Federal government announces $102.7M worker retention grant, new workforce alliances in Windsor

The federal government was in Windsor on Tuesday, announcing supports for workers facing layoffs. CTV Windsor’s Chris Campbell has the details.

The federal government is expanding supports aimed at protecting workers facing layoffs and helping industries adapt to economic pressures, including tariffs and rapid technological change.

Speaking Tuesday at Unifor Local 444, Jobs and Families Minister Patty Hajdu announced the launch of five new Workforce Alliances in priority sectors and a $102.7-million Worker Retention Grant for employers participating in the federal Work-Sharing program.

The new grant will allow employers with active Work-Sharing agreements to top up employee income while workers receive Employment Insurance and participate in training. Eligible workers could maintain earnings at levels closer to their normal wages — up to 70 per cent of full-time pay — while upgrading their skills.

“Canada’s workforce is strongest when employers and training partners work together,” Hajdu said. “These investments will help empower Canadian workers with the skills they need to adapt.”

The Workforce Alliances will bring together employers, unions and training institutions in six key sectors: advanced manufacturing, housing and construction, transportation and supply chains, energy and electricity, mining and minerals, and the care economy.

The federal government will invest $81 million over five years to support the alliances’ work in identifying labour shortages and aligning training with industry needs.

Officials say the announcement builds on measures first unveiled earlier this month by Prime Minister Mark Carney, including a Workforce Alliance in advanced manufacturing.

Hajdu said the goal is to ensure workers can continue training even during temporary layoffs.

Work-Sharing applications have grown 85 per cent year-over-year, according to federal figures, with more than 2,000 applications received between January 2025 and January 2026. Approximately 80 per cent were linked to tariffs, and more than 1,400 tariff-related applications have been approved, helping prevent roughly 20,000 layoffs and affecting more than 52,000 workers.

James Stewart, president of Local 444, said maintaining a strong auto manufacturing sector in Windsor is critical.

“Maintaining a strong auto manufacturing sector in Windsor and across Canada is vital to supporting our communities and protecting our economy,” Stewart said in a statement.

“We welcome the government’s investment in training and EI supports, as they are essential in securing long-term success,” Stewart said.

In addition to the new grant, the federal government said it will provide employment assistance and reskilling supports for up to 66,000 workers across Canada through a $570-million investment delivered through labour market agreements with provinces and territories.

Hajdu also highlighted the importance of cross-border trade and infrastructure, saying the Gordie Howe International Bridge is going to provide economic benefits to both Canada and the United States, stressing officials on both sides of the border continue to work to open it, adding both economies depend on the free flow of commerce.