Agreement to Amend the Canada-Prince Edward Island Labour Market Development Agreement (Seasonal)

Information for reference

This text copy of the bilateral transfer agreement between the Government of Canada Prince Edward Island 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

PEI: Prince Edward Island

Prince Edward Island: The Government of Prince Edward Island

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 Prince Edward Island (hereinafter referred to as "Prince Edward Island") represented by the Minister of Workforce and Advanced Learning

Hereinafter referred to as “the parties”

Preamble

Whereas the parties concluded the Canada-Prince Edward Island Labour Market Development Agreement (“Canada-Prince Edward Island LMDA”) on September 5, 2008;

Whereas the Canada-Prince Edward Island LMDA was amended on May 22, 2009, December 15, 2016, and March 27, 2018;

Whereas Canada and Prince Edward Island 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 the PEI Benefits and Measures for fiscal years 2018-2019 and 2019-2020 under the Canada-Prince Edward Island LMDA to support these workers;

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

Clauses

1. The Canada-Prince Edward Island LMDA is amended by adding the following heading and Article after Article 14C:

   “Targeted time-limited increase in contribution to costs of PEI 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 Prince Edward Island under Article 14 based on the following allocation methodology, rounded to the nearest dollar.

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

   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-Prince Edward Island LMDA is amended by adding the following heading and Article, after Article 16.3:

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

   16.4 Canada will make payments of its increase in contribution to Prince Edward Island towards the costs of the PEI 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 Prince Edward Island. This request must be received by Canada no later than March 1, 2019; and,

   16.4.2 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 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 Prince Edward Island for each installment. These requests must be received by Canada after March 1, 2019, and no later than February 3, 2020.”

3. The Canada-Prince Edward Island 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 Economic Development and Tourism.

5. In all other respects, the Canada-Prince Edward Island LMDA shall remain unchanged.

6. This amending agreement shall be read together with the Canada-Prince Edward Island LMDA as amended from time to time and takes effect as if its provisions were part of the Canada-Prince Edward Island LMDA.

7. This amending agreement comes into force once it has been signed by both parties.

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

Signed on behalf of Prince Edward Island in Prince Edward Island on this 15 day of March 2019