Agreement to amend the Canada-Manitoba Labour Market Development Agreement

Information for reference

This text copy of the bilateral transfer agreement between the Government of Canada and Manitoba is provided for reference and research purposes only. The final signed version of the agreement is the official version between the parties.

List of acronyms and abbreviations

Canada: The Government of Canada
EI: Employment Insurance
LMDA: Labour Market Development Agreement
Manitoba: The Government of Manitoba

Between

The Government of Canada, hereinafter referred to as "Canada", as represented by the Minister of Employment and Social Development styled as the Minister of Families, Children and Social Development and the Canada Employment Insurance Commission

And

The Government of Manitoba, hereinafter referred to as “Manitoba”, represented by the Minister of Education and Training

Hereinafter referred to as “the parties”.

Preamble

Whereas the parties entered into the Canada-Manitoba Labour Market Development Agreement (“Canada-Manitoba LMDA”) on April 17, 1997;

Whereas the Canada-Manitoba LMDA was amended on April 11, 2001, May 8, 2009, December 21, 2016, and March 28, 2018;

Whereas the steel and aluminum industries and related industries are currently facing economic adjustments which have resulted in negative impacts on Canadian jobs and workers;

Whereas Canada and Manitoba recognize that workers in seasonal industries are an important part of Canada’s continued prosperity and experience unique labour market challenges due to the cyclical nature of seasonal work;

Whereas Canada announced in its Budget 2018 that it would make available additional funding for 2018 to 2019 and 2019 to 2020 to the provinces and territories under the Labour Market Development Agreements to support workers in the steel and aluminum industries, as well as in seasonal industries;

Whereas Canada is prepared to provide a time-limited targeted increase to the federal contribution to the costs of Manitoba benefits and measures for fiscal year 2019 to 2020 under the Canada-Manitoba LMDA to support workers directly or indirectly affected by economic adjustments in the steel and aluminum industries, as well as workers in seasonal industries;

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

Clauses

  1. The Canada-Manitoba LMDA is amended by adding the following headings and sections after section 13C:

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

    13D Notwithstanding anything in section 13.0, in fiscal year 2019 to 2020, Canada agrees to increase the maximum contribution payable to Manitoba under section 13.0 based on the following allocation methodology, rounded to the nearest dollar:

    A funding floor of $500,000 is provided to Manitoba if there is direct and indirect employment in steel and aluminum in the Province of Manitoba and where the following formula results in an allocation below $500,000:

    (A/B) x $25 million

    Where

    A is the number of workers directly and indirectly employed in the steel and aluminum industries in Manitoba in 2016; and

    B is the total number of workers directly and indirectly employed in the steel and aluminum industries in Canada in 2016.

    If Manitoba is not receiving the funding floor and where there is direct and indirect employment in steel and aluminum in the Province of Manitoba, the maximum contribution payable under section 13.0 towards the costs of provincial benefits and provincial measures is determined by the following formula, rounded to the nearest dollar:

    (A/B) x C

    Where

    A is the number of workers directly and indirectly employed in the steel and aluminum industries in Manitoba in 2016;

    B is the total number of workers directly and indirectly employed in the steel and aluminum industries in Canada in 2016; and

    C is the $25 million investment to support workers in the steel and aluminum industries made available to provinces and territories, less the amount distributed under the $500,000 funding floor.

    Direct employment in the steel and aluminum industries is based on Statistics Canada’s 2016 Census Table 98-400-X2016290 and North American Industry Classification System codes 3311, 3312 and 3313.

    Indirect employment in the steel and aluminum industries is based on a National Job Multiplier of 3.14 for North American Industry Classification System code 3311, 3.01 for North American Industry Classification System code 3312, and 2.20 for North American Industry Classification System code 3313.”

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

    13E Notwithstanding anything in section 13.0, in fiscal year 2019 to 2020, Canada agrees to increase the total maximum contribution payable to Manitoba under section 13.0 based on the following allocation methodology, rounded to the nearest dollar.

    A funding floor of $250,000 is provided to Manitoba if the following formula results in an allocation below $250,000:

    (A/B) x $20.5 million

    Where

    A is the number of Employment Insurance (EI) Regular Beneficiaries (total completed seasonal claims according to EI Program administrative data) in 2016 to 2017 in EI Economic Regions where the unemployment rate was over 6.3% (the average national unemployment rate for 2017 according to the Labour Force Survey) in Manitoba; and

    B is the number of EI Regular Beneficiaries (total completed seasonal claims according to EI Program administrative data) in 2016 to 2017 in all EI Economic Regions in Canada where the unemployment rate was over 6.3%.

    If Manitoba is not receiving the funding floor, the total maximum contribution payable under section 13.0 towards the costs of provincial benefits and provincial measures is determined by the following formula, rounded to the nearest dollar:

    (A/B) x C

    Where

    A is the number of EI Regular Beneficiaries (total completed seasonal claims according to EI Program administrative data) in 2016 to 2017 EI Economic Regions where the unemployment rate was over 6.3% (the average national unemployment rate for 2017 according to the Labour Force Survey) in Manitoba;

    B is the number of EI Regular Beneficiaries (total completed seasonal claims according to EI Program administrative data) in 2016 to 2017 in all EI Economic Regions in Canada where the unemployment rate was over 6.3%, excluding provinces and territories that are receiving the $250,000 funding floor; and

    C is the $20.5 million investment to support workers in seasonal industries made available to provinces and territories, less the amount distributed under the $250,000 funding floor.”

  2. The Canada-Manitoba LMDA is amended by adding the following headings and sections, after section 14.3:

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

    14.4 Canada will make payments of its increase in contribution to Manitoba towards the costs of the provincial benefits and provincial measures as determined under section 13D in two installments, as follows:

    14.4.1 The amount of the first installment equal to one-half (50%) of the increase determined under section 13D will be paid upon the signing by both parties of this amending agreement; and

    14.4.2 The amount of the second installment equal to one-half (50%) of the increase determined under section 13D will be paid upon a written request from Manitoba, and such request must be received by Canada no later than February 3, 2020.”

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

    14.5 Canada will make payments of its increase in contribution to Manitoba towards the costs of the provincial benefits and provincial measures as determined under section 13E in two installments, as follows:

    14.5.1 The amount of the first installment equal to one-half (50%) of the increase determined under section 13E will be paid upon the signing by both parties of this amending agreement; and

  3. 14.5.2 The amount of the second installment equal to one-half (50%) of the increase determined under section 13E will be paid upon a written request from Manitoba, and such request must be received by Canada no later than February 3, 2020.”

  4. The Canada-Manitoba LMDA is amended by adding the following section, after section 7.7:

    “7.8 The parties agree that results measurement and reporting related to the increase of funding provided under sections 13D and 13E for fiscal year 2019 to 2020, will be consistent with the process described in Annex 4 to this Agreement entitled ‘Performance Measurement Strategy’.”

  5. This amending agreement will not impact the allocation methodology established by Canada for allocating among provinces and territories the funding approved each year by Canada for expenditures under Part II of the Employment Insurance Act (currently $1.95 billion per year), which, the parties acknowledge, is the allocation method described in the letter dated June 26, 1996, from the Deputy Minister of the Department of Human Resources Development to the Deputy Minister of Training and Advanced Education.
  6. In all other respects, the Canada-Manitoba LMDA shall remain unchanged.
  7. This amending agreement shall be read together with the Canada-Manitoba LMDA as amended from time to time and takes effect as if its provisions were part of the Canada-Manitoba LMDA.
  8. This amending agreement comes into force once it has been signed by both parties.


Signed on behalf of Canada

in Gatineau

this 1 day of August 2019

________________________


The Honourable Jean-Yves Duclos

Minister of Employment and Social Development

styled as the Minister of Families, Children and Social Development

Signed on behalf of Manitoba

in Winnipeg

this 25 day of November 2019

________________________


The Honourable Ralph Eichler

Minister of Economic Development and Training


________________________


Graham Flack

Chairperson, Canada Employment

Insurance Commission

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