Ontario construction stakeholders are steadfast in defending the Doug Ford government’s $2.5-billion Skills Development Fund in the wake of an auditor general’s report that concluded the fund’s selection process was “not fair, transparent or accountable.”
The report from Auditor General Shelley Spence found 549 applications under the four-year-old program, representing 54 per cent of the submissions approved for funding by the office of the minister of labour, were rated “poor,” “low” or “medium.”
The lower-ranked applications received $742 million, or 56 per cent of total funding across the first five rounds of the fund.
Spence’s report, released Oct. 1, issued four recommendations to improve the selection process. All were accepted by Minister of Labour David Piccini, who said in a radio interview, “There’s always room for improvement when it comes to our programming.”
Among critics, Liberal House Leader John Fraser noted the SDF gave over $20 million to bars, restaurants and clubs in downtown Toronto including “well-connected insiders.” NDP MPP Kristyn Wong-Tam said the issues echo the Greenbelt scandal.
The SDF has funded hundreds of millions of dollars’ worth of skilled trades-related projects, the ministry has confirmed. Construction stakeholders reacting in support of the program included sources from the contractors’ and union sectors, both traditional and alternative.
OGCA reaction
“Ontario’s construction industry needs training that fits how our sector actually works,” stated Ontario General Contractors Association president Giovanni Cautillo. “The Skills Development Fund delivers targeted, industry-led solutions, putting more job-ready people on sites and helping us build housing, hospitals and transit faster, safer and to a higher standard.”
The OGCA’s Pathways to ICI, funded by the SDF, supports training in project co-ordination and management.
Karen Renkema, Ontario vice-president for the Progressive Contractors Association of Canada (PCA), called the SDF a “game changer” in a statement.
“The funds have enabled innovative training partnerships, pathways and programs that have served to attract and support many new entrants to the skilled trades,” said Renkema.
Ian DeWaard, provincial director of the Christian Labour Association of Canada (CLAC), said the SDF has enabled CLAC to “launch sustainable, high-impact training that supports current and future skilled tradespeople to grow their careers.”
Programs funded have included CLAC’s Construction Bootcamp, Supervisor Micro‑Certification program, and the Group Sponsor program for apprentices.
Four AG recommendations
Spence wrote in the first two rounds of funding Piccini’s office did not give documented reasons why it chose 388 projects receiving a total of $479 million. Acceptance criteria were included in subsequent funding rounds.
The audit accepted the Ministry of Labour “had sound processes for evaluating applications and monitoring the recipients.”
Among the recommendations, the auditor general urged the ministry to strengthen criteria on weightings; better explain when selections are not based on high ratings; track consultants who lobby on behalf of applicants; and improve the tracking of key performance indicators (KPIs).
Piccini said where his office has intervened to approve applications that were lower ranked, it was because the project met specific government objectives.
“As she noted, it is our prerogative to select projects that adhere to our priorities of needing to get more men and women into the skilled trades, getting more folks living with disabilities into the employment sector,” said Piccini.
Mike Gallagher, business manager of Local 793 of the International Union of Operating Engineers (IUOE), said the auditor general’s findings should not be interpreted as discrediting the training programs his union has funded with SDF support.
“If there’s been some findings which examine the process and how it could be improved, we would welcome that, and have no issue with that whatsoever,” he said. “We’ve always wanted to provide the highest standards possible. And I believe our applications would have met any new standard that might be put in place.”
A new training facility in Oro-Medonte near Barrie that received SDF top-up funding is now half-way complete, Gallagher reported, and the IUOE is also planning to develop training facilities in Hamilton, Sarnia and Sudbury.
“They’ve really stepped up to ensure that…all construction trades have the ability to provide good quality training to make sure that we meet the needs of the industry,” said Gallagher.
Piccini posted a letter from the Ontario Pipe Trades Council on X stating the council, on behalf of 30,000 workers, expresses its “strong support” for the SDF. It added, Ford and Piccini “have demonstrated a clear commitment to partnership with our industry – supporting workers, strengthening communities and driving Ontario’s economy forward.”
LIUNA, representing labourers, and the Carpenters’ Regional Council also praised the SDF. Tom Cardinal, president of the council, noted over 1,000 workers have participated in Carpenters’ programs funded by the SDF since 2021.
“The feedback we received from the ministry at the conclusion of our Round 4 SDF program was that our program demonstrated a commitment to excellence in its management, communication with ministry officials and reporting,” Cardinal stated via email.
A LIUNA statement said, “LIUNA supports the skills development fund and the leadership of Minister Piccini to invest in a skilled workforce that has been ignored by previous governments…We look forward to continue working in collaboration to empower opportunities for the men and women who power Ontario forward.”
