STRENGTHENING THE LABOUR FORCE DEVELOPMENT SYSTEM IN ONTARIO

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1 STRENGTHENING THE LABOUR FORCE DEVELOPMENT SYSTEM IN ONTARIO APRIL 2004 ONTARIO NETWORK OF EMPLOYMENT SKILLS TRAINING PROJECTS

2 ISBN Number Thank you to the following people for assistance in the preparation of this document: Nella Iasci, ONESTEP Past President, Central Region Representative Michael Harris, ONESTEP President Ed Kothiringer, ONESTEP Vice President Jim Mackinnon, ONESTEP Treasurer/Secretary Isaac Fonseca, ONESTEP Member at Large Vicki Mayer, ONESTEP South West Member Bill McDougall, ONESTEP Member at Large Sherri Simzer, ONESTEP South East Member Joan Teresinski, ONESTEP South West Representative Bernadette Beaupré, ONESTEP Executive Director Joyce Deutsch, ONESTEP Project Manager Thank you to the ONESTEP members who also contributed to the preparation of this document. Prepared by Wiliam G. Wolfson, President, WGW Services Limited Layout, design and printing by MailPartners No part of this document can be copied without the written permission of ONESTEP Copies of this document are available by contacting: ONESTEP The Ontario Network of Employment Skills Training Projects Wellington Street West Toronto, Ontario CANADA M5V 1G1 Website: onestep.on.ca

3 ONTARIO NETWORK OF EMPLOYMENT SKILLS TRAINING PROJECTS POSITION PAPER ON STRENGTHENING THE LABOUR FORCE DEVELOPMENT SYSTEM IN ONTARIO This position paper describes the community-based training (CBT) sector in Ontario, the role of ONESTEP, the state of Ontario s labour market today, how CBT agencies can contribute to an enhanced delivery system, views on the principles to strengthen the labour force development system, and how ONESTEP can support the CBT sector. Labour force development issues are Pan-Canadian in nature and require the active participation of the Federal government. ONESTEP believes that it is critical for the Federal government to provide leadership on labour force development issues and maintain a clearly defined role in the planning, policy development and direct funding of labour force development initiatives in Ontario. In addition, ONESTEP believes that there is a need for more coordination and collaboration regarding employment-related services among the federal, provincial and municipal governments in Ontario in full consultation with employers and service providers. THE CONTRIBUTION OF COMMUNITY-BASED TRAINING (CBT) Not-For-Profit CBTs Have Served Canada for Over 130 Years Community-based training (CBT) has a long and distinguished history of serving Canadians for over 130 years. 1 Agricultural societies and mechanics institutes were among the earliest providers in the late eighteenth and early nineteenth century. Community organizations like the YMCA and YWCA began to offer job training and placement services in the 1870s. CBT today is delivered by not-for-profit organizations, rooted in the communities they serve. CBT organizations embrace a non-institutional, holistic approach to client service, and base their work on fundamental principles such as equitable access, personal autonomy, individual needs, cultural sensitivity and non-discrimination. 1 A History of Community Based Training in Canada, ONESTEP, January

4 CBTs Deliver a Variety of Labour Force Development Initiatives CBT agencies have extensive experience with a wide variety of labour force development activities. Initiatives of individual agencies could include, depending on agency size and scope, some or all of the following employment-related functions: assessment, information and referral, counselling, language instruction, literacy and numeracy training, academic upgrading, skill training, employment preparation, job search, work experience, job placement, job maintenance, delivery of wage subsidies and client advocacy. CBTs Work With Hard-To-Serve Populations CBT agencies in Ontario currently serve over 150,000 clients annually. On average, over 70% are successful in obtaining employment or returning to further education or training. 2 Many of these clients are from hard-to-serve populations facing employment barriers including long term unemployed, marginalized youth, people with disabilities, homeless or under-housed people, those re-entering the labour force after a long absence, aboriginals and newcomers to Canada. To undertake this important work, CBT agencies have developed a diverse variety of income sources including government contracts, fee-based services, United Ways, private funders, productive enterprises and their communities. CBTs Are Already Engaged in Delivery Enhancements; System Improvements Are Needed The current array of labour force development initiatives sponsored by three levels of government federal, provincial and municipal - has been in place for many years. Governments and the agencies they contract with have done their best to serve labour market participants. There are models in Ontario where coordination among providers funded by different governments has improved outcomes for clients. CBT agencies have led the way in working collaboratively at the local level with colleges, school boards, social service departments, settlement organizations and others to serve their clients. But the system on a province-wide basis could be enhanced to provide greater program coherence, more efficient use of public resources and improved service delivery. More coordination and collaboration among the federal, provincial and municipal governments in Ontario, in full consultation with employers and service providers, is required. 2 ONESTEP Client Demographic Survey,

5 THE ROLE OF ONESTEP More Than Twenty Years of Service ONESTEP is a membership-based organization devoted to strengthening the CBT sector in Ontario. ONESTEP is governed by a volunteer board of directors representing all regions of the province. For over 20 years, ONESTEP has provided a variety of services including human resource studies and other research, professional development of CBT staff and management, best practice manuals, information services and networking opportunities. 110 Member Organizations from Across Ontario ONESTEP has 110 community-based organizations as members, drawn from all parts of the province. Its six regional networks provide opportunities for members to work together on common issues, to share local information, to undertake professional development and to provide a regional perspective on provincial and national issues. For instance, ONESTEP consulted with member agencies through its regional networks in the development of this brief. Extensive community and media contacts allow ONESTEP to communicate its messages to a broad range of constituencies. Well Recognized in the Education and Training Sector for its Accomplishments ONESTEP is well recognized in the education and training sector across the country. It is an active member of the Canadian Coalition of Community-Based Employability Training (CCCBET), and has participated on numerous government-sponsored national and provincial committees working on labour market issues. ONESTEP has prepared and distributed important research and consultation studies on labour force development, and has sponsored a variety of events directed to building the capacity of the CBT delivery system. The Appendix provides a sample of the rich array of ONESTEP s participation on various national and provincial committees and its work on many projects and publications. Continuously Contracted by the Government of Canada ONESTEP first received funds from the federal government in 1982 to support projects for severely employment-disadvantaged people undertaken by not-for-profit organizations in Ontario. In 1987, ONESTEP was incorporated as a not-for-profit organization, and continued to partner with the federal government to strengthen the CBT sector in the province. Today, ONESTEP is financed by membership fees and through special projects, consulting services, and events management. Ongoing agreements with Human Resources and Skills Development (HRSD) continue to contribute to the shared objectives of sectoral representation and capacity development. In sum, ONESTEP has partnered with the Government of Canada continuously for over 20 years to strengthen the labour force development in Ontario. 3

6 THE ONTARIO LABOUR MARKET TODAY Ontario is Canada s largest labour market, accounting for about 40% of the labour force, about 40% of employment and about 40% of business firms. 3 Labour force development is a critical element in building a strong economy in Ontario. Three key trends 4 are impacting on Ontario s labour force: a growing demand for higher levels of skills and education, an aging population resulting in slower labour force growth, and greater reliance on immigration to meet labour force requirements. Ontario s unemployment rate in 2003 was 7.0%, slightly below the national average. The youth unemployment rate remains stubbornly higher, at over twice the adult rate. 5 There is emerging evidence of skills shortages, likely to be exacerbated in the future by the first two trends cited in the paragraph above. Ontario receives about 60% of all newcomers to Canada, many of whom face considerable challenges in making a smooth transition into employment that is consistent with their skills and experience. Their foreign credentials often get discounted and many get caught in the dilemma of no Canadian experience, no job no job, no Canadian experience. The importance of education, training and pre-employment preparation is clearly rising. Over the last decade, most job growth in Ontario has occurred in jobs requiring higher levels of education (a degree, a diploma, a certificate). Although there are still a large number of low-skill, entry-level occupations, many of them now have higher basic skill requirements as well. The importance of Essential Skills, to use the concept developed by HRSD, has been rising in virtually all occupations. 6 There are significant challenges in strengthening the delivery system in Ontario. There are a variety of federal initiatives under the EI Act, with the most intense services ( active benefits and support measures ) reserved for individuals who are EI and Reachback clients. There are other federal employment initiatives for youth, aboriginals, people with a disability and newcomers with significantly fewer resources to support meaningful employment. HRSD has a significant number of Human Resource Canada Centres (HRCCs) in Ontario that administer HRSD s employment initiatives according to local needs. Since HRDC withdrew from direct funding of training interventions and is reliant almost exclusively on EI premiums, more effective interventions for special target groups are quite constrained. Federal labour market and economic development strategies are not fully linked to policies regarding immigration of skilled workers and continuous learning/re-training for experienced workers. 3 Statistics Canada, Labour Force Survey, November Labour Market Trends in Ontario, Labour Market Information and Research, Ontario Ministry of Training Colleges and Universities, May Statistics Canada, Labour Force Survey, November Click on for more information. 4

7 Ontario has two major programs administered by two different ministries. The first, Job Connect, sponsored by the Ministry of Training, Colleges and Universities (MTCU) is a combined employment preparation and on-the-job training program with a priority on serving youth, operated by service delivery organizations across the province. The second, Ontario Works, sponsored by the Ministry of Community and Social Services through municipalities, is a province-wide employment preparation program for social assistance recipients. The provincial role in regulating access to professions and trades is a significant factor affecting a flexible response to shifting demands of the market place and global positioning. Developing a common framework for all these initiatives is a daunting challenge. In sum: There is much still to be done in continuing to create a skilled and adaptable workforce in Ontario. There are significant challenges in building and supporting a labour force development system that is accessible and responsive to diverse labour market conditions across the province. 5

8 PRINCIPLES TO STRENGTHEN LABOUR FORCE DEVELOPMENT ONESTEP s recommendations to both Canada and Ontario on the principles that should underlie a strengthened labour force development system are based on extensive consultations with our membership. In developing the proposed principles, ONESTEP also consulted with CBT organizations in other provinces in order to benefit from their experience. These organizations are in British Columbia, Alberta, Manitoba and Quebec. The principles below are divided into two categories: elements that will enhance the quality of service delivery and administrative elements that will help to create a sound delivery system. Principles to Support Quality of Service Delivery Clear Outcomes: Governments should clearly enunciate the objectives and outcomes to be achieved with their funding, so the system is performance- based. It is recognized that HRSD has a prime interest in jobs secured and EI savings. ONESTEP suggests that additional targets be established, such as increased participation in the labour force and in employment by disadvantaged groups. Local Flexibility: While recognizing that there will be provincial targets, local flexibility in the planning and delivery of services is required in order to respond effectively to changing local circumstances. Total Labour Market: In other provinces across the country, federal labour market initiatives for certain groups e.g., youth, people with disabilities, aboriginals were not included in the new delivery systems. In Ontario, planning for federal programs should be based on an integrated service delivery system that includes all targeted labour market programming (excluding provision of EI benefits). Best Use of Labour: Government programs should seek to support the best use of human capital through measures such as prior learning assessment and recognition (PLAR) and investment in retraining geared to high growth industries and occupations. Emphasis should be on the best employment outcome, not the shortest route to any job. Access Based On Need: There should be access to appropriate services for all individuals in need, regardless of their source of income support. People with multiple employment barriers should be able to access both short and long-term interventions. Service Delivery Standards: For each element of the delivery system, there should be measurable service delivery standards established for all providers, consistent with effective and efficient use of public funds. There should be clear enforcement measures applying to all parties. 6

9 Results Reporting: For each program initiative, there should be an effective results reporting system that supports monitoring at the local, regional and provincial levels. Evaluation Framework: There should be an evaluation framework for each program initiative, built on the service delivery standards and the results reporting system. The evaluation framework should support a process of continuous improvement in service delivery. Best Practices: Providers can learn from each other. Accordingly, there should be mechanisms for recognition and sharing of best practices among service providers. Stable agreements with proven service providers are necessary to maximize this sharing of information and techniques. Innovative Pilots: There should be mechanisms that encourage innovation in program delivery through pilot projects. These projects should be rigorously evaluated, and, if successful, contribute to best practices. Adequate LMI: Quality, neutral, timely and accessible Labour Market Information should be available to assist in decision-making by labour market participants. It should be recognized that for many clients, skilled personal assistance is required to enable them to convert information to action. 7 Participants Rights: A Bill of Rights for program participants should be developed and displayed prominently in every delivery site. The statement should cover items such as fundamental fairness, equality of access, mutual respect, cultural and linguistic sensitivity, appeal mechanisms, etc. Compliance with these Rights should extend to all stakeholders involved in government-supported labour market initiatives, including employers, regulatory bodies and sector councils, etc. Principles to Enhance System Integrity Good Governance: The roles and responsibilities of each order of government should be clearly enunciated; clear lines of authority should be established; timely dispute settlement mechanisms should be in place; delegated decision-making to the appropriate level should be determined; and there should be full transparency as noted below. 7 The OECD Review of Career Guidance Policies in Canada, September 2002, page 13 supports this premise. 7

10 Government Coordination: HRSD should ensure close collaboration with other federal stakeholders who have an interest in labour force development including with officials from HRSD programs that are outside the main envelope of EI Act funding, with Citizenship and Immigration Canada regarding newcomers to Canada, and with other federal departments as needed. Similarly, MTCU should ensure close collaboration at the provincial level within the Ministry and with other Ministries such as Community and Social Services, Economic Development and Trade, Education and Labour. Adequate Infrastructure Support: The infrastructure required within governments to develop, fund and oversee labour market initiatives should be adequate for these tasks, and the appropriate level of resources should be provided. Full Transparency: There should be full transparency regarding funding levels, program priorities, funding allocations, evaluation criteria, results reporting and outcomes at the local, regional and provincial level. Funding Commitments: Federal funding should reflect at least the level of current expenditures with full allowance for annual cost inflation. Multi-year funding commitments should be established to encourage longer range planning and bring greater stability to the system. Rates of unemployment should only be one measure used in determining program funding envelopes at the regional and HRCC level. Multi-Year Agreements: Experienced service providers should be eligible for multiyear agreements, thereby providing greater stability in service delivery and greater business efficiencies. Commitments Honoured: Service agreements will be negotiated on the basis of sound and fair business practices. Once budgets and targets are approved and as long as performance is within contracted norms, there should be no requirements for further prior approvals or disallowance of costs claimed. Market Driven: The level of funding and the allocations to program envelopes should be driven by the needs of the labour market. Adequate, timely LMI is essential to support system-wide decision-making. Experience Recognized: Governments should acknowledge there is a strong delivery system in place in Ontario with a wide variety of experienced service providers. Indeed there is substantial government investment in the existing service system. An enhanced system should be built on the foundations already in place. Consultative Processes: A consultative process involving all stakeholders should be utilized to determine local priorities. National priorities and guidelines should allow for a range of local variances as long as core objectives are accomplished. 8

11 Fair Access: Where a tendering process is used to select service providers, the RFPs should be broadly communicated and proposals accepted from all service providers who wish to submit them. The selection process should be transparent and fair. Service Partnerships: Service delivery partnerships among delivery organizations should continue to be encouraged, but they should not be an eligibility requirement for funding. Administrative Burden: While ensuring the needs for accountability and transparency are met, every effort should be made to minimize the administrative burden on participants, employers and service providers. Wind-down Costs: When agreements are not renewed, the full amount of winddown expenditures should be covered by the funder. 9

12 WHAT CBTs CONTRIBUTE TO THE SERVICE DELIVERY SYSTEM CBT service providers are currently a significant component of the current delivery system in Ontario. They have much to offer in the future to an enhanced service delivery system. CBTs can contribute: Experience working with disadvantaged populations and a challenging clientele; Accessibility for clients regardless of the source or the size of income; Holistic approach to the needs of clients, providing individualized services where appropriate; Track record of successful delivery of a variety of different programs over many years; Flexibility to adapt programming quickly to changing circumstances; Strong accountability to the community through an active volunteer board of directors representing community interests; Volunteer and community resources that enhance service delivery and open doors for clients not always achievable by other providers; Knowledgeable referrals to community providers such as child care, financial counselling, housing advocates, and mental health; Responsiveness to the policy and program directions of our funding partners; Integrated delivery models in which the programs of different funders are combined to provide seamless service to clients (many CBTs are currently delivering services for all three levels of government); Cost-effectiveness of our programming, whereby resources are carefully managed to bring the best result at the lowest possible cost; High success rates in terms of strong retention rates and positive outcomes, even while working with some of society s most marginalized populations; Strong connections in the community with educational institutions, local governments, private trainers, social service agencies, employer associations, local training boards and other CBTs; Broad coverage through CBTs in many communities across Ontario including rural and remote locations; and Professional staff who integrate the Guidelines and Standards for Career Development Practitioners into various aspects of their work. 10

13 HOW ONESTEP SUPPORTS THE CBT SECTOR There are a variety of ways that ONESTEP can assist with the development of an enhanced service delivery system. ONESTEP stands ready to provide the supports noted below to assist with efforts to improve system coherence: ONESTEP is very knowledgeable about the education and training sector in Ontario and in particular the CBT component of it. ONESTEP can provide quantitative and qualitative information as needed to senior decision makers. Service delivery organizations need to be well-informed about the developments in the field, in order to contribute fully to the labour force development system. Through its network, ONESTEP can ensure all CBT agencies are kept up-todate. Furthermore, ONESTEP can rapidly engage its members in any consultation processes that might assist with the development and / or implementation of new initiatives. As an umbrella organization, ONESTEP would be pleased to participate on a provincial advisory group to assist the two governments in this area. ONESTEP has a long track record in providing professional development to staff and executive directors of CBT organizations, and can develop training programs for service delivery organizations as related to new initiatives. ONESTEP has the capacity to engage in research and monitoring activities that could assist with the implementation of any new initiatives. ONESTEP has expertise in events management and can assist with the logistics of regional or provincial consultation sessions. Michael Harris President ONESTEP michaelh@keys.ca Bernadette Beaupré Executive Director ONESTEP ext. 224 bbeaupre@onestep.on.ca 11

14 APPENDIX ONESTEP S INVOLVEMENT IN LABOUR FORCE DEVELOPMENT Publications/Products Quality Standards for Service Delivery Tool Kit, 2003 CBT Sector Wage Surveys (1994, 1999, 2003) Online Funding Sources Directory, 2002 Client Demographic Survey, 2002 Human Resource Study of the CBT Sector In Ontario, 2001 Innovation and Looking Ahead: ONESTEP and Ontario Works at the Crossroad 2000 ONESTEP Technology Survey, 1998 A History of Community-Based Training in Canada, 1998 Human Resource Study of Community-Based Training In Ontario, 1996 Training That Works: A Guide to Effective Community-Based Employment Training Practices (in conjunction with the Canadian Coalition of Community-Based Training), 1995 Taking Care of Business, (a manual of best administrative practices), 1996 Economic Impact of Community-Based Training: Social Audit Report of Five Ontario Sites, 1996 Singing For Our Supper: A Review of Workfare Programs, 1995 Provincial Consultation on Social Security Reform: A Community-Based Training Perspective,

15 Committee Involvement Canadian Alliance of Educators and Trainers Organization Canadian Coalition of Community-Based Employability Training Canadian Guidelines and Standards for Career Development Practitioners Initiative Pan-Canadian Symposium on Career Development Ontario Team for the National Symposium on Career Development Access to Training Subcommittee (MTCU) Training Delivery Advisory Group Voluntary Sector Initiative Conferences and Professional Development Workshops Opportunities Career Development Conference 2000, 2001, 2002, 2004 with the Ontario Alliance of Career Development Practitioners Regional Professional Development Workshops 2000, 2001, 2002, 2003 Annual Provincial ONESTEP Conferences from 1987 to