Canada – Québec Labour Market Development Agreement in Principle

Recitals

April, 1997

Between

the Government of Canada, hereinafter referred to as "Canada," represented by the Prime Minister of Canada, the Minister of Human Resources Development and the Canada Employment Insurance Commission

And

the Government of Québec, hereinafter referred to as "Québec," represented by the Premier ministre du Québec, the Ministre d'État de l'Emploi et de la Solidarité and the Ministre délégué aux Affaires intergouvernementales canadiennes

Canada and Québec agree as follows:

1. Purpose, Scope and Objectives of Agreement

1.1 Purpose and scope of agreement

Canada and Québec agree that the purpose of this Agreement is to establish, in accordance with the roles and responsibilities hereinafter agreed upon, the principles, negotiating framework and time frame for concluding an agreement with respect to the implementation of Québec's active employment measures funded by the Employment Insurance Account.

1.2 Objectives of agreement

Québec and Canada shall work towards the following objectives with respect to the labour market:

1. Offering the population of Québec high-quality labour market services.
2. Offering integrated employment measures and services to all Québecers who are employed or seeking employment.
3. Improving the operation of the labour market.
4. Eliminating overlap and duplication.
5. Involving labour market and employment partners in the management of active employment measures.
6. Adopting a regionalized operational approach in administering active employment measures intended for employment insurance users, based on local decision-making and achievement of results.
7. Giving priority to integrating unemployed persons into the labour market.
8. Encouraging individuals to become financially autonomous, particularly through holding employment, in order to reduce their dependence on government assistance.
9. Mobilizing individuals and labour market and employment partners to take an active part in labour market re-entry and assist unemployed individuals with job re-entry.

2. Roles and Responsibilities of the Government

2.1 Québec shall be responsible for:

• 2.1.1 determining the labour market priorities for Québec, taking into account, for the funds from the Employment Insurance Account, the objectives agreed upon and the needs identified at the local and regional levels;
• 2.1.2 designing, implementing and evaluating active employment measures, funded by the Employment Insurance Account, which are in conformity with the objectives agreed upon by the parties;
• 2.1.3 providing a labour exchange service and, to this end, establishing appropriate links with Canada;
• 2.1.4 determining the service needs of employment insurance users;
• 2.1.5 providing referral to appropriate services and providing employment counselling;
• 2.1.6 helping people establish plans for acquisition of the occupational skills they need and guiding them in a successful job search;
• 2.1.7 producing the Québec labour market information needed to assume the responsibilities conferred on it in this Agreement, as well as disseminating in Québec labour market information relating to the implementation of this Agreement; and
• 2.1.8 participating in the improvement of the pan-Canadian labour market information system and maintaining a link with it, in accordance with the principle of free movement of persons, as established in the Agreement on Internal Trade.

2.2 Canada shall be responsible for:

• 2.2.1 the Employment Insurance Account;
• 2.2.2 delivering unemployment benefits, including those paid to active employment insurance claimants who are participating in active employment measures;
• 2.2.3 producing and disseminating the labour market information it needs to exercise its responsibilities recognized under this Agreement and those associated with management of the Employment Insurance Account and with encouraging interprovincial mobility;
• 2.2.4 administering pan-Canadian activities funded by the Employment Insurance Account, including interprovincial sectoral interventions, and taking action in economic crisis situations.

2.3 Canada and Québec shall be responsible for working in co-operation to improve research and innovation with respect to the labour market in Québec.

2.4 Canada and Québec agree to deal with sectoral activities within the framework of the implementation agreement.

3. Provisions with Respect to Active Employment Measures and the Functions of the National Employment Service (NES) Covered by the Agreement

3.1 Active employment measures funded by the Employment Insurance Account

3.1.1 Active employment measures are aimed at facilitating access to the labour market and to employment, as well as at improving occupational skills and the operation of the labour market. They exercise their effects by modifying the behaviour of economic agents, to reduce the impact or duration of unemployment in the short and long terms, to protect existing jobs or to create jobs.

3.1.2 Active employment measures are those funded by employment insurance and which are included in the following categories of intervention: i) job preparation, ii) entry into employment, iii) job retention, iv) direct job creation and v) employment stabilization.

3.1.3 The active employment measures include financial assistance, counselling and support.

Those which are the subject of this Agreement are:

A) employment benefits to enable employment insurance participants to obtain employment, namely those benefits to:

1. encourage employers to hire them;
2. encourage them to accept employment by offering incentives such as temporary earnings supplements;
3. help them start businesses or become self-employed;
4. provide them with employment opportunities through which they can gain work experience to improve their long-term employment prospects; and
5. help them obtain skills for employment, ranging from basic to advanced skills.

B) support measures in support of the national employment service to support

1. organizations that provide employment assistance services to unemployed persons;
2. employers, employee or employer associations, community groups and communities in developing and implementing strategies for dealing with labour force adjustments and meeting human resources requirements;
3. research and innovative projects, within the parameters of paragraph 2.3, to identify better ways of helping persons prepare for, return to or keep employment and be productive participants in the labour force.

3.1.4 In the case of direct job creation, grants aimed mainly at covering the capital costs of businesses and general grants to promote employment shall not be taken into account.

3.1.5 Government expenditures on active employment measures shall not include expenditures for unemployment benefits or last-resort assistance paid to income security recipients while they are participating in these active measures.

3.2 Functions of the national employment service for which Québec shall be responsible

3.2.1 These functions include:

• labour exchange;
• labour market information, as described in paragraph 2.1.7.

3.2.2 In addition, Québec shall transmit to the pan-Canadian labour market information system the information it has gathered at the local and Québec levels, particularly further to the responsibilities defined in this Agreement.

3.2.3 National employment service users are the individuals and organizations provided with assistance by the service - that is, workers, employers, employee associations and private or public organizations that provide workers with employment assistance services.

3.3 Other active employment measures funded by the Employment Insurance Account

In the case of new active employment measures funded by employment insurance, other than those which are the subject of this Agreement, the parties agree that they will be subject to the provisions of this Agreement, in conformity with the objectives, roles and responsibilities defined herein.

3.4 Employment insurance participant

In this clause, as throughout this Agreement, the term "employment insurance participant" means an insured person under employment insurance who requests assistance under an employment benefit and when requesting the assistance, is an unemployed person:

1. for whom an employment insurance benefit period has been established or has ended within the previous thirty-six months; or
2. for whom an employment insurance benefit period has been established in the previous sixty months and who:
   1. was paid parental or maternity benefits, under the Employment Insurance Act, during the benefit period,
   2. subsequently withdrew from active participation in the labour force to care for one or more of their newborn children or one or more children placed with them for the purpose of adoption, and
   3. is seeking to re-enter the labour market.

3.5 Employment insurance user

In this clause, as throughout this Agreement, the term "employment insurance user" means any person likely to have recourse to the active employment measures and the functions of the national employment service.

4. Principles Governing Services to Users and Service Delivery Structure

4.1 Services to users

4.1.1 The parties agree on the following principles with respect to services to users:

• convenient access to programs and services;
• courteous, considerate and timely service;
• flexible and innovative approaches to the labour market and the community's needs;
• optimization of individuals' potential and respect for human dignity; and
• special attention to groups with specific needs.

4.1.2 Québec shall deliver the active employment measures and the national employment service functions for which it is responsible to all employment insurance users, regardless of the length of time for which that person has been a resident of Québec.

4.1.3 Québec agrees that priority access to active employment measures will be given to active employment insurance claimants. Priority access to screening and employment counselling shall also be given to active employment insurance claimants.

4.1.4 With respect to arrangements relating to the language of service in which Québec will deliver the active measures and the national employment service functions for which Québec shall become responsible under this Agreement, the agreement of the parties in that regard was established through their exchange of letters on March 25 and 28 and April 8, 1997, copies of which are attached as an Appendix, with which both parties state that they are satisfied, and which form an integral part of this Agreement.

4.1.5 In this clause, as throughout this Agreement, the term "active employment insurance claimant" means the employment insurance claimant for whom a benefit period is established.

4.2 Service delivery structure

With a view to maintaining or improving the quality of services to users, the parties agree to specify in the implementation agreement:

• the service delivery structure;
• the nature of the services provided;
• the timetable for relocation and organization of points of service and transferred employees;
• the necessary arrangements for purposes of service delivery;
• the appropriate links between the respective information systems.

Accountability

5.1 The following accountability framework developed jointly by Québec and Canada constitutes an essential element of any agreement between them regarding active employment measures.

5.2 The accountability framework, making it possible to achieve the labour market objectives being pursued, will focus on:

• participation of the employment insurance users who are the subject of the interventions;
• obtaining employment and changes in the behaviour of the employment insurance user;
• the impact of the interventions on the Employment Insurance Account.

5.3 The accountability framework also includes provisions with respect to establishment of results targets, financial audit, evaluation, detecting and controlling abuse, as well as exchange of information and data.

5.4 Measurement of results

5.4.1 Annual plan

In view of the labour market objectives pursued in this Agreement;

and whereas the funds provided as financial contributions in connection with this Agreement are intended to support the achievement of those objectives;

and whereas an accountability framework is needed, among other things in order to measure the results obtained in use of the funds provided as financial contributions from the Employment Insurance Account, and in view of the fact that both parties are accountable to their respective legislatures;

Québec shall, in an annual plan, provide Canada with a description of the employment benefits and support measures it intends to provide in Québec.

This annual plan shall be provided to Canada as soon as possible before the start of the fiscal year and shall describe:

• the problems selected for Québec as a whole in connection with the labour market for which actions are planned over the coming year;
• the range of employment benefits and support measures with which the eligible clientele will be provided;
• the projected costs in connection with use of funds from the Employment Insurance Account for each of the categories of intervention.

5.4.2 Canada agrees that Québec may establish new active employment measures covered by this Agreement and modify those which already exist. In order that these new or modified measures may be funded from Canada's contribution, the parties must agree that these new or modified measures are in conformity with the provisions of section 3.1 in this Agreement.

5.4.3 Basic indicators

In addition, both parties agree:

• to use the following basic indicators to measure results:
  • the number of employment insurance participants who are benefiting from the active employment measures covered by this Agreement, with the emphasis placed on priority access for active employment insurance claimants;
  • the obtaining of employment and observable behavioural changes in employment insurance users with respect to the labour market and development of their skills;
  • the savings generated in the Employment Insurance Account;
• that the mechanisms relating to establishment, follow-up and review of the results targets targets which will, for Québec as a whole, be the subject of ongoing discussion between Québec and Canada and relating to their progressive implementation by Québec, shall be defined in the implementation agreement. The review of results targets shall take into account, among other things, changes in the economic and labour market contexts.

5.5 Evaluation

5.5.1 Canada and Québec recognize the need to evaluate the results of the active employment measures covered by this Agreement, as well as the national employment service functions for which Québec shall become responsible.

5.5.2 Canada and Québec agree on the following elements with regard to the evaluation framework:

• - that the evaluations will be in conformity with recognized practices in this area;
• - that the evaluations will be aimed at determining the effectiveness, conformity and efficiency of the interventions.

5.5.3 Canada and Québec agree to determine in an implementation agreement the arrangements relating to the conducting of evaluations in the spirit of the Agreement on Strategic Initiatives.

5.6 Financial audit and control

5.6.1 Each year, Québec shall submit to Canada a report on use of the fund created for the purposes of managing the sums from the Employment Insurance Account, detailing the costs of each of the programs with respect to active employment measures and the associated administrative costs. This report shall be audited by the Vérificateur général du Québec.

The parties shall agree, within the framework of the implementation agreement, on the matters that may be audited and on the time frames for submitting the audited report to Canada.

5.6.2 Canada and Québec agree to co-operate on development of means for detecting and controlling abuse with respect to the active employment measures covered by this Agreement, and to determine in the implementation agreement by whom and how these means are to be applied.

5.7 Exchange of information and data

5.7.1 Canada and Québec agree to regularly exchange information and data on their activities in the labour market field, with respect to short, medium and long-term results.

5.7.2 Québec agrees, in the context of its responsibilities, to provide Canada with the information and data it needs to assume its responsibility for detecting and controlling abuses in use of Employment Insurance Account funds.

5.7.3 Canada agrees to provide Québec with the information and data it needs on active claimants and employment insurance participants, as well as on pan-Canadian activities, to assume its responsibilities under this Agreement.

5.7.4 Canada and Québec agree that the nature of the information and data exchanged and the arrangements relating to these exchanges will be defined in the implementation agreement.

5.7.5 In their exchanges of information and data, Canada and Québec agree to comply with the legislative provisions respecting privacy and access to information.

5.7.6 Canada and Québec agree that each may use, publish, distribute and allow use of the information, data, analysis tools and other products generated by the work in relation to measurement of results, evaluation, financial audit and control.

6. Human Resources

6.1 Canada and Québec agree to pursue the same values that characterize their management of human resources: fairness, respect and transparency. Human resources decisions shall be the subject of open, clear and timely communications with employees and unions.

Both parties acknowledge the particular expertise and significant contribution of federal employees in the delivery of active employment measures covered by this Agreement.

6.2 The provisions regarding human resources in this Agreement shall apply to employees affected by the 1084 FTEs of Canada covered by this Agreement or the positions left vacant by these employees. The implementation agreement shall specify the number of employees of Canada to be transferred to Québec corresponding to the 1084 FTEs.

6.3 Under the terms of its reasonable job offer pursuant to Part VII of the federal Work Force Adjustment Directive, Québec shall offer indeterminate employees of Canada permanent/regular status within the new receiving organization; this status will be effective at the time of the transfer. Each transferred employee will be granted an employment guarantee for a period of three years.

6.4 With regard to hours, classification and compensation, transferred federal employees shall be paid on a basis of 35 hours a week, at the same or next higher pay scale step, in a Québec job class corresponding to the usual and primary duties they performed in the Public Service of Canada. The difference between federal earnings and Québec earnings shall be paid as a lump sum. Regardless of the type of payment selected by Québec, an employee's annual earnings received at the time of his/her departure from the Public Service of Canada, based on his/her substantive position, will be maintained and will take into account, where appropriate, pay equity awards.

6.5 Seniority acquired by an employee of Canada shall be transferred for the purposes of collective agreement provisions, except as regards staff movements and identification of surplus personnel in Québec. These items will be discussed with a view to reaching an agreement between the parties, when the employee transfer proposal (ETP) is prepared.

6.6 Employees of Canada shall be offered a position in a location less than 40 km from their current place of work, and work location stability shall be guaranteed for a minimum period of one year; the relevant provisions in the collective agreements shall apply thereafter, if necessary.

6.7 Federal employees transferred to the Government of Québec under this Agreement shall be subject to the RREGOP or RRPE as of the date of their transfer. They may make the following election as regards years of service accrued in the federal government under the PSSA superannuation plan:

• a)Transfer of their accrued service in the employ of the federal government to the RREGOP or RRPE. Such an election shall be made under the current transfer agreement signed on December 12, 1984, between the Commission administrative des régimes de retraite et d'assurance of Québec and the Government of Canada.
• b) Non-transfer of service accrued with the Government of Canada. Where an employee elects not to transfer service accrued in the employ of the federal government, credited service under the PSSA shall count for the purposes of eligibility for a retirement pension or other benefit payable under the RREGOP or RRPE; conversely, RREGOP or RRPE credited service shall be taken into account for the purposes of eligibility for pension or benefit payable under the PSSA plan.

6.8 Provisions of the offer of employment from Québec shall be defined under the ETP. This proposal shall be submitted by Québec for approval prior to the signing of the implementation agreement of which it will be a part.

6.9 Employees of Canada shall have sixty days to accept or reject the written offer made by Québec.

6.10 Canada and Québec shall jointly determine the mode for selection of affected personnel, where required.

6.11 Credits for sick leave and annual leave shall be transferred in their entirety. Accumulated sick leave credits shall serve solely for the purposes of salary insurance, for priority use at the time of absences due to illness, and shall under no circumstances be convertible into cash by Québec.

6.12 For the period extending from the date of signing of this Agreement to the date on which the federal employees start work for the new employer, except in cases of emergency or absolute necessity, Canada shall not conduct any re-evaluation of positions or permanently staff any positions entirely devoted to employment and covered by this Agreement that should become vacant. Where necessary, staffing of these positions shall be effected on an acting basis.

6.13 Further conditions of work shall be as defined in the applicable collective agreements.

6.14 The various collective plans provided for in the conditions of work, such as parental rights, life, health and salary insurance plans, and occupational accident and disease plans, shall apply to transferred employees of Canada.

7. Funding

8. Public Information

8.1 Québec and Canada agree on the importance of ensuring that the public be notified of their respective roles, and particularly the financial contribution of Canada and the responsibility of Québec with regard to active employment measures, under this Agreement. The implementation agreement shall contain provisions furthering this commitment, specifically as regards the following:

• material for Employment Insurance users, including pamphlets and brochures;
• information for the public and, in particular, for active Employment Insurance claimants in the offices providing the programs, measures and services funded under the agreement;
• reports of departments or agencies of both governments that are affected by this Agreement;
• for Employment Insurance users making use of an active employment measure, a written notice advising them, at the time of their admission, of the source of funding.

8.2 Québec and Canada agree to define in the implementation agreement innovative means that will meet the needs of both parties with respect to public information.

8.3 Canada and Québec agree to prepare public information material and organize and take part in all public announcements related hereto.

8.4 Each party may develop public information initiatives relating to the activities and results covered by this Agreement. Québec and Canada agree to keep one another informed of such initiatives within a reasonable time frame.

9. Term of the Agreement

9.1 This Agreement shall be for an indefinite period, subject to the following provisions:

• neither party can unilaterally terminate the agreement in the first three fiscal years to which it applies;
• during this initial period, the parties agree to complete together a review of the results obtained, the accountability framework and mechanisms, and the provisions relating to funding of Québec's active employment measures and to material and financial resources, in order to determine whether they wish to continue with the agreement;
• for the other components of the agreement, the parties agree to proceed as necessary with reviews for the purpose of making amendments to the agreement.

9.2 On completion of the review referred to in clause 9.1, either party may terminate the agreement on at least two year's formal notice to the other party of its intention to do so. The parties agree that, should they opt to terminate the agreement, they will ensure that services to clients are disrupted or interrupted as little as possible as a result of this termination.

Should Canada unilaterally terminate the agreement after three years, it shall pay a negotiated, reasonable compensation to Québec. Such compensation shall not exceed the costs directly attributable to the positions initially transferred.

10. General Provisions

Appendix