Appendix B

MEASURES TO REDUCE ALLOWANCE EXPENDITURES

1. General

The Government's announcement of Federal expenditure reductions will affect the Canada Manpower Training Program as follows. The policies will come into effect for trainees commencing training October 2, 1978, or thereafter. Trainees in training prior to this date will continue to receive allowances to the end of their course at the rates and under the policies in effect at the time of their commencement of training.

2. Allowance Rates

3. The $10 basic rate will be considered as a course related expense and will, therefore, not be subject to deductions for absences. If such trainees are present at least one full day in a week and are in good standing on the course, they are entitled to the full $10.

4. Short courses

Trainees referred to courses which are of 10 training days duration or less are not entitled to income support.

5. Apprentices

It has been the practice to allow apprentices to receive allowances in lieu of UI benefits in cases where there are top-ups to normal wage levels by employers. Due to the fiscal restraints, however, apprentices will no longer be entitled to allowances except in the following situations:

1. the initial 2 weeks for potential claimants,

2. claimants disqualified and/or disentitled, and

3. those who do not qualify for UI benefits because of insufficient
   weeks of employment during the qualifying period.

This means that employers have two choices, either they continue to pay their apprentices whatever they wish during periods of formal apprenticeship training, or they issue a Record of Employment to permit the apprentice to draw UI benefits under Section 39 of the UI Act.

6. Immigrants

Assisted and family class immigrants on language training are not entitled to allowances. Only independent immigrants, refugees and Canadian migrants may receive allowances for this type of training. (For a breakdown of immigrant classifications see MA25 Circular #1 "Special Codes for Immigrants Attending Language Training").

7. Self-Employed

Allowances will no longer be provided to self-employed persons upgrading or adding to the skills they require for their normal self-employment occupation. Allowances will continue to be available, where applicable, to self-employed persons whose training involves the development of skills to be used in employment that is outside their primary occupation. This policy will apply equally to both husband and wife in cases where an under-taking is operated jointly. Many fishermen are eligible for UI benefits during winter months and may at that time be trained under Section 39 of the UI Act but are not eligible for allowances at any other time unless they meet the above criteria.