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The evaluation of the Federal Contractors Program conducted by the Evaluation and data Development Branch of Human Resources Development Canada (HRDC) has produced findings and conclusions of major significance for the future design and management of the Program.

This program extends the reach of the employment equity objectives expressed in the Employment Equity Act beyond the limits of the federal labour jurisdiction, and impacts over 800 large scale federal contractors employing over 800, 000 individuals.

The evaluation reveals that the Federal Contractors Program (FCP) could, have a significant positive impact on these large employers both in terms of employment equity objectives, and — which is very important to note — in terms of business performance. However, the evaluation concludes that as implemented, at the time of the evaluation, the program could not achieve either the goals set by Parliament or the expectations of its public stakeholders. In order to correct this serious situation, "significant changes" are required both to the organization and to the resources of the program. The evaluation also raises policy options, which could increase the impact of the program (such as by altering the thresholds determining which contractors are subject to the program), and these options would also have resource implications for administration.

Management of the Labour Program makes no comment on the policy issues raised in the evaluation report, which may be considered in due course by the Standing Committee now reviewing the Employment Equity Act.

Management accepts the findings of the evaluation regarding the implementation of the FCP, and regards the suggestions for improvement as extremely useful. Management believes that FCP effectiveness could be substantially enhanced by responding fully to the evaluation in such a way that both the employment equity objectives of the program could be fulfilled and at the same time important business performance objectives could be accomplished. In fact, it is management's view that the complementary potential of business objectives and employment equity objectives is an especially important aspect of the evaluation; but to pursue these dual objectives requires improved tools and contacts especially targeted to the employer community.

It should be noted that a number of the suggestions in the evaluation have already been addressed, specifically:

• Direction to the regions clarifying priorities and objectives which recommend 8 to 10 reviews per officer per year;
• The addition of seven new officers in the regions to augment the number of reviews;
• A thorough intensive training session for the training of new officers; and
• Upgraded operating tools for the officers. Additional tools are being developed.

Responses to other suggestions are underway, specifically:

• The upgrading of the data and management systems blending them into Labour's central information system - LA2000. This will provide a solid basis for future regular reporting;
• The improved changes to the program fundamentals. For example, by disallowing further contracts to organizations who withdrew their commitment to employment equity, this may result in better support from contracting departments;
• The development and addition of information material accessible through HRDC-Labour's web-site; and
• Improved communication linkages with all FCP employers.

In addition to the above, management takes note of the recommendations to clarify the policy regarding "equivalency" in the implementation of the FCP and the Employment Equity Act, to strengthen the role of headquarters in the administration of the program in a consistent manner, to increase the availability of information, advice and tools to assist employers in complying with the program, and generally to increase the resources allocated to the program. These steps would be needed to respond fully to the evaluation.

Finally, management is encouraged by the overall conclusion of the evaluation that the program should be retained and is potentially an effective mechanism of improving employment equity, and thereby responding to the needs of Canada's increasingly diverse workforce.