Agreement to Amend the Canada- Nunavut Labour Market Development Agreement (Signed on March 27, 2019) 

List of acronyms and abbreviations

Canada: The Government of Canada

EI: Employment Insurance

LMDA: Labour Market Development Agreement

NU: Nunavut

Nuvanut: The Government of Nunavut

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 Nunavut (hereinafter referred to as "Nunavut") represented by Minister of Family Services.

Hereinafter referred to as “the parties”

Preamble

Whereas the parties concluded the Canada-Nunavut Labour Market Development Agreement (“Canada-Nunavut LMDA”) on May 11, 2000;

Whereas the Canada-Nunavut LMDA was amended on May 4, 2004, July 16, 2009, November 21, 2014, November 24, 2016 and August 24, 2018;

Whereas Canada announced in Budget 2017 an additional $1.8 billion over six years, starting in 2017-2018, in the Labour Market Development Agreements to allow more individuals to receive skills training and employment supports;

Whereas Canada and Nunavut did not finalize the amendment to the Labour Market Development Agreements in 2017-2018 to flow Nunavut’s share of the additional Budget 2017 funding for that fiscal year;

Whereas this investment is intended to help workers improve their skills to find and keep good jobs, Canada is prepared to provide Nunavut, in 2018-2019, with its share of additional Budget 2017 funding for the costs of Nunavut benefits and measures for fiscal year 2017-2018 under the Canada-Nunavut LMDA;

Whereas Canada and Nunavut 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 Nunavut benefits and measures for fiscal years 2018-2019 and 2019-2020 under the Canada-Nunavut LMDA to support workers in seasonal industries;

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

Clauses

1. The Canada-Nunavut LMDA is amended by adding the following headings and sections after section 11C:

   "Targeted time-limited increase in contribution to costs of Nunavut benefits and measures to support workers in seasonal industries"

   11D Notwithstanding anything in section 11, for fiscal years 2018-2019 and 2019-2020, Canada agrees to increase the total maximum contribution payable to the Nunavut under section 11 based on the following allocation methodology, rounded to the nearest dollar.

   A funding floor of $500,000 is provided to the Nunavut 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 Employment Insurance 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 Nunavut; and

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

   If the Nunavut is not receiving the funding floor, the total maximum contribution payable under section 11 towards the costs of Nunavut 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 Employment Insurance 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 Nunavut;

   B is the number of EI Regular Beneficiaries (total completed seasonal claims according to Employment Insurance 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.

   Contribution towards the costs of Nunavut benefits and measures for fiscal year 2017-2018

   11E Notwithstanding anything in Section 11, in fiscal year 2018-2019, Canada agrees to increase the contribution payable to Nunavut under Section 11 by the amount of $146,984.”

2. The Canada-Nunavut LMDA is amended by adding the following headings and sections, after section 12.3:

   “Targeted time-limited increase in contribution to costs of Nunavut benefits and measures to support workers in seasonal industries

   12.4 Canada will make payments of its increase in contribution to the Nunavut towards the Costs of Nunavut benefits and measures as determined under section 11D, as follows:

   12.4.1 The amount for 2018-2019 will be paid in two equal installments totaling (50%) of the increase determined under section 11D. 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 the Nunavut. This request must be received by Canada no later than March 1, 2019; and,

   12.4.2 Subject to the approval by Canada of expenditures under Part II of the EI Act for 2019-2020, the amount for 2019-2020 will be paid in two equal installments totaling (50%) of the increase determined under section 11D. 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 the Nunavut for each installment. These requests must be received by Canada after March 1, 2019 and no later than February 3, 2020.”

   Contribution towards the costs of Nunavut benefits and measures for fiscal year 2017-2018

   12.5 In fiscal year 2018-2019, Canada will pay to Nunavut the amount determined in section 11E. This amount will be paid upon the signing by both parties of this amending agreement.”

3. The Canada-Nunavut LMDA is amended by adding the following, after section 6.7:

   “6.8 The parties agree that results measurement and reporting related to the increase of funding provided under sections 11D for fiscal years 2018-2019 and 2019-2020 and section 11E for fiscal year 2018-2019 will be consistent with the process described in Annex 3 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 provinces and territories which was extended to Nunavut after it became a territory on April 1, 1999 leading to the signature of the Labour Market Development Agreement on May 11, 2000.
5. In all other respects, the Canada-Nunavut LMDA shall remain unchanged.
6. This amending agreement shall be read together with the Canada-Nunavut LMDA as amended from time to time and takes effect as if its provisions were part of the Canada-Nunavut LMDA.
7. This amending agreement comes into force once it has been signed by both parties.

Signed on behalf of Canada in Gatineau this 27 day of March, 2019

Signed on behalf of Nunavut in Nunavut this 27 day of March, 2019