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Ontario Minister of Labour David Piccini says he welcomes a review of the $2.5-billion Skills Development Fund by the province’s auditor general, calling such audits an “important pillar in democracies.”

Piccini was asked about the review and also a rift among major Ontario labour organizations over the SDF program – he called the split “disappointing.”

LIUNA has pulled out of the Ontario Federation of Labour over the OFL’s criticisms of the training fund and other grievances, while the Ontario Public Service Employees Union (OPSEU) has issued a report that accuses the Doug Ford government of pursuing an agenda to “systematically defund Ontario colleges” and “cultivate non-college training programs.”

OPSEU called out the SDF program as a “black box” lacking in transparency.

“This is such an important program, and I think it can only be strengthened with the review from the auditor general,” said Piccini. “When I get the report from the auditor general, I look forward to reviewing it and working with her office to improve the program.”

Support for training centres

Ontario’s building trades unions have been major beneficiaries of SDF funding.

Over five years, the SDF Training Stream has supported the training of over 154,000 construction workers, according to government documents, while its Capital Stream has topped up funding for multiple new training centres such as the International Union of Operating Engineers’ (IUOE) $25-million crane-training facility in Barrie.

On Sept. 11 Queen’s Park announced it will spend $26 million towards a new training centre at LIUNA’s training campus in Vaughan.

Ten thousand OPSEU members who are college support staff have been on strike since Sept. 11. That day, the OFL issued a statement supporting OPSEU and denouncing the government for funding “private training companies” through the SDF.

At the same time, LIUNA executives Joe Mancinelli, Victoria Mancinelli and Jack Oliveira published several social media posts and releases critical of OPSEU and the OFL for their statements on the SDF.

Victoria Mancinelli posted on X, “Beyond shameful – though not surprising – to see some in the labour movement attack private-sector union collaboration with Minister @DavidPiccini.”

In a letter to OFL president Laura Walton announcing LIUNA’s decision to leave the organization, Oliveira wrote, “In recent years it has become increasingly clear that the OFL has chosen a path that favours ideology over collaboration, and politics over progress.”

A post from Joe Mancinelli on LinkedIn stated, “We will return when the OFL starts treating private sector unions fairly as opposed to favouring public sector unions to the detriment of LIUNA.”

Victoria Mancinelli said in an interview the decision to leave the OFL was a long time coming, and she referred to older OFL statements she said attacked a range of Ford government policies including infrastructure spending.

“This recent attack by OPSEU supported by the OFL directly attacks our members in the private sector, working in construction, who have received investments through the Skills Development Fund that have yielded prosperous career opportunities for numerous groups, whether it’s our training cohorts, with youth at risk, with marginalized communities, with women in trades, with our community centres,” she said.

“They will never, ever agree or support anything that the Ford government says or does, simply because they are Conservative government.”

Walton said she has stated repeatedly on social media and at rallies the OFL is targeting SDF funding of private companies, not construction unions.

“I believe that the Skills Development Fund should be in place for union training opportunities,” said Walton. “I actually think it should be standardized. I don’t think that it should be a situation where these unions have to reapply year after year and wait for approval.”

Walton praised the union training model, where members’ fees support most of the training and SDF funds are a top-up. That contrasts with other private firms receiving “huge amounts of money” without the rigorous reporting processes the unions have.

Asked for a response to Walton’s comments, Victoria Mancinelli called them “lip service” and “performative.”

“Our decision remains and is not limited to this one occurrence.”

IUOE to remain

Mancinelli, IUOE Local 793 business manager Mike Gallagher and Carpenters’ Regional Council executive secretary treasurer Jason Rowe all offered outlines of the reporting processes their unions use for SDF funding and praised it as an important complementary support to union training.

“We have consistently met the KPIs outlined for our organization within the reporting requirements, even exceeding them in many cases, something we are extremely proud of,” stated Rowe. “SDF is a long-overdue recognition of the value of union training.”

Gallagher said in the last 15 years, his local has spent $275 million on training, and government top-ups “pale in comparison to the amount that we’ve invested ourselves.”

Addressing an OPSEU statement on placement rates of graduates, Gallagher said colleges do a good job but “we’re more like about 95-per-cent placement, because we’re directly connected to the industry.”

Gallagher said the IUOE will remain a member of the OFL and “will work within the federation as normal to deal with any issues and seek compromise.”

Piccini suggested OPSEU should do its “homework” in its discussion of beneficiaries of SDF funding.

“We believe in the power of the SDF to change lives for those who’ve gone through the program, deliver for workers and the next generation of our workforce,” he said. “It’s OPSEU members benefiting to the tune of over $334 million in SDF supports.”

As for transparency, Piccini said every round of SDF funding is published online and application criteria are publicly posted in the guidelines.

“I think it’s really disappointing that they’re pitting the labour movement against each other,” he said of OPSEU. “I don’t think it’s going to serve them well.”

OPSEU did not respond to requests for comments.