Canada-Northwest Territories Labour Market Development Agreement - Annex 1 (Amended)

1.0 Purpose

1.1 The purpose of this amended Annex is to describe the design of the Territorial benefits and measures that will be provided by the Northwest Territories under the Canada-Northwest Territories Labour Market Development Agreement.

2.0 Challenges

2.1 In the implementation of the Territorial benefits and measures, some of the challenges to be addressed by Education, Culture and Employment are:

1. aligning the Territorial benefits and measures with the Northern Employment Strategy of the Northwest Territories;
2. developing a coherent and cost-effective set of Territorial benefits and measures that are focused on the primary results indicators;
3. ensuring the fair treatment of clients by respecting equity principles with regard to women, Aboriginals, visible minorities and persons with disabilities;
4. supporting the network of Canada-Northwest Territories Service Centres as they expand client access to the Territorial benefits and measures;
5. maintaining itinerant service to smaller centres, and using other community and regional delivery agents in order to further expand client access to the Territorial benefits and measures; and
6. ensuring that client action plans and case management systems are in place throughout the entire delivery network so that the required financial and client data is accurate and available on a timely basis.

3.0 Territorial benefits

3.1 Education, Culture and Employment intends to use existing programs and services and to develop new programs and services that will share the following design features:

1. Expected Results
   • are the primary results indicators as defined in Annex 4
2. Eligible Clients
   • are insured participants, with access priority to active EI claimants
3. Delivery Mode
   • insured participants will access the Territorial benefits through the Education, Culture and Employment staff in the Canada-Northwest Territories Service Centres who will use client action planning and case management processes. These processes will ensure that the client is referred to appropriate Territorial benefits.  To supplement this delivery capacity, third party delivery agents may be contracted using the Employment Assistance Services Territorial measure.

3.2 Targeted wage subsidies

There are four wage subsidy programs currently available through the Department of Education, Culture and Employment.  While the programs differ in the target audiences, the nature is the same; subsidies are provided to employers as an incentive to create incremental employment opportunities for northerners with employment barriers.  The use of these programs will be expanded by incorporating a stream that broadens the client focus to include insured participants.  The programs are described as follows:

3.2.1 Training-on-the-job (TOJ)

1. Description
   1. wage subsidy paid to employers who hire insured participants
   2. pays a negotiated wage subsidy of up to $7.50/hour for up to 52 weeks to private, public or non-profit employers who can:
      • demonstrate how essential skills will be learned on the job; and provide a guarantee of ongoing employment after the wage subsidy
   3. As trainee gains skills, subsidy amount may be adjusted.
   4. the other expenses that may be cost-shared with the employer are:
      • tuition and materials for short term courses;
      • tools, equipment, and specialized clothing; and
      • specialized equipment for persons with disabilities
   5. all Employment Insurance Part I benefits are discontinued
   6. the wages constitute insurable earnings as the client becomes paid employee of the employer
2. Target
   1. insured participants who possess basic job readiness skills and abilities, but who require some skills enhancement and work experience. Among insured participants, access priority will be given to active EI claimants, in particular those who have expended less than 25% of their Employment Insurance Part I entitlement; and
   2. other clients as selected by Education, Culture and Employment as part of the existing Territorial program. Part II funding may not be used to support these clients.
3. Average Cost/Contract
   • $5,000

3.2.2 Apprenticeship training assistance

1. Description
   1. wage subsidy paid to employers who hire insured participants who are registered apprentices in the NWT
   2. negotiated wage subsidy of up to $450.00 per week for up to 52 weeks.  Private or public employers are eligible who are willing to train apprentices on the job.  Certified  journeyperson or designated trainer must be available to provide the training.
   3. wage subsidy continues through technical training in the apprentice remains on full wages.
   4. all Employment Insurance Part I benefits are discontinued while on wage subsidy
   5. the wages constitute insurable earnings as the client becomes paid employee of the employer.
2. Target
   1. insured participants who require some skills enhancement  to enter and/or progress in their apprenticeable trade. Participants must meet trades entrance requirements.  Access priority will be given to active EI claimants, in particular those who have expended less than 25% of their Part I entitlement.
   2. other clients as selected by Education, Culture and Employment as part of the existing Territorial program. Part II funding may not be used to support these clients.
   3. This program will be used selectively with EI claimants given high contract costs.  The number of apprentices funded through this program will not exceed 10% of all NWT registered apprentices in any fiscal year.
3. Average Cost/Contract
   • 1st year: $20,000
   • 2nd year: $15,000
   • 3rd year: $10,000

   Note: Education, Culture and Employment recognizes that extensive and extended use of this program will not aid the achievement of targeted results as detailed in Annex 4.  The program will be used selectively for EI clients.

3.2.3 Occupational training-on-the-job (OTOJ)

1. Description
   1. wage subsidy paid to employers who hire insured participants for employment in a non-apprenticeship occupation designated under the Apprenticeship, Trade and Occupations Certification Act.
   2. negotiated wage subsidy to a maximum of 75% of salary or $400.00 per week.  As trainee gains skills, subsidy amount may be adjusted.  Training subsidy is not to exceed 52 weeks.  Eligible employers include businesses, corporations, aboriginal organizations and municipal governments who are  willing to use established occupational standards for employment and training of trainees under the  Apprenticeship, Trade and Occupations Certification Act.  Additionally, employers must commit to employing trainee upon certification.
   3. program purpose is to develop a northern workforce which meets industry needs with competency-based occupational standards and to assist NWT businesses to employee and train northerners to become certified in designated occupations under the Apprenticeship, Trade and Occupations Certification Act.
   4. no funding outside of the wage subsidy for specialized tools, equipment or clothing
   5. all Employment Insurance Part I benefits are discontinued.  Wages constitute insurable earnings as client becomes paid employee of the employer.
2. Target
   1. insured participants who possess job readiness skills and can meet the entrance requirements of the designated occupation.  Access priority will be given to active claimants, in particular those who have expended less than 25% of their Part I entitlement and;
   2. other clients as selected by Education, Culture and Employment as part of the existing Territorial program. Part II funding may not be used to support these clients.
3. Average Cost/Contract
   • This is a new program.  There is no definitive data to determine actual per client costs, $15,000 per client is anticipated.

3.2.4 Working together: providing opportunities for students and youth

1. Description
   1. wage subsidy paid to employers who hire insured participants
   2. salary subsidies are negotiable to a maximum of $5.00 per hour for private and municipal sector employers and 90% of minimum wage and employee benefits for non-profit organizations.  Program purpose is to provide opportunities for students and youth to obtain essential employment skills through work experience.  Essential skills are defined as reading, writing, numeracy, oral communication, thinking skills, teamwork, computer use and continuous learning.
   3. jobs must be minimum of six weeks to a maximum of 52 weeks and provide at least 30 hours of work per week.
   4. all NWT employers are eligible excluding the federal and territorial governments
   5. all Employment Insurance Part I benefits are discontinued
   6. the wages constitute insurable earnings as the client becomes paid employee of the employer
2. Target
   1. insured participants who are student seeking full-time work or youth aged 15-29, not in school and unemployed.  Access priority will be given to active EI claimants, and in particular those who have expended less than 25% of their Employment Insurance Part I entitlement and
   2. other clients as selected by Education, Culture and Employment as part of the existing Territorial program
   3. this program will not be used to fund summer students whose contracts end without employer commitment to ongoing employment.
3. Average Cost/Contract
   • $4,500

3.3 Building and learning strategy

Is an existing job creation partnership model in the Northwest Territories which provides and documents temporary work experience, and skill development opportunities, that will improve the subsequent employment prospects of the participants. The program is being expanded to include insured participants.

1. Description
   1. the program provides training opportunities on Government of the Northwest Territories capital construction projects through classroom instruction and on the job training
   2. maximum participant duration is 52 weeks
   3. the program client base will be expanded to include insured participants under Employment Insurance Part II
   4. Part II funds are limited to insured participant income support and training activities, and will not be used for capital expenditures
   5. the income support received by insured participants is non-insurable and may be a combination of:
      • their Part I benefit, on top of which they may be paid a needs based Part II funded income supplement paid by the project sponsor; or − a needs based income support funded from Part II and paid by the project sponsor if there is no Part I entitlement or it is exhausted during participation on the project.
   6. this work experience model may be implemented in partnership with other sectors that provide the capital costs and appropriate work experience. Similarly, the model may also be implemented in conjunction with Community Capital Works Programs. In this case, community infrastructure capital projects become the setting for the work experience and skills development for the participants.
2. Target
   1. insured participants, whose subsequent employment prospects will be increased after their participation on the project. Among insured participants, access priority will be given to active EI claimants who have expended less than 25% of their Part I benefit entitlement; and
   2. other clients as selected by Education, Culture and Employment as part of the existing Territorial program. Part II funding may not be used to support these clients.
3. Average Cost/Contract
   • $7,000

3.4 Self-employment option

Is a new program modeled on the HRDC Self-Employment Assistance Program to provide self-employment services to insured participants.

1. Target
   1. insured participants, and in particular, active EI claimants who have expended less than 25% of their Part I benefit entitlement
2. Average Cost
   • $7,300

3.5 Skills for work program

The NWT Skills for Work Program is a short-term financial assistance program (non-recoverable and recoverable grants) to support insured participants, including apprentices, who require format training to obtain or maintain, in the case of apprentices, employment.

1. Description
   1. financial program for students who have financial need in excess of EI Part I entitlement to attend post-secondary or private sector provided training. Eligible programs include: employment readiness programs (provided student is going on to skill development training), pre-trades training courses not covered by Student Financial Assistance Program, Apprenticeship and Occupational technical training.
   2. Program not to exceed 52 weeks period.  Studies must be full-time.
   3. All students receive return excursion airfare to nearest institution program is offered.  Where studies span the winter break, return airfare will also be provided for student.
   4. All students receive tuition per the published fee schedule to a maximum of $1,250 per semester.
   5. Clients will be required to contribute $200.00 toward training fees.  This will be deducted at source.
   6. Eligible expenses include: books, required specialized equipment, living expenses, dependant care, in transit support, and special supports for persons with disabilities.
   7. The value of the grant will not exceed $15,000 for two semesters.
2. Target
   1. insured participants whose employment prospects will be increased as a result of participation in institutional training.  Access priority will be given to active EI claimants who have expended less than 25% of their Employment Insurance Part I entitlement.
3. Average Cost/Contract
   • $12,000

4.0 Territorial measures

4.1 All unemployed persons may access the Territorial measures rather than just insured participants. Active EI claimants would be able to retain their Employment Insurance Part I benefit entitlement, as appropriate. No Part II income support may be afforded to any client.

4.2 Employment assistance services

Education, Culture and Employment currently supplements its delivery of employment assistance services by contracting with third parties. Through the use of Part II funds, the utilization of this third party contracting model may be expanded to further serve the unemployed.

1. Description
   1. there are four categories of service:
      • individual
      • groups
      • self-directed, and
      • special events
   2. the employment assistance services could include
      • assessment and counselling
      • testing
      • career action planning
      • provision of career, labour market, and program information
      • group workshops
      • access to computer and print resources
      • life skills counselling, and
      • direct referral to program placement

4.3 Labour market partnerships

Education, Culture and Employment currently contracts with third parties to enable employee or employer associations, employers or community organizations to undertake activities that address human resource development challenges and opportunities. These activities would subsequently improve the delivery of the Territorial benefits and measures. Through the use of Employment Insurance Part II funds, the utilization of this model may be expanded.

1. Description
   1. the range of activities includes:
      • research
      • consultations
      • development of labour market information, and system
      • developing human resource adjustment strategies
      • occupational standards development
      • community development
      • strategic planning
   2. the partnership model encourages cost-sharing of the approved activities.

4.4 Research and innovations

Education, Culture and Employment may implement projects, as referred to in section 8.5 of the Agreement, to support research, planning and innovative activities by partners who are committed to investing in the Northwest Territories’ economic future and ensuring that active participation of residents who want to work. 

5.0 National territorial benefits and measures part II allocations and participants

5.1 Based on the 1998/99 Part II allocation for the Territorial benefits and measures, and the agreed to results targets set out in Annex 4, Education, Culture and Employment anticipates that the Part II funds will be allocated as follows: 

The actual expenditure mix for programs and services will evolve as client needs are assessed and client action plans are approved.

6.0 Amendments

6.1 Education, Culture and Employment may make ongoing modifications to the design of the Territorial benefits and measures subject to Section 3.3 of the Agreement.

______________

Russ Brown

Director General

Alberta/NWT Region

Human Resources Development Canada

______________

Mark Cleveland

Deputy Minister

Education, Culture and Employment

Date: September 30, 1998