Canada – Nunavut Amending Agreement

Note: By agreement of the Parties, the agreement was signed in English only. The French version is provided for convenience only. In the event of a conflict with the English version, the English version prevails.

Between

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

and

The Government of Nunavut (herein referred to as "Nunavut", as represented by the Minister of Education

Whereas Canada, as represented by the Canada Employment Insurance Commission and the Minister of Human Resources and Skills Development, and Nunavut entered into a Labour Market Development Agreement (the “Agreement”) on May 11, 2000 pursuant to which Canada and Nunavut agreed to certain arrangements relating to the assumption by Nunavut of an expanded role in the delivery of labour market programs and services in Nunavut with financial assistance provided by Canada under section 63 of the Employment Insurance Act;

Whereas sections 11.2 to 11.6 of the Agreement provide for the payment each year by Canada of a maximum annual contribution towards the costs of Nunavut benefits and measures incurred in that year of an amount that was to be determined in accordance with the methodology established by Canada for allocating among provinces and territories the funding approved for these costs each year by Canada's Treasury Board in the annual expenditure plan under Part II of the Employment Insurance Act;

Whereas the level of funding approved in the annual expenditure plans by Canada’s Treasury Board for allocation among provinces and territories for payments for costs referred to in the second recital above for purposes of implementing labour market development agreements entered into with provinces and territories under Part II of the Act has remained fixed at $1.95B since fiscal year 2001/02;

Whereas the recent economic downturn in the economy has given rise to concerns about an increase in unemployment in Canada and the need to provide assistance to the significant number of workers expected to be laid off, who will have worked for extended periods of time, and who will require assistance to change occupations or industries as a result of structural adjustment;

Whereas it is expected that there will be an increased demand for support for the unemployed under labour market programs provided by provinces and territories that are funded under labour market agreements entered into under Part II of the Employment Insurance Act;

Whereas in response to the concerns referred to above, the Government of Canada has agreed to provide a two-year temporary annual increase in funding, over the global level of funding referred to in the second recital above, of $500M per year for fiscal years 2009/10 and 2010/11, to be allocated among provinces or territories for costs referred to in the third recital above to address new demand for labour market programming;

Whereas the additional $500M per year will be segregated in a special, temporary allotment within Canada’s annual expenditure plan under Part II of the Employment Insurance Act and allocated among provinces and territories in accordance with a methodology based on each province or territory’s share of the unemployed;

Whereas to access this additional funding, it is necessary for the parties to amend the financial provisions of the Agreement to provide for a temporary increase in Canada’s current maximum contributions towards the costs of the Nunavut’s Territorial benefits and measures and related administration costs in fiscal years 2009/10 and 2010/11;

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

1. The Agreement is amended by adding after section 11 the following heading and section:

Targeted Two Year Increase in Contribution to Costs of Nunavut Benefits and Measures

“11A Notwithstanding anything in section 11, in each of fiscal years 2009/10 and 2010/11, Canada agrees to increase the maximum contribution payable under section 11 towards the costs of the Nunavut benefits and measures by an amount not exceeding the amount , rounded to the nearest thousand , determined by the formula

C x (A/B)

where

C is $500 million;

A is the average number of unemployed persons in Nunavut calculated by averaging,

• (a) for fiscal year 2009/10, the number of unemployed persons in Nunavut each month during the months of August 2008 to, and including January 2009 as determined by Statistics Canada Labour Force Survey data for those months; and
• (b) for fiscal year 2010/11, the number of unemployed persons in Nunavut each month during the months of August 2009 to, and including January 2010, as determined by Statistics Canada Labour Force Survey data for those months; and

B is the average of the total number of unemployed persons in Canada calculated by averaging,

• (a) for fiscal year 2009/10, the total number of unemployed persons in Canada in each month during the months of August 2008 to, and including, January 2009, as determined by Statistics Canada Labour Force Survey data for those months, and
• (b) for fiscal year 2010/11, the total number of unemployed persons in Canada each month during the months of August 2009 to, and including, January 2010, as determined by Statistics Canada Labour Force Survey data for those months.

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

3. This Amending Agreement shall be read together with the Agreement as if its provisions were contained in the Agreement.

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

at this 16^th day of July 2009.

Signed on behalf of Nunavut this 08 day of July 2009