Innovative project to help older workers in Prince Edward Island

Date: September 26, 2002
FOR IMMEDIATE RELEASE

CHARLOTTETOWN, PRINCE EDWARD ISLAND-The Honourable Lawrence MacAulay, Solicitor General of Canada and Member of Parliament for Cardigan, on behalf of the Honourable Jane Stewart, Minister of Human Resources Development Canada, and the Honourable Elmer L. MacFadyen, Minister of Community and Cultural Affairs for Prince Edward Island, today announced funding of $385,700 for a pilot project that will help 30 older workers in the construction sector in Prince Edward Island build on their skills to remain in the work force or reintegrate into the labour market.

"There are a number of older Canadians who wish to stay in the work force, but face a number of difficult employment challenges," said Minister MacAulay. "This project will help participants strengthen the skills they have, or acquire new skills to remain in the labour market. Today's announcement demonstrates the Government of Canada's commitment to ensuring that older workers have access to the tools and support they need to prepare for, find and maintain employment."

Under this project entitled the Older Worker Employment Re-entry and Retention Program, 15 workers who are facing job loss because of outdated skills will be chosen, assessed and their training needs identified. These individuals will then be placed in the necessary training while retaining their positions with their current employers. A second group of 15 displaced workers will be given a needs assessment and the training required to be more marketable within the labour force. The project also allows employers within the construction and related industries to receive a wage subsidy if they hire the participants who have completed their training on a full-time basis.

The project will be sponsored by the Construction Association of Prince Edward Island and will last from September 2002 to March 31, 2003.

"In building a strong economy, we have to make sure we provide the necessary training and tools for all aspects of our workforce and that workforce must include older workers," said Minister MacFadyen. "There are older workers who possess the desire and interest to remain active in the workforce. This program will help ensure they are prepared, capable and successful in that pursuit."

Under the Forum of Labour Market Ministers, the Government of Canada and the provincial and territorial governments have committed themselves to finding ways to address common labour market challenges. Together, they set parameters for the Older Workers Pilot Project Initiative and projects to be tested in provincial and territorial jurisdictions. The projects are funded jointly by the Government of Canada and the participating provinces and territories.

Government of Canada funding for this initiative is provided through the federal $30-million Older Workers Pilot Projects Initiative, which was announced in June 1999. The Government of Canada will invest $295,450 for the 2002-2003 fiscal year. The province will invest $11,500 and the Construction Association will invest $78,750. The province will contribute to the coordination and monitoring of the project as well as the cost of evaluation after March 31, 2003. The Construction Association will contribute 50 per cent of the wage subsidy costs for the displaced workers and the income support for the 15 job-threatened workers while they are on training.

"The Construction Association of PEI is extremely pleased with and thankful for the announcement today of the approval of the Older Workers Pilot project," said Francis Reid, Secretary/Treasurer of the Association. "The construction industry, and the Construction Association of PEI in particular, will benefit greatly from the results of this pilot project by providing older workers of the construction industry an opportunity to remain loyal and productive workers for their employers and the Industry. At this time of declining participation by older workers, when under the existing circumstances they would not likely remain in the construction industry, this is a win/win proposal for all parties, the Industry and the governments included," he added.

Funding for this project was provided for in the December 2001 Budget and is therefore built into the existing fiscal framework.

This project has been reviewed to ensure compliance with the Department's administration of its grant and contribution programs.

PROJECT SUMMARY

Older Worker Employment Re-entry and Retention Program:

Government of Canada contribution: $295,450
Government of PEI contribution: $11,500
Construction Association contribution: $78,750
Participants: 30 (15 job-threatened workers and 15 displaced workers) aged between 55 and 64
Project duration: September 2002 to March 31, 2003

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