Canada – New Brunswick Labour Market Development Agreement

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Recitals

Annexes

Between

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

And

The Government of New Brunswick (herein referred to as "New Brunswick"), as represented by the Premier of New Brunswick, the Minister of Advanced Education and Labour and the Minister of Human Resources Development New Brunswick

Recitals

Whereas Canada and New Brunswick 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 New Brunswick;

Whereas Canada and New Brunswick 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 New Brunswick to prepare for, find and keep a job;

Whereas Canada and New Brunswick recognize that each government has certain responsibilities in the area of labour market development;

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

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

Whereas, in recognition of the above, Canada's Minister of Human Resources Development presented to all provinces and territories on May 30, 1996, a proposal on labour market development that would offer New Brunswick the opportunity to expand its role in the design and delivery of labour market programs with financial support provided under Part II of Canada's Employment Insurance Act and to assume responsibility for carrying out certain functions of the National Employment Service in New Brunswick;

Whereas New Brunswick has accepted the proposal and desires to enter into an agreement with Canada with respect to the foregoing;

Whereas, with respect to New Brunswick's desire to expand its role in the design and the delivery of labour market development programs in New Brunswick, 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 New Brunswick to provide for the payment of contributions towards a portion of

  • a) the costs of benefits and measures (ie. programs) provided by New Brunswick 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 New Brunswick incurs in providing those benefits and measures;

Whereas the benefits and measures described in this Agreement that are to be provided by New Brunswick are similar to employment benefits and support measures under Part II of the Employment Insurance Act and are consistent with the purpose and guidelines of Part II of that Act;

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

Whereas with respect to the desire of New Brunswick 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 New Brunswick 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 Canada and New Brunswick have agreed to the following principles governing the design, delivery and implementation of labour market development programs and services to assist the unemployed workers of New Brunswick that are to be provided by New Brunswick with support from Canada under this Agreement:

  • a) programs and services should be designed to reduce dependency on income support by helping individuals obtain or keep employment;
  • b) co-operation and partnership with other governments, employers, community based organizations and other interested organizations in the planning, implementation and evaluation are key to the success of the programs and services;
  • c) significant decisions about implementation of the programs and services should be made at the local level;
  • d) persons receiving assistance under the programs and services need to be committed to:
    1. achieving the goals of the assistance,
    2. taking primary responsibility for identifying their employment needs and locating services necessary to allow them to meet these needs, and
    3. if appropriate, sharing the cost of the assistance;
  • e) programs and services should be implemented within a framework for evaluating their success in assisting persons to obtain and keep employment;
  • f) decisions on access to assistance under the programs and services should consider both client interests and labour market requirements (local, provincial, and national) and clients should be involved both in decisions made with respect to appropriate interventions and in the management of their case plans;
  • g) innovative means should be used to ensure that clients have reasonable access to quality, effective and efficient programs and services;
  • h) equity principles with regard to women, aboriginals, visible minorities and persons with disabilities need to be respected in the design and delivery of the programs and services; and
  • i) clients have a right to receive assistance under the programs and services in the official language of their choice;

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

1.0 Interpretation

1.1 The terms “employment benefit” and “support measure” are terms used in the Employment Insurance Act in reference to specific types of employment programs established by the Commission under sections 59 and 60(4), respectively, of the Employment Insurance Act. The terms “benefit” and “measure” are used in section 63 of the Act in reference to the funding by Canada of similar provincial programs. The term “program” is more commonly used and understood by the parties than the term “benefit” or “measure”, however. Accordingly, in this Agreement, the terms “benefit” or “measure” and “program” have been used interchangeably, as appropriate to the context of the provision of the Agreement in which they appear.

1.2 In this Agreement, unless the context requires otherwise,

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

“administration costs” means the costs of administration incurred by New Brunswick in providing the provincial benefits and measures;

“Annual Annex” means the Annual Annex referred to in section 16;

“Commission” means the Canada Employment Insurance Commission;

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

  • a) the costs of financial assistance provided under the benefits by New Brunswick directly to EI clients, and
  • b) the costs of financial assistance or other payments provided by New Brunswick 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 EI clients.

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

“EI client” means an unemployed person who, when requesting assistance under a provincial benefit or measure,

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

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

“HRDC” means Canada's Department of Human Resources Development;

“Implementation Committee” means the committee established under section 21;

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

“provincial benefit” means a labour market development program set out in Annex 1, as amended from time to time, that is provided by New Brunswick under section 3 and that is designed to enable EI clients to obtain employment;

“provincial measure” means a labour market development program set out in Annex 1, as amended from time to time, that is provided by New Brunswick under section 3 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 innovation projects to identify better ways of helping persons prepare for, return to, or keep employment and be productive participants in the labour force;

“Reasonable Job Offer” means an offer of employment which meets the requirements of Part VII of Canada's Work Force Adjustment Directive dated July 16,1996, a copy of which has been provided to New Brunswick by Canada;

“Transitional Period” means the period between the date of the signing of this Agreement and the later of:

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

2.0 Purpose and scope of agreement

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

2.2 It is understood that Canada will retain responsibility for the delivery of insurance benefits under Part I of the Employment Insurance Act and for the aspects of labour market development reflective of national interests such as but not limited to activities in support of interprovincial labour mobility, the promotion and support of national sectoral councils, the operation of national labour market information and national labour exchange systems, and the provision of support for labour market research and innovative projects designed to test new approaches to improving the functioning of the labour market in Canada.

2.3 To avoid overlap and duplication and promote cooperation in the conduct of their respective activities and initiatives in support of labour market research and innovative projects, Canada and New Brunswick further agree to keep each other regularly informed of their proposed activities and initiatives in this area.

3.0 Provincial benefits and measures

3.1 Beginning April 1,1997, or such later time as may be agreed to by the parties, New Brunswick will implement in New Brunswick the benefits and measures described in Annex 1 to this Agreement entitled "Provincial Benefits and Measures".

3.2 It is agreed that New Brunswick will have the flexibility to make ongoing modifications to the design of their provincial benefits and measures in order to ensure their responsiveness to client needs, changing labour market conditions and evaluation findings, provided they remain similar to the employment benefits and support measures established by the Commission under Part II of the Employment Insurance Act and consistent with the purpose and guidelines of Part II. Where any question arises as to whether a proposed modification to a provincial benefit or measure affects its similarity or consistency with the guidelines and purpose of Part II, it shall be referred to a jointly agreed upon committee/mechanism for a determination. Modifications will be set out in an amendment to Annex 1.

3.3 New Brunswick may design and implement new benefits and measures and use contribution funds provided to it under this Agreement to support their costs as long as they are similar to the employment benefits and measures under Part II and consistent with the purpose and guidelines of Part II. Where any question arises as to whether a proposed new benefit or measure is similar or consistent with the guidelines and purpose of Part II, the parties agree to refer the question to the jointly agreed upon committee/mechanism for a determination. The addition of any new benefit or measure shall be set out in an amendment to Annex 1.

3.4 Where New Brunswick desires to implement a new provincial benefit or measure and use contribution funds provided to it under this Agreement to support the costs of providing it, and the jointly agreed upon committee/mechanism determines that it is not similar to any existing employment benefit and support measure established by the Commission, the jointly agreed committee/mechanism will determine whether to recommend to the Commission that it add an appropriate new employment benefit or support measure and thereby enable the New Brunswick to implement its proposed benefit or measure. The addition of any new benefit or measure shall be set out in an amendment to Annex 1.

3.5 For each fiscal year during the period of this Agreement, New Brunswick agrees to provide Canada with a breakdown of the amounts it intends to allocate for expenditures under each provincial benefit and measure. It is understood that these amounts are only projections and are provided to Canada for information only. New Brunswick may modify the allocations during the fiscal year. For fiscal year 1997/98, the amounts that New Brunswick intends to allocate for expenditures under each of its provincial benefits and measures are set out in Annex 2 to this Agreement entitled "Allocations for Provincial Benefits and Measures for Fiscal Year 1997/98". For each subsequent fiscal year, the allocations will be set out in the Annual Annex for that year.

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

3.7 New Brunswick agrees to give priority of access to assistance under its provincial benefits and measures to active EI claimants.

3.8 To facilitate the co-ordination of the provision of assistance to active EI claimants by New Brunswick 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 New Brunswick's Minister of Advanced Education and Labour to exercise the Commission's power to designate authorities in New Brunswick who may, for the purposes of section 25 of Canada's Employment Insurance Act, refer active EI claimants to:

  • a) courses or programs of instruction or training which the claimant is attending at his or her own expense, or
  • b) employment activities under provincial benefits that are similar to Canada's Job Creation Partnerships Employment Benefit or Self-Employment Benefit.

3.9 New Brunswick shall give sufficient 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 the necessary administrative arrangements with the referral authority to ensure timely and proper payment of insurance benefits to the referred active EI claimants under section 25 of the Act.

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

4.1 New Brunswick, in support of the Commission's responsibility to maintain a national employment service, is hereby authorized to carry out on behalf of the Commission those functions of the National Employment Service (NES) described in Annex 3 to this Agreement entitled "National Employment Service Functions".

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

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

5.0 Service to clients

5.1 The parties agree that in the administration of the provincial benefits and measures and in carrying out the functions of the National Employment Service, New Brunswick will be guided by the following principles on service to clients and reflected in the undertakings outlined in Annex 4 (Delivery Arrangements):

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

5.2 New Brunswick undertakes to provide access to assistance under its provincial benefits and measures and in relation to its National Employment Service functions in either official language where there is a demand for assistance in that language.

6.0 Delivery arrangements

6.1 The delivery of the provincial benefits and measures will be administered by New Brunswick through its Department of Advanced Education and Labour and Department of Human Resources Development.

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

6.3 To give effect to the foregoing, the parties agree to jointly develop an implementation schedule for the establishment of Human Resource Service Centres (HRSCs). Specific undertakings and considerations for decision making regarding selection of actual sites will be jointly developed and agreed to by the Implementation Committee and will be appropriately reflected in the Implementation Framework referred to in section 21.2.

6.4 The model for service delivery arrangements at collocated facilities as referred to in Section 6.2 is broadly described in Annex 4 - Delivery Arrangements.

7.0 Expected results of provincial benefits and measures

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

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

7.2 The results will be measured and reported by New Brunswick on the basis of the methodology set out in Annex 5 attached to this Agreement entitled "Accountability and Results".

7.3 Canada and New Brunswick agree to jointly establish in advance of each fiscal year during the period of the agreement mutually agreed results targets for the coming fiscal year using the results criteria referred to in section 7.1.

7.4 Canada and New Brunswick agree that for fiscal year 1997/98, the results targets shall be those set out in Annex 2. It is recognized that though these targets are relatively imprecise, experience gained will allow for the establishment of firmer, more meaningful targets by 1999-2000. The results targets for each subsequent fiscal year will be agreed to and set out in the Annual Annex for that fiscal year.

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

8.0 Evaluation

8.1 Canada and New Brunswick recognize the importance of evaluating the results of the provincial benefits and measures supported under this Agreement, in the context of Annex 5 (Accountability and Results) and in consideration of the recitals introducing this Agreement.

8.2 Accordingly, they agree that immediately after the commencement of the implementation of provincial benefits and measures, Canada and New Brunswick will jointly develop an evaluation framework. This framework will guide the development of evaluation processes adhering to recognized evaluation practices, for short, medium and long-term measurement of results; the carrying out of such evaluation processes; and the delineation of responsibilities of each party related to that framework. This framework will provide for an initial phase to be conducted in the first year of implementation of the provincial benefits and measures, followed by a second phase in the third year of implementation. Subsequent evaluations will be conducted regularly, on a three-to-five year basis. Such evaluations will determine, at a minimum, the impacts and effects of the provincial benefits and measures, including: their impacts and effects on sustainability of employment; change in dependency on income transfers (employment insurance and social assistance); impact on communities, and; change in tax revenues.

8.3 Recognizing that both parties hold particular interests and strategies for evaluation; within this joint framework and consistent with the provisions identified above, Canada and New Brunswick may also choose to conduct independent evaluations. In support of those interests, Canada and New Brunswick agree to make available to each other information required for evaluation purposes and any findings produced by these evaluations. Where the parties choose to conduct evaluations of a more independent nature, they agree to share information on their plans so as to minimize overlap and duplication.

9.0 Information and data sharing

9.1 For the purposes of implementing this Agreement, Canada and New Brunswick agree to exchange information in accordance with the arrangements specified in Annex 6 to this Agreement entitled "Information and Data Sharing Arrangements".

10.0 Monitoring and assessment

10.1 New Brunswick recognizes that 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 annually from 1997 to 2001. The first report is due no later than December 31, 1997 and it must subsequently be laid before Parliament. New Brunswick recognizes that Canada will need to use the information provided by New Brunswick under section 9 (Information and Data Sharing). New Brunswick agrees to co-operate with Canada in the preparation of this information.

11.0 EI program integrity

11.1 As Canada may be providing insurance benefits under Part I of the Employment Insurance Act to active EI claimants while they are participating under the provincial benefits and measures, Canada and New Brunswick 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 New Brunswick agrees to make an irrevocable offer of indeterminate employment to Indeterminate Employees of Canada representing not more than 170 full time equivalents (FTEs), including such employees on an authorized leave of absence, who are:

  • a) employed at HRDC immediately prior to the transfer date,
  • b) affected by New Brunswick's decision to expand its role in the design and delivery of labour market programs through the implementation of the provincial benefits and measures, and assume responsibility for certain functions of the National Employment Service,

12.2 New Brunswick undertakes that its offer will constitute a Reasonable Job Offer.

12.3 Canada and New Brunswick have already agreed in principle to a number of elements required to ensure that the offer made to Employees is a Reasonable Job Offer. These elements are described in Annex 7, Agreement in Principle on certain issues regarding the transfer of employees from Canada to New Brunswick, and will be incorporated in the Employee Transfer Agreement referred to in section 12.7.

12.4 New Brunswick undertakes that the following further elements will be set out in an Employee Transfer Proposal. The proposal of the province with respect to these further elements will also meet the requirements of a Reasonable Job Offer:

Pension Plan Arrangements including an agreement in principle with respect to a Pension Transfer Agreement

Seniority

12.5 The Employee Transfer Proposal will be submitted to Canada within two (2) months from the date of the signing of this Agreement or within such later period as may be agreed to by the parties. The proposal shall be prepared in accordance with the relevant sections of the Employee Transfer Proposal Guidelines, to be provided to New Brunswick and shall address each and every issue listed in the Guidelines relating to the issues enumerated in section 12.4 above.

12.6 Upon preparation of the Employee Transfer Proposal, it shall be referred to the Implementation Committee for discussion and negotiation between the parties regarding its acceptability by Canada.

12.7 Upon acceptance by Canada of the Employee Transfer Proposal, the issues discussed in the Employee Transfer Proposal as well as the contents of the Agreement in Principle attached as Annex 7 to this agreement will be embodied in an Employee Transfer Agreement to be entered into by the parties. It is understood that further supplementary agreements may also be required under other federal legislation such as the Public Service Superannuation Act.

12.8 In dealing with the transfer of human resources under this Agreement, Canada and New Brunswick agree to be guided by the following principles:

  • a) human resource decisions will continue to be governed by fairness and transparency and accompanied by open, clear and timely communications with employees and unions;
  • b) New Brunswick is committed to offering employment to all employees of Canada who are either directly involved in the delivery of programs and services for which they are assuming responsibility, or who are providing support to those who directly deliver these activities, assuming that sufficient administrative resources to cover the cost of employing these individuals is provided by Canada. Canada and New Brunswick agree to collaborate in the identification and selection of the individuals who will be transferring from Canada to New Brunswick as a result of the implementation of this Agreement;
  • c) New Brunswick and Canada both recognize the significant human impact which attaches to the movement of staff and commit to collaborating to support employees;
  • d) New Brunswick recognizes that decisions with respect to which employees transfer from Canada to New Brunswick will be considered in relation to the broader context of the needs of both Canada and New Brunswick; and
  • e) both partners re-affirm the need to continue to provide quality services to our clients during the transition period.

12.9 New Brunswick recognizes that the amount of Canada's contributions referred to in section 13.5 of this Agreement towards New Brunswick's administration costs is contingent on an offer of employment being made to the number of employees specified in section 12.1 and on the type of offer made to these employees constituting a Reasonable Job Offer.

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

13.0 Financial arrangements

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

Contribution towards costs of provincial benefits and measures

13.2 In each of fiscal years 1997/98 to 1999/2000, Canada (through the Commission) agrees to make a maximum contribution to New Brunswick towards the costs of provincial benefits and measures incurred by it in those years of an amount to be determined in accordance with the allocation methodology set out in the letter of June 26, 1996 from Canada's Deputy Minister of Human Resources Development to New Brunswick's Deputy Minister of Advanced Education and Labour attached as Annex 8 to this Agreement.

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

  • fiscal year 1997/98: $66,430,000
  • fiscal year 1998/99: $78,131,000
  • fiscal year 1999/2000: $83,503,000

New Brunswick recognizes, however, that given the nature of the allocation methodology, the actual amount of the contribution payable in each fiscal year cannot be ascertained until shortly after January of the immediately preceding fiscal year and may be adjusted to reflect outstanding future year commitments originating from signed agreements entered into by Canada in 1996/97 and previous fiscal years relating to employment programs and services.

13.4 For each fiscal year after fiscal year 1999/2000 during the period of the Agreement, Canada's contribution towards the costs of the provincial benefits and measures will be mutually reviewed annually between the parties. The agreed amount of Canada's contribution towards the costs of the provincial benefits and measures for each such fiscal year will then be specified in the Annual Annex for that fiscal year as referred to in section 3.5. In conducting the annual reviews, Canada undertakes to provide New Brunswick with projected three year allocations on a rolling basis. It is understood that these allocations are merely forecasts or estimates based on current trends and are subject to change.

Contribution towards administration costs

13.5 In addition to the contribution towards the costs of the provincial benefits and measures, Canada (through the Commission) agrees to make a maximum contribution to New Brunswick in each fiscal year during the period of the Agreement towards the administration costs incurred by New Brunswick in that fiscal year. Subject to section 13.7, the maximum amount will be the amount determined in accordance with section 13.6.

13.6 It is understood and agreed that the actual amount of the maximum contribution for administration costs will be dependant upon the number of employees of HRDC who are transferred to New Brunswick under the employee transfer arrangements referred to in section 12 of the Agreement and whether the terms of the offers of employment made by New Brunswick constitute Reasonable Job offers. In this regard, the annual contribution will be equal to total salaries to be offered to employees transferred under the terms of Section 12 of the Agreement plus an amount equal to $3060 for each FTE to be transferred to cover non-salary costs plus an amount equal to 17% of total salaries to cover the cost of employee benefits. The amount to be transferred is subject to a reduction if the terms of the New Brunswick's offer do not constitute a Reasonable Job Offer. The amount of the reduction would reflect the additional employee termination costs to be incurred by Canada as a result of affected employees refusing an offer of transfer from New Brunswick that did not constitute a Reasonable Job Offer. Other factors related to the transfer of administrative resources are outlined in the letter of September 25, 1996 from Canada's Deputy Minister of Human Resources Development to New Brunswick's Deputy Minister of Advanced Education and Labour and attached as Annex 9 to this Agreement.

13.7 Notwithstanding section 13.6, it is understood that the maximum amount of the contribution towards the administration costs of New Brunswick may be increased depending upon the actual financial resources available to Canada after the termination of various property leases which will occur as a result of reduced accommodation requirements for Canada flowing from the transfer of HRDC employees to New Brunswick under the employee transfer arrangements referred to in section 12. The Implementation Committee will be responsible for determining and recommending to the parties the amount of any such increase.

14.0 Payment procedures

14.1 Beginning April 1,1997 or on such later date on which New Brunswick begins implementation of its provincial benefits and measures, Canada will make advance payments of its annual contribution towards the costs of the provincial benefits and measures. The advances will be made on a monthly basis and will be based upon a forecast of monthly cash flow requirements furnished by New Brunswick. New Brunswick 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 New Brunswick will be made in twelve equal monthly instalments based upon an agreed estimate of the administration costs to be incurred by New Brunswick during the fiscal year.

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

15.0 Transfer of assets

15.1 Canada and New Brunswick will establish an inventory of assets that will be transferred to New Brunswick and specified in Annex 10 to this Agreement entitled "Inventory of Assets". The assets to be transferred to New Brunswick will be related to the extent of labour market development responsibilities assumed by New Brunswick and the number of Canada's employees being transferred to New Brunswick.

15.2 The timetable for the transfer of the assets will be established by the Implementation Committee mentioned in section 21.

16.0 Annual annex

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

  • a) the breakdown referred to in section 3.5 of the amounts allocated by New Brunswick for expenditures under its provincial benefits and measures for the coming fiscal year;
  • b) the agreed annual targets for the coming fiscal year for the results-based criteria or indicators referred to in section 7;
  • c) the rolling three year projection referred to in section 13.4 of Canada's annual allocations for contributions towards the costs of the provincial benefits and measures; and
  • d) the actual amount of Canada's contribution towards the costs of the provincial benefits and measures in the coming year, as determined pursuant to section 13.

16.2 The Annual Annex may be signed by designated officials of the parties.

17.0 Financial accountability

17.1 For fiscal year 1997/98 and for each fiscal year thereafter during the period of this Agreement, New Brunswick 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, setting out the amount of costs that New Brunswick has actually incurred in that fiscal year in respect of each provincial benefit and measure, and
  • b) a statement from the Provincial auditor certifying that all payments received from Canada in the fiscal year on account of Canada's contribution to its administration costs were paid in respect of administration costs actually incurred in that fiscal year.

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

18.0 Overpayment/Lapsing funds

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

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

19.0 Public information

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

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

19.3 New Brunswick agrees to acknowledge Canada's contribution in information intended for the public published by New Brunswick regarding the activities supported by Canada under this Agreement, including

  • a) pamphlets, brochures or applications for assistance for the use of EI clients in connection with a provincial benefit or measure,
  • b) reports of departments and agencies of New Brunswick,
  • c) evaluation reports

19.4 New Brunswick agrees that offices of New Brunswick where provincial benefits and measures or services to NES clients are delivered will have appropriate signage indicating that the programs and services provided at the offices are being supported by the Government of Canada under Canada's Employment Insurance Act.

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

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

19.7 The parties agree to 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 Transitional arrangements

20.1 During the Transitional Period, Canada and New Brunswick agree to cooperate with each other in the areas described in Annex 11 to this Agreement, entitled "Transitional Implementation Issues", to ensure a smooth transition resulting from the withdrawal by Canada from certain areas of labour market development program and service delivery in New Brunswick and the assumption of an expanded role in such delivery by New Brunswick in the context of this Agreement.

21.0 Implementation committee

21.1 Canada and New Brunswick agree to establish a joint committee called the Implementation Committee with a role overseeing the implementation of this Agreement, and a lifespan coincident with these responsibilities. The Committee will be responsible for overseeing the transfer of human resources to New Brunswick under Section 12 of this Agreement; the coordination of the co-location arrangements referred to in Section 6, the transfer of assets referred to in Section 15 and other implementation issues outlined in Annex 11.

21.2 The Committee shall develop a Framework for the design and development of Implementation Plans for use at the local and regional levels and shall monitor the transition and implementation activities in accordance with the plans.

21.3 The Committee will be composed of an equal number of representatives of both parties and co-chaired by one appointed by Canada and one by New Brunswick.

21.4 For all meetings, there is a quorum when at least two persons are attending, provided the federal co-chair, or his/her designate, and the provincial co-chair, or his/her designate, are both present.

21.5 The Committee shall meet on an "as required" basis at the request of either party.

22.0 Period of agreement

22.1 This Agreement shall be effective from day of signing and, subject to section 23, will remain in force for an indefinite period.

23.0 Termination

23.1 This Agreement cannot be unilaterally terminated during the first three fiscal years during the period of this Agreement. Canada and New Brunswick agree to review the Agreement after the first three fiscal years to assess if mutually desired 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 New Brunswick agree that they will work together to ensure that services to clients will not be unduly affected or interrupted by the termination.

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 New Brunswick, by the Minister of Advanced Education and Labour.

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

25.0 General

25.1 No member of the House of Commons shall be admitted to any share or part of this Agreement or to any benefit arising therefrom.

25.2 This Agreement, including Annexes 1 to 11, related appendices and the Annual Annexes, comprise the entire agreement entered into by the parties with respect to the subject matter hereof.

25.3 The English and French versions of this agreement are equally authoritative.

25.4 Canada is committed to the principle of equality of treatment in the negotiation of agreements with provinces and territories based on Canada's May 30, 1996 proposal on labour market development. Accordingly, if an agreement is negotiated between Canada and another province or territory and the terms and conditions of that agreement are materially different from the terms and conditions of this Agreement, Canada agrees, if requested to do so by New Brunswick, to amend the Agreement in order to afford similar treatment to New Brunswick.

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 13th day of December, 1996.

______________
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 New Brunswick by the Premier of New Brunswick, the Minister of Advanced Education and Labour and the Minister of Human Resources Development New Brunswick this 13th day of December, 1996.

______________
Witness

______________
Premier of New Brunswick

______________
Witness

______________
Minister,
Advanced Education Labour

______________
Witness

______________
Minister,
Human Resources Development
New Brunswick

Annex 1 – Provincial benefits and measures

1.0 Purpose

The purpose of this Annex to the Canada-New Brunswick Agreement on Labour Market Development is to describe the provincial benefits and measures to be provided by New Brunswick. Section 63 of the Employment Insurance Act requires that contributions from the EI account towards the costs of these programs may only be made where they are similar to those established by the Commission under section 59 of the Act and where they are consistent with the purpose and guidelines set out in Part II of the Act.

The Commission has established employment benefits (programs) to provide

  • wage subsidies to encourage employer hiring of EI clients
  • earnings supplements to encourage EI clients to accept employment
  • financial assistance help EI clients to start businesses or facilitate self-employment
  • financial assistance to create employment opportunities through which EI clients can gain work experience
  • financial assistance to help clients obtain skills for employment.

It has also established support measures to provide financial assistance

  • to organizations for the provision of employment assistance services to the unemployed (unemployed in this context is not limited to those defined as EI clients);
  • to employers, employee or employer associations and communities in developing and implementing strategies for dealing with labour market adjustments and meeting human resource requirements. Assistance under this measure does not extend to assistance for employed persons unless they are facing a loss of employment;
  • for research and innovative projects.

2.0 Similar provincial benefits and measures

The following provides details of the specific similar benefits and measures which New Brunswick will provide.

2.1 Provincial benefits

Partners will be the program which New Brunswick will use as the wage subsidy delivery mechanism. Partners encourages employers to create incremental employment opportunities for insured participants (EI clients), as defined in Section 58 of the Employment Insurance Act. Expected results include: long term employment, reduced dependency on Employment Insurance and Social Assistance, and increased earnings for participants.

Earnings supplement programming will be designed based on the findings from ongoing national pilots. This employment benefit will be targeted towards EI clients who are displaced workers and others with high wage expectations, frequent users of Employment Insurance, and possibly Social Assistance recipients. The expected results will be: employment leading to savings to Employment Insurance and Social Assistance accounts, and increased earnings for participants.

The Entrepreneur program will be the mechanism utilized to amalgamate New Brunswick's Entrepreneur (loan) Program with the self-employment component. New Brunswick will receive and assess a combined Self-Employment and Entrepreneur loan application. Third party agencies will have a role in the provision of services such as entrepreneurship training, and business plan development. The Entrepreneur program will allow participants to access loans (funded through provincial sources), coaching, technical advice, business plan development, training, and financial support. The program will be made available to insured participants, with self-employment for participants and the creation of employment for others as being the expected outcomes.

Job creation partnership activities (program as yet un-named) will be delivered through existing or expanded provincial programs. EI clients engaged in these activities will be provided with work experience in support of obtaining long term employment. The component of the program which contributes towards material and capital costs of projects with non-profit organizations will be delivered in conjunction with other complementary provincial programs.

A loan and grant program in support of EI clients obtaining skills for employment will be administered as a separate stream within the province's existing Student Aid Program.

2.2 Provincial Measures

Labour market partnership activities will be delivered through the New Brunswick's Adjustment Services Initiatives. This program will maximize the adjustment process through the support of research, planning, and other activities by community partners and/or industry to address challenges and opportunities with respect to human resource development. Funding will be made available to community partners who share a commitment and a responsibility for job creation or job protection as well as human resource development and displacement.

As a requirement of the EI Act, supports to individuals under this measure shall not provide assistance to employed persons unless they are facing a loss of employment.

Employment assistance services will be administered through third party contracts with New Brunswick based on needs identified by case management staff. Services provided under this measure will be accessible to all unemployed individuals.

Under Research and Innovations (program as yet unnamed), New Brunswick will conduct activities, experimentation and research to address labour market development, policy and design issues.

2.3 As a consequence of results assessments and program evaluations, New Brunswick agrees to make any necessary adjustments on an ongoing basis, to the design and delivery of its benefits and measures funded from the Employment Insurance account. Canada will be advised of such adjustments on an ongoing basis. Further, these adjustments to provincial programs will be formally documented by amendment to this Annex; and will include overall program descriptions such as: program name, objective, program criteria, financial assistance, eligible participants/sponsors, and expected results.

3.0 Financial support to EI clients

3.1 The Employment Insurance Act does not provide for the extension of insurance benefits beyond the regular benefit period. EI claimants may be authorized to continue to receive their insurance benefits for the normal duration of their claim by virtue of a referral under Section 25 of the EI Act to an EI funded benefit or measure. As stated in section 3.8 of this Agreement, Canada will provide New Brunswick with the authority to make such referrals.

3.2 Financial support to EI claimants in addition to, or beyond the normal duration of their claim, or to non-active claimants, will be paid from the program funds detailed in clause 3.1 of Annex 2, and administered by New Brunswick.

3.3 In the interest of effectiveness and efficiency, New Brunswick agrees that financial support, apart from insurance benefits, to EI clients participating in employment benefits will be negotiated with clients resulting in possible client contributions to unmet incremental costs.

Annex 2 - Allocation for provincial benefits and measures for fiscal year 1997-98

1.0 Purpose

1.1 The purpose of this Annex to the Canada-New Brunswick Agreement on Labour Market Development is to establish the vehicle by which the parties will, at least thirty days prior to the beginning of each fiscal year of this Agreement, agree on the specifics to be contained under each of the headings outlined below.

2.0 Business plan

2.1 (To be completed by New Brunswick)

3.0 Funding

3.1 Clause 13.3 of this Agreement describes Canada's contribution to program costs for fiscal year 1997/98 through 1999/2000.

Canada's contribution to program costs for fiscal year 1997/98 to program costs are____.

Canada's contribution towards program administration costs referred to in clause 13.5 for 1997/98 are ____.

New Brunswick proposes the following allocations for each of the benefits and measures for 1997/98:

Partners _________
Earnings supplements _________
Entrepreneur _________
Job creation _________
Loans/Grants _________

Employment assistance services _________
Adjustment Services Initiatives _________
Research and Innovation Initiatives _________

4.0 Results

4.1 This section will describe the overall targets to which Canada and New Brunswick agree with respect to: the percentage of EI clients participating in employment benefits who will be active EI claimants, EI clients returned to work, and savings to the EI account.

For fiscal year 1997/98, New Brunswick agrees to the following results targets:

65% of EI clients participating in employment benefits will be active EI claimants

7947 EI clients employed

$25.86M Savings to the EI Account

5.0 Reporting

5.1 Year-To-Date quarterly reports, as described in Annex 5 to this Agreement, will be provided by New Brunswick within thirty days of the end of the given quarter, and commencing with the first quarter in 1997/98.

5.2 Clause 10.1 of this Agreement describes Canada's obligations, under Section 3 of the Employment Insurance Act, to report to Parliament with an assessment of the impacts of that legislation on individuals, communities, and the economy. Canada will incorporate information which New Brunswick will provide in accordance with Annex 6, entitled Information and Data Sharing Arrangements; as well as any other information which Canada requires from New Brunswick in support of these annual reports to Parliament.

6.0 Rolling year projections

(For fiscal year 1997-98 refer to clause 13.3 of the Agreement)

Annex 3 - National Employment Service functions

1.0 Purpose

1.1 The purpose of this Annex to the Canada-New Brunswick Agreement on Labour Market Development is to list those functions within the National Employment Service for which New Brunswick will assume responsibility.

2.0 Context

2.1 Canada's proposal to the Provinces "Getting Canadians Back to Work" states the following:

  • iii. A New Approach to Getting Canadians Back To Work

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

3.0 National employment functions to be delivered by New Brunswick

3.1 The following National Employment Services functions will be carried out by New Brunswick on behalf of Canada:

  • employment counselling except that required in support of Canada's responsibilities as outlined in section 2.2 of the Agreement
  • service needs determination except that required in support of Canada's responsibilities as outlined in section 2.2 of the Agreement
  • labour exchange
  • labour market adjustment (for example, Industrial Adjustment Services)
  • management and support to the above listed functions

4.0 Labour exchange

4.1 New Brunswick agrees to maintain local labour exchange in a manner that allows universal access by all clients and to the timely transfer of information to the national labour exchange system as the parties to the agreement agree to be appropriate. New Brunswick also agrees to transfer the information to Canada's automated systems for posting job opportunities (for example, AVRES) on a timely basis.

5.0 Labour market information

5.1 Canada and New Brunswick have a clear interest in accessing labour market information to support client interventions.

5.2 Both parties agree to cooperate in carrying out their respective functions under this agreement so as to allow effective access by each other and their clients to relevant labour market information.

Annex 4 - Delivery arrangements

1.0 Purpose

1.1 The purpose of this Annex to the Canada New Brunswick Agreement on Labour Market Development is to broadly describe the model for service delivery arrangements at co-located facilities, as referred to in Section 6.0 of the Agreement; to identify essential elements relative to implementation and transfer of functions and resources; and, to outline the location and contextual considerations around actual service delivery sites.

2.0 Structural model for service delivery

2.1 Canada and New Brunswick agree that labour market development assistance as well as income support (including Social Assistance and Employment Insurance) will be delivered in co-located facilities. These co-located service delivery facilities will hereinafter be referred to as Canada New Brunswick Human Resource Service Centres (HRSCs).

2.2 The HRSCs will provide labour market programs and services to all New Brunswickers. This will include, among others: employers, the unemployed, Social Assistance Recipients, EI clients and those wishing to improve their employment status.

2.3 Core services provided within HRSCs are as follow:

  1. New Brunswick will deliver the provincial benefits and measures as outlined in Annex 1 and those components of the National Employment Service outlined in Annex 3.
  2. New Brunswick will also deliver its provincially funded income assistance programs and services, employment development programs, labour services and other human resource services as it deems suitable.
  3. Canada will deliver the Employment Insurance program, those components of the National Employment Service for which it is responsible, other labour market development activities consistent with section 2.2 of the Agreement, and other human resource services as it deems suitable.

This identified core set of programs and services is not intended to limit either Canada or New Brunswick in their respective or common decisions regarding other capacities they may pursue in support of their individual or mutual human resource development interests. Canada or New Brunswick may therefore choose to establish:

  1. extensions of programs and services where either or both parties identify requirements not fulfilled within the core of HRSC services
  2. additional or supportive facilities to enhance administrative, processing or related capacities.

Canada and New Brunswick recognize that the core programs and services offered at individual HRSCs may vary in recognition of specific geographical, labour market and other realities throughout the province.

3.0 Service delivery sites

3.1 Canada and New Brunswick recognize that, prior to implementation of this Agreement, both orders of government possess program and service delivery networks, as well as appropriate support structures. At this point, there is no intention on the part of either party to discontinue service at any of these sites.

Service Delivery sites
Main offices Branches
Bathurst Footnote 1 Tracadi Footnote 5 Footnote 4
Caraquet Footnote 1 Shippagan Footnote 4
Campbellton Footnote 3 Dalhousie Footnote 4
Campbellton Footnote 4
Kedgwick Footnote 4
St. Quentin Footnote 5
Miramichi Footnote 2 Nequac Footnote 4
Miramichi
Edmundston Footnote 1 Grand Falls Footnote 4
Fredericton Footnote 1 Woodstock Footnote 4
Minto Footnote 4
Perth-Andover Footnote 4
Moncton Footnote 1 Shediac Footnote 4
Sackville Footnote 4
Richibucto Footnote 4
Saint John Footnote 1 St. Stephen Footnote 4
Sussex Footnote 4

3.2 Canada and New Brunswick agree that co-located delivery sites represent an optimal model for the delivery of federal and provincial responsibilities within the context of this Agreement.

3.3 Through the Implementation Committee referred to in 21.0 of this Agreement, Canada and New Brunswick agree to identify specific co-location sites, drawing from the service delivery points above, and to review these on an ongoing basis. This will be done while respecting that both orders of government have distinct responsibilities which may necessitate federal or provincial service sites in geographic locations where the other party is not required to be present. Canada and New Brunswick agree to jointly develop an implementation schedule for establishment of HRSCs, including interim arrangements where immediate co-location is not deemed feasible.

3.4 These arrangements will be jointly formulated on a local/regional basis, in accordance with the Implementation Framework referred to in Section 21.2 of the Agreement, and will be subject to the approval of the Implementation Committee.

4.0 Management of service delivery sites

4.1 Canada and New Brunswick will be individually responsible for the management of those programs and services for which they are mandated, as described above. Provincial management is further delineated to the Human Resources Development New Brunswick and to Advanced Education and Labour.

4.2 The parties recognize that there are aspects of the centres in which both parties have an interest. These will be managed considering the legitimate requirements of both parties (with client needs being the primary consideration), and includes the obligation of both parties as an employer, and the assurance that each government's identity needs will be met. Specific undertakings related to these needs will be jointly developed and agreed to by the Implementation Committee and will be appropriately reflected in the Implementation Framework referred to in Section 21.2 of the Agreement.

4.3 Notwithstanding the above, the parties acknowledge that New Brunswick will be responsible for the management of the reception of the centre. Each party will manage its activities and interests within the Resource Centres (the area providing clients with information and other self directed assistance). It is agreed that the parties will coordinate their activities so as to enhance the quality of service to clients.

5.0 Technological systems and supports

5.1 Each party will maintain its own technological systems in support of the delivery arrangements and financial accountability consistent within the terms of this Agreement unless otherwise agreed to by the Implementation Committee.

5.2 In setting up the Service Delivery Network, Canada and New Brunswick agree that systems will be an integral part of this final network and that sharing of existing and new systems (along with connectivity between federal and provincial systems) are desired outcomes. It is further agreed that systems costs associated with transfer of labour market responsibilities from Canada to New Brunswick and the subsequent setting up of co-located offices will require financial investment and that each party agrees to be responsible for any and all expenditures they incur in this area.

5.3 In an effort to reduce costs associated with the implementation of this Agreement, Canada and New Brunswick agree to share systems and electronic data processing facilities wherever possible and to work together to develop and implement system solutions that are cost effective and eliminate overlap and duplication.

5.4 Electronic connectivity between Canada and New Brunswick is considered to be a desirable requirement for data sharing including the potential use of each others systems. Each organization agrees to undertake efforts to ensure this connectivity is achieved and proper security mechanisms are put in place to safeguard all information access while respecting all existing privacy/client confidentiality legislation.

6.0 Visibility

6.1 Canada and New Brunswick agree on the necessity and importance of both orders of government being identified with and recognized for their contributions to the labour market arrangements provided for by way of this agreement. Signage, identifiers and related information pieces relating to the HRSCs will be reflective of this Agreement.

6.2 The specific provisions to be followed in respect of this Agreement will be jointly developed and agreed to by the Implementation Committee and will be appropriately reflected in an Implementation Framework and subsequent plans referred to in Section 21.2 of the Agreement.

7.0 Accommodations

7.1 Canada and New Brunswick agree that decisions regarding the selection of specific sites for HRSCs, within agreed upon communities, must give consideration to historical/traditional patterns of client access to services within that geographical area, cost efficiencies, requirements under provincial and federal workplace legislation, accessibility for the physically disabled, the visibility needs of each government, appropriateness for service configurations and layouts which enhance client service efficiencies, and so on.

7.2 Canada and New Brunswick recognize that, within each party's existing service network, there are existing leases and contractual commitments which must be addressed as an element of this decision-making process. Sharing in premises covered by existing federal leases will result in no additional costs to New Brunswick.

Annex 5 - Accountability and results

Context

The EI Act and the federal proposal to provinces regarding labour market arrangements are explicit on required results and the need for results verification in terms of monitoring, assessment and evaluation. A results-based accountability framework thus constitutes the centrepiece of this agreement on labour market development in New Brunswick and requires the parties to mutually agree on expected results and define reporting requirements to demonstrate results achieved.

Canada and New Brunswick agree that accountability is about setting measurable results expectations, tracking and reporting these results, and taking responsibility where deficiencies are demonstrated.

1.0 Purpose

1.1 The purpose of this Annex to the Canada-New Brunswick Agreement on Labour Market Development is to establish mutual understanding of, and agreement to the results measurements, target setting process, and results reporting.

2.0 Result measurements

2.1 Canada and New Brunswick agree that the core of the accountability framework rests in the planning, tracking, and reporting of the following Results Indicators and Measures:

Primary Results Indicators:

  • the percentage of EI clients who participate in provincial benefits who are active EI claimants
  • returns to employment of EI clients, with an emphasis on active EI claimants
  • savings to the EI Account

Cost and Effectiveness Measures

  • number and unit costs of clients becoming employed/self-employed
  • number and unit costs of clients becoming self-sufficient

Qualitative Measures:

  • sustained employment
  • reduction in dependency on government assistance
  • increased savings which can be ascribed to EI and social assistance accounts
  • increased tax revenues from earned income

2.2 New Brunswick agrees to give priority to the three Primary Results Indicators as described above. These Indicators clearly place an emphasis on achieving rapid employment results leading to current savings to the EI account. However, both parties recognize that the ability to demonstrate long term success is equally important.

3.0 Targets

3.1 In advance of each year of the Agreement, targets will be established and mutually agreed upon with respect to the Primary Results Indicators. Targets will be set, preferably at the local level of operational delivery, taking into consideration local level labour market realities and opportunities, individual client needs, equity considerations, community/partnership capacity, and program mix.

3.2 For 1997/98 targets have been established, utilizing a benchmarking procedure supported by historical data from HRDC, and are detailed in Annex 2 to this Agreement. Targets for future years will be set and agreed to by the parties through the establishment of the Annual Annex referred to in section 16.

4.0 Reporting of results

4.1 Canada and New Brunswick agree that the results described in this section will be tracked and reported on as follows:

On a quarterly basis, New Brunswick will report to the Regional Executive Head, NB Region HRDC, on the Year-To-Date (YTD) results achieved by each Human Resource Service Centre, with respect to the primary results indicators and related data elements.

The following represents the reporting requirements for the Primary Indicators and the Cost and Effectiveness Measures:

Priority access for EI claimants

  • Percentage of EI clients participating in provincial benefits who are active EI claimants

EI clients returned to employment

  • Number of EI clients and the number of EI claimants who are employed or self-employed broken down by provincial benefit or measure and the average cost. Clients are considered as employed if:
    • they have drawn 25% or less of their EI entitlement for 12 consecutive weeks (applies to claimants who return to employment 12 weeks or more before the end of their benefit period); or,
    • they draw 25% or less of their EI entitlement in all their remaining weeks of benefits (applies to claimants who return to employment less than 12 weeks before the end of their benefit period); or,
    • they are recorded as employed at the completion of their intervention(s) (clients who return to employment after the end of their benefit period or who were not active claimants); or,
    • they are employed when contacted 12 weeks after the completion of their intervention(s) (clients who return to employment after the end of their benefit period or who were not active claimants); or

Savings to the EI Account

  • Year-To-Date savings to the EI Account as a result of EI claimants becoming employed before making a full draw on their insurance entitlement. (Part I insurance benefit entitlement minus actual Part I payout)

Cost and effectiveness

  • The number of EI clients and the number of EI claimants who have completed their intervention broken down by type and average cost per intervention.
  • The number of EI clients and the number of EI 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, New Brunswick agrees to provide Canada access to information on individual clients for purposes of monitoring, evaluating, and validation. The details of this information exchange process are described in Annex 6 to this Agreement.

4.3 On an annual basis Canada is required to report to Parliament in accordance with requirements of EI Act. This report, as described under Section 10 of the Agreement (Monitoring and Assessment), will include the results as reported by the Province in accordance with the above.

Further qualitative measurement of incremental impacts will occur one, two, and three years following the client completing their action plan and will be accomplished through tracking of individuals within existing federal information systems - to determine whether: indicators of primary results are being sustained over time; there has been a reduced dependency on government assistance; additional savings could be ascribed to the EI and Social Assistance accounts.

4.4 New Brunswick agrees to report an annual estimate of savings which can be ascribed to the Social Assistance account as a result of activities under this Agreement.

Annex 6 - Information and data sharing arrangements

Amending Agreement n°3 for Annex 6 of the Canada – New Brunswick Labour Market Development Agreement

Between

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

And

The Government of New Brunswick (herein referred to as “New Brunswick”), as represented by the Minister of Post-Secondary Education, Training and Labour

Whereas, Canada and New Brunswick entered into a Labour Market Development Agreement on December 13, 1996 (hereinafter referred to as the “LMDA”), in which Canada and New Brunswick agreed to certain arrangements relating to the provision of contributions by Canada pursuant to section 63 of the Employment Insurance Act to support the costs of benefits and measures (referred to in the LMDA as “Provincial Benefits and Measures”) provided by New Brunswick that are similar to Canada’s employment benefits and support measures and that are consistent with the purpose and guidelines of Part II of the Employment Insurance Act;

Whereas Canada and New Brunswick wish to amend the information sharing arrangements provided for in section 9 and Annex 6 of the LMDA entitled “Information and Data Sharing Arrangements”; and,

Whereas under article 24.2 of the LMDA, the Designated Officials of Canada and New Brunswick are authorized to sign amendments to any Annex to the LMDA;

Now, therefore, Canada and New Brunswick agree as follows:

  1. Annex 6 of the Canada - New Brunswick LMDA is hereby replaced in its entirety by the attached Annex 6, Exchange of Information and Data Sharing Arrangements, which shall be binding on the parties effective as of the date of signing of this Amending Agreement.
  2. The LMDA in all other respects shall remain the same.

Signed on behalf of Canada this 21 day of February, 2017.

______________
Witness

______________
Sara Filbee
Assistant Deputy Minister
Service Canada Atlantic Region

______________
Witness

______________
Minister of Human Resources Development

Signed on behalf of New Brunswick this 27 day of January, 2017.

______________
Witness

______________
Jean-Marc Dupuis
Deputy Minister
Department of Post-Secondary Education, Training and Labour

1.0 Purpose

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

2.0 Authority to disclose information

Canada’s authorities:

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

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

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

New Brunswick’s authorities:

2.3 With respect to the personal information to be provided by New Brunswick to Canada under section 4 of this Annex, New Brunswick confirms that it is authorized under paragraph 46(1) of the New Brunswick RTIPPA to provide such information to Canada for the purposes set out in section 4.

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

3.0 Information to be provided by Canada to New Brunswick

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

a) assisting New Brunswick in establishing and verifying if the individual qualifies as an EI client who is not an active EI claimant (i.e. who qualifies as a former EI claimant) and is therefore eligible for, or entitled to, assistance under New Brunswick’s programs:

  • name
  • social insurance number
  • address
  • postal code
  • telephone number
  • date of birth
  • federal office code – if available
  • gender
  • language (French or English)
  • EI client status, with explanatory messages
  • Provincial/Territorial Parental Benefits (P/TPB), if applicable, with explanatory messages
  • identification if on an intervention, with explanatory messages; and

b) in respect of an individual, who has been determined to be an active EI claimant who is eligible for, or entitled to, assistance under New Brunswick’s programs, assisting New Brunswick in determining the nature and level of financial assistance to be provided to the EI client under New Brunswick’s programs:

  • name
  • social insurance number
  • address
  • postal code
  • telephone number
  • date of birth
  • federal office code – if available
  • gender
  • language (French or English)
  • EI client status, with explanatory messages
  • P/TPB client status, if applicable, with explanatory messages
  • identification if on an intervention, with explanatory messages; and

EI claim information:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3.9 Canada may also, on its own initiative, provide to New Brunswick the information listed in section 3.8 about any individual who has received, or is receiving, assistance under Canada’s programs where it suspects that the individual was/is not entitled to that assistance, and/or may have received or be receiving insurance benefits under Part I of the EI Act to which the individual was/is not entitled. 3.10 Following amendments to Canada’s EI Act, Canada will provide to New Brunswick, when requested by New Brunswick, on a per individual basis, any or all of the following personal information under its control in respect of each individual who has been determined to be an active EI claimant who is receiving or has recently received financial assistance while participating in a New Brunswick program, to assist New Brunswick in communicating with the client and/or in determining whether any revisions to New Brunswick’s financial assistance are required:

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

4.0 Information to be provided by New Brunswick to Canada

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

  • social insurance number
  • name
  • eligibility date

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

a) to ensure that EI clients who are active EI claimants continue to receive the insurance benefits to which they are entitled while participating in a New Brunswick program (for purposes of section 25 of the EI Act):

  • name
  • social insurance number
  • provincial l office code
  • intervention type (e.g. training, job creation, self-employment)
  • training ID (for training interventions)
  • institution code (if available)
  • start week(s)/date(s) of intervention
  • end week(s)/date(s) of intervention
  • intervention break start week/date (if available)
  • intervention break end week/date (if available)
  • authorization for absence from Canada during intervention, with dates(if available)
  • agreement/file number (if available)
  • apprentice indicator (if available)
  • no claimant report code (for apprentices) (if available)
  • rate (EI Part II)

b) to allow Canada to verify the ongoing eligibility for, or entitlement to, insurance benefits (for the purposes of sections 25 and 27 of the EI Act):

  • name
  • social insurance number
  • intervention type
  • date for absence from or for leaving the intervention prior to completion
  • reason for absence from, for departure, for abandoning, or for cancelling participation in the intervention, if known

c) to allow Canada to determine the eligibility for, or entitlement to, insurance benefits of an individual who is authorized by New Brunswick to quit their job in order to participate in a New Brunswick program (for the purposes of section 25 of the EI Act):

  • name
  • social insurance number
  • date on which the individual is authorized to quit their job (last day of work)
  • start date of participation in the New Brunswick program, and rationale for any gap of more than two weeks
  • name and signature of designated authority, with date

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

  1. about each EI client who is participating in New Brunswick programs, and
  2. for each non-insured participant who is participating in New Brunswick programs funded with EI Part II monies,

for the purpose of assisting Canada in monitoring, assessing and evaluating the effectiveness of the assistance provided by New Brunswick under New Brunswick’s programs, which Canada is required to do under Articles 8 and 10 of this LMDA:

  • name
  • social insurance number
  • address
  • postal code
  • telephone number
  • date of birth
  • gender (as self-identified information)
  • disability status (as self-identified information)
  • visible minority (as self-identified information)
  • aboriginal group (as self-identified information)
  • educational attainment
  • marital status
  • family type
  • number of dependents
  • citizenship/immigration status
  • immigration – date of arrival in Canada
  • official language preferred (French or English)
  • labour force attachment prior to intervention
  • current/last employment, including NOC code, years of experience, part-time/full-time, start date, end date, salary, reason for leaving job
  • type of benefit income from government sources
  • EI client status
  • social assistance client status
  • provincial office code
  • action plan ID
  • start date of action plan
  • provincial intervention code
  • name of intervention in which individual is involved, including apprenticeship
  • agreement/file number
  • start date of intervention
  • end date of intervention
  • duration of intervention (hours, weeks, days)
  • language of intervention received (French or English)
  • group services type
  • group services completion date
  • language of service (French or English)
  • NOC code for training
  • type of training institution
  • training type/name
  • for Self-Employment Benefit (SEB): type of assistance (coaching, business plan, ongoing technical assistance)
  • intervention outcome (including reason for non-completion, where available)
  • end date of action plan
  • action plan result
  • date of action plan result
  • type of employment obtained (full-time/part-time)
  • type of employment obtained (year round / seasonal)
  • type of employer (e.g. private sector, public sector, non-profit organization)
  • NOC code of employment obtained
  • earnings (hourly/weekly/monthly)

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

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

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

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

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

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

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

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

5.0 Security requirements for user identity and access management

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

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

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

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

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

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

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

5.7 New Brunswick will promptly inform Canada when a New Brunswick employee ceases to need access to any of Canada’s systems.

6.0 Information protection and security

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

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

7.0 Mode of information exchange

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

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

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

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

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

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

8.0 Confidentiality, use and disclosure

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

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

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

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

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

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

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

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

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

8.5 2 For the purpose of section 8.5, a “third party” does not include Service New Brunswick, responsible for the provision of information technology (IT) infrastructure services to New Brunswick that may include e-mail, data center (servers) and network services.

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

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

9.0 Costs

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

10.0 Information management

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

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

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

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

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

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

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

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

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

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

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

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

11.0 Accuracy of information

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

12.0 Personal information collection, storage and access

12.1 Except as may be permitted by New Brunswick’s Right to Information and Protection of Personal Information Act (RTIPPA), personal information (as defined therein) in New Brunswick’s custody or under New Brunswick’s control may only be stored or accessed in Canada.

12.2 Canada and New Brunswick will cooperate to ensure that the provisions of New Brunswick’s Right to Information and Protection of Personal Privacy Act (RTIPPA) are respected.

13.0 General

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

Appendix A – Privacy breach requirements

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

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

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

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

For ESDC

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

For New Brunswick

Director, of Program Design and Support
Employment and Continuous Learning Services
Department of Post-Secondary Education Training and Labour
470 York Street
Chestnut Complex
P. O. Box 6000
Fredericton, NB
E3B 5H1

Annex 7 - Agreement-in-principle on certain issues regarding the transfer of employees from Canada to New Brunswick

Further to the undertakings made in section 12 of the Labour Market Development Agreement, Canada and New Brunswick have agreed in principle to the following elements of the Employee Transfer Agreement to be signed by the parties prior to the date referred to in section 3.1 of the Agreement.

1.0 Offer of employment

1.1 Continued Employees, that is those Employees of Canada transferred to New Brunswick as a result of the Canada-New Brunswick Labour Market Development Agreement, will, to the greatest extent possible, be assigned to positions comparable to those which they are vacating according to the job comparison chart developed by the parties.

2.0 Probationary period

2.1 There will be no probationary period for Continued Employees.

3.0 Terms and conditions of employment

3.1 Salary

The annual salary offered to each Continued Employee will not result in an amount lower than that transferred by Canada for that employee and will not be lower than that earned by that employee in their substantive position prior to transfer.

3.2 Hours of work

Continued Employees will work the normal working hours in place for employees of New Brunswick.

3.3 Location

To the greatest extent possible, Continued Employees will be assigned to positions in the same geographic location in which they worked prior to the transfer. The offer of employment will specify the work location. Expenses associated with the relocation of a consenting employee will be paid by New Brunswick.

3.4 Equivalent qualifications

New Brunswick acknowledges the qualifications of Continued Employees as equivalent to the basic qualifications of the positions which these Continued Employees are assuming and further undertakes to recognize this equivalency for all purposes, including, but not limited to: salary increments, staffing and workforce adjustment so long as the Continued Employee remains in the employ of New Brunswick.

4.0 Recognition of prior service

4.1 New Brunswick will recognize all periods of prior service to which a Continued Employee would have been entitled prior to the transfer for all purposes including leave and benefit entitlements, severance pay, assignment and/or promotion pay. Canada undertakes to negotiate with and transfer to New Brunswick the actuarial value of Canada's liability for any deferred severance payment to Continued Employees to cover the period for which they were in the employ of Canada, this severance payment to be paid by New Brunswick to Continued Employees at the time they cease employment with New Brunswick.

4.2 As to accrued vacation entitlement, New Brunswick will recognize the entitlement of Continued Employees who have 19 years of service prior to the Transfer Date, to 5 weeks of vacation leave.

New Brunswick will also recognize all vacation leave accumulated by Continued Employees up to a maximum equivalent of one year's entitlement.

4.3 New Brunswick undertakes to make every effort with any and all unions receiving Continued Employees to negotiate transfer agreements which recognize all periods of prior service to which a transferred employee would have been entitled prior to the transfer for the purposes of seniority in all its applications other than what has already been agreed under sections 4.1 and 4.2. The results of New Brunswick's negotiations with the receiving unions on this matter will be reflected in the Employee Transfer Proposal.

5.0 Health, life, dental and long term disability insurance plans or arrangements

5.1 Prior to the Transfer Date, New Brunswick will establish for or extend to every Continued Employee, health, life, dental care and Long Term Disability Insurance plans or arrangements which are in force for employees of New Brunswick at the time of transfer.

5.2 Enrolment in these plans will not require evidence of insurability, application of pre-qualification conditions, which might otherwise apply (for coverage of employees, their spouses or dependents) including restrictions related to pre-existing conditions criteria.

6.0 Short-term disability arrangement

6.1 New Brunswick will recognize all sick leave accumulated by Continued Employees. For employees whose accumulated sick leave exceeds the maximum of 240 days of accumulated sick leave which currently applies to employees of New Brunswick, Continued Employees will draw down any accumulated sick leave beyond 240 days and will not earn sick leave until such time as their accumulated sick leave falls below 240 days. This arrangement in combination with the Long Term Disability Plan will provide income protection for Continued Employees who are unable to work because of a non-occupational illness or accident.

7.0 Pension plan arrangements

7.1 New Brunswick undertakes to enrol Continued Employees in its existing pension plan as of the Transfer Date.

7.2 New Brunswick undertakes to set out the details of Pension Plan Arrangements in an Employee Transfer Proposal.

8.0 Transition period amendments to existing compensation arrangements

8.1 New Brunswick agrees that during the Transition Period, that is, the period starting on the signing of the Employee Transfer Agreement (ETA) and finishing on the Transfer Date,

  • a) A change in any element of New Brunswick's compensation arrangement or in any element covered in the ETA, as a result of an amendment by statute or the collective bargaining process, which would result in a less advantageous arrangement for Continued Employees will not affect these employees;
  • b) Further discussion may be required between the parties to clarify and modify the ETA if there is a change in any element of the federal public service compensation arrangement or in any element of the ETA, as a result of an amendment by statute or the collective bargaining process, which, in the opinion of Canada, will lead to a situation in which the offer made by New Brunswick no longer constitutes a Reasonable Job Offer.

9.0 Specific commitments for the first three years of the agreement

9.1 New Brunswick undertakes that in no event, except with the written consent of the concerned employee, will the employment of a Continued Employee, who has accepted an offer of indeterminate employment as a result of this agreement, be terminated in the three year period following the Transfer Date, other than for cause.

Annex 8 - Letter of June 26, 1996 from Canada's deputy minister of Human Resources Development

Mr. David Ferguson
Deputy Minister of Advanced Education and Labour
Chestnut Complex
470 York Street
P.O. Box 6000
Fredericton, New Brunswick
E3B 5H1

Dear Mr. Ferguson:

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

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

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

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

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

I hope this information is useful and will help support a 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 staff who are moved to a new establishment do so with salary, benefits and pension packages that are generally comparable to those which they receive as HRDC employees.
  • The conditions of transfer of staff from HRDC to provincial or other jurisdiction will be based on Alternative Service Delivery Initiatives as described in the Workforce Adjustment Directive.
  • Provisions will be made for joint dispute resolution/redress mechanisms to deal with the interpretation of issues pertaining to the re-allocation of responsibilities and resources.
  • The potential HR impact of decisions relating to employee allocation to the new establishment will be considered in relation to the broader context of the many HRDC initiatives and departmental needs.
  • Both partners re-affirm the need to continue to provide quality services to our clients during any change or transition process.

Explanatory 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)
New Brunswick 1995-96 1996-97 1997-98 1998-99 1999-00
Maximum funds for provincially managed programs **
UIDU / Part II (Base)
49,028 47,189 46,425 46,544 46,651
Re-Investment 0 9,213 20,005 31,587 36,852
Total - Max. funds for provincially managed programs 49,028 56,402 66,430 78,131 83,503
Income support under active measures
Part I (Benefit Entitlements)
23,402 23,402 23,402 23,402 23,402
Pan-Canadian responsibilities
Ongoing
12,744 13,656 9410 3,080 2,488
Transitional 0 4,928 12,088 8,555 0
Total - Pan-Canadian responsibilities 12,744 18,584 21,498 11,635 2,488
Grand Total 85,174 98,388 113,330 113,168 109,393

* - 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. Income support under active measures 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
Part I (Benefit Entitlements) 26,059 22,009 23,402 5,244 143,449 152,196 18,734 13,588 36,821 880 56,771 847 500,000 0 500,000
Pan-Canadian responsibilities
Ongoing 2,270 2,776 12,744 565 20,624 18,194 5,210 5,553 7,782 2,816 9,954 356 88,844 96,750 185,594
Transitional 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total - Pan-Cdn resp. 2,270 2,776 12,744 565 20,624 18,194 5,210 5,553 7,782 2,816 9,954 356 88,844 96,750 185,594
Grand Total 77,787 71,885 85,174 17,825 519,728 559,130 69,462 50,432 131,298 6,024 211,451 3,054 1,803,250 96,750 1,900,000
1996-97
Maximum funds for provincially managed programs**
UIDU / Part II (Base) 51,676 48,606 47,189 12,687 344,343 373,033 42,785 29,290 81,857 2,198 136,851 1,750 1,172,265 0 1,172,265
Re-investment 15,988 6,639 9,213 2,192 54,266 40,271 2,238 2,157 7,858 548 33,191 439 175,000 0 175,000
Total - Max. prov. mgd. progr. 67,664 55,245 56,402 14,879 398,609 413,304 45,023 31,447 89,715 2,746 170,042 2,189 1,347,265 0 1,347,265
Income support under active measures
Part I (Benefit Entitlements) 26,059 22,009 23,402 5,244 143,449 152,196 18,734 13,588 36,821 880 56,771 847 500,000 0 500,000
Pan-Canadian responsibilities
Ongoing 16,076 8,617 13,656 949 28,626 22,678 5,922 6,040 10,997 2,969 10,754 451 127,735 100,000 227,735
Transitional 9,198 5,520 4,928 1,848 18,256 5,408 1,328 1,257 792 450 3,614 401 53,000 7,000 60,000
Total - Pan-Cdn resp. 25,274 14,137 18,584 2,797 46,882 28,086 7,250 7,297 11,789 3,419 14,368 852 180,735 107,000 287,735
Grand Total 118,997 91,391 98,388 22,920 588,940 593,586 71,007 52,332 138,325 7,045 241,181 3,888 2,028,000 107,000 2,135,000
1997-98
Maximum funds for provincially managed programs**
UIDU (Base) 51,121 48,190 46,425 13,026 339,464 363,118 41,454 28,846 80,454 2,357 133,848 1,697 1,150,000 0 1,150,000
Re-investment 34,716 14,415 20,005 4,761 117,834 87,446 4,861 4,684 17,063 1,190 72,072 953 380,000 0 380,000
Total - Max. prov. mgd. progr. 85,837 62,605 66,430 17,787 457,298 450,564 46,315 33,530 97,517 3,547 205,920 2,650 1,530,000 0 1,530,000
Income support under active measures
Part I (Benefit Entitlements) 26,059 22,009 23,402 5,244 143,449 152,196 18,734 13,588 36,821 880 56,771 847 500,000 0 500,000
Pan-Canadian responsibilities
Ongoing 16,076 8,617 9,410 949 28,626 22,678 5,922 6,040 10,997 2,969 10,754 451 123,489 126,511 250,000
Transitional 22,560 13,539 12,088 4,532 44,783 13,264 3,256 3,084 1,942 1,104 8,864 984 130,000 10,000 140,000
Total - Pan-Cdn resp. 38,636 22,156 21,498 5,481 73,409 35,942 9,178 9,124 12,939 4,073 19,618 1,435 253,489 136,511 390,000
Grand Total 150,532 106,770 111,330 28,512 674,156 638,702 74,227 56,242 147,277 8,500 282,309 4,932 2,283,489 136,511 2,420,000

* - Additional funds for administrative purposes for provinces that take up programs and aspects of the National Employment Service will be discussed separately.

** - Maximum funds under new Labour Market Arrangements where provinces/territories fully take up may 30 labour market proposal.

Projected distribution of EI-related 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
1998-99
Maximum funds for provincially managed programs**
Part II (Base) 51,504 48,646 46,544 13,548 340,959 360,571 40,987 28,948 80,591 2,538 133,484 1,680 1,150,000 0 1,150,000
Re-investment 54,815 22,761 31,587 7,517 186,053 138,073 7,675 7,396 26,941 1,880 113,797 1,505 600,000 0 600,000
Total - Max. prov. mgd. progr.
Income support under active measures
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
Part I (Benefit Entitlements) 26,059 22,009 23,402 5,244 143,449 152,196 18,734 13,588 36,821 880 56,771 847 500,000 0 500,000
Pan-Canadian responsibilities
Ongoing 16,076 8,617 3,080 949 28,626 22,678 5,922 6,040 10,997 2,969 10,754 451 117,159 132,841 250,000
Transitional 15,966 9,581 8,555 3,208 31,692 9,387 2,304 2,182 1,375 781 6,273 696 92,000 8,000 100,000
Total - Pan-Cdn resp. 32,042 18,198 11,635 4,157 60,318 32,065 8,226 8,222 12,372 3,750 17,027 1,147 209,159 140,841 350,000
Grand Total 164,420 111,614 113,168 30,466 730,779 682,905 75,622 58,154 156,725 9,048 321,079 5,179 2,459,159 140,841 2,600,000
1999-00
Maximum funds for provincially managed programs**
UIDU (Base) 51,849 49,057 46,651 14,018 342,304 358,278 40,567 29,039 80,714 2,700 133,157 1,666 1,150,000 0 1,150,000
Re-investment 63,950 26,555 36,852 8,770 217,062 161,085 8,954 8,629 31,431 2,193 132,763 1,756 700,000 0 700,000
Total - Max. prov. mgd. progr. 115,799 75,612 83,503 22,788 559,366 519,363 49,521 37,668 112,145 4,893 265,920 3,422 1,850,000 0 1,850,000
Income support under active measures
Part I (Benefit Entitlements)
26,059 22,009 23,402 5,244 143,449 152,196 18,734 13,588 36,821 880 56,771 847 500,000 0 500,000
Pan-Canadian responsibilities
Ongoing 2,340 2,839 2,488 588 22,042 18,345 5,561 5,679 8,074 2,969 10,392 451 81,768 168,232 250,000
Transitional 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total - Pan-Cdn resp. 2,340 2,839 2,488 588 22,042 18,345 5,561 5,679 8,074 2,969 10,392 451 81,768 168,232 250,000
Grand Total 144,198 100,460 109,393 28,620 724,857 689,904 73,816 56,935 157,040 8,742 333,083 4,720 2,431,768 168,232 2,600,000

* - Additional funds for administrative purposes for provinces that take up programs and aspects of the National Employment Service will be discussed separately.

** - Maximum funds under new Labour Market Arrangements where provinces/territories fully take up may 30 labour market proposal.

Explanatory note resource allocation formula 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 EI Bill). Seventy five percent of funds will be allocated based on the number of EI claimants in EI regions with unemployment rates above 12% multiplied by the unemployment rate in these regions. Twenty five percent of funds will be allocated based on estimated reductions in insurance benefits per province (at maturity). A $25 M national reserve over the three years will be set aside, $15 M of which will be dedicated to initiatives for Urban Aboriginal Peoples (three national Aboriginal groups will work with HRDC to advise on the allocation of these funds). Administration of the Transitional Jobs Fund is under federal responsibility.

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

Recommended allocation of reinvestment for 2001/02
Showing impacts of reform before/after reinvestment and benefit to contribution (B/C) ratios
Province UI benefits (without reform) $ million Reduction before reinvestment Illustrative re-investment $ million Net impact of reform Benefit contribution ratio after reform (ranking from largest net contributor to largest net beneficiary)
$ million Percent $ million Percent
Newfoundland 725 112 -15 73 39 -5(5.4) 2.73 (9)
PEI 170 19 -10 10 9 -5(5.3) 2.77 (10)
Nova Scotia 750 70 -8 30 40 -5(5.3) 1.52 (7)
New Brunswick 630 76 -11 42 34 -5(5.4) 1.59 (8)
Québec 5,495 536 -10 248 288 -5(5.2) 1.32 (6)
Ontario 5,270 380 -7 184 196 -4(3.7) 0.76 (1)
Manitoba 520 31 -6 10 21 -4(4.0) 0.85 (4)
Saskatchewan 385 26 -7 10 16 -4(4.2) 0.81 (2)
Alberta 1,395 93 -7 36 57 -4(4.1) 0.83 (3)
B.C. 2,040 241 -11 152 89 -4(4.4) 0.93 (5)
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) 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 9 - Letter of September 25, 1996 from Canada's deputy minister of Human Resources Development

Mr. W. David Ferguson
Deputy Minister of Advanced Education and Labour
Chestnut Complex
470 York Street
P.O. Box 6000
Fredericton, New Brunswick
E3B 5H1

Dear Mr. Ferguson:

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 MacIntyre.

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 New Brunswick 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 New Brunswick 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 170 FTEs (Full Time Equivalents) and $8,382,000 administrative resources per year would be available once a final agreement is reached and if the Government of New Brunswick 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. Bill Ferguson, Regional Executive Head for New Brunswick , and the chief negotiator for the Government of Canada in New Brunswick , 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. Bill Ferguson on the human resource issues.

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

I am pleased to note that our officials have made significant progress during an initial round of detailed discussions. I think we should aim at an agreement as soon as possible, which could allow the Government of New Brunswick 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

Administrative resources

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

Factors affecting the projection of FTEs and administrative resources available to provinces include:

  • Within the framework of the National Employment Service, the Government of Canada will retain the responsibility and the resources required to manage pan-Canadian activities such as the free and timely flow of information on employment opportunities across the country; support for inter-provincial worker mobility; and national sectoral development. The Government of Canada has offered to provinces NES functions and resources that are required to support the delivery of active labour market measures to EI clients.
  • All currently budgeted HRDC administrative resources, including those available to provinces and territories for the delivery of responsibilities laid out in the May 30 proposal, are fixed at the 1997-98 level. There will be no increases due to such factors as inflation.
  • The FTE and dollar figures reflect a take-up of all responsibilities offered in the May 30 proposal. In the event that your province assumes partial responsibilities, FTEs and administrative resources will be adjusted accordingly.
  • Given the need for both Governments to demonstrate that labour market agreements promote efficient programming and reduce any overlap and duplication, no incremental funds, e.g., start-up funds related to new agreements, are available for provinces.
  • Compensation for accommodation will be based on projected, actual costs for a given site. Funds for accommodation will only be transferred to a provincial government after a current lease commitment has expired.
Projection of EI-related administrative resources under new labour market arrangements 1997-98 onwards
Province Full-time equivalents Operating funds ($000s) Employee benefits ($000s) Total funds available Accommodation ($000s)
(see Note 4 below)
Nfld 177 7,080 1,115 8,195 643
NS 196 8,195 1,254 9,449 969
NB 170 7,240 1,142 8,382 743
PEI 49 2,115 338 2,453 214
Que 1,084 46,269 7,286 53,555 4,406
Ont 1,007 44,612 6,721 51,333 6,071
Man 118 4,759 735 5,494 562
Sask 114 4,681 717 5,398 708
Alta 204 7,712 7,202 8,914 759
NWT 24 1,534 224 1,758 155
BC 470 17,292 2,819 20,111 2,248
YK 7 329 52 381 64
Total 3,620 151,818 23,605 175,423 17,542

(Accommodation costs are not included in the “Total Funds Available” above. Actual amounts to be transferred will be determined at a later date.)

Notes:

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

The Honourable Roland MacIntyre, M.L.A.
Minister of Advanced Education and Labour
470 York Street , Chestnut Complex
PO BOX 6000
Edmonton, New Brunswick

Dear Mr. MacIntyre:

I am writing to you, and all my provincial and territorial colleagues, to bring you up to ate on progress achieved since the tabling of the Government of Canada's proposal for new arrangements on labour market and to stress the priority I give to signing an agreement with each province and territory which will meet the objectives of both levels of government. I understand that, over the summer months, our officials have reviewed various issues and exchanged information and I believe we are now well positioned to move negotiations forward.

We have covered several important steps over the last months. As you know, the Employment Insurance Act of Canada was passed on July 1, establishing the legislative foundation for the new arrangements between our governments. We have also reached agreement with each of the provinces and territories on arrangements and funding allocations for labour market training for 1996-1997 and, in some cases, for subsequent years as well. These agreements reflect the needs and circumstances of each jurisdiction and, in some cases, are closely linked to negotiation of a broader labour market agreement.

Recognizing the importance of this issue for all the provinces, last June, my Deputy Minister sent his provincial and territorial counterparts detailed information on the funding available to each province under the new arrangements. We have signed a Letter of Understanding that will serve as a guide for negotiations with Alberta ; in other provinces and territories, we have agreed on a negotiating structure and are in discussions with most of the provinces for establishing joint work plans.

I am firmly convinced that the proposal I sent to you on May 30 provides a solid basis for a new labour market arrangement with your province. My goal is to proceed as quickly as possible with bilateral negotiations, while of course respecting the special circumstances of each province. To this end, I have asked my Department to give high priority to this file and ensure appropriate resources are dedicated both at the national and regional levels, to detailed negotiations.

I understand our officials have made significant progress in their initial round of detailed discussions in recent weeks. I am confident that we can build on this momentum and have a labour market agreement in place for the 1997-1998 fiscal year. My Deputy Minister will be sending additional information on this subject to his provincial and territorial counterparts in the very near future.

I wish to assure you of my personal commitment to reach an early agreement that will benefit the unemployed workers of your province. In view of the priority I am placing on this issue, I have asked my Parliamentary Secretary Robert Nault to assist by working with you and your ministerial staff to expedite negotiations toward final agreements. You can count on his full availability and co-operation.

Sincerely

Douglas Young

Annex 10 - Inventory of assets

1.0 Purpose

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

2.0 Definition

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

3.0 Procedure for transfer of Assets

3.1 Relevant to the number of federal employees who are transferred to New Brunswick under arrangements referred to in Section 12 of this Agreement, Canada will prepare an inventory of moveable assets to be transferred to New Brunswick. Upon completion of the list of moveable assets to be transferred, it will be submitted for approval to the Implementation Committee referred to in Section 21. The approved list will be attached to this Annex and become part of this Agreement.

Annex 11 - Transitional implementation issues

1.0 Context

1.1 Canada and New Brunswick have agreed that implementation by New Brunswick of its provincial benefits and measures and the related transfer of human resources from Canada will optimally occur effective 01 April 1997. The accomplishment of this objective must be attained in keeping with the following:

  • services and supports to individual clients and contractual representatives must not be interrupted as a result of the new labour market development arrangements between the parties under the agreement;
  • employment of, and support to employees, must not be interrupted as a result of the new arrangements; and
  • data capture and tracking of information related to clients, interventions, funding and accountability requirements must not be interrupted as a result of the new arrangements

Reflective of these commitments, Canada and New Brunswick recognize that specific issues must be resolved to allow for transfer of functions and resources. Those minimum essential areas are described below.

2.0 Essential elements

1. Provincial benefits and measures

  • completion of program design and administrative tools, including forms, promotional and information materials for clients, employers and sponsors
  • identification of systems needs, development and operationalization of systems supports for each program and service, including capacity for data capture and tracking related to financial and accountability requirements

2. Systems

  • Accountability (Primary Results Indicators)-Systems capacity to capture data elements and generate reports in keeping with the accountability requirements set out in this Agreement
  • Financial Support Pay System-Systems capacity to generate payment to clients and to claimants receiving support under Part II of the EI Act; and, to generate contributions to employers and project sponsors under Part II of the EI Act

3. Human Resources

  • Identification of FTE requirements by service delivery site.
  • Selection of staff to be transferred; issuance of Reasonable Job Offers to selected staff; finalization of Employee Transfer Agreements; and, appointment of transferred staff.

4. Carry-over arrangements

Financial support commitments with clients and contracts with employers and sponsors with whom HRDC has legal undertakings or commitments, which extend beyond the date of implementation of the Agreement, must be respected. Canada and New Brunswick will make arrangements accordingly, either through HRDC retaining and closing out these contracts or commitments; and or through a transfer or assignment of legal responsibility, including the transfer of associated outstanding financial commitments, to New Brunswick.

4.0 Management of Service Delivery sites

4.1 Canada and New Brunswick will be individually responsible for the management of those programs and services for which they are mandated, as described above. Provincial management is further delineated to the Human Resources Development New Brunswick and to Advanced Education and Labour.

4.2 The parties recognize that there are aspects of the centres in which both parties have an interest. These will be managed considering the legitimate requirements of both parties (with client needs being the primary consideration), and includes the obligation of both parties as an employer, and the assurance that each government's identity needs will be met. Specific undertakings related to these needs will be jointly developed and agreed to by the Implementation Committee and will be appropriately reflected in the Implementation Framework referred to in Section 21.2 of the Agreement.

4.3 Notwithstanding the above, the parties acknowledge that New Brunswick will be responsible for the management of the reception of the centre; each party will manage its activities and interests within the Resource Centres (the area providing clients with information and other self directed assistance). It is agreed that the parties will coordinate their activities so as to enhance the quality of service to clients.

5.0 Technological systems and supports

5.1 Each party will maintain its own technological systems in support of the delivery arrangements and financial accountability consistent within the terms of this Agreement unless otherwise agreed to by the Implementation Committee.

5.2 In setting up the Service Delivery Network, Canada and New Brunswick agree that systems will be an integral part of this final network and that sharing of existing and new systems (along with connectivity between federal and provincial systems) are desired outcomes. It is further agreed that systems costs associated with transfer of labour market responsibilities from Canada to New Brunswick and the subsequent setting up of co-located offices will require financial investment and that each party agrees to be responsible for any and all expenditures they incur in this area.

5.3 In an effort to reduce costs associated with the implementation of this Agreement, Canada and New Brunswick agree to share systems and electronic data processing facilities wherever possible and to work together to develop and implement system solutions that are cost effective and eliminate overlap and duplication.

5.4 Electronic connectivity between Canada and New Brunswick is considered to be a desirable requirement for data sharing including the potential use of each others systems. Each organization agrees to undertake efforts to ensure this connectivity is achieved and proper security mechanisms are put in place to safeguard all information access while respecting all existing privacy/client confidentiality legislation.

6.0 Visibility

6.1 Canada and New Brunswick agree on the necessity and importance of both orders of government being identified with and recognized for their contributions to the labour market arrangements provided for by way of this agreement. Signage, identifiers and related information pieces relating to the HRSCs will be reflective of this Agreement.

6.2 The specific provisions to be followed in respect of this Agreement will be jointly developed and agreed to by the Implementation Committee and will be appropriately reflected in an Implementation Framework and subsequent plans referred to in Section 21.2 of the Agreement.

7.0 Accommodations

7.1 Canada and New Brunswick agree that decisions regarding the
selection of specific sites for HRSCs, within agreed upon communities, must give consideration to historical/traditional patterns of client access to services within that geographical area, cost efficiencies, requirements under provincial and federal workplace legislation, accessibility for the physically disabled, the visibility needs of each government, appropriateness for service configurations and layouts which enhance client service efficiencies, and so on.

7.2 Canada and New Brunswick recognize that, within each party's existing service network, there are existing leases and contractual commitments which must be addressed as an element of this decision-making process. Sharing in premises covered by existing federal leases will result in no additional costs to New Brunswick.

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