Government of Canada funding job creation in worker co-ops across Canada
June 24, 2000
FOR IMMEDIATE RELEASE
00-45
HONEY HARBOUR, ONTARIO - The Government of Canada is investing $1.9 million over the next two years to enable the Canadian Co-operative Federation to test the concept of a self-sustaining fund in order to support the establishment and maintenance of worker co-operatives across Canada.
The announcement was made today by the Honourable Andy Mitchell, Secretary of State (Rural Development) (Federal Economic Development Initiative for Northern Ontario), on behalf of the Honourable Jane Stewart, Minister of Human Resources Development Canada.
Worker co-ops are employee-owned enterprises where the members are the employees. Although not widely established in North America, worker co-ops have been in existence in industrialized European countries for over a century.
The $1.9-million in funding will be allocated through HRDC's Research and Innovation Program which is supported under Part II of the Employment Insurance Act. The Canadian Worker
Co-operative Federation's pilot fund will support up to 16 worker co-op projects and is expected to generate an average of 8 jobs, for a total of 128 new jobs. The pilot fund will only invest in co-operatives where jobs are threatened by shutdown, division closure or where jobs will be created in new or expanding co-ops.
"The objective of this project is to help Canadians collectively create and maintain jobs in their own communities," said Mr. Mitchell. "The project will assist the Government in exploring and assessing a new approach to job creation on a pilot basis with a targeted investment."
This project supports the Government of Canada's Jobs Strategy. This strategy is based on strengthening economic fundamentals and establishing a favourable climate for job creation by making strategic investments in priority areas where the government can make a difference - areas such as youth, trade, technology and infrastructure.
An independent evaluation based on results identified in the proposal will be a requirement of HRDC's support. Participants will benefit not only from the jobs created, but also from engagement as citizens through the co-operative model. Anticipated benef its include increased productivity, skills development, community capacity building and increased tax revenues as businesses become viable.
This project has been reviewed to ensure that Human Resources Development Canada's funding is in compliance with the Department's improved administration of its Grants and Contributions Programs.
PROJECT SUMMARY
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For further information:
Daniel Lavoie
Human Resources Development Canada
(819) 953-7250
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