Ottawa announces $21M to boost hiring in B.C. construction industry

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The federal government has provided more than $21 million in funding for new construction industry apprentices through the British Columbia Construction Association.

Seniors Minister Kamal Khera made the announcement on behalf of the federal jobs minister Wednesday at the Craigflower Community and Performing Arts Centre in Esquimalt, B.C.

The new funding is intended to help small- and medium-sized construction businesses hire at least 2,100 first-year apprentices in red seal trades over the next two years, according to the minister.

B.C. companies with fewer than 500 employees can apply for incentives to hire new workers or register their existing apprentices in 39 construction trades.

The program is also intended to help businesses navigate the apprenticeship system and create welcoming and inclusive workplaces for new apprentice workers.

Ottawa says the funding will especially help Canadians who face barriers by providing double the financial incentives to businesses that hire from minority or "equity-deserving" groups.

Participating employers will receive $5,000 for hiring or registering any eligible worker, according to the BCCA. An additional $5,000 will be provided if the worker self-reports as a woman, new Canadian, LGBTQ+, Indigenous, disabled or a visible minority.

Employers can receive payments for up to two first-year apprenticeship positions per year during the two years of the program, for a maximum of $40,000 per employer, according to the association.

"B.C.'s construction industry is in a vice grip right now, and it’s tightening," said BCCA president Chris Atchison in a statement Wednesday.

"Employers are dealing with rising costs, material shortages, increased taxes, mandatory sick pay, labour shortages, and late payments," Atchison added. "It can be costly to hire and train new apprentices, and especially in this climate, $40,000 can go a good distance to alleviating some of that cost burden."

Businesses that receive the apprenticeship incentives are free to spend them at their discretion, including on things like hiring bonuses, equipment, child-care costs, training or new technology.

B.C.'s construction industry is 95 per cent male and has long been facing a shortage of skilled workers, according to the BCCA. Most companies in the industry are small, with 90 per cent employing 20 workers or less, the association said.