Agreement to amend the Canada - Ontario Labour Market Development Agreement

Information for reference

This text copy of the bilateral transfer agreement between the Government of Canada and Ontario 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
LMDA: Labour Market Development Agreement
Ontario: The Government of Ontario

Between

The Government of Canada, hereinafter referred to as “Canada”, represented by the Minister of Employment and Social Development styled as the Minister of Employment, Workforce Development and Disability Inclusion

And

The Government of Ontario, hereinafter referred to as “Ontario”, represented by the Minister of Labour Training and Skills Development

Preamble

Whereas the parties concluded the Canada-Ontario Labour Market Development Agreement (“Canada-Ontario LMDA”) on November 23, 2005;

Whereas the Canada-Ontario LMDA was amended on May 22, 2009, December 15, 2016, March 29, 2018 and March 28, 2019;

Whereas Canada has announced targeted support measures for workers affected by economic adjustments in the steel and aluminum 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 Ontario benefits and measures for fiscal year 2019 to 2020 provided under the Canada-Ontario LMDA to support workers directly or indirectly affected by these economic adjustments;

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

Clauses

  1. The Canada-Ontario LMDA is amended by adding the following heading and section after section 14F:

    “Targeted time-limited increase in contribution to costs of Ontario benefits and measures to support workers in the steel and aluminum and related industries

    14G Notwithstanding anything in section 14, in fiscal year 2019 to 2020, Canada agrees to increase the maximum contribution payable to Ontario under section 14 based on the following allocation methodology, rounded to the nearest dollar:

    A funding floor of $500,000 is provided to Ontario if there is direct and indirect employment in steel and aluminum in the Province of Ontario and where the following formula results in an allocation below $500,000:

    • (A/B) x $25 million
    • Where
    • A is the number of workers directly and indirectly employed in the steel and aluminum industries in Ontario 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 Ontario is not receiving the funding floor and where there is direct and indirect employment in steel and aluminum in the Province of Ontario, the maximum contribution payable under section 14G towards the costs of Ontario benefits and measures is determined by the following formula, rounded to the nearest dollar:

    • (A/B) x C
    • Where
    • A is the number of workers directly and indirectly employed in the steel and aluminum industries in Ontario 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.”

  2. The Canada-Ontario LMDA is amended by adding the following heading and section, after section 16.6:

    “Targeted time-limited increase in contribution to costs of Ontario benefits and measures to support workers in the steel and aluminum and related industries

    16.7 Canada will make payments of its increase in contribution to Ontario towards the costs of Ontario benefits and measures as determined under section 14G in 2 installments, as follows:

    • 16.7.1 The amount of the first installment equal to one-half (50%) of the increase determined under 14G will be paid upon the signing by both parties of this amending agreement; and
    • 16.7.2 The amount of the second installment equal to one-half (50%) of the increase determined under 14G will be paid upon a written request from Ontario, and such request must be received by Canada no later than March 9, 2020.”
  3. The Canada-Ontario LMDA is amended by adding the following, after section 8.8:

    “8.9 The parties agree that results measurement and reporting related to the increase of funding provided under section 14G for fiscal year 2019 to 2020, will be consistent with the process described in Annex 5 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 Employment Insurance 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 Ontario’s Deputy Minister of Education and Training.
  5. In all other respects, the Canada-Ontario LMDA shall remain unchanged.
  6. This amending agreement shall be read together with the Canada-Ontario LMDA as amended from time to time and takes effect as if its provisions were part of the Canada-Ontario LMDA.
  7. This amending agreement comes into force once it has been signed by both parties.

Signed on behalf of Canada
In Ottawa, Ont.
this 24th day of February 2020

_________________________________________
The Honourable Carla Qualtrough
Minister of Employment and Social Development styled as the Minister of Employment, Workforce Development and Disability Inclusion

_________________________________________
Graham Flack
Chairperson, Canada Employment Insurance Commission

Signed on behalf of Ontario
in Ontario
this 4th day of March 2020

_______________________________________
The Honourable Monte McNaughton
Minister of Labour, Training and Skills Development

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