Canada – New Brunswick Labour Market Development Amending Agreement #1

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 Minister of Labour and the Minister of Human Resources Development

Whereas Canada and New Brunswick entered into a Labour Market Development Agreement (the "Agreement") on December 13, 1996 in which Canada and New Brunswick agreed to certain arrangements relating to the assumption by New Brunswick of an expanded role in the delivery of labour market programs and services in New Brunswick with financial assistance provided by Canada under section 63 of the Employment Insurance Act;

Whereas Canada and New Brunswick wish to amend the Agreement to:

(a) revise the scope of the authorization granted by the Commission under section 3.8 of the Agreement to New Brunswick's Minister of Advanced Education and Labour to designate authorities in New Brunswick who may make referrals of claimants for the purposes of section 25 of the Employment Insurance Act;

(b) provide for a commitment by Canada that in the annual reviews referred to in section 13.4 of the Agreement, the amount it will agree to allocate for its contribution towards New Brunswick's costs of providing its provincial benefits and measures in fiscal years 2000-2001 and 2001-20002 will not be less than the projected maximum allocation for fiscal year 1999-2000, as set out in section 13.3 of the Agreement;

(c) provide for a change in the methodology referred to in section 13.6 of the Agreement for determining the maximum amount of Canada's annual contribution towards the administration costs of New Brunswick to allow for an increase in the maximum annual contribution towards those costs;

(d) provide for an increase in the amount of the annual contribution payable to New Brunswick for administration costs if, during the first three years of the Agreement, the Treasury Board of Canada makes available to the Department of Human Resources Development additional sums for former federal employees transferred to New Brunswick under the Agreement;

(e) provide for a reduction in the amount of the annual contribution payable to New Brunswick for administration costs, equivalent to the cost of administrative and support services provided by Canada to former federal employees who have transferred to New Brunswick but who temporarily remain on federal premises and use Canada's service delivery network in performing their new duties with New Brunswick;

(f) provide for an undertaking by Canada to review within 24 months of the signing of this Amending Agreement the overall level of funding to be made available for expenditures under Part II of the Employment Insureance Act;

(g) provide for the establishment of an intergovernmental process aimed at reviewing the current formula for allocation of employment insurance funds intended for provincial benefits and measures and at proposing options which put emphasis on matters such as achievement of results and generation of savings to the Employment Insurance Account; and

(h) provide for the review of the Agreement within the first three fiscal years, rather than after the first three fiscal years, and for a period of two calendar years' written notice of intention to terminate to the other party.

Now, therefore, Canada and New Brunswick agree to amend the Agreement as follows:

1. Paragraph 3.8 a) of the Agreement is deleted and replaced by the following:

"a) courses or programs of instruction or training which the claimant is attending at his or her own expense or under provincial benefits; or"

2. Section 13.3 of the Agreement is amended by deleting the first three lines and replacing them by the following:

"13.3 The currently projected maximum amount of Canada's contribution to New Brunswick towards the costs of providing its provincial benefits and measures in the following fiscal years is as following:"

3. Section 13.3 if the Agreement is further amended by adding the following after the last sentence at the end of the section:

"Furthermore, the maximum contribution payable would change should the allocation methodology change as a result of a consensus between provinces/territories and Canada as a result of the intergovernmental process referred to in section 13.9. To assist New Brunswick in its planning and budgeting for its provincial benefits and measures, Canada undertakes to provide in December of each year, a preliminary estimate of its maximum contribution for the fiscal year."

4. The Agreement is further amended by adding immediately after the first sentence of section 13.4 the following sentence:

"Canada agrees, however, that the amount to be allocated by it in each of fiscal years 2000/2001 and 2001/2002 will be not less than the projected amount for fiscal year 1999/2000, as set out in section 13.3"

5. The last sentence in section 13.5 is deleted and replaced by the following:

"Subject to sections 13.7 and 13.8, the maximum amount will be determined in accordance with section 13.6"

6. Section 13.6 of the Agreement is amended by deleting the reference to "17% of total salaries" in line 9 of the section and replacing it with "21.22% of base salary".

7. The Agreement is further amended by adding after section 13.6 the following:

"13.6A The amount of Canada's annual contribution under section 13.6 is subject to a further reduction in each fiscal year during the period of the Agreement of an amount in respect of the costs incurred by Canada related to the provision of administrative and support services to former federal employees transferred to New Brunswick under section 12 who temporarily remain on federal premises and use Canada's service delivery network in performing their new duties with New Brunswick. The amount of the reduction shall represent the actual incremental costs incurred by Canada for the administrative and support services provided. The administrative and support services to be provided by Canada and the cost, or the manner of determining the cost, to Canada for providing these services shall be determined by designated officials of the parties and set out in one or more memoranda of understanding to be concluded between the designated officials."

8. The Agreement is further amended by adding after section 13.7 the following:

"13.8. If during the first three fiscal years of the Agreement beginning fiscal year 1997/1998, the Treasury Board of Canada makes available to the Department of Human Resources Development additional sums for former federal employees transferred to New Brunswick under the Agreement, Canada agrees to increase, for those years, the maximum contribution payable to New Brunswick for administration costs by an amount equal to those sums."

Review of level of funding and of allocation formula

13.9 Canada agrees to review, within twenty-four months after signing of this Amending Agreement, the overall level of funding to be made available for expenditure under Part II of the Act, basing its review in part on the results obtained under the labour market development agreements entered into with New Brunswick and other provinces and territories as a result of May 30, 1996 proposal on labour market development.

13.10 Canada also agrees to establish an intergovernmental process aimed at reviewing the current methodology for the allocation of employment insurance funds in support of expenditures under Part II of the Act and at proposing options which put emphasis on matters such as achievement of results and generation of savings to the Employment Insurance Account."

9. Section 23.1 of the Agreement is deleted and replaced by the following:

"23.1 This agreement cannot be unilaterally terminated during the first three fiscal years of the Agreement. Canada and New Brunswick agree to complete a review of the Agreement during 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 two calendar years' written notice of intention to terminate to the other party."

10. Annex 9 to the Agreement is amended by replacing the table entitled "Projection of EI-Related Administrative Resources Under New Labour Market Arrangements – 1997-1998 Onwards" attached to the September 25, 1996 letter with the revised table set out in the Schedule to this Amending Agreements.

11. The Agreement in all other respects shall remain the same.

12. This Amending Agreement shall be read together with the Agreement and shall take effect as if its provisions were contained in the Agreement.

13. This Amending Agreement is made in English and French and both versions are equally authoritative.

Executed on behalf of Canada by this 8th day of February1998.

Minister of Human Resources Development

Witness: Daniel Miller

Per: AB Ferguson

Regional Executive Head

Human Resources Development Canada

New Brunswick Region

Canada Employment Insurance Commission

Witness: Daniel Miller

Per: AB Ferguson

Regional Executive Head

Human Resources Development Canada

New Brunswick Region

Signed on behalf of New Brunswick this 23rd day of December 1998

Minister of Labour

Per: Joan Kingston

Minister of Human Resources Development

Witness: Natalie Lavoie

Per: Georgie M. Day

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