Cambridge Chamber of Commerce

While the recent unveiling of a national child-care deal should come as welcome news to many business owners facing labour issues, child-care experts say there are still some important issues that will need to be addressed pertaining to the new plan.

 

“The intention is really good, but we just have to figure out what this will look like along the way,” says Jaime Jacomen, Leader of Operational Excellence at YMCA of Three Rivers, referring to the deal which aims to have $10-a-day childcare in place by September of 2025.

 

The plan, which affects licensed child-care centres and licensed home care providers only, was solidified at the end of March when the Ontario government became the last to sign on resulting in fees reduced up to 25% to a minimum of $12 a day starting April 1. 

 

Rebates are also to be issued to parents of children aged five and under starting in May retroactively to April 1 and further reductions are on tap leading to the 2025 ‘goal’. The federal government has also invested an additional $2.9 billion for a sixth year of the agreement.

 

“I see this $10-a-day plan as a good starting point in helping working parents, but is it enough?” asks Tina Kharian, owner of Gravity Hair Design in Cambridge. “It’s hard to say as we also need to ensure enough daycare spots are available and qualified providers for all families.”

 

The deal outlines the creation of 86,000 child-care spaces (including more than 15,000 spaces already in place since 2019), representing a mix of for-profit and not-for-profit.

While she welcomes the extra spaces, Jaime admits she wonders where they will be created.

 

“It’s a bigger process,” she says, noting increasing child-care access comes along with new school builds.

 

Also, Jaime says the wage plan set out in the deal – which will see minimum-wage floors for child-care workers of $18 an hour and $20 an hour for supervisors, plus an additional $1 an hour until the floor hits $25 an hour – won’t be enough.


“Many early childhood educators are making over that already, so that’s not any additional incentive,” she says. “The government seems to be wanting to address the affordability issue and access for families. But in order to have all of that access, you need to build that early childhood education workforce.”


However, Jaime remains optimistic and says the YMCA’s provincial body has been engaged with the Province about this issue for some time.


“We do think this is something that needs to happen,” she says.


Tina agrees and says a national child-care system is vital for our economy to fully recover.


“As business owners, we should be welcoming this because having affordable, quality daycare for all families will increase labour force participation, especially in our business (hair salon) since most stylists are women,” she says.


The Ontario Chamber of Commerce’s 2020 report The She-Covery Project: Confronting the Gendered Economic Impacts of COVID-19 in Ontario outlined a series of recommendations to offset both the immediate and longer-term challenges women face. Among these were calls for a short-term child-care strategy to weather the pandemic and longer-term reforms to improve accessibility and affordability.


“We risk turning back the clock on decades of progress if we do not take a hard look at the challenges facing women and plan for recovery with women at the table and a gender and diversity lens on strategies, programs and policies,” said Dr. Wendy Cukier, Diversity Institute Founder and Academic Director of the Women Entrepreneurship Knowledge Hub in the report.

 

Here's what parents can expect in the coming months:

  • As of April 1, 2022, families with children five years old and younger in participating licensed childcare centres, including licensed home care, will see fees reduced up to 25 per cent to a minimum of $12 per day.
  • Rebates, retroactive to April 1, will be issued automatically starting in May. The rebate is in place to account for child-care operators that may need extra time to readjust their fees. 
  • In December 2022, fees will be reduced further to about 50% on average.

The deal outlines a plan to further slash rates in the coming years. Here's what the longer-term outlook includes:

  • In September 2024 fees will be reduced even further.
  • A final reduction in September 2025 will bring fees down to an average of $10 per day.
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