This is a synthesis of policy directions and approaches that could help meet Canada's current and future needs for skilled workers. The ideas presented here came from a broad sampling of the labour and business communities during consultations by the Canadian Labour and Business Centre (CLBC), at the request of Human Resources Development Canada, in the early spring 2001.

As an independent national labour-business organization, for several years the Canadian Labour and Business Centre has focused attention on the complex and far-reaching issues involved in meeting Canada's skills challenges. Competition for skilled workers is fierce, and in many fields, increasingly international in scope. This is one of the most serious challenges facing Canadian management and labour - the people who work in and for the companies and organizations that generate income, employment, and social and economic well-being for all Canadians.

Both labour and business informants expressed a high degree of frustration and skepticism about the practical value of further consultations on skills needs. Informants indicated a sense that, over the years, there have been numerous studies, consultations, and policy and program initiatives, "few of which have had any measurable impact on the key problems". Despite their reservations, however, informants from both constituencies were willing to engage in the discussions.

The issues related to the need for skilled workers are complex and pervasive. During the consultations, business and labour identified the issues that, in their view, are of most concern.

Both the labour and the business constituencies have strongly held views on a number of broad fiscal and other public policy issues. These perspectives are encapsulated in the main report, and are more fully reflected in the appended summary findings from the consultations with the business and labour constituencies. It is particularly interesting to note that the greatest differences are at the national, public policy level. There are major differences, for example, with respect to the role of government, in particular the role of fiscal policy and the impact of Employment Insurance. At the same time, labour and business have different perspectives on the extent to which skills development and training is a worker's right, or a responsibility which rests with the individual.

At the workplace and sectoral levels, however, business and labour respondents often brought up similar suggestions and preferences vis-à-vis approaches to skills challenges. This offers cause for optimism that building a collective will-to-action is possible on many fronts. These perspectives are apparent both within each constituency, and between the labour and business constituencies.

There is an observable evolution in the perspectives of both business and labour on a number of key fronts. Earlier national business-labour leadership surveys by the Canadian Labour and Business Centre indicate that "skills shortages" - which as an issue was barely on the radar screen of labour and business four or five years ago - is now ranked by both constituencies as one of their top ten concerns. (For more information, see CLBC's Viewpoints 2000 survey results ).

The key purpose of the consultations was to identify opportunities for action related to the priority concerns of business and labour. These suggestions include relatively straightforward measures that, in the opinion of both constituencies, could and should be implemented immediately by the federal government, with immediate and positive impacts.

Many of the approaches and measures listed below, however, will require further study, elaboration, and consensus building efforts to forge agreement between and among the wide range of stakeholders who must contribute to the national effort.

As is well illustrated in the main report and in the appended summaries of findings of the business and labour consultations, there are many initiatives and programs already underway, especially in individual workplaces but also at the sectoral level and by the various orders of government across the country. It is not always easy, however, to access information about some of these innovative approaches, as they are often not well documented or evaluated for success.

What is needed, as both constituencies point out, is leadership to make the skills and learning agenda a national priority, with a sense of urgency and a will to act that is shared by all stakeholders. Moreover, the active commitment of all orders of government is needed to deal with jurisdictional issues, and to facilitate collaboration with one another and with other stakeholders.

1. Training and Human Resource Development
2. The Skilled Trades
3. Immigration
4. Labour mobility and credential recognition
5. Provincial and Education Sector Actions
6. Older workers/phased-in retirement
7. Working with Aboriginal Communities

1. Training and Human Resource Development [Top]

In the key area of training and human resource development, business and labour have very different perspectives at the national policy level.

Labour respondents did not like the Registered Individual Learning Accounts (RILAs) proposed in the recent Throne Speech, and stated a preference for a training tax/ grant levy system, a national version of the Québec "Loi du 1%". Business, on the other hand, was strongly opposed to the concept of a training tax/grant levy system. The potential new initiative most frequently discussed by business informants was a Human Resource Investment Tax Credit, although many also expressed interest in the RILA approach.

At the workplace level, business and labour appeared to be much closer in their views. On the labour side, it is a longstanding principle that every worker is entitled to training; and on the business side, there is increasing recognition that higher levels of training will be needed to offset difficulties in recruitment. Both constituencies supported sectoral approaches to HRD issues. As a result, there was general support for renewed and enhanced support for Sector Councils, reflecting their strategic position at the interface between education and industry. The point was made by both sides that training levels should not be reduced at the first sign of an economic downturn.

2. The Skilled Trades [Top]

Both constituencies strongly urged the federal government to implement immediately two specific measures that would assist apprentices:

• Institute a tax credit for the purchase of tools by new tradespersons.
• Eliminate the two-week Employment Insurance waiting period for apprentices on block release for classroom training.

Labour and business participants talked of the need for laddering arrangements, which would increase opportunities for students and tradespersons to follow apprenticeship programs to community college and then to university. For many, the 'dead end' image of the trades was linked to the absence of such arrangements.

Some business informants favoured a full apprenticeship approach to trades training, in which certification, and the mobility rights that accompanied this, would be granted after completion of a full apprenticeship program which included all aspects of the trade. Others favoured a modular approach to training in which recognition of completed modules (some of which might be in different trades areas) produced workers with skill sets more tailored to particular employer needs.

3. Immigration [Top]

Both constituencies recognized that, traditionally, immigration has served to supply many of Canada's needs for skilled people in a wide range of fields and sectors. That supply from many traditional source countries, however, is drying up, at the same time as Canada faces increased competition from other countries in recruiting talented immigrants.

Business spokespersons called for a streamlining of immigration regulations and procedures to permit Canadian employers to recruit key skills internationally. Respondents from the high-tech sector further noted that Canada must recognize that it is part of a world-wide labour market for skilled workers in this sector, and must act aggressively to attract and retain these workers through specific initiatives in critical skills areas.

Labour respondents spoke of the important need to work with new immigrant communities to actively include their members in the labour force.

4. Labour mobility and credential recognition [Top]

Several organizations cautioned that the education, skills and experience of many foreign-trained workers were going unused because Canadian regulatory bodies did not recognize them. Efforts to remove such accreditation barriers, while protecting professional standards, were thus an essential step if Canada were to make efficient use of all the skills at its disposal.

Both constituencies urged refinements of prior learning assessment and recognition (PLAR) practices and policies. Labour's emphasis was on a greater role for labour and business; while business saw PLAR approaches as a valuable tool for identifying the skills foreign-trained workers bring to Canadian employers, and as such should be used more extensively by employers.

Finally, a clear case for federal leadership, especially for business respondents, is the need to facilitate the full and immediate implementation of the labour mobility provisions of the Agreement in Internal Trade. In related fashion, both labour and business called for increased efforts to harmonize trades certification standards to promote full mobility of tradespersons within Canada.

5. Provincial and Education Sector Actions [Top]

The most significant difference of perspective between labour and business in this area appeared to be on the issue of "partnerships" with schools. Many business representatives identified such partnerships as essential, and took the view that institutions should become more "market-driven" and more open to business assistance. Labour informants, on the other hand, were less enthusiastic about the value of such partnerships. Some labour people felt that these arrangements give business too much influence over education. "

There was, however, considerable common ground on other fronts. Respondents from both constituencies urged the provinces to review their training and education resource levels with the goal of redressing the cumulative impacts of provincial budget cutting on education (elementary and secondary as well as PSE), training and apprenticeship budgets.

In this regard it was noted that addressing anticipated shortages of teaching staff at all levels would provide an additional critical challenge to schools and post-secondary institutions, with potential implications for their capacity to carry out their mandate.

There was a strong view in both constituencies that provinces and schools must address a perceived bias among guidance teachers, as a result of which students are often directed to university studies upon graduation, at the expense of community colleges and, particularly, of the trades.

Both sides recommended that industrial arts programs be introduced and/or improved at the elementary and secondary levels. Both parties also agreed on the need for expanded co-op, internship and work experience programs to improve the employability, attitudes and work skills of students. Such initiatives would require much higher levels of partnership with local employers and unions.

6. Older workers/phased-in retirement [Top]

Both labour and business informants identified phased-in retirement provisions as a practical way to retain the invaluable knowledge, skills and experience of older workers for a longer period of time, although they recognized that this would involve the modification of many current pension rules and regulations. Phased-in retirement could also serve to encourage experienced workers to mentor younger workers.

Phased-in retirement would allow individuals greater choice as to how and when they would leave the workforce. It could be incorporated as part of an early retirement program or could be applied to people aged 65 years of more.

7.Working with Aboriginal Communities [Top]

Finally, respondents from both constituencies, particularly in Manitoba, Saskatchewan and Alberta, expressed the importance of working more extensively with the Aboriginal population, with the goal of including these peoples effectively in the work force. Drawing attention to the growing number of training/mentorship initiatives already in place, they called for sustained activity to extend these further.

As informants repeatedly pointed out, the skills agenda is a complex, multisectoral, and multifaceted challenge. What is needed is a combination of initiatives at all levels, by all stakeholders, over time, beginning now: what informants called "a will and a way to act".

The Canadian Labour and Business Centre will continue to focus on identifying and furthering development of measures to address the skills challenges.