Canada - Alberta Labour Market Development Agreement

Note: By agreement of the Parties, the agreement was signed in English only. The French version is provided for convenience only. In the event of a conflict with the English version, the English version prevails.

Recitals

Between

The Government of Canada (herein referred to as "Canada"), as represented by the Minister of Human Resources Development and the Canada Employment Insurance Commission

And

The Government of Alberta (herein referred to as "Alberta"), as represented by the Minister of Advanced Education and Career Development

Recitals

Whereas Canada and Alberta give the highest priority to the integration of the unemployed into the workforce and are committed to providing high quality, effective and efficient labour market development programs and services to the people of Alberta;

Whereas Canada and Alberta agree on the importance of measuring, monitoring, assessing and evaluating the success of their labour market development programs and services in helping the unemployed of Alberta to prepare for, find and keep a job;

Whereas Canada and Alberta agree that predictability and transparency of funding is critical to the success of a long term labour market development agreement;

Whereas Canada and Alberta recognize that each government has certain responsibilities in the area of labour market development and seek to clarify roles and responsibilities in ways that improve the quality and accountability of government services to the public;

Whereas nothing in this Agreement shall abrogate or derogate from existing Aboriginal and Treaty rights of the Aboriginal Peoples of Canada;

Whereas Canada and Alberta recognize youth employment as a priority and are committed to coordinate their youth initiatives;

Whereas Canada and Alberta recognize the value to Canadians of coordinating local, provincial, and national labour market and labour exchange information;

Whereas Canada acknowledges that labour market training is an area of provincial responsibility;

Whereas Canada and Alberta agree that they should reduce unnecessary overlap and duplication in their labour market development programs and services;

Whereas Alberta intends to provide a coherent and comprehensive array of labour market programs and services, including programs that are eligible for support from Canada under Part II of the Employment Insurance Act;

Whereas recent experimentation in the cooperative delivery of federal and provincial labour force development programs and services have shown the benefits of establishing new labour market arrangements in Alberta;

Whereas both parties recognize the possibility of achieving significant economies and quality improvements through cooperation in the future development, management and funding of systems infrastructure that meets the objectives of provincial and national labour market programs;

Whereas, in recognition of the above, Canada's Minister of Human Resources Development presented to all provinces and territories on May 30, 1996, a proposal on labour market development;

Whereas Alberta desires to enter into an agreement with Canada with respect to the May 30, 1996 proposal on labour market development;

Whereas with respect to Alberta's desire to expand its role in the design and the delivery of labour market development programs in Alberta, Canada (acting through the Canada Employment Insurance Commission), and with the approval of Canada's Minister of Human Resources Development, is authorized under section 63 of the Employment Insurance Act to enter into an agreement with Alberta to provide for the payment of contributions towards:

  1. the costs of benefits and measures (programs) provided by Alberta that are similar to employment benefits and support measures under Part II of that Act and consistent with the purpose and guidelines of Part II of that Act; and
  2. the administration costs that Alberta incurs in providing those benefits and measures.

Whereas the benefits and measures (programs) provided by Alberta described in the reference document 1997/98 Plan for Provincial Programs and Services under the Canada-Alberta Labour Market Development Agreement are similar to employment benefits and support measures under Part II of the Employment Insurance Act, and consistent with the purpose and guidelines of Part II of that Act;

Whereas Canada's Minister of Human Resources Development has approved the entering into of an agreement with Alberta to make contributions toward the costs of providing those benefits and measures and the associated administration costs;

Whereas with respect to the desire of Alberta to carry out on behalf of the Canada Employment Insurance Commission certain functions of the National Employment Service, the Commission may, under section 31(3) of the Department of Human Resources Development Act, authorize any person or body to exercise functions of the Commission;

Whereas with respect to the other areas of cooperation between Canada and Alberta covered by this Agreement, Canada's Minister of Human Resources Development is authorized to enter into this Agreement under section 20 of Canada's Department of Human Resources Development Act;

Whereas Alberta's Minister of Advanced Education and Career Development is authorized to enter into this Agreement on behalf of Alberta under Section 10 (2) of the Government Organization Act;

Now, therefore, the parties hereto mutually agree as follows:

1.0 Interpretation

1.1 The terms "employment benefit" and "support measure" are terms used in the Employment Insurance Act in reference to specific types of employment programs established by the Commission under sections 59 and 60(4), respectively, of the Employment Insurance Act. The terms "benefit" and "measure" are used in section 63 of the Act in reference to the funding by Canada of similar provincial programs.

1.2 In this Agreement, unless the context requires otherwise,

"provincial benefits and measures" may be referred to as "provincial programs";

"active EI claimant" means an individual for whom an employment insurance benefit period is established under the Employment Insurance Act;

"administration costs" means the costs of administration incurred by Alberta in providing the provincial benefits and measures;

"Annual Annex" means the Annual Annex referred to in section 16;

"Commission" means the Canada Employment Insurance Commission;

"costs of provincial benefits and measures" means the costs of financial assistance or other payments provided by Alberta under provincial benefits and measures to persons and organizations that are eligible for assistance under those benefits and measures. For greater certainty, it is understood that insofar as the meaning of costs of "provincial benefits" (as opposed to the costs of "provincial measures") is concerned, those costs are limited to:

  • (a) the costs of financial assistance provided under the benefits by Alberta directly to insured participants, and
  • (b) the costs of financial assistance or other payments provided by Alberta under the benefits to persons or organizations as reimbursement for costs incurred by them, or as payment for services rendered by them, in relation to the provision of assistance to insured participants.

In the case of Canada's financial contributions towards the costs of provincial measures, it is understood that access to the types of assistance provided under Canada's support measures is not restricted to insured participants. Therefore, the costs of similar provincial measures that are eligible for reimbursement under this Agreement, are not so limited either.

"insured participant" means an unemployed person who, when requesting assistance under a provincial benefit or measure:

  • (a) is an active EI claimant; or
  • (b) had a benefit period that ended within the previous 36 months; or
  • (c) Had a benefit period established for him/her within the previous 60 months, and
    • i. was paid parental or maternity benefits under the Employment Insurance Act or the former Unemployment Insurance Act,
    • ii. subsequently withdrew from the labour force to care for one or more of their new-born children or one or more children placed with them for the purpose of adoption, and
    • iii. is seeking to re-enter the labour force;

"fiscal year" means the period commencing on April 1 in one calendar year and ending on March 31 in the next calendar year;

"AECD" means the provincial department of Alberta Advanced Education and Career Development;

"HRDC" means Canada's Department of Human Resources Development;

"Transition Committee" means the committee established under section 20;

"Designated officials" means the officials designated under section 21;

"Joint Evaluation Committee" means the committee established under section 8.2;

"NES clients" means persons and organizations to whom the National Employment Service provides its services, namely: workers, whether insured or not or whether they are claiming employment insurance benefits or not, employers, workers' organizations and interested public and private organizations providing employment assistance services to workers;

"provincial benefit" means a labour market development program, designed to enable insured participants to obtain employment that is:

  • (a) developed by Alberta in accordance with the reference document 1997/98 Plan for Provincial Programs and Services under the Canada-Alberta Labour Market Development Agreement;
  • (b) described in the annual plan referred to in section 3.2 of this Agreement; and,
  • (c) provided by Alberta under section 3.1;

"provincial measure" means a labour market development program to support:

  • (a) organizations that provide employment assistance services to unemployed persons;
  • (b) employers, employee or employer associations, community groups and communities in developing and implementing strategies for dealing with labour force adjustments and meeting human resource requirements; or
  • (c) research and innovative projects to identify better ways of helping persons prepare for, return to or keep employment and be productive participants in the labour force;

that is developed by Alberta in accordance with the plan set out in the reference document 1997-98 Plan for Provincial Programs and Services under the Canada-Alberta Labour Market Agreement; described in the annual plan referred to in section 3.2; and, provided by Alberta under section 3.1;

"Transition Period" means the period between the date of the signing of this Agreement and the later of:

  • (a) the date referred to in section 3.1 of this Agreement on which Alberta begins implementation of the provincial benefits and measures, or
  • (b) the date on which the transfer of HRDC employees to Alberta referred to in section 12 of this Agreement is completed;

"Initial period" means, for the purposes of the human resource transfers to Alberta, three fiscal years from the date of employment with AECD.

2.0 Purpose and scope of agreement

2.1 The purpose of this Agreement is to implement within the scope of Part II of the Employment Insurance Act, new Canada-Alberta arrangements in the area of labour market development that will enable Alberta to assume an expanded role in the design and delivery of labour market development programs and services in Alberta.

2.2 Canada will retain responsibility for the delivery of insurance benefits under Part I of the Employment Insurance Act and for the national aspects of labour market development such as responding to national emergencies, activities in support of interprovincial labour mobility, the promotion and support of national sectoral councils, the operation of the national labour market information and national labour exchange systems, and innovative projects designed to test new approaches to improving the functioning of the labour market in Canada.

2.3 Alberta agrees to cooperate through a partnership approach with Canada in conducting proposed activities and initiatives in the area of research and innovation projects related to this Agreement.

3.0 Provincial benefits and measures

3.1 Beginning April 1, 1997, or other such date as agreed to by designated officials, Alberta's department of Advanced Education and Career Development will provide in Alberta the provincial benefits and measures described in the reference document 1997/98 Plan for Provincial Programs and Services under the Canada-Alberta Labour Market Development Agreement.

3.2 Alberta agrees to provide to Canada annually, three months before the beginning of each fiscal year, a plan which describes:

  • a) the labour market issues which Alberta intends to address during the next three year period;
  • b) the array of provincial benefits and measures to be offered to eligible clients; and
  • c) the projected costs of each provincial benefit and measure.

3.3 Alberta will make ongoing modifications to the design of provincial benefits and measures to ensure responsiveness to client need, labour market conditions, and evaluation findings. Such modifications will be set out in the plan provided to Canada annually.

3.4 Where any question arises as to whether a change to a provincial benefit or measure affects its consistency in relation to the guidelines and purpose of the EI Act Part II, or its similarity to the benefits and measures established by the Commission, it shall be referred to the designated officials for a determination.

3.5 Alberta shall not require any minimum period of residency in Alberta on the part of an individual as a condition of access by that individual to assistance under a provincial benefit or measure supported by Canada under this Agreement.

3.6 Alberta will give priority to insured participants on an active Employment Insurance claim within the client group eligible for provincial benefits and measures provided under this Agreement.

3.7 To facilitate the coordination of the provision of assistance to active EI claimants by Alberta under its provincial benefits, with the payment by Canada of insurance benefits to those claimants by virtue of section 25 of Part I of the Employment Insurance Act, the Commission, pursuant to subsection 31(3) of Canada's Department of Human Resources Development Act, hereby authorizes the Minister of Advanced Education and Career Development to exercise, the Commission's power to designate authorities in Alberta who may, for the purposes of section 25 of Canada's Employment Insurance Act, refer active EI claimants to:

  • a) courses or programs of instruction or training which the claimant is attending at his or her own expense; or
  • b) any other employment activity for which assistance has been provided for the claimant under prescribed employment benefits or benefits covered by this Agreement which are similar to the prescribed employment benefits

3.8 Alberta shall give 30 days advance notice to Canada of its intention to designate a referral authority for the purposes of section 25 of Canada's Employment Insurance Act in order that Canada may make necessary administrative arrangements with the referral authority to ensure timely and proper payment of insurance benefits to the referred active EI claimants under section 25 of the Act.

3.9 Authorities designated by Alberta may include staff of the department of Advanced Education and Career Development, other departments of the government of Alberta, as well as third parties in Alberta.

4.0 Delegation of authority to Alberta with respect to certain National Employment Services functions

4.1 Alberta Advanced Education and Career Development is hereby authorized to carry out on behalf of the Commission, the functions of the National Employment Service (NES) described in Annex 1 to this Agreement entitled "National Employment Service functions".

4.2 In carrying out the functions referred to in section 4.1, Canada and Alberta agree to cooperate in establishing effective links between the parties to facilitate and coordinate the operation of their local and national labour exchange systems and the production and dissemination of local and national labour market information.

4.3 Alberta agrees to give priority of access to the screening and counselling functions of the National Employment Service to active EI claimants.

5.0 Service to clients

5.1 The parties agree that in the administration of the provincial programs, and in carrying out the functions of the National Employment Service, Alberta will be guided by the following principles on service to clients:

  • a) provide convenient access to federal and provincial programs and services;
  • b) provide courteous, empathetic and timely service;
  • c) provide flexible and innovative approaches to labour market and community needs;
  • d) optimize individual potential and human dignity; and
  • e) achieve measurable results within a well-defined framework of accountability.

5.2 In areas of significant demand, Alberta agrees to provide access to assistance under its provincial programs, and in relation to its National Employment Service functions, in both official languages. In determining the areas of Alberta where there would be considered to be significant demand, Alberta agrees to use as a guideline, the criteria for determining what constitutes "significant demand" for communications with, and services from, an office of a federal institution as set out in the Official Languages Regulations made pursuant to Canada's Official Languages Act. For purposes of this Agreement, areas of significant demand will be determined in consultation with representatives of the minority language community in each locality.

5.3 In the provision of service, Canada and Alberta will ensure that Canada/Alberta Service Centres are accessible to persons with disabilities.

5.4 Canada and Alberta agree to establish mechanisms for dealing with representations or enquiries made by members of Parliament or members of the Legislative Assembly on behalf of constituents who have sought their assistance in resolving a problem or obtaining information in relation to the constituent's dealings with a Canada/Alberta Service Centre, to ensure that the reply to the inquiry or representations is directed to the appropriate party and that the confidentiality and privacy requirements of Canada's Employment Insurance Act and Alberta's Freedom of Information and Protection of Privacy Act, are respected.

6.0 Delivery arrangements

6.1 The delivery of the provincial programs and certain functions of the National Employment Service, will be administered by Alberta through its' department of Advanced Education and Career Development, at delivery sites identified to the public as Canada/Alberta Service Centres.

6.2 In order to provide effective and efficient services, the parties agree that the various programs and services under their respective jurisdictions which are designed to assist various clients should, to the extent possible, be provided at common locations.

6.3 To give effect to the foregoing, the parties agree to establish co-located facilities or Alternate Service Delivery arrangements as appropriate, at the locations listed in Annex 2 to this Agreement entitled "Delivery Arrangements".

6.4 The arrangements between the parties with respect to the operation of points of access/delivery are set out in Annex 2 of this Agreement.

7.0 Expected results of provincial benefits and measures

7.1 Canada and Alberta agree to use the following criteria as the primary indicators for measuring the results of the provincial benefits and measures:

  1. the number of active EI claimants that access provincial benefits and measures;
  2. returns to employment of EI clients, with an emphasis on active EI claimants; and
  3. savings to the EI Account.

7.2 Canada and Alberta agree to jointly establish in advance of each fiscal year during the period of the Agreement mutually agreed results targets for the coming fiscal year using the results indicators referred to in section 7.1.

7.3 Canada and Alberta agree that for fiscal year 1997/98, the results targets shall be those set out in Annex 3 to this Agreement entitled "Results Targets for Fiscal Year 1997/98". The results targets for each subsequent fiscal year will be set out in the Annual Annex for that fiscal year.

7.4 Canada and Alberta agree to establish mechanisms to jointly set the annual targets for each fiscal year following fiscal year 1997/98, and to jointly review and assess the achievement of the results. In setting targets for each of those fiscal years, the parties will take into consideration local, regional and provincial economic and labour market circumstances, the results achieved in the previous year, the amount of funding available for the provincial benefits and measures for the coming year and improvements in the design and delivery of the benefits and measures.

7.5 The measurement of the primary indicators will be based on a methodology established by Canada in order that Canada can establish the national results levels for reporting to Parliament.

8.0 Evaluation

8.1 Canada and Alberta recognize the benefits to premium payers, clients, and taxpayers, and the requirements of the Employment Insurance Act for evaluating the results of the provincial programs supported under this Agreement. Accordingly, they agree that immediately after the commencement of the implementation, they will jointly develop and carry out a two-phased evaluation process (formative and summative) that adheres to recognized evaluation practices, for short, medium and long-term measurement of results. The first phase (formative) will be conducted in the first year of implementation of the provincial programs supported under this Agreement, followed by the second phase (summative) in the third year of implementation. Subsequent evaluations will be conducted regularly, on a three to five year basis. Such evaluations will determine the impacts and effects of the provincial programs, including: their impacts and effects on sustainability of employment; change in dependency on income transfers (employment insurance and social assistance); impact on communities, and, change in tax revenues from earned income.

8.2 Canada and Alberta agree that designated officials will establish a joint federal/provincial evaluation committee, called the Joint Evaluation Committee, to support and oversee the evaluations of the provincial programs. The joint committee will prepare and sign off the evaluation framework, carry out evaluations according to the plan laid out in the framework document, approve third party evaluation contracts, and evaluation reports.

8.3 Canada and Alberta agree that the Joint Evaluation Committee will jointly approve the design and operation of research and innovations projects initiated in Alberta.

9.0 Information and data sharing

For the purposes of implementing this Agreement, Canada and Alberta agree to exchange information in accordance with the arrangements specified in Annex 4 to this Agreement entitled "Information and data sharing arrangements".

10.0 Monitoring and assessment

Section 3 of the Employment Insurance Act requires the Commission to monitor and assess the effectiveness of the benefits and assistance provided under the Act, including assistance provided under the arrangements put in place in the context of this Agreement, and to submit a report on its assessment to the Minister of Human Resources Development at least annually from 1997 to 2001. The first report is due no later than December 31, 1997 and it must subsequently be laid before Parliament. Canada will use the information provided by Alberta under section 9 Information and data sharing.

11.0 EI program integrity

As Canada may be providing insurance benefits under Part I of the Employment Insurance Act to active EI claimants while they are participating in provincial programs under Part II of the EI Act, Canada and Alberta agree to cooperate with each other in developing measures for detecting and controlling abuse, and in determining how and by whom these measures should be carried out.

12.0 Human resources

12.1 Alberta agrees to make an offer of employment to those employees of Canada who are affected by Alberta's decision to:

  • a) expand its role in the design and delivery of labour market programs through the implementation of the provincial benefits and measures; and
  • b) assume responsibility for certain functions of the National Employment Service.

12.2 Alberta undertakes that its offer will meet the requirements of a Reasonable Job Offer (Type 2) within the meaning of Part VII of Canada's Work Force Adjustment Directive (WFAD) dated July 16, 1996, which is attached as Annex 5 to this Agreement. Transferring federal employees will be employees of AECD. Given federal resource transfers, the extent to which positions are unencumbered, and associated workload requirements, Alberta agrees that the Business Plan of AECD will not require staff reductions in the delivery of provincial programs and services as well as certain functions of the National Employment Service, for the initial period of the Agreement;

12.3 Initial details of Alberta's offer of employment have been set out in an Employee Transfer Proposal (ETP), Annex 6A. The proposal has been prepared in accordance with the Employee Transfer Proposal Guidelines which are attached as Annex 6B to this Agreement.

12.4 The details of Annex 6A will be embodied in an Employee Transfer Agreement (ETA) to be entered into by the parties by January 15, 1997. It is understood that supplementary agreements may also be required under other federal legislation such as the Public Service Superannuation Act.

12.5 The amount of Canada's contributions referred to in section 13.7 of this Agreement towards Alberta's administration costs is contingent on an offer of employment being made to those employees affected by this Agreement, and on the type of offer meeting the requirements of a reasonable job offer within the meaning of Part VII of Canada's WFAD.

12.6 Canada agrees that every vacant position within Canada's affected employee group at such time as may be agreed upon by the parties in the Employee Transfer Agreement will be included in the calculation of the number of affected employees to whom Alberta will be considered to have made an offer of employment and who will be considered to have accepted the offer.

13.0 Financial arrangements

13.1 Canada and Alberta agree that, subject to the financial limitation set out in section 78 of the Employment Insurance Act, the financial arrangements between them shall be as set out in the sections below.

Contribution towards costs of provincial benefits and measures

13.2 In each of fiscal years 1997/98 to 1999/2000, Canada (through the Commission) agrees to make a maximum contribution to Alberta towards the costs of provincial benefits and measures incurred by it in those years of an amount to be determined in accordance with the allocation methodology described in the letter of June 26, 1996 from Canada's Deputy Minister of Human Resources Development to Alberta's Deputy Minister(s) of Alberta Advanced Education and Career Development and attached as Annex 7 to this Agreement.

13.3 The currently projected maximum amount of Canada's contribution towards the costs of Alberta's provincial benefits and measures for each of those fiscal years is as follows:

  • fiscal year 1997/98: $97,517,000
  • fiscal year 1998/99: $107,532,000
  • fiscal year 1999/2000: $112,145,000

Alberta recognizes, however, that given the nature of the allocation methodology, the actual amount of the maximum contribution payable in each fiscal year cannot be ascertained until shortly after January of the immediately preceding fiscal year. Further, the maximum contribution payable would change should the allocation methodology change as a result of a consensus between provinces/territories and Canada. It is noted that to assist Alberta in its planning and the preparation of its Business Plan, HRDC will undertake to provide in December of each year, a preliminary estimate of Canada's maximum contribution for the subsequent year.

13.4 In order to maintain continuity of client service, Alberta agrees that Canada should continue to make program decisions until the provincial benefits and measures are ready to be implemented as per the reference document Direct Purchase Training Withdrawal Strategy - Alberta, signed by both parties. Commitments approved by Canada through carryover of outstanding agreements from 1996/97 to fiscal year 1997/98, will reduce the maximum contribution payable to Alberta. Carryover will be reported by Canada to Alberta, and will be used to reduce the maximum contribution payable by Canada in fiscal year 1997/98.

13.5 For each fiscal year after the fiscal year 1999/2000 during the period of the Agreement, Canada's contribution towards the costs of the provincial benefits and measures will be mutually reviewed annually between the parties. In conducting the annual reviews, Canada undertakes to provide Alberta with projected three year allocations on a rolling basis. The agreed amount of Canada's contribution towards the costs of the provincial benefits and measures for each such fiscal year will then be specified in the Annual Annex for that fiscal year. In conducting the annual reviews, Canada undertakes to provide Alberta with projected three year allocations on a rolling basis as a forecast based on current trends, but which are subject to change.

13.6 Should Alberta not be in a position to commence the delivery of its similar programs and services under this Agreement on April 1, 1997, Canada agrees to continue to offer its employment benefits and measures. Alberta recognizes that the maximum contribution payable to Alberta in that year will be reduced accordingly by the value of the financial commitments made by Canada.

Contribution towards administration costs

13.7 In addition to the contribution towards the costs of the provincial benefits and measures, Canada (through the Commission) agrees to make a maximum contribution to Alberta in each fiscal year during the period of the Agreement towards the administration costs incurred by Alberta in that fiscal year. Subject to 13.9, the maximum amount will be the amount determined in accordance with section 13.8.

13.8 Canada agrees to transfer to Alberta an amount determined in accordance with the methodology as outlined in the letter of September 25, 1996, from Canada's Deputy Minister of Human Resources Development to Alberta's Deputy Minister of Advanced Education and Career Development, attached as Annex 8 to this Agreement. The actual amount of the maximum contribution for administration costs will be dependent upon the employee transfer arrangements referred to in section 12 of this Agreement.

13.9 Notwithstanding section 13.7, it is understood that the maximum amount of the contribution towards the administration costs of Alberta will be increased depending upon the actual financial resources available to Canada after the termination of various property leases which will occur as a result of reduced accommodation requirements for Canada flowing from the transfer of HRDC employees to Alberta under the employee transfer arrangements referred to in section 12. Departmental officials will be responsible for determining and recommending to the parties the amount of any such increase.

14.0 Payment procedures

14.1 Beginning April 1, 1997, or on such later date as agreed by designated officials on which Alberta begins implementation of its provincial benefits and measures, Canada will make advance payments of its annual contribution towards the costs of the provincial benefits and measures. The advances will be made on a monthly basis and will be based upon a forecast of monthly cash flow requirements furnished by Alberta. Alberta agrees to update the forecast on a quarterly basis.

14.2 Subject to section 14.3, payment of Canada's annual contribution towards the administration costs incurred by Alberta will be made in twelve equal monthly installments based upon an agreed estimate of the administration costs to be incurred by Alberta during the fiscal year, the maximum of which is determined to be $8,914,000, excluding leases.

14.3 If by April 1, 1997, the parties have not finalized and signed the Employee Transfer Agreement referred to in Section 12, no payment on account of Canada's contribution toward Alberta's administration costs will be made until such Agreement has been finalized and signed. Payment will then be made in equal monthly instalments beginning in the month in which the Agreement is signed, or at such date as may be agreed to by the parties.

15.0 Transfer of assets

15.1 Canada and Alberta will establish an inventory of assets that will be transferred to Alberta and specified in Annex 9 to this Agreement entitled "Inventory of Assets". The assets to be transferred to Alberta will be related to the extent of labour market development responsibilities assumed by Alberta and the number of Canada's employees being transferred to Alberta.

15.2 The timetable for the transfer of the assets will be established by the Transition Committee referred to in section 20.

16.0 Annual annex

16.1 Prior to the beginning of the second and each subsequent fiscal year during the period of this Agreement, Canada and Alberta agree to set out in an Annual Annex to this Agreement the following:

  • a) the agreed annual targets for the coming fiscal year for the results-based criteria or indicators referred to in section 7;
  • b) the rolling three year projection referred to in section 13.4 of Canada's annual allocations for contributions toward the costs of the provincial benefits and measures; and
  • c) the actual amount of Canada's contribution toward the costs of the provincial benefits and measures in the coming year, as determined pursuant to section 13.

16.2 Designated officials are authorized to sign the Annual Annex.

17.0 Financial accountability

17.1 For fiscal year 1997/98 and for each fiscal year thereafter during the period of this Agreement, Alberta shall submit to Canada a report containing:

  • a) an audited financial statement prepared in accordance with generally accepted accounting principles and practices and in a form prescribed by Canada, and certified by the Auditor General of Alberta, setting out the amount of costs that Alberta has actually incurred in that fiscal year in respect of each provincial benefit and measure. The audit shall be conducted based upon audit criteria including the degree of materiality established in a letter of engagement agreed to by both parties in consultation with the Auditor General of Alberta and the Auditor General of Canada, and
  • b) a statement from the Auditor General of Alberta certifying that all payments received from Canada in the fiscal year on account of Canada's contribution to its administration costs were paid in respect of administration costs actually incurred in that fiscal year.

17.2 The report shall be submitted no later than three months after the end of the fiscal year to which it relates.

18.0 Overpayment/lapsing funds

18.1 In the event that payments made to Alberta under this Agreement exceed the amounts to which Alberta is entitled, the amount of such excess is a debt owing to Canada and shall be repaid to Canada forthwith.

18.2 Any unutilized funds in a given fiscal year will lapse.

19.0 Public information

19.1 Alberta agrees to give public recognition of Canada's role in providing financial assistance under this Agreement to support the provincial benefits and measures.

19.2 Canada and Alberta agree to jointly prepare public information material and jointly organize and participate in any public announcement relating to the signing of this Agreement and of any Annexes provided for in this Agreement that are to be signed in the future.

19.3 Alberta agrees to the prominent display of the Canadian flag and other forms of federal identification. The contribution of the federal government to employment programming funded in whole or in part by Part II, of the Employment Insurance Act, will be recognized by means of information intended for the public published by Alberta including:

  • a) pamphlets, brochures or applications for assistance for the use of Employment Insurance clients in connection with a provincial benefit or measure;
  • b) reports of departments and agencies of Alberta;
  • c) evaluation reports; and
  • d) letterhead, signage, advertising.

19.4 Alberta agrees that offices of Alberta where provincial benefits and measures or services to NES clients are delivered will have appropriate signage indicating that the programs and services provided at the offices are funded in whole or in part by the Government of Canada;

19.5 Alberta agrees that where automated information kiosks supplied by Canada providing labour market information to the public are installed on premises operated by Alberta, the premises will have appropriate signage identifying that the kiosks are supplied by Canada.

19.6 Alberta agrees to ensure that cheques or deposit statements for EI clients receiving assistance under its provincial benefits either directly from Alberta or through an organization receiving funding from Alberta, will include the Government of Canada logo.

19.7 The parties agree to consult regarding, and give each other reasonable advance notice of, any major public relations initiatives to inform Canadians of activities being undertaken in the context of this Agreement.

20.0 Transition committee

During the Transition Period, Canada and Alberta agree to form a Transition Committee. The Committee will perform a review of delivery arrangements within the context of Annex 2, and establish an implementation plan for the Agreement which includes the transfer of financial, human, and material resources.

21.0 Designated officials

21.1 Canada and Alberta agree to designate the Regional Executive Head of Human Resources Development Canada, and the Deputy Minister of Alberta Advanced Education and Career Development to perform any ongoing functions required to fulfill the terms and conditions of the Agreement.

21.2 Designated officials, or his/her delegate shall meet as required to complete the Annual Annex, determine the authorities required by third party delivery agents, review the annual evaluation plan and its results, and resolve issues that emerge from the Agreement.

22.0 Period of agreement

Shall be effective from the day of signing and, subject to section 23, will remain in force for an indefinite period.

23.0 Termination

23.1 This Agreement cannot be unilaterally terminated during the first three fiscal years during the period of this Agreement. Canada and Alberta agree to review the Agreement after the first three fiscal years to assess if mutually desirable results are being achieved and to determine if they should continue their labour market development arrangements under this Agreement. After completion of that review, either party can terminate the Agreement by giving one fiscal year's written notice of intention to terminate to the other party.

23.2 In the event of termination of this Agreement, Canada and Alberta agree that they will work together to ensure that services to clients will not be unduly affected or interrupted by the termination.

23.3 In the event that either party wishes to terminate this Agreement by providing the required notice in writing:

  • a) any and all costs attributable to the termination shall be shared in a reasonable manner between the two parties; and
  • b) both parties shall take reasonable steps to reduce the costs attributable to the termination.

23.4 In the event that either party wishes to terminate this Agreement by providing less than the required notice:

  • a) any and all costs of the non-terminating party reasonably attributable to the early termination shall be the responsibility of the terminating party; and
  • b) the non-terminating party shall take reasonable steps to reduce the costs attributable to the early termination.

23.5 Canada affirms its continuing responsibility for insured participants should this Agreement be terminated.

24.0 Amendment

24.1 This Agreement may be amended at any time by the mutual consent of the parties. To be valid, any amendment shall be in writing and signed, in the case of Canada, by Canada's Minister of Human Resources Development and the Commission, and in the case of Alberta, by the Minister of Alberta Advanced Education and Career Development.

24.2 Notwithstanding section 24.1, an amendment to any Annex to this Agreement, may be made by the written agreement of designated officials of the parties.

25.0 Equality of treatment

During the term of this Agreement, if a province or territory other than Alberta negotiates a Labour Market Development Agreement with Canada, based on Canada's May 30, 1996 proposal, and any provision of that agreement is more favourable to that province or territory than what was negotiated with Alberta, upon request by Alberta, Canada agrees to amend the Agreement in order to afford similar treatment to Alberta.

26.0 General

26.1 No member of the House of Commons, or member of the Legislative Assembly of Alberta shall be admitted to any share or part of this Agreement or to any benefit arising therefrom.

26.2 This Agreement, including Annexes 1 to 10, the Reference documents and, the Annual Annexes, comprise the entire agreement entered into by the parties with respect to the subject matter hereof.

This Agreement has been signed on behalf of Canada by the Minister of Human Resources Development and the Canada Employment Insurance Commission this 6th day of December 1996.

______________
Witness

______________
Minister of Human
Resources Development

______________
Witness

______________
Chairperson, Canada Employment
Insurance Commission

This Agreement has been signed on behalf of Alberta by the Minister of Advanced Education and Career Development, and the Minister of Federal and Intergovernmental Affairs, this 6th day of December, 1996.

______________
Witness

______________
Minister of Advanced Education and
Career Development

______________
Witness

______________
Minister of Federal and
Intergovernmental Affairs

Annex 1 - National Employment Service functions

1. Purpose

The purpose of this Annex is to set out which party will discharge National Employment Service functions in Alberta, within the context of the EI legislation and the May 30, 1996 proposal to provinces and territories.

2. Service Needs Determination

It is jointly agreed that Alberta will provide Service Needs Determination services. This includes the identification of an individuals need for employment services and temporary income support, and referral to services as appropriate.

3. Employment Counselling

It is jointly agreed that Alberta will provide Employment Counselling. This includes in-depth interviews and consultations which result in the identification of barriers to continuing employment, and the development of remedial plans of action.

4. Labour Exchange Services

It is jointly agreed that Alberta will provide Labour Exchange Services that gather and disseminate job vacancy information with a view to:

  • a) assisting workers to obtain employment; and
  • b) assisting employers to obtain workers.

Alberta will undertake these responsibilities in a fashion methodologically consistent with the operation of the National Labour Exchange System whereby:

  • a) job order taking and the dissemination of job order information are done in both official languages;
  • b) quality of service standards are applied;
  • c) linkages are maintained through the National Labour Exchange so that Canadians have full access to Alberta work opportunities, and Alberta employers have full access to Canadians seeking work;
  • d) there is no discrimination within the meaning of the Canadian Human Rights Act, or because of political affiliation;
  • e) kiosks and the HRDC intranet are maintained with up-to-date information;
  • f) the International Labour Organization convention on labour exchange are applied; and
  • g) Canada's contributions are recognized.

5. Labour market information

Canada and Alberta agree to the joint preparation of a strategy that sets out how each party will collaborate in the gathering, production and dissemination of local and provincial labour market information. The strategy will be designed to:

  • a) assist workers to prepare for, obtain, and retain employment;
  • b) assist employers to obtain, upgrade and retain workers;
  • c) inform the delivery of provincial benefits and measures; and
  • d) inform Canada's continuing delivery of Part 1 Employment Insurance Income Benefits, Labour programming including fair wages and Employment Equity, and the authorization of foreign workers.

The joint strategy will be done in a fashion consistent with the National Labour Market Information System whereby:

  • a) labour market information is available in both official languages;
  • b) the COPS framework and methodology, currently defined and supported in partnership with provinces, continues;
  • c) linkages are maintained through the national Labour Market Information System and CanWorkNet so that Canadians have access to Alberta labour market information from elsewhere in Canada;
  • d) kiosks and the HRDC intranet continue to receive up to date information;
  • e) NLMIS methodological consistency and operational standards are applied to ensure data quality;
  • f) partnerships are encouraged; and
  • g) the contribution of both parties and other partners are recognized.

Labour market information encompasses national, provincial and local components, and is structured to include the following elements:

  • a) occupational profiles and forecasts;
  • b) community profiles;
  • c) human resource profiles;
  • d) industrial sectoral profiles;
  • e) wage and salary data and conditions of employment;
  • f) vacancy and employment opportunities;
  • g) labour market reviews and trends;
  • h) occupational demand ( high opportunity ) lists;
  • i) potential employer lists;
  • j) major project updates;
  • k) learner information about training providers;
  • l) work search tools; and
  • m) Newsflashes.

Canada and Alberta will clarify their respective roles and responsibilities, how partnerships can be encouraged, and ensure complementarity such that there is no unnecessary overlap and duplication.

Annex 2 - Delivery arrangements

1.0 General description

The Government of Alberta will operate a network of Canada/Alberta Service Centres which will provide access to provincial labour market programming. Each office will provide access to the functions of the National Employment Service identified in Annex 1, as well as access to the provincial programs and services offered by Alberta under Part II. Wherever possible, measures which are designed to assist the unemployed are offered at common locations.

2.0 Alternate delivery arrangements

  1. In communities where both Canada and Alberta maintain infrastructure and staff, access to provincial and federal labour market programs and services (arrangements may be made to include non-labour market programs where appropriate outside of, but "in concert" with this Agreement), will be provided through a common front-end. The latter is to include reception, screening, needs determination and information functions delivered by federal and provincial staff operating under common job descriptions. Supervision of the common front-end will be supplied by Alberta to minimize overlap and duplication. Other co-located delivery services beyond this Agreement will be subject to the management discretion of the responsible jurisdiction. The following locations are considered subject to this provision:
    • i) Edmonton
    • ii) Calgary
    • iii) Lethbridge
    • iv) Red Deer
    • v) Grande Prairie
  2. In communities where Alberta maintains physical infrastructure and staff, and where Canada finds it ineffective to do so as a result of this Agreement, the parties agree to establish on a site by site basis, arrangements that will allow client access to federal and provincial labour market programs and services through a single point of access. This will normally involve the provision of directional information, pamphlets, application assistance, and/or technology access (where appropriate) at a cost identified in a fee schedule (still to be completed), or, the co-location of remaining federal staff who will discharge client access functions to remaining federal programs. Arrangements for the provision of non-labour market programming may be established at the discretion of the parties outside of this Agreement. Locations which are subject to this provision are:
    • i) Ft. McMurray
    • ii) Lloydminster/Vermillion/Wainwright/St. Paul/Bonnyville Footnote 1
    • iii) Edson/Hinton Footnote 2
    • iv) Camrose
    • v) Medicine Hat
    • vi) Peace River
    • vii) Pincher Creek
    • viii) Athabasca
    • ix) Slave Lake
    • x) Rocky Mountain House
  3. In communities where neither Canada nor Alberta maintain physical infra- structure or staff, the parties agree to contract, in so far as is possible, with the same community-based service delivery provider for the provision of their respective programs and services. Locations subject to this provision include:
    • i) Barrhead
    • ii) Brooks
    • iii) Canmore
    • iv) Drayton Valley
    • v) Drumheller
    • vi) Jasper
    • vii) Blairmore
    • viii) Stettler
    • ix) Westlock
    • x) Wetaskiwin

3.0 Systems

The parties agree to develop a framework for cooperation in this area.

Annex 3 - Results targets for fiscal year 1997/98

1.0 Purpose

The EI Act and the proposal to provinces and territories regarding labour market arrangements are explicit on required results and the need for results verification in terms of monitoring, assessment, and evaluation. Through this Annex, Canada and Alberta set out these mutually agreed to results targets.

2.0 Results measurements

  1. Expected primary indicator results

    The focus here is a rapid return to work for active EI claimants leading to short term savings to the EI Account.

    1. Priority EI claimant access

      At least 65% of clients who participate in Alberta benefits and measures will be active claimants.

    2. EI clients returned to work

      At least 14,481 insured participants returned to employment or self -employment, after being referred to Alberta programs and services. While the count includes those returning to work during their benefit entitlement period, and those returning to work after their benefit entitlement period, priority will be given to active claimants.

    3. Savings to the EI account

      At least $99.8 million in short term savings, being the difference between the individual's entitlement to regular benefits and the actual pay out of regular Part 1 benefits to that individual (unpaid entitlements).

  2. Measures to track costs

    The focus is on tracking current unit costs as an early indication of cost-effectiveness.

    • Unit costs of insured participants, employed or self-employed (Part 1 and Part 2), by type of intervention, and, by client type (active EI claimant or not).

    The definitions and methodology to measure the primary indicator results, and the measures to track costs, will be established by Canada. It is recognized however that this being the first year, the primary indicator results targets are "soft". Emphasis will be on establishing the systems and client information exchange linkages such that data integrity is achieved, results measured, and the information required for Canada's annual report to Parliament is available on a timely basis. Reporting by Alberta will be at least quarterly; Annex 4 identifies the agreed to information and data sharing requirements. The Alberta primary results targets, and the results achieved will be public information.

  3. Medium and longer term qualitative evaluation measures

    The focus here is on determining whether the primary indicator results, and cost tracking measures are sustained, along with broader medium and longer term impacts.

    1. sustained employment or self-employment as a result of Alberta's benefits and measures
    2. reduction in dependency on EI and government assistance
    3. savings to social assistance and the EI Account
    4. increased tax revenues from earned income
    5. others as may be agreed to by the Joint Evaluation Committee.

    During 199798 Canada and Alberta also agree to work cooperatively to establish a methodology for setting local results targets that are consistent with the achievement of the Alberta results totals. These local results targets may be made public if both parties agree.

    The Joint Evaluation Committee, as agreed to in section 8 of the Canada- Alberta Agreement on Labour Market Development, will jointly establish the evaluation framework that links the short term Primary Indicator Results and Cost Tracking Measures, within the broader set of medium and longer term evaluation Qualitative Measures.

3.0 1998\99 Annual Results Annex

Canada and Alberta agree to initiate discussions to establish the 199899 Annual Results Annex no later than January, 1998.

Annex 4 – Canada – Alberta exchange of information and data sharing arrangements

Amending Agreement #1 for Annex 4 of the Canada – Alberta Labour Market Development Agreement

Between

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

And

Her Majesty the Queen in Right of Alberta (herein referred to as “Alberta”), as represented by the Minister of Labour

Whereas, Canada and Alberta entered into a Labour Market Development Agreement on December 6, 1996 (hereinafter referred to as the “LMDA”), in which Canada and Alberta agreed to certain arrangements relating to the provision of contributions by Canada pursuant to section 63 of the Employment Insurance Act to support the costs of benefits and measures (referred to in the LMDA as “provincial benefits and measures”) provided by Alberta that are similar to Canada's employment benefits and support measures and that are consistent with the purpose and guidelines of Part II of the Employment Insurance Act;

Whereas Canada and Alberta wish to amend Annex 4 of the LMDA entitled “Information and Data Sharing Arrangements”;

Whereas under section 24.2 of the LMDA, the designated officials of Canada and Alberta are authorized to sign amendments to any Annex to the LMDA;

Now, therefore, Canada and Alberta agree as follows:

  1. Annex 4 of the Canada-Alberta LMDA is hereby replaced in its entirety by the attached Annex 4, Exchange of Information and Data Sharing Arrangements, which shall be binding on the parties effective as of the date of signing of this Amending Agreement.
  2. The LMDA in all other respects shall remain the same.

Signed on behalf of Canada this 8th day of September, 2016.

______________
Witness

______________
Michael Gardiner
Assistant Deputy Minister
Assistant Deputy Minister’s Office
Western Canada and Territories Region

Signed on behalf of Alberta this 29 day of September 2016

______________
Witness

______________
Leann Wagner
Assistant Deputy Minister
Strategy and Policy Division
Ministry of Labour, Alberta

Approved pursuant to the Government Organization Act

______________________________________________
Intergovernmental Relations, Executive Council

______________________
Date

1.0 Purpose

1.1 The purpose of this Annex to the Canada-Alberta Labour Market Development Agreement (LMDA) is to provide for the exchange of information, including personal information, as defined in section 3 of Canada’s Privacy Act and section 1 of Alberta’s Freedom of Information and Protection of Privacy Act, and “information” as defined in subsection 30(1) of the Department of Employment and Social Development Act (DESD Act), between the parties. Personal information includes social insurance numbers.

2.0 Authorities

Canada’s Authorities

2.1 With respect to the information to be provided by Canada to Alberta under section 3 of this Annex, Canada confirms that it is authorized under subsection 34(1) of the Department of Employment and Social Development Act (DESD Act) to provide such personal information to Alberta for the purposes set out in section 3. In this regard:

  1. (a) the personal information set out in section 3 consists of information obtained by the Canada Employment Insurance Commission or the Department of Employment and Social Development from persons under the Employment Insurance Act (EI Act), and of information prepared from such information;
  2. (b) subsection 34(1) of the DESD Act authorizes the disclosure of the aforementioned personal information to any person or body for the administration or enforcement of the program for which it was obtained or prepared; and
  3. (c) the personal information described in section 3 of this Annex will be disclosed to Alberta only for the purposes described herein.

2.2 With respect to the information to be collected by Canada from Alberta under section 4 of this Annex, Canada confirms that it is authorized under the EI Act to collect such personal information from Alberta for the purposes set out in section 4.

Alberta’s Authorities

2.3 With respect to the personal information to be provided by Alberta to Canada under section 4 of this Annex, Alberta confirms that it is authorized under paragraph 35 of Alberta’s Freedom of Information and Protection of Privacy Act (FOIP Act) to provide such information to Canada for the purposes set out in section 4.

2.4 With respect to the information to be collected by Alberta from Canada under section 3 of this Annex, Alberta confirms that it is authorized under the FOIP Act to collect such personal information from Canada for the purposes set out in section 3.

3.0 Information to be provided by Canada to Alberta

3.1 Canada will provide to Alberta, when requested by Alberta, on a per individual basis, the following personal information under its control from an individual’s file for the purposes of:

  1. (a) assisting Alberta in establishing and verifying if the individual qualifies as an EI client who is not an active EI claimant (i.e. who qualifies as a former EI claimant) and is therefore eligible for, or entitled to, assistance under Alberta’s programs:
    • name
    • social insurance number
    • address
    • postal code
    • telephone number
    • date of birth
    • federal office code – if available
    • gender
    • language (French or English)
    • EI client status, with explanatory messages
    • Provincial/Territorial Parental Benefits(P/TPB), if applicable, with explanatory
    • messages;
    • identification if on an intervention, with explanatory messages; and
  2. (b) in respect of an individual, who has been determined to be an active EI claimant who is eligible for, or entitled to, assistance under Alberta’s programs, assisting Alberta in determining the nature and level of financial assistance to be provided to the EI client under Alberta’s programs:
    • name
    • social insurance number
    • address
    • postal code
    • telephone number
    • date of birth
    • federal office code – if available
    • gender
    • language (French or English)
    • EI client status, with explanatory messages
    • P/TPB client status, if applicable, with explanatory messages
    • Identification if on an intervention, with explanatory messages

EI claim information:

  • benefit period commencement (BPC)
  • type of EI benefit (claim type, e.g. regular, etc.)
  • number of eligible weeks
  • number of weeks paid (number of weeks paid in special benefits and number of weeks paid in regular benefits identified if on same claim)
  • EI benefit rate – Part I
  • federal tax deducted
  • provincial tax deducted
  • week of renewal
  • latest renewable week
  • last week processed
  • expected end date of Part I
  • apprenticeship (yes/no)
  • apprenticeship waiting period waived (yes/no)
  • stop payment – yes/no
    • if yes – date of stop payment
  • disentitlements, if applicable
    • start date
    • end date
    • explanatory messages
  • disqualifications, if applicable
    • start date
    • disqualification weeks remaining
      • explanatory messages
  • allocation of earnings
    • start week
    • end week
    • allocation of earnings weekly amount
    • amount of last week of allocation of earnings

Canada, may on its own initiative, provide to Alberta an update on all or any of the above information, for use by Alberta in reviewing, as needed, the purpose and amount of the financial assistance provided to the EI recipient by Alberta.

3.2 When Canada is unable to successfully process the information submitted by Alberta pursuant to section 4.2 of this Annex, regarding the referral by Alberta of an active EI claimant to an Alberta benefit, for purposes of sections 25 and 27 of the EI Act, Canada will provide to Alberta any or all of the following personal information under its control on the EI clients so referred, for use by Alberta in reviewing and/or modifying the information previously submitted to Canada:

  • name
  • social insurance number
  • EI client status
  • P/TPB client status
  • federal office code, if available
  • provincial office code, if available
  • intervention type (e.g. training, job creation, self-employment)
  • training ID (for training interventions)
  • institution code (if available)
  • apprentice indicator
  • no claimant report code (for apprentices)
  • start week(s)/date(s) of intervention
  • end week(s)/date(s) of intervention
  • intervention break start week/date
  • intervention break end week/date
  • agreement/file number
  • rate (EI Part II)
  • error code
  • definition of error code

3.3 Canada will provide to Alberta on a monthly basis any or all of the following personal information under its control on all EI clients and non-EI clients who have received assistance from Alberta under Alberta programs, for use by Alberta for the review, analysis and verification of the data calculated/held by Canada for monitoring, assessment and reporting purposes. This information will be provided in a mutually agreed upon format.

3.3.1 Based on the monthly data files on EI clients and non-insured participants who are participating in Alberta programs funded with EI Part II monies, as provided by Alberta in section 4.3, the following personal information will be provided to Alberta by Canada in a return file to assist Alberta in reviewing and verifying Canada’s reporting of results on clients employed and unpaid benefits:

  • social insurance number
  • provincial office code
  • EI client status
  • benefit period commencement
  • initial benefit entitlement weeks
  • last week of entitlement
  • benefit rate
  • month code
  • last week processed
  • total weeks paid
  • weeks paid sub-counter
  • unpaid benefits
  • training ID
  • intervention code
  • intervention start date
  • intervention end date
  • training/self-employment project start week
  • training/self-employment project end week
  • action plan ID
  • action plan start date
  • action plan result (case manager)
  • action plan result week/date
  • result week (calculated)
  • apprenticeship client indicator
  • group services type
  • date of group session
  • unit 143 – LMDA EI claimant who finds employment before the end of their entitlement period as a result of an Alberta program
  • unit 144 – LMDA EI claimant who is recorded as employed after their entitlement period as a result of an Alberta program
  • unit 145 – LMDA EI claimant who becomes employed before the end of their entitlement period as a result of an Alberta group service
  • unit 146 – former LMDA EI claimant who becomes employed as a result of an Alberta program
  • unit 152 – LMDA EI Part I unpaid benefits resulting from EI claimants employed before end of insurance entitlement period, as a result of an Alberta program (corresponds to unit 143 – non-TWS)
  • unit 153 – LMDA EI Part I unpaid benefits resulting from EI claimants employed before end of insurance entitlement period as a result of an Alberta TWS intervention (wage subsidy - corresponds to unit 143 – TWS program)
  • unit 154 –LMDA EI Part I unpaid benefits resulting from EI claimants employed before end of insurance entitlement period as a result of an Alberta group service (corresponds to unit 145)

3.4 Upon request, and based on the monthly data files on EI clients and non-insured participants who are participating in Alberta programs funded with EI Part II monies, as provided by Alberta in section 4.3, the following personal information will be provided to Alberta for the review and verification of Canada’s reporting of results. The personal information will be provided in two different data sets (by client and intervention):

  • name
  • social insurance number
  • age
  • gender
  • designated group indicators (persons with disabilities, members of visible minority groups, Aboriginal peoples)
  • provincial office code
  • EI client type
  • action plan ID
  • action plan start date
  • action plan end date
  • action plan result
  • action plan result date
  • missing action plan indicator
  • intervention code (type of intervention)
  • intervention start date
  • intervention end date

3.5 Canada will provide to Alberta, when requested by Alberta and based on the selection criteria identified by Alberta, on a per individual basis, any or all of the following personal information under its control from an individual’s file for the purpose of assisting Alberta in contacting EI applicants who may be interested in receiving assistance under Alberta’s programs funded under this LMDA, in order to facilitate their return to work:

  • name
  • social insurance number
  • address
  • postal code
  • telephone number
  • e-mail address (if available)
  • gender
  • date of birth
  • official language of service (written)
  • official language of service (spoken)
  • federal office code associated with the client’s postal code
  • provincial office/catchment code associated with the client’s postal code
  • referral type (occupation in demand/job-ready or other)
  • referral source (Appli-web, second referral)
  • referral code and reason (i.e. the targeting criteria used to refer the client)
  • National Occupational Classification (NOC) code for the most recent job

3.6 Upon request, Canada will provide to Alberta, the following personal information under its control on all EI clients residing in Alberta who are active EI claimants and who are in receipt of regular or fishing benefits, to assist Alberta in the strategic planning of the delivery of its programs:

  • postal code (first three digits)
  • provincial office code, if available
  • EI economic region
  • age at benefit period commencement
  • preferred official language (French or English)
  • gender
  • disability status (where available as self-identified information)
  • visible minority (where available as self-identified information)
  • Aboriginal group (where available as self-identified information)
  • education level (where available as self-identified information)
  • EI claim status
  • EI claim category (long-tenured worker, occasional claimant, frequent claimant)
  • regular EI claimant without declared earnings – yes/no
  • seasonal user
  • weekly benefit rate
  • number of entitlement weeks
  • renewal week
  • benefit period commencement
  • first week of the last claimant’s report sent
  • cut-off date (first insurable week)
  • insured weeks/hours
  • last week processed
  • total number of weeks paid
  • total benefits paid since the claim began
  • last week worked
  • insurable earnings
  • National Occupational Classification (NOC) code of last job
  • North American Industry Classification System code of last job

Any reports created by Alberta or Canada involving these data elements must be in cells of no less than 10.

3.7 Alberta understands that it cannot use any of the personal information received from Canada under this Annex for research or statistical purposes.

3.7.1 Should Alberta wish to receive from Canada personal information for research and/or statistical purposes, Canada will assess each request on a case by case basis. Canada may make personal information available to Alberta for research and/or statistical purposes upon being satisfied that the conditions set out in section 38 of the DESD Act are met. The information to be shared would be the subject of a separate information sharing agreement.

3.8 For the purposes of detecting overpayments of financial assistance due to error, misrepresentation or fraud, in relation to an individual or individuals receiving, or who have received assistance from Alberta under Alberta programs funded under this LMDA, Canada will provide to Alberta where available and upon written request, on a per individual basis, any or all of the following personal information under its control about an individual:

  • name
  • social insurance number
  • birth date
  • address
  • postal code
  • telephone number
  • type of benefits
  • benefit commencement period
  • waiting period weeks (in week code)
  • gross weekly benefit rate (excluding the family supplement)
  • net weekly benefit rate (excluding the family supplement)
  • claim termination date
  • number of entitlement weeks
  • last week processed (in week code)
  • weeks paid (in week code)
  • payment indicator for each of the declarations referenced
  • name and address of employer who issued the last record of employment used to establish the EI claim during which the client began participation in an Alberta intervention
  • NOC code of last job
  • number of insurable hours of last job
  • explanatory messages

3.9 Canada may also, on its own initiative, provide to Alberta the information listed in section 3.8 about any individual who has received, or is receiving, assistance under Canada’s programs where it suspects that the individual was/is not entitled to that assistance, and/or may have received or be receiving insurance benefits under Part I of the EI Act to which the individual was/is not entitled.

3.10 Following amendments to Canada's EI Act, Canada will provide to Alberta, when requested by Alberta, on a per individual basis, any or all of the following personal information under its control in respect of each individual who has been determined to be an active EI claimant who is receiving or has recently received financial assistance while participating in an Alberta program, to assist Alberta in communicating with the client and/or in determining whether any revisions to Alberta financial assistance are required:

  • name
  • social insurance number
  • address
  • postal code
  • telephone number
  • language (English or French)
  • federal office code, if available
  • Part I benefit period commencement (BPC)
  • Part I end date
  • original EI entitlement (in weeks)
  • amended EI entitlement (in weeks)
  • total weeks paid to date
  • last week processed
  • intervention type
  • training ID
  • start week(s)/date(s) of intervention
  • end week(s)/date(s) of intervention
  • agreement/file number
  • benefit rate
  • last renewable week

4.0 Information to be provided by Alberta to Canada

4.1 Alberta will provide Canada, on a per individual basis, the following personal information under its control about each of its clients who has submitted an application under one of Alberta’s benefits and measures, for the purposes of establishing and verifying if the individual qualifies as an EI client:

  • social insurance number
  • name
  • eligibility date

4.2 Alberta will provide to Canada the following personal information under its control about each EI client who is an active EI claimant and who is receiving assistance under Alberta programs for the following purposes:

  • (a) to ensure that EI clients who are active EI claimants continue to receive the insurance benefits to which they are entitled while participating in an Alberta program (for purposes of section 25 of the EI Act):
    • name
    • social insurance number
    • provincial office code
    • intervention type (e.g. training, job creation, self-employment)
    • training ID (for training interventions)
    • institution code (if available)
    • start week(s)/date(s) of intervention
    • end week(s)/date(s) of intervention
    • intervention break start week/date (if available)
    • intervention break end week/date (if available)
    • authorization for absence from Canada during intervention, with dates (if available)
    • agreement/file number (if available)
    • apprentice indicator (if available)
    • no claimant report code (for apprentices) (if available)
    • rate (EI Part II)
  • (b) to allow Canada to verify the ongoing eligibility for, or entitlement to, insurance benefits (for the purposes of sections 25 and 27 of the EI Act):
    • name
    • social insurance number
    • intervention type
    • date for absence from or for leaving the intervention prior to completion
    • reason for absence from, for departure, for abandoning, or for cancelling participation in the intervention, if known
  • (c) to allow Canada to determine the eligibility for, or entitlement to, insurance benefits of an individual who is authorized by Alberta to quit their job in order to participate in an Alberta program (for the purposes of section 25 of the EI Act):
    • name
    • social insurance number
    • date on which the individual is authorized to quit their job (last day of work)
    • start date of participation in the Alberta program, and rationale for any gap of more than two weeks
    • name and signature of designated authority, with date

4.3 Where available, Alberta will provide to Canada the following personal information under its control:

  • (a) about each EI client who is participating in Alberta programs, and
  • (b) for each non-insured participant who is participating in Alberta programs funded with EI Part II monies, for the purpose of assisting Canada in monitoring, assessing and evaluating the effectiveness of the assistance provided by Alberta under Alberta’s programs which Canada is required to do under Articles 8 and 11 of this LMDA:
    • name
    • social insurance number
    • address
    • postal code
    • telephone number
    • date of birth
    • gender (as self-identified information)
    • disability status (as self-identified information)
    • visible minority (as self-identified information)
    • Aboriginal group (as self-identified information)
    • educational attainment
    • marital status
    • family type
    • number of dependents
    • citizenship/immigration status
    • immigration – date of arrival in Canada
    • official language preferred (French or English)
    • labour force attachment prior to intervention
    • current/last employment, including NOC code, years of experience, part-time/full-time, start date, end date, salary, reason for leaving job
    • type of benefit income from government sources
    • EI client status
    • social assistance client status
    • provincial office code
    • action plan ID
    • start date of action plan
    • provincial intervention code
    • name of intervention in which individual is involved, including apprenticeship
    • agreement/file number
    • start date of intervention
    • end date of intervention
    • duration of intervention (days)
    • language of intervention received (French or English)
    • group services type
    • group services completion date
    • language of service (French or English)
    • NOC code for training
    • type of training institution
    • training type/name
    • for Self Employment Benefit (SEB): type of assistance (coaching, business plan, ongoing technical assistance)
    • intervention outcome (including reason for non-completion, where available)
    • intervention result
    • date of intervention result
    • end date of action plan
    • action plan result
    • date of action plan result
    • type of employment obtained (full-time/part-time)
    • type of employment obtained (year round / seasonal)
    • type of employer (e.g. private sector, public sector, non-profit organization)
    • NOC code of employment obtained
    • earnings (hourly/weekly/monthly)

The above information will be updated by Alberta on a monthly basis, or (for periodic evaluations) upon request, when available.

4.4 For the purposes of detecting overpayments of insurance benefits under Part I of the EI Act, due to error, misrepresentation or fraud, to an individual or individuals who are participating in, or have participated in Alberta programs funded under this agreement, Alberta will provide to Canada upon written request on a per individual basis, any or all, if available, of the following personal information under its control about an individual:

  • name
  • social insurance number
  • birth date
  • address
  • postal code
  • telephone number
  • reason for separation from employment, if known (pre-intervention)
  • whether or not the client reported for an interview as directed
  • interview details (counsellor seen/scheduled to be seen, date, time and location of interview)
  • method used to direct client to report
  • reasons for not reporting
  • reason client is not capable of work/intervention/service
  • reason client is not available for work/intervention/service
  • authorization for absence from Canada during intervention, with dates, if applicable
  • date(s) absent from Canada/area without authorization
  • reason absent from Canada/area without authorization
  • intervention type (e.g. training, job creation, self-employment)
  • training ID (for training interventions)
  • institution code (if available)
  • start week(s)/date(s) of intervention
  • end week(s)/date(s) of intervention
  • intervention break start week/date
  • intervention break end week/date
  • agreement/file number
  • apprentice indicator
  • rate (EI Part II)
  • total number of weeks paid
  • last week paid
  • payment indicator for each EI Part II payment referenced
  • reason for withdrawal from program
  • reason for termination from program
  • reason earnings not reported to Canada during the weeks they were earned (if known)
  • date of return to work
  • employer name and address
  • employer telephone number
  • explanatory messages

4.5 Alberta may also, on its own initiative, provide to Canada the information listed in section 4.4 about any individual who has received, or is receiving, assistance under Alberta’s programs where it suspects that the individual was/is not entitled to that assistance, and/or who may have received or be receiving insurance benefits under Part I of the EI Act to which the individual was/is not entitled.

4.6 Following amendments to Canada's EI Act, Alberta will provide to Canada any or all of the following personal information under its control in respect of each individual who is receiving or has recently received financial assistance while participating in an Alberta program, in order for Canada to determine which of these individuals is receiving or has recently received Part I benefits under that Act, which in turn will assist Alberta in communicating with the client and/or in determining whether any revisions to Alberta financial assistance are required:

  • name
  • social insurance number
  • address
  • postal code
  • start week(s)/date(s) of Alberta intervention
  • end week(s)/date(s) of Alberta intervention

4.7 Alberta will provide to Canada the following personal information under its control on the results of Alberta’s efforts to contact the clients identified by Canada under section 3.5 of this Annex, for the purpose of assisting Canada in assessing the impact of those efforts in facilitating the client’s return to work, and verifying the client’s ongoing eligibility for, or entitlement to, insurance benefits (for the purposes of sections 25 and 27 of the EI Act):

  • social insurance number
  • date of successful contact
  • result of contact
  • date of scheduled interview with a designated official or case manager (if applicable)
  • reason why the client did not appear for the scheduled interview (if applicable)
  • comments

5.0 Security Requirements for user identity and access management

5.1 In the context of allowing an Alberta employee to access Canada’s systems and personal information held by Canada, Alberta will provide to Canada a written description of its policies and procedures relating to performing and managing Personnel Security Screening Checks (PSSC) when assigning an employee to a position that deals with personal information.

5.2 In accordance with the legislative, regulatory and policy requirements of their employer, Alberta employees who access personal information provided by the other party under this Agreement must obtain and retain a personnel security screening level that is commensurate with the handling of personal information.

5.3 The parties will ensure that only authorized individuals have access to and use of the personal information exchanged under this Agreement and only as is required for the performance of their duties under this Agreement.

5.4 Alberta will conduct PSSC of their employees and contractor’s employees based on standards similar or equivalent to those of the Government of Canada. Alberta PSSC will include a nation-wide criminal records check. Once Alberta has completed the PSSC for its own or a contractor’s employees, Alberta will retain a copy of the PSSC and the individual’s signed written consent to initiate the PSSC.

5.5 Alberta will provide an annual attestation that a valid PSSC for each of their employees is on file and that any risks identified during the screening process have been discussed with the other party prior to granting access. Alberta will retain, and upon request will provide to Canada, the following personal and non-personal information under its control for each Alberta employee who requires access to Canada’s systems and information, and who has completed the PSSC:

  • name, including middle name
  • date of the Personnel Security Screening Check completion
  • name of approving authority
  • position of approving authority
  • signature of approving authority, with date

5.6 Once a Personnel Security Screening Level has been granted, it remains valid for 10 years, provided there has not been a break in employment for a period of more than 1 year. Alberta will conduct a new Personnel Security Screening Check for their Authorized Users at least every 10 years (or more frequently, if required under Alberta’s policy), in order to update the Personnel Security Screening Level of their Authorized Users. ESDC may suspend system access for Authorized Users who’s Personnel Security Screening Level expires, until such time as their Personnel Security Screening Level is renewed.

5.7 Alberta will promptly inform Canada when an Alberta employee ceases to need access to any of Canada’s systems.

6.0 Information protection and security

6.1 All personal information obtained under this Agreement shall be collected, used, maintained, stored, retained, disclosed, destroyed or disposed of and otherwise administered and protected in accordance with all applicable legislation. Personal Information is to be safeguarded at a high level of protection to ensure the integrity, privacy and security of the disclosure process.

6.2 In the event of a breach/incident involving personal information under the care of Canada, Alberta will promptly inform ESDC’s Director, EI Part II, Benefits and Measures, of the breach/incident and follow the process described in Appendix A.

7.0 Mode of information exchange

7.1 Canada and Alberta agree to enter into a separate service level agreement outlining systems requirements.

7.2 Unless otherwise specified in this agreement, personal Information and reports covered by this Annex will be provided by each party in a mutually agreed format, frequency and manner.

7.3 Canada and Alberta agree to notify each other within a reasonable time of any change affecting communication protocols or methods, data bank access procedures or systems. The parties agree to participate in compatibility tests when changes are made to such protocols, methods or procedures.

7.4 Alberta may request improvements to Canada’s applications used by Alberta. If deemed appropriate, suggested improvements will be taken into account in Canada’s priority-setting process. Nothing in this clause limits the development activities that must be pursued by both parties in order to ensure personal information exchange between the two organizations.

7.5 Canada agrees to inform Alberta, in a timely manner, in accordance with the procedures agreed upon by both parties, of any new federal application or any new version of a federal application that is relevant to this Annex.

7.6 Canada and Alberta are committed to ensuring that the personal information they provide to each other under this Annex is reliable and is provided in a timely, secure, and confidential manner, and they agree to work together in achieving this goal.

8.0 Confidentiality, use and disclosure

8.1 Canada and Alberta undertake to use their best efforts to fully maintain and protect the confidentiality of the personal information they receive under this Annex.

8.2 Subject to sections 8.3 and 8.4, Canada and Alberta shall not, in respect of any personal information they obtain from each other under this Annex:

  • (a) use that information for a purpose other than that for which it was respectively provided to them; and
  • (b) disclose that information to any person or body for a purpose other than that for which it was respectively provided to them.

8.3 Canada and Alberta may use personal information they obtain from each other under this Annex for a purpose other than that for which it was obtained:

  • (a) with the written consent of the individual to whom that information relates; or
  • (b) if required by legislation.

8.4 Canada and Alberta may disclose personal information they obtain from each other under this Annex to any person or body for any purpose:

  • (a) with the consent of the individual to whom that information relates;
  • (b) in a form that cannot reasonably be expected to identify the individual to whom that information relates; or
  • (c) if required by legislation.

8.5 Unless otherwise required by law or authorized in writing by the other party and subject to section 8.2, a party shall not disclose any personal information, obtained from the other party under this Annex, to a third party for a purpose authorized herein unless there is a written agreement between that party and the third party imposing upon the third party obligations that are the same as those imposed upon that party under this Annex with respect to the protection of this information.

8.5.1 For the purpose of section 8.5, a “third party” does not include Shared Services Canada a department of the Government of Canada established under section 4 of the Shared Services Canada Act, S.C. 2012, c. 19, s.117 responsible for the provision of information technology (IT) infrastructure services to Canada, that may include e-mail, data centre (servers) and network services.

8.6 Alberta acknowledges that it is an offence under the DESD Act for anyone to knowingly make available information that is privileged thereunder or to knowingly use or allow such information to be used otherwise than in accordance with this annex. This provision applies to employees of Alberta as well as employees of ESDC to whom the information is disclosed.

8.7 In the event of a request under Canada’s Access to Information Act or Privacy Act for personal information obtained from Alberta under this Annex, Canada agrees to consult, when required, with Alberta prior to any disclosure of such information. In the event of a request under Alberta’s Freedom of Information and Protection of Privacy Act, for information obtained from Canada under this Annex, Alberta agrees to consult, when required, with Canada prior to any disclosure of such information. No consultation obligation referred to in this section will be construed as limiting any legal duty in respect of any disclosure referred to in this section.

9.0 Costs

9.1 Costs incurred by a party in carrying out its obligations under this Annex will be the responsibility of that party.

10.0 Information management

10.1 The personal information exchanged under this Annex shall be collected, used, maintained, stored, retained, disclosed, destroyed or disposed of and otherwise administered and protected in accordance with:

  • (a) in the case of Canada, the Privacy Act, the DESD Act, the EI Act, the Library and Archives of Canada Act and regulations thereto, and any other applicable federal legislation, the Government of Canada’s Policy on Government Security, the Electronic Documents and Records Management Solutions Standard, as well as all applicable federal and departmental policies, protocols, operating directives, and guidelines, governing the administrative, technical and physical safeguarding and disposal of the personal information; and,
  • (b) in the case of Alberta, the Freedom of Information and Protection of Privacy Act and regulations thereto, as well as all applicable provincial and departmental policies, protocols, operating directives, and guidelines, governing the administrative, technical and physical safeguarding and disposal of the personal information.

10.2 The parties will investigate all cases where they have reasonable grounds to believe that any of the conditions set out in this Annex has been or is likely to be breached. This includes any cases where it is alleged, suspected, or there is evidence, that there has been unauthorized collection, access, use, disclosure, modification, disposal or destruction of the personal information exchanged under this Annex, modification of a permitted use, misuse, or breach of confidentiality, or any incident which might jeopardize or has jeopardized the security or integrity of the parties’ respective computer systems or networks used to access and transmit the personal information, as outlined in Appendix A to this Annex.

10.3 The parties will comply with their respective policies related to the conducting of privacy impact assessments (PIA) and threat and risk assessments (TRA) covering the exchange of personal information under this Annex. When one party is conducting a PIA or TRA, the other party will provide information upon request related to their policies and procedures for managing the personal information provided by the first party, in order to facilitate the completion of the assessment. When the PIA or TRA is completed, the parties agree to provide a copy of the relevant portions of the related reports to each other.

10.3.1 Where issues are identified in either the PIA or the TRA, the parties agree to work together to address the issues.

10.3.2 When an issue cannot be resolved to the satisfaction of the other party, it shall be referred to the Designated Officials, under section 21.2 of the LMDA.

10.4 The parties will periodically audit their respective information management practices and procedures in the context of this Annex, to ensure:

  • (a) compliance with the requirements of section 10.1; and
  • (b) the security, confidentiality and integrity of the personal information exchanged under this Annex.

10.4.1 The methodology and format of such audits will be mutually agreed upon.

10.4.2 The parties agree to provide a copy of their respective audit reports and management/corrective action plans to each other.

10.4.3 Where deficiencies in a party’s information management practices affecting compliance with the requirements of section 8.1 or the security, confidentiality and integrity of information exchanged under this Annex are identified in an audit report, the party concerned shall take appropriate corrective action to remedy these deficiencies.

10.4.4 The parties agree to notify the other party of the actions taken to address any such deficiencies.

11.0 Accuracy of information

11.1 Each party will use its best efforts to ensure the completeness and accuracy of the personal information provided to the other under this Annex. However, it is understood and agreed that they cannot guarantee its accuracy and completeness and will, therefore, not be held responsible by the other party for any damage resulting from the transmission or use of any information that is inaccurate or incomplete.

12.0 Personal information collection, storage and access

12.1 Except as may be permitted by Alberta’s Freedom of Information and Protection of Privacy Act (FOIP Act), personal information (as defined therein) in Alberta’s custody or under Alberta’s control may only be stored or accessed in Canada.

12.2 Canada and Alberta will cooperate to ensure that the provisions of Alberta’s Freedom of Information and Protection of Privacy Act (FOIP Act) are respected.

13.0 General

13.1 This Annex can be modified with the written consent of both Parties.

Appendix A – Privacy breach requirements

A.1 In the event of a security incident involving personal information or privacy breach, which for the purpose of this agreement includes unauthorized access to or collection, use, disclosure, deletion, disposal or destruction of information, the party responsible for the privacy breach shall:

  1. (a) take immediate and reasonable steps to contain or limit the privacy breach (unauthorized access, use, disclosure, modification, destruction, disposal, misuse, or breach of confidentiality, or computer or network security breach), including but not limited to: stopping the unauthorized practice; recovering the records or personal information, where possible; shutting down access to information systems; revoking or changing computer and other access codes or correcting weaknesses in physical and/or IT security;
  2. (b) promptly investigate the cause of the privacy breach;
  3. (c) notify the other party;
  4. (d) notify the appropriate authorities if criminal activity is suspected;
  5. (e) notify the affected individual(s) whose personal information was inappropriately disclosed;
  6. (f) cooperate with the other party and its Information and/or Privacy Commissioner and its contractors and auditors in any investigation into or audit of the events;
  7. (g) following the investigation, provide a detailed written report of the circumstances related to any unauthorized access, use, disclosure, modification, destruction, disposal, misuse or breach of confidentiality or computer or network security breach to the other party;
  8. (h) take reasonable steps requested by the other party to address the current situation or prevent a reoccurrence; and,
  9. (i) notify the other party of any remedial actions taken.

A.2 Upon being notified of an instance of unauthorized access, use, disclosure, modification, misuse or breach of confidentiality, or computer or network security breach, the party so notified may:

  1. (a) review the steps proposed by the other party to address the current situation or prevent a recurrence of the non-compliance;
  2. (b) request that the other party take specific steps to address the current situation or prevent a recurrence; and/or, for serious breaches, suspend the exchange of personal information under this Annex until satisfied that the other party has complied with the Annex and with any reasonable requests made under this subparagraph.

For ESDC

Director, EI Part II, Benefits and Measures
Skills Employment Branch
Employment Programs and Partnerships Directorate
Employment and Social Development Canada
Place du Portage, Phase IV
140 Promenade du Portage, Phase IV, Mailstop 424
Gatineau, Quebec  
K1A 0J9
LMDA-SUPPORT-EDMT@hrsdc-rhdcc.gc.ca

For Alberta

Director, Labour Market Agreements and Evaluations
Ministry of Labour 
3rd floor Labour Building
10808 - 99 Avenue
Edmonton, AB
T5K 0G5

And,

Ministry Information Security Officer
Information Management and Information Technology
Ministry of Labour
4th floor Labour Building
10808 - 99 Avenue
Edmonton, AB
T5K 0G5

Annex 5 - Work Force Adjustment Directive

Preface

Treatment of represented employees

This Directive applies to all represented employees of the Public Service for which Treasury Board is the employer. In Part VII of this Directive, Special provisions regarding Alternative Delivery initiatives, some paragraphs describe entitlements for employees represented by bargaining agents who have NOT agreed in writing to be bound by this Directive specifically (i.e. who are NOT listed in Appendix B). Users of this directive must pay special attention when interpreting subsections 7.5.1, 7.7.1 and 7.7.2.

Treatment of excluded or unrepresented employees

With the exception of those references to unions and the National Joint Council, this Directive will also apply to all employees appointed on an indeterminate basis who are excluded or unrepresented with the exception of those employees to whom the Executive Employment Transition policy applies and will receive the same treatment as the employees whose bargaining agent has agreed in writing to be bound by this Directive (as per Appendix B). Any grievances for these employees shall be dealt with under the normal departmental grievance procedure.

General

Collective agreement

With the exception of those provisions for which the Public Service Commission (PSC) is responsible, this directive is deemed to be part of the collective agreements between the panics, and employees are to be afforded ready access to it.

Grievance procedure

In cases of alleged misinterpretation or misapplication arising out of this directive, the grievance procedure, for all represented employees within the meaning of the Public Service Staff Relations Act, will be in accordance with Section 7.0 of the National Joint Council By-laws.

Notwithstanding any other provisions on presenting grievances under the National Joint Council (NJC) grievance procedure, an affected, surplus or laid-off employee, or one who has received a notice of termination, who feels aggrieved by a department’s decision in applying or interpreting this directive in respect of his or her situation may grieve directly to the departmental liaison officer of the department that made that decision. If the matter is not resolved at this step to the grievor's satisfaction, the grievor may refer the department's reply to the grievance directly to the Administrative Committee in accordance with NJC by-laws and, with the bargaining agent's approval, to adjudication.

Objectives

It is the policy of the Treasury Board to minimize the impact of work force adjustment situations on indeterminate employees, primarily through ensuring that, wherever possible, alternative employment opportunities are provided to affected employees. It is, however, recognized that it is impracticable to guarantee the continuation of a specific position or job. The emphasis of this directive is, therefore, upon employment security rather than job security. To this end, every indeterminate employee whose services will no longer be required because of a work force adjustment will be guaranteed a reasonable job offer within the Public Service, except as provided in Part VII.

Application

This directive applies to all employees appointed indeterminately who are employed by departments or agencies listed in Part I of Schedule I to the Public Service Staff Relations Act, for which the Public Service Commission has the sole authority to appoint, with the exception of employees to whom the Executive Employment Transition policy or other directives on work force adjustment apply. Unless explicitly specified, the provisions contained in Parts I to VI do not apply to alternative delivery initiatives.

Unless explicitly specified, the provisions contained in Parts I to VI do not apply to alternative delivery initiatives.

Definitions

An accelerated lay-off (mise en disponibilité accélérée) - occurs when a surplus employee makes a request to the deputy head, in writing, to be laid off at an earlier date than that originally scheduled, and the deputy head concurs. Lay-off entitlements begin on the actual date of lay-off.

An affected employee (fonctionnaire touché) - is an indeterminate employee whose services are, or will no longer be, required because of a work force adjustment situation.

An alternative delivery initiative (diversification de mode d'exécution) - is the transfer of any work, undertaking or business of the Public Service to any body or corporation that is a separate employer or that is outside the Public Service.

An alternative position (autre poste) - is one identified by the employer that offers the likelihood of continued employment within the Public Service and, wherever possible, is at a level equivalent to the employee's former position.

An appointing department (ministère d'accueil) - is a department or agency which has agreed to appoint or consider for appointment (either immediately or after retraining) an individual declared surplus or a laid-off person.

Deputy head (administrateur général) - has the same meaning as in the definition of "Deputy Head" set out in section 2 of the Public Service Employment Act, and also means his or her official designate.

A home department (ministère d'attache) - is a department or agency declaring an individual employee surplus.

A laid-off person (personne mise en disponibilité) - is a person who has been laid off pursuant to PSEA 29(1) and who still retains a reappointment priority under PSEA 29(3).

A lay-off notice (avis de mise en disponibilité) - is a written notice of lay-off to be given to a surplus employee at least one month before the scheduled lay-off date. This period is included in the surplus period.

A lay-off priority (priorité de personne mise en disponibilité) — is a statutory priority for consideration for appointment accorded for one year following the lay-off date, pursuant to subsection 29(3) of the Public Service Employment Act, or the termination of employment pursuant to paragraph 11(2)(g.1) of the Financial Administration Act, to a person who has been laid off and who in the PSC’s opinion, is suitable for appointment to the Public Service.

Pay (remunération) - has the same meaning as "rate of pay" in the employee's collective agreement.

The priority administration system (système d'administration des priorités) - is a system designed by the PSC to appoint individuals entitled to statutory and administrative priorities.

Public Service (fonction publique) - means the several positions in or under any department, agency, or other portion of the Public Service of Canada specified in Schedule I, Part I of the Public Service Staff Relations Act (PSSRA), for which the Public Service Commission has the sole authority to appoint.

A reasonable job offer (offre d'emploi raisonnable) - except as provided in Part VII, is an offer of indeterminate employment within the Public Service, normally at an equivalent level but not precluding higher or lower levels, and is guaranteed to an employee affected by normal work force adjustment who is both trainable and mobile. Where practicable, a reasonable job offer shall be within the employee's headquarters as defined in the Travel Directive.

A reinstatement priority (priorité de réintégration) - is an appointment priority afforded by the Public Service Commission to certain individuals salary-protected under this directive for the purpose of assisting such persons to re-attain the appointment level from which they were declared surplus.

A relocation (réinstallation) - is the authorized geographic move of a surplus employee from one place of duty to another place of duty, beyond what, according to local custom, is a normal commuting distance; or of a laid-off person from his or her place of residence to his or her first place of duty, providing the latter is outside what, according to local custom, is a normal commuting distance from the place of residence, upon appointment to a position in the Public Service.

A relocation of work unit (réinstallation d'une unité de travail) - is the authorized move of a work unit of any size to a place of duty beyond what, according to local custom, is normal commuting distance from the former work location and from the employee's current residence.

Retraining (recyclage) - is on-the-job training or other training intended to enable affected employees, surplus employees and laid-off persons to qualify for known or anticipated vacancies within the Public Service.

A surplus employee (fonctionnaire excédentaire) - is an indeterminate employee who has been formally declared surplus, in writing, by his or her deputy head.

The surplus period (période de priorité d’excédentaire) – is at least six months from the receipt of Notification to the PSC to the proposed lay-off date.

A surplus priority (priorité de fonctionnaire excédentaire) - is an administrative priority accorded by the PSC to surplus employees to permit them to be appointed to other positions in the Public Service without competition or right of appeal.

Surplus status (statut de fonctionnaire excédentaire) - An indeterminate employee is in surplus status from the date he or she is declared surplus until the date of lay-off, until he or she is indeterminately appointed to another position, or until his or her surplus status is rescinded.

Work force adjustment (réaménagement des effectifs) - is a situation that occurs when a deputy head decides that the services of one or more indeterminate employees will no longer be required beyond a specified date because of a lack of work, the discontinuance of a function, a relocation in which the employee does not wish to relocate or an alternative delivery initiative

Authorities

This directive, made pursuant to section 11 of the Financial Administration Act is effective on July 16, 1996 and ceases to apply three years thereafter

Monitoring

Departments shall retain central information on all cases occurring under this directive, including: the reasons for the action; the number, occupational groups and levels of employees concerned; the dates of notice given; the number of employees placed without retraining; the number of employees retrained (including person-months utilized in such training); the levels of positions to which employees are appointed and the cost of any salary protection; and the number, types, and amounts of lump sums paid to employees.

This information will be used by the Treasury Board Secretariat to carry out its periodic audits.

References

The primary references for the subject of Work Force Adjustment are as follows:

Canada Labour Code, Part I.

Financial Administration Act, section 11.

Pay Rate Selection (Treasury Board Manual, Pay administration volume, chapter 3).

Public Service Employment Act, section 29.

Public Service Employment Regulations, sections 33, 34, 36, 37 and 38.

Public Service Staff Relations Act, sections 48.1 and 49.

Public Service Superannuation Act, section 40.1.

Relocation Directive (Treasury Board Manual, Employee Services Volume, Chapter 3-1).

Travel Directive (Treasury Board Manual, Employee Services Volume, Chapter 1-1).

Enquiries

Enquiries about this directive should be referred to the respective bargaining agent, or the responsible officers in departmental headquarters.

Responsible officers in departmental headquarters may, in turn, direct questions regarding the application of this directive to the Public Service Employment Adjustment Group, Human Resources Branch, Treasury Board Secretariat.

Enquiries pertaining to staffing policies and procedures relevant to Priority Administration System should be directed to:

  • Regional Offices.
    Staffing Policy and Program Development Directorate,
    Staffing Programs Branch.
    Public Service Commission of Canada.

Part I Roles and responsibilities

1.1 Departments

1.1.1 Since indeterminate employees who are affected by work force adjustment situations are not themselves responsible for such situations, it is the responsibility of departments to ensure that they are treated equitably and given every reasonable opportunity to continue their careers as Public Service employees.

1.1.2 Departments shall carry out effective human resource planning to minimize the impact of work force adjustment situations on indeterminate employees, on the department, and on the Public Service.

1.1.3 Departments shall establish work force adjustment committees, where appropriate, to manage the work force adjustment situations within the department.

1.1.4 Departments shall, as the home department, cooperate with the PSC and appointing departments in joint efforts to redeploy or retrain for redeployment to appointing departments departmental surplus employees and laid-off persons.

1.1.5 Departments shall establish systems to facilitate redeployment or retraining of the department's affected employees, surplus employees, and laid-off persons.

1.1.6 When a deputy head determines that the services of an employee are no longer required beyond a specified date due to lack of work or discontinuance of a function, the deputy head shall advise the employee, in writing, that his or her services will no longer be required. Such a communication shall also detail the proposed lay-off date, the reasons for the decision, and shall state that he or she may be laid off on that date. An employee shall be considered to be in surplus status from the date upon which he or she is declared surplus.

1.1.7 A department shall declare surplus, upon request, any affected employee who can demonstrate that his or her job has already ceased to exist.

1.1.8 Departments shall send written notice to the Public Service Commission of the employee's surplus status, and shall send to the PSC such details, forms, resumes, and other material as the PSC may from time to time prescribe as necessary for it to discharge its function.

1.1.9 Departments shall advise and consult with the bargaining agent representatives as completely as possible regarding any work force adjustment situation as soon as possible after the decision has been made throughout the process.

1.1.10 The home department shall recommend in writing to the PSC whether the employee is suitable for appointment. Where an employee is not considered suitable for appointment, the department shall advise the employee and his or her bargaining agent of that recommendation. The department shall send to the employee a copy of the written communication to the Public Service Commission, indicating the reasons for the recommendation together with any enclosures. The department shall also advise the employee that he or she may make oral or written submissions about the matter to the Public Service Commission before the PSC makes its decision. Where the Public Service Commission does not accept the department's recommendation, the department shall provide the surplus period required under this directive, beginning on the date the department is advised of the decision. The department shall so advise the employee.

1.1.11 The home department shall provide the PSC with a statement that it would be prepared to appoint the surplus employee to a suitable position in the department commensurate with his or her qualifications, if such a position were available.

1.1.12 The minimum period of surplus notice prior to lay-off that must be afforded to an employee is six months.

1.1.13 Simultaneous with the official notification to an employee that he or she has become subject to work force adjustment, departments shall provide that employee with a copy of this directive.

1.1.14 Departments shall guarantee every affected or surplus employee who is both mobile and retrainable a reasonable job offer during the surplus period, and shall extend any such surplus period until at least one such offer has been made. Where practicable, a reasonable job offer shall be within the employee's headquarters area as defined in the Travel Policy. Deputy heads shall apply this directive so as to keep actual involuntary lay-offs to a minimum, and lay-offs shall normally only occur where an individual has refused a reasonable job offer, or is not mobile, or cannot be retrained within two years, or is laid off at his or her own request.

1.1.15 Appointment of surplus employees to alternative positions, whether with or without retraining, shall normally be at a level equivalent to that previously held by the employee, but this does not preclude appointment to a higher or lower level. Departments shall avoid appointment to a lower level except where all other avenues have been exhausted.

1.1.16 Home departments shall appoint as many of their own surplus employees or - laid-off persons as possible, or identify alternative positions (both actual and anticipated) for which individuals can be retrained.

1.1.17 Home departments shall relocate surplus employees and laid-off individuals, if necessary.

1.1.18 Relocation of surplus employees or laid-off persons shall be undertaken when the individuals indicate that they are willing to relocate and relocation will enable their redeployment or reappointment, providing that there are no available local priority persons qualified and interested in the position being filled and no available local surplus employees or laid-off persons who are interested and could qualify with retraining.

1.1.19 The cost of traveling to interviews for possible appointments and of relocation to the new location shall be borne by the person's home department. Such cost shall be consistent with the Travel and Relocation policies.

1.1.20 For the purposes of the Relocation Policy, surplus employees and laid-off persons who relocate under this directive shall be deemed to be employees on employer-requested relocations. The general rule on minimum distances for relocation applies.

1.1.21 For the purposes of the Travel Policy, laid-off persons traveling to interviews for possible reappointment to Public Service are deemed to be "other persons traveling on government business".

1.1.22 For the priority period, home departments shall pay the costs of person-years and salary dollars, and other authorized costs such as tuition, travel, relocation, and retraining for surplus employees and laid-off persons, as provided for in the various collective agreements and directives; all authorized costs of termination; and salary protection upon lower-level appointment, unless the appointing department is willing to absorb these costs in whole or in part.

1.1.23 Where a surplus employee is appointed by another department to a term position, the home department is responsible for these costs for one year from the date of such appointment, after which the appointing department becomes the new home department.

1.1.24 Departments shall protect the indeterminate status and surplus priority of a surplus indeterminate employee appointed to a term position under this directive.

1.1.25 Departments shall inform the Public Service Commission in a timely fashion of the results of all referrals made to them under this directive, whether such referrals are for immediate appointment, for retraining designed to qualify individuals for appointment, or for anticipated vacancies.

1.1.26 Departments shall review the use of private temporary agency personnel, employees appointed for a specified period (terms) and all other non-indeterminate employees, and where practicable, shall not re-engage such temporary agency personnel nor renew the employment of such employees referred to above where such action would facilitate the appointment of surplus employees or laid-off persons.

1.1.27 Nothing in the foregoing shall restrict the employer's right to engage or appoint persons to meet short-term, non-recurring requirements. Surplus and laid-off persons shall be given priority even for these short-term work opportunities.

1.1.28 Departments may lay off an employee at a date earlier than originally scheduled when the surplus employee requests them to do so in writing.

1.1.29 Departments, acting as appointing departments, shall cooperate with the Public Service Commission and other departments in accepting, to the extent possible, affected, surplus and laid-off persons, from other departments for appointment or retraining.

1.1.30 Departments shall provide surplus employees with a lay-off notice at least one month before the proposed lay-off date, if appointment efforts have been unsuccessful.

1.1.31 When an employee refuses a reasonable job offer during the six-month notice period, he or she shall be subject to lay-off at the end of such notice period. However, when the home department has been unable to make a reasonable job offer during the first six-month surplus period, such period shall be extended and the employee shall not be laid off until after a reasonable job offer has been refused.

1.1.32 Departments are to presume that each employee wishes to be redeployed unless the employee indicates the contrary in writing.

1.1.33 Departments shall inform and counsel affected and surplus employees as early and as completely as possible and shall, in addition, assign a counsellor to each surplus employee and laid-off person to work with them throughout the process. Such counselling is to include explanations and assistance concerning:

  • (a) the work force adjustment situation and its effect on that individual;
  • (b) the work force adjustment directive;
  • (c) the PSC's Priority Administration System and how it works from the employee's perspective (referrals, interviews or "boards", feedback to the employee, follow-up by the PSC, how the employee can obtain job information and prepare for an interview, etc.);
  • (d) preparation of a curriculum vitae or resume;
  • (e) preparation for an interview with the PSC;
  • (f) the employee's rights and obligations;
  • (g) the employees’ s current situation (e.g. pay benefits such as severance pay and superannuation, classification, language rights, years of service)
  • (h) atlternatives that might be available to the employee (appointment, relocation, retraining, lower-level employment, term employment, retirement including possibility of waiver of penalty if entitled to an annual allowance, separation benefit, pay in lieu of unfulfilled surplus period, resignation, accelerated lay-off);
  • (i) the likelihood that the employee will be successfully appointed
  • (j) the meaning of a reasonable job offer;
  • (k) the Canada Employment centres and their services (including a recommendation that the employee register with the nearest office as soon as possible);
  • (l) preparation for interviews with prospective employers;
  • (m) repeat counselling as long as the individual is entitled to a staffing priority and has not been appointed; and
  • (n) advising the employee that refusal of a reasonable job offer may jeopardize both chances for retraining and overall employment continuity

1.1.34 Home departments shall ensure that, when it is required to facilitate appointment, a retraining plan is prepared and agreed to in writing by themselves, the employee and the appointing department.

1.1.35 Severance pay and other benefits flowing from other clauses in collective agreements are separate from, and in addition to, those in this directive.

1.1.36 Any surplus employee who resigns under this directive shall be deemed, for the purposes of severance pay and retroactive remuneration, to be involuntarily laid off on the day as of which the deputy head accepts in writing the employee's resignation.

1.2 The Treasury Board Secretariat

1.2.1 It is the responsibility of the Treasury Board Secretariat to:

  • (a) investigate and seek to resolve situations referred by the Public Service Commission or other parties, and
  • (b) consider departmental requests for retraining resources.

1.3 The Public Service Commission

13.1 The Public Service Commission shall establish and modify staffing policies and procedures to ensure the most effective and efficient means of maximizing the redeployment of surplus employees and the appointment of laid-off persons to positions in the Public Service.

1.3.2 The Public Service Commission shall temporarily restrict or suspend any authority delegated to deputy heads to make appointments, in specified occupational groups when such action is necessary.

1.3.3 The Public Service Commission shall actively market surplus employees and laid-off persons to all departments unless the individuals have advised the PSC in writing that they are not available for appointment

1.3.4 The Public Service Commission shall advise the Treasury Board Secretariat when departments fail to comply in good faith with this directive and/or to cooperate with the PSC in redeployment, retraining, or appointment activities.

1.3.5 The Public Service Commission shall determine, to the extent possible, the occupations in which there are skill shortages for which surplus employees or laid-off persons could be retrained, and advise departments accordingly.

1.3.6 The Public Service Commission shall provide surplus and laid-off individuals with counselling on their work force adjustment situation and its impact on them during their priority entitlement.

1.3.7 The Public Service Commission shall provide information directly to bargaining agents on the numbers and status of their members who are in the Priority Administration System and. on a service-wide basis, through reports to the National Joint Council's Work Force Adjustment Committee.

1.3.8 The Public Service Commission shall decide whether employees are suitable for appointment. Where a deputy head recommends that an employee is not suitable, the PSC shall, after considering such a recommendation, and representations of the employee or his or her representative, advise the deputy head, the employee, and his or her representative of its decision whether the employee is entitled to surplus and lay-off priority and the reasons for the decision. The PSC shall also inform the bargaining agent of its decision.

1.3.9 The Public Service Commission shall, wherever possible, ensure that reinstatement priority is given to all employees who are subject to salary protection.

1.3.10 While the responsibility for retraining lies with the home department, the PSC is responsible for making the appropriate referrals and may recommend retraining where it would facilitate appointment, and the appointing department is responsible for considering retraining the individual and for justifying a decision not to retrain.

1.3.11 The Public Service Commission shall inform, in a routine and timely manner, a surplus employee or laid-off person, his or her home department and with his or her written consent a representative of his or her bargaining agent, when he or she has been referred to a department for consideration but will not be offered the position. The PSC shall include full details of why he or she will not be appointed to or retrained for that position.

1.4 Employees

1.4.1 Employees who are directly affected by work force adjustment situations are responsible for:

  • (a) actively seeking alternative employment in cooperation with their departments and the Public Service Commission, unless they have advised the department and the Commission, in writing, that they are not available for appointment;
  • (b) seeking information about their entitlements and obligations;
  • (c) providing timely information to the home department and to the Public Service Commission to assist them in their appointment activities (including curriculum vitae or resumes);
  • (d) ensuring that they can be easily contacted by the Public Service Commission and appointing departments, and attending appointments related to referrals;
  • (e) seriously considering job opportunities presented to them (referrals within the home department, referrals from the Public Service Commission, and job offers made by departments), including retraining and relocation possibilities, specified period appointments and lower-level appointments

1.4.2 Employees have the right to be represented by their bargaining agents in the application of this directive.

1.5 National Joint Council Work Force Adjustment Committee

1.5.1 The terms of reference of this committee are to review and, where necessary, to recommend to the National Joint Council, changes to the Work Force Adjustment Directive, and to provide interpretation of the intent of the directive upon request.

Part II - Official notification

2.1 Department

2.1.1 In any work force adjustment situation which is likely to involve ten or more indeterminate employees, the department concerned shall notify the Assistant Secretary, Labour Relations and Human Resources Management Division, Human Resources Branch, Treasury Board Secretariat, in confidence, at the earliest possible date and under no circumstances less than 96 hours before the situation is announced. The department shall send a copy of the advice to the Director, Public Service Employment Adjustment Group, Human Resources Branch, Treasury Board Secretariat, and to the Director General, Staffing Policy and Program Development, Staffing Programs Branch, Public Service Commission.

2.2 Treasury Board Secretariat

2.2.1 Upon notification by the department concerned in 2.1 above, and under no circumstances less than 4S hours before the situation is announced, the Assistant Secretary. Labour Relations and Human Resources Management Division, Human Resources Branch. Treasury Board Secretariat shall inform, in writing and in confidence, the chief executive officer of each bargaining agent that has members involved. This information is to include the identity and location of the work unit(s) involved; the expected date of the announcement; the anticipated timing of the situation; and the numbers of employees, by group and level, who will be affected.

Part III - Relocation of a work unit

3.1 General

3.1.1 In cases where a work unit is to be relocated, departments shall provide all employees whose positions are to be relocated with the opportunity to choose whether they wish to move with the position or be declared surplus.

3.1.2 Following written notification, employees must indicate, within a period of
six months, their intention to move or be declared surplus.

3.1.3 Employees relocating with their work units shall be treated in accordance with the provisions of 1.1.17 to 1.1.20.

Part IV Retraining

4.1 General

4.1.1 To facilitate the redeployment of affected employees, surplus employees, and laid-off persons, departments shall make every reasonable effort to retrain such persons for:

  • (a) existing vacancies, or
  • (b) anticipated vacancies identified by management.

4.1.2 The Public Service Commission and departments shall be responsible for identifying situations where retraining can facilitate the appointment of surplus employees and laid-off persons, and shall cooperate in such efforts.

Subject to the provisions of 4.1.2, the deputy head of the home department shall approve up to two years of retraining, unless retraining costs cannot be absorbed, in which Case the prior approval of the Treasury Board Secretariat is required following review of a retraining plan by the Public Service Commission.

4.2 Surplus employees

4.2.1 A surplus employee is eligible for retraining providing:

  • (a) retraining is needed to facilitate the appointment of the individual to a specific vacant position or will enable the individual to qualify for anticipated vacancies in occupations or locations where there is a shortage of qualified candidates; and
  • (b) there are no other available priority persons who qualify for the position.

4.2.2 In addition to all other rights and benefits granted pursuant to this section, each employee is hereby guaranteed, subject to the employee's willingness to relocate, training to prepare the surplus employee for appointment to an alternative position identified by the employer, such training to continue for one year or until the date of appointment to an alternative position, whichever comes first. This appointment should be subject to successful completion of the training.

4.2.3 The home department is responsible for ensuring that an appropriate retraining plan is prepared and is agreed to in writing by the employee and the delegated officers of the home and appointing departments 4.2.4 Once a retraining plan has been initiated, its continuation and completion are subject to satisfactory performance by the employee.

4.2.5 While on retraining, a surplus employee continues to be employed by the home department and is entitled to be paid in accordance with his or her current appointment, unless the appointing department is willing to appoint the employee indeterminately, conditional on successful completion of retraining, in which case the retraining plan shall be included in the letter of offer.

4.2.6 When a retraining plan has been approved and the surplus employee continues to be employed by the home department, the proposed lay-off date shall be extended to the end of the retraining period, subject to 4.2.4.

4.2.7 An employee unsuccessful in retraining may be laid off at the end of the surplus period, provided that the employer has been unsuccessful in finding the employee a reasonable job offer. However, if eligibility criteria are met, the employee may resign and receive pay in lieu of unfulfilled surplus period, provided that the end of training and resignation occurs within the first six months of a non-extended period.

4.3 Laid-off persons

4.3.1 A laid-off person shall be eligible for retraining, with the approval of the Public Service Commission, providing:

  • (a) retraining is needed to facilitate the appointment of the individual to a specific vacant position;
  • (b) the individual meets the minimum requirements set out in the relevant Selection Standard for appointment to the group concerned;
  • (c) there are no other available persons with statutory priority who qualify for the position; and
  • (d) the appointing department cannot justify a decision not to retrain the individual.

4.3.2 When an individual is offered an appointment conditional on successful completion of retraining, a retraining plan reviewed by the Public Service Commission shall be included in the letter of offer. If the individual accepts the offer, he or she will be appointed on an indeterminate basis to the full level of the position. When an individual accepts an appointment to a position with a lower maximum rate of pay than the position from which he or she was laid-off, the employee will be salary protected in accordance with Part V.

Part V - Salary protection

5.1 Lower-level position

5.1.1 Surplus employees and laid-of persons appointed to a lower-level position under this directive shall have their salary and pay equity equalization payments, if any, protected in accordance with the salary protection provisions of their collective agreement, or, in the absence of such provisions, the appropriate provisions of the Regulations Respecting Pay on Reclassification or Conversion.

Part VI - Lump-sum payments

6.1 General

6.1.1. There are three possible lump-sum payments that may be made to employees under this directive. These are:

  • (a) pay in lieu of unfulfilled surplus period;

During the period beginning on July 15, 1995 and ending on June 22, 1998, the application of paragraph 6.1.1 (b) of the Directive is suspended.

Paragraph 6.1.1(b) was in effect prior to July 15, 1995 and will come back into effect on June 23, 1998 unless further changes are brought to the Directive.

  • (b) separation benefit; and
  • (c) retention payment.

During the period beginning on July 15, 1995 and ending on June 22, 1998, section 6.1.2 of the Directive shall be read as follows:

6.1.2 No lump-sum payment may be granted under section 6.1.1 in combination with any other lump-sum payment under that section.

The following section was in effect prior to July 15, 1995 and will come back into effect on June 23. 1998 unless further changes are brought to the Directive.

6.1.2 Only the separation benefit may be granted in combination with any lump-sum payment; the other two are mutually exclusive.

6.1.3 An employee not granted a lump-sum payment may grieve the reasonableness of the steps the deputy head took to determine that employee's eligibility.

6.2 Pay in lieu of unfulfilled surplus period

6.2.1 When a surplus employee offers to resign before the end of the surplus period on the understanding that he or she will receive pay in lieu of unfulfilled surplus period, the deputy head may authorise a lump-sum payment equal to the surplus employee's regular pay for the balance of the surplus period, up to a maximum of six months.

6.2.2 Approval of pay in lieu of unfulfilled surplus period is at the discretion of management, but shall not be unreasonably denied.

6.2.3 The deputy head shall ensure that pay in lieu of unfulfilled surplus period is only authorized where the employee’s work can be discontinued on the resignation date and no additional costs will be incurred in having the work done in any other way during that period.

6.2.4 An employee relinquishes any priority rights for reappointment upon acceptance of his or her resignation.

6.2.5 An individual who receives the pay in lieu of unfulfilled surplus period and who, during the period to be covered by the lump-sum payment, is reappointed to that portion of the Public Service of Canada specified from time to time in Schedule I, Part I of the Public Service Staff Relations Act, shall reimburse the Receiver General for Canada by an amount corresponding to the period from the effective date of re-appointment to the end of the original period for which the lump sum was paid.

6.2.6 When an employee has been declared surplus, a deputy head may identify another non-surplus employee who volunteers to leave the Public Service in place of the first employee. The volunteering employee shall be eligible for the pay in lieu of unfulfilled surplus period which he or she would have received had he or she been declared surplus under the terms of this directive but shall not be eligible for the separation benefit or other lump-sum payments authorised under this directive. This transaction must result in a net reduction in the size of the department.

6.3 Separation benefit

During the period beginning on July 15, 1995 and ending on June 22, 1998, the application of section 63 of the Directive is suspended.

The following section was in effect prior to July 15, 1995 and will come back into effect on June 23, 1998 unless further changes are brought to the Directive.

6.3.1 When a surplus employee is terminated, in whatever manner, under the provisions of this directive, that employee shall receive a separation benefit of one week's pay for each year of service with a department or agency for which the Treasury Board is the Employer (PSSRA I-I) up to a maximum of fifteen weeks pay, providing that the individual is entitled to opt for or is entitled to an immediate annuity or an immediate allowance under the Public Service Superannuation Act, except where

  • (a) the employer has arranged contiguous employment elsewhere suitable to the employee, or
  • (b) the employee has received more than one month's retraining pursuant to this directive, or
  • (c) a non-surplus employee has volunteered to receive pay in lieu of unfulfilled surplus period in the place of a surplus employee

6.4 Retention payment

6.4.1 There are three situations in which an employee may be eligible to receive a retention payment. These are total facility closures, relocation of work units and alternative delivery initiatives.

6.4.2 All employees accepting retention payments must agree to leave the Public Service without priority rights.

6.4.3 An individual who has received a retention payment and, as applicable, is either reappointed to that portion of the Public Service of Canada specified from time to time in Schedule I, Part I of the Public Service Staff Relations Act, or is hired by the new employer within the six months immediately following his or her resignation, shall reimburse the Receiver General for Canada by an amount corresponding to the period from the effective date of such re-appointment or hiring, to the end of the original period for which the lump sum was paid.

6.5 Total facility closures

6.5.1 The provisions of 6.5.2 shall apply where Public Service jobs are to cease, and:

  • (a) such jobs are in remote areas of the country, or
  • (b) retraining and relocation costs are prohibitive, or
  • (c) prospects of reasonable alternative local employment (whether within or outside the Public Service) are poor.

6.5.2 Subject to 6.5.1, the deputy head shall pay to each employee

  • (a) who is ineligible for pay in lieu of unfulfilled surplus period and
  • (b) who is asked to remain until closure of the work unit and offers a resignation from the Public Service to take effect on that closure date, a sum equivalent to six months' pay payable upon the day on which the departmental operation ceases, provided the employee has not separated prematurely

a sum equivalent to six months' pay payable upon the day on which the departmental operation ceases, provided the employee has not separated prematurely.

6.6 Relocation of work units

6.6.1 The provisions of 6.6.2 shall apply where Public Service work units:

  • (a) are being geographically relocated, and
  • (b) when the deputy head of the home department decides that, in comparison to other options, it is preferable that certain employees be encouraged to stay in their jobs until the day of workplace relocation, and
  • (c) where the employee has opted not to relocate with the function.

6.6.2 Subject to 6.6.1, the deputy head shall pay to each employee

  • (a) who is ineligible for pay in lieu of unfulfilled surplus period and
  • (b) who is asked to remain until the relocation of the work unit and offers a resignation from the Public Service to take effect on the relocation date, a sum equivalent to six months' pay payable upon the day on which the departmental operation relocates, provided the employee has not separated prematurely.

6.7 Alternative delivery initiatives

6.7.1 The provision of 6.7.2 shall apply

  • (a) where the Public Service work units are affected by alternative delivery initiatives;
  • (b) when the deputy head of the home department decides that, compared to other options, it is preferable that certain employees be encouraged to stay in their jobs until the day of the transfer to the new employer; and
  • (c) where the employee has not received a job offer from the new employer or has received an offer and did not accept it.

6.7.2 Subject to 6.7.1, the deputy head shall pay to each employee:

  • (a) who is ineligible for pay in lieu of unfulfilled surplus period and
  • (b) who is asked to remain until the transfer date and who offers a resignation from the Public Service to take effect on the transfer date,

a sum equivalent to six months pay payable upon the transfer date provided the employee has not separated prematurely.

Part VII - Special provisions regarding alternative delivery initiatives

Preamble

The administration of the provisions of this part will be guided by the following principles:

  • (a) fair and reasonable treatment of employees;
  • (b) value for money and affordability; and
  • (c) maximization of employment opportunities for employees.

7.1 Definitions

For the purposes of this part, an alternative delivery initiative is the transfer of any work, undertaking or business of the Public Service to any body or corporation that is a separate employer or that is outside the Public Service;

For the purposes of this part, a reasonable job offer is an offer of employment received from a menu employer in the case of a Type 1 or Type 2 transitional employment arrangement, as determined in accordance with section 7.2.2;

For the purposes of this part, a termination of employment is the termination of employment referred to in paragraph 11 (2)(g. 1) of the Financial Administration Act (FAA)

7.2 General

7.2.1 The provisions of this Part apply only in the case of alternative delivery initiatives and are in exception to other provisions of this directive. Employees who are affected by alternative delivery initiatives and who receive job offers from the new employer shall be treated in accordance with the provisions of this part and, only where specifically indicated will other provisions of this directive apply to them.

7.2.2 There are three types of transitional employment arrangements resulting from alternative delivery initiatives:

  • (a) Type 1 (Full Continuity)

Type 1 arrangements meet all of the following criteria:

  • (i) legislated successor rights apply. Specific conditions for successor rights applications will be determined by the labour legislation governing the new employer;
  • (i.ii) the Public Service Terms and Conditions of Employment Regulations, the terms of the collective agreement referred to therein and/or the applicable compensation plan will continue to apply to unrepresented and excluded employees until modified by the new employer;
  • (ii) recognition of continuous employment in the Public Service, as defined in the Public Service Terms and Conditions of Employment, regulations, for purposes of determining the employee's entitlements under the collective agreement continued due to the application of successor rights:
  • (iii) pension arrangements according to the Statement of Pension Principles set out in Appendix A. or, in cases where the test of reasonableness set out in that Statement is not met, payment of a lump-sum to employees pursuant to section 7.7.3;
  • (iv) transitional employment guarantee: a two-year minimum employment guarantee with the new employer;
  • (v) coverage in each of the following core benefits: health benefits, long term disability insurance (LTDI) and dental plan;
  • (vi) short-term disability bridging: recognition of the employee's earned but unused sick leave credits up to maximum of the new employer's LTDI waiting period.
  • (b) Type 2 (Substantial Continuity)

Type 2 arrangements meet all of the following criteria:

  • (i) the average new hourly salary offered by the new employer ( = rate of pay + equal pay adjustments + supervisory differential) for the group moving is 85 per cent or greater of the group's current federal hourly remuneration (= pay + equal pay adjustments + supervisory differential), when the hours of work are the same;
  • (ii) the average annual salary of the new employer (= rate of pay + equal pay adjustments + supervisory differential) for the group moving is 85 per cent or greater of federal annual remuneration (= pay + equal pay adjustments + supervisory differential), when the hours of work are different;
  • (iii) pension arrangements according to the Statement of Pension Principles as set out in Appendix A, or in cases where the test of reasonableness set out in that Statement is not met, payment of a lump-sum to employees pursuant to section 7.7.3;
  • (iv) transitional employment guarantee : employment tenure equivalent to that of the permanent work force in receiving organizations or a two- year minimum employment guarantee;
  • (v) coverage in each area of the following core benefits : health benefits, long-term disability insurance (LTDI) and dental plan;
  • (vi) short-term disability arrangement
  • (c) Type 3 (Lesser Continuity)

A Type 3 arrangement is any alternative delivery initiative that does not meet the criteria applying in Type 1 and 2 transitional employment arrangements.

7.2.3 For Type 1 and Type 2 transitional employment arrangements, the offer of employment from the new employer will be deemed to constitute a reasonable job offer for purposes of this part.

7.2.4 For Type 3 transitional employment arrangements, an offer of employment from the new employer will not be deemed to constitute a reasonable job offer for purposes of this part.

7.3 Responsibilities

7.3.1 Deputy heads will be responsible for deciding, after considering the criteria set out above, which of the Types applies in the case of particular alternative delivery initiatives.

7.3.2 Employees directly affected by alternative delivery initiatives are responsible for seriously considering job offers made by new employers and advising the home department of their decision within the allowed period.

7.4 Notice of alternative delivery initiatives

7.4.1 Where alternative delivery initiatives are being undertaken, departments shall provide written notice to all employees offered employment by the new employer, giving them the opportunity to choose whether they wish to accept the offer.

7.4.2 Following written notification, employees must indicate within a period of 60 days their intention to accept the employment offer, except in the case of Type 3 arrangements, where home departments may specify a period shorter than 60 days, but not less than 30 days.

7.5 Job offers from new employers

7.5.1 Employees who are represented by bargaining agents who have agreed in writing to be bound by this directive (See Appendix B) and who do not accept the reasonable job offer from the new employer in the case of Type 1 or 2 transitional employment arrangements will be given four months notice of termination of employment and their employment will be terminated at the end of that period or on a mutually agreed upon date before the end of the four month notice period except where the employee was unaware of the offer or incapable of indicating an acceptance of the offer as provided for in subsection 11(2.02) of the Financial Administration Act (FAA).

Employees who are represented by bargaining agents who have NOT agreed in writing to be bound by this directive and who do not accept the reasonable job offer from the new employer in the case of Type 1 or 2 transitional employment arrangements will be given three months of termination of employment notice and their employment will be terminated at the end of that period or on a mutually agreed upon date prior to the end of the three-month notice period except where the employee was unaware of the offer or incapable of indicating an acceptance of the offer as provided in subsection 11(2.02) of the Financial Administration Act (FAA).

7.5.2 The deputy head may extend the notice of termination period for operational reasons, but no such extended period may end later than the date of the transfer to the new employer.

7.5.3 Employees who do not accept a job offer from the new employer in the case of Type 3 transitional employment arrangements may be declared surplus by the deputy head in accordance with the provisions of the other parts of this directive. For greater certainty, those who are declared surplus will be subject to the provisions of section 29 of the Public Service Employment Act (PSEA).

7.5.4 Employees who accept a job offer from the new employer in the case of any alternative delivery initiative will have their employment terminated on the date on which the transfer becomes effective, or on another date that may be designated by the home Department for operational reasons provided that this does not create a break in continuous service between the Public Service and the new employer.

7.6 Application of other provisions of the directive

7.6.1 For greater certainty, the provisions of Part II, Official Notification, and sections 6.2. Pay in Lieu of Unfulfilled Surplus Period, 6.4, Retention Payment, and 6.7, Alternate Deliver,' Initiatives, will apply in the case of an employee who refuses an offer of employment in the case of a Type 1 or 2 transitional employment arrangement. However, the maximum amount of the lump-sum payment to such an employee under section 6.2 will be limited to an amount equivalent to 4 months pay. A payment under either section 6.2 or 6.7 may not be combined with a payment under the other section.

7.7 Lump-sum payments and salary top-up allowances

7.7.1 Employees who are represented by bargaining agents who have agreed in writing to be bound by this directive (see Appendix B) and who accept the offer of employment from the new employer in the case of Type 2 transitional employment arrangements will receive a sum equivalent to three months pay, payable upon the day on which the departmental work or function is transferred to the new employer. The home department will also pay these employees an 18-month salary top-up allowance equivalent to the difference between the remuneration applicable to their Public Service position and the salary- applicable to their position with the new employer. This allowance will be paid as a lump-sum, payable on the day on which the departmental work or function is transferred to the new employer.

Employees who are represented by bargaining agents who have NOT agreed in writing to be bound by this directive and who accept the offer of employment from the new employer in the case of Type 2 transitional employment arrangements will receive a sum equivalent to three months pay, payable upon the day on which the departmental work or function is transferred to the new employer. The home department will also pay to these employees an 12-month salary top-up allowance equivalent to the difference between the remuneration applicable to their Public Service position and the salary applicable to their position with the new employer. This allowance will be paid as a lump-sum, payable on the day on which the departmental work or function is transferred to the new employer.

7.7.2 In the case of individuals who accept an offer of employment from the new employer in the case of a Type 2 arrangement whose new hourly or annual salary falls below 80 per cent of their former federal hourly or annual remuneration, departments will pay an additional six months of salary top-up allowance for a total of 24-months under this section and section 7.7.1. except those employees who are represented by bargaining agents who have NOT agreed in writing to be bound by this directive. The salary top-up allowance equivalent to the difference between the remuneration applicable to their Public Service position and the salary applied to their position with the new employer will be paid as a lump-sum payable on the day on which the departmental work or function is transferred to the new employer.

7.7.3 Employees who accept the reasonable job offer from the successor employer in the case of a Type 1 or Type 2 transitional employment arrangement where the test of reasonableness referred to in the Statement of Pension Principles set out in Appendix A is not met, that is, where the new employer's pension costs are less than 6.5 per cent of straight-time payroll (excluding the employer's costs related to the administration of the plan) will receive a sum equivalent to three months pay, payable on the day on which the departmental work or function is transferred to the new employer.

7.7.4 Employees who accept an offer of employment from the new employer in the case of Type 3 transitional employment arrangements will receive a sum equivalent to six months pay payable on the day on which the departmental work or function is transferred to the new employer. The home department will also pay these employees a 12-month salary top-up allowance equivalent to the difference between the remuneration applicable to their Public Service position and the salary applicable to their position with the new employer. The allowance will be paid as a lump-sum, payable on the day on which the departmental work or function is transferred to the new employer. The total of the lump-sum payment and the salary top-up allowance provided under this section will not exceed an amount equivalent to one year's pay.

7.7.5 For the purposes of 7.7.1, 7.7.2 and 7.7.4, the term "remuneration" includes and is limited to salary plus equal pay adjustments, if any, and supervisory differential, if any.

7.8 Reimbursement

7.8.1 An individual who receives a lump-sum payment and salary top-up allowance pursuant to subsection 7.7.1, 7.7.2, 7.7.3 or 7.7.4 and who is reappointed to that portion of the Public Service of Canada specified from time to time in Schedule I to the Public Service Staff Relations Act at any point during the period covered by the total of the lump-sum payment and salary top-up allowance, if any, shall reimburse the Receiver General for Canada by an amount corresponding to the period from the effective date of re-appointment to the end of the original period covered by the total of the lump-sum payment and salary top-up allowance, if any.

7.8.2 An individual who receives a lump-sum payment pursuant to subsection
7.6.1 and, as applicable, is either reappointed to that portion of the Public Service of Canada specified from time to time in Schedule I to the Public Service Staff Relations Act or hired by the new employer at any point covered by the lump-sum payment, shall reimburse the Receiver General for Canada by an amount corresponding to the period from the effective date of the reappointment or hiring to the end of the original period covered by the lump-sum payment.

7.9 Vacation leave credits and severance pay

7.9.1 Notwithstanding the provisions of the employee's collective agreement concerning vacation leave, an employee who accepts a job offer pursuant to this part may choose not to be paid for earned but unused vacation leave credits, provided that the new employer will accept these credits.

7.9.2 Notwithstanding the provisions of the employee's collective agreement concerning severance pay, an employee who accepts a reasonable job offer pursuant to this part will not be paid severance pay in case of a Type 1 transitional employment arrangement and, in the case of a Type 2 transitional employment arrangement, will not be paid severance pay on condition that the new employer recognizes the employee's years of continuous employment in the Public Service for severance pay purposes and provides severance pay entitlements similar to the employee's current severance pay entitlements.

7.9.3 Where:

  • (a) the conditions set out in 7.9.2 are not met,
  • (c) the employment of an employee is terminated pursuant to the terms of section 7.5.1, or
  • (d) the employment of an employee who accepts a job offer from the new employer in a Type 3 transitional employment arrangement is terminated on the transfer of the function to the new employer the employee shall be deemed, for purposes of severance pay, to be involuntarily laid off on the day on which employment in the Public Service terminates.

Appendix A - Statement of pension principles

1. The new employer will have in place, or Her Majesty in right of Canada will require the new employer to put in place, reasonable pension arrangements for transferring employees. The test of "reasonableness" will be that the new employer's pension costs will be at least 6.5 per cent of straight-time payroll (excluding employer's costs related to administering the plan). Where there is no reasonable pension arrangement in place on the transfer date or no written undertaking by the new employer to put such reasonable pension arrangement in place effective on the transfer date, subject to the approval of Parliament and a written undertaking by the new employer to pay the employer costs, Public Service Superannuation Act (PSSA) coverage could be provided during a transitional period of up to a year.

2. Benefits in respect of service accrued to the point of transfer are to be fully protected.

3. Her Majesty in right of Canada will seek portability arrangements between the Public Service Superannuation plan and the pension plan of the new employer where a portability arrangement does not yet exist. Furthermore, Her Majesty in right of Canada will seek authority to permit employees the option of counting their service with the new employer for vesting and benefit thresholds under the PSSA.

Appendix B - List of bargaining agents who have agreed in writing to be bound by this directive

Aircraft Operations Group Association
Association of Public Service Financial Administrators
Canadian Association of Professional Radio Operators
Canadian Merchant Service Guild
Canadian Military Colleges Faculty Association
Canadian Union of Professional and Technical Employees
Council of Graphic Arts Union of the Public Service of Canada
Federal Dockyard Chargehands Association
Federal Government Dockyards Trade & Labour Council (East)
Federal Government Dockyards Trade & Labour Council (West)
International Brotherhood of Electrical Workers
Professional Association of Foreign Service Officers
Professional Institute of Public Service of Canada

Annex 6A - Alberta employee transfer proposal

1.0 Pension plan arrangements

Canada and Alberta agree that transferring federal employees will have the option of leaving accumulated pension contributions with the federal superannuation plan, or to transfer contributions to Alberta plans under the terms of a special "Pension Plan Agreement".

2.0 Offers of employment

Alberta agrees to make reasonable and irrevocable job-offers to all affected federal employees actively engaged in delivery of functions, benefits and measures described in this agreement.

3.0 Probationary period

There will be no probationary period for employees of the Government of Canada transferring to Alberta under this agreement, provided that individuals have served a probationary period with the Government of Canada.

4.0 Compensation

Federal employees transferring to Alberta under the terms of this agreement will be offered comparable employment. Federal employees will be compensated in accordance with prevailing provincial classification and compensation plans. However, for the initial period of this agreement, federal employees will continue to receive compensation equivalent to that received in their substantive positions as federal public servants.

5.0 Recognition of prior service

Alberta will recognize all periods of prior continuous service to which a federal employee would have been entitled for purposes of benefits plans and leave.

6.0 Earned but unused vacation leave entitlements

Canada agrees to pay-out any earned but unused vacation leave entitlements, in excess of an affected employee's annual entitlement, prior to transfer to Alberta. Prior service with the Government of Canada will be recognized for purposes of determining vacation leave entitlements.

7.0 Sick leave credits

Alberta will recognize prior federal service for purposes of determining sick leave entitlements. Prior service with the Government of Canada will be recognized towards the qualifying period for Alberta's long-term disability insurance plan.

Federal employees will be eligible for full benefits in accordance with Alberta's sick leave provisions, based according to their years of service.

8.0 Equivalent qualifications

Alberta recognizes the qualifications of affected federal employees to be equivalent to the requirements of the positions which they are assuming.

9.0 Benefit plans

Alberta agrees to provide coverage under existing employee dental, health and life insurance plans. Evidence of insurability will not be required from affected federal employees. Continuous service with the Government of Canada will be recognized towards the qualifying period for Alberta's dental plan.

10.0 Consultation with Alberta Third Parties

It is recognized by Canada that the provisions of this proposal will require consultation with Alberta's benefit plan insurers, central agencies, and officials of the Alberta Union of Provincial Employees (AUPE).

Annex 6B – Employee Transfer Proposal guidelines

Purpose and uses of a completed Employee Transfer Proposal

The purpose of an Employee Transfer Proposal (ETP) is to provide a comprehensive description of the offer being made by Province/Territory to current employees of HRDC who are affected by the Labour Market Development Agreement (LMDA) and the consequent increased role of Province/Territory in the design and delivery of provincial benefits and measures. The information contained in a completed (ETP) will be used for the following purposes, including:

  • Assessment - The ETP submitted by Province/Territory will be used by Canada to assess and determine the type of employment being offered and the time lines around the offer of employment. Negotiations may be necessary on certain aspects of the proposal in order to conclude and approve an agreement on the basis of this proposal. These negotiations will be conducted by the Management Committee referred to in section 19 of the LMDA.
  • Communication - The proposal once agreed upon by both parties will form the basis of the communication tool which will explain Province's/Territory's offer to HRDC employees.
  • Basis of Employee Transfer Agreement - The approved ETP will form the basis of the Employee Transfer Agreement referred to in section 12 of the LMDA to be signed by the parties.

Procedure

The outline of the procedure for the preparation of an Employee Transfer Proposal and the eventual conclusion of an Employee Transfer Agreement (ETA) has been agreed upon by the Parties in section 12 of the Labour Market Development Agreement. For ease of reference, they are restated and expanded in the following paragraphs.

The details of the offer of employment set out in the ETP is to be submitted to Canada within _ months from the date of the signing of the LMDA or within such later period as may be agreed to by the parties. The proposal should be prepared in accordance with these Employee Transfer Proposal Guidelines and should address every issue listed in these Guidelines.

Upon completion of the ETP, it shall be referred to the Management Committee for discussion and negotiation between the parties regarding its acceptability by Canada. It should be noted that acceptability of the proposal will depend in a large measure on its respect of criteria contained in the Work Force Adjustment Directive (WFAD) especially as they deal with the need for a Reasonable Job Offer to be made to employees of the Public Service by [Province/Territory].

Acceptance by Canada of the ETP may be subject to approval by Canada's Treasury Board.

The details of the ETP will be embodied in an Employee Transfer Agreement (ETA) to be entered into by the parties. The ETA will include the names of all employees who may be made an offer by [Province/Territory] as well as individual salaries, terms and conditions of employment, group benefit plans to which these employees will be eligible and pension arrangements.

It is understood that supplementary agreements may also be required under other federal legislation such as the Public Service Superannuation Act.

Definitions

In these Guidelines:

Continued Employee means an Eligible Employee who has accepted the offer of employment made to him or her by [Province/Territory] to become an employee of the receiving organization as of the Transfer Date;

Eligible Employee means an employee appointed pursuant to Canada's Public Service Employment Act on an indeterminate basis, to a position in HRDC, whose services will no longer be required by HRDC because of the assumption by [Province/Territory] of an expanded role in the design and delivery of labour market development programs and services pursuant to the LMDA, and whose name appears on the list provided by HRDC to [Province/Territory] at a time to be negotiated by the parties, and who may be the subject of an offer of employment by [Province/Territory] pursuant to its Employee Transfer Proposal;

Employee Transfer Agreement (ETA) means the document, prepared on the basis of the Employee Transfer Proposal and subsequent negotiations between the parties, which will be signed by Canada and [Province/Territory] and contain the engagements of both parties with respect to the transfer to Province/Territory] of employees of HRDC for the design and delivery by [Province/Territory] of labour market development programs and services in [Province/Territory];

Employee Transfer Proposal (ETP) means the document to be prepared by [Province/Territory] in accordance with these Guidelines and to be submitted to Canada for agreement;

HRDC means Canada's Department of Human Resources Development;

Indeterminate means, in relation to an Eligible Employee, an employee who is employed for an indeterminate period of time (this term is equivalent to the more commonly used "permanent");

Labour Market Development Agreement (LMDA) means the Agreement between Canada and [Province/Territory] to implement new arrangements between the parties that will enable [Province/Territory] to assume an expanded role in the design and delivery of labour market development programs and services in [Province/Territory];

Receiving Organization means either a provincial department, Crown Corporation or other provincial/territorial entity who will become the new employer of HRDC's Continued Employees;

Relevant Collective Agreement means the collective agreement for the bargaining unit to which the Eligible Employee is currently assigned or would be assigned if the employee was not an Excluded Employee. For the Personnel Administration Group (PE), the Organization and Methods Group (OM) and the Management Trainee Group (MM), the Relevant Collective Agreement is that applying to the Program Administration Group (PM);

Represented Employee means an employee who is represented by a bargaining agent;

Salary mean rate of pay, equal pay adjustment and supervisory differential;

Term means, in relation to an employee, an employee who is employed for a specified period of time;

Transfer Date means the day on which employees of HRDC who have accepted an offer of employment from [Province/Territory] in the context of this proposal will become employees of [Province/Territory] as specified in the Employee Transfer Agreement;

Unrepresented/Excluded employees means employees who are not part of a collective bargaining unit or who are not covered by a collective agreement;

Work Force Adjustment Directive (WFAD) means Canada's Treasury Board document dated July 16, 1996 and attached as Annex 6 to the Labour Market Development Agreement. Part VII of the WFAD, entitled Special provisions regarding alternative delivery initiatives is the Part which governs the transfer of employees of Canada's Public Service to anybody or entity such as [Province/Territory] that is outside the Public Service. In these Guidelines, a reference to the WFAD means a reference to Part VII of the Directive.

Contents of the Employee Transfer Proposal

It is expected that each of the following sections will be addressed in the ETP. It is understood that the information sought is in the context of this Proposal and not engagements or commitments to take place at a future date, following the transfer of employees from Canada to [Province/Territory] as a result of the Employee Transfer Agreement.

A. Offer of employment

The information sought under this heading is to determine the number of employees of HRDC to whom [Province/Territory] will make an offer, the type of employment offered and the timing of this offer, given [Province's/Territory's] commitment to make an offer to not less than ___ indeterminate employees.

The following issues should be addressed in [Province's/Territory's] proposal as it relates to the offer of employment.

1. Number of employees covered by the proposal

Will [Province/Territory] make an offer of employment to more
indeterminate employees than the number indicated above?

If so to how many indeterminate employees will [Province/Territory] make an offer of employment?

2. Type of employment offered

What type of employment will [Province/Territory] offer to HRDC indeterminate employees?

Will it be indeterminate (i.e. permanent) employment?

Will there be a guarantee of continued employment for a certain period of time? how long?

If the offer of employment is only for a specified period, what is the length of the period for which employment is offered?

Regardless of the type of employment offered, describe what would be the reasons for termination, if any, during the first three years of employment?

3. Probationary period

Is [Province/Territory] obliged to impose a probationary period on new employees? If so, is it willing to seek dispensation or exemption from that obligation for Continued Employees?

4. Timing of the offer

Under the WFAD, HRDC must give written notice to all its employees offered employment by a new employer, providing them with the opportunity to choose whether they wish to accept the offer. The employees have sixty days in which to indicate their intention to accept the offer. Given this requirement, HRDC would propose to make to [Province/Territory] a list of all Eligible Employees no later than 120 days prior to the Transfer Date. [Province/Territory] would then make its offer to all of the employees whose names appear on that list 90 days prior to the Transfer Date. At the same time, HRDC would give its notice to those persons to whom the Province made an offer. The following 30 days could provide an opportunity, should there be early negative responses, to make offers to other individuals to whom an offer had not already been made. These time lines would also allow for amendments to the list of Eligible Employees in the 120-90 days period prior to the Transfer date.

How far in advance of the Transfer Date will [Province/Territory] make an offer to Eligible Employees? How much time is [Province/Territory] ready to give to employees to respond to its offer?

Should an eligible employee refuse the offer of [Province/Territory], would [Province/Territory] want to make an offer to another Eligible Employee?

Until what moment would [Province/Territory] accept to entertain changes in the list of Eligible Employees?

5. Evidence of the offer

HRDC will require as part of the negotiation of the ETA that [Province/Territory] undertake to provide to Canada evidence in the form of a letter from the Deputy Minister of the Receiving Organization certifying that [Province/Territory] has delivered an offer of employment containing the terms agreed upon under the ETP and providing the list of Eligible Employees to whom that offer was made. To meet the Notice requirement of the WFAD, this letter should be forwarded to Canada no later than 60 days prior to the transfer date.

Is [Province/Territory] agreeable to provide the above-described letter at the above-mentioned time? If not, please describe the mechanism which could be used to provide timely evidence that satisfactory offers have been made and the names of the employees to whom these offers were made.

B. Successor rights

In some provinces, labour legislation provides for successor rights in the event of sale, lease or transfer of a business. The expression “successor rights” means the continuation of collective agreements and union representation after the employees have changed employer until the term of the existing collective agreement expires. These "rights" are intended to serve as a bridging mechanism and to provide stability to transferred employees during the transition period. Specific conditions for the application of successor rights are determined by the labour legislation of each province/territory and may therefore vary across Canada.

If there are successor rights in Province/Territory, the following information provided:

What is the legislative authority for successor rights? Please provide a copy of the relevant text

Does it apply and/or will it be applied to this particular transfer? How?

C. Salary and other terms and conditions of employment

1. List and description of term and conditions of employment

Under this heading, [Province/Territory] should describe all terms and conditions of employment to be offered to Continued Employees, item by item. Included in this list would be such items as type of occupational category (ies) or group(s) under which employees would be classified, salary offered, rates of pay and the mechanism through which employees progress within the salary bands, the hours of work, vacation, sick and other types of leave and the method for calculating accrual of such credits, severance payments and how these are applied in the event of lay-off, resignation, retirement, death, or termination for cause.

Will the same terms and conditions of employment apply to Unrepresented and Excluded Employees?

Are there other terms and conditions of employment which are unique to [Province/Territory] which may apply?

Note: [Province's/Territory's] offer with respect to health, life, dental, short-term and long-term disability insurance plans or arrangements as well as to pension plans are to be the subject of separate headings and should not be covered here.

2. Recognition of continuous employment

This section deals with Canada's interest in seeking recognition of continuous employment for each Continued Employee by [Province/Territory] for two particular purposes: a) deferral of severance pay; and b) accrual of future vacation leave and severance pay benefits.

"Continuous employment" means one or more periods of service in the Federal Public Service, with allowable breaks only as defined in the Public Service Terms and Conditions of Employment Regulations. In general, allowable breaks that do not cause an interruption in continuous employment depend on factors such as the type and tenure of employment, reason for termination of previous employment and the length of breaks between periods of employment.

With respect to severance pay, when an employee is laid-off from the Federal Public Service, he or she is entitled to receive severance pay calculated as per the layoff clause described in the employee's collective agreement. In general, this is equivalent to two weeks' pay for the first complete year of continuous employment and one week for each year thereafter minus any previously paid severance pay entitlements from a previous lay-off. While HRDC employees who accept the offer of [Province/Territory] will cease to be employed by Canada, they are not considered to be laid-off. Under the WFAD, it is now possible to defer the payment of severance pay to employees until their employment ceases with their new employer, if two particular conditions are met. Under that scenario, the actuarial value of the severance payment would be included in the calculation of the amount of the contribution paid to [Province/Territory] in respect of those employees and should these employees eventually cease employment with [Province/Territory], it would include in its own severance payment the entitlement earned while at the person was at the employ of Canada.

The conditions are that [Province/Territory] recognize each Continued Employee's years of continuous employment in the Federal Public Service for severance pay purposes and that it provide severance pay entitlements similar to each employee's current severance pay entitlements.

Given the above, the ETP should provide information dealing with the following issues:

Is [Province/Territory] ready to recognize the Continued Employees' years of continuous employment in the federal public service for the purpose of determining the rates at which they accrue future credits towards severance pay? Would this recognition extend for the purpose of determining the rate at which Continued "employees accrue future credits towards vacation leave as well?

Is [Province/Territory] ready to commit to provide similar or better severance pay entitlements than those described in the Relevant Collective Agreements?

Assuming that the response to the two previous questions is positive, what is [Provinces/Territory] position vis-à-vis the deferring of severance pay of Continued Employees until an eventual cessation of employment with [Province/Territory] and what commitment would it be ready to make in this regard?

3. Carry-over of vacation leave credits

This section deals with Canada's interest in seeking agreement with [Province/Territory] to provide each Continued Employee with the option of carrying over at the Transfer Date, his or her earned but unused vacation leave.

Would [Province/Territory] agree to give each Continued Employee the option to carry over his or her earned but unused vacation leave credits?

4. Evidence of the salary and terms and conditions offered

Canada will require as part of the negotiation of the ETA that [Province/Territory] undertake to provide to it evidence in the form of a letter from the Deputy Minister of the Receiving Organization, attesting that [Province/Territory] has met in all the offers made, the terms and conditions to be offered to each and every employee to whom an offer is made, as described above, including [Province's/Territory's] commitments with respect to successor rights and recognition of continuous employment. This would be provided to Canada no later than sixty days prior to the transfer date.

Is [Province/Territory] agreeable to provide the above-described attestation letter, at the above-mentioned time? If not, please describe the mechanism which could be used to provide timely evidence that satisfactory salary and other terms and conditions have been offered and the names of the employees to whom these salaries and other terms and conditions were offered.

D. Health, dental, long-term disability, and life insurance plans or arrangements; short-term disability arrangement

The purpose of this heading is to establish what types of insurance plans are to be offered to Continued Employees and what are or would be the major elements of these plans.

1. Description of the Federal Plans and Request for Information on [Province/Territory’s] plans

Employee of the Federal Public Service benefit from a number of insurance plans:

  • The public service health care plan provides health care coverage, hospital and extended benefits over and above the basic provincial health care.
  • The dental care plan provides for basic preventive, orthodontic and major restoration coverage.
  • The disability insurance plan and the long-term disability insurance plan provide relatively similar income protection benefits for represented, unrepresented and excluded employees. The waiting period before benefits can be payable is the later of 13 weeks or the expiry of sick leave credits.
  • The public service management insurance plan provides 4 types of optional insurance coverage to employees who are unrepresented and those who are excluded from collective bargaining: basic life, supplementary life, accidental death and dismemberment, and dependents’ life insurance.
  • The supplementary death benefit plan is a compulsory group life insurance plan provided under part II of the Public Service Superannuation Act to represented, unrepresented and excluded employees.

Are there benefits or insurance plans similar to those described above in existence for employees of [Province/Territory]? If so, please describe them and state if they will be extended to Continued Employees as of the Transfer Date. If not, would [Province/Territory] agree to provide Continued Employees with similar benefits and insurance arrangements?

Do any of the plans already in existence in [Province/Territory] require evidence of insurability from new employees? If so, would that requirement be waived for Continued Employees?

Do any of the plans require an application of pre-qualification conditions from employees? If so, would that requirement be waived for Continued Employees?

Do any of the plans require a pre-qualifying waiting period before eligibility for coverage may commence? If so, would that requirement be waived for Continued Employees?

Would Continued Employees who are on authorized leave of absence normally have to be actively at work before they could be enrolled in any of the above plans? If so, could that requirement be waived?

Would [Province/Territory] agree to seek dispensation from the insurance carriers to waive any other requirements which may delay or impede coverage of the group of Continued Employees or any of its members?

Would province/territory agree to extend its recognition of continuous employment for the purpose of coverage under all of the above group insurance plans, so that HRDC continued employees are not treated as "new employees"?

Would [Province/Territory] provide further details with respect to the benefits, eligibility for coverage, employer and employee cost and premiums for each of the above mentioned plans?

2. Short-term disability arrangement

The purpose of this section is to determine the type of short-term income protection plan [Province/Territory] has in place for employees who are unable to work because of non-occupational accident or sickness and what it is prepared to offer or extend to Continued Employees. The period of illness for which information is sought is that not covered under the long-term disability plan.

The federal government's arrangement consists of a formal paid sick leave plan which accumulates credits over the years until these credits are used. Although these sick leave credits have no cash value upon cessation of employment, they provide employees with 100% income protection until their exhaustion, in the event of non-occupational illness during active employment. Benefits under the long-term disability plan commence after the later of 13 weeks, or the expiry of sick leave credits.

Does [Province/Territory] already have or is it prepared to put in place a short-term disability arrangement?

If a formal paid sick leave plan is used in combination with the long-term disability plan, please provide details.

3. Recognition and transfer of unused sick leave credits

This section deals with Canada's interest to transfer on behalf of each Continued Employee a number of earned but unused sick leave credits. This number could be limited up to a maximum equivalent to the waiting period imposed by the long-term? Disability insurance plan of [Province/Territory]. These credits would serve as short-term disability bridging until [Province’s /Territory’s] long-term disability insurance commences.

How long is the waiting period imposed by the long-term disability insurance plan of [Province/Territory] before entitlement to benefits can commence?

Would [Province/Territory] agree to recognize and transfer unused sick leave credits up to at least the length of the waiting period for long-term disability insurance?

Note: For a Type 2 offer, the WFAD requires that the Receiving Organization have a short-term disability arrangement if there is no recognition of an employee's accrued sick leave.

4. Evidence of the existence of the Insurance Plans

Canada will require as part of the negotiation of the ETA that [Province/Territory] undertake to provide to it evidence regarding the Insurance Plans including,

  • (a) at least 90 days before the Transfer Date, a copy of all proposed contracts for the establishment of the Insurance Plans; and,
  • (b) on or before the Transfer Date, a certified copy of all duly executed contracts establishing the Insurance Plans.
  • (c) in the case of the short-term disability arrangement a copy of the contract as provided in (a) or (b) above, or if it is a self-insured plan, a letter from the Deputy Minister of the Receiving Organization attesting that such an arrangement is in place And the recognition that will be given if any to Continued Employees’ accrued sick leave.

Does [Province/Territory] agree to provide the above-described plans and attestation, at the above-mentioned times? If not, please describe the mechanism which could be used to provide timely evidence that insurance plans and short-term disability arrangements are in place to provide coverage to Continued Employees

E. Pension Plan

1. Statement of pension principles

Canada will be governed by the following principles in assessing the offer of [Province/Territory] with respect to the pension plan. These principles are contained as an appendix to the WFAD.

  • (a) The new employer will have in place, or Her Majesty in right of Canada will require the new employer to put in place, reasonable pension arrangements for transferring employees. The test of "reasonableness" will be that the new employer's pension costs will be at least 6.5 per cent of straight-time payroll (excluding employer's costs related to administering the plan). Where there is no reasonable pension arrangement in place on the transfer date or no written undertaking by the new employer to put such reasonable pension arrangement in place effective on the transfer date, subject to the approval of Parliament and a written undertaking by the new employer to pay the employer costs, Public Service Superannuation Act (PSSA) coverage could be provided during a transitional period of up to a year.

  • (b) Benefits in respect of service accrued to the point of transfer to be fully protected.

  • (c) Her Majesty in right of Canada will seek portability arrangements between the Public Service Superannuation plan and the pension plan of the new employer where a portability arrangement does not yet exist. Furthermore, Her Majesty in right of Canada will seek authority to permit employees the option of counting their service with the new employer for vesting and benefit thresholds under the PSSA.

These principles have the following consequences:

K [Province/Territory] agrees to set up a pension plan for or to include in its existing pension plan the Continued Employees.

K A Continued Employee's pension benefits earned to the point of termination of employment from HRDC will not be transferred to the pension plan of [Province/Territory] without the employee's consent. And, as a minimum, at retirement, the employee will be entitled, should he or she leave his or her earned benefits in the public service superannuation account, to the pension earned to the point of termination.

K Where a pension portability arrangement does not yet exist, Canada will seek pension portability with [Province/Territory] based-on fair actuarial value of public service pension benefits.

K Where a pension transfer agreement is concluded between Canada and [Province/Territory], employees will have the option of transferring the actuarial value of their accrued benefits to the pension plan of [Province/Territory].

K As part of the portability arrangement, Canada will seek to give Continued Employees who eventually return to the employment of Canada the option of counting their service with [Province/Territory] for vesting and benefit thresholds under the Public Service Superannuation Act (PSSA).

"Vesting" i.e. earning the right to or entitlement to a PSSA pension benefit payable immediately or deferred to age 60, as opposed to a return of contributions. Under the PSSA, an employee is considered vested or qualifies for a pension benefit after a minimum of 2 years pensionable service; and

"Benefit threshold" i.e. The various age and service requirements that must be met for a particular benefit entitlement. One benefit threshold is, for example the entitlement to an immediate annuity pension at age 55 with 30 years of pensionable service.

2. Description of the Plan

The purpose of this section is to address the major elements of the pension plan to be applicable to Continued Employees. Elements to be addressed by [Province/Territory] include the following: what is the type of plan, i.e. contributory / non-contributory, what are the eligibility criteria for coverage, the minimum employer 'contribution, the maximum employee contribution, what pension benefit formula is used to determine pension entitlements, what salary and years of earnings are used, what is the normal retirement age, what is the earliest retirement age possible, what are the age and service requirements for unreduced pension, what are the applicable reductions in the case of early retirement, what are the years of service required for vesting purposes, what type of indexing provisions exist, what are the terminations benefits, how is election for purchasing prior service treated, what are the preretirement and post-retirement benefits for spouses and surviving dependants; disability provisions; what are the provisions on the treatment of leave, continuous service, pensionable service; what provisions for pension division apply in the case of marriage/cohabitation breakdown (including definition of spouse).

The following documents will facilitate early evaluation of the plan: the pension plan booklet for each employee group (if different plans apply to different groups) or the statute or other instrument that establishes the pension plan; the latest actuarial valuation report for the plan, a description of any modification to the plan since the last edition of the booklet or valuation report.

3. Pension Transfer Agreement

There are two mechanisms- by which the portability of Continued Employees' pension plans may be achieved:

Firstly, Canada is open, where it already has a Reciprocal Pension Transfer Agreement with a province or territory under the authority of subsection 40(2) of the Public Service Superannuation Act (PSSA), to make that agreement applicable to the transfer of employees which will take place as a result of the Labour Market Development Agreement.

Alternatively, Canada is also open to the negotiation of a special Pension Transfer Agreement applicable only to the employees being transferred to [Province/Territory] as a result of the LMDA. The agreement would be made pursuant to section 40.2 of the PSSA enacted as part of the Budget Implementation Act, 1996 and would be similar to the [soon to be] attached generic Pension Transfer Agreement. Note that the new legislation no longer makes it mandatory that such agreements be reciprocal.

As part of its ETP, [Province/Territory] should indicate whether it is interested in entering into a Pension Transfer Agreement with respect to the employees affected by the LMDA. If it already has a general reciprocal transfer agreement with Canada, it should also indicate whether it wishes this particular transfer of employees to be governed by the general agreement or if it prefers to enter into a special transfer agreement for this group of employees. If the latter is the case, [Province/Territory] should indicate its agreement in principle to enter into an agreement similar to the proposed generic pension transfer agreement.

It understands of Canada that any pension transfer agreement will be concluded as soon as possible, but probably after the Transfer Date.

4. Evidence relating to the Pension Plan

Canada will require as part of the negotiation of the ETA that [Province/Territory] provide evidence regarding the Pension plan, including:

  • (a) at least 90 days before the Transfer Date, a copy of the proposed contract for the establishment of a Pension Plan if it is not already established; and,
  • (b) on or before the Transfer Date, a certified copy of all duly executed contracts establishing the Pension Plan.

Amendments to the existing or proposed compensation arrangements during the transition period

Canada will request as part of the negotiation of the ETA that during the transition period, that is, the period starting on the signing of the ETA and finishing on the Transfer Date, [Province/Territory] agrees that:

  • (a) A change in any element of [Province's/Territory's compensation arrangement or in any element covered in the ETA, as a result of an amendment by statute or the collective bargaining process, which would result in a less advantageous arrangement for Continued Employees will not affect these employees;

  • (b) Further discussion may be required between the parties to clarify and modify the ETA if there is a change in any element of the federal public service compensation arrangement or in any element of the ETA, as a result of an amendment by statute or the collective bargaining process, which, in the opinion of Canada will lead to a situation in which the offer made by [Province/Territory] results in a different Type of offer under the terms of the WFAD.

Transitional provisions

Under this heading, [Province/Territory] should describe any transitional provision it would offer to Continued Employees so to minimize the effect, if any, of their transfer, on their compensation package. Examples of such transitional provisions may be bridging arrangements to address-overall shortfalls from loss of Isolated Post Allowances or of the Bilingual Bonus.

Communications

It is very important to HRDC that Eligible Employees be informed by the Receiving Employer, as soon as possible after the conclusion of the ETA of the major terms of the agreement, including the Terms and Conditions of Employment, the recognition of prior service; the proposed health, dental and long-term disability insurance plans or arrangements; the Pension Plan; any optional benefit plans or arrangements; and, where applicable, the manner in which the group insurance plan(s), the Pension Plan and optional benefit plan(s) will be continued. It is also important for Canada to have evidence that such communication exercise(s) took place.

It is suggested that this communication exercise be undertaken no later than ten days after a letter of offer is transmitted to eligible employers.

Under this heading, [Province/Territory] should indicate what undertakings it is ready to make to ensure that Eligible Employees are informed in a timely manner of the terms of the ETA and describe the means it plans to use to communicate the information, e.g. letters, meetings, business tv, etc.

As part of the ETA, Canada will require that [Province/Territory] confirm, in writing, prior to the transfer date, that the undertakings made with respect to the communication of the contents of ETA have been fulfilled.

Annex 7 - Letter of June 26, 1996 from Canada's Deputy Minister of Human Resources Development

Mrs Lynne Duncan
Deputy Minister of Advanced Education
and Career Development
Commerce Place, 7th Floor
10155 – 102nd Street
Edmonton, Alberta
T5J 4L5

Dear Mrs. Duncan:

As a follow-up to Minister Young’s May 30, 1996 labour market proposal to all provinces and territories, I am writing to provide further information on the current and projected amount of funding which could be made available in your province under new labour market arrangements.

Enclosed is an illustrative summary of the funding available in your province for active labour market measures relating to Part II of the Employment Insurance (EI) legislation, as well as information on the funding available for all provinces and territories. The attached material also indicates for each province and territory the maximum amounts that could be provincially managed under new arrangements. This information applies to EI-related funding only. As indicated in earlier talk with you, CRF-funded programs will be discussed at a later date.

We are also providing you an explanation of how the funds are allocated among provinces and territories. The federal proposal released May 30, 1996 stated that the allocation of funding will be equitable, transparent and based on a standardized set of objective labour market variables. While the Reinvestment of Reform Savings and Transitional Jobs Fund are allocated based on new formulae designed to support adjustment to the new EI system, the allocation of Employment Insurance funds (formerly Developmental Uses) will continue to be based on the existing formula that has been in place over the past several years. In recognition that some provinces may prefer a different allocation methodology for distribution of the $1.15 B in EI funds, the Government of Canada would be pleased to consider any alternative allocation methodology that provinces and territories may want to design jointly.

In our upcoming discussions with you, some elements will be key. As mentioned in the labour market proposal, one priority is the development of a jointly acceptable, results-based framework supporting the provision of active labour market measures. This will help ensure client access, jobs and savings.

Another key element will be the future employment of Human Resources Development (HRDC) staff. If a provincial or territorial government accepts greater responsibility for employment measures, we want to ensure that HRDC staff associated with these functions will have the opportunity to transfer. We will be guided in this respect by Human Resources Development Canada’s human resources principles (copy attached) which are based on the Government of Canada’s Alternative Service Delivery Initiatives as described in our Workforce Adjustment Directive.

I hope this information is useful and will help support a ful1 consideration of Mr. Young’s proposal. We look forward to working with you to put in place new labour market arrangements.

Yours sincerely,
Jean-Jacques Noreau
Att.

HRDC guiding human resources principles

The following set of HRDC human resource principles will be used when negotiating and managing the movement of employees to another jurisdiction.

  • Human resource decisions will continue to be governed by fairness and transparency accompanied by open, clear and timely communications with employees and unions.
  • If a provincial or territorial government accepts greater responsibility for the employment measures, we intend to negotiate to ensure that HRDC staff associated with the transferring functions has the opportunity to transfer as well.
  • HRDC will have responsibility for determining the resources involved and will collaborate with the province and other jurisdictions in the identification and selection of individuals.
  • Every attempt will be made to ensure that HRDC staff who are moved to a new establishment do so with salary, benefits and pension packages that are generally comparable to those which they receive as HRDC employees.
  • The conditions of transfer of staff from HRDC to provincial or other jurisdiction will be based on Alternative Service Delivery Initiatives as described in the Workforce Adjustment Directive.
  • Provisions will be made for joint dispute resolution/redress mechanisms to deal with the interpretation of issues pertaining to the re-allocation of responsibilities and resources.
  • The potential HR impact of decisions relating to employee allocation to the new establishment will be considered in relation to the broader context of the many HRDC initiatives and departmental needs.
  • Both partners re-affirm the need to continue to provide quality services to our clients during any change or transition process.

Explanatory note

Resource allocation formulae

Funding available for new labour market arrangements

Human Resources Development Canada uses resource allocation formulae to determine allocations in a fair and objective manner. This note explains how three formulae work: for EI Funds; for Reinvestment of Reform Savings; and for the Transitional Jobs Fund.

EI funds ($1.9 B annually)

The $1.9 B EI funds include $500 M income support associated with active measures; $250 M in pan-Canadian activities; and $1.15 B available for provincially/territorially managed active labour market measures. (The $1.9 B total was previously known as Unemployment Insurance Developmental Uses funds).

$500 M per year nationally is estimated for income support (i.e. insurance benefit payments) for individuals with an active EI claim who participate in active employment measures. The allocation of these funds reflects the provincial/territorial share of the budget indicated in the 1996 UIDU Expenditure Plan. For illustrative purposes, the same distribution is assumed for all years. Actual expenditure patterns will be monitored. This EI income support will be administered by the Government of Canada. However, under new arrangements, provinces may assume responsibility for selection of EI claimants participating in active measures supported by these entitlements.

$250 M annually in EI funds will be dedicated to pan-Canadian activities including commitments such as successor programming to Pathways (for Aboriginal Peoples); response to national crises (eg The Atlantic Groundfish Strategy); national sectoral partnership initiatives; and research and innovation. The pan-Canadian fund will be maintained under federal responsibility. Federal-provincial discussions will be held on the pan-Canadian activities at a later date.

The remaining $1.15 B in EI funding will be made available to provinces taking up greater labour market responsibilities under new results-based contractual arrangements.

The current Developmental Uses formula that has been in place for the last several years will be maintained. The current formula has 17 variables, individually weighted, which are updated on an annual basis. The variables are:

  • average U claim load
  • long-term unemployment (more than 14 weeks)
  • Initial and Renewal claims for unemployment benefits
  • unemployed multiplied by the unemployment rate
  • education less than nine years
  • the employment rate
  • work sharing participants
  • work sharing expenditures
  • projected employment for manufacturing; trade, construction (3 variables)
  • projected GDP for manufacturing, trade, construction (3 variables)
  • GDP for manufacturing, trade, construction (previous year: 3 variables)

In order to prevent abrupt inter-provincial shifts in resources, the optimal provincial allocations are phased in at a 10% rate annually. That is, each year the change in resources will be 10% of the variance between the optimal allocation suggested by the formula and the current allocation.

In recognition that provinces and territories may have ideas on a different resource allocation methodology with a view to improving the accuracy and fairness of allocations, the Government of Canada would be pleased to consider any alternative formula that provinces and territories may want to design jointly.

Reinvestment of Reform Savings ($800 M annually at maturity)

Reinvestment of Reform Savings will occur in all provinces and territories. This funding will be available to provinces and territories taking up greater labour market responsibilities. The major objective is to ensure reinvestment of a portion of the EI Reform Savings into “active” re-employment measures so as to enable individuals, employers and communities to adjust to the new EI system (particularly those most affected by the reform); and to a lesser degree recognize the need to reduce the level of cross-subsidization between regions. These funds will be allocated in a manner ensuring that the net impact of the EI reform in 2001-2002 is relatively similar across provinces and that the net impact in provinces that are net contributors is at least one percentage below the level of the net impact in provinces which are net beneficiaries. The allocation of the reinvestment of Reform Savings for years before 2001-2002 will be on the same percentage basis as for 2001/02.

Changes from the previous notional allocations of the reinvestment of Reform Savings are explained by amendments to the EI Bill which reduced the impact of EI reform between 3-4 percentage points in Atlantic Canada versus 1-2 percentage points in other provinces. In order to even out the impact across all provinces, the provincial allocations for the reinvestment of Reform Savings had to be adjusted.

The attached table displays how the reinvestment of Reform Savings formula works.

Transitional Jobs Fund ($300 M over 3 years)

The annual allocations for the Transitional Jobs Fund will be $60 M; $140 M; $100 M over the three year period starting 1996-97; funding is through the Consolidated Revenue Fund. The objective is to ease the impact of the EI reform in high-unemployment regions across the country. Consequently, the allocation formula mainly focuses on EI regions with high levels of unemployment (above 12% unemployment rate) and also takes into account the impact of EI reform in each province (including the recent amendments made to the EI Bill). Seventy five percent of funds will be allocated based on the number of EI claimants in EI regions with unemployment rates above 12% multiplied by the unemployment rate in these regions. Twenty five percent of funds will be allocated based on estimated reductions in insurance benefits per province (at maturity). A $25 M national reserve over the three years will be set aside, $15 M of which will be dedicated to initiatives for Urban Aboriginal Peoples (three national Aboriginal groups will work with HRDC to advise on the allocation of these funds). Administration of the Transitional Jobs Fund is under federal responsibility.

Changes from the previous notional allocation is explained by amendments to the EI Bill; the establishment of a $25 M national reserve; and greater precision in allocation (no more broad rounding).

Projected distribution of EI-Related fundings*
Under new Labour Market Arrangements
1995-96 to 1999-00
($000s)
Nfld NS NB PEI Que Ont Man Sask Alta BC Yuk Subtotal National Total NWT
1995-96 (presented for comparative purposes only)
Maximum funds for provincially managed programs **
UIDU (Base) 49,458 47,100 49,028 12,016 355,655 388,740 45,518 31,291 86,695 2,328 144,726 1,851 1,214,406 0 1,214,406
Re-investment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total - Max. prov. mgd. progr. 49,458 47,100 49,028 12,016 355,655 388,740 45,518 31,291 86,695 2,328 144,726 1,851 1,214,406 0 1,214,406
Income support under active measures
Part I (Benefit Entitlements) 26,059 22,009 23,402 5,244 143,449 152,196 18,734 13,588 36,821 880 56,771 847 500,000 0 500,000
Pan-Canadian responsibilities
Ongoing 2,270 2,776 12,744 565 20,624 18,194 5,210 5,553 7,782 2,816 9,954 356 88,844 96,750 185,594
Transitional 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total - Pan-Cdn resp. 2,270 2,776 12,744 565 20,624 18,194 5,210 5,553 7,782 2,816 9,954 356 88,844 96,750 185,594
Grand total 77,787 71,885 85,174 17,825 519,728 559,130 69,462 50,432 131,298 6,024 211,451 3,054 1,803,250 96,750 1,900,000
1996-97
Maximum funds for provincially managed programs**
UIDU / Part II (Base) 51,676 48,606 47,189 12,687 344,343 373,033 42,785 29,290 81,857 2,198 136,851 1,750 1,172,265 0 1,172,265
Re-investment 15,988 6,639 9,213 2,192 54,266 40,271 2,238 2,157 7,858 548 33,191 439 175,000 0 175,000
Total - Max. prov. mgd. progr. 67,664 55,245 56,402 14,879 398,609 413,304 45,023 31,447 89,715 2,746 170,042 2,189 1,347,265 0 1,347,265
Income support under active measures
Part I (Benefit Entitlements) 26,059 22,009 23,402 5,244 143,449 152,196 18,734 13,588 36,821 880 56,771 847 500,000 0 500,000
Pan-Canadian responsibilities
Ongoing 16,076 8,617 13,656 949 28,626 22,678 5,922 6,040 10,997 2,969 10,754 451 127,735 100,000 227,735
Transitional 9,198 5,520 4,928 1,848 18,256 5,408 1,328 1,257 792 450 3,614 401 53,000 7,000 60,000
Total - Pan-Cdn resp. 25,274 14,137 18,584 2,797 46,882 28,086 7,250 7,297 11,789 3,419 14,368 852 180,735 107,000 287,735
Grand total 118,997 91,391 98,388 22,920 588,940 593,586 71,007 52,332 138,325 7,045 241,181 3,888 2,028,000 107,000 2,135,000
1997-98
Maximum funds for provincially managed programs**
UIDU (Base) 51,121 48,190 46,425 13,026 339,464 363,118 41,454 28,846 80,454 2,357 133,848 1,697 1,150,000 0 1,150,000
Re-investment 34,716 14,415 20,005 4,761 117,834 87,446 4,861 4,684 17,063 1,190 72,072 953 380,000 0 380,000
Total - Max. prov. mgd. progr. 85,837 62,605 66,430 17,787 457,298 450,564 46,315 33,530 97,517 3,547 205,920 2,650 1,530,000 0 1,530,000
Income support under active measures
Part I (Benefit entitlements) 26,059 22,009 23,402 5,244 143,449 152,196 18,734 13,588 36,821 880 56,771 847 500,000 0 500,000
Pan-Canadian responsibilities
Ongoing 16,076 8,617 9,410 949 28,626 22,678 5,922 6,040 10,997 2,969 10,754 451 123,489 126,511 250,000
Transitional 22,560 13,539 12,088 4,532 44,783 13,264 3,256 3,084 1,942 1,104 8,864 984 130,000 10,000 140,000
Total - Pan-Cdn resp. 38,636 22,156 21,498 5,481 73,409 35,942 9,178 9,124 12,939 4,073 19,618 1,435 253,489 136,511 390,000
Grand total 150,532 106,770 111,330 28,512 674,156 638,702 74,227 56,242 147,277 8,500 282,309 4,932 2,283,489 136,511 2,420,000
  • * Additional funds for administrative purposes for provinces that take up programs and aspects of the National Employment Service will be discussed separately.
  • ** Maximum funds under new Labour Market Arrangements where provinces/territories fully take up may 30 labour market proposal.
Projected distribution of EI-Related fundings*
Under new Labour Market Arrangements
1995-96 to 1999-00
($000s)
Nfld NS NB PEI Que Ont Man Sask Alta NWT BC Yuk Subtotal National Total
1998-99
Maximum funds for provincially managed programs**
Part II (Base) 51,504 48,646 46,544 13,548 340,959 360,571 40,987 28,948 80,591 2,538 133,484 1,680 1,150,000 0 1,150,000
Re-investment 54,815 22,761 31,587 7,517 186,053 138,073 7,675 7,396 26,941 1,880 113,797 1,505 600,000 0 600,000
Total - Max. prov. mgd. progr. 106,319 71,407 78,131 21,065 527,012 498,644 48,662 36,344 107,532 4,418 247,281 3,185 1,750,000 0 1,750,000
Income support under active measures
Part I (Benefit Entitlements) 26,059 22,009 23,402 5,244 143,449 152,196 18,734 13,588 36,821 880 56,771 847 500,000 0 500,000
Pan-Canadian responsibilities
Ongoing 16,076 8,617 3,080 949 28,626 22,678 5,922 6,040 10,997 2,969 10,754 451 117,159 132,841 250,000
Transitional 15,966 9,581 8,555 3,208 31,692 9,387 2,304 2,182 1,375 781 6,273 696 92,000 8,000 100,000
Total - Pan-Cdn resp. 32,042 18,198 11,635 4,157 60,318 32,065 8,226 8,222 12,372 3,750 17,027 1,147 209,159 140,841 350,000
Grand total 164,420 111,614 113,168 30,466 730,779 682,905 75,622 58,154 156,725 9,048 321,079 5,179 2,459,159 140,841 2,600,000
1999-00
Maximum funds for provincially managed programs**
UIDU (Base) 51,849 49,057 46,651 14,018 342,304 358,278 40,567 29,039 80,714 2,700 133,157 1,666 1,150,000 0 1,150,000
Re-investment 63,950 26,555 36,852 8,770 217,062 161,085 8,954 8,629 31,431 2,193 132,763 1,756 700,000 0 700,000
Total - Max. prov. mgd. progr. 115,799 75,612 83,503 22,788 559,366 519,363 49,521 37,668 112,145 4,893 265,920 3,422 1,850,000 0 1,850,000
Income support under active measures
Part I (Benefit entitlements) 26,059 22,009 23,402 5,244 143,449 152,196 18,734 13,588 36,821 880 56,771 847 500,000 0 500,000
Pan-Canadian responsibilities
Ongoing 2,340 2,839 2,488 588 22,042 18,345 5,561 5,679 8,074 2,969 10,392 451 81,768 168,232 250,000
Transitional 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total - Pan-Cdn resp. 2,340 2,839 2,488 588 22,042 18,345 5,561 5,679 8,074 2,969 10,392 451 81,768 168,232 250,000
Grand total 144,198 100,460 109,393 28,620 724,857 689,904 73,816 56,935 157,040 8,742 333,083 4,720 2,431,768 168,232 2,600,000

* Additional funds for administrative purposes for provinces that take up programs and aspects of the National Employment Service will be discussed separately.
** Maximum funds under new Labour Market Arrangements where provinces / territories fully take up may 30 labour market proposal.

Explanatory notes

Provincial-Territorial allocations

Attached is a summary of the current and projected funding available for active labour market measures related to Part II of the Employment Insurance legislation, as well as a summary of inter-provincial allocations generally. The information is provided under three categories.

  1. the maximum amount of funds which could be made available directly to provinces and territories if they decide to assume responsibility for active measures under an agreement to be concluded with the Government of Canada. This amount would be within the overall total of $1.95 B nationally which, as indicated in the proposal, could be made available for these purposes in the year of maturity (2001-2002).
  2. estimated levels of income support (i.e. insurance benefit payments) in each province/territory, for EI claimants participating in active measures. As indicated in the proposal, this income support, estimated at $500 M nationally, would be administered by the Government of Canada.
  3. Pan-Canadian and transitional activities, including the funds required to meet our existing commitments ($250 M annually) and the Transitional Jobs Fund ($300 M over three years) announced last December. As indicated in the proposal, these would be administered by the Government of Canada.

The information on the allocations by provinces/territory is provided for 1996-97 and projected for three subsequent years (1995-96 allocations are provided for comparison purposes). The projected allocations will be subject to further review and discussion between governments and, as well, are contingent on the achievement of EI reform savings targets and budget decisions.

A separate explanatory note is provided on the three resource allocation methodologies related to: the EI Fund; Reinvestment of Reform Savings; and the Transitional Jobs Fund.

The proposal also provided for payment of administrative expenses for provinces taking up new responsibilities. The level of administrative resources made available will be dependent on the bilateral labour market arrangements agreed on and will be clarified in the upcoming negotiations.

Projected distribution of EI-related funding *
Under new Labour Market Arrangements
1995-96 to 1999-00
($000s)
Alberta 1995-96 1996-97 1997-98 1998-99 1999-00
Maximum funds for provincially managed programs **
UIDU / Part II (Base) 86,695 81,857 80,454 80,591 80,714
Re-Investment 0 7,858 17,063 26,941 31,431
Total - Max. funds for provincially managed programs 86,695 89,715 97,517 107,532 112,145
Income support under active measures
Part I (Benefit Entitlements) 36,821 36,821 36,821 36,821 36,821
Pan-Canadian responsibilities
Ongoing 7,782 10,997 10,997 10,997 8,074
Transitional 0 792 1,942 1,375 0
Total - Pan-Canadian responsibilities 7,782 11,789 12,939 12,372 8,074
Grand total 131,298 138,325 147,277 156,725 157,040

* Additional funds for administrative purposes for provinces that take up programs and aspects of the National Employment Service will be discussed separately.
** Maximum funds under new Labour Market Arrangements where provinces / territories fully take up May 30 labour market proposal.

Annex 8 - Letter of September 25, 1996 from Canada's Deputy Minister of Human Resources Development

Mrs Lynne Duncan
Deputy Minister of Advanced Education and Career Development
Commerce Place, 7th Floor
10155 – 102nd Street
Edmonton, Alberta
T5J 4L5

Dear Mrs. Duncan:

I am writing to you about the Government of Canada proposal for new arrangements on labour market programs. As you know, Minister Young wants to make rapid progress towards new labour market arrangements with all provinces and territories and recently wrote his provincial and territorial colleagues to underline his commitment. For your information, I have attached Minister Young’s letter to Minister Ady.

You will remember that on June 26 my predecessor provided provincial and territorial Deputy Ministers with information on program funding for the May 30 proposal. I would now like to give you information on the administrative resources available to provinces and territories who take on the employment benefits and measures provided for in the May 30 proposal.

In determining the available resources, we have been guided by the principle that all administrative resources that HRDC would have to deliver the programs in Alberta over the duration of the agreement will be made available to you. Adhering to this principle allows us to provide “reasonable administrative costs for program delivery to EI clients”, as stated in the May 30 proposal. To ensure that the Government of Alberta has an adequate planning horizon, the administrative resources will remain stable for the duration of the agreement.

As you will note in the attached explanatory note and table, we have projected that 204 FTEs (Full Time Equivalents) and $8,914,000 administrative resources per year would be available once a final agreement is reached and if the Government of Alberta takes on all responsibilities offered in the May 30 proposal. The Government of Canada will, in addition, provide funds for accommodation.

There are undoubtedly matters concerning administrative resources that you or your officials will want to discuss. Mr. Russ Brown, Regional Executive Head for Alberta, and the chief negotiator for the Government of Canada in Alberta, is available to address any questions you may have and provide additional information you require. The Government of Canada will be guided by a spirit of openness and transparency in discussions about administrative resources.

On a closely related matter, there are many human resource issues related to the transfer of HRDC employees and the details will be a matter of careful examination in our negotiations with provinces and territories. This is a critically important issue. An acceptable resolution is essential to the success of the negotiations. In this matter HRDC will be guided by the federal Alternative Delivery Framework of the Workforce Adjustment Directive. The level of administrative resources transferred will be directly linked to the transfer of affected federal employees (i.e., the employees associated with the FTEs in the attached table). Given the experience and expertise of HRDC employees in delivering active employment programs, I do not expect this to be an issue. Again, I would ask that you or your officials speak to Mr. Russ Brown on the human resource issues.

I have attached a table showing a projection of FTEs and administrative resources available for all provinces and territories, for your information. The principle on which FTEs and administrative resources are determined is the same across the country: each province and territory would have available the resources HRDC has to deliver the programs in the province or territory, over the duration of the agreement.

I am pleased to note that our officials have made significant progress during an initial round of detailed discussions. I think we should aim at an agreement as soon as possible, which could allow the Government of Alberta to begin delivery of programs in the 1997-98 fiscal year, if this is consistent with your province’s priorities.

I want to close by reiterating Minister Young’s commitment to rapid progress and adding that HRDC’s officials will do everything possible to support the negotiations.

Mel Cappe
Deputy Minister
Human Resources Development
encl.

Administrative resources

In addition to FTEs (full-time equivalents), funds for administrative resources and accommodation, portable assets, such as furniture and personal computers associated with the transferred FTEs will be made available to provinces.
Factors affecting the projection of FTEs and administrative resources available to provinces include:

  • Within the framework of the National Employment Service, the Government of Canada will retain the responsibility and the resources required to manage pan-Canadian activities such as the free and timely flow of information on employment opportunities across the country; support for inter-provincial worker mobility; and national sectoral development. The Government of Canada has offered to provinces NES functions and resources that are required to support the delivery of active labour market measures to EI clients.
  • All currently budgeted HRDC administrative resources, including those available to provinces and territories for the delivery of responsibilities laid out in the May 30 proposal, are fixed at the 1997-98 level. There will be no increases due to such factors as inflation.
  • The FTE and dollar figures reflect a take-up of all responsibilities offered in the May 30 proposal. In the event that your province assumes partial responsibilities, FTEs and administrative resources will be adjusted accordingly.
  • Given the need for both Governments to demonstrate that labour market agreements promote efficient programming and reduce any overlap and duplication, no incremental funds, e.g., start-up funds related to new agreements, are available for provinces.
  • Compensation for accommodation will be based on projected, actual costs for a given site. Funds for accommodation will only be transferred to a provincial government after a current lease commitment has expired.
Projection of EI-Related Administrative Resources
under new Labour Market Arrangements
1997-98 Onwards
Nfld NS NB PEI Que Ont Man Sask Alta NWT BC Yuk Total
Total full-time equivalents 177 196 170 49 1,084 1,007 118 114 204 24 470 7 3,620
Operating funds ($000s) 7,080 8,195 7,240 2,115 46,269 44,612 4,759 4,681 7,712 1,534 17,292 329 151,818
Employee benefits ($000s) 1,115 1,254 1,142 338 7,286 6,721 735 717 7,202 224 2,819 52 23,605
Total funds available 8,195 9,449 8,382 2,453 53,555 51,333 5,494 5,398 8,914 1,758 20,111 381 175,423

Notes:

  1. A Full-Time Equivalent (FTE) is the unit of measurement for personnel resources and refers to the employment of one person for one year or the equivalent thereof. FTEs consist of regular time personnel, continuing and non-continuing, full-time, part-time, seasonal, term and/or casual employees. As per the May 30th proposal from Minister Young, the above FTE numbers include resources in support of EI Part II delivery and National Employment Services. In addition, FTEs also include a share of local and regional corporate management, and associated national headquarters support.
  2. Operating funds include salary and non-salary resources in support of FTEs. The value of portable assets (i.e. furniture and personal computers) is excluded from these figures. Associated portable assets would be transferred with each FTE.
  3. Employee Benefits include the federal government’s costs of supporting: the Public Service Superannuation Plan; CPP/QPP employer payments; EI employer payments; death benefits; health and dental insurance. The total cost of Employee Benefits represents 17% of salary costs.
  4. Accommodation funds reflect an estimated average cost per FTE based on HRDC lease costs per province/territory in accordance with the downsizing plan. The actual funds to be made available to a province/territory are linked to the phase-put of existing lease agreements and will be made available at that time.

Annex 9 – Inventory of assets (to be prepared)

Annex 10 – May 30, 1996, Proposal to provinces and territories

Getting Canadians back to work: A proposal to provinces and territories for a new partnership in the Labour Market Human Resources Development Canada, May 30, 1996

On behalf of the Government of Canada, the Honourable Douglas Young, Minister of Human Resources Development, is proposing a new partnership with provincial and territorial governments in labour market activities based on the new Employment Insurance legislation. This partnership respects provincial responsibility for labour market training and recognizes that both levels of governments must find new ways to work together to help unemployed Canadians find and keep jobs. Governments have a shared obligation to provide transitional assistance to Canadians who face temporary periods of unemployment.

The proposal provides for new formal labour market agreements between the Government of Canada and each provincial and territorial government, which will reflect diverse and changing circumstances across the country.

Under new arrangements, those provinces or territories who wish to do so will be able to assume responsibility for active employment measures, supported by Employment Insurance funds administered by the Government of Canada.

These new arrangements will help get unemployed Canadians back to work, encourage innovation and best practices and strengthen federal and provincial/territorial partnerships. Canadians will receive improved service through expanded use of single window service.

The Honourable Douglas Young
Minister of Human Resources Development

I. A new partnership

All levels of government and the private sector have significant roles to play in employment and labour market development. They have particular responsibilities and strengths in the labour market field which they can apply to help Canadians find employment opportunities. New federal/provincial/territorial arrangements can strengthen the Canadian labour market locally, provincially and nationally.

This proposal provides for a new federal/provincial/territorial partnership in labour markets activities. In addition to their current labour market responsibilities, provincial and territorial governments can use the proposal to:

  • deliver active employment measures funded through the Employment Insurance (El) Account (approximately $2 billion at maturity);
  • use El funds to tailor active measures to meet local and provincial labour market priorities;
  • provide individuals with labour market services currently delivered by the Government of Canada such as screening and employment counselling;
  • match local labour market demand and supply through labour market placement; and
  • help individuals develop career action plans to address their employment needs and guide them to successful employment opportunities.

Based on the proposal, the Government of Canada would:

  • remain responsible to the Parliament of Canada and to premium-payers for the El Account and delivering insurance benefits (approximately $12.3 billion in 1996-97), including $500 million per year to individuals who have an active El claim and participate in active employment measures Footnote 3 ;
  • provide a national system of labour market information and exchange to support interprovincial mobility of labour;
  • foster interprovincial sectoral development and develop strategies to respond to such events as national economic crises;
  • administer a one-time Transitional Job Fund ($300 Million funded from the Consolidated Revenue Fund over three years); and
  • deliver ongoing commitments and pan-Canadian activities funded through the El Account ($250 million per year).

The Government of Canada will phase-out its funding in such areas as the direct purchase of training, apprenticeship training, cooperative education, workplace-based training, and project-based training, based on mutually acceptable federal-provincial arrangements. Full federal withdrawal will be as rapid as a province or territory wishes over a maximum of three years. There will be no federal activity in these program areas after 1999.

II. The basis for new partnership

Bill C-12, proposed legislation for a new Canadian employment insurance system, is a balanced and integrated framework designed to promote jobs and growth. Part I of the legislation maintains and improves the national system of temporary income support for EI claimants while they look for a job. Part II provides for a range of active employment measures so that people can get back to work as quickly and efficiently as possible.

Part II also expands client access to these active measures. EI clients include individuals who are eligible to receive insurance benefits (EI claimants) and individuals who were eligible to receive insurance benefits at any time in the past three years, or any parent re-entering the labour force who were eligible for parental or maternity benefits during the past five years.

The legislation provides for a flexible set of active employment measures geared to helping EI clients find jobs. These measures will be tailored to the needs of individuals and local labour market realities. New measures could include:

  • wage subsidies,
  • temporary earnings supplements,
  • self-employment assistance,
  • job creation partnerships and,
  • subject to provincial agreement, skills loans and grants.

The legislation commits the Government of Canada to work in concert with the government of each province and territory to design, implement and evaluate the active measures. Provinces and territories can receive EI funds to deliver directly the active measures; or provinces or territories can receive EI funds to provide their own similar employment measures if they are consistent with the guidelines in Part II of the new employment insurance legislation.

If provinces or territories do not want to assume responsibility for active employment measures, the Government of Canada is prepared to work with them on the joint design, delivery and evaluation of active measures. In some provinces or territories, Canada's Human Resource Centres could continue to deliver active measures.

III. A new approach to getting Canadians back to work

Part II sets out seven legislative guidelines for new federal-provincial agreements. These guidelines represent a new way of getting unemployed Canadians back to work. Active measures must:

  • be results-based (i.e., help individuals obtain or keep employment);
  • reduce individuals' dependency on government assistance;
  • promote cooperation and partnership with other labour market partners, such as other governments, employers and community-based organizations;
  • feature local decision-making;
  • eliminate unnecessary overlap and duplication;
  • encourage individuals to take personal responsibility for getting back to work;
  • ensure service to the public in either official language, where there is significant demand.

The new legislation requires that any active measures delivered to EI clients by the Government of Canada or by a province or a territory will be reviewed periodically to ensure they are effective and efficient. The level of service for EI claimants will remain the same or be improved.

The Government of Canada is also prepared to enter into new partnership arrangements with provinces and territories on several functions of the National Employment System (NES). The NES provides the direct link between the "passive" and "active" parts of the national labour market system and has four core functions:

  • labour market information: providing information on and analysis of the national labour market;
  • labour exchange: matching workers with available jobs and employers with available workers across the country;
  • screening: identifying individuals' service needs and making a preliminary referral to appropriate services; and
  • employment counseling: evaluating the labour market needs of the unemployed; developing an action plan; referring/selecting participants for specific active measures.

Provinces and territories assuming responsibility for delivering active measures can also decide to deliver the NES screening, employment counseling and local labour market placement services. Provinces or territories will be able to determine the level and type of assistance clients require from active measures, provide individuals with in-depth assistance, help them develop career action plans and match local labour market demand and supply through labour market placement.

Part II of the new employment insurance legislation will also create three new support measures for the NES: employment assistance services to the unemployed (e.g., developing client-centred action plans for individuals who have limited job experience); labour market partnerships (e.g., providing financial assistance to community-based labour market partners involved in dealing with local labour market challenges); and research and innovative projects (e.g., examining ways to improve the effectiveness and efficiency of active measures).

The Government of Canada will work with provinces, territories and labour market partners on the three support measures in order to ensure financial resources are directed at those EI clients who need the most assistance in getting jobs. New arrangements could provide for direct provincial or territorial delivery of employment assistance services and local labour market partnerships.

The Government of Canada will retain overall management of labour exchange and national labour market information due to their pan-Canadian nature, and will welcome input from provinces and territories in maintaining and improving these services.

IV. Principles and parameters for agreements

What counts is results: getting unemployed Canadians back to work; maximizing savings to the EI Account; and reducing dependency on income support programs generally. Therefore the following principles and parameters should apply to the delivery and design of all active measures, whether by a provincial or territorial government or by the Government of Canada, and form the basis for mutually-agreeable accountability frameworks.

Results-based accountability

The accountability framework will be used to ensure the effectiveness and efficiency of both the active measures and the NES functions; it will apply to whatever level of government delivers these activities. Results will be made public so that Canadians can assess the effectiveness and efficiency of the active measures. Results could be evaluated by a third party mechanism.

If a province or territory decides to assume responsibility for the delivery of active measures and certain NES functions, the Government of Canada will work with provincial and territorial governments to develop mutually agreeable accountability frameworks, which will include mechanisms for assessing and evaluating the anticipated results of these arrangements. These mechanisms could involve labour market partners using either formal structures or advisory groups. Labour market partners can play a central role in ensuring EI clients and keep jobs.

For planning purposes, results will be based on: priority access for EI claimants, jobs secured for EI clients, with emphasis on EI claimants (persons currently eligible for insurance benefits), and savings to the EI Account through reduced dependency on employment insurance benefits. Results will be informed by changing economic and labour market circumstances.

Duration of agreements

Initially, the Government of Canada will commit itself to three-year agreements which cannot be terminated unilaterally. Beyond the initial three-year period, the Government of Canada is prepared to discuss with each province and territory the appropriate duration of new agreements. For example, agreements could remain in place as long as the mutually-agreed results are being achieved. New formal agreements with provinces and territories may be implemented directly following approval of the legislation, anticipated by July 1, 1996.

Funding

Total EI funding for new agreements will be approximately $1.95 billion, including current EI expenditures of $1.15 billion and $800 million in reinvestment (at maturity) result from EI reform.

Starting in 1997-98, a new simplified formula will be used to allocate EI funds, which will be equitable, transparent and based on a standardized set of objective labour market variables. It will be updated annually to reflect changing labour market conditions. For 1996-97, EI funds will be allocated using the current formula. The $800 million in reinvestment will be allocated among provinces and territories based on the impact of recent reforms to the EI Account (as set out in the new Employment Insurance legislation). Where a province or territory delivers active measures, the Government of Canada will also fund reasonable administrative expenses for program delivery to EI clients.

Service levels and associated funding levels will be contingent, in part, on EI savings and budget decisions. A mutually agreeable process will be established to review annual funding levels. The EI funds provided by the Government of Canada can be spent only for the purposes identified in the agreement, namely, assistance to EI clients. Canadians will be informed of the source of the financial contributions.

Strengthening service to clients

New arrangements will improve client service, create more and better employment opportunities for Canadians and eliminate overlap and duplication. All EI clients will have reasonable and equitable access to active measures and NES functions (i.e., no residency requirements and the requirements of equity groups are to be given special consideration). Service to EI claimants will either be maintained at current levels or strengthened. Improved service to clients will be accelerated through collaborative work on; linking information systems to facilitate client case management; using single client files; expanding client monitoring systems; and sharing of best practices and evaluations.

The Government of Canada currently provides labour market assistance to EI claimants and other Canadians through the network of Canada Human Resource Centres across the country; provinces and territories operate separate facilities for social assistance recipients and often offer additional labour market services through other points of service. Offering all labour market assistance to individuals from one location in a local labour market will maximize an individual's chances to get into the job market. Consequently under the new arrangements, the expanded use of co-location/single window service will be pursued on a priority basis.

If a provincial or territorial government accepts greater responsibility for active measures, appropriate employment arrangements will be established for Human Resource Development Canada employees required to provide continuity of service to clients. Provinces and territories will need to work with the Government of Canada on the transfer of employees within its recently established human resources framework for alternative service delivery policy.

During the transition period to new agreements, the Government of Canada will maintain uninterrupted client service, while working in concert with provinces and territories.

V. Government of Canada proposal

The Government of Canada believes that this proposal can be the basis for new bilateral labour market agreements, which will address provinces and territorial labour market priorities and improve active employment measures for Canadians. All provinces and territories are invited to give consideration to the proposal as early as possible.

1997-1998 Plan for provincial programs and services under the Canada Alberta Labour Market Development Agreement challenges

Challenges

A significant challenge facing labour market programming is the alignment of federal El Part II benefits and measures and provincial responsibilities. Improved alignment is expected to lead to better service for clients in Alberta in need of employment programs and services. Over the next three years, specific challenges include:

  • developing a coherent, effective and unified set of labour market programs and services that eliminate overlap and duplication;
  • creating a more efficient delivery system with single window access;
  • developing information systems and appropriate feedback mechanisms between
  • federal and provincial systems;
  • ensuring fair treatment of clients;

Goals

Responsiveness

Albertans will be provided with quality services and employment programs in accordance with their need and in accordance with the parameters set out in Annexes 2 and 3 of the Canada Alberta Labour Market Development Agreement.

Entitlement

The rights of insured participants to receive any Part 1 Income Benefit to which they are entitled will be recognized. Part 2 funding will be available to enable and encourage targeted clients to participate in labour market program(s) but at a level that does not create a disincentive to work.

Flexibility and partnership

Local partnership will be fostered with businesses, labour, the community, and others to ensure the delivery of flexible, innovative programs and approaches.

Affordability

The system will provide cost-effective employment services and programs to clients in Alberta. Programs will be designed consistent with the resources available and client needs.

Accountability

The system will be accountable for the results of employment programs and services as set out in Annex 3 of the Canada Alberta Labour Market Development Agreement.

Accountability
Objectives Strategies
Integrate El Part 2 labour market programs and services within the Alberta context Develop a comprehensive system of Alberta labour market programs and services, including provincial programs under the Canada-Alberta Labour Market Development Agreement, as in the attached model.

Alberta will assume responsibility for the selection of El active clients participating in Alberta's programs and services.
Foster local delivery and partnerships Provide sufficient flexibility to adjust the labour market program and service mix to increase responsiveness to local client.

Decentralize most program delivery decisions and activities to Canada Alberta Service Centers (e.g., assessing local labour market conditions and needs; providing client information and referral; service needs determination; client action plan development and monitoring of client progress; development of partnerships with local employers, business associations and training (providers).

Establish local partnerships to ensure the delivery of effective programs and services, and cost sharing where appropriate.

Deliver programs and services directly through provincial staff or through the use of services contracted by Alberta.
Provide access in accordance with client need Provide all clients with access to labour market information and unemployed persons with employment assistance

Utilize a screening and assessment process to provide insured participants with access to other labour market programs.

Provide active El claimants with priority access to labour market programming supported by the Canada Alberta Labour Market Agreement.

Require clients to identify their employment needs and to develop and commit to a personal action plan. Assist clients to develop their action plan if required.

Ensure that action plans consider such factors as: local economic and social conditions; the probability of clients becoming employed or self-employed; client motivation, readiness and capability; and the likely cost effectiveness of an intervention; and potential savings to the El account.

Use a case management approach to identify when modifications to the action plan are required or when a client is making unsatisfactory progress.

Establish linkages with HRDC to indicate when inadequate client progress is being made so that HRDC can determine if Part 1 Income Benefits should be discontinued.
Provide employment assistance services to the unemployed

Provide to the unemployed, employment assistance services including:

  • client needs determination
  • employment counselling
  • assistance in the preparation of client action plans
  • assisted job placement
  • job search training
  • provision of labour market information
  • case management.
Further develop case management information systems to ensure full documentation of activities and results.

Support access through a comprehensive and integrated electronic information service for clients.
Encourage employers to permanently hire, to the fullest extent possible, insured participants who are at risk of extended periods of unemployment Modify current provincial work experience and work placement programs (i.e., Training on the Job, Job Placement) to meet the needs of insured participants.

Select employers on the basis of clients' prospects for continuing employment with the employer after the program has ended.

Reimburse employers for a portion of their costs incurred to develop clients' employment skills or to facilitate employment.

Expect employers to cost share the employees' wages. Employee wages are insurable.
Provide insured participants with short term work experience that will help clients to acquire skills relevant to subsequent employment Modify current provincial work experience and work placement programs (i.e., Training on the Job, Job Placement) to meet the needs of insured participants.

Select work experience opportunities that provide clients with skills needed by local employers.

Provide clients with non-insurable training allowances.

Reimburse delivery agents for reasonable delivery costs as appropriate.
Help insured participants to become self-employed Contract with delivery agents with expertise in local business development and assisting the unemployed, to select clients and provide customized coaching and ongoing advice and support in business development or self-employment (and, in exceptional circumstances, to deliver financial supports to selected clients).

Provide clients with supplemental assistance to Part 1 Income Benefits if required.

Reimburse delivery agents for reasonable delivery costs.
Help insured participants obtain skills needed to attain employment, ranging from basic to advanced skills Modify the provincial Skills Development Program to provide insured participants with funding to obtain skills for employment, primarily in programs offering short-term skills training and basic education.

Ensure that clients have an achievable training plan that will lead to employment.

In accordance with Section 57(e) of the El Act, clients will share the cost of training if appropriate.

In addition to any El income benefit entitlement:
  • provide financial assistance for insured participants in the form of an allowance for basic foundation skills training;
  • provide apprentices primarily with loan based assistance;
  • provide participants in skills training with financial assistance primarily in the form of an allowance with potential for loans in cases where significant future benefits will accrue to the clients.
Provide special financial assistance for persons with disabilities.
Encourage Labour Market Partnerships Encourage employers, employer associations, employees, communities and community groups to work together to develop strategies that deal with labour force adjustments, work force adjustments and human resources.

Encourage activities that lead to labour market programs and services better able to assist the unemployed.

Anticipated service volumes and expenditures

It is anticipated that the approximate annual volume of clients formerly served by HRDC will be as follows:

  • 35,000 clients will receive information on job availability, employment screening and counselling and job search assistance
  • 21,000 clients will be eligible to apply for financial assistance to attend apprenticeship programs, skills training or basic foundation skills programs;
  • 4,000 clients will participate in work experience programs and learning on the job;
  • 1,000 clients will participate in training regarding self-employment.

The province anticipates spending the annual allocation on employment programs and services under El Part 2 as follows:

Employment Assistance Services 15%
Funding for persons in training (apprentices, skills training, basic foundation skills) 45%
Self-Employment Assistance 15%
Insured Work Experience 15%
Uninsured Work Experience 5%
Remaining employment programs (e.g., Labour Market Partnerships) 5%

The financial information set out above is notional. The actual expenditure mix for the programs and services under El Part 2 will evolve over the course of the fiscal year as client needs are assessed and client plans are approved. Also, for 1997/98, the El Part 2 expenditures will reflect a combination of 1996/97 HRDC commitments and the expenditures initiated by Alberta.

An additional notional $36.821 million of Part 1 funds are available from the El Part 1 income benefit entitlement administered by Canada. This sum does not represent a controlled budget but rather, a planning figure that will be tracked through client information exchange linkages.

Image description

Image describing proposed Alberta’s programs and client information exchange linkages under the Labour Market Development Agreement, including: assessment, service needs determination, income support, basic skills training and employment services, basic education, advanced education and skills training, career services, and labour market information used to assist Albertans to return to work.

Labour Market Information

  • Job boards
  • Assessment of local labour market conditions
  • General occupational/industrial forecasts
  • Supply/demand forecasts
  • Graduate placement rates

Career services

  • Prior Learning Assessment
  • Career/Employment Counselling
  • Group Workshops
  • Self-Directed Services
  • School information
  • Career/Employment Plan Development

Basic Skills Training and Employment services

  • Job Search Training
  • Placement Services
  • Unpaid Work Orientation
  • Pre-Employment Training
  • Learning on the Job
  • Self-Employment Assistance
  • Work Experience
    • Targeted Wage Subsidies
    • Job Creation Partnerships
  • Integrated Skills Training

Basic education

  • CTS Modules Alberta Education
  • Adult Upgrading
  • Basic Literacy
  • ESL

Advanced education and skills training

  • Inflectional Education and Training
  • Apprenticeship
  • Self-Directed Study

Income support

  • Student Assistance
  • Skills Loans and Grants
  • Training Allowance
  • Participants Benefits
  • Wages

Direct Purchase Training Withdrawal Strategy – Alberta

Purchase

This document represents an agreement between Human Resources Development Canada and Alberta Education and Career Development with regard to the pace of HRDC's withdrawal from direct purchase training arrangements.

Background

In November 1995, the Prime Minister made a clear statement that "the Government of Canada will adopt an approach that respects provincial jurisdiction in the field of education and the role of provincial governments in the labour market training". This was reiterated in the February 1996 Federal Budget, and in the recent El legislation.

Accordingly HRDC direct purchase expenditures must cease no later than June 30, 1999.

Alberta strategy

It is jointly agreed that

  1. The phase out strategy should be reflective of:
    • an orderly process that allows some time for training providers and clients to adjust
    • the outcome of the current Labour Market Agreement negotiations, and the emergence of new delivery or program mechanisms.
  2. For 1996/97
    • the phase out of Co-Operative Education and Workplace Based Training will be completed by March 31, 1997.
    • Direct Government to Government Purchase will be limited to Apprenticeship training, at the 1995/96 levels, (up to $11.9M based on 500,000 days at 13,500 Apprentices)
    • Local Direct Purchases and Project Based Training commitments will continue to reflect local priorities.
  3. For 1997/98.
    • Government to Government Direct Purchase (Apprenticeship) will cease March 31, 1997. Any payment in 1997/98 will represent final payments for 1996/97 purchases.
    • The further reduction or elimination of Project Based Training and Local Purchases is to be linked to the emergence of a skills loans and grants program, and to the introduction of a new Labour Market Agreement between Canada and Alberta.
      • Project Based Training and Local Purchases can carryforward into 1997/98 as a reflection of local priorities and decisions in 1996/97.
      • however, the total carryforward from all benefits and measures into 1997/98 should not exceed $30M (about 30% of the $97M allocation anticipated for 1997/98 -Non Pan Canadian Part II).
      • it is yet to be determined whether Project Based Training (new or renewals) and Local Purchases will be authorized in 1997/8. A joint decision on these additional commitments will be made in February 1997.
    • The funds freed up by the federal training withdrawal will become part of the Part II allocation to Alberta and be available for Part II intervention.

________________________
Lynne Duncan, Deputy Minister
Alberta Advanced Education and Career
Development

November 2, 1996
Date

________________________
Russ Brown, Director General
Human Resources Development Canada
Alberta/Northwest Territories

November 8, 1996
Date

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