Agreement to Amend the Canada - Newfoundland and Labrador Labour Market Development Agreement

Information for reference

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

List of acronyms and abbreviations

Canada: The Government of Canada
EI: Employment Insurance
LMDA: Labour Market Development Agreement
NL: Newfoundland and Labrador
Newfoundland and Labrador: The Government of Newfoundland and Labrador

Between

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

And

The Government of Newfoundland and Labrador, hereinafter referred to as “Newfoundland and Labrador”, represented by the Minister of Advanced Education, Skills and Labour and the Minister for Intergovernmental and Indigenous Affairs.

Hereinafter referred to as “the parties”.

Preamble

Whereas the parties concluded the Canada-Newfoundland and Labrador Labour Market Development Agreement (“Canada-Newfoundland and Labrador LMDA”) on September 4, 2008;

Whereas the Canada-Newfoundland and Labrador LMDA was amended on June 22, 2009, March 2, 2017 and March 28, 2018;

Whereas Canada has announced targeted support measures for workers affected by economic adjustments in the steel and aluminum industries, as well as for workers in seasonal industries;

Whereas the steel and aluminum industries and related industries are currently facing economic adjustments which have resulted in negative impacts on Canadian jobs and workers, Canada is prepared to provide a time-limited targeted increase to the federal contribution to the costs of NL Benefits and Measures for fiscal year 2018-2019 provided under the Canada-Newfoundland and Labrador LMDA to support workers directly or indirectly affected by these economic adjustments;

Whereas Canada and Newfoundland and Labrador recognize that workers in seasonal industries are an important part of Canada’s continued prosperity and experience unique labour market challenges due to the cyclical nature of seasonal work and, given Canada announced in its Budget 2018 that it would make available additional funding for 2018-2019 and 2019-2020 to the provinces and territories under the Labour Market Development Agreements to support workers in seasonal industries, Canada is prepared to provide a time-limited targeted increase to the federal contribution to the costs of the NL Benefits and Measures for fiscal years 2018-2019 and 2019-2020 under the Canada-Newfoundland and Labrador LMDA to support these workers;

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

Clauses

  1. The Canada-Newfoundland and Labrador LMDA is amended by adding the following headings and Articles after Article 14C:

    “Targeted time-limited increase in contribution to costs of NL Benefits and Measures to support workers in the steel and aluminum and related industries

    14D Notwithstanding anything in Article 14, in fiscal year 2018-2019, Canada agrees to increase the maximum contribution payable to Newfoundland and Labrador under Article 14 based on the following allocation methodology, rounded to the nearest dollar.

    A funding floor of $500,000 is provided to Newfoundland and Labrador if there is direct and indirect employment in steel and aluminum and where the following formula results in an allocation below $500,000:
    • (A/B) x $25 million

      Where

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

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

    If Newfoundland and Labrador is not receiving the funding floor and where there is direct and indirect employment in steel and aluminum, the maximum contribution payable under Article 14D towards the costs of NL Benefits and Measures is determined by the following formula, rounded to the nearest dollar:
    • (A/B) x C

      Where

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

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

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

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

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

    Funding for fiscal year 2019-2020 may be revised to take into account actual job losses related to the economic adjustments in the steel and aluminum industries.

    Targeted time-limited increase in contribution to costs of NL Benefits and Measures to support workers in seasonal industries

    14E Notwithstanding anything in Article 14, for fiscal years 2018-2019 and 2019-2020, Canada agrees to increase the total maximum contribution payable to Newfoundland and Labrador under Article 14 based on the following allocation methodology, rounded to the nearest dollar.

    A funding floor of $500,000 is provided to Newfoundland and Labrador if the following formula results in an allocation below $500,000:
    • (A/B) x $41 million

      Where

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

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

    If Newfoundland and Labrador is not receiving the funding floor, the total maximum contribution payable under Article 14E towards the costs of NL Benefits and Measures is determined by the following formula, rounded to the nearest dollar:
    • (A/B) x C

      Where

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

      B is the number of EI Regular Beneficiaries (total completed seasonal claims according to EI Program administrative data) in 2016-2017 in all EI Economic Regions in Canada where the unemployment rate was over 6.3%, excluding provinces and territories that are receiving the $500,000 funding floor; and
      C is the $41 million investment to support workers in seasonal industries made available to provinces and territories, less the amount distributed under the $500,000 funding floor.”
  2. The Canada-Newfoundland and Labrador LMDA is amended by adding the following headings and Articles, after Article 16.3:

    “Targeted time-limited increase in contribution to costs of NL Benefits and Measures to support workers in the steel and aluminum and related industries

    16.4 Canada will make payments of its increase in contribution to Newfoundland and Labrador towards the costs of the NL Benefits and Measures as determined under Article 14D in two installments, as follows:
    • 16.4.1 The amount of the first installment equal to one-half (50%) of the increase determined under Article 14D will be paid upon the signing by both parties of this amending agreement; and

      16.4.2 The amount of the second installment equal to one-half (50%) of the increase determined under Article 14D will be paid upon a written request from Newfoundland and Labrador, and such request must be received by Canada no later than March 1, 2019.

    Targeted time-limited increase in contribution to costs of NL Benefits and Measures to support workers in seasonal industries

    16.5 Canada will make payments of its increase in contribution to Newfoundland and Labrador towards the costs of the NL Benefits and Measures as determined under Article 14E, as follows:
    • 16.5.1 The amount for 2018-2019 will be paid in two equal installments totaling (50%) of the increase determined under Article 14E. The amount of the first installment will be paid upon the signing by both parties of this amending agreement and the amount of the second installment will be paid at the written request of Newfoundland and Labrador. This request must be received by Canada no later than March 1, 2019; and,

      16.5.2 Subject to the approval of expenditures under Part II of the EI Act for 2019-2020 by Canada, the amount for 2019-2020 will be paid in two equal installments totaling (50%) of the increase determined under Article 14E. The amount of the first installment and the amount of the second installment will be paid after April 1, 2019 upon the written request of Newfoundland and Labrador for each installment. These requests must be received by Canada after March 1, 2019 and no later than February 3, 2020.”
  3. The Canada-Newfoundland and Labrador LMDA is amended by adding the following, after Article 8.3:

    “8.4 The parties agree that results measurement and reporting related to the increase of funding provided under Article 14D for fiscal year 2018-2019 and Article 14E for fiscal years 2018-2019 and 2019-2020, will be consistent with the process described in Annex 4 to this Agreement entitled ‘Performance Measurement Strategy and Targets’.”
  4. This amending agreement will not impact the allocation methodology established by Canada for allocating among provinces and territories the funding approved each year by Canada for expenditures under Part II of the EI Act (currently $1.95 billion per year), which, the parties acknowledge, is the allocation method described in the letter dated June 26, 1996, from the Deputy Minister of the Department of Human Resources Development to the Deputy Minister of Post-Secondary Education and Skills Training.
  5. In all other respects, the Canada-Newfoundland and Labrador LMDA shall remain unchanged.
  6. This amending agreement shall be read together with the Canada-Newfoundland and Labrador LMDA as amended from time to time and takes effect as if its provisions were part of the Canada-Newfoundland and Labrador LMDA.
  7. This amending agreement comes into force once it has been signed by both parties.

Signed on behalf of Canada
in Gatineau
this 22 day of March 2019

____________________________
The Honourable Jean-Yves Duclos
Minister of Employment and Social Development styled as the Minister of Families, Children and Social Development

____________________________
Graham Flack
Chairperson, Canada Employment Insurance Commission

Signed on behalf of Newfoundland and Labrador
in Newfoundland and Labrador
this 25 day of March 2019

____________________________
The Honourable Bernard Davis
Minister of Advanced Education, Skills and Labour

____________________________
The Honourable Dwight Ball
Minister for Intergovernmental and Indigenous Affairs

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