Human Resources Committee on May 28th, 2026

[The Chair (Robert Morrissey (Egmont, Lib.)), Liberal, Bobby Morrissey]

Good morning everyone.

Welcome to meeting number 38 of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.

Pursuant to the motion adopted on Thursday, April 23, the committee is meeting on the main estimates 2026-27 for the first hour, and on homelessness in Canada for the second hour, pursuant to the motion adopted on Monday, May 4.

Today's meeting is taking place in a hybrid format, pursuant to the Standing Orders. Members or witnesses will be appearing online.

Before we begin, I remind all those in the room to please silence your devices and refrain from tapping the microphone boom, for the benefit of our interpreters.

You have the option of participating in the official language of your choice. Please select the correct channel to ensure that you are on the language you choose to participate in. If you're appearing virtually, click on the globe icon at the bottom of your Surface. Choose the official language of your choice. If there is an interruption in interpretation, please get my attention and we'll suspend while it's corrected.

Please direct all questions through me, the chair, and wait until I recognize you before proceeding.

Those who are appearing virtually have been sound-tested, and the sound quality meets requirements for interpretation.

Pursuant to Standing Order 81(4), I will now call vote 1 under the Department of Employment and Social Development and welcome Minister Hajdu this morning.

Welcome again, Minister. You appear here a lot. Thank you.

Also attending are Paul Thompson, deputy minister; Robert Wright, deputy minister of labour and associate deputy minister of employment and social development; Cliff Groen, associate deputy minister of employment and social development and chief operating officer for Service Canada; and Serena Francis, chief financial officer.

Minister Hajdu, you have up to five minutes for your opening statement.

[Patty Hajdu, Liberal, Minister of Jobs and Families]

Thank you very much, Mr. Chair.

Good morning, colleagues. It's a pleasure to be here with you today on the traditional and unceded territory of the Algonquin people.

I am with people you know very well: Paul Thompson, deputy minister of ESDC; Cliff Groen, associate deputy minister of ESDC and chief operating officer for Service Canada; Rob Wright, deputy minister of labour and associate deputy minister of ESDC; and Serena Francis, chief financial officer.

This is obviously a pivotal moment for all of Canada and all Canadians. Our government has been working, as you know, to strengthen Canada's economic and social security, and to give all Canadians a fair chance to succeed at every stage of life. This includes helping Canadians build the skills they need in a rapidly changing labour market. Our goal at ESDC is to ensure that young Canadians are ready to seize the opportunities of the future.

This is the reality we need to acknowledge: Canada is facing a serious shortage of skilled workers.

Our spring economic update, “Canada Strong for All”, is our clear commitment to meeting that challenge by strengthening today's workforce and preparing Canadians for the jobs that the economy and businesses urgently need across the country.

Central to our government's plan is building major infrastructure, building more homes and creating strong communities. We're building homes that Canadians can afford so that a new industry can take on the world. We're also modernizing critical infrastructure and strengthening our national defence capacity.

Achieving all of those objectives requires a highly skilled workforce, which is why the spring economic update announced a $6-billion nationwide effort to recruit, train and hire 100,000 new Red Seal trades workers in the next five years. That is ambitious. The strategy is focused on three pillars: recruitment, training and hiring.

Collectively, we need to restore honour to the skilled trades and promote them as the great-paying careers they are to young Canadians. That's why we're taking action. We are investing $2 billion to support young Canadians to learn about and enter the skilled trades. This investment will build on provincial and territorial work and will provide paid entry-level work experience, opportunities to connect with employers and the support needed to pursue a career in the skilled trades.

We will help employers cover up to $10,000 of an apprentice's first-year salary to ensure skilled trades workers have a place to practise their skills, learn and refine them. We will also modernize the Red Seal program. We will expand the union training and innovation program to support certifications in Red Seal trades, with $331 million in funding over five years, starting in 2026-27.

As direct financial support, apprentices will also receive a $400 weekly top-up while they attend their in-class training, in addition to the EI benefits for which they're eligible. We'll also support employees during periods of layoff in their training and make sure they have what they need to stay on the pathway of completing their Red Seal. I'm looking directly at Mr. Reynolds, because he has been through that journey and he knows how perilous it can be. We will also provide a one-time $5,000 apprenticeship completion bonus to those who obtain certification in a Red Seal trade.

The proposed measures will help us mobilize youth.

But at the end of the day, it comes down to affordability.

We've extended the temporary 40% increase to Canada student grants and the temporary increase to the weekly Canada student loan limit of $300 for the 2026-27 academic year. About 571,000 students are expected to benefit from the increase to non-repayable grants, and 422,000 students could benefit from the weekly loan limit increase. These measures will help ensure Canadians can access the education and training they need to participate fully in Canada's economy.

The workforce measures in budget 2025 were meant to tackle immediate challenges. With the spring economic update 2026, we have turned to proactive measures. That’s where the Canada Strong Fund fits in.

As the Prime Minister has said, “Canada's next chapter of growth starts with investing at home.” Since September 2025, the government has invested more than $126 billion to advance major projects across energy, critical minerals and transportation infrastructure.

The spring economic update announced the government's intention to create the Canada strong fund. Through an initial federal contribution of $25 billion, the fund will invest in strategic projects and companies that keep us competitive.

We won't do it alone. Canadian companies, alongside global investors, are helping build the energy, transportation and telecommunications infrastructure that will bring Canada into the next generation.

Building a strong workforce requires continued effort and investment, but we're well equipped to meet these challenges. This is how we build Canada strong for all.

Thank you very much.

[The Chair, Liberal, Bobby Morrissey]

Thank you, Minister.

We will begin with Mr. Genuis for six minutes.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Good morning, Minister.

To justify sending airline workers back to work, you claimed that it was necessary to prevent disruption of shipments of organs and life-saving pharmaceuticals. Was that claim true?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

It was. In fact, airlines not only transport people, but transport a tremendous amount of cargo, including critical medical equipment.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

So it was your view or position that the strike was going to cause a shortage in the supply of these materials. Is that true?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

Airlines regularly transport more than humans. They transport critical ingredients, medication and, yes, even live human organs.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

I understand that, Minister, but you said there was a risk to the safety of Canadians, implying that there wasn't capacity available on other airlines.

Is it true that this strike posed a risk to the safety of Canadians in the way you described?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

The question has been asked and answered.

I will reiterate that the briefings I received included the disruption not only to human travel, but certainly to the transportation of many critical ingredients, including medical ingredients.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

You're claiming that you were briefed to that effect.

Mr. Thompson, can you advise the committee as to whether you or other officials briefed Minister Hajdu that shortages of organs and critical pharmaceuticals would result from the continuation of the strike?

It's a yes-or-no question. Did you brief the minister to that effect?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

Mr. Wright was not there.

[Robert Wright, Deputy Minister of Labour and Associate Deputy Minister of Employment and Social Development, Department of Employment and Social Development]

It was not me, personally. This is the—

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Did officials brief the minister to that effect?

[Robert Wright]

We can certainly do some follow-up on that.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

You'll undertake to come back to the committee on that matter. Thank you very much.

Minister, three weeks ago, Conservatives announced a proposal for substantial reforms to parental leave in order to make the system more flexible, allowing parents to pause and resume their leave, to learn while on leave and to offer paid caregiving services to friends and family while on leave.

At the time, you said that you'd look at the proposal. Thank you for that. Three weeks on, I wonder if you can share whether this is a proposal you would be prepared to implement.

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

We have done a tremendous amount of work on parental leave, and we're constantly reviewing the measures that are available for parents. We will continue to look at those proposals.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

You said that you'd look at constructive proposals put forward by the opposition. I wonder if you have any feedback on these specific proposals. If you're not prepared to provide that feedback yet, I wonder if you could undertake to come back to the committee with that feedback, perhaps in writing.

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

Absolutely.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

What's a timeline that's fair to you and your department?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

We'll get back to you on the timeline as well. I'll confer with the department.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Thank you. We'll look forward to the feedback on this proposal. I can tell you that even traditional Liberal supporters online have shown great support for this proposal so far. I think it could be an area of consensus and common action that makes life easier for parents.

One of the recommendations in this committee's recent report on youth unemployment is to “apply strict penalties to companies hiring illegal workers.” Do you support this recommendation?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

Yes. We have an enforcement branch, through the labour team, that specifically looks at undocumented illegal workers. Of course, we do this in partnership with IRCC.

In terms of our role, we are specifically there to enforce the Canada Labour Code for federally regulated workers and to make sure anyone using temporary foreign workers complies with the LMIA process.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Thank you, Minister. I appreciate that. I think that's clear.

Do you think it's appropriate for the government to give public subsidies to companies that have been found guilty of hiring illegal workers?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

I'm sure you're referring to a specific case. We're always interested in examining specific cases. I'd be happy to look at that if you provide the specific case.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Your government is aware of this specific case because it was provided to me in an Order Paper question. It's the case of a company called Ichiboshi L.P.C. in New Brunswick. “L.P.C.” doesn't refer to the Liberal Party, I assume. It's a seafood processing company. They received subsidies from your government on multiple occasions after they fired Canadian workers and then illegally employed foreign nationals.

Is there any explanation for why a company that fired Canadian workers and then replaced them with illegally hired foreign nationals would receive multiple rounds of government subsidies?