The upcoming federal budget will see a doubling of funding for a union training program and the introduction of a refundable tax credit for personal support workers (PSWs). The government plans to enhance union-based apprenticeship training for Red Seal trades by increasing the federal Union Training and Innovation Program (UTIP) for three years.
The UTIP funding will be doubled from $25 million to $50 million annually, fulfilling a long-standing promise by the Liberal Party and a similar commitment made by Conservative Leader Pierre Poilievre. Secretary of State for Labour John Zerucelli stated, “Our new government is investing in Canadian workers, creating high-quality careers and getting things built faster.”
The new temporary tax credit for PSWs will enable eligible workers to claim a refund on their taxes equivalent to five percent of their eligible earnings, up to a maximum of $1,100 per year for five years. Details on eligibility criteria were not provided in the initial announcement.
John Zerucelli emphasized the importance of the tax credit, acknowledging that PSWs are among the lowest-paid healthcare workers. Minister of Jobs and Families Patty Hajdu confirmed that the PSW tax credit is supported by $1.5 billion over five years.
Veteran PSW Kelly Stephenson highlighted the financial struggles faced by healthcare workers like her, noting that many PSWs work multiple jobs and earn less than $25 per hour or $50,000 annually. Stephenson, a member of the Service Employees International Union (SEIU), shared stories of PSWs facing homelessness while still dedicated to caring for patients.
The funding for union training and the PSW tax credit are part of a series of budget measures announced by Zerucelli ahead of Prime Minister Mark Carney’s budget presentation on Nov. 4. Other measures include investing $97 million over five years to establish a fund for recognizing foreign credentials and implementing new restrictions on non-compete agreements in employment contracts for federally regulated businesses.
Prime Minister Carney has hinted at potential sacrifices in the upcoming budget, which is anticipated to feature a climate competitiveness strategy, a new immigration plan, and an international talent-attraction strategy. The Liberal government will require the support of at least one other party to pass the budget, as it is considered a confidence vote that could trigger a new election if unsuccessful.
Liberal House leader Steven MacKinnon revealed in an interview that the government currently lacks the necessary votes to pass the budget, emphasizing the need for collaboration with other parties.