Funds for training in the Morneau budget

OTTAWA – Workers and employers are affected in a number of ways in the Morneau budget, primarily for training and for the protection of pension plans.

E mployeurs and unions were asking for tools to facilitate the training of workers in an economy in transition.

The Morneau budget first provides for a tax-free credit for training to help eligible workers aged 25 to 64 to improve their skills. An amount of $ 250 per year will be accumulated up to a cumulative limit of $ 5,000.

The training credit will be for workers earning between $ 10,000 and $ 150,000.

This may relate to training fees for colleges, universities or a vocational training institution, starting in 2020.

At the end of four years, the worker will have accumulated $ 1,000 in his training credit, which he can claim to pay tuition or training fees of $ 2,000 or more.

The Morneau budget provides $ 710 million over five years starting in 2019-20 to introduce this new credit, and then $ 265 million a year thereafter.

Employment Insurance

In addition, an EI benefit in support of training will be created in late 2020 for Canadians who are training but do not receive regular pay.

This short-term benefit will be paid for up to four weeks. It will give 55% of average weekly earnings over a four-year period. To receive it, workers must have accumulated at least 600 hours of insurable work during the eligibility period.

The Morneau budget provides $ 1.04 billion over five years starting in 2019-20 to implement this Employment Insurance benefit and then $ 321.5 million annually thereafter.

On the other hand, to help small employers deal with this new benefit, Finance Minister Bill Morneau is proposing to introduce a reduction in EI premiums for small businesses.

This reduction will apply to SMEs that pay EI premiums equal to or less than $ 20,000 a year.

Pension plans

Lastly, the Morneau budget provides for additional provisions to better protect pension plans when businesses are insolvent. Not considered as privileged creditors, workers often find themselves, in such circumstances, with a retirement pension much lower than expected.

In Quebec, the Steelworkers union, affiliated with the FTQ, is fighting a long battle to protect the pension plans better; he met dozens of federal MPs to raise awareness of the cause.

Ottawa announced in the budget that it would amend the Companies’ Creditors Arrangement Act, the Bankruptcy and Insolvency Act, the Canada Business Corporations Act and the Canada Business Corporations Act, 1985. pension benefit to better protect workers.

The Morneau budget provides for a specific definition in federal pension law that “if a plan ceases, it must still pay pension benefits just as when it was active.”

More generally, he is talking about demanding more transparency from companies. Federal public enterprises will be required to disclose their workers, retirees and executive compensation policy “or to explain why such policies are not in place”.


The failures of the Phoenix pay system once again force the federal government to inject funds into the matter, which announced its abandonment in its budget of 2018.

For the year 2018-2019, an additional $ 21.7 million is needed to offset “urgent pressures,” says in the Morneau budget. And an additional $ 523.3 million over five years, starting in fiscal year 2019-20, will have to be invested “to ensure that adequate resources are dedicated to resolving payroll errors.”

In addition, the Canada Revenue Agency will need an additional $ 9.2 million in 2019-20 to accurately process new income tax assessments for affected federal government employees.

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