Announces plans for tax credit for children’s artistic activities as part of the Next Phase of Canada’s Economic Action Plan

BRAMPTON, ONTARIO – Prime Minister Stephen Harper today visited T.A. Brannon Steel Ltd., where he highlighted the company’s highly successful participation in the Government’s Work-Sharing Program, a key component of Canada’s Economic Action Plan. The Prime Minister was joined by Diane Finley, Minister of Human Resources and Skills Development.

“When the global recession hit, our Government took decisive action – including the Work-Sharing Program – to help support workers and their communities,” said the Prime Minister. “Our efforts have been remarkably successful and moving forward, we will continue to focus on what matters most to Canadian workers, their families and their communities. This means keeping taxes low, supporting job creation, and investing in innovation, research, and training.”

Work-Sharing is designed to help companies facing a temporary slowdown in business avoid layoffs by offering Employment Insurance to workers who are willing to work a reduced workweek.

T.A. Brannon Steel joined the Work-Sharing Program in 2009. As a result of its participation, the company was able to avoid the layoff of approximately 35 employees. It is one of many companies across the country that has turned the corner and is now benefitting from national and international demands.

The Prime Minister also previewed the Next Phase of Canada’s Economic Action Plan in a speech to the joint Brampton-Mississauga Board of Trade, where the Prime Minister announced plans for a new tax credit for children’s artistic activities. 

“The family is the basic building block of Canadian society,” said the Prime Minister. “That’s why the Next Phase of Canada’s Economic Action Plan will contain new support for Canadian families and communities, including a tax credit for children’s participation in artistic activities.”


For more information on Work-Sharing, visit: http://www.servicecanada.gc.ca/eng/work_sharing/index.shtml




Backgrounder


WORK-SHARING PROGRAM

Work-Sharing is an adjustment program to help employers and employees avoid temporary layoffs when there is a reduction in the normal level of business activity beyond the control of the employer. It provides income support to employees eligible for Employment Insurance benefits who work a temporarily reduced workweek. Work-Sharing Agreements must be agreed upon by both employee and employer representatives and approved by Service Canada. Agreements have a minimum duration of six weeks.

The program benefits all parties involved. It enables employees to continue working and keep their skills up to date. Organizations benefit by retaining the talents of experienced workers while avoiding expensive rehiring and retraining costs.


Through Canada’s Economic Action Plan, the Harper Government extended the duration of Work-Sharing to a maximum of 52 weeks, and provided greater flexibility in the qualifying criteria. Year 2 of Canada’s Economic Action Plan further extended existing or recently terminated agreements by an additional 26 weeks, up to a maximum 78 weeks and continued to ease the eligibility requirements for new agreements.

This temporary measure is estimated to be worth approximately $311 million over two years.
Between February, 2009 and February, 2011, more than 277,000 individuals have benefitted from over 10,000 Work-Sharing Agreements.
Located in Brampton, Ontario, T.A. Brannon Steel has been supplying quality carbon steel parts to equipment manufacturers and custom fabricators throughout Canada and the United States since 1968. The privately-held company employs 111 workers. Since joining the Work-Sharing Program in 2009, more than 75 of its employees have participated in the initiative and T.A. Brannon Steel was able to avoid the layoff of approximately 35 workers.
For more information on Work-Sharing, visit: http://www.servicecanada.gc.ca/eng/work_sharing/index.shtml