Omnibus Amending Agreement for Canada - Manitoba Labour Market Agreement and Canada-Manitoba Agreement on Labour Market Development

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.

Between

The government of Canada (herein referred to as “Canada”), as represented by the Minister of Human Resources and Skills Development and the Canada Employment Insurance Commission

And

The government of Manitoba (herein referred to as “Manitoba”), as represented by the Minister of Competitiveness, Training and Trade

Whereas Canada, as represented by the Minister of Human Resources and Skills Development, and Manitoba entered into a Labour Market Agreement (the “LMA”) on April 11, 2008 pursuant to which Canada agreed to provide funding to Manitoba towards the costs of programs that enhance the labour market participation of the unemployed who do not qualify for assistance under programs supported under the Employment Insurance Act and of employed individuals who are low skilled;

Whereas Canada, as represented by the Canada Employment Insurance Commission and the Minister of Human Resources and Skills Development, and Manitoba entered into a Labour Market Development Agreement (the “LMDA”) on April 17, 1997 pursuant to which Canada and Manitoba agreed to certain arrangements relating to the assumption by Manitoba of an expanded role in the design and delivery of labour market development programs and services in Manitoba with financial assistance provided by Canada under section 63 of the Employment Insurance Act;

Whereas, in Budget 2009, Canada announced various measures to address the economic downturn including:

Whereas for Manitoba to access the additional funding referred to in paragraphs (a) and (b) of the preceding recital, it is necessary for the parties to amend the LMA and the LMDA , respectively, to set out the terms and conditions upon which such additional funding is to be provided; 

Whereas the parties also wish to amend the termination provisions of the LMA;

Whereas Manitoba acknowledges the importance of ensuring that the public is informed of the federal government's financial contributions to Manitoba’s programs under both the LMA and the LMDA, including funding from the new investments announced in Canada's Economic Action Plan, and, therefore, reaffirms its commitment to federal visibility under the LMA and LMDA, including its commitments relating to public acknowledgement of federal funding for its programs and cooperation in public announcements and ceremonies;

Now, therefore, Canada and Manitoba agree as follows:

  1. the LMA is amended in accordance with Schedule 1 to this Omnibus Amending Agreement.
  2. the LMDA is amended in accordance with Schedule 2 to this Omnibus Amending Agreement.
  3. Schedule 1 to this Omnibus Amending Agreement shall be read together with the LMA as if its provisions were contained in the LMA.
  4. schedule 2 to this Omnibus Amending Agreement shall be read together with the LMDA as if its provisions were contained in the LMDA. The parties agree that nothing in Schedule 2 to this Omnibus Amending Agreement shall affect the way in which Canada allocates the current regular level of Employment Insurance funding of $1.95 billion per year to determine the maximum annual amount of the contributions payable to Manitoba pursuant to section 13 of the LMDA.  The parties acknowledge that the current methodology referred to in section 13 for allocating among provinces or territories the current $1.95 B is the allocation methodology set out 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.
  5. except to the extent that the provisions of the LMA and LMDA are modified by this Omnibus Amending Agreement, the LMA and the LMDA shall remain the same and in full force and effect.  
  6. this Omnibus Amending Agreement shall come into effect when signed by both parties.

Signed on behalf of Canada by the Minister of Human Resources and Skills Development and the Canada Employment Insurance Commission,

this 8th day of May, 2009.

______________

Witness

______________

The Honourable Vic Toews, President of the Treasury Board

______________

Witness

______________

Janice Charette, Chairperson, Canada Employment Insurance Commission

Signed on behalf of Manitoba by the Minister of Competitiveness, Training and Trade this 8th day of May, 2009.

______________

Witness

______________

Andrew Swan, Minister of Competitiveness Training and Trade

Schedule 1

Amendments to the Canada-Manitoba Labour Market Agreement

1. The Canada-Manitoba Labour Market Agreement (LMA) is amended by adding immediately before the heading entitled “Interpretation” the following:

“Part 1 – Labour Market Programs for unemployed and low skilled workers”

2. Section 1 of the LMA is amended by

  • (a) replacing the word “Agreement” in line 1 with “Part and Part 3”
  • (b) in the definition “eligible costs”, replacing the word “Agreement” in line 3 with “Part”

3. Section 2 of the LMA is amended by

  • (a) replacing the word “Agreement” in line 1 with the word “Part”
  • (b) in paragraph (a), replacing the word “Agreement” in line 2 with “Part”
  • (c) in paragraph (c), replacing the word “Agreement” in line 2 with “Part”
  • (d) in paragraph (d), replacing the word “Agreement” in lines 2 and 4 with “Part”
  • (e) in paragraph (e), adding the words “under this Part” following “Manitoba” in line 2
  • (f) in paragraph (f), adding the words “provided under this Part” following “funding”

4. Section 4 of the LMA is amended by replacing the word “Agreement” in line 1 with “Part”.

5. Section 5 of the LMA is amended by replacing the word “Agreement” in line 1 with “Part”.

6. Section 10 of the LMA is amended by replacing the word “individuals” in line 2 with “eligible beneficiaries”.

7. Section 11 of the LMA is amended by replacing the word “Agreement” in line 1 with “Part”.

8. Section 13 of the LMA is amended by replacing the word “Agreement” in line 3 with “Part”.

9. Section 16 of the LMA is amended by

  • (a) in subsection (1), replacing the word “Agreement” in line 1 with “Part and Part 3”
  • (b) in subsection (3), adding the words “under this Part” in line 4 following “Manitoba”
  • (c) in subsection (4), adding the words “under this Part” in line 3 following “Manitoba”, in line 7 following “contribution”, and in the last line following “Manitoba”
  • (d) in subsection (5), deleting the words “of this Agreement” in the second last line.

10. Section 17 of the LMA is amended by

  • (a) in subsection (1), adding the words “under this Part” after “contributions” in line 1
  • (b) in subsection (2), replacing the word “Agreement” in line 3 with “Part”

11. Section 18 of the LMA is amended by replacing the word “Agreement” in line 1 with “Part”.

12. Section 20 of the LMA is amended by adding the words “under this Part” in line 4 following “contribution”.

13. Section 21 of the LMA is amended by

  • (a) in subsection (1), replacing the word “Agreement” in line 2 with “Part”
  • (b) in subsection (2), replacing the word “Agreement” in line 5 with “Part”

14. Section 22 of the LMA is amended by replacing the words “the Agreement” in line 2 with “this Part”.

15. Section 23 of the LMA is amended by adding the words “for the funding provided under this Part” after “framework” in line 1.

16. Section 24 of the LMA is amended by

  • (a) in subsection (1), replacing the word “Agreement” in lines 1 and 2 with “Part”
  • (b) in paragraph (2)(b), adding the words “for eligible programs funded under this Part” following “priorities” in line 2
  • (c) in paragraph (2)(c), adding the words ”in the fiscal year which is funded under this Part” following “programming” in line 1
  • (d) in paragraph (2)(d), replacing the word “Agreement” in line 3 with “Part”

17. Section 25 of the LMA is amended by

  • (a) in subsection (1), replacing the word “Agreement” in line 3 with “Part”
  • (b) in paragraph 1(b), adding the word “total” before “program”

18. Subsection 26(1) of the LMA is amended by

  • (a) adding the words “funded under this Part” following the word “programs” in line 1
  • (b) adding the words “funded under this Part in each fiscal year” following “interventions” in the last line

19. Section 27 of the LMA is amended by

  • (a) in subsection (1), replacing the word “Agreement” in line 2 with “Part”
  • (b) in subsection (2), replacing the word “Agreement” in line 5 with “Part”

20. Section 28 of the LMA is amended by

  • (a) in subsection (1), replacing the word “Agreement” in line 2 with “Part”
  • (b) in subsection (2), replacing the word “Agreement” in lines 5, 6 and 7 with “Part”

21. Section 29 of the LMA is amended by

  • (a) adding the words “Part 1 of” before “the Agreement” in line 2
  • (b) adding the words “Part 1 of” before “this Agreement” in both occurrences in lines 3 and 4

22. The LMA is further amended by adding after section 29 the following Part:

“ Part 2 – Strategic training and transition fund”

Interpretation

29.1 In this Part, unless the context otherwise requires:

“eligible beneficiaries” means unemployed and employed individuals described in section 29.4

“eligible programs” means labour market programs and services provided by Manitoba described in section 29.3

“eligible costs” means the program assistance costs and program administration costs incurred by Manitoba during the transitional period in providing assistance to eligible beneficiaries under its eligible programs and in implementing this Part

“fiscal year” has the same meaning as in section 1 of this Agreement

“program administration costs” means the direct and indirect internal operating costs incurred by Manitoba in developing and administering the eligible programs

“program assistance costs” means

  • (a) the costs of financial assistance provided by Manitoba under its eligible programs directly to, or on behalf of, eligible beneficiaries;
  • (b) the costs of financial assistance or other payments provided by Manitoba under its eligible programs to employers, third party service providers or delivery agents as reimbursement for direct and indirect costs incurred by them, or as payment for services rendered by them, in relation to the provision of assistance to eligible beneficiaries under its eligible programs;
  • (c) payments to public or private training institutions for curriculum development costs that are directly related to the delivery of eligible programs or training of eligible beneficiaries.

    but does not mean

  • (d) payments of basic income support to an eligible beneficiary unless the payments are linked to active participation in an eligible program
  • (e) payments to public or private training institutions for training infrastructure costs “transitional period” means the period beginning April 1, 2009 and ending March 31, 2011

Purpose

29.2 The purpose of this Part of this Agreement is to set out:

  • (a) the labour market programs of Manitoba that are eligible for funding under this Part, the eligible beneficiaries of those programs, and the eligible costs of those programs for which the new investments provided by Canada to Manitoba under this Part may be used;
  • (b) the amount of funding to be provided by Canada to Manitoba under this Part each fiscal year during the transitional period;
  • (c) the accountability framework for funding provided under this Part.

Eligible programs

29.3 During the transitional period, Manitoba agrees to provide labour market programs to

  • (a) enhance the labour market participation of eligible beneficiaries by assisting them to prepare for entry to, or return to employment or to otherwise obtain or keep employment or maintain or improve skills for employment;
  • (b) support employers and communities in dealing with labour force adjustments involving eligible beneficiaries.

These programs may include, but are not limited to, programs that support the following activities:

  • (i) helping eligible beneficiaries to start their own businesses or become self-employed
  • (ii) supporting projects that create employment for eligible beneficiaries
  • (iii) supporting skills upgrading and training for eligible beneficiaries
  • (iv) providing mobility and relocation assistance for eligible beneficiaries
  • (v) supporting employers and communities in developing and implementing plans or strategies for dealing with labour force adjustments

Eligible beneficiaries

29.4 Manitoba agrees to use the funding provided under this Part to provide assistance under its eligible programs to:

  • (a) unemployed individuals affected by the economic downturn in Canada;

    and

  • (b) employed individuals in sectors, occupations or communities affected by the economic downturn, including, but not limited to:
    • (i) sectors under pressure due to declining demand or other factors (for example the automotive and forestry sectors)
    • (ii) occupations in declining industries (for example fisheries)
    • (iii) communities dependant on a single employer or sector (for example mining communities)

Financial provisions

29.5 Subject to the terms and conditions of this Part and Part 3 of this Agreement, in each fiscal year during the transitional period, Canada agrees to make a contribution to Manitoba in respect of the eligible costs incurred in that fiscal year of an amount not exceeding the amount, rounded to the nearest thousand, determined by the formula

C x (A/B)

where

C is $245 million

A is the average number of unemployed persons in Manitoba calculated as follows:

  • (a) for fiscal year 2009 to 2010, the average of the number of unemployed persons in Manitoba in each month during the months of August 2008 to, and including, January 2009 as determined by Statistics Canada Labour Force Survey data for those months;
  • (b) for fiscal year 2010 to 2011, the average of the number of unemployed persons in Manitoba in each month during the months of August 2009 to, and including, January 2010, as determined by Statistics Canada Labour Force Survey data for those months;

B is the average number of unemployed persons in Canada calculated as follows:

  • (a) for fiscal year 2009 to 2010, the average of the number of unemployed persons in Canada in each month during the months of August 2008 to, and including, January 2009, as determined by Statistics Canada Labour Force Survey data for those months;
  • (b) for fiscal year 2010 to 2011, the average of the number of unemployed persons in Canada in each month during the months of August 2009 to, and including, January 2010, as determined by Statistics Canada Labour Force Survey data for those months.

29.6 (1) Subject to subsections (2) and (3), Manitoba agrees and undertakes that the funding provided by Canada under this Part shall not displace normal provincial funding levels for existing labour market programs referred to in section 29.3 but that such funding shall be used to support incremental labour market program activities for eligible beneficiaries.

(2) Canada and Manitoba agree that the undertaking in subsection (1) is not to be construed as preventing Manitoba from applying government-wide measures to control expenditures. Manitoba agrees that in the event of an expenditure control exercise, Manitoba would not disproportionately target programs funded under this Part.

(3) The undertaking by Manitoba under subsection (1) is also subject to the appropriation of sufficient funds by the Manitoba legislature each fiscal year to maintain normal provincial funding levels.

(4) By no later than October 1 following the end of each fiscal year during the transitional period, Manitoba agrees to provide Canada with a report by the Auditor General of Manitoba or an independent auditor, confirming that Manitoba has complied, in all material respects, with the requirements in subsections (1) and (2).

29.7 Canada’s contributions under this Part shall be used solely for defraying the eligible costs. Manitoba shall be responsible for expenditures on eligible costs incurred each fiscal year during the transitional period that are in excess of the amount of Canada’s contribution in that year under this Part.

29.8 Any payment by Canada under this Part is subject to there being an appropriation of funds by the Parliament of Canada for the fiscal year in which the payment is to be made.

29.9 Canada will make payments of its annual contribution under this Part in respect of the eligible costs in each fiscal year during the transitional period in two equal instalments. The first instalment will be paid on or about April 15 of each fiscal year and the second on or about September 15 of each fiscal year. The amount of each instalment will be 50% of the maximum amount of the contribution payable in that fiscal year as determined under section 29.5 of this Agreement.

29.10 In the event that the amount of the contribution made to Manitoba under this Part for a fiscal year during the transitional period exceeds the amount to which Manitoba is entitled for that fiscal year, the amount of such excess is a debt owing to Canada and shall be repaid to Canada forthwith upon receipt of written notice to repay.

29.11 Manitoba acknowledges that the amount of any unutilized funding provided to Manitoba under this Part at the end of a fiscal year that must be repaid under section 29.10 will not be reprofiled by Canada to increase the maximum contribution payable to Manitoba in the following fiscal year.

Service delivery arrangements

29.12 Sections 14 and 15 of this Agreement apply to the development and delivery of eligible programs funded under this Part.

Accountability framework

29.13 (1) Manitoba agrees to include in its annual plans referred to in subsection 24(2) of this Agreement for each fiscal year during the transitional period

  • (a) a description of the eligible beneficiaries who are to be targeted as priorities for eligible programs funded under this Part in the coming fiscal year
  • (b) a description of the priority areas for programming in the fiscal year which is funded under this Part and their intended objectives
  • (c) a brief description of the eligible programs, planned activities and projected expenditures for the coming fiscal year by priority area that are attributable to funding provided under this Part

(2) In identifying the eligible beneficiaries who will be targeted as priorities for eligible programs funded under this Part, Manitoba agrees to give priority to eligible beneficiaries who are most in need, such as

  • (a) long-tenured workers in industries, sectors and regions who face structural adjustment and will likely need to change occupations or sectors;
  • (b) workers who have been laid-off or are at-risk of lay-off but whose skills remain in demand, if not in the short-term over the medium term, and workers whose skill set is closely related to the skills required in growing sectors or for emerging opportunities.

29.14 Manitoba agrees to include in its annual audited financial statements provided under section 25 of this Agreement for each fiscal year during the transitional period, a statement of revenues received from Canada under this Part during the fiscal year and the amount of eligible costs incurred by Manitoba in relation to the eligible programs funded under this Part. The statement shall also provide a breakdown of

  • (a) the program assistance costs incurred in respect of each eligible program funded under this Part during the fiscal year
  • (b) the total program administration costs incurred for eligible programs funded under this Part during the fiscal year

29.15 (1) In order to measure performance of the eligible programs funded under this Part, Manitoba agrees to

  • (a) collect and compile, in accordance with Annex 2, the performance indicator information set out in Annex 2 about the eligible beneficiaries, the type of interventions provided under the eligible programs and the outcomes of the interventions funded under this Part in each fiscal year during the transitional period;
  • (b) provide the information to Canada, in the format and manner agreed to jointly by Canada and Manitoba, no later than 5 months following the end of each fiscal year to which the information relates. For greater certainty, no personal information will be shared by Manitoba with Canada.

(2) Where there are activities supported under an eligible program during a fiscal year during the transitional period under this Part that do not involve providing assistance directly to eligible beneficiaries, Manitoba, agrees to

  • (a) prepare a narrative report describing the activities supported, the level of funding provided in support of those activities and the expected outcomes of the activities;
  • (b) provide a copy of the report to Canada no later than 5 months following the end of each fiscal year during the transitional period to which the report relates.

29.16 No later than 2 months following the end of each quarter (for example each 3 month period) during the transitional period, Manitoba agrees to provide to Canada a report on the estimated number of eligible beneficiaries served and the activities funded under this Part during the quarter. For greater certainty, the first report is due by September 1, 2009. The second is due by December 1, 2009. The third is due by March 1, 2010 and the fourth is due by June 1, 2010. Similarly, the reports for fiscal year 2010 to 2011 are due by September 1, 2010, December 1, 2010, March 1, 2011 and June 1, 2011.

29.17 Manitoba agrees to include in its annual report to the people of Manitoba referred to in section 27 of this Agreement for each fiscal year during the transitional period the results attributable to the funding provided by Canada under this Part. The results shall be based on the performance indicators referred to in section 29.15.

29.18 Manitoba agrees to include in the evaluation referred to in section 28 of this Agreement an evaluation of the impact and effectiveness of the eligible programs and the funding provided in relation thereto under this Part of this Agreement.”

23. The LMA is further amended by adding immediately after section 29.18 and before section 30 the following heading:

“Part 3 – General provisions”   

24. Paragraph 30(4)(d) of the LMA is amended by replacing the words “of its eligible programs” in lines 1 and 2 with “under this Agreement”.

25. Section 31 of the LMA is amended by replacing the words “to Manitoba’s eligible programs” in line 2 with “under this Agreement”.

26. Section 33 of the LMA is amended by

  • (a) adding a comma after “25” in line 2
  • (b) deleting the word “and” after “25” and adding “and 29.10” after “27”

27. Section 35 of the LMA is replaced by the following:

“35. On or after March 31, 2011, either party may terminate this Agreement at any time without cause by giving 12 months notice of intention to terminate.”

28. Section 36 of the LMA is amended by adding the following sentence at the end of the section:

“In this section, “eligible costs” means “eligible costs” as defined in both Parts 1 and 2.”

29. Annex 1 to the LMA is amended by, on page 3 of the Annex, under the heading “Canada-Manitoba Labour Market Agreement priorities and objectives”, adding “in Part 1” before “of this Agreement” in line 1 and before “of the Agreement” in line 2.

30. Annex 2 to the LMA is amended by adding immediately after section 5, the following section:

“6. In this Annex, “eligible beneficiaries” means eligible beneficiaries under both Parts 1 and 2 of the Agreement” and “eligible programs”, “programs” and “programs and services” means “eligible programs funded under both Parts 1 and 2 of the Agreement.”

31. Annex 3 to the LMA is amended by

  • (a) in section 3, adding the word “eligible” before the word “programs” in lines 1 and 3, and replacing the word “clients” with “eligible beneficiaries”
  • (b) in section 5, replacing “clients” with eligible beneficiaries” in line 1
  • (c) adding immediately after section 6, the following section:

“7. In this Annex, “eligible programs” means eligible programs funded under both Parts 1 and 2 of the Agreement.”

Schedule 2 Amendments to the Canada-Manitoba Labour Market Development Agreement

1. The Canada - Manitoba Labour Market Development Agreement (LMDA) is amended by adding after section 13 the following section:

“13A. Notwithstanding anything in section 13, in each of fiscal years 2009 to 2010 and 2010 to 2011, Canada agrees to increase the maximum contribution payable under section 13 towards the costs of Manitoba’s provincial benefits and measures by an amount not exceeding the amount, rounded to the nearest thousand, determined by the formula

C x (A/B)

where

C is $500 million

A is the average number of unemployed persons in Manitoba calculated as follows:

  • (a) for fiscal year 2009 to 2010, the average of the number of unemployed persons in Manitoba in each month during the months of August 2008 to, and including January 2009 as determined by Statistics Canada Labour Force Survey data for those months;
  • (b) for fiscal year 2010 to 2011, the average of the number of unemployed persons in Manitoba in each month during the months of August 2009 to, and including January 2010, as determined by Statistics Canada Labour Force Survey data for those months;

B is the average number of unemployed persons in Canada calculated as follows:

  • (a) for fiscal year 2009 to 2010, the average of the number of unemployed persons in Canada in each month during the months of August 2008 to, and including, January 2009, as determined by Statistics Canada Labour Force Survey data for those months;
  • (b) for fiscal year 2010 to 2011, the average of the number of unemployed persons in Canada in each month during the months of August 2009 to, and including, January 2010, as determined by Statistics Canada Labour Force Survey data for those months.

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