Government Funding for Adjustment Services

Labour Market Partnerships

Unions can seek both federal and provincial funding for adjustment services. Federally,
Labour Market Partnerships is the main source of funding for adjustment activity (EI Part II, Active Measures). Note: As of January 1, 2007, Active Measures will be transferred to the Ontario government, under the Canada-Ontario Labour Market Development Agreement.

The federal government also provides Employment Assistance Services funding for eligible organizations to provide employment services to unemployed workers, including career counseling and coordination of Active Measures for individuals (as described above).

Unions seeking federal funding to provide adjustment services find the process slow and onerous. Project proposals, cash flow forecasts and budget notes are complicated.  Therefore, we recommend that you seek union staff expertise when trying to access federal adjustment funding.

Ontario Adjustment Advisory Program

The Ontario Adjustment Advisory Program (AAP) provides advice and funding for displaced worker adjustment on a workplace, community, or sectoral basis. Government funding can help pay for:

• the establishment of an adjustment committee
• peer-led “action centres” at the affected workplace or in the community
• individual and group needs assessment
• vocational and educational counseling
• job search assistance
• social and emotional supports

The AAP advisor provides both technical support and advice and can help broker other government programs and services. Unions seeking provincial funding find the process somewhat uneven in different parts of the province. Union staff expertise is often needed to successfully access provincial adjustment funding.

Seeking Government Funding: First Steps

Government dollars are often negotiated based on a formula related to the employer’s financial contribution. Within one global adjustment budget, the federal and provincial contributions have traditionally been split down the middle, for example 40% from the employer; 30% from the federal level; 30% from the Ontario AAP. If there is no employer contribution (due to bankruptcy or receivership), it is still possible and even more important to get government funding.

• government funding contracts will not fund any activities that take place before the contract is signed
• employer adjustment money spent before a contract is signed means that there is less available to leverage government funding
• negotiating contracts takes time, so you may decide to start some adjustment activity in the meantime (for example, survey of needs of affected members)
• approach the funding process like negotiations: be clear on options and what you want
• involve your union rep in the first few meetings with the government funders
• your local Service Canada Centre may not be familiar with Labour Market Partnerships funding. If you get a very slow response, you may want to contact a higher level within Service Canada.
• the adjustment committee is not a legal entity; the employer or union will have to “hold the contract” (be the contract sponsor, or proponent)

First Meeting

The government representatives will present information on:

• how their programs work
• their role
• what are eligible costs
• how money is administered
• the role of the adjustment committee and chair

The union and employer should be prepared to say where they’re at. Otherwise, at the first meeting, it is good to just listen, without agreeing or committing to anything. For example, the AAP will usually encourage retaining an outside committee chair. This may be useful, but the adjustment committee needs to decide. They may or may not need or want to use the limited adjustment budget for the services of an outside chair. As well, the AAP usually suggests an Action Centre run by part-time peer counselors. Depending on layoff size, many unions have also found useful a full-time paid coordinator (outside or peer).