David Piccini urged to resign after funding approved for many applications ranked 'poor' or 'low'
Ontario labour minister David Piccini is facing questions following a report by auditor general Shelley Spence that raised concerns about how the $2.5-billion Skills Development Fund (SDF) has been managed.
Spence found that Piccini’s office had been heavily involved in choosing projects for funding and that money was allocated to lower-ranked applicants without documentation explaining why higher-ranked proposals were passed over.
While the application-selection processes are in compliance with provincial policies, program objectives and publicly released guidance, 549 (54%) of the applications selected by the minister’s office and approved for funding were ranked as “poor,” “low” or “medium” against the stated program objectives and other program criteria, said the report.
“These applications received about $742 million, or 56%, of the funding provided to SDF applicants over the SDF’s first five rounds.”
On the other hand, there were 670 applications that ranked “high” that were not selected for funding.
“The selection process was therefore not fair, transparent or accountable, and there was little rationale to explain why the high-ranked applicants were not chosen,” said the report.
Lower-scoring applicants approved for funding
Spence also found that more than 60 lower-scoring applicants were approved after they hired lobbyists. Some funding recipients were unions that had endorsed the Progressive Conservatives in past elections or individuals who had donated to the party.
As well, 39 high-ranked applications that were selected by the Minister’s Office, and received roughly $58 million in funding, had also hired lobbyists.
According to the auditor, there was also a lack of justification for some approvals.
“In Rounds 1 and 2 of the SDF, the Minister’s Office did not share a documented reason for why it selected the 388 funded applications, which collectively received $479 million in funding.
“Starting in Round 3, the Minister’s Office documented reasons why the Minister’s Office had selected individual applications. At times, the reasons provided by the Minister’s Office conflicted with Ministry staff’s evaluation of the selected applications.”
Calls for resignation of Piccini
All three opposition parties have called on Premier Doug Ford to remove Piccini from cabinet.
NDP Leader Marit Stiles said she supports the purpose of the fund but questioned how it was administered. “Every single dollar needs to go to working people,” Stiles said in a CBC article.
“It needs to go to training workers and what we found right now is that there is a cloud over the whole fund because of this minister’s misbehaviour, and it is ultimately at the premier’s feet.”
Liberal parliamentary leader John Fraser raised similar concerns, according to the article, describing the situation as the definition of a conflict of interest. He said in the legislature, “He’s used his influence to further his friends’ benefit. If you don’t think that’s wrong, that means you think it’s OK, that all this is good, that everything that’s happened in the Skills Development Fund is OK, if you don’t fire this minister.”
The Canadian Union of Public Employees (CUPE) Ontario called on Piccini to resign. “There must be a reckoning for these kinds of scandalous actions; anything less undermines public trust,” said CUPE Ontario president Fred Hahn in a statement.
Hahn described the auditor’s report as “deeply troubling” and said, “Minister Piccini should do the right thing and step aside. And if he won’t resign, premier Ford must act in the best interests of Ontarians and remove him.”
Labour minister defends skills fund
The auditor also noted that in other provinces, including Alberta, British Columbia, Manitoba, and Newfoundland and Labrador, ministers’ offices do not make specific funding decisions for similar programs.
Piccini has rejected calls for his resignation and defended the fund’s purpose. “This is about funding important programming that’s changing people’s lives, supporting first responders, supporting our construction sector,” he said, according to the CBC.
The labour minister told reporters that his office is implementing the auditor’s recommendations but said ministers should still play a role in advancing government priorities, Global News reported. “We’re never going to apologise for making those investments in those workers,” Piccini said. “We have to make sure we have construction workers on job sites.”
Launch of Skills Development Fund
In February 2021, the ministry launched the Skills Development Fund as an initiative to respond to emerging labour market challenges created by the COVID-19 pandemic. The program has since become a central part of Ontario’s workforce strategy, according to the government. It funds projects that address short-term workforce skills retraining and prepares workers and industries for long-term economic growth and innovation.
The fund is divided into two streams:
- Training Stream: This is the original stream of the fund, launched in 2021. It has funded selected applications over five rounds between 2021 and 2025.
- Capital Stream: Its purpose is to fund eligible applicants to build, upgrade and/or convert training centres to train people for emerging and in-demand jobs in critical sectors in Ontario’s economy. Eligible applicants include employers, professionals, industry or employer associations, and trade unions. Funded projects include multi-year projects. This stream’s first intake was launched in June 2023 and closed on October 10, 2023. A second round was launched on November 29, 2024, and is ongoing.
The Spence audit focuses on the Skills Development Fund Training Stream only.
