Agreement to amend the Canada - Newfoundland and Labrador Labour Market Development Agreement
Information for reference
This text copy of the bilateral transfer agreement between the Government of Canada and Newfoundland and Labrador is provided for reference and research purposes only. The final signed version of the agreement is the official version between the parties.
List of acronyms and abbreviations
Canada: The Government of Canada
EI: Employment Insurance
LMDA: Labour Market Development Agreement
NL: Newfoundland and Labrador
Newfoundland and Labrador: The Government of Newfoundland and Labrador
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 Newfoundland and Labrador, hereinafter referred to as “Newfoundland and Labrador”, represented by the Minister of Advanced Education, Skills and Labour and the Minister for Intergovernmental and Indigenous Affairs.
Hereinafter referred to as “the parties”.
Preamble
Whereas the parties concluded the Canada-Newfoundland and Labrador Labour Market Development Agreement (“Canada-Newfoundland and Labrador LMDA”) on September 4, 2008;
Whereas the Canada-Newfoundland and Labrador LMDA was amended on June 22, 2009, March 2, 2017, March 28, 2018 and March 25, 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 NL Benefits and Measures for fiscal year 2019 to 2020 provided under the Canada-Newfoundland and Labrador LMDA to support workers directly or indirectly affected by these economic adjustments;
Therefore, the parties agree to amend the Canada-Newfoundland and Labrador LMDA, as amended from time to time, as follows:
The Canada-Newfoundland and Labrador LMDA is amended by adding the following heading and Article after Article 14E:
“Targeted time-limited increase in contribution to costs of NL Benefits and Measures to support workers in the steel and aluminum and related industries.
14F Notwithstanding anything in Article 14, in fiscal year 2019 to 2020, Canada agrees to increase the maximum contribution payable to Newfoundland and Labrador under Article 14 based on the following allocation methodology, rounded to the nearest dollar:
A funding floor of $500,000 is provided to Newfoundland and Labrador if there is direct and indirect employment in steel and aluminum in the Province of Newfoundland and Labrador 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 Newfoundland and Labrador 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 Newfoundland and Labrador is not receiving the funding floor and where there is direct and indirect employment in steel and aluminum in the Province of Newfoundland and Labrador, the maximum contribution payable under Article 14F towards the costs of NL 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 Newfoundland and Labrador 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 funding floor.
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.”
The Canada-Newfoundland and Labrador LMDA is amended by adding the following heading and Article, after Article 16.5:
“Targeted time-limited increase in contribution to costs of NL Benefits and Measures to support workers in the steel and aluminum and related industries
16.6 Canada will make payments of its increase in contribution to Newfoundland and Labrador towards the costs of the NL Benefits and Measures as determined under Article 14F in 2 installments, as follows:
- 16.6.1 The amount of the first installment equal to one-half (50%) of the increase determined under Article 14F will be paid upon the signing by both parties of this amending agreement; and
- 16.6.2 The amount of the second installment equal to one-half (50%) of the increase determined under Article 14F will be paid upon a written request from Newfoundland and Labrador, and such request must be received by Canada no later than February 3, 2020.”
The Canada-Newfoundland and Labrador LMDA is amended by adding the following, after Article 8.4:
“8.5 The parties agree that results measurement and reporting related to the increase of funding provided under Article 14F 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’.”
- 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 EI 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 Development and Rural Renewal.
- In all other respects, the Canada-Newfoundland and Labrador LMDA shall remain unchanged.
- This amending agreement shall be read together with the Canada-Newfoundland and Labrador LMDA as amended from time to time and takes effect as if its provisions were part of the Canada-Newfoundland and Labrador LMDA.
- This amending agreement comes into force once it has been signed by both parties.
Signed on behalf of Canada
in Gatineau
this 28 day of January 2020
_________________________________________
The Honourable Carla Qualtrough
Minister of Employment and Social Development styled as the Minister of Employment, Workforce Development and Disability Inclusion
_________________________________________
Graham Flack
Chairperson, Canada Employment Insurance Commission
Signed on behalf of Newfoundland and Labrador
in St. John’s
this 4 day of December 2019
_______________________________________
The Honourable Christopher Mitchelmore
Minister of Advanced Education, Skills and Labour
_________________________________________
The Honourable Dwight Ball
Minister for Intergovernmental and Indigenous Affairs
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