TO ALL IBEW FIRST DISTRICT LOCAL UNIONS
Greetings:
Today the newly elected Federal Government tabled their first Budget. The 269 page document wasn’t a
surprise to many, as the Liberals stuck to many of their campaign promises including running a deficit,
investing in infrastructure, changing the Employment Insurance program to better suit the needs of Canadian
workers, investing and addressing climate change, and investing in union training centres.
Canadians expected a large investment in infrastructure and while there are funds earmarked for infrastructure
investment, many of the funds promised during the campaign will be allocated in “Phase 2” which will take
effect around the year 2020-21. The immediate spending over the next two years on “Phase 1” of infrastructure
is still slated to be around $11.9 Billion.
In previous budgets Canadians have seen governments over-estimate the price of oil. In Budget 2016, the
Finance Minister has conservatively based his figures on a barrel of oil being valued at $25 per barrel.
Anything over and above $25 per barrel should provide more tax revenues for the Federal government and will
likely appear as a surplus in years to come should the price of oil continue to be above the $25 threshold set
out in this budget.
Below we have highlighted some key budget items that will be of interest to IBEW members in various sectors
and regions across the country. For more information or to download the complete Budget please see the link
below.
You can find the 2016 budget information and downloads at http://www.fin.gc.ca/fin-eng.asp
2016 Budget Highlights for the IBEW
Income Tax
A tax cut for Canada’s middle class, reducing personal income tax rate to 20.5 per cent from those
who were previously in the 22 per cent category. Beginning January 1, 2016, Canadians with taxable
income between $45,282 and $90,563 saw their income tax rate lowered.
Employment Insurance (EI)
To help reduce the period of time during which a claimant is without income, the Budget proposes to
make legislative changes to reduce the EI waiting period from two weeks to one week effective
January 1, 2017.
The Budget proposes to amend the rules to eliminate the higher EI eligibility requirements that restrict
access for new entrants and re-entrants to the labour market. New entrants and re-entrants will face the
same eligibility requirements as other claimants in the region where they live. This measure is
proposed to take effect in July 2016.
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In 2012, the Conservative government made changes to the EI program to specify the type of jobs that
unemployed workers are expected to search for and accept. For some claimants, this has meant having
to accept work at lower rates of pay and with longer commuting times. Today’s Budget proposes to
reverse those changes that strictly define the job search responsibilities of unemployed workers.
Budget 2016 proposes to extend the duration of EI regular benefits by 5 weeks, up to a maximum of
50 weeks of benefits, for all eligible claimants in the 12 EI economic regions that have experienced
the sharpest and most severe increases in unemployment. Extended benefits will be available for one
year starting in July 2016, with the measure being applied retroactively to all eligible claims as of
January 4, 2015. This measure will ensure that EI claimants in these 12 regions have the financial
support they need while they search for work.
Budget 2016 proposes to invest $73 million over two years, starting in 2016–17, to improve access to
EI Call Centres. This investment will increase the number of call centre agents, which will reduce
waiting times and ensure that Canadian workers can access the information and support they need to
receive their EI benefits as quickly as possible. Since the job cuts in this area by the Conservatives,
many members and other Canadian workers have had a difficult time contacting anyone by phone at
the EI call centres.
Skills Training
Budget 2016 proposes to provide an additional $125 million in 2016–17 for the Labour Market
Development Agreements and an additional $50 million in 2016–17 for the Canada Job Fund
Agreements.
The Government will conduct broad-based consultations with provinces, territories and stakeholders
in 2016–17 to identify ways to improve these agreements and guide future investments to strengthen
labour market programming.
Strengthening Union-Based Apprenticeship Training
A skilled, mobile and certified skilled trades workforce is built upon high quality apprenticeship
training systems. Apprentices work and learn in a variety of settings, including on-the-job, at colleges
and polytechnics, and through union-based training centres. To strengthen the role of union-based
training providers, Budget 2016 proposes to provide $85.4 million over five years, starting in 2016–
17, to develop a new framework to support union-based apprenticeship training. As well as improving
the quality of training through investments in equipment, the framework will seek to incorporate
greater union involvement in apprenticeship training and support innovative approaches and
partnerships with other stakeholders, including employers.
This announcement is something that the IBEW First District office in conjunction with NETCO, as
well as other Canadian Building Trades unions, has spent considerable time lobbying MP’s on this
subject and stressing the importance of having this implemented in their 2016 budget.
New Infrastructure Spending
In addition to funding flowing through the existing programs that support infrastructure, the
Government will implement a short-term Phase 1 plan over the next two years to modernize and
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rehabilitate public transit, water and wastewater systems, provide affordable housing, and protect
existing infrastructure from the effects of climate change.
Phase 2 will deliver on the remaining eight years of the Government’s long-term infrastructure plan.
In this phase, the goals will be broader and more ambitious: a more modern, cleaner economy; a more
inclusive society; and an economy better positioned to capitalize on the potential of global trade.
Phase 2 will go hand in hand with the transition to a low-carbon economy.
Budget 2016 proposes to provide $125 million over the next two years to the Federation of Canadian
Municipalities (FCM) to enhance the Green Municipal Fund, including for projects that reduce
greenhouse gas emissions. This FCM fund finances and funds innovative, municipal green
infrastructure priorities, and has provided over $700 million to projects across the country since its
inception.
Auto Sector
The extension of the Automotive Innovation Fund, which is currently scheduled to sunset at the end of
2017–18, will be extended through to the end of 2020–21 in order to raise the profile of Canada’s
strong capabilities and better influence investment location decisions necessary for the long-term
competitiveness of the Canadian automotive sector.
Investing in First Nations Community Infrastructure
To complement the social and green investments being proposed on reserve, Budget 2016 also
proposes to provide an additional $255 million over two years starting in 2016–17 to the First Nations
Infrastructure Fund to support investments in a wide range of complementary infrastructure that
includes energy systems and physical infrastructure to mitigate the effects of natural disasters and fire
protection services.
Investing in Clean Technology
Budget 2016 proposes to provide early strategic funding for clean technology projects. To support
future investments, Budget 2016 proposes to provide over $1 billion over four years, starting in 2017–
18, to support clean technology, including in the forestry, fisheries, mining, energy and agriculture
sectors.
Budget 2016 proposes to provide $62.5 million over two years, starting in 2016–17, to Natural
Resources Canada to support the deployment of infrastructure for alternative transportation fuels,
including charging infrastructure for electric vehicles and natural gas and hydrogen refueling stations.
Advancing Regional Electricity Cooperation
Significant investment in Canada’s electricity sector will be needed over the next 20 years to replace
aging infrastructure and meet growing demand for electricity. Budget 2016 proposes to provide $2.5
million over two years, starting in 2016–17, to Natural Resources Canada to facilitate regional
dialogues and studies that identify the most promising electricity infrastructure projects with the
potential to achieve significant greenhouse gas reductions. This initiative will help shape future
investments to maximize economic and environmental benefits.
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Supporting Energy Efficiency and Renewable Energy Development
Budget 2016 proposes to provide $128.8 million over five years, starting in 2016–17, to Natural
Resources Canada to deliver energy efficiency policies and programs, and maintain clean energy
policy capacity. These resources will support improved energy efficiency standards and codes for
products, buildings, industry and vehicles, and further the development of a legislative framework for
offshore renewable energy projects.
Budget 2016 also proposes to provide $10.7 million over two years, starting in 2016–17, to Indigenous
and Northern Affairs Canada to implement renewable energy projects in off-grid Indigenous and
northern communities that rely on diesel and other fossil fuels to generate heat and power.
Strengthening the Public Service
In Budget 2016, the Government committed to a strong, respectful and productive relationship with
the Public Service of Canada.
The Government is committed to the development of public service leaders and in ensuring that
ongoing workplace improvement is based on evidence through employee surveys.
Bargaining in Good Faith with Federal Government Unions
A new round of collective bargaining between the Government and federal public service bargaining
agents began in 2014, with all 59 federal public service collective agreements up for renewal.
The Government is committed to negotiating in good faith to reach agreements that are fair for public
service employees and Canadians. The Government has already introduced new legislation to repeal
the legislative provisions that provide it with the power to make unilateral changes to the disability
and sick leave system.
It also reversed the previous Government’s decision to book savings in respect of changes to the
public service disability and sick leave system in advance of the completion of negotiations. The
Government will also consult on changes to the Public Service Labour Relations Act introduced
through the 2013 Budget Implementation Act.
Best wishes.
In solidarity,
Bill Daniels
International Vice President
BD/tf
cc: International Reps
IBEW CCO
System Council #