A. Renewal of the Aboriginal Skills and Employment Training Strategy program

The Aboriginal Skills and Employment Training Strategy (ASETS) and the Skills and Partnership Fund (SPF) are scheduled to end in March 2015. The government has been consulting with ASETS holders and SPF service delivery organizations, national Aboriginal organizations, provinces and territories, major employers, and other stakeholders, on the future of Employment and Social Development Canada’s (ESDC's) Aboriginal labour market programming beyond 2015. The Committee also heard of other ways in which ESDC seeks input in relation to Aboriginal labour market programming:

ESDC also formally partners with national Aboriginal organizations to collaborate on joint policy priorities and seek feedback on how to improve Aboriginal labour market programming, among other things. This work will help inform the future direction of Aboriginal labour market programming. These partnership agreements are with the Assembly of First Nations, the Inuit Tapiriit Kanatami, the Métis National Council, the Congress of Aboriginal Peoples, Native Women's Association of Canada, and the National Association of Friendship Centres, the last three of which represent off-reserve First Nations as part of their membership base.[105]

James Sutherland Department of Human Resources and Skills Development

The Committee’s study complements the results of ESDC’s consultations and provides a very important point of view from diverse witnesses on the future of Aboriginal labour market programming, particularly on ASETS. This chapter will provide their testimony and recommendations. It will also present some facts about ASETS as well as other programs such as the SPF, the First Nations Job Fund (FNJF) and apprenticeship grants.

1. History: The Aboriginal Human Resources Development Strategy and the Aboriginal Skills and Employment Partnership

The Aboriginal Human Resources Development Strategy (AHRDS) was introduced in 1999 for a five‑year period. Under this strategy, Aboriginal organizations received funding to design and deliver labour market programs that helped Aboriginal people prepare for, obtain and/or maintain employment. While improving Aboriginal people’s skills was one of AHRDS’ objectives, other components included assisting Aboriginal youth to make a successful transition from school to work, and increasing the supply and quality of child care services in First Nations and Inuit communities. In Budget 2009, the federal government allocated $25 million to maintain the AHRDS until a new strategy was put in place in April 2010.[106]

The Aboriginal Skills and Employment Partnership’s (ASEP) program was launched in 2003 as a five‑year, $85‑million initiative designed to provide Aboriginal people with the skills needed to participate in major economic development projects across the country, e.g., northern mining, oil and gas projects. To be eligible for federal funding, the private sector, the relevant provincial/territorial government and local Aboriginal communities were required to establish a collaborative partnership. These partnerships had to include in their training plans an Aboriginal training continuum from basic skills and literacy training to academic improvement to job-specific training and apprenticeships. ASEP supported multi-year training and employment strategies that were developed and managed by formalized partnerships to train individuals for targeted jobs. In addition to a training plan, each partnership had to commit to provide at least 50 sustainable jobs for Aboriginal people.

In July 2007, the federal government announced that it was investing an additional $105 million over the next five years on an estimated 15 to 20 new ASEP projects, which were to allow 9,000 Aboriginal people to receive training and another 6,500 to obtain long-term skilled jobs.[107] Budget 2009 invested an additional $100 million over three years in ASEP,[108] and announced the creation of a new Aboriginal Skills and Training Strategic Investment Fund which would support short-term and targeted initiatives. The government invested $75 million over two years in this fund.[109]

ASEP ended on 31 March 2012. As of 10 July 2012, results indicated that 24,416 Aboriginal persons were trained and that 8,887 were placed in long-term jobs.[110] Table 1 presents the expenditures on Aboriginal skills development and training for fiscal years 2007–2008 to 2011–2012.

Table 1 — Expenditures on Aboriginal Human Resources Development Strategy and the Aboriginal Skills and Employment Partnerships, 2007–2008 to 2011–2012 ($ millions)

Source: Table prepared by analysts using data obtained from Human Resources and Social Development Canada, Departmental Performance Reports from 2007–2008 to 2011–2012.

B. Aboriginal Skills and Employment Training Strategy

1. Description of ASETS

In April 2010, the Aboriginal Human Resources Development Strategy and the Aboriginal Skills and Employment Partnership were replaced by ASETS. One of the goals of the new strategy remained to assist First Nations, Inuit, and Métis in securing meaningful employment in the Canadian labour market. ASETS aims to improve labour market outcomes by supporting demand-driven skills development, fostering partnerships with the private sector and provinces and territories, and emphasizing increased accountability and results.

As of December 2013, ASETS supported a network of over 85 Aboriginal agreement holders, with over 600 points of service. Under ASETS, Aboriginal agreement holders must oversee the development and delivery of programs and services to help Aboriginal clients with multiple employment barriers, including Aboriginal persons with disabilities return to school and/or find employment. ASETS provides five-year funding to Aboriginal agreement holders with the intent to give Aboriginal service delivery organizations the ability to tailor the programs to the unique needs of their clients and offer interventions that will lead to employment. ASETS also includes funding for child care for First Nations and Inuit communities. An official from ESDC told the Committee that, “[u]nder ASETS, $55 million per year under the First Nations and Inuit Child Care Initiative supports a network of 8,500 child care spaces in over 450 sites in First Nations and Inuit communities across Canada.”[111]

Table 2 outlines funding for ASETS from 2010–2011 to 2014–2015.

Table 2 — Federal Spending on ASETS, 2010–2011 to 2014–2015 ($ millions)

Source: Employment and Social Development Canada, Departmental Performance Report 2012–13, Supplementary Information Tables, Table 1, 2013. Employment and Social Development Canada, Report on Plans and Priorities – 2014-15, Details on Transfer Payment Programs, Table 1, 2014.

ASETS offers non-repayable contributions expected to result in skills development and training programs that will lead to an increase of between 14,000 and 16,500 Aboriginal people joining the labour force annually. ASETS contributed to the employment of 16,195 Aboriginal people who participated in its programs in 2012–2013.[112] As well, a response provided to the Committee by ESDC following the appearance of its officials indicates that 51,086 clients completed programs or made use of services to help them find employment or return to school that same year.[113]

One departmental official provided further information relating to how many Aboriginal persons have benefitted from ASETS:

ASETS is demonstrating increased employment and return-to-school outcomes. Since 2010, ASETS has seen approximately 48,000 clients become employed, 22,000 clients return to school, 128,000 clients complete one or more interventions, and over 50% of clients either employed or returned to school.[114]

James Sutherland Department of Human Resources and Skills Development

2. ASETS: A Success Story

a. Relevance of ASETS

The majority of witnesses offered positive feedback on ASETS. They found the programs under this strategy to be relevant and effective in preparing and training Aboriginal people for post-secondary education and employment, as well as developing Aboriginal businesses. For example, the Métis National Council told the Committee that:

Employment remains the ultimate objective as the key measure of program success. Since the beginning of ASETS in 2010 to December 31, 2013, we have together served 9,945 clients of whom 2,221 were still in the process of completing their interventions as of December 31. Of the remaining 7,724 who completed what is known as an action plan, approximately 58% had found employment within 12 weeks and 22% had returned to school, which translates into an 80% success rate. That is not failure, my friends, but success.[115]

David Chartrand Métis National Council

Other witnesses and stakeholders were also enthusiastic about ASETS.

The ASETS program is one of the key programs in addressing the labour market shortage and has proven to be one of the best returns on investment programs. The program has contributed to building an on-reserve economic base by building a stronger First Nation workforce. ASETS sub-agreement holders have designed programs that meet the needs of the communities and the regional labor market.[116]

We are also strong advocates of ASETS. The approximately 83 agreement holders throughout Canada have built the capacity to find solutions to Aboriginal human resource issues. They must continue to receive and have authority to spend the budgets as well as the authority to design and develop labour market programs to meet Aboriginal individual and community needs.[117]

Steven Schumann International Union of Operating Engineers

Some witnesses told the Committee that they were able to leverage valuable resources, both financial and in goods or services, through ASETS. Partnerships were created among ASETS agreements holders, Aboriginal businesses, industry, educational institutions, not-for-profit organizations and different levels of government. These partnerships ensure that training programs prepare Aboriginal people for existing and future jobs in different sectors of the economy, particularly in the natural resource extraction industry that often exists in close proximity to Aboriginal communities. Some witnesses praised ASETS for its flexibility in terms of working with a broad cross-section of industries and partners. For example, the president of Kinder Morgan Canada told the Committee that the tight connection between the needs of industry and available training programs was important to the success of ASETS.[118] In addition, the Committee heard that:

[T]he First Nations ASETS agreement holders are also building relationships with the business community at large. This network has become a critical mechanism to supporting First Nations citizens in accessing the work force, and we can't emphasize enough how important this strategy is to our community.[119]

Judy Whiteduck, Assembly of First Nation

Some witnesses also mentioned how ASETS is cost-effective:

Together with all services provided by our association, in the past four years of a five-year ASETS agreement, we have secured 2,708 job placements. In terms of the impact to federal and provincial social programs, that represents in excess of $800,000 in savings to the Employment Insurance Fund. It is in excess of $2 million in savings to both the federal and provincial social income fund. An estimated $30 million in wages has been invested into the economy.[120]

Karin Hunt Prince George Nechako Aboriginal Employment and Training Association

Another key factor in the success of ASETS is the development of customized training plans that allow service delivery agents to meet the specific needs of a particular Aboriginal individual looking to pursue his or her education or wanting to join the labour force. Many witnesses also talked about how training funds are spent through local Aboriginal organizations that are the most aware of the specific needs of their community and the local labour markets.

I would like to highlight that the National Aboriginal Economic Development Board considers that ASETS is a successful program.

The delivery mechanism is locally driven by Aboriginal organizations, which allows for customized and tailored interventions that can target special needs and focus on the specificity of local labour markets. The board considers the guidelines of the ASETS program to be efficient and appropriate. In fact, Chief Clarence Louie of the Osoyoos Indian Band in British Columbia — who is also the chair of our board — has decided to spend and administer his community’s training funds through the local ASETS program. This is a testament to the program’s value.[121]

Dawn Madahbee National Aboriginal Economic Development Board

With respect to the national level, Canada's Economic Action Plan ensures training reflects labour market needs. ASETS is best suited and equipped to align skills of the unemployed to those required by employers. We have trained, qualified experts at our ASETS offices, who are working directly with clients to determine needs, assessments, training requirements, to address barriers to employment, to set clients up in training programs that are individualized, to match the needs of the demand driven with industry, and to get clients trained and ready for employment.[122]

Charlene Bruno Six Independent Alberta First Nations Society

Across the board, witnesses decisively endorsed ASETS as a successful strategy and asked that it be renewed.

RECOMMENDATION 10

The Committee recommends that the federal government renew the Aboriginal Skills and Employment Training Strategy, or a similar program, for a minimum of five years, determine the terms and conditions of the new program, and communicate that decision expeditiously to all parties involved to avoid gaps in programming and cuts to personnel.

b. Challenges

While witnesses universally endorsed the renewal of ASETS, that is not to say that ASETS cannot be improved. During its hearings, the Committee learned about some of the challenges relating to ASETS. Many witnesses mentioned that the reporting requirements are too labour intensive and difficult to meet. Some witnesses stated that too little money was available to support the reporting requirements. As a result, training funds were sometimes spent on reporting. A number of witnesses indicated that their organizations need an increase in funding for administrative purposes.

One thing that's quite clear is that there is still a heavy reporting burden without a lot of clarity. In our opinion, it needs to be simplified and a uniform reporting platform needs to come into place.[123]

Jeffrey Cyr National Association of Friendship Centres

An increase in our administration allocation could help develop updated technology; such as on line applications, improved outreach services, increase access to our clients and other much needed services. Although a lot of work still needs to be done directly in our communities and directly with our people, the ability to upgrade and update our systems would assist us in a more efficient and effective program in terms of services to our people.[124]

An official from ESDC told the Committee that the Department has set up a working group with ASETS agreement holders that is actively looking into solutions to reduce the reporting burden.[125]

RECOMMENDATION 11

The Committee recommends that Employment and Social Development Canada continue its efforts through the working group to find solutions to the reporting problem related to the agreements under the Aboriginal Skills and Employment Training Strategy. All options should be considered in the discussions surrounding the potential renewal of the Strategy.

RECOMMENDATION 12

The Committee recommends that the federal government encourage multiple agreement holders who cover areas in proximity to each other to work collaboratively on administrative matters, which could allow for savings to be made and reinvested in additional technology or training opportunities.

In addition, witnesses mentioned that the growth in the Aboriginal population is not reflected in the amount of funding provided for skills development and training through ASETS. They told the Committee that funding has not been increased since the beginning of the program even though the population of Aboriginal young people is growing rapidly, as is the demand for labour by industry. Indeed, witnesses told the Committee about the growing opportunities in the natural resource sectors and the demand for more Aboriginal skills development and training programs like those offered through ASETS. Furthermore, many witnesses told the Committee that more funding is needed for child care to allow parents to participate in training and employment opportunities. For example,

But I think when it comes down to it, it's the lack of funding for support services in our communities. When we're struggling with the timeframes and all of these other things coming at us through the ASETS agreements, it goes to the question. I hear the word about the growth in our communities and that is what we're struggling with today. Our funding hasn't increased. Our child care is increasing; our child care funding hasn't increased.[126]

Chief Bruce Underwood Coast Salish Employment and Training Society

Many of our people rely on day care funding in order to have a reliable, dependable, professional, and culturally appropriate environment for their children while they're on training or at work. One of our day cares is funded strictly by ASETS funding and closing the day care will be detrimental to working and training classes for the First Nations community. Therefore, continuation of the funding of the day care is vital.[127]

Steven Williams Aboriginal Labour Force Development Circle

[First Nations Inuit Child Care Initiative] FNICCI has also evolved from a program that supported daycare operations on reserves and northern Inuit communities into one that is specifically designed to provide child care services to ASETS clients while in training. It makes less and less sense to exclude Métis from this program.[128]

The Métis National Council pointed out to the Committee that Métis people are not entitled to this funding. In their opinion, there is no longer any rationale for not supporting child care for Métis clients receiving services under ASETS.

RECOMMENDATION 13

The Committee recommends that the federal government continue to make quality and safe child care an integral part of the skills development and training component under the recommended renewal of the Aboriginal Skills and Employment Training Strategy. The government should also consider offering child care dollars to all Aboriginal people taking part in skills and training programming under the Strategy.

Furthermore, some witnesses expressed their concerns about the lack of predictability and flexibility of funding under ASETS. Witnesses also expressed a need for more flexibility and longer term funding to better support Aboriginal people with multiple barriers to employment. For example:

[I]nterventions are sometimes too short and are geared to direct employment. Many Aboriginal learners require upgrading because they have low literacy levels, did not graduate from high school, or have been out of school for a long time. If funding were approved for longer periods and criteria were more flexible, ASETS could more effectively address the upgrading and essential skills development needs.[129]

Denise Amyot Association of Canadian Community Colleges

RECOMMENDATION 14

The Committee recommends that the federal government examine, through consultations with Aboriginal agreement holders and the upcoming evaluation of the Strategy, whether there is a need to allocate predictable and flexible funding under the recommended new Aboriginal Skills and Employment Training Strategy.

During its hearings, the Committee also heard testimony relating to differences in delivering Aboriginal labour market programming in urban areas compared to rural or remote Aboriginal communities. As an official from Aboriginal Affairs and Northern Development Canada told the Committee, “it costs a lot less per student to fund in an urban area than it does in a rural area.”[130]

What we would expect from an urban community with plenty of opportunity isn't necessarily the same as what we might see from an isolated community that does not have those same opportunities.[131]

James Sutherland Human Resources and Skills Development Canada

The friendship centre network has the partnerships, wraparound services, infrastructure, and experience necessary to enhance existing programming and expand opportunities for urban Aboriginal Canadians to develop the tools, skills, and resiliency for meaningful engagement with the labour market.[132]

Jeffrey Cyr National Association of Friendship Centres

The National Association of Friendship Centres (NAFC) is a strong supporter of a single funding system for skills development and training and social supports for urban Aboriginal people and told the Committee that it has asked the federal government to consider signing a separate contribution with its organization. The NAFC argued that it “… would allow for the harmonization of existing wraparound services provided by friendship centres … [and] provide a unified program and reporting structure that can reach 85 communities from coast to coast …”[133]

The Committee also heard how ASETS delivery mechanisms should reflect the particular needs of First Nations, Inuit and Métis populations:

If you want Aboriginal people to participate in labour market programs, two major conditions have to be met: first, delivery mechanisms have to be specific to each of the Aboriginal peoples of Canada, First Nations, Inuit, and Métis; and second, they must reach them in the communities where they live. Programs must be delivered by institutions with which the community is familiar and consider their own.[134]

David Chartrand Métis National Council

Some witnesses told the Committee that all Aboriginal people can receive services under ASETS no matter where they live or what Aboriginal population group they are from:

Our ASETS programming primarily provides funding to assist all Aboriginal women, and when I say all, I mean that we are status blind. We work with Métis, First Nations, non-status, and Inuit in employment and training initiatives. It is based on individual needs as well as the community needs reflecting regional realities.[135]

Beverly Blanchard Native Women's Association of Canada

Our primary services are resourced through the Aboriginal skills and employment training agreement with Employment and Social Development Canada. The region we serve encompasses 17 First Nation communities, one city, and seven rural municipalities. We serve all Aboriginal citizens on and off reserve, status and non-status, and Inuit people residing in a rural or urban setting. This is regardless of place of origin. As long as you're Aboriginal and you live in the region we serve, you have access to our services.[136]

Karin Hunt Prince George Nechako Aboriginal Employment and Training Association

RECOMMENDATION 15

The Committee recommends that the federal government ensure that future programming under the Aboriginal Skills and Employment Training Strategy be responsive to and inclusive of all Aboriginal constituencies where feasible.

Notwithstanding the large number of very successful partnerships with ASETS agreement holders, some witnesses indicated that there is a need to raise awareness about Aboriginal labour market programming, particularly ASETS, with the business community.

RECOMMENDATION 16

The Committee recommends that the federal government increase its activities to promote the Aboriginal Skills and Employment Training Strategy to the business community and that it encourage industry groups to make investments in skills development and training programs.

C. Other federal programs

1. Skills and Partnership Fund

The Skills and Partnership Fund (SPF), launched in 2010, shares the ASETS’ objective of increasing Aboriginal people’s participation in the Canadian labour market and ensuring that First Nations, Inuit, and Métis are engaged in sustainable, meaningful employment. The SPF is a separate, yet complementary program to ASETS with a budget of $210 million over five years. It supports 80 projects that encourage innovation, partnerships and new approaches for the delivery of employment services. The vast majority of the projects are training-to-employment initiatives.

The SPF is a contribution-based program. Aboriginal organizations, including those who are not current ASETS agreement holders, may submit an application for funding following a call for proposals. According to James Sutherland, Director General of the Aboriginal Affairs Directorate at ESDC, there have been three calls for proposals to date. The first two were broad in nature offering up to $3 million in funding and the third was targeted to specific projects in the natural resources extraction industry. The first two calls for proposals resulted in the delivery of numerous skills development and training programs in small and medium-sized businesses. The last call for proposals, in addition to targeting sectors with high demand for labour, required contributions from partners, e.g., private sector, provincial and territorial governments, educational institutions, of a minimum of 50%. The Committee was told that all the funding has now been allocated. As mentioned earlier, the SPF is scheduled to end on 31 March 2015. It is expected that more than 8,000 Aboriginal people will have benefitted from this program and gained employment.[137] Table 3 presents federal spending over the life of the program.

Table 3 — Federal Spending on the Skills and Partnership Fund, 2010–1011 to 2014–2015 ($ millions)

Source: Human Resources and Skills Development Canada, Departmental Performance Report 2012–13, Supplementary Information Tables, Table 2, 2013. Employment and Social Development Canada, Report on Plans and Priorities – 2014–15, Details on Transfer Payment Programs, Table 2, 2014.

A number of witnesses praised the unique opportunities offered by the SPF model and its success and/or asked that it be renewed. For example,

Some colleges and institutes are training providers for ASETS organizations and are involved in partnerships funded by the SPF. The ASETS and SPF are important and successful programs that enable Aboriginal organizations to meet local training needs tied to employment opportunities. These programs are needed to provide targeted upgrading, essential skills development, and pre-employment skills training.[138]

Denise Amyot Association of Canadian Community Colleges

The largest of these SPF programs is the Nova Scotia Aboriginal Employment Partnership [NSAEP]. This program expires at the end of the 2015 fiscal year as well. NSAEP focuses specifically on employment opportunities within the $25-billion Irving Shipbuilding contract and the resulting spinoff opportunities.

We have been working in partnerships with NSAEP to understand the needs and to promote, recruit and train individuals so they have the skills to succeed despite the first deal for these ships not being cut until 2015. This SPF project will receive approximately

$5 million over a two-and-a-half year period. Continued resources will be needed to resume this work effectively and increase Aboriginal participation on all stages of this project. It is estimated that, at its peak, between 2020 and 2021, there will be 2,000 to 2,500 people employed at this site.[139]

Karen Pictou Mi'kmaq Employment Training Secretariat

What we have created is an education and training model developed by Aboriginal people for Aboriginal people. It challenges the assumptions about Aboriginal workers and about how to prepare them for success and meaningful employment…

Once the needs of our community and industry partners are clear, we can focus on preparing our candidates for the opportunities that exist. We do this by developing individualized education plans, one candidate at a time. Anyone on the AMTA team will tell you that the individualized learning plans are a must-have, not a nice-to-have. We offer flexible entry, clear pathways, and continuous coaching, to ensure successful completion and ultimately consistent job placement.[140]

Laurie Sterritt Aboriginal Mentoring and Training Association

This past year we had approximately 300 course participants in some 35 different courses. Our course completion rate is up to about 95%. […]We actually have to turn students away now. For every 12 seats, we get 40 to 50 applications. Are there jobs for our trainees? The answer is a resounding yes. Our industry needs crew for their vessels. In one of our last courses, all 12 students went to sea; that's 12 positions taken by Inuit crew on various fishing vessels. The last few years have seen huge increases in the number of young Inuit going into the offshore industry. This past fishing season was our best so far with 100 Inuit on the various offshore fishing vessels. In the past, we had maybe 20 or 30, so that's a huge increase. The whole mindset is changing. Our students, having gained successful employment on the vessels, are becoming role models in the communities….

From my perspective, under the SPF program that we are currently funded by, which will end at the end of March [2015], […] we have a very flexible arrangement. […] We currently have no age limits attached to our funding. It's not youth funding; it's just training money, which is very important. We need to continue having flexibility in the amount that we are allowed to spend per person. [141]

Elisabeth Cayen Nunavut Fisheries and Marine Training Consortium

[W]e received the SPF funding through our Aboriginal partner in August of last year. We went out to the communities and we started recruiting and doing the assessments. There were 330 people who came forward in the first round and we were immediately able to put 160 people into training. I think this is a tremendous success and, […] with an 83% success rate, so community members do want to participate.[142]

Leanne Hall Noront Resources Ltd.

Other witnesses told the Committee that they thought the SPF duplicated some programming offered under ASETS:

The SPFs are also ending on March 2015. Especially in the northern areas you can see where those SPF projects have actually become duplicates of the ASETS delivery. There are comments from the delivery agents in the northern areas that they are doing essentially what the ASETS agreement holders are doing.[143]

Colleen Wassegijig-Migwans Wikwemikong Unceded Indian Reserve

We encourage Canada to prioritize increased investments within the ASETS delivery mechanism, rather than introducing new and often similar federal programs, assign additional resources to support the work of the ASETS.[144]

Karin Hunt Prince George Nechako Aboriginal Employment and Training Association

Among the things we see that are not working is the federal government contracting with other groups under the Skills [and] Partnership Fund that are in essence duplicating the work of the ASETS agreement holder. This creates a lot of confusion for the clients and employers.[145]

Rhonda LaBelle Cariboo Chilcotin Aboriginal Training Employment Centre

Finally, some witnesses suggested that all funding for Aboriginal skills development and training programs should be streamlined and funnelled into one program only. Their preference was to see SPF funding combined with the recommended new ASETS programming:

If the perfect conditions were in place, the department would at least match the inflation rate. It would streamline all funding through the ASETS, and it would implement a single comprehensive accountability system for all federal funding. If the department is set on not increasing the global funding of all ASETS while continuing to centralize all extra funding, at the very least it should keep those funds generic.[146]

Cheryl McDonald First Nations Human Resources Development Commission of Quebec

The Skills [and] Partnership Fund and programs like this could be funnelled through the ASETS holders thereby creating a forum in which the “partners” work directly with the ASETS holders and their people and their communities.[147]

RECOMMENDATION 17

The Committee recommends that the federal government review the Aboriginal Skills and Employment Training Strategy and the Skills and Partnership Fund delivery models with respect to employment outcomes, possible overlap and mandates.

2. First Nations Job Fund

In Budget 2013, the federal government announced the introduction of a new First Nations Job Fund (FNJF) with an investment of $241 million over four years. Part of the funding for this initiative comes from a reform of the on‑reserve Income Assistance System, which will allow $109 million to be invested in the FNJF. The FNJF supports the same type of projects, training-to-employment activities, as those eligible under ASETS; however, it focuses on First Nations youth aged 18 to 24. The goal is to ensure that personalized job training and coaching will be available to First Nations youth receiving social assistance, which should help them secure employment. The skills development and job training services will be delivered by ASETS agreement holders. ESDC administers the FNJF in partnership with on-reserve First Nations communities.[148]

What the First Nations job fund does, similar to what is already available through the ASETS network, is reserve funding for individuals who will be identified for training. The job fund is basically the same programming that's already available through ASETS, but it makes sure that income assistance recipients have access to that on reserve.[149]

Sheilagh Murphy Department of Indian Affairs and Northern Development

The Committee received little testimony in relation to this program during its study. Nonetheless, some concerns were raised regarding funding and training available to Aboriginal youth who were dependent on social assistance. As discussed earlier in this report, many of these youth face multiple barriers to employment and may need longer term interventions than what is currently available through the FNJF.

The First Nation Job Fund, which is a new initiative on behalf of the government, targets the 18 to 24-year-olds transitioning off income support, completing an assessment that will work for them, and getting them trained and into employment, or returning to school.

This initiative has high expectations, and some of our concerns at the community level is that it may be moving too fast for the individual, which then could result in poor results.[150]

Charlene Bruno Six Independent Alberta First Nations Society

3. Apprenticeship Programs

The Apprenticeship Grants program supports access to apprenticeships in the designated trades by encouraging the progression of apprentices from the early years of their apprenticeship program to the completion of their training and the presentation of their journeyperson qualification and the Red Seal certification.[151] The program provides an incentive for Canadians, including Aboriginal people, to complete apprenticeship programs and find full-time jobs with good wages.

Aboriginal journeypersons can take advantage of the employment opportunities in the resource extraction industry and offer their expertise to meet the current and future need for skilled trade workers. Closing the skills gap and the need for skilled trade labour is crucial to sustaining the growth of the Canadian economy.

The Apprenticeship Incentive Grant offers up to $2,000 to apprentices in a designated Red Seal trade. The grant is taxable and supports registered apprentices who have successfully completed their first or second year of training. The federal government also offers an Apprenticeship Completion Grant worth $2,000 to apprentices who have obtained the journeyperson qualification in a designated Red Seal trade.

In addition, apprentices can also receive Employment Insurance (EI) benefits while they are learning in an educational setting to reduce some of the costs associated with training. In 2011–2012, 40,110 new apprenticeships claims were made for a total of $167.8 million in EI benefits paid to apprentices.[152]

The majority of apprentices are registered in an approved apprenticeship program leading to a journeyperson qualification in a Red Seal designated skilled trade. The Committee also heard how less formal apprenticeship programs are offered by businesses.

Witnesses indicated that one of the biggest barriers to apprenticeship is finding an employer that will accept to employ and sponsor an apprentice. And a concern for small- and medium-sized businesses, who are the ones primarily sponsoring apprentices, is that once apprentices reach the journeyperson level, they are often offered a salary and incentives by larger companies that their current employer cannot match. When apprentices leave to work for a larger company, the sponsor’s investment in the apprentice is lost. This explains in part why some employers are reluctant to continue participating in the apprenticeship system.

Below is some of the testimony of witnesses who explained the importance of apprenticeship for Aboriginal people:

[A] lot of our nations are undertaking this initiative every year to get our First Nation people through first, second year, all the way through Red Seal. First Nations recognize the need for these skilled tradesmen within our own communities and how it benefits the employment gap within industry. So we provide entrepreneurship as well, training on reserve once a year for those interested in this field, and what it's resulted in, in our own communities, is that we're building a stronger economic base on-reserve and then expanding going out off-reserve.[153]

Charlene Bruno Six Independent Alberta First Nations Society

From a training perspective, we have our own in-house apprenticeship support programs that we put our employees through. We also rely heavily on our local community college, Keyano, as well as NAIT, the Northern Alberta Institute of Technology, in Edmonton. We provide all support for funds and training for our employees to go through any type of trade and technical employment.[154]

Kara Flynn Syncrude Canada Ltd.

The [Saskatchewan Apprenticeship and Trade Certification Commission] SATCC’s mandate is not pre-employment training. However, the commission recognizes the need for increasing Aboriginal employment in the skilled trades, and our organization provides

$400,000 in funding each year to the Aboriginal apprenticeship initiatives. These are initiatives that are proposed to the SATCC, and often include pre-apprenticeship training or part of apprenticeship training, which is usually done on reserve or in a First Nation community.[155]

Jeff Ritter Saskatchewan Apprenticeship and Trade Certification Commission

RECOMMENDATION 18

The Committee recommends that the federal government, in collaboration with provincial and territorial governments, review the possibility of expanding the eligibility for apprenticeship grants to younger apprentices who are beginning their program in the last year of their high school education, and assess whether there is a need to increase the amount of financial support or modify its delivery.