Agreement to Amend the Canada-British Columbia Labour Market Development Agreement

List of acronyms and abbreviations

BC: British Columbia

British Columbia: The Government of British Columbia

Canada: The Government of Canada

EI: Employment Insurance

LMDA: Labour Market Development Agreement

Between

The Government of Canada, hereinafter referred to as "Canada", as represented by the Minister of Employment and Social Development styled as the Minister of Families, Children and Social Development and the Canada Employment Insurance Commission.

And

The Government of British Columbia, hereinafter referred to as "British Columbia", represented by the Minister of Social Development and Poverty Reduction.

Hereinafter referred to as “the parties”.

Preamble

Whereas the parties concluded the Canada-British Columbia Labour Market Development Agreement (“Canada-British Columbia LMDA”) on February 20, 2008;

Whereas the Canada-British Columbia LMDA was amended on April 9, 2009, September 1, 2015, December 15, 2016, March 27, 2018, and March 23, 2019;

Whereas Canada has announced targeted support measures for workers affected by economic adjustments in the steel and aluminum industries;

Whereas the steel and aluminum industries and related industries are currently facing economic adjustments which have resulted in negative impacts on Canadian jobs and workers;

Whereas Canada is prepared to provide a time-limited targeted increase to the federal contribution to the costs of BC Benefits and Measures for fiscal year 2019 to 2020 provided under the Canada-British Columbia LMDA to support workers that are directly or indirectly affected by these economic adjustments;

Therefore, the parties agree as follows:

Clauses

1. The Canada-British Columbia LMDA, as amended from time to time, is amended by adding the following heading and Article after Article 14G:

   “Targeted Time-Limited Increase in Contribution to Costs of BC Benefits and Measures to Support Workers in the Steel and Aluminum and Related Industries

   14H Notwithstanding anything in Article 14, in fiscal year 2019 to 2020, Canada agrees to increase the maximum contribution payable to British Columbia under Article 14 based on the following allocation methodology, rounded to the nearest dollar.

   A minimum allocation of $500,000 is provided to British Columbia if there is direct and indirect employment in steel and aluminum in the Province of British Columbia and where the following formula results in an allocation below $500,000:

   (A/B) x $25 million

   Where:

   A is the number of workers directly and indirectly employed in the steel and aluminum industries in British Columbia in 2016, and

   B is the total number of workers directly and indirectly employed in the steel and aluminum industries in Canada in 2016.

   If British Columbia is not receiving the minimum allocation and where there is direct and indirect employment in steel and aluminum in the Province of British Columbia, the maximum contribution payable under Article 14H towards the costs of BC Benefits and Measures is determined by the following formula, rounded to the nearest dollar:

   (A/B) x C

   Where:

   A is the number of workers directly and indirectly employed in the steel and aluminum industries in British Columbia in 2016;

   B is the total number of workers directly and indirectly employed in the steel and aluminum industries in Canada in 2016; and

   C is the $25 million investment to support workers in the steel and aluminum industries made available to provinces and territories, less the amount distributed under the $500,000 minimum allocation.

   Direct employment in the steel and aluminum industries is based on Statistics Canada’s 2016 Census Table 98-400-X2016290 and North American Industry Classification System codes 3311, 3312 and 3313.

   Indirect employment in the steel and aluminum industries is based on a National Job Multiplier of 3.14 for North American Industry Classification System code 3311, 3.01 for North American Industry Classification System code 3312, and 2.20 for North American Industry Classification System code 3313.”

2. The Canada-British Columbia LMDA, as amended from time to time, is amended by adding the following heading and Article, after Article 16.7:

   “Targeted Time-Limited Increase in Contribution to Costs of BC Benefits and Measures to Support Workers in the Steel and Aluminum and Related Industries

   16.8 Canada will make payments of its increase in contribution to British Columbia towards the costs of the BC Benefits and Measures as determined under Article 14H in 2 installments, as follows:

   16.8.1 The amount of the first installment equal to one-half (50%) of the increase determined under Article 14H will be paid upon the signing by both parties of this amending agreement; and

   16.8.2 The amount of the second installment equal to one-half (50%) of the increase determined under Article 14H will be paid upon a written request from British Columbia, and such request must be received by Canada no later than February 3, 2020.”

3. The Canada-British Columbia LMDA, as amended from time to time, is amended by adding the following, after Article 8.5:

   “8.6 The parties agree that results measurement and reporting related to the increase of funding provided under Article 14H for fiscal year 2019 to 2020, will be consistent with the process described in Annex 4 to this Agreement entitled ‘Performance Measurement Strategy and Targets’. ”

4. This amending agreement will not impact the allocation methodology established by Canada for allocating among provinces and territories the funding approved each year by Canada for expenditures under Part II of the Employment Insurance Act (currently $1.95 billion per year), which, the Parties acknowledge, is the allocation method described in the letter dated June 26, 1996, from the Deputy Minister of the Department of Human Resources Development to the Deputy Minister of Education, Skills and Training.
5. In all other respects, the Canada-British Columbia LMDA shall remain unchanged.
6. This amending agreement shall be read together with the Canada-British Columbia LMDA as amended from time to time and takes effect as if its provisions were part of the Canada-British Columbia LMDA.
7. This amending agreement comes into force once it has been signed by both parties.

Signed on behalf of Canada in Gatineau this 1 day of August 2019

Signed on behalf of British Columbia in Victoria this 14 day of January 2020