $48.1 million over six years and $12.6 million per year ongoing from the EI Operating Account.

This benefit is expected to support approximately 1,700 Canadian families each year, including 2SLGBTQI+ parents, providing additional EI support to those who become parents through adoption and surrogacy and need to step away from work as they finalize the placement of the child(ren).

Providing adoptive parents with more time and flexibility to spend with their child in the critical period surrounding the placement for adoption can lead to more successful family formation, reduce anxiety for the parents and child, who often experienced traumatic events, and establish trust. This would indirectly help the child(ren) adapt to a new home, school, routines and access services.

Key messages

On November 21, 2023, the Minister of Finance announced that a new, 15-week shareable benefit for parents through adoption or surrogacy would be introduced in the EI program in her Fall Economic Statement.

The new benefit would support approximately 1,700 parents through adoption or surrogacy each year with additional EI benefits to carry out their responsibilities related to the placement or arrival of the child or children and will make the program more inclusive for various types of Canadian families, including 2SLGBTQI+ parents and families.

Parents could combine the new benefit with the existing EI parental benefit, making the total number of weeks of income support the same as that of birth parents who can combine maternity and parental benefits.

Issue

Industrial Inquiry Commission investigating longshoring labour disputes at the West Coast ports.

Background

• On August 9, 2023, the Minister of Labour and Seniors initiated a process under section 106 of the Canada Labour Code (Code) to examine the structural issues underlying the strike at the West Coast ports in the summer of 2023 and similar disputes at ports across Canada.
• Section 106 of the Code provides the Minister with the power to make inquiries regarding matters that may affect industrial relations.
• Section 106 is the same authority that the Minister used to establish the Sims Task Force in 1995, which was the last major review of Part I of the Code (Industrial Relations). Also in 1995, Jamieson and Greyell were appointed under sections 106 and 108 of the Code to conduct an Industrial Inquiry Commission (IIC) into industrial relations at West Coast ports.
• On October 19, 2023, the Minister issued a statement announcing that 2 experts, Kevin Banks and Anthony Giles, had been asked to identify the key questions that require a deeper examination and develop proposed Terms of Reference for a more comprehensive review.
• On January 19, 2024, Anthony Giles and Kevin Banks submitted their report to the Minister. The report informed that there are likely underlying issues related to bargaining structures, processes, or negotiating representative governance that have created or contributed significantly to the longshoring labour disputes at the West Coast ports, and that these issues could benefit from a more comprehensive review.
• Following this, on April 22, 2024, the Minister announced the appointment of an IIC to study the underlying issues in longshoring labour disputes at Canada's West Coast ports. The IIC will be chaired by Vincent Ready and will include Amanda Rogers as a Member. The IIC will present its findings and recommendations in a report to the Minister in spring 2025.
• Budget 2024 proposed to provide $3.1 million over 2 years, sourced from existing ESDC departmental resources, to enable the department to complete the second phase of its review.

Key facts

• The labour dispute between the International Longshore and Warehouse Union Canada (ILWU) and the British Columbia Maritime Employers Association (BCMEA) involved a 13-day strike at the West Coast ports in July 2023 that caused serious disruption to the Canadian economy and supply chains.
• The work stoppage shut down major operations at 30 West Coast ports, including the Port of Vancouver, which is the third-largest port in North America in terms of volume and the largest port in Canada.
• The West Coast ports strike caused serious disruptions to the economy and created significant obstacles to the movement of goods. This added to existing challenges for Canada's economy, including supply chain volatility, wildfires, and labour shortages. The dispute impeded the movement of cargo valued at around $10 billion in total, significantly impacting Canadian supply chains in all regions of the country. The most impacted industries were transportation and warehousing, construction, manufacturing, natural resources, and retail trade.

Key messages

• The Government believes in free and fair collective bargaining because the best agreements are reached through good faith negotiations at the bargaining table.
• The strike at the West Coast ports in the summer of 2023 caused serious disruption to our economy. Our ports are vital to our supply chains, and the scale of disruption was a burden on the many businesses and workers that depend on them.
• Last August, I committed to initiating a process under section 106 of the Canada Labour Code to examine the structural issues underlying the longshoring dispute at our West Coast ports, as well as similar labour disputes that have occurred in ports across Canadian ports.
• In October 2023, 2 independent industrial relations experts were contracted to complete the first step of a comprehensive review and propose Terms of Reference.
• On January 19, 2024, the experts provided their key findings and recommendations. They identified several issues that may have created or contributed to the labour dispute last summer. They found that the West Coast ports represent a unique case study that could be the subject of greater examination.
• That is why, on April 22, 2024, I announced the appointment of an Industrial Inquiry Commission to study the underlying issues in longshoring labour disputes at Canada's West Coast ports.
• The Commission will soon begin meeting with stakeholders and reviewing consultation submissions from relevant parties. It will present its findings and recommendations in a report in spring 2025.
• The goal of the Commission is stability. Canada is a reliable trading partner to the world. That is a good thing for every employer and worker in this country. But our credibility depends on the stable operation of our supply chains. We must do everything we can to preserve that stability.

Issue

Continue advancing the implementation of the Pay Equity Act across federally regulated workplaces.

Background

• The Minister of Labour's 2021 mandate letter includes a commitment to continue advancing the implementation of the Pay Equity Act across federally regulated workplaces.
• In Canada in 2022, for every dollar a man earned, a woman earned 89 cents on the dollar, as measured in hourly wages for full-time workers.
• The Pay Equity Act and Pay Equity Regulations came into force on August 31, 2021. With the Pay Equity Act now in force, the focus is on establishing an administrative monetary penalty (AMPs) system, making regulatory amendments to support the implementation of the Pay Equity Act in ministers' offices, and continuing to work collaboratively with Indigenous partners to identify potential adaptions that could be necessary to ensure the Pay Equity Act works for Indigenous Governing Bodies (IGBs).
• On November 18, 2023, the proposed Regulations Amending the Pay Equity Regulations (Administrative Monetary Penalties and Technical Amendments) were published in the Canada Gazette, Part I for a 30-day consultation period. Initial stakeholder consultations on this regulatory package took place in spring 2022. The proposed regulations would amend the Pay Equity Regulations to ensure that pay equity is fully implemented in federally regulated workplaces. More specifically the draft regulations would:
  • operationalize the AMPs system so that employers who do not meet their obligations under the pay equity regime may face fines;
  • support the collection of additional data to better measure the gender wage gap and the impact of the new regime; and
  • make minor technical amendments to provide clarity on employers' obligations and align some parts of the Pay Equity Act with the Canada Labour Code.
• On February 10, 2024, the proposed Order Grouping Ministers' Offices for the Purpose of a Pay Equity Plan (Order) and the proposed Application of the Pay Equity Act to Ministers' Offices Regulations (Regulations) were published in the Canada Gazette, Part I for a 30-day consultation period. Initial stakeholder consultations on this regulatory package took place in summer 2023. The Order and Regulations would adapt the Pay Equity Act and Pay Equity Regulations to support the application of pay equity in ministers' offices. More specifically the Order and Regulations would:
  • Ensure all ministers' offices are subject to the Act, regardless of the number of ministerial staff they employ. All ministerial staff would benefit from the pay equity regime and be treated in the same manner.
  • Group all ministers' offices for the purpose of developing 1 pay equity plan for all ministerial staff. Having each minister develop their own pay equity plan could result in pay equity outcomes that are specific to their office, and could create different pay equity outcomes for ministerial staff holding similar positions in different offices.
  • Provide that the lead minister has 3 years to complete the first pay equity plan starting on the day the Order to group ministers is made. This would ensure there is sufficient time to complete the first pay equity plan.
  • Require that the group of ministers' offices update their pay equity plan at least every 3 years, as opposed to the 5 years provided in the Act. This 3year time limit falls within Canada's normal 4year election cycle, and would increase the likelihood that ministerial staff receive pay equity.
  • Provide that the pay equity process is a continuous exercise for the grouped ministers' offices, and only restarts when a new person becomes the Prime Minister.
  • The Pay Equity Act does not currently apply to Indigenous Governing Bodies (such as First Nations band councils). These workplaces are excluded from the application of the Pay Equity Act until a date specified by the Governor in Council. This delay allows the Government to engage Indigenous Governing Bodies and Indigenous community members to collect their views on the Pay Equity Act itself and see how it can be tailored to ensure positive results in an Indigenous context. Engagement between the Labour Program and national Indigenous partners and rights holders is ongoing.

Key facts

• The Pay Equity Act and Pay Equity Regulations direct federally regulated employers to take proactive steps to ensure that they are providing equal pay for work of equal value.
• As of 2022, the Pay Equity Act applies to approximately 1.4 million workers employed by federally regulated public and private sector employers with 10 or more employees, as well as in the Prime Minister's and Ministers' offices. The regime also applies to parliamentary workplaces, such as the Senate, House of Commons, Library of Parliament, and Members of Parliament.
• The Pay Equity Act requires employers to establish a pay equity plan within 3 years of becoming subject to the Act. In addition, employers are required to review and update pay equity plans at least every 5 years to identify and close any gaps that may emerge.
• The Pay Equity Act is administered and enforced by the Pay Equity Commissioner, Lori Straznicky, who is a full-time member of the Canadian Human Rights Commission. Ms. Straznicky was appointed as the Pay Equity Commissioner on November 1, 2023, for a term of 5 years. She is supported by the Pay Equity Unit at the Canadian Human Rights Commission.

Key messages

• We have taken long-overdue action to make equal pay for work of equal value a reality for federally regulated workers.
• The Pay Equity Act, which came into force on August 31, 2021, directs federally public and private sector employers to take proactive steps to ensure that they are providing equal pay for work of equal value. The legislation has brought about a dramatic shift in how the right to pay equity is protected in federally regulated workplaces.
• The pay equity regime is administered and enforced by Lori Straznicky, the federal Pay Equity Commissioner, who is supported by the Pay Equity Unit at the Canadian Human Rights Commission.
• 2 sets of proposed regulations under the Act were recently published for a 30-day consultation period. The proposed regulations would strengthen the Pay Equity Commissioner's ability to encourage compliance and support the application of the Act in ministers' offices.
• I will continue to advance the implementation of the Act by moving forward regulations that will support the Act to ensure that pay equity is fully implemented in federally regulated workplaces.

Issue

The Government of Canada fulfils its commitment to addressing pay gaps through the introduction of pay transparency measures for private-sector employers subject to the Employment Equity Act (the Act).

Background

• A pay gap is the average difference between what 2 groups typically earn. A pay gap provides a basic understanding of what the pay balance looks like within an organization. It is determined by comparing the pay of a subject group (for example, women) to a comparator group (for example, men) and expressing it as a dollar value.
• Despite narrowing educational and work experience gaps, the gap in pay between men and women persists among workers in Canada. Some of the reasons cited for this ongoing disparity include:
  • inflexibility in standard hours of work;
  • workforce interruptions;
  • lower likelihood of negotiation over salary, raises, and promotions; and
  • gender discrimination in hiring.
• Pay gap reporting is about making pay gap information publicly available so it can help to shift business culture and expectations towards greater equality. Since 1986, federally regulated employers have provided pay information as part of their reporting obligations under the Act. Prior to the 2022 reporting cycle, the employment equity reports submitted annually by employers were publicly available online but pay gap data was not highlighted.
• This new approach provides Canadians with user-friendly, comparative online information on a Government website, Equi'Vision, on designated group (for example, women, Indigenous peoples, persons with disabilities and members of visible minorities) representation rates and pay gaps for each federally regulated private-sector employer. Individual employee information, including data related to individual salaries, is not reported nor published.

Key facts

• While educational and work experience gaps are narrowing, the gap in pay between men and women persists among workers in Canada. In Canada in 2021, for every dollar a man earned, a woman earned 89 cents as measured in hourly wages for full-time workers.
• Among federally regulated private-sector employees in permanent full-time positions in 2021, 82.4% of men and 72.3% of women earned $50,000 and more per year. This compares to:
  • 80.5% of Indigenous men and 67.3% of Indigenous women
  • 82.3% of men with disabilities and 73.6% of women with disabilities
  • 79.7% of visible minority men and 70.6% of visible minority women
• Budget 2018 committed $3 million over 5 years, starting in 2018 to 2019, to implement pay transparency for federally regulated private-sector employers with 100 or more employees to reduce pay gaps. Budget 2019 announced amendments to the Employment Equity Act and Employment Equity Regulations to support the implementation of pay transparency measures. Following several rounds of stakeholder consultation, the amendments came into force on January 1, 2021.
• Employers reported their first pay gap information for the 2021 reporting year on June 1, 2022. This information was published for the first time on February 2, 2024. The launch was featured in articles posted by 14 different media outlets (e.g. Globe and Mail; Canadian Press) and those same articles were carried by an additional 30 local media outlets (e.g. CTV News; Toronto Star; Ottawa Citizen).
• The Government's new pay transparency measures makes pay gap information for women, Indigenous peoples, persons with disabilities and members of visible minorities working in federally regulated workplaces (for example, banking, communications, transportation) publicly available.

Key messages

• We are the first country to publish pay gaps that go beyond gender on a new website. The website provides the public with information on representation rates and pay gaps for women, Indigenous peoples, persons with disabilities and members of visible minorities.
• The online information includes comparable pay gap information for each employer comprising mean and median hourly pay gaps, the mean and median bonus pay gaps, and the mean and median overtime pay and hours gaps.
• Canadians told us that they want pay discrimination to end. It is important that we get this right. This initiative provides the information needed, so that employers and workers find a solution to recognize the value of all workers.
• The UK has tried this, and it works. All large employers in the UK publish gender wage gaps online annually since 2017. The results are clear. Publishing pay gaps raises awareness about this issue.

Issue

The Minister of Labour's mandate letter includes a commitment to lead efforts to provide menstrual products in federally regulated workplaces to help ensure menstruating employees' participation in work.

Background

• Regulations under Part II (Occupational Health and Safety) of the Canada Labour Code (the Code) require employers to provide supplies such as toilet paper, soap, warm water, and a means to dry hands.
• Providing menstrual products, including pads and tampons, in the workplace can relieve health risks that menstruating employees may face when menstrual products are not available.
• Regulatory amendments to require employers to provide menstrual products for employees in federally regulated workplaces were published in Part II of the Canada Gazette on May 10, 2023, and came into force on December 15, 2023.
• 6 different consultation activities on the Menstrual Products regulatory initiative took place. Specifically:
  • In May 2019, a Notice of Intent was published in Part I of the Canada Gazette;
  • In June 2021, a round table of experts was convened;
  • In August 2021, a Summary of Findings and an online survey were published for public comment;
  • In April 2022, a consultation session was held with a broad range of stakeholders;
  • In August 2022 Modern treaty holders, other Indigenous governments, and Indigenous organizations had the opportunity to inform the Regulations through an engagement discussion paper;
  • In October 2022, the proposed regulations were pre-published in the Canada Gazette, Part I for stakeholder and public feedback.
• Total cost for those consultations were approximately $20,000. These costs were for publication in the Canada Gazette as the consultations were conducted virtually and in-house.

Key facts

• In federally regulated workplaces, close to 500,000 employees, who account for approximately 35% of this workforce, could benefit from the provision of menstrual products.
• A 2018 survey found that one third of Canadian women under the age of 25 struggled to afford menstrual products, while 70% have missed work or school, or have withdrawn from social activities, because of their period (Plan Canada International, 2018).
• A 2013 study conducted in the United States found that 86% of women have started their period unexpectedly in public without the supplies they need, causing feelings of anxiety or embarrassment, and often resulting in the disruption of workplace activities (Free the Tampons, 2013).

Key messages

• Limited access to menstrual products at work can put the health and safety of workers at risk. We have strengthened regulations under the Canada Labour Code to ensure menstrual products are treated like other basic sanitation products, such as toilet paper and soap, and are made available at no cost to employees when they need them at work.
• Providing menstrual products in the workplace better protects the physical and psychological health and safety of employees who may need them.
• Employers are now required to provide menstrual products in all washrooms, regardless of gender, or another accessible location that offers reasonable privacy in workplaces they control so that any employee who needs them while on the job has access.
• The more we talk about it and the more we ensure access to menstrual products, the more we help to lift the stigma and create healthier, safer and more inclusive work environments.
• This initiative advances the Government's commitment to a more inclusive Canada by ensuring all employees' participation in healthy and safe workplaces.
• The Government of Canada has been made aware of incidents in some federally regulated workplaces related to the implementation of menstrual products.
• We continue to promote and create awareness on the positive impacts that the availability of menstrual products in the workplace has on the health and safety of employees. The final regulations, which apply to federally regulated workplaces, came into force on December 15, 2023.
• Guidance material to support implementation of the new regulations is available on Canada.ca: Requirements for employers to provide menstrual products in federally regulated workplaces.

Issue

The Government has implemented paid sick leave provisions, which were introduced under an Act to Amend the Criminal Code and the Canada Labour Code (Bill C-3).

Background

Key facts

• Part III of the Canada Labour Code sets labour standards for employees in the federally regulated private sector, including about, 945,000 employees (roughly 6% of the Canadian employees) and 19,000 employers.
• Bill C-3 will benefit about 582,700 employees, representing 63.3% of all employees employed in federally regulated industries, who have access to fewer than 10 days of paid leave to treat a personal illness or injury.

Key messages

• Bill C-3, which received all party support, provides employees in the federally regulated private sector with 10 days of paid sick leave per calendar year.
• These amendments to the Canada Labour Code empower employees to prioritize their health and the health and safety of their workplaces.

Issue

In 2021, the Government of Canada announced its commitment to modernize the Federal Contractors Program (FCP) to ensure federal contractors are paying their employees the federal minimum wage.

Background

• The Federal Minimum Wage (currently $16.65 CAD)^{Footnote 4} is enforced through the Canada Labour Code (the Code) on federally regulated employers. Federal contractors are not subject to the Code, they are subject to provincial or territorial labour standards legislation.
• The intent of the federal minimum wage initiative is to ensure that suppliers to the federal government, pay wages that are commensurate with the level of education, training, and responsibilities employees are required to have for their jobs.
• The FCP aims to achieve employment equity outcomes through government procurement. It requires that organizations who do business with the Government of Canada implement employment equity in their workplace.
• Government officials are working collaboratively to establish a coordinated approach and implement this commitment in the most effective way possible. The Labour Program is currently collaborating with Treasury Board of Canada Secretariat (TBS) and Public Services and Procurement Canada (PSPC), as the largest federal contracting department, to identify opportunities to pursue common procurement policy modernization objectives.

Key facts

• In the 2021 mandate letter, the Minister of Labour was asked to implement the federal minimum wage through a modernized FCP.
• The FCP applies to provincially regulated organizations that have a combined workforce of 100 or more permanent employees, and who have received an initial goods and services contract valued at $1 million or more (including applicable taxes).
• Currently, contractors must ensure their workforce is representative of Canada's labour force with respect to the members of the 4 designated groups under the Employment Equity Act: women, Indigenous peoples, persons with disabilities, and members of visible minorities.
• Since 2013, the Labour Program has enrolled over 400 contractors under the FCP based on the $1 million contract value threshold, which represents a fraction of the unique contractors with PSPC.

Key messages

• We believe in equity and are working to level the playing field for all Canadians. Creating equitable, diverse, and inclusive workplaces will build a country where every Canadian has a real and fair chance to succeed and contribute to the economy.
• The Labour Program is working with PSPC, the largest federal contracting department, to establish a coordinated approach and implement this commitment in the most effective way possible.
• Our objective remains focused on ensuring federal contractors pay wages commensurate with their employees' occupational requirements and treating all suppliers fairly across the country.
• Through our combined efforts, this initiative will support workers in organizations that contract with the federal government, lift more Canadians out of poverty, and support our economic recovery.

Issue

Completing the development of a right to disconnect policy, in consultation with federally regulated employers and labour groups.

Background

• The Minister of Labour has a mandate commitment to complete the development of a right to disconnect policy, in consultation with federally regulated employers and labour groups.
• The Right to Disconnect Advisory Committee was formed in 2020 with representatives from federally regulated employers, unions and non-governmental organizations.
• The Committee's final report was published in February 2022 and is available online. While Committee members agreed work-life balance was essential, they were unable to come to a joint recommendation on the need to legislate right to disconnect policies. Unions and non-governmental organizations (NGOs) supported a legislative requirement to establish right to disconnect policies, whereas employers were opposed.
• Budget 2024 "proposes to provide $3.6 million over 5 years, starting in 2024 to 2025, and $0.6 million ongoing to enable the Labour Program to implement legislative amendments to the Canada Labour Code that would require employers in federally regulated sectors to establish a right to disconnect policy limiting work-related communication outside of scheduled working hours."
• Evidence shows that the ability to remain connected to work, while beneficial in certain ways, carries risks for employees, including stress due to disrupted work-life balance, burnout, and health related absenteeism from work. It also creates uncertainty around how labour standards apply to new workplace realities such as remote work and electronic communication outside of scheduled working hours, especially through digital devices.

Key facts

• Remote work is the new norm. In 2023, 20% of Canadians worked most of their hours from home in 2023, compared to just 7% in 2016.
• For many Canadians, working from home means working longer hours. Overall, 35% of all new teleworkers reported working longer hours per day and only 3% reported working shorter hours.
• In the 2022 Survey of Employees under Federal Jurisdiction, about 25% of employees in federally regulated industries indicated sending/answering work-related emails, calls or texts outside of working hours every day, equivalent to 250,000 employees. About 60% of them say that this is expected by their employer.

Key messages

• I have a mandate commitment to complete the development of a right to disconnect policy, in consultation with federally regulated employers and labour groups.
• The government is taking action to restore work-life balance for the many workers in federally regulated industries.
• Evidence shows that disconnecting from work is critical to well-being and productivity. Right to disconnect policies can reduce the informal expectation that employees must remain constantly connected, while maintaining the flexibility employers need to keep the economy moving.
• The Government of Canada is proposing to amend the Canada Labour Code to ensure employer expectations are clear, employee work-life balance is better protected, and employees are compensated fairly for engaging in work-related communication outside of their scheduled hours of work.
• The Canada Labour Code already includes many protections for workers, including maximum hours of work, overtime and the right to refuse overtime. We want to ensure employees are paid when they work extra hours, and not prohibit overtime.

Issue

Private Member's Bill C-378, An Act amending the Canada Labour Code (complaints by former employees), which was introduced by Conservative Member of Parliament Dominique Vien on February 12, 2024.

Background

• Bill C-378 was introduced by Conservative Member of Parliament Dominique Vien on February 12, 2024.
• The Bill proposes amendments to subsections 125(4) and 127.1(12) of Part II of the Canada Labour Code (Code), and the addition of a new subsection 127.1(12.1).
• The amendments would provide former employees with more time after they cease to be employed to provide a notice of an occurrence of work place harassment and violence to their former employer. It would also provide former employees with more time to make a complaint to their former employer relating to an alleged contravention of their employer's duties relating to an occurrence of work place harassment and violence.

Key facts

• Part II of the Code applies to federally regulated public and private sector work places. This includes approximately 1.36 million employees and 19,600 employers (approximately 7.9% of all employees and 1.5% of all employers in Canada), working in industries such as banking, telecommunications, broadcasting, and inter-provincial and international transportation (including air, rail, maritime and road transportation), federal Crown corporations, the federal public service, RCMP, parliamentary workplaces, and First Nations Band Councils. Part II of the Code does not apply to the Canadian Armed Forces.
• The current rules under the Code relating to notices of occurrences and complaints by former employees came into force on January 1, 2021, under Bill C-65, An Act to amend the Canada Labour Code (harassment and violence), the Parliamentary Employment and Staff Relations Act and the Budget Implementation Act, 2017, No. 1.
• Bill C-65 amended Part II of the Code to strengthen the existing framework for the prevention of harassment and violence in the work place with a view of preventing occurrences of harassment and violence. The associated Regulations came into force on the same day.
• Bill C-378 is the first Private Member's Bill to propose amendments to Part II of the Code regarding harassment and violence since the provisions came into force under Bill C-65 in 2021.

Key messages

• There is no room for harassment and violence in Canadian work places.
• The Canada Labour Code (Code) and the Work Place Harassment and Violence Prevention Regulations (Regulations) help to protect employees in federally regulated work places by requiring employers to take steps to prevent, protect against, and respond to work place harassment and violence.
• Harassment and violence have a profound negative effect on workers. I understand that the proposed amendments would provide more time for former employees to provide a notice of an occurrence of work place harassment and violence or make a complaint relating to their employer's duties regarding work place harassment and violence.
• The Government will continue its efforts to help create safer work places, where everyone is included, respected, and protected. This includes undertaking a planned five-year legislative review of the harassment and violence prevention framework beginning in 2026, which will provide an opportunity to evaluate its successes and identify if any potential changes are needed to address stakeholder needs.

Issue

Is the Government considering a National Seniors Strategy?

Background

• Multiple actors have called for a national seniors strategy over the last few years, including parliamentary committees and various stakeholder groups
• The New Democratic Party (NDP) publicly called for a National Seniors Strategy in 2016. In the 2021 election, the NDP platform included a proposal to lead a National Seniors Strategy, "to make seniors' healthcare a priority, reduce isolation and address seniors' poverty." The proposed NDP Seniors Strategy would include a funded national dementia strategy and an elder abuse prevention program
• Seniors are a diverse population with diverse needs from many perspectives, including age, gender, culture, health and socio-economic status. As such, seniors' issues are by their nature interdisciplinary and complex, and jurisdiction over health and socio-economic issues faced by seniors is shared across federal, provincial/territorial, municipal and some Indigenous governments
• The Government of Canada's support to seniors is horizontal in nature, recognizing that policies and programs reflect the diversity of needs within the seniors' population. Policies and programs span across departmental lines and in a number of areas
• The Government is committed to supporting seniors and ensuring they are able to engage in all aspects of life. The government is strongly engaged in safeguarding the health, well-being and quality of life of seniors, especially during the COVID-19 pandemic

Key facts

• In 2015, a coalition of seniors stakeholders called for the adoption of a national seniors strategy, which was reiterated in 2020. This call was echoed by other seniors stakeholders
• In 2017, the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities called for a national seniors strategy
• In 2018, the National Seniors Council was asked to provide advice on the topic of a national seniors strategy
• In 2022, the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities' report entitled, Impact of COVID-19 on the Well-being of Seniors, recommended that the Government of Canada create a federal office of the seniors advocate that would have a mandate to develop a national seniors strategy, provide advice to the Government of Canada as regards seniors and their needs, and address elder abuse

Key messages

• The Government of Canada is showing national leadership in supporting the healthy aging of seniors across three key areas of action: fostering the social inclusion and safety of seniors; improving supportive care and services; and supporting the income security of seniors
• We have made interventions to improve Canadians' retirement security, ensuring they have a better quality of life and stronger financial security
• The Government has also advanced a number of initiatives and made investments that benefit seniors, ranging from new funding for provinces and territories, investing in home care, taking steps to improve the health workforce planning, and making several recent investments to strengthen long-term care in Canada
• Both nationally and internationally, Canada is committed to ensuring seniors age with respect and dignity. Canada is also committed to the protection of human rights of all persons, including older persons

Issue

The pandemic disproportionately affected Canadians living in long-term care homes. Canadians are concerned about the availability of safe, high-quality long-term care services.

Background

Key facts

• On January 31, 2023, the Standards Council of Canada, Health Standards Organization (HSO) and Canadian Standards Association (CSA Group) announced the completion and public release of new national long-term care standards.
• Budget 2023 announced close to $200 billion over 10 years to support the Working Together to Improve Health Care for Canadians Plan.
• Funding includes $7.8 billion over five years that has yet to flow to provinces and territories for mental health and substance use, home and community care, and long-term care.
• As a part of the previous Minister of Health's Mandate Letter, Health Canada was tasked with creating a Safe Long-Term Care Act to ensure seniors get the care they deserve.
• The Government of Canada has carried out extensive consultations and engagement with stakeholders and Canadians on a Safe Long-Term Care Act.

Key messages

• Every senior in Canada deserves to live in dignity, safety, and comfort, regardless of where they live.
• The COVID-19 pandemic has highlighted long-standing and systemic challenges in long-term care homes across Canada.
• Long-term care residents deserve to live in dignity, comfort and respect. That is why the Minister of Health and the Minister of Seniors were mandated to develop national long-term care standards and a Safe Long-Term Care Act.
• In January 2023, the Standards Council of Canada (SCC), Health Standards Organization (HSO) and the Canadian Standards Association (CSA) Group released 2 new complementary, independent long-term care standards. These standards provide guidance for delivering long-term care services that are safe, reliable and centred on residents' needs.
• The Government of Canada has carried out extensive consultations and engagement with stakeholders and Canadians on developing a Safe Long-Term Care Act. This includes consulting with experts, stakeholders, persons with lived experience, and provinces and territories, as well as building on existing collaborations with First Nations and Inuit partners.

If pressed

If pressed on when the Safe Long-Term Care Act will be tabled

• The Government of Canada is committed to doing more to support seniors across the country. We know Canadians want to age closer to home and family, but also expect long-term care to be safe, when needed.
• As such, our government is developing a Safe Long-Term Care Act to help ensure that all Canadians get the care they deserve, while respecting provincial and territorial jurisdiction.
• The Government of Canada has carried out extensive consultations and engagement on a Safe Long-Term Care Act. This includes consulting with experts, stakeholders, persons with lived experience, and provinces and territories, as well as building on existing collaborations with First Nations and Inuit partners.
• The Government of Canada has also recently completed a public online consultation on Safe Long-Term care, which will inform the development of the Act.

If pressed on whether the national long-term care standards will be enforced through the new Safe Long-Term Care Act

• It is important to note that the delivery of long-term care services is a provincial and territorial responsibility.
• Federal legislation will need to be respectful of this provincial-territorial jurisdiction. That is, it will not mandate standards or regulate long-term care delivery.
• The Government of Canada has already been collaborating with provinces and territories to support improvements in long-term care, as highlighted by the $3 billion investment to support their efforts to ensure standards for long-term care applied and permanent changes are made.
• Negotiations are underway. Funding agreements allow us to continue to work together to prioritize the uptake and adherence to the standards in order to provide high quality care to all Canadians that require it.

Issue

How are seniors supported to age at home and in their communities?

Background

• Aging in place means having the health and social supports and services you need to live safely and independently in your home or your community for as long as you wish and are able
• Canadians strongly prefer aging in place. This has been exacerbated by the COVID-19 pandemic and its impact on long-term care. As many as 96% of Canadians aged 65 and older state that they "would do everything they can" to avoid moving into an institutional setting (National Institute on Ageing, 2022)
• As part of its response to the June 2022 Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA Committee) Report titled The Impacts of COVID‑19 on the Well-Being of Seniors, the government recognized the important impacts the COVID-19 pandemic had on the well-being of seniors, which affected seniors' ability to reach the health and social supports they need to age in place. Various reports have contributed to help the government better understand and respond to impacts COVID-19 had on seniors. For example, the Forum of Federal/Provincial/Territorial Ministers Responsible for Seniors released a report entitled An Examination of the Social and Economic Impacts of Ageism and its complementary A Case Study on Ageism during the COVID-19 Pandemic. The Forum also published a report entitled Social Isolation among Older Adults during the Pandemic, the findings of which were incorporated into a broader report, Enabling older adults to age in community, and the National Seniors Council published a report entitled Seniors Well-Being in Canada: Building on lessons learned from the COVID-10 pandemic
• The Government is investing $90 million for the Age Well at Home initiative, until fiscal year 2025-2026. The initiative was announced in Budget 2021 and supports local, regional and national projects led by seniors-serving organizations. Funded projects pilot new approaches and expand services that have already demonstrated results in helping seniors to age at home
• In addition, supporting the social participation and inclusion of seniors is one of the objectives under the New Horizons for Seniors Program. Through Budget 2022, the Government of Canada invested an additional $20 million in the program over two years (2022-2023 and 2023-2024) to support more projects that improve the quality of life for seniors and help them continue to fully participate in their communities
• Over the past year, the federal government has also taken significant steps towards making housing more affordable for Canadians, which could support aging in place. For example, the 2023 Fall Economic Statement announced an additional $1 billion over three years, starting in 2025-26, for the Affordable Housing Fund. This investment will support non-profit, co-op, and public housing providers to build more than 7,000 new homes by 2028. Additionally, for the 2023 and subsequent taxation years, the Multigenerational Home Renovation Tax Credit (MHRTC) provides a refundable credit of up to $7,500 for constructing a secondary suite for a senior or an adult who is eligible for the disability tax credit
• Budget 2023 announced close to $200 billion over ten years to support the Working Together to Improve Health Care for Canadians Plan. This includes $46.2 billion in support to provinces and territories through the Canada Health Transfer, tailored bilateral agreements, personal support worker wage support, and a ten-year commitment on the Territorial Health Investment Fund. The plan emphasizes the key federal health priorities:
  • Access to family health services
  • Building a resilient health workforce and addressing backlogs
  • Access to mental health and substance use services
  • Modernizing the health system through digital health and health data
  • Helping Canadians age with dignity
• The Government has taken a number of actions to help seniors age in place, but more remains to be done. Budget 2022 proposed the creation of an expert panel to examine measures, including a potential aging at home benefit, to further support Canadians who wish to age at home. The Minister of Seniors and Minister of Health announced in October 2022 that the National Seniors Council (NSC) would serve as the expert panel
• Given their extensive knowledge and expertise on issues relevant to older adults as well as their connections to work being led in communities across the country, the National Seniors Council members were well positioned to provide advice on this important issue
• The Final Report, entitled "Supporting Canadians Aging at Home: Ensuring Quality of Life as We Age", was submitted to the Minister of Seniors and Minister of Health on September 29, 2023
• To develop their advice, the NSC undertook a scan of the environment, a literature review and extensive engagement (including an online consultation, stakeholder roundtables, and key informant interviews). These activities provided the NSC with an opportunity to consider multiple unique perspectives and hear from diverse voices across the country

Key facts

• With the right supports, some older adults can remain in their homes, while others may need to transition to congregate or institutional living. The Canadian Institute for Health Information notes that about 1 in 10 of newly admitted long-term care residents potentially could have been cared for at home (2022)
• While there are data comparability issues when comparing Organization for Economic Cooperation and Development (OECD) long-term care^{Footnote 5} (which includes care at home and in institutions) expenditure data, OECD data suggests that Canada is at or slightly above average when looking both at total long-term care spending as a share of Gross domestic product (GDP) (2,3% for Canada and 1.8% for the OECD (in 2021) and at Canada's spending on home care as a share of total long-term care spending (19% for Canada versus 18% for the OECD (in 2021)^{Footnote 6}. The OECD data suggests Canada's remaining long-term care spending goes to hospitals (13%) and to nursing homes (66%), with another 2% falling under the "other" category
• That said, OECD data also suggests that Canada is lagging behind leading countries such as the Scandinavian countries and the Netherlands when looking at total long-term care spending (as a share of GDP) and also lags behind leading countries such as Denmark (35%), Belgium (32%), Germany (32%) or Norway (55%) when looking at the proportion of spending on home care as a share of total long-term care based on the OECD methodology (compared to 19% for Canada)

Key messages

• Seniors want to live at home and in their communities as long as possible. However, it can become challenging as they age
• The Government of Canada is taking steps to enhance Canadian seniors' ability to age at home, and receive quality home care. That is why the Minister of Health and I have asked the National Seniors Council to serve as an expert panel to examine measures, including a potential aging at home benefit, to further support Canadians who wish to age within the comfort of their own homes
• As part of their examination of the topic, the National Seniors Council has reviewed literature and gathered evidence on the gaps and areas of greatest need. In Spring 2023, the NSC led an online survey to gather views from Canadians on measures to further support aging at home which yielded over 12,000 responses. Council members also led virtual roundtables with stakeholders and individuals with lived experience as well as a series of key informant interviews with experts. Over 70 individuals were involved in these roundtables and interviews
• The Government of Canada is investing $90 million for the Age Well at Home initiative, until fiscal year 2025-2026. This initiative provides funding to seniors-serving organizations for local, regional and national projects. These projects test the extent to which volunteers can be mobilized to provide practical supports such as meals, housekeeping, and yard work to help low-income and otherwise vulnerable seniors age at home
• Funding is also provided for regional and national projects that expand services that have already shown positive results in helping seniors stay at home
• The Government of Canada has made additional significant investments to provide supports for older Canadians to age at home in place. This includes:
  • $6 billion over ten years, starting in 2017, to provinces and territories to improve access to home and community care services, including palliative care (the remaining $2.4 billion of this funding, plus an additional $3 billion over five years for long-term care, is being distributed to provinces and territories through new Aging with Dignity bilateral agreements); and
  • $70 million annually for the New Horizons for Seniors Program to help seniors stay active and engaged in their communities, with an additional Budget 2022 investment of $20 million over two years to support more community projects that improve seniors' social inclusion
• The Government has made additional investments to respond to COVID-19 and its impact on seniors. For example, since 2020, the Government of Canada has provided $10.7 million to Health care Excellence Canada, who has enabled more than 1,500 long-term care facilities and retirement homes across Canada to implement best practices for preventing and addressing COVID-19 infection. Their most recent phase of work was entitled Reimagining Long-Term Care: Enabling a Healthy Workforce to Provide Person-Centred Care. Participating teams were supported to address gaps in the safety and quality of care received in long-term care

Issue

How does the New Horizons for Seniors Program (NHSP) support Canadian seniors and their communities?

Background

• The NHSP is a Grants and Contributions program created in 2004 to help ensure that seniors can benefit from, and contribute to, the quality of life in their communities. It achieves this goal through the following program objectives:
  • promote volunteerism among seniors and other generations
  • engage seniors in the community through mentoring of others
  • expand awareness of elder abuse, including financial abuse
  • support social participation and inclusion of seniors; and
  • provide capital assistance for new and existing community projects and/or programs for seniors
• The program has two funding streams: community-based and pan-Canadian. The community-based stream funds projects of one-year in duration through grants of up to $25,000 through an annual Call for Proposals. The pan-Canadian stream funds more complex multi-year projects through contributions, for a maximum funding amount of $5 million. The most recent funding opportunities for both streams closed in the fall of 2023.
• The program directly supports the Minister of Labour and Seniors' mandate commitment to advance programming for seniors. The program has a broad array of eligible funding recipients and prioritizes projects that support vulnerable seniors including Indigenous Peoples, seniors with disabilities, members of racialized and newcomer groups, members of 2SLGBTQI+ communities, low-income seniors, and veterans.

Key facts

• The program funds both community-based and pan-Canadian projects with an annual budget of $70 million:
  • The community-based stream's annual budget is $50.04 million
  • The pan-Canadian stream's annual budget is $13.1 million; and
  • The administration of the program is $6.86 million
• Since it began, in 2004, the community-based grants stream has funded about 40,000 local projects by and for seniors in hundreds of communities across Canada, with a total investment of more than $749 million. The pan-Canadian contributions stream, created in 2007, has supported 149 collaborative projects to support the social inclusion of seniors, representing an investment of more than $102 million.
• For the community-based Call for Proposals held in fall 2023, over 5,900 applications were received, representing over $130 million. A total of 3,453 projects were funded in 411 communities for an investment of $71.3 million. There continues to be high demand for this stream, with the number of successful proposals continuously exceeding available funds.

• Project proposals are targeted to vulnerable seniors populations. Of the community-based projects funded as part of the fall 2023 Call for Proposals, 91% of funded projects were intended for vulnerable population groups, with many of these projects serving multiple vulnerable population groups:
  • 62% of the funded projects were intended for low-income seniors
  • 45% for seniors with disabilities
  • 43% for newcomer seniors
  • 35% for seniors living in rural and remote areas
  • 18% for Indigenous seniors, and
  • 16% for 2SLGBTQI+ seniors
  • recognizing that these percentages are not mutually exclusive.
• Ongoing efforts to streamline and simplify the application process make it easier for organizations representing vulnerable groups to apply. The most recent client survey reported an 82% rate of satisfaction with the application process, the highest score received by the Department for all Grants and Contributions programs this year.

Key messages

• The program supports the Government of Canada's overarching goal to enhance the quality of life and promote the full participation of seniors in all aspects of life.
• Through both small-scale local projects and larger multi-year initiatives, the program creates opportunities for seniors to be socially engaged, connected and active members of their communities and help build the capacity of organizations to address complex issues encountered by seniors and increase their social inclusion.
• The program makes a meaningful difference in the daily lives of hundreds of thousands of seniors every year and helps hundreds of communities benefit from the increased social participation, knowledge, skills, and experience of diverse seniors.
• Both the community-based and pan-Canadian streams' most recent funding calls resulted in record numbers of applications received. The selected community-based projects will be announced this spring, and an announcement on the concepts selected to become future pan-Canadian projects is expected this summer.

Issue

What is the Government doing to support seniors' digital literacy and connectivity?

Background

• In June 2019, the government released High-Speed Access for All: Canada's Connectivity Strategy. The Strategy represents a historic commitment to make affordable, reliable high‑speed Internet infrastructure available to all Canadians, and to improve mobile access from coast to coast to coast.
• The Government's overall approach to expanding access has been to establish marketplace frameworks to foster competition and investment, effectively manage spectrum to encourage the availability of wireless services and establish targeted funding programs for rural broadband expansion for areas that lack a private sector business case.
• To support these efforts, the Government launched the Universal Broadband Fund (UBF) in November 2020, which has dedicated $3.225 billion to support connectivity in underserved rural and remote communities in collaboration with provinces, territories, and other partners. Including the UBF, the government has made a total of $7.6 billion available for broadband expansion since 2015. Collectively, these investments will ensure that 98% of Canadians are connected to high-speed Internet by 2026, with the goal of connecting all Canadians by 2030. The UBF builds on existing programs that continue to roll out. For example, the Connect to Innovate program that is bringing improved internet to over 975 communities, including 190 Indigenous communities, and the Canadian Radio-television and Telecommunications Commission's (CRTC) $675 million Broadband Fund are sourced from a levy on industry.
• Through the government's Connecting Families initiative, Internet Service Providers (ISPs) participate voluntarily to offer discounted home Internet to hundreds of thousands of low‑income households. Recognizing that seniors have significantly lower levels of Internet use than average Canadians, the Connecting Families initiative recently expanded eligibility beyond low-income families to include low-income seniors. With this addition, seniors who qualify for the maximum Guaranteed Income Supplement (GIS) are now eligible to benefit from discounted home Internet service.
• The Government's Digital Literacy Exchange Program led by Innovation, Science and Economic Development, funds non-profit organizations to support digital literacy training initiatives for Canadians who need improved skills and confidence in using computers, mobile devices and the Internet, including seniors.

Key facts

• The Government continues to prioritize investment in the development of broadband internet. As part of Canada's Connectivity Strategy, the Government launched the Universal Broadband Fund in 2020 to expand connectivity in rural and remote communities in collaboration with provinces, territories, and other partners.
• Since the launch of Digital Literacy Exchange Program in 2017 and an investment of $29.5M over 5 years, the government has provided digital literacy training to over 400,000 participants, to provide them with the basic digital literacy skills needed to fully participate in the digital economy and society. In its first phase, over 200,000 Senior participants were able to take advantage of the program.
• Through the New Horizons for Seniors Program, ESDC provides funding to community-organizations for projects that aim to increase seniors' social inclusion. The program has four national priorities which help prioritize project proposals to be funded, one of which is to support healthy aging, including through addressing social isolation by supporting seniors' digital literacy. In 2022-2023, 326 community-based projects were funded that included digital literacy activities, for a total of more than $6.5 million.

Key messages

• The Government of Canada is committed to ensuring that all Canadians, including seniors, have access to high-speed Internet by 2030 as part of Canada's Connectivity Strategy. Through the Connecting Families Initiative, the Government of Canada is supporting low‑cost internet service, in collaboration with 18 Internet Service Providers, for those who need it most. The eligibility criteria for the program were recently expanded beyond low‑income families to include low-income seniors.
• The Government of Canada is committed to developing digital literacy skills, particularly among underrepresented groups in Canada, which includes Seniors. In 2022, the Digital Literacy Exchange Program was renewed for $17.6 million for an additional three years to support digital literacy skills training to an additional 100,000 participants to ensure that Canadians are equipped to participate in the digital economy and society.
• The New Horizons for Seniors Program provides funding to community-organizations for projects that aim to increase seniors' social inclusion. Projects that intend to address social isolation, including through supporting seniors' digital literacy, are funded on a priority basis under one of the four national priorities of the program. Examples of funded projects include those that help seniors access technology and stay connected, which contributes to enhancing their sense of connectedness to their communities and reinforcing their social inclusion. More than $6.5 million was attributed for such projects as part of the 2022-2023 call for proposals.

3.e.i. Old Age Security enhancements and processing

Issue

Interest around basic income has increased since the beginning of the pandemic.

Background

• In December 2021, NDP MP Leah Gazan introduced Bill C-223, a Private Member's Bill that would direct the Minister of Finance to work with Ministerial colleagues, provincial governments, Indigenous representatives, and other stakeholders to develop a national framework for the implementation of a guaranteed livable basic income, which has a similar meaning to "basic income." The Bill completed its First reading in the House of Commons and is currently outside the Order of Precedence (it has not been called for debate)
• In December 2021, Senator Kim Pate introduced Bill S-233, a Senate Public Bill, that uses the same language as Private Member's Bill C-223. The Bill has completed its second reading and is currently being considered by the Standing Senate Committee on National Finance. The Committee has met to review the Bill in October 2023, November 2023 and February 2024. The Committee has not yet felt ready to report on its study of this bill and would like to hear from additional witnesses

Provincial initiatives

• A few provinces, and in particular Prince Edward Island (PEI), Newfoundland and Labrador (NL) and Quebec, have taken steps towards advancing basic income initiatives in recent years
• In 2022, PEI legislators reconfirmed their support for implementing a Basic Income program in a letter signed by all provincial party leaders
• In November 2023, PEI Minister Ramsay reached out to Minister Sudds to establish a federal-PEI working group to examine the benefits and impacts of a basic income mechanism, leveraging the work of Coalition Canada. Minister Sudds responded to express the Government's willingness to explore the creation of a working group composed of department officials with the intention of exchanging federal-level administrative, survey and tax data and information in support of PEI's work to evaluate a basic income
• In 2022, NL announced the creation of a basic income program for youth, limited to youth involved with certain provincial programs. In November 2023, NL announced a "Targeted Basic Income Program" for people aged 60 to 64, limited to those currently receiving certain provincial supports, to match basic federal seniors' benefits, which they will receive once they reach age 65
• In January 2023, a new Basic Income Program came into effect in Quebec for individuals already receiving benefits under the Social Solidarity Program and who have had severely limited capacity for employment (such as serious mental or physical health problems that limit an adult's opportunities to work) for at least 66 months over the previous 72 months. Persons who are eligible are automatically switched from the Social Solidarity Program to the Basic Income Program
• Critics of basic income express concerns about the anticipated costs and disincentives to work, and many oppose payments without requirements to work or seek employment. There are also concerns that important needs-based programming might be cut back or eliminated to help contain costs if a basic income were introduced, potentially leaving some vulnerable individuals worse off. As well, some critics suggest that, rather than a basic income, governments should increase expenditures on social services such as Pharmacare, dental coverage, childcare, and housing

Key facts

• "Basic income" generally refers to programming that provides recipients with guaranteed incomes sufficient to meet basic needs, with few conditions and no requirements to have or seek employment
• In Canada, income support is an area of shared jurisdiction and provincial and territorial governments are responsible for key income support programs such as social assistance
• At the federal level, the Government of Canada already has programs with features of a partial basic income, such as the Canada Child Benefit for families with children, and the Old Age Security pension and the Guaranteed Income Supplement for seniors
• Employment and Social Development Canada (ESDC) monitors basic income research and reports, as well as the outcomes of basic income pilots in Canada and internationally

Key messages

• It is important to recognize that provincial and territorial governments have an important role in decisions about the design and delivery of income support programs in Canada
• The Government of Canada has programs with features of a partial basic income, such as the Canada Child Benefit for families with children, and the Old Age Security pension and the Guaranteed Income Supplement for seniors
• The Government of Canada continues to monitor research around basic income. If a provincial or territorial government decides to proceed with a basic income pilot, the Government of Canada would be pleased to provide support by potentially sharing federal-level administrative, survey, and tax data, that could support program design and evaluation
  • If pressed on whether the government is considering introducing a basic income given the success of temporary emergency and recovery income supports provided in response to the pandemic:
    • Programs such as the Canadian Emergency Response Benefit (CERB) were introduced on a short-term basis to provide support to Canadians who were unable to work and experienced a sudden loss of income because of the pandemic
    • The emergency and recovery programs provided by the government were designed to provide swift and temporary support to those who qualified but were not designed to serve as a basic income
    • The Government will continue to monitor research and analysis on basic income and will continue to explore potential shorter and longer-term policy responses to address the needs of Canadians
  • If pressed on whether the government is planning to work with provinces or territories, such as PEI, to support a basic income pilot:
    • The Government of Canada recognizes the importance of working with provincial and territorial counterparts to find solutions to common challenges
    • In response to a request from PEI's Minister of Social Development, the Honourable Barb Ramsay, proposing a joint Canada-PEI working group to demonstrate and assess the expected impacts of introducing a basic income across PEI, Minister Sudds expressed the federal government's willingness to explore the creation of a working group composed of department officials with the intention of exchanging federal-level administrative data in support of PEI's work to evaluate a GBI

Issue

How does the Age Well at Home (AWAH) initiative help seniors stay at home longer?

Background

• The initiative is a federal grants and contributions initiative that advances the Government commitment to assist organizations to provide practical supports to help seniors age in place. The initiative pilots new approaches and supports existing projects led by seniors-serving organizations through two funding streams:
  • The In-Home Support Pilot Projects stream funds local projects that are testing the extent to which volunteers can be mobilized to provide in-home practical supports (such as, help with meal preparation, light housekeeping, yard work or transportation) to low-income and otherwise vulnerable seniors and helping seniors navigate and access eligible services provided by other local organizations; and
  • The Scaling Up for Seniors stream funds regional or national projects that are expanding services that have already demonstrated results in helping seniors age at home
• The Government of Canada has committed $90 million to the initiative, with funding ending in fiscal year 2025 to 2026.
• Seniors-serving organizations had the opportunity to apply to two competitive funding processes, one for each stream, in June 2022.
• The initiative will complement provinces and territories' efforts to help seniors by mobilizing seniors-serving organizations and volunteers. Provinces and territories spend most of their home and continuing care dollars on home health and personal care. As part of personal care, they are able to provide limited assistance with meal preparation and light housework. Very few involve volunteers in providing these services. A few jurisdictions provide a limited range of other practical supports such as running errands or yard work. Income-adjusted user fees often apply.

Key facts

• The concentration of COVID-19 cases and deaths in long-term care homes in many communities across the country has intensified Canadians' desire to age at home. A survey conducted in June 2020 found that about 70% of Canadian respondents aged 65 and older have changed their opinions about whether they would arrange for themselves or a loved one to enter long-term care. Almost 100% of those surveyed report wanting to support themselves to live safely and independently in their own home as long as possible. (Survey by National Institute on Aging and the Canadian Medical Association.)
• There was significant interest for the funding processes, with a combined 518 applications received, representing a total funding request of more than $329 million. There were 128 applications received under the Scaling Up for Seniors stream ($114.41 million) and 390 applications received under the In-Home Support Pilot Projects stream ($214.68 million).
• To this date, 21 Scaling Up projects ($22.1M) and 71 In-Home Support Pilot Projects ($39.6M) have started. Scaling Up funding announcements have been made in Alberta ($1.6M) and Ontario ($13.9M), and an announcement has been made for In-Home Supports Pilot Projects across Canada ($39.6M).
• A number of funding agreements for Quebec-based projects are underway and are anticipated to be finalized in summer 2024.

Key messages

• Canadian seniors want to stay in their own homes and communities as long as possible, but many do not have all the supports they need in order to live independently. This is why the Government of Canada is investing a total of $90 million for the initiative, until fiscal year 2025 to 2026.
• The initiative provides funding to seniors-serving organizations for local, regional and national projects which will allow for the discovery of new approaches and harvesting lessons learned:
  • Projects funded under the In-Home Support Pilot Projects stream test the extent to which volunteers can be mobilized to provide local practical supports such as meals, housekeeping, and yard work to help low-income and otherwise vulnerable seniors age at home, and help seniors navigate and access eligible services provided by other local organizations
  • Projects funded under the Scaling-up for Seniors stream expand services that have already demonstrated positive results in helping seniors age at home
• We are looking forward to sharing learnings from the AWAH projects as they unfold.

Issue

Strengthening Canada's approach to the mistreatment of older persons.

Background

• The mistreatment of older persons (also known as elder abuse) remains an often hidden but serious social problem that affects the lives of hundreds of thousands of seniors in Canada. It includes events of physical, psychological, material or financial and sexual mistreatment that occur within relationships where there is an expectation of trust and can be expressed in the form of violence (act, word or attitude) or neglect (lack of appropriate action)
• The National Seniors Council has supported the Government in its efforts to address elder abuse. To advise Ministers on measures to address financial crimes and harms against seniors, the Council hosted an expert round table and town hall in March 2019. The Council concluded their work on this topic with the release of a ‘what we heard report' summarizing the discussions, which was published on the Government of Canada website in August 2019. In July 2021, the Council supported the Minister of Seniors by co-moderating a series of regional roundtables soliciting input from stakeholders for the development of a federal definition of senior abuse
• In October 2023, the Government published the federal policy definition of mistreatment of older persons. The definition will help raise awareness of the mistreatment of older persons, provide a common understanding of the issue, and help inform Government of Canada programming and policies aimed at addressing the mistreatment of older persons. However, the federal policy definition of mistreatment of older persons is not a legal definition
• In October 2022, the Government published a report on Enhancement of Canadian Data on the Abuse of Older Persons: An Exploratory Study. This public opinion research was conducted by subject matter expert Professor Marie Beaulieu, Research Chair on Mistreatment of Older Adults at the Université de Sherbrooke. This report highlights the challenges of senior abuse reporting and data collection across the country and identifies pragmatic approaches to address them
• In November 2023, the Government published a research study entitled, "A case study of the Edmonton Police Service's response to senior abuse". The case study included an analysis of 691 senior abuse incidents reported to the Edmonton Police Service's from 2015 to 2021, as well as findings from semi-structured group interviews with key Edmonton Police Service's stakeholders
• The Government is also addressing mistreatment of older persons evidence gaps from a public health perspective through support for national data collection and analysis that has improved understanding of prevalence rates, risks and protective factors in Canada; and through research currently underway that will build knowledge of intimate partner violence against older women with a view to informing federal policy making and research the areas of gender-based violence and mistreatment of older persons
• As part of its priorities for 2022-2025, the Federal, Provincial and Territorial (FPT) Forum of Ministers Responsible for Seniors is analyzing the impact of the COVID-19 pandemic on efforts to identify and address senior abuse, with the objective of informing FPT programming and policies. Its first report, "Preventing and Responding to the Mistreatment of Older Adults: Gaps and Challenges Exposed During the Pandemic", was published on December 14^th, 2023

Key facts

• Since it was created in 2007, the pan-Canadian stream of the New Horizons for Seniors Program (NHSP) has supported 149 collaborative projects aiming to increase the social inclusion of seniors, representing an investment of more than $102 million. By increasing seniors' social inclusion, all pan-Canadian projects help reduce the risk of elder abuse. In addition, the NHSP's community-based funding stream continues to expand elder abuse awareness through its annual funding of one-year community-based projects for an amount of up to $25,000
• Through its Preventing and Addressing Family Violence - The Health Perspective Investment, the Public Health Agency of Canada (PHAC) is providing funding to test approaches aimed at preventing and reducing the health impacts of family violence, including child maltreatment, intimate partner violence and the mistreatment of older persons. PHAC is investing $2 million over 36 months to support three projects aimed at adapting, delivering and testing community-based interventions to prevent and address mistreatment of older persons

Key messages

• We recognize that the mistreatment of older persons, also known as elder abuse, is a serious issue affecting many older people in Canada, and even more so in the context of the COVID-19 pandemic, which has contributed to further isolating seniors
• On October 11, 2023, the Government released the federal policy definition of mistreatment of older persons. The federal policy definition will help raise awareness of the mistreatment of older persons, provide a common understanding, and help inform Government programs and policies aimed at addressing the mistreatment of older persons. The federal policy definition is not a legal definition
• I am committed to continue working with my colleague, the Minister of Justice and Attorney General of Canada, to strengthen Canada's approach to the mistreatment of older persons

Issue

Service Canada will manage the application process for the Canadian Dental Care Plan.

Key facts

• From December 2023 to March 2024, 4,000,146 letters were mailed to Canadians aged 70 and over, as planned, bringing the scheduled mailouts of invitations to apply to a close. These letters were sent to those that were partially qualified based on CRA data. [Note: We forecasted that approximately 67% of these individuals would be uninsured and 40 precent of those people would apply within the first months of receiving the letter.]
• The department has received over 1.6M completed attestations and 98.4 % of applicants have been deemed eligible.
• 77.36% of the seniors who have applied completed their application using the automated IVR system, requiring no assistance from a call agent to complete their application.
• To-date the specialized call centre has responded to over 400K inquiries about the CDCP with negligible wait times.
• Over 100K citizens have come to our Service Canada Centres to enquire about the CDCP. This represents 2.6 % of SCC visits.
• To-date the department has liaised with over 12,304 organizations and held about 908 events to raise awareness and assist vulnerable populations.

Response

• Service Canada is proud to work with Health Canada to help deliver the Canadian Dental Care Plan.
• Service Canada's expertise and experience in delivering benefits and services to millions of Canadians each year positions us to deliver this important priority.
• Our teams of experts are working together to ensure the CDCP provides an integrated and seamless experience for all applicants.
• Our priority is to minimize barriers to access while maintaining security and integrity of personal information.
• From December 2023 to March 2024, over 4M letters were mailed to Canadians aged 70 and over, as planned, inviting them to apply for the CDCP by automated phone system. As of March 31st, over 1.6M seniors have registered for the Plan, and the first groups of CDCP clients will be eligible to visit an oral health provider as early as May 2024.
• In May, Service Canada is launching an online application system for seniors aged 65 and over. This digital service model will extend to persons with disabilities and children in June.
• A reminder that seniors aged 70 and over who received invitation letters with a personalized application code but didn't apply before April 30, can apply using the online application, provided they have filed their 2023 tax return.
• The eligibility for seniors who received letters inviting them to apply with personal application codes was based on their 2022 tax returns. These codes expire on April 30.

If pressed (Service delivery)

The delivery of the Canadian Dental Care Plan is complex. Service Canada is working collaboratively with Health Canada, leading the initiative, as well as the Canada Revenue Agency to ensure a service delivery system that is user friendly, safe, and responsive.

If pressed (Full implementation)

• Health Canada as the lead for the CDCP has put forward a staggered implementation plan the will ensure a successful roll out of the CDCP.
• Staggered implementation has been a key success factor in the implementation of the CDCP thus far.
• Every effort will be made to ensure we continue to meet citizen expectations as we onboard additional cohorts with the online application system.

Background

• Budget 2023 announced $13.0 billion over five years, starting in 2023-2024, and $4.4 billion to implement the Canadian Dental Care Plan (CDCP).
• The CDCP is led by Health Canada and aims to increase dental care coverage by removing cost barriers to dental care to the greatest extent possible, with a focus on diagnostic, preventative, and restorative services.
• It is estimated that up to nine million individuals may be eligible for the plan once fully implemented.
• On behalf of Health Canada, Service Canada will:

• Respond to Canadians' enquiries and provide support in applying for the plan.
• Accept, manage, and process applications; and
• Determine eligibility and communicate enrolment information to applicants (beneficiaries) and to a Third-Party Administrator, Sun Life.
• Sun Life will deliver the actual dental benefit to Canadians.

Citations / Key quotes

NIL

Issue

Senior living in poverty.

Key facts

• The latest data from the Canadian Income Survey shows that there was an increase in the poverty rate for seniors in 2022 as measured by Canada's Official Poverty Line (the Market Basket Measure). The poverty rate for seniors decreased from 7.1% in 2015 to 3.1% in 2020. The rate has since increased to 6.0% in 2022, reflecting the onset of higher costs of living since 2021. There were approximately 36,000 more seniors living in poverty in 2022 compared to 2015
• The increase in poverty rates between 2021 and 2022 reflects the end of pandemic-related income supports made available throughout 2021, as well as the significant increase in inflation experienced in 2022, which contributed directly to increased costs of living across Canada. In 2022, the poverty rate for senior women (6.3%) was higher than for senior men (5.6%)
• Single seniors continue to have higher poverty rates than those living in families. Between 2021 and 2022, the poverty rate for single seniors increased from 13.0% to 13.8%, while the poverty rate for seniors living in families rose from 2.4% to 3.3%
• In 2022, seniors with a disability (7.1%) had a higher poverty rate than the overall senior population (6.0%) in 2022
• In 2021, the latest available data, seniors from vulnerable groups such as Indigenous seniors living off reserve (8.0%), immigrant seniors (6.9%) and visible minority seniors (7.8%) had relatively higher poverty rates than the overall senior population (5.6%)
• According to the 2022 Canadian Income Survey released on April 26, 2024, 11.7% of Canadian seniors experienced food insecurity in 2022 (measured as marginal, moderate or severe food insecurity) - up from 10.3% in 2021 and 8.7% in 2020. This rate does not include the population living in the territories or on reserves
• According to Food Banks Canada, a national charitable organization representing the food bank community across Canada, there were nearly 2 million visits to food banks in March 2023, an all-time high. This was 32% higher than in March 2022 and 79% higher than in March 2019. About 154,900 or 8.0% of food bank visits were by seniors in March 2023, up from about 74,000 or 6.8% in March 2019

Response

• We are committed to improving the quality of life for seniors now and for generations to come
• The Government has made significant investments to reduce poverty among seniors, including increasing the GIS for the lowest income single seniors, and increasing the OAS pension for seniors 75 and older. Retirement benefits are also indexed quarterly to help keep up with the rising cost of living
• And our poverty reduction efforts are working. The poverty rate among seniors decreased from 7.1% in 2015 to 6% in 2022

If pressed on affordability and food insecurity among seniors

• Our Government recognizes that food insecurity and food prices have been on the rise, putting pressure on household finances, including those of vulnerable seniors, and making it more difficult for many families to consistently afford nutritious food
• Budget 2024 will continue to invest in Canadians to lower everyday costs and build an economy that helps every generation get ahead
• Budget 2024 announced new federal actions through Canada's Housing Plan, including providing incentives across government, private and non-profit sector partners, to build 3.87 million homes by 2031, which will make it easier to own and rent homes
• The Government will continue the implementation of measures which strengthen competition in the grocery sector, monitor grocers' work to stabilize prices and tackle shrinkflation (i.e. reducing size/quantity of a product without proportionately reducing its price), to help bring down the cost of groceries

Background

• The Government has made significant investments and adopted measures to reduce poverty among seniors
• The Government restored the age of eligibility from 67 to 65 for both the Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS), which helped 100,000 seniors aged 65 and 66 to avoid plunging into poverty
• To help seniors who are living in poverty or are most at risk of living in poverty, the Government enhanced the GIS in 2016 by increasing the amount received by up to $947 annually for the most vulnerable single seniors and helping improve the financial security of 900,000 seniors
• In July 2022, the Government increased the OAS pension by 10 percent for seniors 75 years and older, to provide more than $800 in new support to full pensioners over the first year, and increased benefits for more than 3 million seniors
• To ensure that COVID-19 emergency response benefits did not negatively impact GIS or Allowance payment amounts, the Government of Canada provided, as part of the December 2021 Economic and Fiscal Update, $742.4 million in one-time payments to GIS and Allowance recipients who received the Canada Emergency Response Benefit (CERB) or the Canada Recovery Benefit (CRB) in 2020. These payments were issued automatically in April 2022 without the need for an application. The Government also introduced amendments to the Old Age Security Act to exempt any amount of CERB, CRB, Canada Recovery Sickness Benefit, Canada Recovery Caregiving Benefit and Canada Worker Lockdown Benefit received in 2021 or later from the calculation of income for the GIS and Allowances in 2021

Food Banks Canada

• Food Banks Canada is a national charitable organization representing the food bank community across Canada, supporting a network of 10 Provincial Associations and over 4,700 hunger relief organizations in Canada
• Food Banks Canada's annual HungerCount report documents food bank use in Canada, using a cross-sectional census survey of most food bank agencies, organizations and programs within and outside of the Food Banks Canada network
• Food Banks Canada's annual Poverty Report Card contains a comprehensive assessment of the state of poverty and food insecurity in Canada, analyses of federal, provinicial and terrirotial poverty reduction efforts, and policy recommendations
• Budget 2024 will continue to support Canadians and build an economy that helps every generation get ahead by investing in housing and lowering everyday costs

• Canada's Housing Plan includes incentives across government, private and non-profit sector partners, to build 3.87 million homes by 2031, including 2 million new homes, on top of 1.87 million homes already expected to be built in 2031
• The Government announced new measures to protect renters' rights, including launching a new $15 million Tenant Protection Fund
• The Government will invest $1.5 billion over five years in the new National Pharmacare Plan. This first phase will ensure the effective roll-out of pharmacare, while providing immediate support for the health care needs of women and covering lifesaving diabetes medication
• The Government will continue to strengthen competition in the grocery sector, tackle shrinkflation (i.e. reducing size/quantity of a product without proportionately reducing its price), and help bring down the cost of groceries by giving more power to the Competition Bureau to crack down on unfair practices

Issue

How would Private Member's Bill C-319 amend the Old Age Security Act (OAS Act)?

Background

Private Member Bill C-319 contains amendments to the OAS Act that would make two specific changes:

1. increase the amount of the full monthly Old Age Security (OAS) pension for seniors aged 65 to 74 by 10%, effective January 2023
2. increase the amount of the full Guaranteed Income Supplement (GIS) Earnings Exemption from $5,000 to $6,500 and extend the partial earnings exemption from the next $10,000 of qualifying work income to next $13,000 of qualifying work income, effective July 2023

Key facts

In 2022-23, $69.4 billion was paid in OAS benefits to 7.1 million beneficiaries:

• $52.7 billion in OAS pension to 7.1 million seniors
• $16.1 billion in GIS to 2.4 million low-income OAS pensioners
• $575 million in Allowances to 72,800 near-seniors

The Chief Actuary estimates that Bill C-319's proposed increase to the OAS pension would provide higher benefits for 4.1 million OAS pensioners aged 65 to 74 in 2023‑24, the first full year of implementation, at a cost of $3.24 billion. These costs would increase over time with population aging and benefit indexation.

Bill C-319's proposed increase to the GIS Earnings Exemption would be available to 2.8 million GIS and Allowance beneficiaries (including 53,000 new beneficiaries) in 2024-25, the first full year of implementation, at a cost of $235 million. These costs would increase over time with population aging and benefit indexation.

Key messages

The Old Age Security program has been supporting Canada's seniors for over 70 years and will continue to be there for Canadians in the years to come.

Old Age Security benefits are an important part of the retirement income of Canadians, particularly lower-income seniors.

Since 2016, we have worked tirelessly to support seniors, from restoring the age of eligibility for Old Age Security benefits to 65 years from 67 years, to increasing the maximum Guaranteed Income Supplement benefit for single seniors by 10%, which provided up to almost $1,150 in additional benefits in 2023, indexed to inflation every quarter, to enhancing the Guaranteed Income Supplement Earnings Exemption to help low-income seniors who work, and most recently, increasing the Old Age Security pension by 10% for seniors aged 75 and over.

We will continue to support current and future generations of seniors to ensure all Canadians have the secure and dignified retirement they deserve.

3.l. The Care Economy

Issue

How is the Government supporting Canada's Care Economy?

Background

• Care is a pressing issue within Canada, with important consequences for economic issues, societal inequalities, and the well-being of Canadians. Although issues of care have existed for decades and result from long-standing structural factors that include population aging and labour market dynamics, the COVID-19 pandemic intensified these issues and shone a light on the importance of the Care Economy for the well-being and economic prosperity of people living in Canada^{Footnote 7}
• In Canada, the “Care Economy” is the sector of the broader economy comprising the provision of paid and unpaid care work.^{Footnote 8} This paid and unpaid care work consists of the activities and responsibilities involved in meeting the physical, psychological, and emotional needs of care-dependent groups.^{Footnote 9} These groups include children requiring care due to their young age, adults with long-term conditions or disabilities, and seniors.^{Footnote 10} The demand for paid and unpaid care is expected to increase, and the pressure on health, home care, community and supportive care services, and long-term care services will likely intensify
• The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA Committee) conducted a study on labour shortages and working conditions in the Canadian economy, including the care economy. The HUMA Committee’s February 2023 report noted that while the effects of labour shortages are being felt across the Canadian economy, impacts have been particularly acute in the Care Economy.^{Footnote 11} The HUMA Committee made a number of recommendations, including, for example, upskilling capacity for the Care Economy and health care workers, reviewing compensation and benefits for care economy workers and considering establishing a national Care Economy Commission^{Footnote 12}
• The Care Economy sectors' activities fall almost entirely under provincial-territorial (PT) jurisdiction. Under the Constitution, the roles and responsibilities in social programs are primarily within PT jurisdiction, and the federal government cannot set standards that amount to regulating a social service under PT jurisdiction
• The Government has taken concrete actions to support the care economy. For example:
  • Budget 2024 proposes to establish a Sectoral Table on the Care Economy that will consult and provide recommendations to the federal government on concrete actions to better support the care economy, including with regard to early learning and childcare, and to launch consultations on the development of a National Caregiving Strategy
  • Budget 2023 announced close to $200 billion over ten years to support the Working Together to Improve Health Care for Canadians Plan. This includes $46.2 billion in support to provinces and territories through the Canada Health Transfer, tailored bilateral agreements, personal support worker wage support, and a ten-year commitment on the Territorial Health Investment Fund^{Footnote 13}
  • In October 2022, the federal government announced that the National Seniors Council would serve as an expert panel to examine measures, including a potential aging at home benefit, to further support Canadians who wish to age at home^{Footnote 14}
  • In November 2022, as part of efforts to address the health workforce challenges impacting the country, the federal government established a Coalition for Action for Health Workers^{Footnote 15}
  • Under Budget 2021, the Government of Canada made a transformative investment of more than $27 billion over five years to build a Canada-wide Early Learning and Child Care (ELCC) system with PTs^{Footnote 16}
  • Each year, the Government of Canada provides approximately $3 billion in funding for individuals and employers to obtain skills training and employment supports through the Labour market agreements with provinces and territories. In 2021-2022, 500,000 women received training to transition into predominantly female occupations such as Early Childhood Educators, dental assistants and personal support workers. More than 10,000 trained were from health care related sectors
  • Budget 2021 committed $90 million for the Age Well at Home initiative, which is supporting projects until 2025-2026 led by seniors-serving organizations from the non-profit and charitable sector that mobilize volunteers to provide practical supports to low-income and otherwise vulnerable seniors to help them age at home. Projects are also helping vulnerable seniors navigate and access eligible services and expanding the delivery of services that demonstrated positive results in helping seniors age in place
  • The long-standing New Horizons for Seniors Program provides grants and contributions funding to seniors-serving organizations leading projects that aim to improve the social inclusion and well-being of seniors, including seniors that are caregivers to other seniors
  • In addition to traditional immigration streams, the Government of Canada has introduced a variety of streams aimed at attracting talent from around the world to drive economic growth and fill skills shortages, including in the Care Economy

Key facts

• The Care Economy is an emerging global issue, with the International Labour Organization (ILO) estimating that 2.3 billion people globally will need care as of 2030^{Footnote 17}
• In 2022, one in two Canadians aged 15 or older reported providing either unpaid or paid care in the past 12 months for care-dependent adults or children, with 23% providing care for care-dependent adults (20% unpaid, 2% paid and 1% paid and unpaid) and 31% providing care for children under the age of 15 (28% unpaid, 2% paid and less than 1% paid and unpaid).^{Footnote 18} In addition, the majority of paid and unpaid care work is done by women, often migrant and racialized women.^{Footnote 19} Women accounted for three quarters (75%) of Canada’s paid care workers in 2016, approximately 21% of women working in paid care occupations were from racialized groups and 24% were immigrants.^{Footnote 20} In addition, women represented the majority (54%) of unpaid caregivers in Canada in 2018^{Footnote 21}
• Statistics Canada has also reported that job vacancies in the health care and social assistance sector reached 138,100 in the fourth quarter of 2023, which represents an increase of about 100% compared to the amount in the fourth quarter of 2019 (68,500).^{Footnote 22} In 2023, the occupations in the health care and social assistance sector with the highest vacancy rates were licensed practical nurses (18.5%), respiratory therapists, clinical perfusionists and cardiopulmonary technologists (9.8%), home support workers, housekeepers and related occupations (9.7%) and allied primary health practitioners (7.9%).^{Footnote 23} In the ELCC sector, the latest internal estimates suggest as many as 77,000 early childhood educators will need to join the workforce by the end of 2025-26 to ensure that the spaces that currently exist, and new spaces created through the Canada-wide ELCC system by March 2026, are fully supported and operationalized^{Footnote 24}
• Population aging in Canada is also contributing to creating tight labour markets in many sectors, including in the Care Economy sector. Between 2012 and 2018, the average age of unpaid caregivers in Canada increased by 4 years from 45 to 49 years of age.^{Footnote 25} This increase was more pronounced among women, who saw an increase from 45 to 50 years of age, whereas men saw an increase from 45 to 48 years of age.^{Footnote 26} As workers also age, there is a growing shortage of qualified caregiving personnel in the sectors of child care and care for dependent adults, including seniors
• Unpaid caregiving is also associated with negative outcomes for caregivers’ well-being as well as opportunity costs (loss of potential monetary gain) for caregivers. In 2018, unpaid care for Canadians (excluding minor children) with long-term conditions, disabilities, or problems related to aging was valued at $97.1 billion.^{Footnote 27} In addition, in 2015, the value of unpaid childcare in Canada was valued at $284 billion, which reflected roughly 15% of Canada’s GDP that year.^{Footnote 28} In addition, in 2022, over half (56%) of all unpaid caregivers reported feeling tired because of their caregiving responsibilities, while 44% felt worried or anxious during the past 12 months. In addition, 37% felt overwhelmed, and 3 in 10 reported that their sleep was disturbed^{Footnote 30}
• Employment Insurance (EI) offers three types of caregiving benefits to eligible claimants that need to temporarily step away from work to care for or support a critically ill or injured person or someone needing end-of-life care. These benefits include:
  • The EI Compassionate care benefit provides up to 26 weeks of income support to a worker providing end-of-life care to a family member that has a serious medical condition and a significant risk of death
  • The EI Family caregiver benefit for children provides up to 35 weeks of income support to a worker providing care to a critically ill or injured family member under the age of 18
  • The EI Family caregiver benefit for adults provides up to 15 weeks of income support to a worker providing care to a critically ill or injured adult family member
• As reported in the 2021-2022 EI Monitoring and Assessment Reports, a total of 6,775 claims were established for the Compassionate care benefit, 5,634 claims for the Family caregiver benefit for children and 12,541 claims for the Family caregiver benefits for adults. Women established a majority of the claims with 70.6%, 75.9% and 67.3% respectively^{Footnote 31}
• EI caregiving benefits are paid at 55% of the applicant's average insurable earnings, up to a maximum weekly benefit amount of $668 per week in 2024. The benefits provide flexibility to respond to a diversity of family situations. For example, multiple eligible family members can share a benefit, at the same time or one after another, within a period of up to 52 weeks to care for the same critically ill or injured family member. Moreover, a broad definition of eligible family member has been adopted

Issue

Why does Employment and Social Development Canada (ESDC) require additional authorities in the Supplementary Estimates (C) for fiscal year ending March 31, 2024?

Key facts

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

ESDC is requesting a total of $1.5 billion in additional authorities through the Supplementary Estimates (C).

• An increase of $55.1 million in Vote 1 Operating expenditures
• An increase of $4.4 million in Vote 5 Grants and Contributions
• An increase of $215.5 million in Vote 10 Debt write-off
• A decrease of $28.0 million in Statutory items
• An increase of $1,260.3 million in non-budgetary Statutory items

Response

ESDC is requesting adjustments for:

Summary of Total Budgetary Authorities (in dollars)

• Budgetary Authorities
  • Vote 1 - Operating expenditures
    • Transfers; -1,214,619
    • Adjustments; 56,340,750
    • Total; 55,126,131
  • Vote 5 - Grants and Contributions
    • Transfers; -7,786,881
    • Adjustments; 12,206,836
    • Total; 4,419,955
  • Vote 10 - Debt Write-Off
    • Transfers; 0
    • Adjustments; 215,518,566
    • Total; 215,518,566
• Total Voted Appropriations
  • Transfers; -9,001,500
  • Adjustments; 284,066,152
  • Total; 275,064,652
• Statutory
  • Transfers; 0
  • Adjustments; -28,034,603
  • Total; -28,034,603
• Total Budgetary Authorities
  • Transfers; -9,001,500
  • Adjustments; 256,031,549
  • Total; 247,030,049

Background

Key quotes

Nil

Issue

What are the financial highlights for the Department of Employment and Social Development's Main Estimates for the fiscal year ending March 31, 2025?

Key facts

In Part II of Main Estimates for the fiscal year ending March 31, 2025, the Department of Employment and Social Development presents planned budgetary expenditures of $98.7 billion, which is over $4.5 billion higher than the planned budgetary expenditures of $94.2 billion for the fiscal year ending March 31, 2024.

Response

• Planned budgetary expenditures for the fiscal year ending March 31, 2025, totalling $98.7 billion for the Department of Employment and Social Development, are showing a net increase of more than $4.5 billion (approximately 5%) over the Main Estimates of $94.2 billion for the fiscal year ending March 31, 2024.
• The increase is primarily attributable to statutory items. The most significant item being an increase of $4.5 billion to the Old Age Security Pension, the Guaranteed Income Supplement and Allowance forecasts resulting from an expected increased number of beneficiaries due to the aging population and expected increases to average monthly amounts paid mainly due to the indexation of benefits.

Background

Approximately $98,732.2 million in total budgetary funding is anticipated through the Main Estimates ($11,482.3 million in voted appropriations and $87,249.9 million in statutory spending). This excludes funding anticipated through Budget 2024. Over 88% of planned budgetary expenditures will directly benefit Canadians through statutory transfer payment programs, including the Old Age Security (OAS) program. Please note Employment Insurance and Canada Pension Plan benefits and related administrative costs are not included in the Estimates but are reflected in the Departmental Plan.

Overall, the Department of Employment and Social Development's total budgetary authorities for the year ending March 31, 2025 show a net increase of $4,579.9 million, or approximately 4.9%, from the previous year's total Main Estimates of $94,152.3 million.

This increase is primarily attributable to statutory items:

• An increase of $4,538.0 million to the OAS pension, Guaranteed Income Supplement (GIS) and Allowances, mainly explained by an expected increased number of OAS pensioners and GIS recipients due to the aging population, and expected increases to average monthly amounts paid, resulting mainly from the indexation of benefits.
• An increase of $187.6 million for service delivery to the public on behalf of other government departments under the Department of Employment and Social Development Act, which is mainly due to a new 2‑year agreement with Health Canada for the Canadian Dental Care Plan.
• An increase of $40.0 million to Canada Education Savings Grants and to Canada Learning Bonds, mainly due to payments and the number of beneficiaries returning to pre-pandemic levels in 2024.
• These increases are offset by the following decreases:
  • A decrease of $324.3 million to the Canada Student Financial Assistance Program and Canada Apprentice Loans, mainly due to decreased expected expenses for the Repayment Assistance Plan and alternative payments to non-participating provinces and territories due to the permanent elimination of interests on Canada Student Loans announced in the Fall Economic Statement 2022 and Budget 2023.
  • A decrease of $168.4 million to Canada Disability Savings Grants and Bonds, mainly due to a reduction in average contributions from beneficiaries as well as a larger proportion of new Registered Disability Savings Plans being opened by beneficiaries with higher income, and therefore eligible for lower grant amounts and/or ineligible for bonds.
  • A decrease of $9.7 million for other items.

Voted grants and contributions (Vote 5) are expected to reach $10,185.6 million by March 31, 2025, an increase of $293.3 million from the Main Estimates for the year ending March 31, 2024 mainly attributable to an increase to payments to provinces and territories for Early Learning and Child Care, partly offset by a decrease in funding related to the Sectoral Workforce Solutions Program, the Apprenticeship Service, Skills for Success, the Youth Employment and Skills Strategy and the Social Finance Fund.

In addition, the Department plans to spend $1,296.7 million in net operating expenditures (Vote 1) in the year ending March 31, 2025, representing an increase of $23.4 million from previous year's total Main Estimates of $1,273.3 million. The increase is mainly related to compensation adjustments for new collective agreements.

Figures in the 2024‑25 Main Estimates include a reduction of $40.5 million for the Refocusing Government Spending exercise announced in the Budget 2023.

Regarding non-budgetary loans, there is a net increase in authorities of $1,048.4 million from the Main Estimates for the year ending March 31, 2024, mainly due increased Canada Student Loans disbursements related to the temporary measure announced in the Budget 2023, which proposed to raise the Canada Student Loan limit from $210 to $300 per week for the 2023‑24 academic year, and to lower Canada Student Loans repayments, mainly due to the economic situation and the permanent elimination of interests accrued, which can allow some borrowers to elect to pay off other debts with higher interest rates.

Key quotes

Nil

Additional information [text not in original document]

Descriptive text: Figure 3

• ESDC has 317 Service Canada Centres
• ESDC has 247 Scheduled Outreach sites
• ESDC has 19 Service Canada centres - Passport Services
• ESDC has 15 Service Delivery Partner sites

Service Canada's in-person service network as of December 11, 2023.

• Grants and Contributions = $24.3 million
• Travel and Professional Services = $8.0 million
• Operating expenses = $8.2 million