As Southwestern Ontario prepares for the effects of increasing U. S. tariffs, the federal government is launching a significant support initiative aimed at helping businesses stay afloat and retaining jobs.
John Zerucelli, Canada’s secretary of state for labour, joined London MPs Peter Fragiskatos and Arielle Kayabaga at Attica Manufacturing in London on Friday to discuss measures intended to assist workers and businesses during this evolving Canada-U. S. trade situation.
“This is what we’re fighting for, Canadian businesses, Canadian workers, and communities like London where we build things for other things,” Zerucelli said. “And, yes, Canada is going through a trade war, one that we did not choose and London and southern Ontario are on the front lines.”
Ottawa is rolling out a $7.5-billion package of new and enhanced supports, which includes $3.5 billion designated for workers and employers, $2 billion through the Canada Strong Diversification Fund, $1.5 billion via the Regional Tariff Response Initiative, and $500 million in liquidity support from the Business Development Bank of Canada.
“We recognize the challenge that lies ahead,” Kayabaga said. “And these discussions along with our investments into workers and businesses are what will guide us to better times.”
The $3.5-billion Rapid Response Supports for workers and employers package consists of extended Employment Insurance measures as well as training opportunities for those impacted by tariffs.
“We are eliminating the one-week waiting period for EI,” Zerucelli stated. “Workers won’t have to use their severance before getting EI. Plus long-tenured employees who need it can receive up to 20 extra weeks of benefits. The goal is straightforward: if your job has been affected by these tariffs, we’ll be here to help you.”
While Fragiskatos mentioned that “nobody wants to see layoffs,” the government is preparing just in case.
“That’s why the government has taken steps to make employment insurance more accessible and streamlined than ever before,” he noted.
Support also exists for companies looking to purchase equipment to enhance competitiveness or explore new markets; Fragiskatos indicated that funding would be assessed individually based on applications from businesses.
Attica Manufacturing received $750,000 in federal assistance via Fed Dev Ontario back in May to upgrade its high-precision metal component operations.
Owner Andy Mavrokefalos shared that this funding enabled his company to invest in “the latest machining technology, strengthen our capabilities, improve our competitiveness, and most importantly, continue building opportunities for our skilled workforce here in London.”
“These investments aren’t just about acquiring machinery,” Mavrokefalos explained. “They represent investments in people, productivity, innovation, and ultimately fortifying Canadian manufacturing’s future.”
The federal government will keep an eye on business needs as the trade conflict progresses; Fragiskatos emphasized this point.
“This marks the start of federal support during a very turbulent time,” he stated.
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