Canada – Manitoba 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 (here in referred to as "Canada"), as represented by the Minister of Human Resources Development and the Canada Employment Insurance Commission

and

The Government of Manitoba (herein referred to as "Manitoba"), as represented by the Premier and President of Executive Council of Manitoba and the Minister of Education and Training

Recitals

Whereas Canada and Manitoba 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 Manitoba;

Whereas Canada and Manitoba 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 Manitoba to prepare for, find and keep jobs;

Whereas Canada and Manitoba agree that predictability, stability and transparency of funding is critical to the success of a labour market development agreement;

Whereas Canada and Manitoba 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 accountability and quality 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 both Canada and Manitoba recognize the unique labour market development challenges of urban Aboriginal Peoples and are committed to work towards new partnerships to address the labour market development issues of urban Aboriginal Peoples;

Whereas Canada and Manitoba recognize youth employment as a priority and are committed to coordinate the implementation of their youth initiatives;

Whereas Canada and Manitoba recognize the value to Manitobans and all Canadians of cooperating in the collection, compilation, analysis, production and dissemination of local, provincial, and national labour market and labour exchange information;

Whereas Canada and Manitoba agree that they should reduce, to the extent possible, unnecessary overlap and duplication in their labour market development programs and services;

Whereas Manitoba intends to provide a seamless, fully integrated and cost-effective continuum of labour market development programs and services, including employment programs that are eligible for support from Canada under Part II of the Employment Insurance Act;

Whereas Manitoba intends to provide labour market development programs and services which are appropriate and responsive to the needs of Manitoba workers and employers and which are also consistent with provincial economic strategic objectives and priorities;

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

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

Whereas with respect to Manitoba's desire to expand its role in the design and the delivery of labour market development programs and services in Manitoba, 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 Manitoba to provide for the payment of contributions towards:

  • a) the costs of benefits and measures (programs) provided by Manitoba 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
  • b) the administration costs that Manitoba incurs in providing those benefits and measures (programs);

Whereas the benefits and measures (programs) described in Annex 1 entitled "Framework for Provincial Benefits and Provincial Measures" and to be provided in accordance with this 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, by the Commission, of an agreement with Manitoba to make contributions toward the costs of providing those benefits and measures (programs) and the associated administration costs;

Whereas with respect to the desire of Manitoba 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 Manitoba 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 Manitoba's Minister of Education and Training is authorized to enter into this Agreement on behalf of Manitoba by Order in Council No. 222/97 made under Clause 16 (a) of The Executive Government Organization Act of Manitoba.

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

1.0 Interpretation

1.1 “Employment benefit” and “support measure” are terms used in the Employment Insurance Act to describe specific types of employment programs that the Canada Employment Insurance Commission has established under sections 59 and 60(4), respectively, of the Act, and "benefits" and "measures" are terms used in section 63 of the Act in reference to employment programs of provincial governments and other organizations that are eligible for financial support from the Commission provided they are "similar" to the Commission's employment benefits and support measures and are consistent with the purpose and guidelines of Part II of the Act.

1.2 In this Agreement, unless the context requires otherwise,

“Active Employment Insurance 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 Manitoba in providing the provincial benefits and provincial measures;

“Annual Annex” means the Annual Annex for a fiscal year referred to in section 16.0;

“Commission” means the Canada Employment Insurance Commission;

“Costs of provincial benefits and provincial measures” means the costs of financial assistance or other payments provided by Manitoba under provincial benefits and provincial measures to persons and organizations that are eligible for assistance under those benefits and measures. "Costs of provincial benefits" (as opposed to the "Costs of provincial measures") are limited to:

  • a) the costs of financial assistance provided under the benefits by Manitoba directly to insured participants, and
  • b) the costs of financial assistance or other payments provided by Manitoba 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. Similarly, the costs of similar provincial measures that are eligible for reimbursement under this Agreement are not restricted to costs respecting insured participants.

“Designated officials” means the officials of the parties designated in section 21.0;

“Fiscal year” means the period commencing on April 1 in one calendar year and ending on March 31 in the next calendar year;

HRDC means Canada's Department of Human Resources Development and includes any department which may replace it;

“Insured participant” means an unemployed person who, when requesting assistance under a provincial benefit or provincial measure:

  • a) is an active Employment Insurance 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 his or her new-born children or one or more children placed with him or her for the purpose of adoption, and
    • iii) is seeking to re-enter the labour force;

“Joint Evaluation Committee” means the committee established under section 8.2;

“National Employment Service” (NES) means a service maintained by the Canada Employment Insurance Commission under subsections 60(1) and (2) of the Employment Insurance Act for the purpose of providing information to help workers find suitable employment and employers find suitable workers;

NES clients” means persons and organizations to whom the Commission's 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 provided by Manitoba under section 3.0 and is:

  • a) developed by Manitoba in accordance with Annex 1 entitled "Framework for Provincial Benefits and Provincial Measures"; or
  • b) described in the annual plan referred to in section 3.3 of this Agreement.

“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 provided by Manitoba under section 3.0 and is developed by Manitoba in accordance with Annex 1 entitled "Framework for Provincial Benefits and Provincial Measures" or described in the annual plan referred to in section 3.3 of this Agreement;

TAE means Training and Advanced Education within the provincial department of Manitoba Education and Training and includes any division or department which may replace it;

“Transition Committee” means the committee established under section 20.0;

“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 3.2 of this Agreement on which Manitoba begins implementation of the provincial benefits and provincial measures, or
  • b) the date on which the transfer of HRDC employees to Manitoba referred to in section 12.0 of this Agreement is completed.

2.0 Purpose and scope of Agreement

2.1 The purpose of this Agreement is to implement within the scope of Part II of Canada's Employment Insurance Act, new Canada-Manitoba arrangements respecting labour market development that will enable Manitoba to assume an expanded role in designing and delivering labour market development programs and services in Manitoba.

2.2 Canada will retain responsibility for delivery of insurance benefits under Part I of the Employment Insurance Act and for national aspects of labour market development such as, but not limited to, activities which promote and support interprovincial mobility, national sectoral councils, labour market research and innovative projects which test new approaches to improving the functioning of the Canadian labour market and the operation of national labour market information and national labour exchange systems.

2.3 Canada and Manitoba agree to keep each other informed of any initiatives in support of labour market development which might result in duplication or overlap.

3.0 Provincial benefits and measures

3.1 Subject to section 3.5, it is understood and agreed that the provincial benefits and provincial measures will be designed, developed and delivered in accordance with the framework set out in Annex 1 to this Agreement and will be similar to employment benefits and support measures established by the Commission and consistent with the purpose and guidelines of Part II of the Employment Insurance Act.

3.2 (a) Subject to clause 3.2(b), Manitoba agrees to begin providing provincial benefits and provincial measures on October 1, 1997 or such later date as may be agreed to by the parties.



(b) It is agreed and understood by the parties that the date Manitoba will begin providing provincial benefits and provincial measures is dependent upon the transfer of employees of Canada to Manitoba in accordance with the Employee Transfer Agreement under section 12.0.

3.3 Subject to section 3.4, Manitoba agrees to provide to Canada, three months before the beginning of each fiscal year, an annual plan which describes:

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

3.4 For fiscal year 1997-98, Manitoba shall provide its annual plan as soon as possible after this Agreement is signed by the parties.

3.5 Manitoba may make ongoing modifications to the design of its provincial benefits and provincial measures and may add new provincial benefits and provincial measures to ensure responsiveness to client needs, labour market conditions and evaluation findings, provided the modified or new provincial benefits and provincial measures are similar to the employment benefits and support measures that have been established by the Commission and are consistent with the purpose and guidelines of Part II of the Employment Insurance Act. Such additions and modifications will be set out in the plan provided to Canada annually.

3.6 Where any question arises as to whether a new provincial benefit or provincial measure or a modification to a provincial benefit or provincial measure is consistent with the guidelines and purpose of the Employment Insurance Act Part II, or is similar to the employment benefits and support measures established by the Commission, it shall be referred to the designated officials for a determination.

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

3.8 Manitoba will give priority to active Employment Insurance claimants within the client group eligible for provincial benefits and provincial measures provided under this Agreement.

3.9 To facilitate the coordination of the provision of assistance to active Employment Insurance claimants by Manitoba 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 Education and Training to exercise the Commission's power to designate authorities in Manitoba who may, for the purposes of section 25 of Canada's Employment Insurance Act, refer active Employment Insurance 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.

In this section, "prescribed" means prescribed by regulation made by the Commission under the Act.

3.10 Manitoba 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 Employment Insurance claimants under section 25 of the Act.

3.11 Authorities designated by Manitoba may include staff of the Department of Education and Training and of other departments of the Government of Manitoba, as well as third parties in Manitoba.

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

4.1 Manitoba acting through TAE is hereby authorized to carry out on behalf of the Commission the functions of the National Employment Service (NES) described in Annex 2 entitled "National Employment Service functions".

4.2 Canada and Manitoba agree to cooperate in establishing formal links between the parties to facilitate and coordinate the operation of local, provincial and national labour exchange systems and the production and dissemination of local, provincial and national labour market information.

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

5.0 Service to clients

5.1 Canada and Manitoba agree that in the administration of the provincial benefits and provincial measures and in carrying out the delegated functions of the National Employment Service, Manitoba will be guided by the following principles respecting service to clients:

  • a) Clients should be provided with convenient access to provincial benefits and provincial measures;
  • b) Clients should be provided with timely service and complete information on the nature of provincial benefits and provincial measures;
  • c) Service should be delivered in a manner which demonstrates responsiveness to client and community needs, flexibility and innovation;
  • d) Service delivery results should be measurable, verifiable and transparent; and
  • e) Service delivery should foster client commitment to achieving self reliance through sustainable employment.

5.2 Manitoba will ensure that availability of assistance - under its provincial benefits and provincial measures and with respect to the functions of the National Employment Service for which it is assuming responsibility - is in either official language where there is significant demand for assistance in that language. In delivering its provincial benefits and provincial measures, Manitoba will actively offer its services in either official language in accordance with its French Language Services Policy.

5.3 In determining areas of Manitoba where, for the purposes of section 5.2, there would be considered to be a "significant demand", Manitoba 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.

5.4 Manitoba will consult with representatives of the Francophone community in Manitoba on the provision of French-language labour market development programs and services under this Agreement.

6.0 Delivery arrangements

6.1 Canada and Manitoba agree that the provincial benefits and provincial measures and the delegated functions of the National Employment Service initially will be administered by TAE at delivery sites identified in Annex 3 entitled "Delivery Arrangements".

6.2 Canada and Manitoba agree that the programs and services under their respective jurisdictions should, to the extent possible, be provided at common locations in order to improve efficiency and effectiveness.

6.3 In order to determine potential for co-location and other service delivery arrangements, Canada and Manitoba agree to carry out a site-by site review of their existing service delivery points as soon as possible after signing this Agreement.

7.0 Expected results of provincial benefits and measures

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

  • a) active Employment Insurance claimants as a percentage of insured participants who access provincial benefits and provincial measures;
  • b) returns to employment of insured participants, with an emphasis on active Employment Insurance claimants; and
  • c) savings to the Employment Insurance Account.

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

7.3 Canada and Manitoba agree that for fiscal year 1997/98, the results targets shall be those set out in Annex 4 to this Agreement entitled "Accountability, Results Measurements and Results Targets for 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 Manitoba agree to establish mechanisms to set jointly the annual results targets for each fiscal year following fiscal year 1997/98, and to review and assess jointly the achievement of the results. In setting results 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 provincial measures for the coming year and improvements in the design and delivery of the provincial benefits and provincial 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. Canada agrees that the methodology and results will be transparent and open to verification by Manitoba.

8.0 Evaluation

8.1 Canada and Manitoba recognize the importance of evaluating the provincial benefits and provincial measures supported under this Agreement in order to determine their impacts and outcomes. Accordingly, immediately following the date of the signing of this Agreement, Canada and Manitoba agree to develop jointly an evaluation framework and subsequently carry out evaluations which adhere to recognized program evaluation practices. The first evaluation will be conducted in the first year of implementation of the provincial benefits and provincial measures supported under this Agreement and the second evaluation will be conducted in the third year of implementation. Subsequent evaluations will be conducted regularly, on a three- to five-year basis.

8.2 Canada and Manitoba agree that the designated officials will establish a federal-provincial committee, called the Joint Evaluation Committee, to oversee the conduct of evaluations of the provincial benefits and provincial measures supported under this Agreement.

8.3 The Joint Evaluation Committee will oversee the development of an evaluation framework that provides for short-, medium- and longer-term evaluations and links qualitative measures to the short-term results measures for determining medium-and long-term impacts and effects. Canada and Manitoba further agree that the designated officials will approve the evaluation framework and funding requirements proposed by the Joint Evaluation Committee.

8.4 Recognizing that both parties may also choose to conduct independent evaluations in line with their respective interests, Canada and Manitoba agree to make information available to each other for this purpose and to share any findings produced. Where the parties choose to conduct independent evaluations, Canada and Manitoba also agree to share information on their plans in order to minimize overlap and duplication.

9.0 Information and data sharing

For the purposes of implementing this Agreement, subject to any applicable law (including any law respecting the protection of privacy), Canada and Manitoba agree to exchange information in accordance with the arrangements specified in Annex 5 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. Manitoba recognizes that Canada will use the information provided by Manitoba under section 9.0 in the preparation of these reports.

11.0 Employment Insurance program integrity

As Canada may be providing insurance benefits under Part I of the Employment Insurance Act to active Employment Insurance claimants while they are participating in provincial benefits and provincial measures, Canada and Manitoba 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 Manitoba agrees to make an irrevocable offer of regular employment as defined in the Manitoba Civil Service Act to indeterminate employees of Canada representing not more than 118 full time equivalents (FTEs), including employees on leave of absence without pay who are affected by Manitoba's decision to:

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

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

12.3 Manitoba undertakes that its offer of employment will constitute a Reasonable Job Offer (Type 2) within the meaning of Part VII of Canada's Work Force Adjustment Directive (WFAD) dated July 16, 1996, a copy of which has been provided to Manitoba.

12.4 To ensure the continued employment of transferred federal employees, Manitoba agrees that there will be no staff reductions of transferred federal employees for other than just cause during the first three years following the date of their transfer.

12.5 Manitoba agrees that details of the offer of employment will be set out in an Employee Transfer Proposal to be submitted to Canada in accordance with the applicable sections of the Employee Transfer Proposal Guidelines, a copy of which has been provided to Manitoba.

12.6 The Employee Transfer Proposal shall be submitted to Canada within two months following signing of this Agreement or within such further time as may be agreed to by the parties.

12.7 The details of Manitoba's offer of employment will be set out in an Employee Transfer Agreement to be entered into by the parties as soon as possible after acceptance by Canada of the Employee Transfer Proposal referred to in section 12.5. Canada and Manitoba already have agreed on a number of details of the offer which are set out in Annex 6 entitled "Employee Transfer Agreement (work in progress)". It is understood that further supplementary agreements also may be required under other federal legislation such as the Public Service Superannuation Act.

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

12.9 Canada and Manitoba agree to collaborate in the identification and selection of the employees who will be transferring from Canada to Manitoba as a result of the implementation of this Agreement.

13.0 Financial arrangements

13.1 Canada and Manitoba 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 provincial measures

13.2 In each of fiscal years 1997/98 to 1999/2000, Canada (through the Commission) agrees to make a maximum contribution to Manitoba towards the costs of provincial benefits and provincial 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 Manitoba's Deputy Minister of Training and Advanced Education attached as Annex 7 to this Agreement.

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

  • fiscal year 1997/98: $46,315,000
  • fiscal year 1998/99: $48,662,000
  • fiscal year 1999/2000: $49,521,000

Manitoba recognizes, however, that given the nature of the allocation methodology, the actual amount of the maximum contribution payable in 1998/99 and 1999/2000 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 Manitoba in planning and budgeting for its provincial benefits and provincial measures, HRDC will undertake to provide in December of each year, a preliminary estimate of Canada's maximum contribution for the subsequent year.

13.4 For each fiscal year after the fiscal year 1999-2000 during the period of this Agreement, Canada's contribution towards the costs of the provincial benefits and provincial measures will be reviewed by the parties. At each annual review, Canada undertakes to provide Manitoba with a three-year projection of Canada's annual allocation which is based on current trends that are subject to change. The agreed amount of Canada's contribution towards the costs of the provincial benefits and provincial measures for each such fiscal year will then be specified in the Annual Annex for that fiscal year.

13.5 It is understood and agreed that Canada will continue to offer its employment benefits and support measures after April 1, 1997 until Manitoba commences delivery of its provincial benefits and provincial measures and that, notwithstanding section 13.2, the maximum contribution payable to Manitoba in the fiscal year 1997/98 will be reduced by the value of the financial commitments made by Canada under its employment benefits and support measures.

Contribution towards administration costs

13.6 In addition to providing a contribution towards the costs of the provincial benefits and provincial measures, Canada (through the Commission) agrees to make a contribution towards the administration costs incurred by Manitoba in each fiscal year during the period of the Agreement.

13.7 The maximum amount of the annual contribution towards Manitoba's administration costs shall be an amount determined in accordance with the methodology described in the letter of September 25, 1996 from Canada's Deputy Minister of Human Resources Development to Manitoba's Deputy Minister of Training and Advanced Education and attached as Annex 8 to this Agreement, subject to a reduction in that amount in the circumstance described in section 13.8 or to an increase in that amount in the circumstances described in section 13.9.

13.8 The maximum amount of the contribution for administration costs, as determined under section 13.7, that is payable in any fiscal year falling within the three year period following the date of transfer of HRDC employees to Manitoba shall be reduced if there is any reduction in the amount of the normal salary, as set out in an Employee Transfer Agreement, paid to those employees in that fiscal year as a result of the application of Manitoba's Reduced Work Week Program for the Manitoba Civil Service, or of any similar successor program. The amount of the reduction in the maximum contribution for the fiscal year in question shall be an amount equal to the aggregate of the reduction in the agreed normal salaries payable to the transferred employees.

13.9 The amount of the maximum contribution for administration costs determined in accordance with section 13.7 may be increased depending upon the actual financial resources available to Canada as a result of adjustments to the calculation of employee benefits or after the termination of various property leases which is expected to occur as a result of reduced accommodation requirements for Canada flowing from the transfer of HRDC employees to Manitoba under the employee transfer arrangements referred to in section 12.

14.0 Payment procedures

14.1 Beginning October 1, 1997, or on such later date as agreed by the designated officials when Manitoba begins implementation of its provincial benefits and provincial measures under this Agreement, Canada will make advance payments of its annual contribution towards the costs of the provincial benefits and provincial measures. The advances will be made on a monthly basis and will be based upon a forecast of monthly cash flow requirements furnished by Manitoba. Manitoba 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 Manitoba will be made in twelve equal monthly installments based upon an agreed estimate of the administration costs to be incurred by Manitoba during the fiscal year, subject to a possible increase under section 13.9. For the first three fiscal years of this Agreement, the maximum estimated administration costs is determined to be $5,494,000 per year.

14.3 Canada and Manitoba agree that no payment on account of Canada's contribution toward Manitoba's administration costs will be made until the transfer of employees referred to in section 12.0 occurs. Payment will then be made in equal monthly installments beginning in the month in which the Employee Transfer Agreement referred to in section 12.7 is signed, or on such other date as may be agreed to by the parties.

15.0 Transfer of assets

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

15.2 The timetable for the transfer of the assets will be established by the Transition Committee referred to in section 20.0.

16.0 Annual Annex

16.1 Prior to the beginning of each fiscal year during the period of this Agreement, Canada and Manitoba agree to establish an Annual Annex to this Agreement which shall indicate the following:

  • a) the agreed annual results targets for the coming fiscal year;
  • b) a three-year projection of Canada's annual allocations for contributions toward the costs of the provincial benefits and provincial measures;
  • c) the actual amount of Canada's contribution toward the costs of the provincial benefits and provincial measures in the coming year, as determined pursuant to section 13.0.

16.2 The designated officials of the parties are authorized to sign the Annual Annexes.

17.0 Financial accountability

For fiscal year 1997/98 and for each fiscal year thereafter during the period of this Agreement, Manitoba 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 Provincial Auditor of Manitoba, setting out the amount of costs that Manitoba actually has incurred in that fiscal year in respect of each provincial benefit and provincial 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 Provincial Auditor of Manitoba and the Auditor General of Canada, and
  • b) a statement from the Provincial Auditor of Manitoba certifying that all payments received from Canada in the fiscal year on account of Canada's contribution to Manitoba's 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 Manitoba under this Agreement exceed the amounts to which Manitoba is entitled, the amount of such excess is a debt owing to Canada and shall be repaid to Canada forthwith upon receipt of notice to repay.

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

19.0 Public information

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

19.2 Canada and Manitoba agree to prepare public information material jointly and to organize and participate jointly 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 Manitoba agrees to acknowledge Canada's contribution in information intended for the public published by Manitoba regarding the activities supported by Canada under this Agreement, including:

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

19.4 Manitoba agrees that offices of Manitoba where provincial benefits and provincial measures or services to NES clients are delivered will prominently display the Canadian flag and 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 Manitoba agrees that where automated information kiosks supplied by Canada providing labour market information to the public are installed on premises operated by Manitoba, the premises will have appropriate signage identifying that the kiosks are supplied by Canada.

19.6 Manitoba agrees to ensure that cheques or deposit statements for insured participants receiving assistance under its provincial benefits either directly from Manitoba or through an organization receiving funding from Manitoba, 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.

19.8 Each party under this Agreement will be responsible for those costs associated with communication initiatives related to their respective responsibilities. Where there are communication initiatives in support of common interests, costs will be shared.

20.0 Transition Committee

20.1 Canada and Manitoba agree to form a Transition Committee to operate during the Transition Period. The work of the Committee will centre around the transfer of program and service responsibilities from Canada to Manitoba, the review of existing service delivery arrangements and the transfer of human, materiel and financial resources from Canada to Manitoba pursuant to this Agreement.

20.2 Immediately following the signing of this Agreement, the designated officials identified in section 21.1 will determine membership and terms of reference for the Transition Committee.

21.0 Designated officials

21.1 The Regional Executive Head of Human Resources Development Canada is the designated official of Canada for purposes of this Agreement, and the Manitoba Deputy Minister of Training and Advanced Education is the designated official of Manitoba for the purposes of this Agreement.

21.2 The designated officials shall meet as required to complete Annual Annexes, approve the evaluation framework, review evaluation results, and resolve issues that emerge from the Agreement in the course of the implementation of the Agreement.

22.0 Period of Agreement

This 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. Canada and Manitoba 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 at any time 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 Manitoba 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 Manitoba, by the Minister of Manitoba Training and Advanced Education.

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

25.0 Equality of treatment

During the term of this Agreement, if a province or territory other than Manitoba 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 the provision negotiated with Manitoba, upon request by Manitoba, Canada agrees to amend this Agreement in order to afford similar treatment to Manitoba.

26.0 General

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

26.2 This Agreement, including Annexes 1 to 9 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 Prime Minister of Canada, the Minister of Human Resources Development and the Canada Employment Insurance Commission this 17th day of April, 1997.

______________

Witness

______________

Prime Minister of Canada

______________

Witness

______________

Minister of Human Resources

Development

______________

Witness

______________

Chairperson, Canada Employment Insurance Commission

This Agreement has been signed on behalf of Manitoba by the Premier and President of the Executive Council of Manitoba and by the Minister of Education and Training this 17th day of April, 1997.

______________

Witness

______________

Premier and President of Executive Council of Manitoba

______________

Witness

______________

Minister of Education and Training

Annex 1 - Framework for Provincial Benefits and Provincial Measures

1.0 Purpose

1.1 The purpose of this Annex to the Canada-Manitoba Agreement on Labour Market Development is to describe the programs and services, also referred to as provincial benefits and provincial measures, that will be provided by Manitoba.

1.2 Manitoba will plan, design, deliver and manage provincial benefits and provincial measures which are similar to the employment benefits and support measures established by the Commission under Sections 59 and 60(4) of the Employment Insurance Act and are consistent with the purpose and guidelines of Part II of the Act.

2.0 Objectives

2.1 Manitoba views the development of new federal-provincial labour market arrangements as an opportunity to integrate training and employment services for unemployed Manitobans within the provincial economic framework.

2.2 Manitoba's objectives to be achieved through these new arrangements are as follows:

  • a) To provide a "seamless", fully integrated and cost-effective continuum of employment programs and services for unemployed Manitobans, and in doing so, improve client service and reduce overlap and duplication.
  • b) To provide access and linkages to employment programs and services which are appropriate to the needs of Manitobans and relevant and responsive to the needs of employers, communities and the changing economy.
  • c) To foster partnerships with communities and employers and encourage local level participation in planning and delivery of labour market development programming and services which are consistent with provincial economic priorities and opportunities.
  • d) To foster self-reliance and personal commitment by individuals to achieve self-sufficiency through sustainable employment.

3.0 Provincial benefits and provincial measures

3.1 Overall approach

The objective of provincial benefits and provincial measures is to assist individuals to prepare for, obtain and maintain employment and to reduce their dependency on government forms of income support, including EI benefits and social assistance. In support of this objective and the objective of eliminating overlap and duplication, Manitoba intends to modify its existing employment programs and services to make them more responsive to client and community needs and to develop new approaches that are responsive to client and community needs.

In modifying existing employment programs and services and developing new ones, Manitoba intends to incorporate the following design features:

  • a) increased flexibility to allow planning and delivery decisions to be made at the local level;
  • b) strengthening of cooperative and partnership arrangements with other service providers and delivery agents;
  • c) requirement of persons receiving assistance to develop and commit to personal action plans and also to share the costs of assistance as appropriate;
  • d) the use of a case management approach to support clients, coordinate assistance and enable appropriate follow up to be done.

Manitoba will assume responsibility for selecting priority clients for provincial benefits and provincial measures but only insured participants will be given access to provincial benefits.

3.2 Provincial benefits

Manitoba will provide four provincial benefits to enable insured participants to obtain employment. Each is briefly described below.

3.3 Wage subsidies

Manitoba will modify existing wage assistance programs administered through Employment Programs Branch, Manitoba Education and Training. Wage subsidies will be used to encourage employers to permanently hire, to the fullest extent possible, insured participants who are at risk of extended periods of unemployment.

3.4 Employment partnerships

Based on current work experience and work placement programs operated through Employment Programs Branch, Manitoba Education and Training, Manitoba will develop employment partnerships with employers and community groups that facilitate employment of insured participants and/or provide insured participants with short-term work experience to help them acquire skills needed by local employers.

3.5 Self Employment Assistance

Manitoba will contract for self employment services with community partners and other 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 self employment.

3.6 Loans and grants

Manitoba will implement a loan and grant program for the education and training of insured participants so they can obtain the skills necessary for employment. This program will be administered through the province's existing Student Financial Assistance program. In accordance with section 57(e) of the Employment Insurance Act, insured participants will be expected to share the cost of training where appropriate.

3.7 Provincial measures

Manitoba will provide two provincial measures. Each is briefly described below.

3.8 Employment Assistance Services

Employment Assistance Services will be used to support delivery of delegated National Employment Service functions which are provided to help clients prepare for, find, get and keep jobs. It will be administered by Employment Programs Branch and delivered by third-party contractors who will be required to provide services that are geared to meeting the needs of specific client groups and local communities.

Services provided under this provincial measure will be accessible to all unemployed persons.

3.9 Labour Market Partnerships

Through employer and employee groups, sectoral associations and other community-based partners, Manitoba will facilitate labour market activities that deal with labour force development, workforce adjustment and human resources planning.

It is understood that Labour Market Partnerships will not be used to provide assistance for employed persons unless they are facing loss of employment.

3.10 Research and innovation

Manitoba also may develop a third provincial measure to support research, planning and innovative activities by partners who are strongly committed to investing in Manitoba's economic future and ensuring the active participation of Manitobans who want to work.

4.0 Service review

4.1 Following results assessments and program evaluations, Manitoba may make adjustments to the design and delivery of provincial benefits and provincial measures funded under this Agreement. Canada will be advised of such adjustments in accordance with section 3.5 of this Agreement.

5.0 Financial support to insured participants

5.1 The Employment Insurance Act does not provide for extending insurance benefits beyond the regular benefit period. Employment Insurance claimants may be authorized to continue to receive their insurance benefits for the normal duration of their claim under section 25 of the Employment Insurance Act through referral to an Employment Insurance funded benefit or measure. As stated in section 3.9 of this Agreement, Canada will provide Manitoba with the authority to make such referrals.

5.2 Financial support to Employment Insurance claimants in addition to, or beyond the normal duration of their claim, or to non-active claimants, will be paid from the program funds to be detailed under Section 13 of this Agreement, and administered by Manitoba.

Annex 2 - National Employment Service functions

1.0 Purpose

1.1 The purpose of this Annex is to set out the National Employment Service functions to be carried out by Manitoba on behalf of the Commission, within the context of the Employment Insurance legislation and the May 30, 1996 proposal to provinces and territories.

2.0 Service needs determination and employment counselling

2.1 Manitoba will provide service needs determination services and employment counselling services.

2.2 Service needs determination includes the identification of an individual's need for employment services and temporary income support and referral to services as appropriate.

2.3 Employment counselling includes interviews and consultations which result in the identification of barriers to continuing employment, and the development of plans of action.

3.0 Labour exchange

3.1 Canada and Manitoba agree that Manitoba will provide Labour Exchange Services in Manitoba. This includes gathering and disseminating job vacancy information for the purpose of assisting workers to obtain employment and employers to locate suitable workers.

3.2 Manitoba will undertake its Labour Exchange responsibilities in a manner which is consistent with the operation of the National Labour Exchange whereby:

  • a) the taking of job orders and the dissemination of job order information is done in both official languages;
  • b) accountability for order service management is clearly defined and assigned to ensure continuity and quality of service;
  • c) linkages are maintained to ensure that Canadians have full access to Manitoba job orders and Manitoba employers have full access to Canadians seeking work;
  • d) there is no discrimination on a prohibited ground within the meaning of the Canadian Human Rights Act or the Human Rights Code of Manitoba or because of political affiliation;
  • e) HRDC kiosks and Internet labour exchange service products are maintained with up-to-date information;
  • f) the International Labour Organization convention on the labour exchange is applied;
  • g) Canada's contribution is recognized.

4.0 Labour market information

4.1 Canada and Manitoba agree to the preparation of a joint labour market information strategy which will set out how each party will cooperate in gathering, analysing, producing, disseminating and using local, provincial and national labour market information to support economic progress. Through this strategy, the parties will seek to do the following:

  • a) provide appropriate and timely local, provincial and national labour market information to Manitoba workers, employers, students, governments and other partners;
  • b) support the development of plans for delivering provincial benefits and provincial measures and assessing outcomes and impacts;
  • c) support continuing delivery by Canada of Part I Employment Insurance benefits, Labour programming including fair wages and Employment Equity, and the provision of sound advice on admitting foreign workers into the provincial labour market;
  • d) support ongoing analyses of Manitoba's labour market trends that will lead to the development of practical strategies for dealing with evolving labour market challenges.

4.2 The joint strategy will be consistent with National Labour Market Information System (NLMIS) methodology whereby:

  • a) labour market information is available in both official languages;
  • b) the HRDC national labour market information research framework and methodology (presently known as the Canadian Occupational Projection System), currently defined and supported in partnership with provinces, continues;
  • c) linkages are maintained through the National Labour Market Information System and CanWorkNet to ensure that Canadians have access to Manitoba labour market information from elsewhere in Canada;
  • d) HRDC kiosks and Internet labour exchange service products are maintained with up-to-date information;
  • e) NLMIS methodological consistency and operational standards are applied to ensure data quality;
  • f) partnerships are encouraged; and
  • g) the contributions of both parties and other partners are recognized.

4.3 Labour market information may be local, provincial andnational in scope. It is structured to include the following elements:

  • a) occupational profiles and forecasts;
  • b) community profiles;
  • c) demographic and labour force profiles and forecasts;
  • d) industrial/sectoral profiles and forecasts;
  • e) wage and salary data and conditions of employment;
  • f) vacancy and employment opportunities;
  • g) reviews of labour market trends;
  • h) occupational demand lists;
  • i) potential employer lists;
  • j) lists of training providers and available courses;
  • k) major project updates;
  • l) work search tools.

Annex 3 - Delivery arrangements

1.0 Purpose

The purpose of this Annex to the Canada-Manitoba Agreement on Labour Market Development is to describe the service delivery network for provincial benefits and provincial measures as outlined in Annex I and for the delegated National Employment Services functions as outlined in Annex 2.

2.0 Service delivery approach

2.1 Canada and Manitoba agree that all current service delivery locations of both parties will be maintained in each community until a review of service delivery sites has been completed.

2.2 Canada and Manitoba agree that co-located delivery sites represent an opportunity for the effective delivery of federal and provincial responsibilities within the context of this Agreement. Programs and services which will be delivered by either Manitoba or Canada should, wherever possible, be provided from common locations in order to improve efficiency and effectiveness.

2.3 Canada and Manitoba agree that decisions regarding the selection of service delivery sites within communities should give consideration to factors such as: historical/traditional service catchment areas, cost effectiveness, requirements under provincial and federal workplace legislation, accessibility for the physically disabled, the visibility needs of each order of government and office designs which enhance client service.

2.4 Provincial benefits and provincial measures will be delivered to the public at offices known as Employment Centres.

2.5 Arrangements for the provision of services beyond the scope of this Agreement may be established by the parties outside this Agreement.

3.0 Service delivery arrangements

3.1 In communities where both Canada and Manitoba currently maintain offices, a review will be undertaken on a site by site basis to determine the feasibility and timing of co-locating and integrating the provincial benefits and provincial measures described within this Agreement with previously existing provincial labour market programming. Further, on a site by site basis, the issue of co-locating Canada's remaining labour market programs and services, along with associated staff, within these delivery sites will be determined. Where such co-location is pursued, access to service will be enabled through a common front end. The following communities will be considered under this provision:

  • - Winnipeg
  • - Brandon
  • - Thompson
  • - The Pas
  • - Dauphin
  • - Portage la Prairie
  • - Morden
  • - Selkirk

3.2 In communities where either Canada or Manitoba, but not both, currently maintain offices, arrangements will be concluded during the transition period to ensure client access to both federal and provincial labour market programs and services. Based upon practical considerations, this could take the form of provision of basic information including pamphlets and applications up to and including full delivery of programs and services. Arrangements for the co-location of federal staff involved in delivery of remaining HRDC labour market programs and services will also be concluded where appropriate. The following communities will be considered under this provision:

  • - Flin Flon
  • - Swan River
  • - Steinbach
  • - Gimli
  • - Beauséjour

3.3 In communities where neither Canada nor Manitoba maintain offices or staff, consideration may be given to provision of program and service information via access to technology or through contracts with community- based organizations.

Annex 4 - Accountability, results measurement and results targets for 1997 - 1998

1.0 Purpose

The purpose of this Annex is to set out the parties' mutual understandings of, and agreements on, results measurements to be used, the target setting process, results reporting and results targets for 1997-1998.

2.0 Results measurements

2.1 Canada and Manitoba agree that the following measures are to be used in determining short-term results and medium- to longer-term impacts and effects of the provincial benefits and provincial measures:

  • a) Primary Indicators (Short-term)
    • i) active Employment Insurance claimants as a percentage of insured participants who access provincial benefits and provincial measures;
    • ii) returns to employment of insured participants, with an emphasis on active Employment Insurance claimants; and
    • iii) savings to the Employment Insurance Account.
  • b) Cost and Effectiveness Measures (Short-term)
    • i) number and unit costs of clients becoming employed/self-employed;
    • ii) number and unit costs of clients becoming self-sufficient.
  • c) Qualitative Measures (Medium- to Longer-term)
    • i) sustained employment or self-employment as a result of Manitoba's provincial benefits and provincial measures;
    • ii) reduction in dependency on Employment Insurance and other forms of government financial support;
    • iii) savings to social assistance and the Employment Insurance Account;
    • iv) increased tax revenues from earned income;
    • v) other medium- and/or longer-term qualitative measures as may be recommended by the Joint Evaluation Committee established under section 8.2 of this Agreement and approved by the designated officials.

3.0 Targets and target-setting

3.1 For 1997-98, targets for the three primary indicators have been established using a bench-making procedure supported by historical data from HRDC. Both parties recognize that these targets are "soft" ones and for 1997-1998, major emphasis will be placed on establishing the systems and client information exchange linkages needed to ensure that results can be measured, data integrity can be maintained, and the information required for Canada's annual report to Parliament can be made available on a timely basis.

3.2 Canada and Manitoba agree that 1997-1998 targets for the three primary indicators will be as follows:

Priority active employment insurance claimant access

At least 65% of insured participants who access Manitoba's provincial benefits and provincial measures will be active Employment Insurance claimants.

Insured participants returned to work

At least 5,121 insured participants will return to employment or self employment after being referred to Manitoba's provincial benefits and provincial measures. 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 Employment Insurance claimants.

Savings to the employment insurance account

There will be short-term savings to the Employment Insurance Account of at least $36.32 million. On an individual basis, calculation of a saving to the Employment Insurance Account is 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).

3.3 As outlined in Section 16.1 of the Agreement, results targets for fiscal years beyond 1997-98 will be mutually agreed upon and set out in an Annual Annex. Targets will be set taking into consideration local level labour market realities and opportunities, individual client needs, community/partnership capacity and program mix.

4.0 Reporting of results

4.1 Canada and Manitoba agree that the primary indicators and cost and effectiveness measures described above will be tracked and reported on as follows:

  • a) On a quarterly basis, Manitoba will report to the Regional Executive Head, Manitoba Region HRDC, on the Year-to-Date (YTD) results achieved with respect to the primary indicators and cost and effectiveness measures.
  • b) The following represents the reporting requirements for the primary indicators and cost and effectiveness measures:
    • i) Percentage of insured participants involved in provincial benefits who are active Employment Insurance claimants;
    • ii) Number of insured participants and the number of active Employment Insurance claimants who are employed or self-employed, broken down by provincial benefit or provincial measure and the average cost. Insured participants are considered as employed if they:
      • a) have drawn 25 percent or less of their Employment Insurance entitlement for twelve consecutive weeks (applies to active Employment Insurance claimants who return to employment twelve weeks or more before the end of their benefit period); or,
      • b) draw 25 percent or less of their Employment Insurance entitlement in all their remaining weeks on benefits (applies to active Employment Insurance claimants who return to employment less than twelve weeks before the end of their benefit period); or,
      • c) are recorded as employed at the completion of their intervention(s) (applies to insured participants who return to employment after the end of their benefit period or who were not active Employment Insurance claimants); or,
      • d) are employed when contacted twelve weeks after the completion of their intervention(s) (applies to insured participants who return to employment after the end of their benefit period or who were not active Employment Insurance claimants);
    • iii) Year-to-Date savings to the Employment Insurance account as a result of active Employment Insurance claimants becoming employed before making a full draw on their insurance entitlement (Part I insurance benefit entitlement minus actual Part I pay out);
    • iv) The number of insured participants and the number of active Employment Insurance claimants who have completed their intervention, broken down by type and average cost per intervention, as well as the number of active Employment Insurance claimants who have yet to complete their intervention.

4.2 Understanding that quarterly reports largely deal with aggregate roll ups and Year-to-Date figures, Manitoba agrees to provide Canada access to information on individual clients for purposes of monitoring, evaluating and validation, as outlined in Annex 5 on "Information and Data Sharing Arrangements".

4.3 On an annual basis, Canada is required to report to Parliament in accordance with requirements of the Employment Insurance Act. This report, as described under Section 10 of the Agreement, will include the results as reported by Manitoba in accordance with section 4.1.

4.4 Manitoba agrees to report an annual estimate of savings which can be ascribed to Manitoba's social assistance account as a result of activities under this Agreement.

Annex 5 - Information and data sharing arrangements

1.0 Purpose

The purpose of this Annex to the Canada-Manitoba Agreement on Labour Market Development is to provide for the exchange of information between the parties for the effective implementation of the Agreement, given that:

  • a) Manitoba needs information from Canada on active Employment Insurance claimants and other clients for the purpose of:
    • (i) administering its provincial benefits and provincial measures, including establishing eligibility for assistance under the provincial benefits and provincial measures, determining and assessing employment needs, determining the appropriate type of assistance to be provided and determining the amount of financial assistance that may be required, and
    • (ii) carrying out the delegated functions of the National Employment Service; and
  • b) Canada also needs information from Manitoba on active Employment Insurance claimants and other clients who are receiving assistance under provincial benefits and provincial measures provided by Manitoba for purposes of verifying their eligibility for, or entitlement to, insurance benefits under Part I of the Employment Insurance Act and for the monitoring, assessment and evaluation of the effectiveness of the assistance which the Commission is required to do under section 3 of the Act, and for evaluating the results of provincial benefits and provincial measures supported under the agreement, as required under section 57 of the Act.

2.0 Authority to disclose information

2.1 With respect to the information needed by Manitoba from Canada for the purposes described in paragraph 1.0(a), Canada's Minister of Human Resources Development has considered it advisable under section 127 of the Employment Insurance Act, and section 8(2)(f) of the Privacy Act (Canada) to make the information described in this Annex available to Manitoba for that purpose and, accordingly, Canada confirms that it is authorized under these sections to provide such information to Manitoba.

2.2 Similarly, Manitoba confirms that it is authorized to disclose to Canada the information described in this Annex that is required by Canada pursuant to existing legislation.

3.0 Information to be exchanged

3.1 Canada will provide Manitoba the following information from each individual's client file for the purposes described in paragraph 1.0(a):

  • - name
  • - official language
  • - social insurance number
  • - address
  • - date of birth
  • - benefit period commencement
  • - date of renewal application
  • - claim type
  • - claim status
  • - weekly benefit rate
  • - number of insured weeks
  • - claim terminated
  • - entitlement weeks
  • - number of weeks paid
  • - other personal information as mutually agreed upon between the parties that is needed to determine client eligibility, level of service or benefit, or for the design and evaluation of the programs or services provided under provincial benefits and provincial measures.

3.2 Manitoba will provide Canada the following information from the file of each participant in Manitoba's provincial benefits to ensure that the participant who is an active Employment Insurance claimant will continue to receive the Employment Insurance benefits to which he or she is entitled:

  • - name
  • - social insurance number
  • - address
  • - date of birth
  • - name of program in which individual is involved
  • - start and end dates of program
  • - withdrawal from or termination date of program
  • - other personal information as mutually agreed upon between the parties, that is needed for the purposes outlined in this clause.

3.3 Manitoba will provide to Canada upon request, all or any of the following information, on a per-client basis, for use by Canada in monitoring, assessing and evaluating the effectiveness of the assistance provided under the Agreement, in order to meet Canada's legislative requirement under section 3 of the Employment Insurance Act and for evaluating the results of the provincial benefits and provincial measures supported under the Agreement, as required under section 57 of the Act:

  • - name
  • - social insurance number
  • - address
  • - date of birth
  • - gender (where available as self-identified information)
  • - family type
  • - official language
  • - marital status
  • - number of dependents
  • - disability status (where available as self-identified information)
  • - visible minority (where available as self-identified information)
  • - Aboriginal group (where available as self-identified information)
  • - assessment regarding employability
  • - name of program in which individual is involved
  • - length of program
  • - official language of program
  • - cost of program educational attainment
  • - type of employment obtained
  • - date of return to work
  • - length of employment
  • - earnings
  • - change in dependency upon government support other personal information as mutually agreed upon between the parties that is needed for the purposes outlined in this clause.

4.0 Mechanism

4.1 Information covered by this Annex should be provided by each party in a mutually agreed format and manner. In this regard, Canada and Manitoba agree to review various options to facilitate the sharing of information between them including:

  • a) access by Manitoba to electronic information systems administered by HRDC;
  • b) development of connectivity protocols allowing the electronic information systems of both parties to communicate with each other;
  • c) sharing of common software and functionality.

4.2 The parties agree that whatever option is chosen, access to information covered by this Annex will be:

  • a) limited to only those employees, agents or contractors who require access for the purposes listed in clause 3.0 or 6.2; and
  • b) only used for the purposes listed in clause 3.0 or 6.2.

4.3 Canada and Manitoba recognize the importance of reliable and timely information and agree to pursue their work towards shared or inter-connected information systems.

5.0 Costs

5.1 It is understood that Manitoba will have full access, at no additional cost, to HRDC electronic information systems which support the delivery of labour market assistance and that these systems will have the appropriate data collection capacity to meet both client service and reporting obligations.

5.2 Other costs of data collection and report generation incurred by a party in the context of this Annex will be the responsibility of that party.

6.0 Confidentiality and use

6.1 Subject to clause 6.2, each party undertakes not to use or disclose personal information obtained by it under this Annex for purposes other than those mentioned in clause 3.

6.2 A party may use or disclose personal information obtained by it under this Annex for a purpose other than those mentioned in clause 3 where:

  • a) the individual to whom the information relates has given written consent to the use or disclosure for that purpose, or
  • b) in the case of Canada:
    • i) the use is for a consistent purpose permitted under section 7(a) of the Canada's Privacy Act (i.e. a "consistent use"); or
    • ii) the disclosure is for a purpose authorized or required by law, including disclosures authorized under section 127 of the Employment Insurance Act, and section 8 of Canada's Privacy Act; and
  • c) in the case of Manitoba:
    • i) the use is for a purpose consistent with the purposes set out in clause 3, or is authorized or required by law, or
    • ii) the disclosure is
      • (a) for a purpose consistent with the purposes set out in clause 3, or
      • (b) for a purpose authorized or required by law. However, in the absence of Manitoba legislation respecting the disclosure of personal information, Manitoba agrees to establish policies respecting use and disclosure which are consistent with section 8 of the Canada's Privacy Act.

7.0 Information management

7.1 The information exchanged under this Annex shall be collected, administered, maintained, destroyed or disposed of in accordance with:

  • a) in the case of Canada, the Privacy Act, the Government of Canada Security Policy and supporting operating directives and guidelines, covering the administrative, technical and physical safeguarding of the personal information; and
  • b) in the case of Manitoba, the Legislative Library Act and legislation, directives, policies and guidelines covering the administrative, technical and physical safeguarding of the personal information.

7.2 Each party will promptly notify the other party of an unauthorized disclosure or use and will furnish the other party with full details of the unauthorized disclosure or use.

7.3 In the event of an occurrence described in clause 7.2 above, the party responsible for the security of the information will promptly take all reasonable steps to prevent a recurrence of the event.

8.0 Accuracy

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

8.2 Each party will review any requests from individuals for correction of their personal information that may be in the custody or under the control of that party:

  • (a) in the case of Canada, in accordance with section 12(2) of the Privacy Act (Canada), and
  • (b) in the case of Manitoba, in accordance with section 13 of The Freedom of Information Act or any legislation which replaces that Act.

9.0 Ensuring data protection

9.1 The parties agree that they are each responsible for the actions of their own employees, agents and contractors with respect to the collection, disclosure, use, retention, and disposal of personal information in their custody or under their control, whether or not the person is or was acting within the scope of his or her employment, agency or contract.

9.2 Provided that any disclosure or failure to disclose personal information is done in good faith and reasonable care has been taken to comply with applicable federal or provincial legislation, the parties shall not assume liability whatsoever with respect to the misuse of any personal information provided to each other under this Annex.

9.3 The parties will, separately or jointly, on a periodic basis, conduct a review of the practices and procedures employed in the information management process under this Annex to ensure compliance with this Agreement.

10.0 Employment Insurance integrity

10.1 The parties agree to develop audit and verification procedures for detecting and controlling abuse under provincial benefits and provincial measures.

10.2 Any personal information exchanged for the purposes of audit and verification in clause 10.1 shall be the subject of a separate agreement between the parties.

Annex 6 - Employee Transfer Agreement (work in progress)

1.0 Purpose

When completed and signed, this Annex to the Canada-Manitoba Labour Market Development Agreement will consist of the Employee Transfer Agreement. In the interim, it contains a description of selected elements of the Employee Transfer Agreement on which Canada and Manitoba already have agreed.

2.0 Offer of employment

2.1 Comparable Employment

Employees of Canada transferring to Manitoba as a result of this Agreement will, to the extent possible, be offered comparable employment.

2.2 Probationary Period

There will be no probationary period for employees of Canada transferring to Manitoba as a result of this Agreement if they have served a probationary period with Canada.

2.3 Equivalent Qualifications

Manitoba will recognize the qualifications of employees transferring to Manitoba as a result of this Agreement to be equivalent to the requirements of the positions they are assuming.

2.4 Continuing Employment

For the first three years following their date of transfer, there will be no staff reductions, for other than just cause, among employees of Canada transferring to Manitoba as a result of this Agreement.

3.0 Salary and other terms and conditions of employment

3.1 Salary

Subject to any reductions that may result from the application of Manitoba's Reduced Work Week Program for the Manitoba Civil Service, employees of Canada transferring to Manitoba as a result of this Agreement will, for a three-year period, continue to receive an annual salary of no less than that received in their substantive positions on the date of their transfer.

3.2 Hours of Work

Employees of Canada transferring to Manitoba as a result of this Agreement will work the normal working hours for employees of Manitoba.

3.3 Location

To the extent possible, employees of Canada transferring to Manitoba as a result of this Agreement, will be assigned to positions in the same geographic location in which they worked prior to their transfer. The offer of employment will specify the work location. Expenses associated with the relocation of an employee will be paid by Manitoba in accordance with Manitoba's Relocation Expenses Guidelines for Civil Service employees.

4.0 Recognition of prior service

4.1 Manitoba will recognize years of continuous employment in the Federal Public Service of employees of Canada transferring to Manitoba as a result of this Agreement for purposes of establishing eligibility and/or entitlements to leave and benefit plans.

4.2 For employees of Canada transferring to Manitoba as a result of this Agreement, Canada agrees to pay out any earned but unused vacation leave entitlements in excess of what employees' annual entitlements would be under Manitoba's Government Employees' Master Agreement, prior to the date of transfer.

4.3 For employees of Canada transferring to Manitoba as a result of this Agreement, Manitoba will begin to calculate employees' years of continuous employment for severance pay purposes effective the date of their transfer to Manitoba.

4.4 Manitoba undertakes to negotiate with the receiving provincial union in order to have it recognize years of continuous employment in the Federal Public Service of employees of Canada transferring to Manitoba for purposes of establishing seniority in all of its applications other than those which have been agreed to in sections 4.1 and 4.2. The results of Manitoba's negotiations with the receiving union will be included in the Employee Transfer Proposal.

5.0 Benefit plans; short-term disability arrangement

5.1 Benefit Plans

Manitoba agrees to provide coverage under its existing employee dental, health, long-term disability and life insurance plans. Evidence of insurability will not be required of employees transferring to Manitoba as a result of this Agreement and waiting periods will be waived.

5.2 Short-Term Disability Arrangement

For employees of Canada transferring to Manitoba as a result of this Agreement, Manitoba will recognize all sick leave accumulated up to a maximum of 85 days. This arrangement, in combination with the long term disability plan, will provide protection for transferring employees who are unable to work because of a non-occupational illness or accident.

6.0 Pension plan arrangements

Employees of Canada transferring to Manitoba as a result of this Agreement will be enrolled in Manitoba's existing pension plan as of the date of their transfer. Canada and Manitoba agree to enter into negotiations to permit employees to transfer their accrued pension credits to Manitoba's pension plan should they choose to do so.

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

June 26, 1996

Mr. Tom Carson

Deputy Minister of Training

and Advanced Education

Legislative Building, Suite 407

450 Broadway

Winnipeg, Manitoba

R3C 0V8

Dear Mr. Carson:

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 (El) 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 talks 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 full 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 staffs 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 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)
Manitoba
1995-96 1996-97 1997-98 1998-99 1999-00
Maximum funds for provincially managed programs **
UIDU / Part II (Base) 45,518 4,2785 41,454 40,987 40,567
Re-Investment 0 2,238 4,861 7,675 8,954
Total - Max. funds for provincially managed programs 45,518 45,023 46,315 48,662 49,521
Income support under active measures
Part I (Benefit Entitlements) 18,734 18,734 18,734 18,734 18,734
Pan-Canadian responsibilities
Ongoing 5,210 5,922 5,922 5,922 5,922
Transitional 0 1,328 3,256 2,304 0
Total - Pan-Canadian responsibilities 5,210 7,250 9,178 8,226 5,561
Grand total 69,462 71,007 74,227 75,622 73,816

* - 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 funding * 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
1995-96 (presented for comparative purposes only)

Maximum funds for provincially manged 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

* - 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 funding * 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
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
1998-99

Maximum funds for provincially managed programs **
UIDU / 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

* - 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 Funding * 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
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 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 UI 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 v 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).

June 19, 1996

Recommended allocation of reinvestment for 2001/02 - Showing impacts of reform before/after reinvestment and benefit to contribution (B/C) ratios-

Reform Impacts In 2001-02
Province UI Benefits

(without Reform)

$ million
Reduction Before Reinvestment Illustrative

Re-Investment

$ million
Net Impact of Reform
$ million Percent $ million Percent
Newfoundland 725 112 -15 73 39 -5(5.4)
PEI 170 19 -10 10 9 -5(5.3)
Nova Scotia 750 70 -8 30 40 -5(5.3)
New Brunswick 630 76 -11 42 34 -5(5.4)
Québec 5,495 536 -10 248 288 -5(5.2)
Ontario 5,270 380 -7 184 196 -4(3.7)
Manitoba 520 31 -6 10 21 -4(4.0)
Saskatchewan 385 26 -7 10 16 -4(4.2)
Alberta 1,395 93 -7 36 57 -4(4.1)
B.C. 2,040 241 -11 152 89 -4(4.4)
NWT * 35 5 -14 3 2 -6(5.9)
Yukon * 35 4 -11 2 2 -6(5.7)
Total 17,450 1,593 -9 800 793 -4(4.5)
Benefit Contribution Ratio after Reform (ranking from largest net contributor to largest net beneficiary)
Province Ratio
Newfoundland 2.73 (9)
PEI 2.77 (10)
Nova Scotia 1.52 (7)
New Brunswick 1.59 (8)
Québec 1.32 (6)
Ontario 0.76 (1)
Manitoba 0.85 (4)
Saskatchewan 0.81 (2)
Alberta 0.83 (3)
B.C. 0.93 (5)
NWT * -
Yukon * -
Total 1.0

* NWT and Yukon estimates of impact are only accurate to a certain level given the small size of the claimant population and the lack of labour force data on the hours of work in these areas.

  • Column three shows the Impact of the reform at maturity (i.e. 2001-02) on insurance benefits.
  • As the objective of the reinvestment of a portion of the reform savings is to help individuals and regions most affected by the reform to adjust, the allocation of the $800 M is designed to achieve a fairly even net impact across provinces. However, in recognition that some provinces are net contributors to the program, funds are reinvested in a way to ensure at least a one percentage point lower impact in such provinces, generally ranked in order of the scale of their net contributions over the business cycle (see last column).
  • Therefore, as the second last column shows, the net impact in provinces that are net beneficiaries round to 5% (the slightly higher impact in the territories is due to rounding and the degree of accuracy of estimates) and to 4% in provinces that are net contributors.

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

September 25, 1996

Mr. Tom Carson

Deputy Minister of Training

and Advanced Education

Legislative Building, Suite 407

185 Carlton Street

Winnipeg, Manitoba

R3C 3J1

Dear Mr. Carson:

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 McIntosh.

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 Manitoba 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 Manitoba 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 118 FTEs (Full Time Equivalents) and $5,494,000 administrative resources per year would be available once a final agreement is reached and if the Government of Manitoba 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. Stephen Goldberg, Regional Executive Head for Manitoba, and the chief negotiator for the Government of Canada in Manitoba, 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. Stephen Goldberg 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 know that our officials have presented a draft framework agreement September 12 and that the detailed discussions will begin September 27. I think we should aim at an agreement as soon as possible, which could allow the Government of Manitoba 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.

cc. Ms. Tannis Mindell

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
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
Accomodation ($000s) (see Note 4 below) 643 969 743 214 4,406 6,071 562 702 759 155 2,248 64 17,542
Notes:
  1. 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. 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. 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. 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

1.0 Purpose

1.1 The purpose of this Annex to the Canada-Manitoba Agreement on Labour Market Development is to highlight provisions for the transfer of moveable assets by Canada to Manitoba.

2.0 Definition

2.1 In the context of this Agreement, moveable assets are assets which are not permanently attached to a building. They include office furniture and equipment; i.e., desks, chairs, book cases, filing cabinets, acoustical screens, calculators, micro-computer hardware and a proportionate share of office productivity software based on the number of employees being transferred and current HRDC user licenses.

3.0 Procedures for transfer of assets

3.1 Relevant to the number of employees of Canada who are transferred to Manitoba under arrangements described in section 12.0 of this Agreement, Canada will prepare an inventory of moveable assets to be transferred to Manitoba. When this inventory is completed, it will be reviewed by the Transition Committee referred to in section 20.0. The finalized list will be submitted to the designated officials for approval and will be attached to this Annex and become part of this Agreement

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: