Agreement to Amend the Canada – Ontario Labour Market Development Agreement

List of acronyms and abbreviations

Canada: The Government of Canada
CANSIM: Canadian Socio-Economic Information Management System
EI: Employment Insurance
LMDA: Labour Market Development Agreement
NAICS: North American Industry Classification System
Ontario: The Government of Ontario

Between

The Government of Canada, hereinafter referred to as “Canada”, represented by the Minister of Employment and Social Development and the Canada Employment Insurance Commission

And

The Government of Ontario, hereinafter referred to as “Ontario”, represented by the Minister of Training, Colleges and Universities

Hereinafter referred to as “the parties”.

Preamble

Whereas the parties concluded the Canada-Ontario Labour Market Development Agreement (“Canada-Ontario LMDA”) on November 23, 2005;

Whereas the Canada-Ontario LMDA was amended on May 22, 2009, December 15, 2016 and March 29, 2018;

Whereas Canada has announced targeted support measures for workers affected by economic adjustments in the forest sector and the steel and aluminum industries, as well as for workers in seasonal industries;

Whereas the forest sector and related industries are currently experiencing economic adjustments which have resulted in negative impacts on Canadian jobs and workers; and, Canada has broadened eligibility of economic adjustment measures approved nder the Softwood Lumber Action Plan for workers directly or indirectly affected in 2018-2019 and is prepared to provide a time-limited targeted increase to the federal contribution to the costs of Ontario benefits and measures for fiscal year 2018-2019 under the LMDAs to support workers that are directly or indirectly affected by these economic adjustments;

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, Canada is prepared to provide a time-limited targeted increase to the federal contribution to the costs of Ontario benefits and measures for fiscal year 2018-2019 provided under the Canada-Ontario LMDA to support workers directly or indirectly affected by these economic adjustments;

Whereas Canada and Ontario recognize that workers in seasonal industries are an important part of Canada's continued prosperity and experience unique labour market challenges due to the cyclical nature of seasonal work and, given Canada announced in its Budget 2018 that it would make available additional funding for 2018-2019 and 2019-2020 to the provinces and territories under the Labour Market Development Agreements to support workers in seasonal industries, Canada is prepared to provide a time-limited targeted increase to the federal contribution to the costs of Ontario benefits and measures for fiscal years 2018-2019 and 2019-2020 under the Canada-Ontario LMDA to support workers in seasonal industries;

Therefore, the parties agree to amend the Canada-Ontario LMDA, as amended from time to time, as follows:

Clauses

1. The Canada-Ontario LMDA is amended by adding the following headings and sections after section 14C:
   
   “Targeted time-limited increase in contribution to costs of Ontario benefits and measures for workers in the forest sector and related industries
   
   14D Notwithstanding anything in section 14, in fiscal year 2018-2019, Canada agrees to increase the maximum contribution payable to Ontario under section 14 based on the allocation methodology noted below rounded to the nearest dollar.
   • ( (A/B) x 0.5) + ( (C/D) x 0.5) x $25 million,
     
     Where
     
     A is the total number of workers employed in the forest sector in Ontario in 2016, based on the Canadian Socio-Economic Information Management System (CANSIM) table 383-0031* under North American Industry Classification System codes 113, 1153, 321, and 322;
     
     B is the total number of workers employed in the forest sector in the five provinces with the most workers employed in the forest sector in 2016, based on the CANSIM table 383-0031* under North American Industry Classification System codes 113, 1153, 321, and 322;
     
     C is the total number of forest sector jobs lost in Ontario between April 2017 and January 2018 based on reports from Service Canada; and,
     
     D based on reports from Service Canada, is the total number of forest sector jobs lost between the months of April 2017 and January 2018 in the five provinces with the most individuals employed in the forest sector in 2016.

*Total numbers are released in the spring following the end of the reference period, while revised numbers are published in the fall of the same year. The fall release also comprises revisions of numbers from the three previous years. As such, data currently available may differ from the data available at the time of allocation.

Targeted time-limited increase in contribution to costs of Ontario benefits and measures to support workers in the steel and aluminum and related industries

14E Notwithstanding anything in section 14, in fiscal year 2018-2019, Canada agrees to increase the maximum contribution payable to Ontario under section 14 based on the following allocation methodology, rounded to the nearest dollar.

A funding floor of $500,000 is provided to Ontario if there is direct and indirect employment in steel and aluminum in the Province of Ontario 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 Ontario 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 Ontario is not receiving the funding floor and where there is direct and indirect employment in steel and aluminum in the Province of Ontario, the maximum contribution payable under section 14E towards the costs of Ontario 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 Ontario 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.

Funding for fiscal year 2019-2020 may be revised to take into account actual job losses related to the economic adjustments in the steel and aluminum industries.

Targeted time-limited increase in contribution to costs of Ontario benefits and measures to support workers in seasonal industries

14F Notwithstanding anything in section 14, for fiscal years 2018-2019 and 2019-2020, Canada agrees to increase the total maximum contribution payable to Ontario under section 14 based on the following allocation methodology, rounded to the nearest dollar.

A funding floor of $500,000 is provided to Ontario if the following formula results in an allocation below $500,000:
• (A/B) x $41 million
  
  Where
  
  A is the number of Employment Insurance (EI) Regular Beneficiaries (total completed seasonal claims according to Employment Insurance Program administrative data) in 2016-2017 in EI Economic Regions where the unemployment rate was over 6.3% (the average national unemployment rate for 2017 according to the Labour Force Survey) in Ontario; and
  
  B is the number of EI Regular Beneficiaries (total completed seasonal claims according to Employment Insurance Program administrative data) in 2016-2017 in all EI Economic Regions in Canada where the unemployment rate was over 6.3%.

If Ontario is not receiving the funding floor, the total maximum contribution payable under section 14F towards the costs of Ontario benefits and measures is determined by the following formula, rounded to the nearest dollar:
• (A/B) x C
  
  Where
  
  A is the number of EI Regular Beneficiaries (total completed seasonal claims according to Employment Insurance Program administrative data) in 2016-2017 EI Economic Regions where the unemployment rate was over 6.3% (the average national unemployment rate for 2017 according to the Labour Force Survey) in Ontario;
  
  B is the number of EI Regular Beneficiaries (total completed seasonal claims according to Employment Insurance Program administrative data) in 2016-2017 in all EI Economic Regions in Canada where the unemployment rate was over 6.3%, excluding provinces and territories that are receiving the $500,000 funding floor; and
  
  C is the $41 million investment to support workers in seasonal industries made available to provinces and territories, less the amount distributed under the $500,000 funding floor.”
2. The Canada-Ontario LMDA is amended by adding the following headings and sections, after section 16.3:
   
   “Targeted time-limited increase in contribution to costs of Ontario benefits and measures for workers in the forest industry and related sectors
   
   16.4 Canada will make payments of its increase in contribution to Ontario towards the costs of Ontario benefits and measures as determined under section 14D in two installments, as follows:
   • 16.4.1 The amount of the first installment equal to one-half (50%) of the increase determined under section 14D will be paid upon the signing by both parties of this amending agreement; and
     
     16.4.2 The amount of the second installment equal to one-half (50%) of the increase determined under section 14D will be paid upon written request from Ontario, and such request must be received by Canada no later than March 15, 2019.
   
   Targeted time-limited increase in contribution to costs of Ontario benefits and measures to support workers in the steel and aluminum and related industries
   
   16.5 Canada will make payments of its increase in contribution to Ontario towards the costs of Ontario benefits and measures as determined under section 14E in two installments, as follows:
   • 16.5.1 The amount of the first installment equal to one-half (50%) of the increase determined under section 14E will be paid upon the signing by both parties of this amending agreement; and
     
     16.5.2 The amount of the second installment equal to one-half (50%) of the increase determined under section 14E will be paid upon a written request from Ontario, if needed, and such request must be received by Canada no later than March 15, 2019.
   
   Targeted time-limited increase in contribution to costs of Ontario benefits and measures to support workers in seasonal industries
   
   16.6 Canada will make payments of its increase in contribution to Ontario towards the costs of Ontario benefits and measures as determined under section 14F, as follows:
   • 16.6.1 The amount for 2018-2019 will be paid in two equal installments totaling (50%) of the increase determined under section 14F. The amount of the first installment will be paid upon the signing by both parties of this amending agreement and the amount of the second installment will be paid at the written request of Ontario. This request must be received by Canada no later than March 15, 2019; and
     
     16.6.2 Subject to the approval of expenditures under Part II of the EI Act for 2019-2020 by Canada, the amount for 2019-2020 will be paid in two equal installments totaling (50%) of the increase determined under section 14F. The amount of the first installment and the amount of the second installment will be paid after April 1, 2019 upon the written request of Ontario for each installment. These requests must be received by Canada after March 1, 2019 and no later than February 3, 2020.”
3. The Canada-Ontario LMDA is amended by adding the following, after section 8.7:
   
   “8.8 The parties agree that results measurement and reporting related to the increase of funding provided under sections 14D and 14E for fiscal year 2018-2019 and section 14F for fiscal years 2018-2019 and 2019-2020, will be consistent with the process described in Annex 5 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 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 Ontario's Deputy Minister of Education and Training.
5. In all other respects, the Canada-Ontario LMDA shall remain unchanged.
6. This amending agreement shall be read together with the Canada-Ontario LMDA as amended from time to time and takes effect as if its provisions were part of the Canada-Ontario LMDA.
7. This amending agreement comes into force once it has been signed by both parties.