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Message from the Minister of Human Resources and Skills Development

The Honourable Diane Finley

It is my pleasure to present Human Resources and Skills Development Canada’s Departmental Performance Report to Parliament. The Report identifies progress made on the priorities outlined in the 2009-2010 Report on Plans and Priorities.

In 2009-2010, the global economic slowdown was felt widely by many Canadians. The Government of Canada’s priority was to provide support to Canadian workers and their families and to stimulate the economy. That is why Canada’s Economic Action Plan was created. It helped hundreds of thousands of Canadians overcome challenges and contributed to our economic recovery.

Human Resources and Skills Development Canada played a major role in delivering several key measures included in Canada’s Economic Action Plan. These temporary and targeted measures were designed to protect and create jobs, as well as to support Canadians and help them prepare for the jobs of the future.

Unemployed Canadians were provided with additional support from the Employment Insurance Program. Hardest hit groups such as youth and older workers benefited from additional funding to help them find jobs or transition to new careers. Almost 200,000 Canadians benefited from additional investments in training and skills development programs to help them upgrade their skills and find work. Employers also received assistance to avoid lay offs through the Work-Sharing Program. Over 255,000 Canadians have participated in this program since the economic downturn began.

Having the right skills and education is an essential part of preparing for jobs of the future. To support a skilled, adaptable and inclusive workforce, HRSDC encourages Canadians to save for post-secondary education and provides financial assistance to students. In 2009 2010, new student financial assistance measures, including Canada Student Grants and the Repayment Assistance Plan, were made available. The new Canada Student Grants reached more than 275,000 college and undergraduate students this year.

To better respond to the increased demand for services created by the economic downturn, Service Canada implemented several measures, including re-engineering processes, increasing automation, redistributing workloads across the country, extending hours of service and encouraging clients, when possible, to self-serve online. As a result, Canadians were able to receive timely service and benefits from key programs such as Employment Insurance, the Canada Pension Plan and the Old Age Security. Maintaining service excellence in our day-to-day interactions with millions of Canadians is a continued commitment for Service Canada.

As Minister of Human Resources and Skills Development Canada, I am proud of how we helped preserve and create jobs and how we supported families, employers and businesses through the economic downturn. As the economy recovers, Human Resources and Skills Development Canada will be supporting Canadians each step of the way.

The Honourable Diane Finley, P.C., M.P.
Minister of Human Resources and Skills Development

Message from the Minister of Labour

The Honourable Lisa Raitt

As Canada’s Labour Minister, I am pleased with the achievements of the Labour Program over the 2009 – 2010 fiscal year. We have met and even surpassed our goals, and we achieved this during a particularly challenging time—facing issues such as the global economic downturn, the 2009 H1N1 flu virus and Canada’s transition to economic recovery.

The Labour Program contributes to Canada’s economic success and the well-being of Canadians by fostering healthy, fair and productive workplaces, and cooperative workplace relations. Working closely with employers, unions, provincial and territorial colleagues, and international partners, the Labour Program continues to find innovative ways to provide support to hard-working Canadians, to help build dynamic work environments, and to advance Canadian values and fair labour practices on the global stage. These efforts contribute to the economic success of the country and to the strength of its social fabric.

During the economic challenges we are currently facing, the Labour Program continues to play an important role in the country’s economic recovery. The Wage Earner Protection Program, which was expanded in January 2009 through Canada’s Economic Action Plan, helped over 23 500 workers recover wages lost due to employer bankruptcy or receivership. Another accomplishment includes the work done to promote harmonious union management relations and to minimize the number of work stoppages. This is particularly important now as Canada’s economy gains strength but remains fragile. In 2009–2010, 94% of approximately 200 collective bargaining disputes were settled without a work stoppage.

Canadians should be able to return home safe and sound after their work day. Focused, proactive Labour Program activities have helped workplace injuries and fatalities in high-risk industries continue to decrease since 2005.

In 2009-2010, the Labour Program renewed the Canada-China Framework for Labour Cooperation on Labour Matters. It also provided technical assistance to key partner countries like Peru, Colombia, Guatemala and Honduras to help administer their labour legislation and comply with international labour standards.

As Canadian workplaces continue to evolve, we must work together to keep pace and be responsive. I am confident that the Labour Program will continue to meet these challenges effectively.

The Honourable Lisa Raitt, P.C., M.P.
Minister of Labour

Section I - Departmental Overview

1.1 Introduction

This document provides an account of the performance of Human Resources and Skills Development Canada (HRSDC) for the period from April 1, 2009, to March 31, 2010. It reports the Department's achievements related to the commitments set out in the 2009–2010 Report on Plans and Priorities.

1.2 Raison d'Être and Responsibilities

HRSDC's mission is to build a stronger and more competitive Canada, to support Canadians in making choices that help them live productive and rewarding lives, and to improve Canadians' quality of life. The Department delivers its mandate through three business lines: programs that support human resources and skills development, the Labour Program, and Service Canada.

Together, HRSDC's three business lines deliver a range of programs and services that affect Canadians throughout their lives, including:

  • Old Age Security;
  • Canada Pension Plan;
  • Employment Insurance;
  • Canada Student Loans and Grants;
  • National Child Benefit; and
  • Universal Child Care Benefit.

These direct benefits to Canadians are part of Canada's social safety net and represent almost 95% of the Department's expenditures. They are designed to provide seniors with basic income security, support unemployed workers, help students finance their post-secondary education, and assist parents who are raising young children, particularly those in low- and middle-income families.

HRSDC also provides funding to organizations and other levels of government through targeted labour market and social development programs that aim to improve Canada's competitiveness, increase opportunities for vulnerable Canadians, and help Canadians become more resilient, skilled and adaptable.

Through the Labour Program, HRSDC is responsible for labour laws and policies in federally regulated workplaces. The Labour Program’s mandate includes promoting and protecting labour standards and workplace health and safety, facilitating constructive labour relations, developing labour-related policy and program options in response to changes in economic and social conditions, providing customized information about industrial relations and workplace trends, representing Canada in international organizations dealing with labour issues, and negotiating labour cooperation agreements and cooperative frameworks with free trade partners and emerging economic partners.

Service Canada helps citizens access HRSDC's programs, as well as other Government of Canada programs and services, at more than 600 points of service across the country. In addition to in-person services, the organization serves the needs of Canadians online at www.servicecanada.gc.ca and by telephone through 1 800 O-Canada and its integrated network of call centres.

1.3 Program Activity Architecture

Human Resources and Skills Development Canada - Program Activity Architecture

Text description of Human Resources And Social Development - Program Activity Architecture

1.4 Performance Summary Tables

Total Financial and Human Resources


2009-10 Financial Resources ($ millions)
Planned Spending Total Authorities Actual Spending
94,719.8 97,622.1 97,402.7


2009-10 Human Resources (FTEs)
Planned Actual Difference
24,508 25,109 (601)

Strategic outcomes, performance indicators and 2009–2010 financial information


Strategic Outcome 1: A skilled, adaptable and inclusive labour force and an efficient labour market

Under this strategic outcome, the Department helps Canadians take advantage of opportunities to develop skills and knowledge and to participate in and complete post-secondary education. It does so by offering programs that:

  • provide temporary income support to unemployed Canadians who have contributed to the Employment Insurance (EI) program, while they look for work;
  • provide loans and grants to post-secondary students;
  • encourage Canadians to save for the post-secondary education of a child under 18 years of age; and
  • increase skills development opportunities.

HRSDC facilitates participation in the labour force by:

  • reducing barriers to the participation of groups that are under-represented in the labour force, including Aboriginal people, older workers, youth and people with disabilities;
  • reducing barriers to interprovincial labour mobility;
  • providing skills and labour market information to Canadians and newcomers; and
  • improving the recognition of foreign credentials.
Performance Indicators Targets 2009-10 Performance

Percentage of the Canadian labour force (aged 25–64) with some post-secondary education

Source: Internal HRSDC calculation using the Labour Force Survey

70.5%

2009–2010 results: 71.1%
(See page 40 for breakdown.)

Historical results:
2008–2009: 70.7%
2007–2008: 70.0%
2004–2005: 68.0%
1990–1991: 52.1%

Percentage of Canadians (aged 25-64) who have attained a post-secondary education certificate, diploma or degree

Source: Internal HRSDC calculation using the Labour Force Survey

61.8%

2009 results: 61.4%
(See page 40 for breakdown.)

Historical results:
2008: 60.8%
2007: 60.3%
2005: 58.3%
1990: 39.6%

During the last five years, Canada has been ranked first among Organisation for Economic Co-operation and Development countries in terms of having the highest percentage of its population having attained a post-secondary credential Education at a Glance 2009 at www.oecd.org.

Proportion of working-age Canadians (aged 25-64) who participate in job-related training and employer-supported job-related training

Source: Access and Support to Education and Training Survey

Non-Employer Supported- Job-Related Training: 34.7%

Employer-Supported Job-Related Training: 25%

  2008 2002
Note: The wording of this indicator and 2002 results have been revised based on a new data source (Access and Support to Education and Training Survey). The Adult Education Training Survey, reference is the 2009-2010 Report on Plan and Priorities, is no longer available.
Non-employer supported job-related training 30.6% 24.6%
Employer-supported job-related training 27.7% 21.7%

Percentage of unemployed individuals who were unemployed for 53 weeks or more

Source: Labour Force Survey

4.1%*

2009-2010 results: 4.9%

Historical results:
2008–2009: 3.8%
2007–2008: 4.1%
2006–2007: 4.4%
2005–2006: 4.7%
2004–2005: 4.8%

Employment Ratio (employed population in proportion of the working-age population)

Source: Labour Force Survey

73.2%*

2009-2010 results: 71.3%

Historical results:
2008–2009: 73.2%
2007–2008: 73.7%
2006–2007: 73.1%
2005–2006: 72.6%
2004–2005: 72.5%

Average proportion of EI regular benefits entitlement used

Source: Administrative data

59.7%

2007-2008 results: 60.6%

Historical results:
2006–2007: 59.7%
2005–2006: 59.7%
2004–2005: 59.8%
2003–2004: 60.9%
2002–2003: 61.3%

*HRSDC used past performance to establish a target for these indicators.

Strategic outcome 1: A skilled, adaptable and inclusive labour force and an efficient labour market
Program Activity 2008-09
Actual
Spending
a
2009-10 Alignment to Government of Canada Outcomes
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Skills and Employment 18,077.6 1,772.6 21,148.1 23,865.2 23,765.6 Income security and employment for Canadians
Learning 2,117.8 2,159.0 2,159.1 2,474.3 2,466.7 An innovative and knowledge-based economy
Total 20,195.4 3,931.6 23,307.2 26,339.5 26,232.3  
a Beginning in the 2009–2010 Estimates cycle, the resources for the Internal Services program activity are displayed separately from the resources for other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. Spending by program activity for 2008–2009 has been restated to ensure comparability between fiscal years.

Strategic Outcome 2: Safe, fair and productive workplaces and cooperative workplace relations

To achieve this strategic outcome, the Department, through the Labour Program:

  • develops innovative policy and program options in response to changes in the workplace and employer-employee relations;
  • collects, analyzes, and disseminates information about developments in collective bargaining, labour law and trends in workplaces across Canada;
  • provides mediation and conciliation services to federally regulated employers and unions engaged in high stakes collective bargaining;
  • enforces compliance with labour and occupational health and safety standards, as defined under the Canada Labour Code for workplaces under federal jurisdiction;
  • provides tools and advice in support of employment equity and workplace diversity;
  • provides fire protection services in federal buildings and on reserves;
  • administers workers’ compensation claims from federal public sector employees;
  • provides oversight of the Wage Earner Protection Program;
  • explores modernizing legislation and regulations;
  • manages federal-provincial-territorial relations among Canada’s departments of labour;
  • manages Canada’s participation in international labour forums; and
  • negotiates and implements labour cooperation agreements and cooperation frameworks in the context of free trade negotiations to advance Canada’s interests and values abroad.
Performance Indicators Targets 2009-10 Performance

Number of problems with well addressed strategies

Source: Administrative data

100%

2009-2010 result: 100%

This indicator refers to the strategies (e.g. research, information dissemination, policy options, legislation) planned and successfully implemented with respect to existing and emerging workplace issues. A strategy is considered well-addressed if the issue has been clearly defined and the Minister of Labour has approved a forward-looking plan.


Strategic Outcome 2: Safe, fair and productive workplaces and cooperative workplace relations
Program Activity 2008-09
Actual
Spending
a
2009-10 Alignment to Government of Canada Outcomes
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Labour 233.9 246.3 271.2 270.8 268.5 A fair and secure marketplace
Total 233.9 246.3 271.2 270.8 268.5  
a Beginning in the 2009–2010 Estimates cycle, the resources for the Internal Services program activity are displayed separately from the resources for other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. Spending by program activity for 2008–2009 has been restated to ensure comparability between fiscal years.

Strategic Outcome 3: Income security, access to opportunities, and well-being for individuals, families and communities

HRSDC helps Canadians achieve basic income security by setting policy for and administering Canada's public pension system, which provides Canadians with retirement pensions, survivor pensions and disability benefits, including the Canada Pension Plan, Old Age Security, and the Guaranteed Income Supplement. HRSDC also sets and administers benefit-related policies through programs such as the National Child Benefit and the Universal Child Care Benefit, and it helps Canadians with disabilities and their families save for the future through the Canada Disability Savings Program. The Department works with partners to increase access to opportunities and well-being for individuals, families and communities through policies and programs that support:

  • homeless individuals and families, as well as those at risk of becoming homeless;
  • children and families;
  • increased awareness of elder abuse;
  • seniors;
  • communities; and
  • people with disabilities.

HRSDC is the lead federal department responsible for intercountry adoption in Canada. Through the Office for Disability Issues, HRSDC coordinates the Government of Canada's efforts to promote the full participation of Canadians with disabilities in learning, work and community life.

Performance Indicators Targets 2009-10 Performance

Number and proportion of individuals 65 years and older who would have had low family income without public pension support

Source: Survey of Labour and Income Dynamics

1,946,540*

47.8% of all seniors

2007 results: 1,907,250 seniors 45.6% of all seniors

Historical results:
2006: 1,946,540; 47.8% of all seniors
2005: 1,963,400; 49.9% of all seniors
2004: 1,977,400; 50.9% of all seniors

Number and proportion of individuals aged 65 years and older who had low family income

Source: Survey of Labour and Income Dynamics

219,000 seniors*
5.4% of all seniors

2007 results: 201,200 seniors 4.8% of all seniors

Historical results:
2006: 219,000; 5.4% of all seniors
2005: 241,900; 6.1% of all seniors

* The intent of these performance indicators is to show the contribution of the Department's income security programs to lowering the low-income rate among seniors from an estimated 45.6% to 4.8% (all else being equal). Data for this indicator lags by 3 years. For this indicator, low income is measured using Statistics Canada's Low-Income Cut-Off (LICO) which estimates the threshold at which families spend 20% more of their income on necessities than the average family. The exact income cut-off varies by family size and the size of the population centre where they reside. See: http://www.statcan.gc.ca/pub/75f0002m/2010005/tbl/tbl01-eng.htm

Strategic Outcome 3: Income security, access to opportunities and well-being for individuals, families and communities
Program Activity 2008-09
Actual
Spending
a
2009-10 Alignment to Government of Canada Outcomes
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Income Security 62,419.0 35,268.9 66,011.9 65,210.5 65,199.8 Income security and employment for Canadians
Social Development 2,794.0 2,639.5 2,769.0 2,851.4 2,796.8 A diverse society that promotes linguistic duality and social inclusion
Total 65,213.0 37,908.4 68,780.9 68,061.9 67,996.6  
a Beginning in the 2009–2010 Estimates cycle, the resources for the Internal Services program activity are displayed separately from the resources for other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. Spending by program activity for 2008–2009 has been restated to ensure comparability between fiscal years.

Strategic Outcome 4: Service excellence for Canadians

Service Canada is the face of the Government of Canada for millions of Canadians. Through its network of service channels, it connects Canadians with a wide range of Government programs and services. Service Canada is committed to serving the needs of Canadians, whether they are looking for basic information about Government of Canada programs and services; applying for national program benefits managed by HRSDC to which they are entitled, such as Old Age Security, Canada Pension Plan or Employment Insurance; or accessing services delivered on behalf of partners, such as the Passport Receiving Agent Service. Service Canada accomplishes this by continuing to focus on citizen-centred service excellence and through the day-to-day contributions of its professional and knowledgeable employees.

Service excellence is about providing citizens with a consistently positive service experience and sustaining service delivery that is efficient, affordable and fair, while helping the Department and the Government as a whole to realize important policy and legislative objectives. Equally, it means using Service Canada’s connection to Canadians and the opportunities this presents for positive engagement, dialogue and feedback to help ensure that policy directions, program development and service delivery remain responsive to citizens' changing needs and expectations. To support continuous improvement in the delivery of service excellence, the Department conducts research and gathers feedback from citizens to help improve its ability to deliver the right service at the right time and in the right way.

Performance Indicators Targets 2009-10 Performance

Percentage of clients served who are satisfied with the delivery of programs and services by Service Canada

Source: Administrative data

85%

The Department conducts a bi-annual Client Satisfaction Survey to assess service quality from the perspective of Canadians who access services through Service Canada. The last iteration of the survey was conducted in 2007–2008. Due to priorities arising from Canada’s Economic Action Plan, resources were focussed on delivering additional services and support and as a result, the survey was postponed to 2010–2011.

Historical results:
2007–2008: 83%
2005–2006: 84%

2009-2010 results from Service Canada’s Office for Client Satisfaction show improvements in client satisfaction. The number of complaints received from clients in 2009-2010 decreased by 29% compared to 2008-2009. Furthermore, the number of compliments received increasing to 99 from previous results of 71 in 2007-2008. Over 60% of the compliments received were directed towards services provided under the Employment Insurance program.


Strategic Outcome 4: Service excellence for Canadians
Program Activity 2008-09
Actual
Spending
a
2009-10 Alignment to Government of Canada Outcomes
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Citizen-Centred Service 533.8 466.9 474.5 540.9 531.1 A transparent, accountable and responsive federal government
Integrity and Processing 688.9 553.5 553.5 826.4 804.7 A transparent, accountable and responsive federal government
Total 1,222.7 1,020.4 1,028.0 1,367.3 1,335.8  
a Beginning in the 2009–2010 Estimates cycle, the resources for the Internal Services program activity are displayed separately from the resources for other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. Spending by program activity for 2008–2009 has been restated to ensure comparability between fiscal years.

Program Activity: Internal Services
Program Activity 2008-09
Actual
Spending
a
2009-10
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Internal Services 875.7 790.8 794.2 960.0 937.4
Total 875.7 790.8 794.2 960.0 937.4
a Beginning in the 2009–2010 Estimates cycle, the resources for the Internal Services program activity are displayed separately from the resources for other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. Spending by program activity for 2008–2009 has been restated to ensure comparability between fiscal years.

1.5 Contribution of Priorities to Strategic Outcomes


Operational Priorities Type Status Links to Strategic Outcome(s)
Assist Canadian workers in a period of economic downturn through income support, adjustment assistance and skills investments New

HRSDC played a critical role in implementing the first year of Canada’s Economic Action Plan by providing additional Employment Insurance (EI) benefits and support to the workers most affected by the economic downturn. EI claimants received an extra five weeks of benefits, and long-tenured workers were able to access the Career Transition Assistance initiative and an extension of EI regular benefits made available through Bill C-50, An Act to amend the Employment Insurance Act and to increase benefits. Temporary job losses were avoided by extending Work-Sharing agreements, and Canadians had increased access to skills development and training through additional funding provided to provinces and territories under Labour Market Development Agreements and the new Strategic Training and Transition Fund. Eligible older workers benefited from additional investments in the Targeted Initiative for Older Workers, and many students received additional employment opportunities through the Canada Summer Jobs program. Aboriginal people benefited from skills development and training opportunities through the Aboriginal Skills and Employment Partnership and the Aboriginal Skills and Training Strategic Investment Fund. Additional investments supported apprentices by implementing the new Apprenticeship Completion Grant. HRSDC also implemented the Fairness for the Self-Employed Act, which extended EI special benefits (i.e. parental, sickness) on a voluntary basis to the self-employed.

The Department launched the Aboriginal Skills and Employment Training Strategy and the Skills and Partnership Fund, which are designed to increase Aboriginal participation in the Canadian labour market. In collaboration with provinces and territories, the Department also successfully launched both the new Canada Student Grants Program for low- and middle-income students and the Repayment Assistance Plan for Canada Student Loans, and it continued to implement the Service Delivery Vision for Student Financial Assistance initiatives.

Strategic Outcome 1 – A skilled, adaptable and inclusive labour force and an efficient labour market

Help Canadian workers and employers to maintain workplace safety, fairness, productivity and cooperation throughout the economic downturn by providing relevant and timely services and support

Ongoing

The Labour Program led the Budget 2009 initiative to expand the Wage Earner Protection Program, which was originally developed to cover unpaid regular wages and vacation pay when an employer goes bankrupt or enters receivership. The expansion enables the program to also cover unpaid severance and termination pay.

The Labour Program increased its efforts to help employers and unions negotiate collective agreements, recognizing that economic downturns tend to generate tensions at the bargaining table and a heightened risk of strikes and lockouts when the economy can least afford them.

The Labour Program played an important part in the response to the 2009 H1N1 pandemic and the management of the resulting refusals to work in the critical air transportation sector.

Strategic Outcome 2 – Safe, fair and productive workplaces and cooperative workplace relations
Assist Canadians through targeted and modernized income security and social development measures for vulnerable populations (seniors, people with disabilities, homeless people and those at risk of becoming homeless, and communities) Ongoing

HRSDC continued to provide timely statutory benefits to Canadians through the Canada Pension Plan (CPP), CPP Disability, Old Age Security and Guaranteed Income Supplement programs, contributing to a stable retirement income system and alleviating poverty among seniors.

The Department also administered programs that provide individuals and families with access to services, information and opportunities to improve their well-being and enhance participation in their communities.

In addition, HRSDC continued to assist homeless individuals and families, as well as those who are at risk of homelessness, through the Homelessness Partnering Strategy. This program exceeded its yearly targets, both in terms of funding commitments from partners and in terms of targeted investments toward longer-term transitional and supportive housing.

Strategic Outcome 3 – Income security, access to opportunities and well-being for individuals, families and communities
Respond to increase in demand for services from existing Service Canada–delivered programs New

The Department implemented several measures to address the increase in demand for services as a result of the economic downturn and to maintain the level of service Canadians have come to expect. As a result, it surpassed its speed-of-payment target for Employment Insurance (EI), with 84.2% of benefit payments issued within 28 days of the date applications were filed. The CPP retirement, Old Age Security (OAS) basic and Apprenticeship Incentive Grant programs also surpassed their respective speed-of-payment targets.

The accuracy rate in benefit payments for EI, OAS and CPP exceeded the 95% target.

Strategic Outcome 4 – Service excellence for Canadians

Management Priority Type Status Links to Strategic Outcome(s)
Support the organization's core business and priorities by delivering efficient and effective corporate services Ongoing

HRSDC's management agenda includes a broad range of activities that support management excellence.

The Department developed a new Risk Assessment, Management and Mitigation approach to improve the integrity of contribution programs, which was implemented across the portfolio as of April 1, 2010. The investment review office oversaw a portfolio of over 40 business-change and information technology–enabled projects in support of services to Canadians and employers, and the Department undertook activities related to its renewal priorities of creating a healthy and enabled workplace, strengthening and enabling leadership, and investing in career development.

Strategic Outcomes 1 - 4

1.6 Risk Analysis

Over the past year, the Canadian economy experienced the effects of a global recession, including an increase in unemployment and a drop in consumer and business confidence, which fell to their lowest levels since 2001. The economic downturn increased demand for many of HRSDC's programs, including Employment Insurance (EI), labour market programs and student financial assistance. In addition, the Department’s key role in delivering components of Canada's Economic Action Plan required rapid policy and service delivery responses.

In this context, the Department identified and addressed four risk areas: service delivery, financial resources, human resources and aging information technology infrastructure.

Service Delivery

The Department faced significant increases in the number of EI claims and applications for other labour market programs, such as Work-Sharing. The workload on the front lines presented an ongoing challenge to the Department’s service delivery operations while it was being called upon to implement key components of Canada's Economic Action Plan.

There was a risk that the Department would be unable meet the increased demand for services and implement its part of Canada's Economic Action Plan in the required timeframe. A departmental SWAT Committee was established to oversee and manage risks related to implementing Canada's Economic Action Plan. To meet the immediate need for increased service delivery capacity, the Department increased its human resources by an additional 3,000 full-time equivalents on a temporary basis.

The Department continued to work with provincial and territorial governments to improve service to Canadians, strengthen accountability , clarify the roles and responsibilities of governments, and improve collaborative management of shared areas of responsibility. This was done by: implementing new labour market agreements and the Strategic Training and Transition Fund; negotiating new or amending existing agreements with provinces and territories for the Targeted Initiative for Older Workers; developing letters of understanding to improve information-sharing; implementing vital events agreements; and developing memoranda of understanding for service delivery collaboration.

These efforts allowed the Department to successfully implement its portion of the new measures under Canada’s Economic Action Plan while maintaining high service standards for its programs.

Financial Resources

The rapid increase in the demand for services created funding challenges for the Department. To ensure that it could respond to this demand while implementing Canada's Economic Action Plan, the Department instituted a process of regular reviews of its internal plans, priorities and budgets, revising them as appropriate and seeking additional funding authorities as needed to deliver the Government of Canada's commitments. At the same time, the Department began a review of its enabling services to identify ways to increase the efficiency of its core internal services.

The Department took steps to improve its Performance Measurement Framework to provide senior management with specific performance information to guide decision-making and the reallocation of resources. Other efforts centred on improving ongoing due diligence, including improving the Department’s regular financial forecasting and reporting. The Department also strengthened the integration of planning processes to improve the alignment of financial and human resources allocations with business priorities.

Human Resources

Due to the significantly increased demand for its programs, the Department needed to reallocate its existing human resources to priority areas, as well as rapidly increase the size of its workforce through the use of temporary workers. This placed significant strain on the Department's ability to manage its human resources, and particularly on its ability to hire new staff in a timely manner. To address this issue, the Department focused its mitigation efforts on implementing the Service Management Structural Model in the regions, which includes the establishment of new roles, skill profiles and recruitment strategies; standardized training and certification programs; defined career progression; performance management; and a reward and recognition program. The Department also developed a staffing monitoring framework, and increased its use of collective staffing.

In addition, the Department’s workforce continued to be affected by the same demographic trends affecting the rest of the Canadian population. An aging workforce, combined with high levels of turnover, created a risk to the Department’s ability to deploy the necessary human resources to meet the needs of Canadians. This risk placed growing pressure on the Department to take a systematic approach to reviewing its operations to improve the efficiency and effectiveness of the organization. As a first step towards this goal, HRSDC continued to support Public Service Renewal in order to build a healthy, enabled workplace and workforce with strong executive and managerial leadership. Initiatives in this area included developing the skills of employees; creating an environment to facilitate employee empowerment and engagement; encouraging creativity, innovation and forward thinking; and strengthening the people and financial management infrastructure that supports the organization.

Aging Information Technology Infrastructure

The Department’s aging information technology infrastructure has placed limits on its ability to implement new and to approaches to business processes. The increased demand for the Department’s services due to the economic downturn further stressed its processing and operational systems.

The Department moved quickly over the past year to implement measures to mitigate this risk, including the launch of an infrastructure renewal program. This program has been aimed at minimizing the risk to HRSDC’s critical applications through a planned approach to refreshing information technology infrastructure components, starting with the high-priority business applications that have the highest risk of failing. The Department also put in place a rigorous investment review process to ensure that allocated funding is aligned with the highest-priority objectives and developed a long-term renewal road map for modernizing its technology infrastructure and associated software applications.

Overall Effectiveness of Risk Mitigation Strategies

The Department successfully mitigated these risks for the 2009–2010 fiscal year, allowing its three business lines to meet the demand for services during the recession and to implement the Department’s contributions to Canada's Economic Action Plan. Many of the risks relating to human resources and the information technology infrastructure will persist over the medium-term and will require the Department to continue to monitor these areas and establish longer-term mitigation strategies. For 2010-2011, HRSDC will continue to implement its multi-year plan for managing its human and financial resources and for addressing the Department's aging information technology infrastructure.

1.7 Expenditure Profile 2009-2010

HRSDC expenditures on programs and services total more than $97 billion, of which almost $92 billion, or 94%, directly benefits Canadians through Employment Insurance (EI), the Canada Pension Plan, Old Age Security, the Universal Child Care Benefit, loans disbursed under the Canada Student Financial Assistance Act,and other statutory transfer payment programs. Departmental expenditures were $1.9 billion in voted grants and contributions and $2.6 billion for EI  Part II.

HRSDC expenditures on programs and services total - 2009-2010
Click here to enlarge

Human Resources and Skills Development Canada - Gross Expenditures
(in millions of dollars)
Statutory Transfer Payments
(in millions of dollars)
a This amount includes payments related to the Government Annuities Account, the Civil Service Insurance Fund and the Canada Millennium Scholarship Foundation Excellence Awards Fund.
Budgetary Grants and Contributions:
Net Operating Costs 1,127.3 Old Age Security 26,391.3
Add Recoveries in relation to: Guaranteed Income Supplement 7,736.6
Canada Pension Plan 274.1   Allowances   534.9
Employment Insurance Account 1,584.3   Other Statutory Payments:
Workers' Compensation 117.4   Universal Child Care Benefit 2,593.6  
Other 9.7 1,985.5 Canada Education Savings Grant 615.7  
Gross Operating Costs   3,112.8 Canada Student Loans 690.7  
Voted Grants and Contributions   1,914.4 Canada Disability Savings Grant 126.8  
Total Gross Expenditures   5,027.2 Canada Learning Bond 56.7  
  Wage Earner Protection Program 35.0 4,118.5
  Subtotal   38,781.3
Other – Workers' Compensation and Canada Pension Plan Benefits   30,363.0
EI/CPP Charges and Recoveries   632.1 Employment Insurance Benefits
Non-Budgetary Part I 18,979.8  
Loans disbursed Canada Student Part II 2,605.8 21,585.6
Financial Assistance Act(CSFAA)   974.4 Other Specified Purpose Accounts   39.1a
  Total Statutory Transfer Payments   90,769.0

The figure below illustrates HRSDC’s spending trend from 2007–2008 to 2009–2010. In the 2009–2010 fiscal year, the Department spent $97.4 billion to contribute to achieving its expected results.

The total authorized spending for 2007–2008 to 2009–2010 includes all parliamentary appropriation and revenue sources, Main Estimates and Supplementary Estimates. The planned spending corresponds to the forecasts presented in the Report on Plans and Priorities from each respective year.

Spending Trend
Click here to enlarge

Total Consolidated Expenditures
(Millions of dollars) Canada's Economic Action Plana
  2007-2008 2008-2009 2009-2010a 2009-2010
aCanada's Economic Action Plan initiatives are included with 2009-2010 figures
Planned 84,700.4 87,125.7 94,719.8 2,037.5
Authorized 84,867.4 88,520.2 97,622.1 2,307.3
Actual 84,504.4 88,264.2 97,402.7 2,272.3

Actual expenditures for 2008–2009 were $3.8 billion (4.5%) higher than actual expenditures for 2007–2008, mainly as a result of a $2.0 billion increase in EI benefits and a $1.5 billion increase in CPP benefits. In addition, OAS payments were $1.4 billion higher over the same time frame due to a change in the estimated number of beneficiaries. These increases were offset by a $1.8 billion decrease in spending from 2007–2008 related to the administration and delivery by Service Canada of Common Experience Payments, one of the five components included in the Indian Residential Schools Settlement Agreement.

In 2009–2010, actual expenditures were $9.1 billion (10.4%) higher than in 2008–2009. This increase can be mainly explained by a $3.6 billion increase in EI benefits and administrative costs due to the economic downtown, a $2.3 billion increase for initiatives announced in Canada’s Economic Action Plan, a $1.4 billion increase in CPP benefits, and a $1.3 billion increase in OAS payments due to changes in the estimated number of beneficiaries and the forecasted average monthly rate.

1.8 Summary of HRSDC’s Contributions to Canada’s Economic Action Plan

As part of Budget 2009, the Government of Canada introduced Canada’s Economic Action Plan, including the Canada Skills and Transition Strategy. Canada's Economic Action Plan provided additional financial investments and introduced new programs to support Canadians during the recession and help them develop the skills necessary to prosper once the economy recovers. While full reporting on Canada's Economic Action Plan can be found at www.actionplan.gc.ca, the following provides a brief performance analysis for the contributions delivered by HRSDC in 2009–2010.

Initiatives under Strategic Outcome 1: A skilled, adaptable and inclusive labour force and an efficient labour market

Meet Employment Insurance–related policy and program design demands in response to rising unemployment by:

  1. providing an additional five weeks of Employment Insurance (EI) benefits, previously only available as a pilot project in specific regions with high unemployment, on a national basis for a two-year period

    In addition, the maximum duration of benefits in areas of high unemployment has been increased from 45 to 50 weeks. These extra five weeks of benefits were provided to 597,376 EI claimants, for a total of $730 million in additional benefits delivered in 2009–2010 ($919.8 million and 2.6 million additional weeks of benefits overall). In addition, 64,675 Canadians received $215 million in additional benefits under Bill C-50, An Act to amend the Employment Insurance Act and to increase benefits, which extended the maximum duration of EI Part I benefits for long-tenured workers.

  2. extending the duration of Work-Sharing agreements by 14 weeks to a maximum of 52 weeks to help more companies avoid layoffs by offering EI income support to qualifying workers willing to work a reduced work week

    Partly as a result of this extension and the changes to the flexibility of the program, over 255,000 workers had participated, or were able to continue their participation in 5,900 Work-Sharing agreements as of March 29, 2010.

  3. allowing earlier access to EI regular income benefits for workers who use some or all of their severance pay to invest in skills upgrading or other training

    The Department implemented the Career Transition Assistance initiative, which consists of: the Severance Investment for Training Initiative, which enables workers to access EI regular benefits earlier if they use their severance pay to invest in skills upgrading or other training, and the Extended Employment Insurance and Training Incentive, which extends EI income benefits for up to two years for long-tenured workers participating in long-term training. In 2009–2010, approximately 10,000 long-tenured workers received additional benefits in order to participate in these long-term training initiatives, for a total of $15 million in additional benefits.

  4. freezing EI premium rates for 2009 and 2010 in order to support employers and employees

    Canada’s Economic Action Plan announced the freezing of the EI premium rate for 2009 and 2010 at $1.73 per $100 of insurable earnings, the same level as in 2008. This represents projected relief of $11.1 billion for Canadian workers and their employers relative to what would have been the case if rates had been set at the break-even level over these two years.

Work with provinces and territories to facilitate worker adjustment to the economic downturn by supporting investments in skills acquisition through labour market agreements and labour market development agreements by:

  1. investing $500 million, over a two-year period, in a Strategic Training and Transition Fund (STTF) to assist provinces and territories in providing programs that support the needs of workers affected by the economic downturn

    In addition to funding provided through Labour Market Agreements, the STTF assisted provinces and territories in developing initiatives to help meet the training needs of workers in affected communities and sectors so they could remain in their jobs or move to new jobs. New agreements were negotiated with Quebec and the three territories. Amending Agreements to Labour Market Agreements were also signed with all 13 provinces and territories to include the allocation for the STTF, enabling Canadians, whether or not they qualified for EI benefits, to participate in training or other employment programs. In 2009–2010, more than 70,000 Canadians received labour market services and programming funded by the STTF.

  2. increasing funding by $1 billion over two years for training delivered by provinces and territories through the EI program

    In addition to ongoing employment programming provided through Part II of the Employment Insurance Act, in 2009–2010, the Government of Canada provided $500 million in support of training and skills development programs to the provinces and territories through labour market development agreements. A new agreement was signed with the Government of Yukon. Then, in response to Canada's Economic Action Plan, Amending agreements for labour market development agreements were signed with all 13 provinces and territories. It is estimated that approximately 149,000 Canadians were served as a result of this incremental funding, with approximately 45,000 returning to work.

Improve and expand targeted program initiatives to support workers with skills and transition needs by:

  1. providing an additional $60 million for the Targeted Initiative for Older Workers (TIOW) over a three-year period (2009–2012) to enhance access to skills training and address the adjustment needs of older workers across a wider range of communities

    The additional funding made available through Canada’s Economic Action Plan made it possible for the TIOW to target a broader range of communities and enabled more older workers to receive the specialized support they need to make the transition to new jobs. Between April 1, 2009, and March 31, 2010, 100 new provincial/territorial TIOW projects were approved and 32 existing projects were extended. Once completed, these projects will have assisted approximately 7,300 unemployed older workers.

  2. investing an additional $100 million over three years (2009–2012) in the Aboriginal Skills and Employment Partnership program to support up to 25 new projects, which will result in the creation of 6,000 jobs for Aboriginal Canadians

    As of March 17, 2010, 20 projects had been approved, committing additional funding made available under Canada’s Economic Action Plan. These projects target 4,000 Aboriginal individuals to help them secure long-term jobs by 2012. As of March 31, 2010, 10 of these projects had been started, and the 10 remaining projects were expected to start in the first quarter of 2010–2011. These projects funded under Canada’s Economic Action Plan were in addition to the 16 ASEP projects already underway.

  3. investing $75 million in a new two-year (2009–2011) Aboriginal Skills and Training Strategic Investment Fund (ASTSIF)

    ASTSIF lays the groundwork for a successor to the Aboriginal Human Resources Development Strategy and also supports additional investments in training for Aboriginal individuals facing barriers to employment. A national and regional application process was completed for ASTSIF, yielding 86 approved projects. The national component of ASTSIF is being used to support initiatives that are partnership-based and national in scope and will produce tools, services or promising practices to enhance the range of client and business services provided under the successor to the Aboriginal Human Resources Development Strategy. The regional component of ASTSIFF will support training-to-employment, skills development and service improvement projects on a regional basis. ASTSIF funding has been fully committed, and results will be published at www.actionplan.gc.ca as soon as they are available.

  4. assisting youth by delivering targeted funding of $20 million over two years (2009–2011) through the Canada Summer Jobs program to enable more employers to hire summer students

    The Department concluded more than 22,000 agreements and helped create approximately 37,500 summer jobs for students in 2009. Over 3,500 of these jobs can be attributed to the additional funding received under Canada’s Economic Action Plan.

Help raise the number of completions and encourage young people to launch a career in one of the Red Seal skilled trades by implementing the Apprenticeship Completion Grant of $2,000 on an ongoing basis

The Apprenticeship Completion Grant was implemented in July 2009, with eligibility made retroactive to January 1, 2009 as part of Canada’s Economic Action Plan. This grant builds on the existing Apprenticeship Incentive Grant to encourage more Canadians to complete their apprenticeship in the Red Seal trades. In 2009–2010, the Department received 24,603 applications and issued 18,861 grants.

Invest $50 million over two years (2009 – 2011) in HRSDC’s Foreign Credential Recognition Program and Citizenship and Immigration’s Foreign Credential Recognition Office to develop a pan-Canadian Framework for the Assessment and Recognition of Foreign Qualifications in partnership with provinces and territories

The Pan-Canadian Framework for the Assessment and Recognition of Foreign Qualifications and an implementation plan were developed in conjunction with the provincial and territorial governments and were announced by the Minister of Human Resources and Skills Development in November 2009. HRSDC is co-leading the ad hoc Federal-Provincial/Territorial Foreign Qualification Recognition Working Group and overseeing the implementation of the Framework through the establishment of four task teams (Analysis, Consultation and Communication, Informing Sharing, and Metrics & Reporting).The Foreign Credential Recognition Program invested in 67 projects, 43 of which were supported by funding from Canada’s Economic Action Plan.

Initiatives under Strategic Outcome 2: Safe, fair and productive workplaces and cooperative workplace relations

Deliver core programs, such as the Wage Earner Protection Program (WEPP) that foster safety, fairness and productivity in workplaces under exclusive federal jurisdiction, and ensure that those programs are responsive to the economic challenges facing Canadian employers and workers.

Under Canada’s Economic Action Plan in 2009-2010,the federal government expanded the scope of the WEPP to include unpaid severance and termination pay and committed an additional $25 million per year to cover the new eligible amounts. As a result, HRSDC distributed nearly $35 million in WEPP payments to 16,264 Canadian workers.

Canada’s Economic Action Plan: Details by Initiative
  2009-2010 Financial Resources (millions of dollars)
Initiative Planned Spending Total Authorities Actual Spending
DIRECT PAYMENTS TO INDIVIDUALS / BENEFITS
Increase in EI Regular Benefits Duration (extra 5 weeks) 575.0 919.8 919.8
New Measures for Long-Tenured Workers - The Career Transition Assistance Initiative (EI) 250.0 15.0 15.0
EI Long-Tenured Workers (Extension of Regular Benefits) 165.0 214.6 214.6
Work-Sharing (EI) 100.0 211.2 211.2
Wage Earner Protection Program 25.0 22.6 22.5
Subtotal – Direct payments to Individuals / Benefits 1,115.0 1,383.2 1,383.1
CONTRIBUTION AGREEMENTS / OTHER PROGRAMS
EI Training Programs (LMDA Increased Funding) 500.0 500.0 500.0
Strategic Training and Transition Fund 250.0 253.5 253.5
Canada Summer Jobs Program 10.0 10.1 10.1
YMCA/YWCA Grants for Youth Internships 15.0 15.0 15.0
Targeted Initiative for Older Workers 20.0 20.0 5.2
Apprenticeship Completion Grant 40.0 40.0 39.4
Foreign Credential Recognition Program 17.5 17.5 8.3
Aboriginal Skills and Employment Partnership 20.0 16.8 8.4
Aboriginal Skills and Training Strategic Investment Fund 25.0 24.7 24.4
Aborignal Human Resources Development Strategy 25.0 25.0 23.4
Federal Public Service Student Employment Program - 1.5 1.5
Subtotal – Contribution Agreeements / Other Programs 922.5 924.1 889.2
TOTAL HRSDC 2,037.5 2,307.5 2,272.3

1.9 Voted and Statutory Items

Voted and Statutory Items
(in millions of dollars)
Vote # or Statutory Item (S) Truncated Vote or Statutory Wording 2007-2008
Actual
Spending
2008-2009
Actual
Spending
2009-2010
Main
Estimatesa
2009-2010
Actual
Spending
1 Operating expenditures 2,500.9 709.5 586.9 721.3
5 Grants and contributions 1,027.3 1,552.6 1,443.5 1,914.4
7 Write-off of Debts 0.4 - - 0.1
(S) Contributions to employee benefit plans 236.9 248.5 221.3 287.1
(S) Minister of Human Resources and Social Development - Salary and motor car allowance 0.1 0.1 0.1 0.1
(S) Minister of Labour - Salary and motor car allowance 0.1 0.1 0.1 0.1
(S) Old Age Security Payments 24,029.8 25,334.5 26,549.0 26,391.3
(S) Guaranteed Income Supplement Payments 7,406.7 7,511.5 8,091.0 7,736.6
(S) Universal Child Care Benefit Payments 2,474.3 2,547.8 2,544.0 2,593.6
(S) Canada Education Savings grant payments to Registered Education Savings Plans (RESPs) trustees on behalf of RESP beneficiaries to encourage Canadians to save for post-secondary education for their children 579.7 580.7 626.0 615.7
(S) Allowance Payments 518.2 531.2 557.0 534.9
(S) Canada Study Grants to qualifying full and part-time students pursuant to the Canada Student Financial Assistance Act 161.5 143.2 511.5 533.7
(S) Payments related to the direct financing arrangement under the Canada Student Financial Assistance Act 292.3 298.3 300.9 235.9
(S) Canada Learning Bond payments to Registered Education Savings Plans (RESPs) trustees on behalf of RESP beneficiaries to support access to post-secondary education for children from low-income families 35.8 47.8 43.0 56.7
(S) Payments of compensation respecting government employees and merchant seamen 39.5 46.2 40.0 37.1
(S) The provision of funds for interest and other payments to lending institutions and liabilities under the Canada Student Financial Assistance Act 36.3 22.9 31.9 11.6
(S) Wage Earner Protection Program payments to eligible applicants owed wages and vacation pay, severance pay and termination pay from employers who are either bankrupt or in receivership as well as payments to trustees and receivers who will provide the necessary information to determine eligibility - 3.7 31.2 35.0
(S) The provision of funds for liabilities including liabilities in the form of guaranteed loans under the Canada Student Loans Act (19.1) (14.5) 4.5 (9.5)
(S) Canada Disability Savings Grant payments to Registered Disability Savings Plan (RDSP) issuers on behalf of RDSP beneficiaries to encourage long-term financial security of eligible individuals with disabilities - 0.1 3.3 83.9
(S) Canada Disability Savings Bond payments to Registered Disability Savings Plan (RDSP) issuers on behalf of RDSP beneficiaries to encourage long-term financial security of eligible individuals with disabilities - - 1.9 42.9
(S) The provision of funds for interest payments to lending institutions under the Canada Student Loans Act 0.1 0.1 - 0.1
(S) Civil Service Insurance actuarial liability adjustments - 0.1 0.1 0.1
(S) Energy Cost Benefit 0.1 - - -
(S) Spending of proceeds from disposal of Crown Assets 0.1 0.1 - -
(S) Spending pursuant to section 12(4) of the Canada Education Savings Act - 0.1 - 0.3
  Total Budgetary 39,321.0 39,564.5 41,587.2 41,823.0
  Plus: Non-Budgetary        
  Loans disbursed under the Canada Student Financial Assistance Act 1,099.5 987.9 596.0 974.4
  Total Department 40,420.5 40,552.4 42,183.2 42,797.4
  Plus: Specified Purpose Accounts:        
  Employment Insurance costs 16,063.2 18,136.5 - 23,667.0
  Canada Pension Plan costs 28,135.7 26,699.1 - 31,096.4
  Other Specified Purpose Accounts costs 45.2 42.3 - 39.4
  Departmental Employee Benefit Plan recoverable from Employment Insurance Account and Canada Pension Plan (160.2) (166.1) - (197.5)
  Total Consolidated Expenditures 84,504.4 88,264.2 42,183.2 97,402.7
a As published in Main Estimates 2009-2010.