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On this important day, some for-profit organizations closed for the day leaving families and staff searching for alternative care for their children. Some of these organizations have also announced publicly they intend to withdraw from CWELCC, leaving many families wondering what’s going on with the initiative and whether there is any risk of their centre closing or withdrawing from the program.
Why some operators are upset
The new funding formula limits the annual surplus or profit allowance to eight per cent. For-profit operators argue this cap restricts their ability to generate unlimited profits. However, we believe this measure is necessary to maintain the quality of care and ensure that funds are directed toward enhancing services and compensating staff fairly.
They are also pushing back on accountability requirements, like the submission of annual audited statements.
We at Umbrella Family and Child Centres of Hamilton believe it is reasonable and fair to limit things like profit within the funding formula, so the majority of CWELCC investments go toward the children. We also believe we have a responsibility to be transparent and accountable for the public monies we receive to deliver our services.
Additionally, operators who chose not to join the CWELCC program will lose access to government funding, such as wage grants, starting Jan. 1, 2025. This decision aligns with the principle of accountability to taxpayers and ensures public funds support those committed to the program’s goals.
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The Umbrella is proud to have the support of CUPE representing our employees. The research is clear that child care organizations represented by unions offer better pay and working conditions for its staff. Unionized child care also delivers better quality programs than non-unionized or for-profit child care.
Is CWELCC perfect? No. Will it take time to fully implement? Yes. Will there be hiccups along the way? Absolutely.
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