February 2020
Ontario to Contract Out Employment Services Managers

2020-02-20 5:41:29 PM

The provincial government is continuing to reform the employment services system by contracting out service system managers for the three regions currently piloting the new model.

The government says this approach will create an efficient employment service to meet the needs of all clients, be more responsive to local labour market needs, and drive results for job seekers, employers, and communities.  

The selected Service System Managers for each region are:

  • Region of Peel: WCG, part of the APM Group

  • Hamilton-Niagara: Fedcap Inc.

  • Muskoka-Kawarthas region: Fleming College

In the summer and fall of last year, any public, not-for-profit and private sector organizations were able to apply to manage employment services. The government says those selected were the “best positioned to manage the employment system and deliver results”. The organizations selected will be paid based on their results.

This model is expected to be implemented across the province in 2022 and will incorporate any lessons learned from the prototype regions.

Following this announcement, the Ontario NDP says the new model could result in contractors passing on challenging cases if it is not worth the fee. The party in opposition also stated that privatization efforts that have been tried in Austria and the UK did not create the desired results because companies were motivated to collect a fee and not help people find the right role. A recent report by the Maytree Foundation analyzing the employment and training services reform pointed to this as well. 

Other critics have also said that since two of the companies are not based Ontario (WCG is a Canadian subsidiary of the APM Group based in Australia; and FedCap Inc. is a HR firm based in New York City), it will be difficult for them to understand the clientele and local job markets.

For more information, please see below:

Ontario Newsroom: Ontario Moving Ahead with the Reform of Employment Services

CBC News: Hamilton-Niagara part of government pilot project to contract out employment services

AMCTO: Maytree Releases Report on Ontario's Social Services Reform

AMCTO: Prototype Regions for New Employment Services Announced


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