Agreement to amend the Canada- Prince Edward Island Labour Market Development Agreement (Steel and Aluminum)

Information for reference

This text copy of the bilateral transfer agreement between the Government of Canada and 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 has announced targeted support measures for workers affected by economic adjustments in the forest sector;

Whereas the forest sector and related industries are currently experiencing economic adjustments which have resulted in negative impacts on Canadian jobs and workers;

Whereas Canada has broadened eligibility of economic adjustment measures approved under the Softwood Lumber Action Plan for workers directly or indirectly affected in 2018-2019;

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 year 2018-2019 under the Canada-Prince Edward Island LMDA to support workers that are directly or indirectly affected by these economic adjustments;

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 14D:

    “Targeted time-limited increase in contribution to costs of PEI Benefits and Measures to support workers in the steel and aluminum and related industries

    14E Notwithstanding anything in Article 14, in fiscal year 2018-2019, Canada agrees to increase the 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 there is direct and indirect employment in steel and aluminum 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 Prince Edward Island 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 Prince Edward Island is not receiving the funding floor and where there is direct and indirect employment in steel and aluminum, the maximum contribution payable under 14E 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 workers directly and indirectly employed in the steel and aluminum industries in Prince Edward Island 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.

    Funding for fiscal year 2019-2020 may be revised to take into account actual job losses related to the economic adjustments in the steel and aluminum industries.”

  2. The Canada-Prince Edward Island LMDA is amended by adding the following heading and Article, after Article 16.4:

    “Targeted time-limited increase in contribution to costs of PEI Benefits and Measures to support workers in the steel and aluminum and related industries

    16.5 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 14E in two installments, as follows:

    16.5.1 The amount of the first installment equal to one-half (50%) of the increase determined under Article 14E will be paid upon the signing by both parties of this amending agreement; and

    16.5.2 The amount of the second installment equal to one-half (50%) of the increase determined under Article 14E will be paid upon a written request from Prince Edward Island, and such request must be received by Canada no later than March 1, 2019.”

  3. The Canada-Prince Edward Island LMDA is amended by adding the following, after Article 8.3:

    “8.4 The parties agree that results measurement and reporting related to the increase of funding provided under Article 14E for fiscal years 2018-2019, 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

____________________________

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 Prince Edward Island

in Prince Edward Island

this 15 day of March 2019

____________________________

The Honourable Sonny Gallant

Minister of Workforce and Advanced Learning

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