Agreement to Amend the Canada - Nova Scotia Labour Market Development Agreement

Information for reference

This text copy of the bilateral transfer agreement between the Government of Canada and Nova Scotia 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
Nova Scotia: The Government of Nova Scotia

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 Nova Scotia (hereinafter referred to as “Nova Scotia”), represented of the Minister of Labour and Advanced Education

Hereinafter referred to as “the parties”.

Preamble

Whereas the parties concluded the Canada-Nova Scotia Labour Market Development Agreement (“Canada-Nova Scotia LMDA”) on June 13, 2008;

Whereas the Canada-Nova Scotia LMDA was amended on June 13, 2008, May 1, 2009, November 4, 2016 and March 27, 2018;

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

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

Whereas Canada is prepared to provide a time-limited targeted increase to the federal contribution to the costs of Nova Scotia Benefits and Measures for fiscal years 2018-2019 and 2019-2020 under the Canada-Nova Scotia LMDA to support workers in seasonal industries;

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

Clauses

  1. The Canada-Nova Scotia LMDA is amended by adding the following heading and Article after Article 14C:

    “Targeted time limited increase in contribution to costs of Nova Scotia Benefits and Measures to support workers in seasonal industries

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

    A funding floor of $500,000 is provided to Nova Scotia 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 Nova Scotia; 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 Nova Scotia is not receiving the funding floor, the total maximum contribution payable under Article 14D towards the costs of Nova Scotia 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 Nova Scotia;

      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-Nova Scotia LMDA is amended by adding the following heading and Article after Article 16.3:

    “Targeted time limited increase in contribution to costs of Nova Scotia Benefits and Measures to support workers in seasonal industries

    16.4 Canada will make payments of its increase in contribution to Nova Scotia towards the costs of Nova Scotia Benefits and Measures as determined under Article 14D, as follows:
    • 16.4.1 The amount for 2018-2019 will be paid in two equal installments totaling (50%) of the increase determined under Article 14D. 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 Nova Scotia. This request must be received by Canada no later than March 1, 2019; and,

      16.4.2 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 14D. 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 Nova Scotia for each installment. These requests must be received by Canada after March 1, 2019 and no later than February 3, 2020.”
  3. The Canada-Nova Scotia LMDA is amended by adding the following, after Article 8.2:

    “8.3 The parties agree that results measurement and reporting related to the increase of funding provided under Article 14D 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 Community Services.
  5. In all other respects, the Canada-Nova Scotia LMDA shall remain unchanged.
  6. This amending agreement shall be read together with the Canada-Nova Scotia LMDA as amended from time to time and takes effect as if its provisions were part of the Canada-Nova Scotia LMDA.
  7. This amending agreement comes into force once it has been signed by both parties.

Signed on behalf of Canada
in Gatineau
this 18 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 Nova Scotia
in Halifax
this 26 day of March, 2019

____________________________
The Honourable Labi Kousoulis
Minister of Labour and Advanced Education

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