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Ottawa announces cash grants for apprentices in Red Seal program

Canada is on the precipice of a major shortage of skilled workers, and the federal government is trying to entice more people into the trades by announcing cash grants for apprentices, Finance Minister Jim Flaherty said Friday.

[ 2007-08-29 ]

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WHITBY -- Canada is on the precipice of a major shortage of skilled workers, and the federal government is trying to entice more people into the trades by announcing cash grants for apprentices, Finance Minister Jim Flaherty said Friday.

Apprentices who have finished the first or second year of the Red Seal trade program are eligible to receive an annual grant of $1,000 to help ease the financial burden of training and buying tools, Flaherty announced.

"We are facing a shortage of people and a shortage of skilled workers, and that shortage is not far down the road. That shortage is very soon, as we look at the demographic numbers," he said.

The grant, which is retroactive to Jan. 1, 2007, will affect an estimated 100,000 apprentices in the Red Seal program, which allows trade workers with the endorsement to work anywhere in Canada without having to write additional tests.

The grant was necessary because Canada is having a "significant problem" attracting people into the trades, Flaherty told an audience gathered in a garage at Durham College, in Whitby, Ont.

"It's a significant problem ... we're talking about thousands and thousands of vacancies for skilled workers across Canada," he said.

The money will help apprentices gain a financial foothold as they enter the workforce, said Patrick Dillon of the Building and Construction Trades Council of Ontario.

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"It's not a whole lot of money that they're earning in the early stages, so this kind of incentive grant will help with that," he said.

A group of about 50 Durham College students stood at the back of the room during Flaherty's announcement.

Outside the garage, electrical apprentice Marty Kann, 20, said many apprentices struggle to make ends meet during their training. Kann said the grant was "great."

"Being an apprentice, funds run pretty dry pretty quick," he said.

The apprenticeship grant program is one of several measures announced by the government aimed at helping tradespeople and employers in the skilled trades sector. In its 2006 budget, the Conservatives pledged more than $500 million over two years for apprentices and tradespeople.

Effective May 2006, the federal government introduced a Tradesperson's Tools Deduction to help eligible tradespeople across the country save on the cost of work-related tools. It also introduced an Apprenticeship Job Creation Tax Credit, to provide employers with up to $2,000 per apprentice for each of the first two years of their contract.

Application forms for the apprenticeship grant are available at Service Canada Centres and on the Internet. Service Canada is responsible for processing the applications and delivering the cheques.

For more information on the Apprenticeship Incentive Grant, visit the website at http://www.servicecanada.gc.ca, call 1-866-742-3644 (TTY 1-866-909-9757), or visit your local Service Canada Centre.

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There are currently 49 Red Seal trades, covering approximately 80% of the Canadian skilled trades work force. The Interprovincial Standards Red Seal examination is the only certification examination in all but two provinces (Alberta and Quebec). In Alberta and Quebec, an apprentice is required to write the provincial examination for certification purposes, followed by the Red Seal examination for mobility purposes.

For more information on Red Seal trades, visit www.red-seal.ca.