Nunavut close to deal on job training dollars
Territory commits to agreement in principle with Ottawa
Miranda Scotland
Northern News Services
Published Monday, March 10, 2014
IQALUIT
After months of back and forth discussions with the federal Employment Minister Jason Kenney, Nunavut has finally committed to an agreement in principle over the controversial Canada Job Grant.
John MacDonald, director of career development for the Department of Family Services, said the final agreement is a significant improvement on the prescriptive offer the federal government first brought to provinces and territories last year.
"It's been quite the evolution since last summer," he said. "We've had some wins in terms of where the new agreement is, which makes it, for us, something we can offer."
The program in its original form drew criticism from premiers across the country, leading the provinces and territories to band together in opposition.
The parties' main concern was they would be losing funds earmarked for training programs that cater to marginalized and vulnerable Canadians.
They also took issue with the fact territories and employers would be expected to each contribute $5,000 per person before the federal government would cough up its share.
There were questions on how Nunavut would cover the extra cost.
However, under the new agreement in principle, the federal government is committed to providing up to $10,000 per individual while employers will still be responsible for their share.
That said, businesses with fewer than 50 employees will get a break. They will be allowed to cover 15 per cent of the grant with cash or in-kind contributions, according to published reports.
The provinces and territories were also able to talk Kenney into diverting only 40 per cent of funds from the labour market agreement to the initiative, as opposed to 60 per cent.
The grant is expected to be phased in over four years.
Additionally, the territories were successful in convincing the federal government to allocate 20 per cent of grant funds to administration.
"There is an administrative burden to doing this on behalf of the federal government and also to evaluate them and say, 'Hey, is this working?'" noted MacDonald.
The Ontario government became the first province to sign on to the agreement in principle March 6.
Quebec, on the other hand, negotiated to keep its current model. Kenney defended his decision on the matter during a scrum March 4.
"I've said it from the beginning, what we want with the job grant is to increase the private sector investment in skills training," he told reporters.
"We want the training to lead to real jobs and we want more employers to get in the game. Effectively that's what the current Quebec model demonstrates.
"It's much closer to the European tripartite model of job training."
The territory will continue negotiations with the federal government to iron out the final details of the agreement before signing.
MacDonald said he wasn't sure how long the process would take.
There are still a few questions that need to be answered, he added.
Nonetheless, the territory is committed to making the grant work.
"From our perspective we're going to run that program, we are going to advertise it, we're going to do our due diligence to have this program accessible ...
"If it's going to lead to employment, then I guess we don't have much of a problem with it. That's what we're all looking for is people to have jobs and be able to support their families."
