The upcoming federal budget is set to double funding for a union training program and introduce 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.
Increasing UTIP from $25 million to $50 million annually has been a long-standing promise by the Liberal Party, with Conservative Leader Pierre Poilievre also committing to a similar pledge during the campaign. Secretary of State for Labour John Zerucelli stated, “Our new government is investing in Canadian workers, creating high-quality careers, and expediting construction projects.”
The new temporary tax credit for PSWs will enable eligible workers to claim a refund equal to five percent of their eligible earnings, up to $1,100 per year for five years. Details on eligibility criteria were not included in the program announcement on Monday.
Zerucelli emphasized, “PSWs are among the lowest-paid healthcare workers. This tax credit is a tangible way to demonstrate genuine respect for those who provide daily care to our loved ones.” Minister of Jobs and Families Patty Hajdu disclosed 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, noting that many PSWs have insufficient funds after paying for rent and groceries. The Service Employees International Union (SEIU) member mentioned instances where PSWs have become homeless but continue to care for patients.
The funding for union training and the new tax credit form part of a range of budget measures announced by Zerucelli, leading up to Prime Minister Mark Carney’s budget presentation on Nov. 4. Other measures include a $97 million investment over five years to establish a fund for recognizing foreign credentials and imposing new restrictions on non-compete clauses in employment contracts for federally regulated businesses.
Carney has hinted at potential sacrifices in the upcoming budget, which is anticipated to feature a climate competitiveness strategy, an immigration plan, and an international talent-attraction strategy. With the budget being a confidence vote, the Liberal government will require support from at least one other party to pass it, or else Canadians may face another election.
In an interview on Rosemary Barton Live, Liberal House leader Steven MacKinnon admitted that the government currently lacks the necessary votes to secure budget approval.