Canada-Quebec Labour Market Agreement (Implementation)

Between

The Government of Canada, hereinafter referred to as "Canada," represented by 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 Ministre d'État de l'Emploi et de la Solidarité and Ministre de l'Emploi et de la Solidarité and the Ministre délégué aux Affaires intergouvernementales canadiennes.

Recitals

Whereas Canada and Québec signed, on April 21, 1997, the Labour Market Agreement in Principle, in which they agreed to conclude an Implementation Agreement, Canada and Québec agree as follows:

1.0 Purpose and scope of agreement

1.1 Canada and Québec agree that this Agreement is intended to define the terms and conditions for implementation of their Agreement in Principle signed on April 21, 1997.

1.2 It is agreed that, where it is impossible to reconcile the provisions in the Agreement in Principle with those in the Implementation Agreement, the Agreement in Principle will take precedence. Moreover, the provisions in the Agreement in Principle apply with respect to matters on which the Implementation Agreement is silent.

2.0 Definitions

2.1 The definitions in the Agreement in Principle apply to this Agreement, as though they were repeated here.

2.2 Further, the definitions of the following terms apply to both the Agreement in Principle and the present Agreement, and, in the case of the Agreement in Principle, have the same effect as they would if they were expressly recited there:

2.2.1 Fiscal year means the period beginning on April 1 and ending on March 31 of the following year. It is synonymous with the term financial year.

2.2.2 Emploi-Québec, until such time as it has been established by legislation, shall be synonymous with the expression Ministère de l'Emploi et de la Solidarité

2.2.3 The parties agree to interpret transition period within the meaning of clause 10.5 of the Agreement in Principle, as follows^{Footnote 1}:

2.2.3.1 The period preparatory to the assumption of responsibility by Québec for the active employment measures and National Employment Service functions for which it has become responsible under the Agreement in Principle means the period between the signing of the Implementation Agreement and March 31, 1998;

2.2.3.2 The transition, namely the moment Canada withdraws from the areas of labour market activity covered by the Agreement in Principle and the moment Québec assumes responsibility of those areas of activity. The transition shall take place on April 1, 1998, subject to clause 12.4 of this Agreement. Accordingly, beginning on that date, all staff affected by the Agreement in Principle shall be transferred to Québec and shall provide services on behalf of Québec, even if deployment of the employees to Québec offices has not been completed;

2.2.3.3 The adjustment period shall begin on April 1, 1998, and end once the deployment of staff has been fully completed.

3.0 Functions of National Employment Services (NES)

3.1 Labour exchange

3.1.1 Canada agrees to:

3.1.1.1 provide Québec with access, immediately upon the assumption of responsibility by Québec for NES functions, to all active orders in the order management system in use at Human Resources Development Canada (HRDC). This system is the National Employment Services System (NESS);

3.1.1.2 provide Québec with access to the NESS and to current and future HRDC applications used in matching labour supply and demand;

3.1.1.3 make available to Québec job orders from other provinces.

3.1.2 Québec agrees to:

3.1.2.1 promote interprovincial mobility by forwarding to Canada job orders taken by Emploi-Québec and disseminating orders from other provinces;

3.1.2.2 participate in improvement of the pan-Canadian system by forwarding to Canada the data specified in Appendix I ("Exchange of Non-Identifying Data and Information") of the present Agreement.

3.2 Terms and conditions of access

3.2.1 Internet access

3.2.1.1 With respect to the Job Bank and the Electronic Labour Exchange and their future replacements, if applicable, the two parties agree that:

3.2.1.1.1 Québec may, on its site, using its home page, access applications directly;

3.2.1.1.2 Québec shall display the following wording on its home page:

1. "Under the Canada-Québec Labour Market Agreement in Principle, Québec is responsible for certain functions of the National Employment Service available to Employment Insurance users. These functions are funded by the Employment Insurance Account, for which Canada is responsible."

3.2.1.1.3 Canada shall display the Québec home page within Québec;

3.2.1.1.4 No government identification shall appear in the content of these applications.

3.2.1.2 With respect to current or future systems applications used in labour exchange, the two parties agree that:

3.2.1.2.1 Canada shall automatically direct Québec users to the Québec home page. Québec shall display the wording set out in clause 3.2.1.1.2 of the present Agreement;

3.2.1.2.2 when users reach the Québec home page, they shall not see any HRDC identification in the content of these applications.

3.2.2 Kiosks without Internet access

3.2.2.1 In the case of kiosks without Internet access, Canada agrees to display a message to the effect that the job orders distributed in its kiosks are from Emploi-Québec, using the wording of clause 3.2.1.1.2 of the present Agreement.

3.3 Improvements to computer applications and Internet sites

3.3.1 Canada agrees to develop, maintain and operate, at its own expense, its national systems, including the update of skills profiles and the National Occupational Classification.

3.3.2 The parties agree to work together to improve the pan-Canadian labour market information system. In this connection, they may modify current systems applications or develop new applications.

3.3.3 The costs of such modifications or new systems applications incurred at Québec's request or by Québec shall be assumed by Canada if the modifications or new applications serve to improve the pan-Canadian labour market information system and shall be assumed by Québec if they serve to meet requirements unique to Québec.

3.4 The Canada-Québec Joint Committee to Oversight the Labour Market Agreement shall ensure follow-up on the terms and conditions governing implementation of the National Employment Service functions, including those relating to the development of applications in support to the employment service.

3.5 Labour market information (LMI)

3.5.1 Canada and Québec agree that:

3.5.1.1 Canada is responsible for producing the LMI products connected with proper management of the Employment Insurance Account, entitlement to and continuation of benefits, and information for Employment Insurance users, as well as those required for the planning and delivery of HRDC activities relating to this Agreement;

3.5.1.2 Québec is responsible for producing the LMI products connected with employment service, referral and counselling services, as defined in the Agreement in Principle, as well as the LMI products needed for the planning and design of active employment measures.

3.5.2. In this connection, Canada and Québec agree:

3.5.2.1 to keep each other informed regarding the subjects to be addressed in the context of LMI activities;

3.5.2.2 to ensure that the results of their respective efforts are exchanged;

3.5.2.3 to entrust follow-up on modalities governing LMI to the Canada-Québec Joint Committee to Oversight the Labour Market Agreement.

3.6 Communications with corporations

3.6.1 In accordance with the provisions in the Agreement in Principle on language of service to corporations established in Québec, in connection with the functions of the National Employment Service for which Québec is assuming responsibility, Canada shall provide, at Québec's request, written communications in English, including those sent by facsimile or other electronic means, to corporations which require that they be communicated with in that language, as follows:

3.6.1.1 Québec shall send Canada, to the location that the latter designates, any written communication in English from a corporation established in Québec which requires that it be communicated with in that language;

3.6.1.2 Québec shall specify in its transmission to Canada the precise information that is to appear in the response;

3.6.1.3 Canada shall prepare the response according to the information specified by Québec, and shall send the response to the corporation involved, with a true copy sent to Québec, within a maximum of ten working days;

3.6.1.4 Canada and Québec agree to maintain an up-to-date register of requests handled in this manner, specifying, among other things, the dates on which the said documents were received and sent.

4.0 User services and delivery structure

4.1 Service delivery structure

4.1.1 Canada and Québec agree that the service delivery structure described below may be modified, notwithstanding the present Agreement.

4.1.2 Canada and Québec agree to inform each other beforehand of any plan to modify their service delivery structures, because of the implications such modifications could have on certain provisions of the present Agreement.

4.1.3 The Joint Committee to Oversight the Labour Market Agreement shall be the forum for exchanges of information and discussions on this subject.

4.1.4 In association with the labour market partners, the Ministre de l'Emploi et de la Solidarité shall be responsible for defining the strategic directions and government policies with respect to the labour force and employment. This Minister develops and implements the Active Labour Market Policy.

4.1.5 Employment services shall be the responsibility of the Ministre de l'Emploi et de la Solidarité. Emploi-Québec shall be responsible for implementing and managing measures and programs and the delivery of employment services.

4.1.6 There shall be three levels within the Emploi-Québec service delivery structure:

4.1.6.1 the central component of Emploi-Québec, together with the Commission des partenaires du marché du travail, shall be responsible for implementation and management of active employment measures and related ressources;

4.1.6.2 at the regional level, the regional offices of Emploi-Québec, which are located on the basis of Québec's administrative regions, shall, in co-operation with the Regional Councils of Labour Market, harmonize employment policies and strategies in their respective territories. The Regional Council of Labour Market shall define labour market issues in the region, identify regional strategies, and harmonize local actions. Operational expertise may be consolidated to support the work of the local employment centres (LECs);

4.1.6.3 at the local level, a network of LECs, a list of which shall be provided to Canada prior to the assumption of responsibility by Québec, shall be established on the basis of the territories of the regional county municipalities (RCMs) and urban districts. The Emploi-Québec module shall be responsible for the application of the Active Labour Market Policy and for implementation of the labour force and employment directions flowing from the Local Plan of Action for the Economy and for Employment. It shall also be generally responsible for providing universal services to individuals and businesses in accordance with the provisions of the Agreement in Principle regarding measures, clienteles and principles governing user services;

4.1.6.4 other units of the Ministère de l'Emploi et de la Solidarité that do not belong to Emploi-Québec shall support Emploi-Québec in carrying out its responsibilities.

4.2 Nature of the measures and services provided

4.2.1 The parties agreed in the Agreement in Principle to specify the nature of the services provided (clause 4.2) and the terms and conditions with respect to the various elements associated with user services (clause 10.3).

4.2.2 The measures and services provided by Québec may include, among others, those in Appendix II of the present Agreement ("Measures and Services Provided under the Canada-Québec Labour Market Agreement in Principle"), delivered in an integrated, decompartmentalized and decentralized fashion. The list may be modified on the basis of available budgetary resources or other circumstances.

4.2.3 In order to facilitate continuity of services to clients, Québec shall provide to Canada, as soon as available, a detailed description of the employment benefits and support measures to be available to eligible clientele in accordance with clause 3.1.3 of the Agreement in Principle.

4.3 Implementation mechanisms

4.3.1 Details of the timetable for establishing points of service and relocating transferred employees, operating terms and conditions and provisions relating to the period preparatory to the assumption of responsibility by Québec, to continuity of service and to necessary computerized links are described in Appendix III of the present Agreement ("Implementation Mechanisms").

5.0 Accountability

5.1 This section deals with the mechanisms for establishing of, following-up and revision of the result targets, terms and conditions for conducting of evaluations of active measures and National Employment Service functions covered by the Agreement in Principle, as well as issues related to financial auditing, controlling abuse and exchanging information and data. This section also covers transitional mechanisms.

5.2 Measurement of results

5.2.1 Establishing results targets

1. Québec shall establish on annual basis result targets, on the basis of, among other things, historical data, socio-economic and labour market context, local or regional priorities, the characteristics or requirements of clients, and the funds available for active employment measures. These targets shall be the subject of discussions between the parties and shall be part of the Annual Appendix to the Implementation Agreement.

5.2.2 Follow-up on and revision of targets

1. The parties shall hold ongoing discussions directed towards follow-up to and revision of the targets and shall meet upon request of either of the parties.

5.2.3 Forwarding of results and exchange of information

5.2.3.1 On signature of the present agreement, Canada shall inform Québec by letter of the definitions and methods it uses for measurement of the primary indicators and later of any updates.

5.2.3.2 Québec shall forward to Canada on a quarterly basis the results (monthly data and quarterly cumulative data) for the following primary indicators:

5.2.3.2.1 the number of Employment Insurance clients benefiting from active employment measures covered by this Agreement, with an emphasis on priority access for active Employment Insurance claimants;

5.2.3.2.2 the obtaining of employment.

5.2.3.3 Québec shall forward to Canada, in accordance with the terms and conditions set out in clause 2.6.3 of Appendix V ("Information and Data Exchange"), the data needed for purposes of calculating the results for the primary indicator, that is, savings to the Employment Insurance Account.

5.2.3.4 Canada shall inform Québec of the results of the calculation of savings. At Québec's request, Canada shall forward the details of the calculations, as well as the methods used.

5.2.3.5 The terms and conditions governing the forwarding of results relating to observable behavioural changes shall be defined in the evaluation framework.

5.2.3.6 For the purposes of results measurement and analysis, Canada and Québec agree to exchange information in accordance with the terms and conditions set out in clauses 2.5 and 2.6 of Appendix V ("Information and Data Exchange").

5.2.4 Transitional mechanisms

5.2.4.1 To enable Québec to assume its responsibilities with respect to the targets and results, the two parties agree as follows:

5.2.4.1.1 for the year in which the present Agreement comes into force and, if necessary, for the following year, Canada shall provide the support needed by Québec for establishing, following-up on and revising result targets, by making available to it, among other things, appropriate tools and methods, as well as by giving it access to pertinent data;

5.2.4.1.2 during this period, Canada shall provide Québec with the necessary support for production of the results data for the three primary indicators, as defined in clause 5.4.3 of the Agreement in Principle.

5.3 Conducting of evaluations

5.3.1 The two parties agree that an evaluation framework will be developed by Québec and will be the subject of discussions in the spirit of the Agreement on Strategic Initiatives. This evaluation framework shall contain, among other things:

5.3.1.1 the evaluation issues;

5.3.1.2 the indicators, data sources and methodological approaches chosen;

5.3.1.3 the plan for the evaluation activities.

5.3.2 Nature and frequency of evaluations

5.3.2.1 The two parties agree that formative evaluations will be conducted as soon as possible in the first year of the assumption of responsibility by Québec for active measures and National Employment Service functions.

5.3.2.2 Summative evaluations shall be conducted during the third fiscal year in which the Agreement in Principle is in effect (that is, 1999-2000). Subsequently, evaluations shall be conducted regularly, every three to five years.

5.3.2.3 The evaluations shall be aimed at determining the effectiveness, conformity and efficiency of the interventions, as defined below:

5.3.2.3.1 effectiveness: to determine the extent to which the active measures and NES functions are achieving their objectives and the impact they have had;

5.3.2.3.2 conformity: to determine the linkage between objectives of the active measures and NES functions and client needs; to determine the extent to which the clientele reached is the targeted clientele;

5.3.2.3.3 efficiency: to determine the extent to which the results attained (both qualitative and quantitative) are achieved at the best possible cost.

5.3.3 Forwarding and release of reports

5.3.3.1 Québec shall forward evaluation reports to Canada as soon as they have been approved.

5.3.3.2 Canada and Québec agree that the unpublished data provided by either party to be used in connection with any publication or release of evaluation products and results measurement must be validated by the source party.

5.4 Discussion mechanisms

5.4.1 Within the framework of the Canada-Québec Joint Committee to Oversight the Labour Market Agreement, the parties agree to designate expert representatives to carry on discussions with regard to clauses 5.2 and 5.3 of the present Agreement, on the following points:

5.4.1.1 establishment, following-up on and revision of the targets;

5.4.1.2 forwarding of results;

5.4.1.3 the conducting of evaluations; and

5.4.1.4 the exchanges of data and information needed for results measurement and evaluation.

5.5 Financial audit

5.5.1 For each fiscal year, Québec shall submit an income and expenditure statement (example in Appendix VIII) detailing, among other things, the amount of expenditures that Québec has incurred during the fiscal year in question with respect to each active employment measure identified in the annual plan in accordance with clauses 5.4.1 and 5.4.2 of the Agreement in Principle, the administrative expenses connected with those measures and the National Employment Service functions for which Québec is responsible and the amount of overpayments recovered and loans paid back.

5.5.2 The Vérificateur général du Québec shall conduct an audit and produce a statement attesting that the amounts set out in the income and expenditure statement accurately reflect, in all important respects, the use made of the funds in accordance with generally recognized accounting principles.

5.5.3 This audit shall be conducted in accordance with generally recognized audit standards.

5.5.4 The report presented by Québec shall include statements by the Vérificateur général du Québec that:

5.5.4.1 all the amounts received from Canada during the fiscal year in question as Canada's contribution applicable to active employment measures were indeed used by Québec for active employment measures, as defined in clause 3.1 of the Agreement in Principle and identified in the annual plan, in accordance with clauses 5.4.1 and 5.4.2 of the Agreement in Principle, for the fiscal year in question;

5.5.4.2 all the amounts received from Canada during the fiscal year in question as Canada's contribution applicable to administrative expenses were used for administrative expenses connected with delivery of active employment measures funded from the Employment Insurance Account and for the National Employment Service functions during the fiscal year in question;

5.5.4.3 all the amounts received from Canada during the fiscal year in question from the Employment Insurance Account for employment benefits were used only for Employment Insurance participants, as defined in clause 3.4 of the Agreement in Principle. This restriction does not apply to the support measures directed to National Employment Service users.

5.5.5 In order to be accountable to their respective Parliaments and to facilitate financial auditing, Canada and Québec agree that adjustments in the audit method may be accepted, following agreement by both parties.

5.5.6 Québec agrees to submit the audited report, as described in clause 5.5.1 of the present Agreement, on or before July 15 following the end of each fiscal year.

5.6 Detection and control of abuse

5.6.1 Canada and Québec agree that it is Québec's responsibility to identify and implement the means for detection and control of abuse, that is false declarations and administrative errors relating to the active employment measures covered by the present Agreement.

5.6.2 Canada and Québec agree to participate in joint investigations in certain situations as required.

5.6.3 Canada and Québec agree that it is the responsibility of each to collect its overpayments.

5.6.4 Québec agrees to determine the overpayments resulting from application of clause 5.6.1 of this agreement and to take reasonable steps to collect them. It also agrees to reinvest the sums recovered in the active employment measures identified in the annual plan, in accordance with clauses 5.4.1 and 5.4.2 of the Agreement in Principle. In this connection, Québec shall provide Canada annually with a report detailing, among other things, the opening and closing balances, the amount of overpayments identified, recovered, written off and reinvested in the active measures covered by the present Agreement, as well as a summary description of the activities and the terms and conditions applied.

5.6 5 Solely for the purpose of implementing the present Agreement, the scope of the terms "false statement" and "administrative error" shall be defined as follows:

5.6.5.1 false statement: statement means any information or documentation conveyed orally or in writing to the Ministère de l'Emploi et de la Solidarité, including information that a person has withheld. A false statement may be made knowingly or inadvertently;

5.6.5.2 administrative error: erroneous decision in applying the Act, Regulations or administrative directives concerning the eligibility of an Employment Insurance participant or an organization for an active employment measure, on the basis of information on record at the time the decision was made. Even though not attributable to the claimant or the organization, the decision has led to payment of an incorrect amount or payment of an amount to which the claimant or the organization was not entitled.

5.6.6 For purposes of detecting and controlling abuse, Canada and Québec agree to exchange information in accordance with the procedures set out in clause 2.10 of Appendix V ("Information and Data Exchange") of the present Agreement.

5.6.7 The Canada-Québec Joint Committee to Oversight the Labour Market Agreement shall be the forum for co-operation on detecting and controlling abuse.

5.7 Exchanges of information and data

5.7.1 To ensure implementation of the present Agreement and to facilitate its application, the parties agree to exchange information and data, in accordance with the provisions set out below:

5.7.1.1 The reasons and procedures for exchanges of information and data are defined in appendixes to the present Agreement. Appendix V ("Information and Data Exchange") deals with exchanges of information of an identifying nature, which are subject to Canada's Privacy Act and Québec's Act respecting access to documents held by public bodies and the protection of personal information. Appendix I ("Exchange of Non-Identifying Information and Data") deals with exchanges of information of a non-identifying nature.

5.7.1.2 Within the framework of the Canada-Québec Joint Committee to Oversight the Labour Market Agreement, the parties agree to designate expert representatives, who shall, where necessary, work with computer services people, in order to proceed with the implementation and follow-up of the procedures for exchange of information and data specified in Appendices I and V ("Exchange of Non-Identifying Information and Data" and "Information and Data Exchange") of the present Agreement.

5.7.1.3 Subject to Canada's Privacy Act and Québec's Act respecting access to documents held by public bodies and the protection of personal information, the expert representatives may agree to amend, add or remove information exchanged under Appendix V ("Information and Data Exchange") of the present Agreement. They may also review the frequency of exchanges, their procedures and related security measures.

5.7.1.4 The parties agree, moreover, that the exchanges of information and data provided for in the present Agreement do not replace or modify in any way the exchanges carried out in connection with agreements already reached for purposes other than those of the present Agreement.

6.0 Human resources

6.1 The provisions pertaining to the transfer of federal employees affected by the Agreement in Principle are set out in the Employee Transfer Agreement, which constitutes Appendix IV of the present Agreement.

7.0 Funding

7.1 Determination of funds made available

7.1.1 Contribution for active employment measures

7.1.1.1 Canada agrees to confirm the actual amount of Canada's contribution that will be made available for the following fiscal year, at some time during the month of January preceding the fiscal year in question. Canada shall provide the data, weighting, methodology and exact sources of each of the variables used to determine the contribution, in accordance with the letter of June 26, 1996, from the Deputy Minister of Human Resources Development Canada to the Secrétaire général associé des affaires intergouvernementales canadiennes of Québec.

7.1.1.2 It is understood and agreed that Canada shall continue to offer its employment benefits and support measures until March 31, 1998. If, on April 1, 1998, Québec is not in a position to begin offering active employment measures under this Agreement, Canada shall continue to offer its employment benefits and support measures. Québec agrees that the maximum contribution to be made available to Québec during the fiscal years involved shall be adjusted on the basis of the terms and conditions set out in section 4.2 of Appendix III of the present Agreement.

7.1.2 Purchase of training

7.1.2.1 In accordance with Canada's decision to discontinue, on March 31, 1999, its financial assistance for training, it is understood and agreed that the Training Purchases provisions presently in force shall remain in force for fiscal year 1998-99, in the spirit of the provisional Canada-Québec Interim Agreement on Certain Labour Force Development Measures, which was signed on November 11, 1991, and expired August 31, 1993. The amount to be allocated to Training Purchases for fiscal year 1998-99 shall be $90.4 million.

7.1.2.2 In order to make it possible to finalize the action plans of clients who have undertaken skills development initiatives, Québec shall indicate, before March 31, 1999, the measures it intends to implement which accord with the objectives defined in clause 3.1.3 A) v) of the Agreement in Principle.

7.1.2.3 The amount of funding allocated to Training Purchases and to financial support for participants is included in the annual contribution that Canada is to make available to Québec for active employment measures for fiscal year 1998-99. The amounts allocated to Training Purchases shall be deducted from the annual contribution made available for active employment measures, and then paid out when training is purchased. In the event that any of the amounts set aside are not used, Québec shall have the right to reinvest the remainder in the other active employment measures identified in the annual plan, in accordance with clauses 5.4.1 and 5.4.2 of the Agreement in Principle.

7.1.2.4 The terms and conditions set out in the Training Purchases operational guide, drafted jointly by the Société québécoise de développement de la main-d'œuvre (SQDM) and HRDC, have been revised for the fiscal year in question, and exchanged between the parties. Financial support for participants will be assumed by Québec by means of HRDC's CJS II system, in accordance with section 4.2 of Appendix III of this Agreement, until all participants have completed their courses.

7.1.2.5 The $90.4 million amount shall be subject neither to the contribution payment mechanism described in clause 7.2.1, nor to the financial audit contemplated in clause 5.5 of this Agreement. Rather, it shall be subject to the payment and audit procedures described in the above-mentioned Training Purchases operational guide.

7.1.2.6 The Canada-Québec joint Committee to Implement the Labour Market Agreement shall ensure that Training Purchases are monitored in accordance with the terms and conditions set out in the Training Purchases operational guide, as revised by the parties.

7.1.3 Contribution for administration costs

7.1.3.1 The maximum contribution that Canada must make available to Québec for each of the years of the Agreement in Principle in respect of costs associated with the administration of active employment measures is hereby increased to $54,950,095, taking into account the percentage increase in the value of employee benefits. Should Québec assume its responsibilities during a year in progress, the contribution shall be adjusted accordingly.

7.1.3.2 Québec shall make reasonable job offers to 1,038 federal employees (the equivalent of 1,038 FTEs) for the administration of active employment measures. Funding to cover the administration costs associated with 46 vacant positions shall be made available to Québec. The wage value of the vacant positions is to be calculated by taking the average salary of all transferred positions and then adding the corresponding employee benefits. The vacant positions, in respect of which Canada shall have no financial obligations, shall be available immediately upon transfer to Québec.

7.1.3.3 Should any federal employees refuse a reasonable job offer made by Québec, their positions shall be considered vacant positions under Québec's responsibility, with a wage level equal to that of the positions occupied by those employees. However, as specified in clause 7.10 of the Agreement in Principle, the monies associated with such positions shall be made available to Québec only at such time as Canada is released from all financial obligations associated with their management. In such cases, Canada shall identify the financial obligations, ascertain the date they are to come to an end in accordance with Part VII of the Work Force Adjustment Directive ("Alternative Delivery Arrangements"), and deduct the corresponding amount from the maximum contribution toward administrative costs for the fiscal year or years in question.

7.1.3.4 As stated in the Employee Transfer Agreement, if the employees to be transferred to Québec obtain a wage increase by virtue of a new collective agreement or a final settlement of the pay equity dispute, and this occurs after a job offer is made to them, by Québec, before they are transferred, Québec shall adjust its offer to those employees accordingly, and Canada shall adjust its maximum contribution by an amount equal to the wage increases awarded to them.

7.1.3.5 In the event that the actual wage of an employee at the time of the transfer is different from the wage stated in the list of affected employees in the Employee Transfer Agreement, the amount of the maximum contribution shall be adjusted by an equivalent amount.

7.1.3.6 If, by reason of legislative amendments to applicable working conditions, Québec does not expend all of the annual payroll allocated to the transferred employees (not counting the vacant positions) for a given fiscal year, Canada shall reduce its maximum contribution in respect of administration costs for the fiscal year in question. The amount to be deducted shall be the difference between the annual federal income of the employees at the time of transfer, and the annual pay they receive from Québec.

7.2 Federal contribution payment mechanism

7.2.1 Active employment measures

7.2.1.1 Canada shall commence advance payments of its annual contribution on April 1, 1998, or on such later date as Québec begins, using its own systems, to offer its active measures funded by the Employment Insurance Account.

7.2.1.2 The advances shall be paid monthly, on or before the first day of the month. The amount of the monthly advance to be paid by Canada shall be based on Québec's forecast of monthly cash flow requirements. For fiscal year 1998-99, Québec agrees to use the following monthly rate of expenditure: April: 20%; May: 5%; June: 5%; July: 15%; August: 5%; September: 5%; October: 10%; November: 5%; December: 5%; January: 15%; February: 5%; and March: 5%. Québec may adjust its forecast of monthly cash flow requirements at any time, if it so wishes. If it does, Canada agrees to pay the monthly advance in the revised amount, provided that an adjusted forecast is submitted 15 days before the first day of the following month.

7.2.1.3 The forecast of monthly cash flow requirements shall correspond as closely as possible to the actual rate of Québec's expenditures. In preparing its future forecasts, Québec shall consider, among other things, its historical spending patterns.

7.2.1.4 On October 15 of each fiscal year, Québec agrees to provide Canada with cumulative expenditure figures to September 30 in respect of active employment measures funded by the Employment Insurance Account.

7.2.1.5 In order to avoid any overpayment, the last payment (March) shall be made following Québec's confirmation of the cash requirements to meet the payments it must make to carry out this Agreement for the fiscal year in progress, and such confirmation shall be given prior to February 15 of each fiscal year.

7.2.1.6 In no event shall the aggregate amount of monthly advances paid out by Canada in a given fiscal year exceed the maximum contribution made available to Québec for that fiscal year, as set out in Appendix XI of the Implementation Agreement for the fiscal year in question.

7.2.1.7 Subject to the results of the financial audit, Canada's total annual contribution in respect of active employment measures shall correspond to the costs incurred by Québec (i.e. the expenditures made during the fiscal year) in carrying out this Agreement, less the amount of overpayments recovered and loans repaid. However, in no event shall the amount paid by Canada exceed the sum confirmed in Appendix XI of the Implementation Agreement for the fiscal year in question.

7.2.1.8 Québec agrees to provide provisional data concerning total annual expenditure of the contribution, within five working days of the end of the first additional accounting period of each of its fiscal years just ended, and to immediately repay any overpayments to Canada.

7.2.1.9 Following the financial audit, any overpayment made by Canada in carrying out this Agreement shall be repaid immediately, with the exception of overpayments determined in accordance with clause 5.6.4 of the Implementation Agreement.

7.2.1.10 Québec agrees to reinvest the full amount of all overpayments recovered and loans repaid in the active employment measures identified in the annual plan in accordance with clauses 5.4.1 and 5.4.2 of the Agreement in Principle.

7.2.1.11 Funds not expended in any given fiscal year become lapsed.

7.2.2 Administration costs

7.2.2.1 Subject to clause 7.2.2.2 of the present Agreement, Canada's annual contribution toward administration costs incurred by Québec shall be made in twelve equal payments not exceeding the established monthly maximum of $4,579,175.

7.2.2.2 Payments for leases that end during a year in progress shall be made on the basis of the actual termination date of such leases, and the time remaining (number of days out of 365) in the year in question. The payment shall be added to the administration costs, and paid monthly. For the beginning of a new fiscal year, the costs of leases taken over by Québec shall be included in the monthly payment, over and above the contribution for administration costs.

7.2.2.3 If, on April 1, 1998, all the federal employees have not been transferred to Québec or posted to one of Québec's offices, the amount of the annual contribution shall be revised, and the monthly payments shall be adjusted accordingly.

7.2.2.4. Following submission by Québec, at fiscal year-end, of the report certified by the Vérificateur général du Québec, any overpayment shall be repaid immediately.

7.2.2.5 Funds not expended in any given fiscal year become lapsed.

7.3 Identification of equipment and furniture

7.3.1 Canada agrees to transfer to Québec the equipment and furniture used by each transferred employee, with the limit of one item of computer equipment for each employee affected, as set out in the description of furniture and equipment given in Appendix IX.

7.3.2 Canada agrees to provide Québec with the inventory record for the transferred furniture and equipment (except computer equipment) at the signing of this Agreement. The inventory record covering the computer equipment shall be submitted no later than January 1, 1998.

7.3.3. Québec agrees to notify Canada 30 calendar days in advance of the actual moving date of each employee.

7.3.4 Québec agrees that it will assume sole responsibility for the furniture and equipment as of the date on which the employee falls under its authority. For inventory management purposes, this transfer of control shall be confirmed in a statement signed by a duly authorized representative of each of the parties. Québec shall bear entire responsibility for the moving operations and the related costs, as described in Appendix IX.

7.4 Dental care

7.4.1 In reference to clause 8 of the Employee Transfer Agreement, Canada agrees to enter into an agreement with a third party in order to ensure dental plan coverage for the period set out in the Agreement in Principle, and agrees to assume the costs thereof.

7.5 Financial aspects of federal employees relocation

7.5.1 Canada agrees to compensate Québec for the relocation of federal employees to offices occupied by Québec, up to a maximum of $1,000 per federal employee transferred. Reimbursements shall be made for work which is directly related to:

7.5.1.1 moving the equipment and furniture of transferred employees;

7.5.1.2 installing electrical equipment (indoor service poles);

7.5.1.3 telephone or computer wiring or cabling;

7.5.1.4 installing regular telephone lines;

7.5.1.5 recovering noise screens;

7.5.1.6 purchasing connection accessories;

7.5.1.7 leasehold improvements; and

7.5.1.8 any other related cost.

7.5.2 The federal compensation shall be paid after the employees are relocated. Québec shall submit to Canada a claim for reimbursement, and it is agreed that Canada shall pay the compensation within 30 days of the submission of such claim. The statement submitted must specify the address where the work was performed, the number of employees affected, where they came from, and a breakdown of costs according to the points listed above.

7.6 Additional funds in respect of former employees

7.6.1 In the event that the Treasury Board of Canada makes any additional funds available to Human Resources Development Canada in respect of former employees of Canada transferred to Québec during the three years following the signature of the Agreement in Principle, Canada shall calculate the additional amount to be granted to Québec, and increase the amount made available for costs incurred by Québec in regard to the administration of active employment measures, on the basis of the effective date of the increase granted. This additional amount shall be determined by calculating the increase granted by the Treasury Board of Canada as a percentage of the total payroll budget of Human Resources Development Canada, and then applying that percentage to the dollar amount of the wages actually granted to Québec for the implementation of the Agreement in Principle.

7.7 Financial resources associated with the termination of leases

7.7.1 Canada shall pay a contribution to Québec for rental costs associated with the transfer of federal human resources to Québec. The contribution shall be paid upon termination of each of the leases currently in effect. Once freed of all such leases, Canada shall make available to Québec an amount that has been estimated at approximately $3,975,889. This amount shall be adjusted and shall vary only in the event of a redeployment of employees that is different from the one used to determine the amount of the contribution for rental costs.

7.7.2 The contribution level for rental costs shall be established on the basis of:

7.7.2.1 the rental rate ($/m2 of usable space) in effect, including taxes, and operating and management costs, for each point of service involved in the employee transfer;

7.7.2.2 the number of employees transferred to each office;

7.7.2.3 an average allocation of 15.25 m2 of usable space per employee transferred.

7.7.3 Canada shall supply Québec with a table forecasting the rental budget transfers that will be made throughout the life of this Agreement. Canada also agrees to inform Québec, on a yearly basis, of the cost of transferred rents for each of the locations in question.

7.7.4 In the event that Québec uses any of Canada's facilities in order to serve certain needs, Québec shall defray its fair share of the operating costs.

7.7.5 Should Canada renew or extend a lease in order to serve Québec's needs, Canada shall compensate Québec upon termination of the lease, at the rate applicable on the date the Implementation Agreement is signed. Québec shall bear any cost increase incurred by Canada.

7.7.6 Wherever possible, Canada shall facilitate the transfer and sublet of certain leases to Québec, on such terms and conditions as shall be negotiated by the parties. Once released from its contractual obligations, Canada shall pay its rental contributions in accordance with the terms and conditions set out in clause 7.2.2.2 of the Implementation Agreement.

7.7.7 The user services and active measures shall be provided in premises which comply with Québec's accessibility standards for persons with disabilities.

7.8 Financial dispute resolution mechanism

7.8.1 If, after reasonable time for discussion, the Canada-Québec Joint Committee to Oversight the Labour Market Agreement cannot agree on the application of the provisions of clauses 5.6, 7.1, 7.2, 7.3 and 7.8 of the Agreement in Principle, the dispute may be brought before a financial dispute committee.

7.8.2 The financial dispute committee shall be composed of three members. The first shall be chosen by the representatives of Canada sitting on the Joint Committee, the second by the representatives of Québec sitting on the Joint Committee and the third by the two members chosen by the Joint Committee.

7.8.3 The financial dispute committee shall have the mandate to analyze the dispute brought before it and to submit to the deputy ministers concerned, as quickly as possible, a majority report in which it shall make specific recommendations for settling the dispute in question.

7.8.4 Notwithstanding clause 7.8.3, the financial dispute committee may not make any recommendation that would have the effect of calling into question the total of the resources allotted by Canada for the funding of employment programs by the Employment Insurance Account or the methods of allocating these resources.

7.8.5 A financial dispute committee shall be formed only for the duration of the mandate it is given. Following submission of the majority report to Canada and Québec, the committee shall be dissolved.

7.8.6 The parties shall each bear half the costs associated with the setting up and operation of each such committee.

8.0 Computer systems

8.1 Framework for the use of certain HRDC systems

8.1.1 In accordance with the interconnection arrangements agreed on by the parties, Canada shall, in the context of the administration of active measures, give Québec access to all HRDC labour market related applications used by Québec for its entire client base.

8.1.2 Provided its development capabilities permit, Canada may, at Québec's request, export to Québec any HRDC labour market related application or part thereof, and Québec may make any changes it deems necessary based on its own criteria. The parties shall agree on protocols governing export, user manuals, programming, test cases, and training documents for users.

8.2 Systems for information exchange by the two governments

8.2.1 After each of the parties has conducted its evaluations, and on the basis of operational requirements, the parties shall agree on the terms and conditions governing interactive access to data contained in each other's data banks. These terms and conditions shall address such areas as responsibility for developing, managing and enhancing interactive access, as well as data integrity and protection.

8.2.2 The parties agree that off-line information transfers shall be done through data communication links that will be set up and maintained in accordance with the interconnection arrangements agreed on.

8.3 Interconnection technology

8.3.1 Canada shall be responsible for establishing and managing the interconnection of its network with Québec's network, up to the gateway to Québec's proprietary government network. Each of the parties shall manage the interconnection structures it has established.

8.3.2 Each party shall be responsible for providing the information and tools necessary to enable the other to access its infrastructure and computer systems in accordance with the management arrangements set out in clause 8.4.2 of the present Agreement (e.g. security cards, encryption methods, network addresses of components, etc.). On the date on which Québec assumes its responsibilities, the tools provided by Canada shall be based on the undertakings given in clause 7.13 of the Agreement in Principle. Beginning on that date, the parties may discuss possible ways of broadening the use of such tools.

8.3.3 Canada and Québec shall take full advantage of electronic mail to facilitate exchanges between each other's staff, and each party shall bear the costs of its use.

8.4 Management arrangements of computer systems

8.4.1 Implementation planning and coordination

8.4.1.1 Immediately after signing the Implementation Agreement, the Canada-Québec joint implementation committee shall designate expert representatives who will have the mandate, under the committee's authority, of implementing the computer systems in accordance with the provisions set out in this Agreement.

8.4.1.2 Once the Canada-Québec joint implementation committee has completed its work, the expert representatives shall continue their work within the framework of the Canada-Québec joint Committee to Oversight the Labour Market Agreement.

8.4.1.3 The parties shall agree on the technical details of, among other things, the use of management tools by both parties to identify services, technical support and ways of ensuring that the computer equipment located on their respective premises is in operational mode, to ensure that service levels are attained and to comply with the requirements of security policies and management of services. Among other things, these details shall address the following points:

8.4.1.3.1 responsibility sharing with regard to connectivity;

8.4.1.3.2 support and service delivery schedule;

8.4.1.3.3 problem management;

8.4.1.3.4 change management;

8.4.1.3.5 electronic mail;

8.4.1.3.6 training;

8.4.1.3.7 security management;

8.4.1.3.8 service levels;

8.4.1.3.9 technical support;

8.4.1.3.10 maintenance and installation of computer equipment located on the parties' respective premises.

8.4.1.4 The parties agree to work within each other's production capacities and limitations, except in the event of technical difficulties or unforeseen circumstances beyond a party's control, such as network failure or a labour dispute.

8.4.2 Changes to applications and technology

8.4.2.1 Canada and Québec agree to notify each other within a reasonable time of any change affecting communication protocols or methods, data bank access procedures, or systems. The parties agree to participate in compatibility tests when changes are made to such protocols, methods, or procedures.

8.4.2.2 Québec may request improvements to HRDC applications used by Québec. These requests will be taken into account in Canada's priority-setting process. Nothing in this clause limits the development activities that must be pursued by both parties in order to ensure information exchange between the two organizations.

8.4.2.3 Canada agrees to inform Québec, in accordance with the procedures agreed on by both parties, of any new federal application or any new version of a federal application that is relevant to this Agreement.

9.0 Public information

9.1 Canada and Québec recognize the importance of informing the public about their respective roles, including Canada's financial contribution and Québec's responsibility in the area of active employment measures. In this context, the parties agree:

9.1.1 to ensure that the following text appears, in clearly legible form, in communication products including pamphlets and brochures, intended for employment insurance users: "Under the Canada-Québec Labour Market Agreement, Québec is responsible for active employment measures available to employment insurance participants, and for certain functions of the National Employment Service available to employment insurance users. These measures and functions are funded by the Employment Insurance Account, for which Canada is responsible".

9.1.2 to inform employment insurance users, in an appropriate fashion, of the roles of each government, in the offices where the programs, measures and services covered by this Agreement are offered. In this regard, the parties agree to use the wording set out in clause 9.1.1;

9.1.3 to indicate the respective roles of the two governments in clearly legible form, using the wording set out in clause 9.1.1, in the reports of the two governments' departments and agencies involved in the Agreement ;

9.1.4. to inform employment insurance participants, upon their admission to an active employment measure, of the source of funding, by means of a written notice containing the following wording: "The active employment measure you are involved in falls under the jurisdiction of the Government of Québec. The funding for this measure, and the financial assistance you are receiving, come from the Employment Insurance Account, for which the Government of Canada is responsible".

9.1.5 to exchange information on best practices in providing information to the public, through the Canada-Québec Joint Committee to Oversight the Labour Market Agreement ;

9.1.6 to inform each other of public information initiatives relating to the Labour Market Agreement, and to do so sufficiently in advance to enable the other party to respond ;

9.1.7 to entrust the follow-up of public information arrangements set out in this Agreement to the Canada-Québec Joint Committee to Oversight the Labour Market Agreement.

10.0 Joint mechanisms

10.1 The parties shall establish two joint committees, whose composition, operation and mandate are set out in Appendix X:

10.1.1 a Canada-Québec Joint Committee to Implement the Labour Market Agreement, for the period preparatory to the assumption of responsibility by Québec, the transition and the adjustment period, as defined in clause 2.2.3 of the present Agreement;

10.1.2 a Canada-Québec Joint Committee to Oversight the Labour Market Agreement.

11.0 Research and innovation

11.1 In accordance with clause 2.3 of the Agreement in Principle, the co-operation sought shall take the form of a commitment by Canada to take Québec's needs into account whenever Canada launches a pan-Canadian study or survey under the Research and Innovation measure in support of the National Employment Service.

11.2 The parties shall agree on any experimental Research and Innovation project launched and funded by Canada and carried out in Québec. Whenever such a project is carried out, the evaluations, if any, shall be conducted in the spirit of clauses 5.3 and 5.4 of this Agreement.

11.3 Canada shall, at Québec's request, co-operate in Research and Innovation activities that fall within the purview of clause 3.1.3 B) iii) of the Agreement in Principle, including by facilitating Québec's access to any relevant information available.

11.4 Canada and Québec shall exchange the findings of their research, studies and surveys concerning the Research and Innovation activities mentioned in the foregoing clauses.

11.5 The forum for co-operation on Research and Innovation activities shall be the Canada-Québec joint Committee to Oversight the Labour Market Agreement.

12.0 General provisions

12.1 This Agreement may be amended or terminated by mutual consent of the parties, provided in writing, and such amendment or termination shall be effective on the date agreed on by the parties.

12.2 Canada shall take appropriate steps to authorize Québec's Ministre de l'Emploi et de la Solidarité to designate people who can refer active employment insurance claimants to some of the active employment measures set out in clause 3.1.3 of the Agreement in Principle. This will release these active claimants from the obligation to prove that they are unemployed and capable of and available for work in order to maintain their eligibility for employment insurance benefits.

12.3 As their respective leases expire, the parties shall do what they can to reduce the physical distance between local employment centres (LECs) and the Human Resource Centres of Canada (HRCCs).

12.4 The parties agree that Québec will assume responsibility on April 1, 1998. However, should major difficulties with computer systems arise, the parties agree to discuss, within the framework of the Canada-Québec joint implementation committee, an appropriate course of action and then to assess the outcome of that course of action.

12.5 The parties agree that the Canada-Québec Joint Committee to Oversight the Labour Market Agreement shall be charged with studying various colocation scenarios and preparing a report for the authorities on both sides during the twelve months following the signing of the Implementation Agreement.

12.6 The appendixes to this Agreement are an integral part thereof

Signed, on behalf of Canada, this__ day of ____________ 199_.

Signed, on behalf of Québec, this__ day of ____________ 199_.

Appendix I - Exchange of non-identifying data and information

1.0 Purpose

1.1. The parties recognize that non-identifying data or other information may be exchanged in order to implement this Agreement in an effective manner, for various reasons such as for operational purposes, for the purpose of carrying out analyses or studies, or for administrative purposes. This Appendix is to provide details concerning such exchanges.

2.0 Improvement of the pan-Canadian labour market information system

2.1 To support interprovincial mobility and provide input for the analysis of Canada's labour market, Québec agrees to transmit job orders and labour exchange data to the pan-Canadian labour market information system on a continuous basis. This information shall be transmitted online for input into the NESS and the Internet job bank.

2.2 Furthermore, the information that Québec provides for the pan-Canadian system shall include, among others, the following components of the NESS or a compatible system developed by Québec to be loaded into the National Labour Market Information System (NLMIS):

2.2.1 basic data on employers, including name, address, Standard Industrial Classification code (SIC), and when available, data regarding number of employees, occupational structure, periods of activity, presence of a union, special facilities for people with disabilities, employment equity and use of foreign workers;

2.2.2 information on vacancies, including salary, working conditions, National Occupational Classification (NOC) code, job requirements, experience and education required

2.2.3 list of occupations in demand.

3.0 Information on geographical and administrative areas

3.1 In order to allow employees of both parties to refer users properly to the various service points that may share a single geographical area, the parties agree to exchange information regularly on current service areas. Postal codes can be used to refer users to the service points appropriate to their specific needs on the basis of their place of residence. This simple information, routinely recorded in users' files by both parties, allows for an easily updated computerized description of the areas covered by the various service points.

4.0 Information for studies and analyses

4.1 The parties recognize with regard to their labour market activities and their short, medium and long-term results that they may have their own specific interests and strategies with respect to analyses and may each wish to undertake their own analytical work. In support of these interests, and in view of the parties having agreed in clause 5.7.1 of the Agreement in Principle to exchange information and data regularly on labour market matters, the parties agree to make available to each other such information, with identifying data removed, as may be required for planning, analysis or evaluation purposes, as well as the results of analytical work undertaken.

4.2 The data in question could take forms such as time series, matched files with identifying data removed or tables, and could concern active claimants as well as participants in employment measures or income security recipients.

4.3 To avoid any possibility of associating data with an individual and thus to preserve the confidentiality of personal information, the two parties agree not to forward data, on a territorial or any other basis, regarding any fewer than ten individuals.

5.0 Validation and sources of information and data

5.1 Canada and Québec agree that any report, study or other document produced from data provided by the other party must, before publication or release, be validated by the party which was the source of the data or information, and the source party's approval must be obtained if such reports or publications are to be made available to the public.

5.2 When one party makes use of information or data from the other party, it must indicate the source.

Appendix II - Measures and services provided under the Canada-Québec Labour Market Agreement in principle

1.0 Québec employment service

1.1 Québec is responsible for providing an employment service including the following functions:

• labour exchange;
• labour market information.

1.2 Labour exchange

1.2.1 The Québec employment service handles the job applications and job orders which it receives. This is a public employment service promoting equitable access to job opportunities, and it is an effective means of optimizing the distribution of human resources. For job applicants, the service greatly facilitates finding jobs which correspond to their qualifications and wishes. For employers, the service brings to their attention qualified workers who might fill vacancies. The Québec employment service:

• records and updates job orders from employers;
• makes job orders accessible.

1.3 Labour market information

1.3.1 Labour market information is of various kinds: labour market trends, issues and priorities; characteristics of the workforce; information on education, training and training institutions; data and analyses concerning the level of graduates finding employment; analyses of economic conditions and the labour market; characteristics of businesses; analyses of and information about the sectors of the economy and about trades and occupations; socio-economic profiles. Labour market information makes an important contribution to improving the way the labour market operates, specifically by making available to the labour force and to businesses the information required to match labour supply with demand.

2.0 Downside committees

2.1 This consists of providing support to businesses, workers and the associations representing them in establishing downside committees and implementing customized measures to facilitate re-employment of workers subject to mass layoff.

3.0 Job preparation

3.1 Job preparation includes all measures to prepare workers for entry or re-entry into the labour force, specifically through activities leading to training and employment, through general training and initial occupational training, and through activities related to educational and occupational information, evaluation and recognition of skills, employment counselling and career guidance, and apprenticeship.

3.2 Among others, job preparation includes:

• identification of job seekers who are active claimants, so as to give them rapid access to employment measures;
• determination of clients' service needs;
• necessary assistance for developing an individualized approach for finding new employment rapidly, including employment counselling, guidance, acquisitions of skills or of job search technics, or any other activity that can help achieve the objectives established;
• action plan follow-up in order to ensure success

4.0 Entry into employment

4.1 Entry into employment includes all measures designed to help unemployed workers find work, such as employability assistance, job search clubs, work re-entry projects, training in a virtual firm, sheltered workshops, intermediate corporations work, wage subsidies for hiring, aids to mobility and so on.

5.0 Job retention

5.1 Job retention includes all measures designed to keep people working and protect existing jobs. This includes a variety of measures within the workplace, such as technical assistance and advice on human resource management, rearrangement and reduction of working hours, and support for workforce committees and so on.

6.0 Employment stabilization

6.1 Employment stabilization includes all measures of a seasonal or conjunctural nature aimed at maintaining the level of employment or lengthening the duration of seasonal, part-time or non-standard employment.

7.0 Direct job creation

7.1 Employment development is aimed at fostering and strengthening conditions that might stimulate job creation. This includes:

• mobilization and participation of individuals and labour market partners;
• marketing of the labour force;
• broadening of the work culture;
• support for the development of entrepreneurial skills;
• innovation and development of labour market adjustment and management tools.

Appendix III - Implementation mechanisms

1.0 Timetable for establishment of points of service and relocation of transferred employees

1.1 General deployment plan

1.1.1 Canada and Québec agree that the general deployment plan will be consistent with the following strategy:

1.1.1.1 deployment of the employees shall begin at various sites when Québec assumes responsibility for active employment measures and the National Employment Service, and shall be done gradually, on the basis of a deployment timetable prepared by Québec and its administrative regions. Canada shall be provided with a copy of this timetable as soon as possible, and no later than March 1, 1998. Beginning on the date on which Québec assumes responsibility, regardless of their place of work, employees shall process new employment files using the Québec and HRDC systems agreed on by the parties;

1.1.1.2 an offer of employment shall be made to each of the transferred HRDC employees in accordance with the terms and conditions set out in the Employee Transfer Agreement (ETA) that appears in Appendix IV. The offer of employment shall indicate the place of work in Québec and shall mention that a written notice, prepared by Québec and specifying the date of relocation to a Québec office, will be sent to them no later than one month prior to that date;

1.1.1.3 deployment of the employees shall be completed six months following the date of assumption of responsibility by Québec. Problematic situations in existence or not resolved by September 30, 1998, for reasons including cost and the time involved in appealing an offer shall be subject to arrangements between the two parties;

1.1.1.4 application of the proposed general deployment plan is based on the assumption that Québec will assume responsibility on April 1, 1998. Should the assumption of responsibility by Québec be delayed, the dates and deadlines agreed on for the general deployment plan shall be amended accordingly

1.2 Transfer and deployment of employees

1.2.1 Canada and Québec agree that the deployment to Québec's offices of employees from HRDC shall be done in accordance with the general plan set out in clause 1.1 of this Appendix, while ensuring continuity in delivery of services to users of the organizations concerned, respect for the competencies and expertise of the human resources, and Québec's ability to accommodate the human and physical resources transferred.

1.2.2 The parties agree that the deployment of these employees to Québec's offices shall be done in accordance with the following guiding principles:

1.2.2.1 The parties agree that the deployment of these employees to Québec's offices shall be done in accordance with the following guiding principles:

1.2.2.2 taking into account the issues specific to each local or regional situation, the assignment and deployment of the employees shall be done in such a way as to avoid, as far as possible, multiple moves for the personnel deployed;

1.2.2.3 as a general rule, the transferred human resources shall be assigned and deployed to local points of service;

1.2.2.4. the approaches to deployment may vary from one place to another. Asymmetry is possible, depending on the particular context in each local and regional environment.

1.2.3 Québec shall put in place a process for orienting the transferred human resources that includes the provision of information on the Ministère de l'Emploi et de la Solidarité du Québec, on program directions and on operational procedures and directives. This process shall begin prior to the transfer of the human resources through the holding of activities agreed on by the two parties and shall then continue as planned by Québec.

1.2.4 A training process shall begin prior to the transfer of the HRDC human resources, through activities agreed on by the two parties. In this connection, planning for the training activities shall be done jointly and shall make allowance for the service needs of the organizations involved, local particularities and the need to ensure continuity of service.

1.2.5 Canada and Québec recognize that, in Canada's and Québec's current service networks, leases and contractual commitments exist that must be taken into account in the decision-making process and in the planning of employee deployment.

1.2.6 Canada agrees to respect, as far as possible, the configuration of the HRDC points of service identified in the deployment plan until the deployment of the employees has been completed.

1.2.7 The movable and computer property of transferred federal employees shall remain at their disposal until they are deployed.

1.2.8 Québec agrees to provide each transferred employee with space, furnishings and computer equipment in line with accepted standards and adapted to the work context.

1.2.9 The Canada-Québec joint implementation committee shall monitor the transfer and deployment of the employees.

2.0 Operating terms and conditions

2.1 Mechanisms for interrelations between Québec's employment services and Canada's employment insurance services, reflecting the two parties' needs for efficiency and effectiveness, must be put in place to maintain quality of user services. These interrelation mechanisms shall be agreed on by April 1, 1998, by the Joint Committee to Implement the Labour Market Agreement.

2.2 When transferred employees are located temporarily in federal offices, the regional and local representatives of Canada and Québec shall agree on terms and conditions in that connection, in accordance with a pro forma to be agreed on by the Canada-Québec joint implementation committee, so as to respond to the needs and requirements of the service with respect to office space, automated office equipment, telephones, forms and so on. Employees located temporarily in federal offices shall be supervised by a manager designated by Québec.

2.3 Québec shall determine, in co-operation with Canada, the operating terms and conditions for referral of employment insurance claimants to Québec's points of service. These terms and conditions shall include, among other things, descriptions of the territories of the points of service concerned, in order that claimants may be directed to the appropriate point of service for the services they require (see section 3.0 of Appendix I, "Exchange of Non-Identifying Information and Data"). These operating arrangements shall be agreed on by April 1, 1998, by the Joint Committee to Implement the Labour Market Agreement.

2.4 Once Canada informs Québec of the referrals that have been made, Québec shall provide the follow-up information necessary for purposes of Employment Insurance Part 1 eligibility (see clause 2.4 of Appendix V, "Information and Data Exchange").

2.5 Canada shall provide Québec with electronic access to the historical information on participants' entitlement to employment benefits funded by the Employment Insurance Account, previous action taken by federal employees in the regular administration of active measures and the strategic selection of employment insurance users for NES support measures (see clauses 2.1 and 2.3 of Appendix V, "Information and Data Exchange").

2.6 At the time of its assumption of responsibility, Québec shall be responsible for informing each user with an active employment file containing an action plan at HRDC of the new context and the new administrative operating terms and conditions. To this end, Canada shall, in the form of computer files, provide Québec with the relevant information on the users involved (see clause 2.3.5 of Appendix V, "Information and Data Exchange").

2.7 In prospect with the continuity of user services, Canada and Québec agree on the need to transfer to Québec's systems the information contained in HRDC files on individuals for whom an action plan is in progress on the date on which Québec assumes responsibility (see clause 2.3 of Appendix V, "Information and Data Exchange").

2.8 Canada and Québec agree that, during the deployment period, they shall put in place a process of ongoing communication among local and regional administrative units, in order to ensure follow-up on operational problems connected with the deployment and with interrelations between units, particularly with regard to referral of users, and access to and use of the federal systems.

3.0 Period preparatory to assumption of responsibility by Québec

3.1 Québec shall become responsible for the directions and policies with respect to active employment measures when it takes them over. Until Québec takes over responsibility, HRDC shall remain responsible for such directions and policies.

3.2 To facilitate the assumption of responsibility by Québec, and following the signing of the Agreement, Canada agrees to:

3.2.1 provide Québec with a list, in paper and/or electronic form, of the work tools that HRDC uses in connection with the responsibilities Québec is assuming. Subject to the provisions in section 8.0 of this Agreement, Canada shall make available to Québec the tools that Québec chooses to use. However, should the cost of this arrangement prove excessive, the parties shall agree on an appropriate solution.

3.2.2 provide on a quarterly basis, until responsibility is assumed by Québec, a picture of the commitments (financial and other) that apply past the date on which the present Agreement comes into force. This picture should include data on the financial commitments and on number of participants per measure, the number of action plans that will require follow-up, as well as a list of agreements with HRDC partner organizations in the delivery of services, where such agreements will end after the date on which Québec assumes responsibility for active employment measures and NES functions. This list is to specify the names of the organizations, the employment benefit or NES support measures involved, and the date on which the agreements are to end. The arrangements concerning agreements and contracts scheduled to end after the date Québec assumes responsibility are set out in clauses 4.2 and 4.3 of this Appendix;

3.2.3 take into account, as far as possible, any orientation document provided by Québec with respect to delivery of services to participants in active employment measures;

3.2.4 co-operate with Québec on development of the operational procedures for ensuring continuity of service to clients.

3.3 Québec agrees to:

3.3.1 forward to HRDC as quickly as possible, directions on service delivery, including those relating to the organization of Québec's employment service, the active measures that Québec intends to put in place, procedures with respect to individuals involved in an active measure, use of outside organizations in service delivery, and allowances for participants in active employment measures;

3.3.2 call on HRDC staff' expertise for the development of operational directions and procedures with respect to service delivery;

3.3.3 Canada and Québec agree to give their local representatives the mandate to meet with each other following the signing of the Agreement. At these meetings, the local HRDC representatives shall provide a picture of the agreements with outside organizations that are to be renewed, and shall obtain the Québec representatives' opinion on renewal of these agreements and the related conditions. The local HRDC representatives shall also present the local management tools connected with delivery of services to the participants, and may, at the request of the local Québec representatives, make them available to Québec. They may discuss any other matter agreed on among themselves to facilitate continuity of service and follow-up on operational matters;

3.3.4 follow-up on the terms and conditions for application of this section is entrusted to the Canada-Québec Joint Committee to Implement the Canada-Québec Labour Market Agreement.

4.0 Continuity of service

4.1 Individual action plans in progress

4.1.1 Canada and Québec agree that individuals involved in active measures on the date on which Québec assumes responsibility will be allowed to complete the measures in progress under the conditions set by HRDC. Québec reserves the right to re-evaluate the action plans agreed on with these individuals when their participation in the measures ends.

4.2 Arrangement for the administration of contracts signed by Canada for the provision of financial assistance for employment insurance participants

4.2.1 Québec wishes to assume responsibility for all administration of contracts which Canada Employment Insurance Commission (the Commission) has signed with employment insurance participants, prior to the date on which Québec takes charge of active employment measures, and that call for the provision of financial assistance as part of the employment benefits established by the Commission, until all obligations set out in these contracts have been fulfilled. This arrangement shall take effect on April 1, 1998, or on a later date to be determined by the parties.

4.2.2 Moreover, effective that same date, the employees of Canada who were administering these contracts on behalf of the Commission shall become employees of Québec.

4.2.3 Canada shall inform Québec of the commitments that Canada has approved in connection with these contracts, and the amount of the contribution Canada makes available for costs related to active measures for the fiscal years concerned shall be reduced accordingly. Should the payments be less than the commitments, Canada shall remit the balance to Québec for reinvestment in the active employment measures identified in the annual plan, in accordance with clauses 5.4.1 and 5.4.2 of the Agreement in Principle.

4.2.4 The two parties therefore agree on the value of reaching an arrangement whereby Québec can administer these contracts and pay the amounts owing to participants under contracts which Canada has signed. The details of this arrangement are described in Appendix VI.

4.3 Arrangement for the administration of agreements signed by Canada for the payment of contributions to organizations in connection with employment benefits and support measures

4.3.1 With respect to agreements signed or commitments made by the Commission in respect of organizations prior to the assumption of responsibility by Québec for active employment measures to implement an employment benefit or support measure, Canada shall inform Québec of the commitments that Canada has approved under these agreements. The amount of the contribution Canada makes available for costs related to active measures for the fiscal years concerned shall be reduced accordingly. Should the payments made be less than the commitments, Canada shall remit the balance to Québec for reinvestment in active employment measures identified in the annual plan, in accordance with clauses 5.4.1 and 5.4.2 of the Agreement in Principle

4.3.2 Québec shall administer these agreements by accessing the appropriate HRDC systems, namely the CJS I (Canadian Jobs Strategy - Phase I) system and the FIS (Financial Information System) for the responsibility centers in Québec, and shall input the required information into these systems so as to ensure continued payments to these organizations by the Commission.

4.3.3 If the terms and conditions of agreements between Canada and the organization need to be changed, Québec shall amend the contract accordingly. On or before the date on which Québec assumes responsibility, HRDC shall provide Québec with a copy of these terms and conditions.

4.3.4 Fifteen days prior to the date on which Québec assumes responsibility for active employment measures, Québec shall provide HRDC with the names of the individuals authorized to amend agreements signed by HRDC and to approve any resulting changes in periodic payments. Québec shall also give HRDC three days' notice of any individual who ceases to perform this function

4.3.5 HRDC agrees to handle agreements ending after March 31, 1998, in accordance with the procedures described in Appendix VII.

4.3.6 The Canada-Québec joint implementation committee shall monitor these arrangements in order to ensure a smooth transition for the participants and the organizations.

5.0 Computerized links between the two parties to ensure continuity of operations and accessibility of the necessary information

5.1 Canada and Québec shall determine the interconnection mechanisms, agreed on in clause 7.13 of the Agreement in Principle, that will give Canada and Québec access to both parties' systems.

5.2 To facilitate development of the interconnection mechanisms, Québec agrees to do everything possible to provide Canada with the information listed below, that is,

5.2.1 at the signing of this Agreement:

• the types of equipment used (microcomputers or terminals, or a combination of the two);
• the types of links existing between these pieces of equipment and Québec's central computer;

5.2.2 no later than November 30, 1997:

• the geographical location of the offices;

5.2.3 no later than December 31, 1997:

• the street addresses of the offices.

5.3 Canada, for its part, agrees to do everything possible to establish the interconnections agreed on in clause 7.13 of the Agreement in Principle by April 1, 1998.

5.4 As long as federal employees transferred to Québec remain on Canada's premises, Canada agrees to maintain the interconnection of those employees' workstations with its systems.

5.5 As long as Québec is unable to provide connection for employees transferred to its premises, and on the basis of the technological restrictions on the two parties, Canada agrees to extend its network to the sites identified by Québec, ensuring connection with its technological infrastructures.

5.6 As long as the federal employees transferred to Québec remain on Canada's premises, the parties agree to make available, at those employees' workstations, the applications running on Québec's central computer that are identified by Québec, on the basis of the solution provided by Canada and the respective security policies of the parties.

5.7 As long as the federal employees transferred to Québec remain on Canada's premises, Canada agrees to share with Québec responsibility for providing those employees with computer support, in accordance with terms and conditions to be agreed on.

Appendix IV - Employee transfer agreement in connection with Canada-Québec Labour Market Agreement

1. Purpose

The Employee Transfer Agreement (ETA) describes in detail the offer made by Québec to the employees currently in the employ of Human Resources Development Canada (HRDC) who are affected by the Canada-Québec Labour Market Agreement in Principle.

2. Definitions

A transferred employee is an indeterminate employee of Canada who receives and accepts an offer of employment from Québec under the terms of this ETA.

The transfer date is the date on which an employee is transferred to Québec, as specified in the letter of offer.

A permanent employee is an employee who has completed his or her probationary period and has regular status with employment security, as set out in Québec's Civil Service Act.

Federal annual income is composed of the rate of pay and equal pay adjustments, where appropriate, which the transferred employee receives on his or her departure from HRDC in accordance with his or her substantive position or salary protection. Any other premium is excluded.

Québec annual pay means the annual rate of pay based on the appropriate salary scale, to which is added, where required, a lump sum amount, as provided for in clause 4.1 of this Agreement.

3. Offer of employment

Canada has recognized (Annex A) that the provisions of the Agreement in Principle allow Québec to present each of the affected employees with a reasonable job offer within the meaning of Part VII of the federal Work Force Adjustment Directive.

The Agreement in Principle covers a total of 1,084 FTEs. On the day that the Agreement is signed, Canada shall provide Québec with a list on which the parties have agreed giving the number of employees identified for transfer who will receive an offer of employment from Québec, and the name, title, group and level and place of work of each of these employees. In so far as they so agree, the parties may, in special circumstances and up to the effective transfer date, modify the list of employees identified for transfer.

Once the Implementation Agreement has been signed, Québec shall present in writing a personalized offer of employment (Annex B) to each employee identified for transfer, in accordance with the terms and conditions set out herein. The offer of employment shall take into account, among other things, the following:

• since each transferred employee will have completed his or her probationary period at HRDC at the time of transfer, his or her status as a permanent employee at the Ministère de l'Emploi et de la Solidarité shall be confirmed, and, consequently, he or she shall obtain the employment security for which provision is made in the Québec Civil Service ;
• the transferred employee shall be offered employment at a location less than 40 km from his or her current place of work; he or she shall be ensured stability in this regard for a minimum of one year beginning on the date of transfer ;
• the employee shall have 60 days to accept or refuse Québec's offer. Such offer shall be deemed to have been made seven days following the date on which it is sent.

Canada shall be provided with a copy of these offers on the day on which they are sent.

4. Salary and other conditions of employment

The conditions of employment of transferred employees shall be those for which provision is made in the applicable collective agreements or directives, subject to specific directions contained in this Agreement.

For the purposes of application of this section, the data communicated by Canada, Human Resources Branch of HRDC, shall be the only data recognized by Québec.

4.1 Salary

The transferred employee shall occupy a position at an employment grade that corresponds to the usual main duties he or she performed at HRDC (Annex C). He or she shall be paid at a salary step equal to or immediately above his or her federal annual income, transposed on the basis of a 35-hour week. If applicable, the difference between the federal annual income before transfer and the Québec annual rate of pay after transfer shall be paid on a pro rata basis in each pay period, in the form of a lump sum, and this lump sum amount shall be taken into account in calculating the employee's and employer's contributions to the pension fund.

The Québec annual pay of the transferred employee shall reflect the adjustments in federal annual income due to pay equity or the concluding of new collective agreements, in so far as these are signed and in force before the transfer date.

4.2 Seniority

The seniority of each transferred employee is defined as the combined total of all his or her continuous and discontinuous periods of employment in Canada; it shall be recognized and credited as continuous service for purposes of application of the measures provided for in the applicable conditions of employment, including those with respect to reserve lists.

4.3 Vacation (annual leave)

Québec shall recognize, for each transferred employee, the annual leave credits (in days of annual leave) earned as of the transfer date. However, the employee may carry over only once, from one fiscal year to another, the credits transferred from HRDC.

Acquired rights to 25 days of annual leave for transferred employees with between 19 and 24 years of service on the date of transfer shall be recognized by Québec.

4.4 Sick leave

Québec shall recognize, for each transferred employee, the sick leave credits (in days of sick leave) earned as of the transfer date.

These transferred sick leave credits shall serve only for purposes of wage-loss insurance, in accordance with the applicable conditions of employment, for use on a priority basis in the case of absence because of illness, and in no case shall Québec be expected to convert them into cash.

4.5 Work schedules

Each identified employee shall receive an offer of a regular full-time job, for which the normal hours of work shall be those provided for in the applicable conditions of employment.

With respect to part-time employees identified for transfer, Québec shall, in so far as possible, ensure that the incumbents of these positions may continue to work on that same basis.

4.6 Other credits

No leave credits accumulated in connection with employment in the Public Service of Canada other than sick leave or annual leave credits may be transferred to Québec.

5. Union

Transferred employees who are not excluded from bargaining and who are unionized in the Québec Civil Service shall be governed by the collective agreement applying to the personnel covered by the appropriate bargaining unit (professionals or civil servants), under section 137 of the Act respecting the Ministère de l'Emploi et de la Solidarité and establishing the Commission des partenaires du marché du travail.

Transferred employees who are not excluded from bargaining but are not unionized shall be governed by the directive applying to non-unionized employees.

Transferred employees who are excluded shall be governed by the directives applying to the appropriate personnel category, in particular senior managers, middle managers or human resource management advisers.

6. Special situations

6.1 Parental rights

A transferred employee on maternity leave on the transfer date shall receive the number of weeks of benefits and allowances provided for in the applicable conditions of employment and, subsequently, may obtain leave without pay as an extension of the maternity leave under these same conditions of employment.

A transferred employee who, on the date of transfer, is on leave without pay for the care and nurturing of preschool-age children may complete that leave with Québec, on the basis of the leave period authorized by Canada.

6.2 Leave without pay (self-funded leave)

Québec shall respect the commitments made by Canada with regard to employees absent on self-funded leave on the transfer date. These employees shall be transferred on the planned transfer date and, on their return to work, they must pay the employee's share for the applicable pension plan for the leave period.

Commitments made by HRDC with respect to employees who, on the transfer date, are in the process of deferring part of their salary with a view to taking self-funded leave on a date subsequent to the transfer shall also be respected, on the understanding that all of the sums placed in trust shall be accessible to Québec.

6.3 Absence due to disability (illness, disability and occupational injury)

An employee who has accepted Québec's offer of employment and who is absent owing to disability on the transfer date shall be integrated on that date, insofar as the prognosis recorded on a medical certificate indicates a specific date of return to work.

6.4 Other authorized absences

Québec shall respect the commitments made by Canada in the case of employees whose absence with or without pay it has authorized. These employees shall be transferred on the planned transfer date and shall be subject to the applicable conditions of employment.

Any extension or renewal shall be subject to the applicable conditions of employment.

7. Health wage-loss and life insurance plans

Québec shall register the transferred employees, their eligible spouses and their dependents in the health insurance plan corresponding to their respective employment category.

The employees shall register themselves in the following additional plans, which may be mandatory or optional, depending on the applicable conditions of employment:

• extended health insurance;
• life insurance;
• long-term wage-loss insurance.

No proof of insurability shall be required for protection equivalent to that held prior to transfer, and the waiting periods shall not apply.

The short-term disability plan provided for in the conditions of employment for employees in the Québec Civil Service shall apply to the transferred employees.

8. Dental care plan

During the period in which the dental care plan is in force, Québec shall provide Canada with the information concerning departures of employees owing to retirement, death, leave without pay for more than three months, or, at the employee's request, transfer outside the Ministère de l'Emploi et de la Solidarité.

9. Pension plan

Employees transferred to Québec under this Agreement shall be subject to the RREGOP or the RRPE beginning from the transfer date. The transferred employees shall, within one year of the transfer date, choose one of the following options with respect to the years of pensionable service in the federal government to their credit under the Public Service Superannuation Act (PSSA):

• transferring their federal pensionable service credits to the government and public employees retirement plan (RREGOP) or the management staff retirement plan (RRPE). This option shall be exercised under the current transfer agreement, signed on December 12, 1984, between Québec's Commission administrative des régimes de retraite et d'assurances and the Government of Canada, and the amendments thereto; or
• not transferring the credits for pensionable service in the employ of the Government of Canada.

If an employee chooses not to transfer credits for service in the employ of the federal government, the service credited under the PSSA shall count for purposes of eligibility for a retirement pension or other benefit payable under the RREGOP or the RRPE; conversely, service credited under the RREGOP or the RRPE shall be taken into account for purposes of eligibility for a pension or benefit payable under the PSSA.

Québec shall take the necessary measures to ensure that service in the employ of the federal government is recognized upon retirement and that the combined total of these years and those credited under the RREGOP or the RRPE does not exceed 35 years of service at the time of retirement, or any other criterion in force at that time.

10. Co-operation

Québec agrees to co-operate with Canada to enable it to communicate with the transferred employees, with a view to, among other things, paying them any form of remuneration to which they may be entitled for any period preceding their transfer to Québec.

Canada agrees that, at Québec's request, it shall provide the transferred employees' records of employment, where those records are required - for example, for employment insurance purposes.

Annex A

Letter of recognition by Canada of reasonableness of Québec's offer of employment under agreement in principle

Apr/Avr 21 1997 (stamped)

Mr. Michel Noël de Tilly
Deputy Minister
Ministère de la Sécurité du revenu
Government of Quebec
425, rue Saint-Amable, 4^th floor
Québec, QC
G1R 4Z1

Dear Mr. Noël de Tilly,

I am writing to inform you of my decision regarding the nature of the offer of employment extended by Quebec to those federal employees who were transferred.

I would therefore like to confirm that, with regard to human resources, the provisions of the Canada–Quebec Labour Market Agreement-in-Principle that was recently signed by our respective governments constitute a reasonable offer of employment under Part VII of the Federal Work Force Adjustment Directive.

As agreed to by our respective governments, we will define the terms of these provisions during upcoming discussions on the Canada–Quebec Labour Market Implementation Agreement.

Yours sincerely,

(signed)

Mel Cappe

Annex B

Personalized offer of employment model

Québec City, [month and day], 1997

[Name and work address]

Dear Mr. [last name]/Ms. [last name]:

In April 1997, an Agreement in Principle regarding the labour market was reached between Canada and Québec.

Under this Agreement, the Government of Québec agreed to present all federal employees affected by the transfer with a reasonable job offer, as defined in the federal Work Force Adjustment Directive.

Your name appears on the list of employees identified for this transfer. Consequently, the purpose of this letter is to offer you a job [status, corps and job grade] in [administrative unit] in [town or city] beginning [date]. We will contact you in writing one month prior to the date of the move to the Québec premises. Your yearly rate of pay, calculated on the basis of 35 hours per week, will be [$], corresponding to Level X of the job grade attributed to you. [However, your current yearly income of [$] will be maintained in full through payment of a lump sum calculated annually and distributed over each pay period].

Attached hereto is a summary of functions and responsibilities for this job grade, and the corresponding pay scale.

The conditions relating to this transfer offer are defined in the Employee Transfer Agreement reached between the two governments (copy appended).

You have 60 days in which to accept or refuse this offer. This 60 day period begins on the seventh day following the date of this letter.

If you accept this offer, please complete the following forms:

• response to offer of employment, "acceptance of offer" section;
• offer of service;
• forms pertaining to the supplementary health, wage-loss and life insurance plans;
• request for automatic transfer of pay; and
• employment equity form;

and forward them, by registered mail, to the Human Resources Directorate, at the following address, no later than [67^th day following date of letter]:

[Name of contact person]

Ministère de l'Emploi et de la Solidarité
Human Resources Directorate
425 St-Amable St, 4^th Floor
Québec City, Québec
G1R 4Z1

If you exercise your right of refusal, we ask that you inform the Human Resources Directorate of the Ministère de l'Emploi et de la Solidarité of this by registered mail, using the attached "Response to Offer of Employment" form.

If you accept this offer of employment, we assure you that we will make every effort to ensure that your integration into the new Ministère de l'Emploi et de la Solidarité takes place as smoothly as possible.

Yours truly,

François Giroux
Human Resources Director

encl.

cc: Human Resources Development Canada

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Canada-Québec employee transfer agreement - Response to offer of employment form

Acceptance of offer

I, the undersigned, accept the Government of Québec's offer of employment, subject to the conditions described in the letter of offer sent to me and in the Canada-Québec Employee Transfer Agreement.

I therefore authorize Human Resources Development Canada to disclose the information needed for my integration into the Québec Civil Service, that is:

• copy of birth certificate or equivalent;
• annual salary;
• work schedule;
• seniority acquired in federal Public Service;
• annual and sick leave credit balances;
• health, life and disability insurance protection;
• requests for changes, pending decision by insurance company;
• personal tax credits, personal tax relief, and non-indexable tax credits (contributions to Fonds de solidarité des travailleurs du Québec RRSP);
• contributions deducted for Québec Pension Plan on transfer date;
• employment insurance premiums deducted on transfer date;
• miscellaneous deductions (Québec and Canada Savings Bonds, United Way, savings deductions).

Name of Employee

Employee's Signature

Date

Refusal of offer

I, the undersigned, refuse the Government of Québec's offer of employment, as formulated in the letter of offer sent to me and in the Canada-Québec Employee Transfer Agreement.

Name of Employee

Employee's Signature

Date

Annex C

Conversion of HRDC Positions to positions in Québec classification structure

Federal classification	Québec classification
AS-03	264-05	Technicien en administration, classe principale
AS-06 (NHQ)	108	Analyste de l’informatique et des procédés administratifs
CR-02	200-10	Agent de bureau, classe nominale
CR-03	200-10	Agent de bureau, classe nominale
CR-02/CR-03 (Screener)	276-10	Téléphoniste-réceptionniste
CR-04	200-10	Agent de bureau, classe nominale
CR-05	264-10	Technicien en administration, classe nominale
CS-01	272-10	Technicien en informatique, classe nominale
FI-01	103	Agent de la gestion financière
FI-02	105	Agent de recherche et de planification socio-économique
OM-02	272-05	Technicien en informatique, classe principale
PE-03	100	Conseiller en gestion des ressources humaines
PM-01	214-10	Agent d’aide socio-économique, classe nominale
PM-02	214-10	Agent d’aide socio-économique, classe nominale
PM-03	214-05	Agent d’aide socio-économique, classe principale
PM-04 (Manager, HRCC)	650-06	Cadre intermédiaire, classe 6
PM-04 (Consultant, HRCC and ROC )	111	Attaché d’administration
PM-04 (Consultant, DGPS)	105	Agent de recherche et de planification socio-économique
PM-05 (Manager, HRCC)	650-07	Cadre intermédiaire, classe 7
PM-05 (Consultant, IAS)	111	Attaché d’administration
PM-05 (Consultant, DGPS and, NHQ)	105	Agent de recherche et de planification socio-économique
PM-06 (Manager, DGPS )	630-04	Cadre supérieur, classe 4
PM-06 (Consultant, NHQ)	105	Agent de recherche et de planification socio-économique
ST-SCY-03	221-10	Agent de secrétariat, classe 1
ST-OCE-01	200-10	Agent de bureau, classe nominale

Appendix V - Information and data exchange

1.0 General provisions governing information and data exchange

1.1 Purposes

1.1.1 The parties agree that the information and data exchange addressed in this Appendix pertains to active employment insurance claimants, and other employment insurance participants or users affected by active employment measures offered by Québec. This information exchange is needed to facilitate application of the relevant legislation of both governments.

1.2 Confidentiality, Access, and Security

1.2.1 Both parties acknowledge that the information they will be exchanging is confidential, and agree:

• to control access to the information and restrict access to authorized persons only, and solely to the extent that knowledge of the information is required in the performance of their duties;
• to abide by the security requirements of both parties, including employee security clearance policies;
• to use the information solely for the purposes intended.

1.2.2 Access to information obtained online shall be restricted by means of a permanent identification code specifically assigned to each person authorized to work at a terminal or microcomputer, and by means of temporary, self-selected personal passwords. These passwords may be changed periodically in order to comply with security policies at all times.

1.2.3 Information shall generally be accessed interactively (online), but shall occasionally be accessed off-line. The parties shall access each other's data banks interactively in accordance with operational requirements, by means to be agreed on after each of the parties has carried out its evaluations. Off-line information transfers shall be effected through data communication links that Canada and Québec will set up and maintain in accordance with the interconnection arrangements set out in this Agreement.

1.2.4 In the case of information exchange for abuse detection purposes, information may be exchanged on a case-by-case basis by telephone, or through access to paper files. The requestor in such cases will be required to produce proof of identity, as well as evidence that he or she is duly authorized to obtain the requested information or access.

1.2.5 The parties agree to work together to detect and prevent any unlawful use of exchanged information. To this end, as soon as the Implementation Agreement is signed, each of the parties shall appoint a security official.

1.3 Accuracy

1.3.1 Canada and Québec agree to ensure that the information they provide accurately reflects the information they hold. However, they make no guarantee as to the quality or accuracy of the information exchanged between them, and are not responsible for any damage resulting from the provision of inaccurate or incomplete information.

1.4 General

1.4.1 Each party agrees to indicate, on the relevant forms it provides to the public, that the information contained therein will be made available to both governments. The parties agree, in the 60 days following the signing of this Agreement, to identify existing forms and to agree on the wording to be used to this end.

1.4.2 Before making a decision concerning a person on the basis of information obtained from the other party, each party agrees to give the person concerned an opportunity to be heard, and to provide the person with reasonable notice in writing.

2.0 Information and data to be exchanged

2.1 Information exchange with regard to entitlement to employment benefits and strategic selection of employment insurance users for NES support measures.

2.1.1 Purposes

2.1.1.1 To enable Québec to determine whether participants are entitled to employment benefits funded by the Employment Insurance Account and to assist in the strategic selection of employment insurance users for NES support measures, Canada shall provide Québec with the following data.

2.1.2 Information to be provided by Canada

• name
• social insurance number
• address
• date of birth
• benefit period commencement date
• date of renewal application
• claim status
• weekly benefit rate
• number of insurable hours
• date claim terminated
• weeks of entitlement
• number of weeks paid
• type of benefit paid

2.1.3 Means

2.1.3.1 The information in question shall be transmitted online (through inquiry screens) using the National Employment Services System (NESS) and relevant screens in the On-Line Insurance System (OLIS) such as: Current Claim and Trailer Information (EN05); Balance of Trailers (EN06); Manual Pay Claim Information (EN11); SEA (Self-Employment Assistance) Additional Information (EN12); and Pay History Summary (PHQ). Some of the aforementioned transactions shall eventually be replaced by transactions using the Système d'identification des individus (GDI) and the Système Apte et soutien financier, volet aide à l'emploi (DEIE) through the HRDC data banks, in accordance with terms and conditions to be agreed on by the parties.

2.2 Information exchange with regard to continued payment of benefits and assessment of continued entitlement (Part I)

2.2.1 Purposes

2.2.1.1 To enable Canada to assume its responsibility with regard to continued payment of benefits to employment insurance claimants as well as the assessment of their continued entitlement, Québec shall provide Canada with the following information.

2.2.2 Information to be provided by Québec

• name
• social insurance number
• address
• date of birth
• involvement in an active measure
• name of measure in which person is involved
• start and end dates of participation in measure
• placement
• return to work
• whether left or refused employment
• whether withdrew from or refused to participate in measure
• reason for withdrawal, departure or refusal
• date of event mentioned

2.2.3 Means

2.2.3.1 For initial data entry, information shall be transmitted through OLIS data entry screen T171 (Special Claim Information). Changes, as well as reasons for leaving or refusing employment or for withdrawing from or refusing to participate in a measure, shall be transmitted by means of a computer link as described in clause 8.2.1 of this Agreement. The information required shall come from the HRDC systems (NESS, CJS) or from the Système d'identification des individus (GDI), the Système Apte et soutien financier, volet aide à l'emploi (DEIE) and the Système des données ministérielles (SDM).

2.3 Information exchange concerning persons in respect of whom an action plan is in progress on date Québec assumes responsibility

2.3.1 Purposes

2.3.1.1 To enable Québec to ensure continuity of service in general, as well as the continuity of each action plan in progress, Canada shall provide Québec with the following information.

2.3.2 Information to be provided by Canada

• name
• social insurance number
• address
• date of birth
• employment concerns/needs
• action plans agreed on with client
• measures carried out to date/ in progress
• source and amount of financial assistance

2.3.3 Means

2.3.3.1 This information shall be transmitted online using the National Employment Services System (NESS), the Canadian Jobs Strategy On-Line Systems (CJS I and II), and the relevant On-Line Insurance System (OLIS) screens.

2.3.4 Basis of availability

2.3.4.1 These information transfers shall be made available on a continual basis as of the date Québec assumes responsibility for active employment measures.

2.3.5 Transitional procedure

2.3.5.1 On the date of transfer, Québec shall become responsible for advising each of the users with an active employment claim (action plan) of the new context and the new administrative procedures. Canada shall provide Québec with a special computer file containing the names, social insurance numbers and addresses of the users in question.

2.4 Information exchange with respect to Canada's referral of active claimants

2.4.1 Purposes

2.4.1.1 To enable Canada to assume its responsibilities with respect to the Employment Insurance Account and the assessment of continued entitlement, Québec shall send Canada information concerning active claimants who did not attend an interview with Québec following their referral by Canada.

2.4.2 Information to be provided by Québec

• name
• social insurance number
• address
• date of missed interview appointment

2.4.3 Means

2.4.3.1 This information shall be provided through means that remain to be determined by the parties, in accordance with clause 5.7.1.3 of the Implementation Agreement.

2.5.1 Purposes

2.5.1.1 To enable Québec to assume its responsibilities with regard to planning, analysis, establishment of targets and tracking of results, Canada shall provide Québec with the following information.

2.5.2 Information to be provided by Canada

• social insurance number
• date of birth
• information related to participation in active measure, such as employment outcome and detailed savings, type of measure, the centre responsible for the participant, and so on

This information is found in the Human Resources Investment Fund (HRIF) data file.

2.5.3.Means

2.5.3.1 Canada shall send Québec the relevant HRIF data file and the compilation of results concerning savings realized in the Employment Insurance Account.

2.5.4 Basis of availability

2.5.4.1 This information shall be provided on a monthly basis.

2.5.5. Information exchange with respect to establishment of targets, and analysis and follow-up of results

2.6. Information exchange with regard to results measurement

2.6.1 Purposes

2.6.1.1 To enable Canada to calculate the savings realized in the Employment Insurance Account and inform Québec of the results of that calculation, Québec shall provide Canada with the following information.

2.6.2 Information to be provided by Québec

2.6.2.1 In respect of all active employment measure participants

• social insurance number
• number of the centre responsible
• code or file number for measure
• case management or action plan start date
• action plan completion date
• outcome of action plan: employed, self-employed, unemployed, incomplete
• action plan closing date

2.6.3 Means

2.6.3.1 The data required for this exchange of information shall come from the HRDC systems (NESS, CJS) or the Système d'identification des individus (GDI), the Système Apte et soutien financier, volet aide à l'emploi (DEIE) and the Système des données ministérielles (SDM), by means of a computer link as described in clauses 8.2.1 or 8.2.2 of this Agreement, depending on the systems used. The information shall be incorporated into a Human Resources Investment Fund (HRIF) database, so that the information can be matched with the Benefit and Overpayment Master File (BNOP) for the purpose of calculating savings and recording the results.

2.6.4 Basis of availability

2.6.4.1 This will depend on the system used by Québec to manage participants' files:

• if the NESS is chosen, the information shall be transmitted online as a matter of course;
• if another system is used, the information shall be uploaded to Canada's systems (NESS) monthly.

2.7 Information exchange for the purpose of evaluating active measures

2.7.1 Purposes

2.7.1.1 In order to enable Québec to conduct its evaluations, Canada shall provide Québec with the following information.

2.7.2 Information to be provided by Canada

2.7.2.1 Data and information concerning clients (individuals and employers), including socio-demographic and employability characteristics.

2.7.3 Means

2.7.3.1 The other information or data to be exchanged, which will be identified in the context of evaluations, shall be discussed in accordance with the mechanism set out in clause 5.4 of the Implementation Agreement, and exchanged within the framework of clause 5.7.1.3 of the Implementation Agreement.

2.8 Information exchange for the purpose of assessing the impact of amendments to federal legislation

2.8.1 Purposes

2.8.1.1 In order to enable Canada to observe and assess the way individuals, communities, and the economy adapt to changes brought about by federal legislation, and to enable Canada to report to Parliament with regard to the foregoing, Québec shall provide Canada with the following data.

2.8.2 Information to be provided by Québec

2.8.2.1 In respect of all active employment measure participants

• name
• social insurance number
• address
• date of birth
• sex
• type of family (if available)
• marital status (if available)
• number of dependents (if available)
• member of designated group (if self-identified)
• assessment of employability
• name of program in which person is enrolled
• name of employer or sponsor
• length of measure
• cost of measure
• educational attainment
• type of employment obtained
• date of return to work
• length of employment (if not otherwise available)
• earnings (if not otherwise available)

2.8.3 Means

2.8.3.1 The means to be used shall be discussed in accordance with the mechanism set out in clause 5.4 of the Implementation Agreement. These exchanges shall be carried out within the framework of clause 5.7.1.3 of the Implementation Agreement. The information required for such information exchange shall come from the HRDC systems (NESS, CJS) or from the Système d'identification des individus (GDI), the Système Apte et soutien financier, volet aide à l'emploi (DEIE) and the Système des données ministérielles (SDM), among others, through a computerized link, as described in clauses 8.2.1 or 8.2.2 of this Agreement.

2.9 Information exchange for recovery purposes

2.9.1 Purposes

2.9.1.1 The parties agree to exchange the following information in order to recover overpayments made in the course of administering the Employment Insurance Account.

2.9.2 Information to be provided by both parties

2.9.2.1 with regard to person's identity

• last name, first name, address and telephone
• social insurance number
• date of birth
• reference number (file)
• local office number

2.9.2.2 with regard to request for information:

• employer's name, address and telephone number
• address and telephone number if different from identity information
• type of participation in Canada or Québec measure
• rate of allowances and indemnities paid
• amount of funding from grants/contributions

2.9.3 Means

2.9.3.1 The exchanges shall be done on an ad hoc basis, in accordance with communication security procedures agreed on by the parties.

2.10 Information exchange with respect to detection and control of abuse

2.10.1 Purposes

2.10.1.1 Québec and Canada shall exchange the following information in order to enable each of them to comply with applicable legislation and to assume their responsibilities under the Agreement in Principle with regard to the propriety of amounts paid, and the detection and control of abuse.

2.10.2 Information to be provided by both parties

• name
• social insurance number
• client's address
• date of birth
• sex
• type of family (if available)
• marital status (if available)
• number of dependents (if available)
• member of designated group (if self-identified)
• educational attainment
• usual employment
• earnings
• date of claim
• benefit period start and end dates
• date of renewal claim
• claim status
• weekly benefit rate
• number of insurable hours
• weeks of entitlement
• number of weeks paid
• type of benefit paid
• enrollment in an active measure
• name of program or measure in which person is enrolled
• participation start and end dates
• placement/return to work
• whether left or refused employment
• whether withdrew from or refused to participate in a measure
• date of event reported
• employment concerns/needs
• action plan
• measures completed to date/in progress
• source and amount of financial assistance paid
• case management/action plan commencement date
• action plan completion date
• action plan outcome: employed, self-employed, unemployed, incomplete
• action plan closing date
• employability assessment
• length of measure
• detailed cost of measure
• type of employment obtained
• date returned to work
• length of employment
• failure to take advantage of employment opportunity
• name, address, telephone number of employer/coordinator of measure
• address and telephone number if different from employer identification
• type of participation in a Canada or Québec measure
• amount of funding from grants/contributions
• information concerning previous investigations (dates, reasons, results, action taken)
• number of responsibility center
• file number or code
• reference number (file)
• savings generated (if available)

2.10.3 Means

2.10.3.1 These exchanges shall be done on an ad hoc basis using the communication methods agreed on by the parties, as provided in clause 5.7.1.3 of the Implementation Agreement.

2.10.4 Basis of availability

2.10.4.1 As needed.

2.10.5 Other mechanisms

2.10.5.1 The parties agree to consider developing abuse detection procedures in accordance with clause 5.7.1.3 of this Agreement, and to specify in a separate agreement the terms and procedures governing such information exchanges.

Appendix VI - Arrangement for the administration of contracts signed by Canada for the provision of financial assistance for employment insurance participants

1.0 Purpose

1.1 The purpose of this Appendix is to describe the contracts to which this arrangement applies, the forwarding of information by Canada regarding these contracts, the terms and conditions under which these contracts shall be administered, the obligations of each party, the reports that Québec shall submit to Canada regarding its administration and funds disbursed, and other relevant considerations.

2.0 Description of contracts

2.1 The contracts covered by this arrangement are contracts that the Commission has signed with employment insurance participants, prior to the date on which Québec assumes responsibility for the active employment measures, to provide them with financial assistance under its employment benefits.

2.2. Only the contracts for which the obligations of either the Commission or a participant have not yet been fulfilled at the time that Québec assumes responsibility shall be covered by this arrangement.

2.3 The Commission's contracts entered in the On-Line Insurance System (OLIS) that combine insurance benefits and financial assistance are not covered by this arrangement and shall continue to be administered by HRDC. It is also agreed that the payment of insurance benefits (Part I) to all employment insurance claimants shall remain the exclusive responsibility of Canada.

2.4 On the day that this arrangement comes into effect, Canada shall give Québec a complete list of the contracts that Québec will become responsible for administering under this arrangement. This list shall contain the following information: the name of the participant, the participant's social insurance number, the starting date and completion date of the activity for which financial assistance is provided under the contract and the anticipated amount of the commitments resulting from the activity approved by HRDC. On the same day, Canada shall give Québec access to the computerized files on participants whose contracts are covered by this Agreement and contained in the following HRDC systems:

• CJS II (Canadian Jobs Strategy II) ;
• OLIS (On-Line Insurance System) and
• FIS (Financial Information System).

Canada shall also give access to any information in the paper files that is required.

3.0 Canada's obligations

3.1 To enable Québec to make the payments owed to participants, on the first of each month, Canada shall issue an advance in the amount of the total expenses to be incurred for that month under all of the contracts covered by this arrangement.

3.2 After Québec has provided the reports mentioned in clause 4.6 of this Appendix, Canada shall make any necessary adjustments to the amount of the advance for the following month. It is understood that any increase in this advance shall be subject to Québec demonstrating that the contract changes approved by Québec comply with the terms and conditions set out in clause 4.3 of this Appendix and that the increases are not offset by lower than anticipated costs under other contracts.

3.3 Canada shall provide the Québec employees authorized by Québec to administer the contracts and make any changes to them with the access code to the CJS II systems, certain OLIS screens and the FIS (for responsibility centres in Québec). The access codes shall be provided subject to the same conditions that apply to HRDC employees. The number of employees that will have access to the systems shall not exceed the number set out in the Agreement in Principle, namely 1,084 transferred employees and 542 other Québec employees.

4.0 Québec's obligations

4.1 Québec agrees to comply with the financial commitments made by Canada in the contracts for which Québec is assuming administrative responsibility. The periodic payments negotiated with participants shall be continued by Québec on the same basis, at the same intervals and, subject to clause 4.3 of this Appendix, in the same amounts until the end of the contract.

4.2. Québec shall administer these contracts by accessing the HRDC systems in question, namely the CJS II system, certain OLIS screens and the FIS (for responsibility centres in Québec), and shall make the necessary changes to these systems to ensure that payments continue and the data is transmitted to HRDC.

4.3 If the terms and conditions of a financial assistance contract between Canada and a participant need to be changed, Québec shall amend the contract accordingly. On or before the date that this arrangement comes into effect, HRDC shall provide Québec with a copy of these terms and conditions.

4.4 Fifteen days before this arrangement comes into effect, Québec shall provide HRDC with the names of the individuals authorized to amend the contracts signed by HRDC and to approve any changes that may affect payments made every second week. Québec shall also give HRDC three days' notice of any individual who ceases to perform this function.

4.5 Québec agrees to put in place security measures consistent with HRDC's measures in order to protect the integrity of HRDC's systems to which Québec has access and to ensure that only authorized individuals have access to these systems.

4.6 Québec agrees to provide HRDC with confirmation of payments made under this Agreement within seven working days of the payments being made. Québec shall also send Canada all information regarding cancelled cheques.

4.7 Within 25 days of the end of each fiscal year during which Québec performs transactions on behalf of Canada under this arrangement, Québec shall provide Canada with a written acknowledgment setting out the amounts advanced and the disbursements made in respect of these advances. Any surplus shall be returned to Canada immediately. Québec shall provide Canada with all reports and certificates that the Receiver General for Canada may need for purposes of the Public Accounts of Canada.

5.0 Transmission of information required for issuing cheques

5.1 Once a week, Canada shall provide on computer tape the information required to issue cheques to participants to whom a cheque is payable during that week. This information shall be provided in the format used by Canada to print its own cheques.

6.0 Recovery of overpayments

6.1 As soon as Québec receives any information to the effect that payment has been made under this Agreement to a participant who was not entitled to receive this payment, Québec shall convey the information to Canada. Canada shall be responsible for taking steps to establish overpayments, as set out in clause 5.6.4 of this Agreement.

7.0 Forms for yearly income tax returns

7.1 Canada shall issue T-4 and TP-4 forms in February of each year during which this arrangement remains in effect to participants whose contracts are covered by this Agreement, and shall include on these forms the amounts paid by Canada and by Québec under this arrangement.

8.0 Information to participants

8.1 In order to inform employment benefit participants of this transfer of responsibility, a notice shall be issued jointly by the two parties to the recipients who will be receiving a cheque from Québec for federal contracts after the date Québec assumes responsibility.

Appendix VII - Arrangement for the administration of agreements signed by Canada for the payment of contributions to organizations in connection with employment benefits and support measures

1.0 Employment benefits

1.1 Targeted wage subsidies

1.1.1 These agreements are signed with employers for an average term of 23 weeks. In order not to penalize clients eligible to this benefit, Canada shall negotiate the agreements in close cooperation with Québec. The agreements with HRDC shall cover the period ending March 31, 1998. Continuation after that date shall be the subject of an agreement with Québec. This type of agreement answers a specific need and the chances of extension or renewal are negligible.

1.2 Job creation partnerships

1.2.1 These agreements are signed with employers and non-profit organizations for an average term of 16 weeks. In order not to penalize clients eligible to this benefit, Canada shall negotiate agreements with a termination date of no later than July 31, 1998. It should be noted that organizations receive financial assistance only in exceptional cases. More often, the agreements are used to enable the hiring of participants who are then paid using the financial assistance provided by HRDC.

1.2.2 Given the average length of this benefit, the agreements signed in March would end during the month of July of the same year, barring exceptions. Since these agreements answer a specific need, the chances of extension or renewal are negligible.

1.3 Self-employment

1.3.1. These agreements are signed with co-ordinating organizations for an average term of 52 weeks. Of the 90 agreements in effect as of March 31, 1998, 86 will terminate on that date and will therefore have to be renewed by Québec on April 1, 1998 if Québec decides to use this type of organization to implement an active measure in connection with clause 3.1.3 A) iv) of the Agreement in Principle.

1.4. Skills acquisition: training projects

1.4.1 These agreements are signed with private or non-profit organizations for an average term of 30 weeks. HRDC has already told these organizations that it cannot legally sign agreements with payments going beyond June 30, 1999. The amount of activity for this transitional benefit has decreased considerably over the past two years. Since Québec is already involved in evaluating training content, the agreements ending after March 31, 1998 could be completed through an agreement with Québec for the period from April 1, 1998 to the ending date of the activity.

2.0 Support measures

2.1 Employment assistance services

2.1.1 These agreements are signed with private or non-profit organizations for an average term of 40 weeks. The nature of the activities varies considerably depending on the participants and the needs of the Canada Human Resource Centres. In order not to penalize clients receiving services offered by these organizations, HRDC undertakes not to sign agreements ending later than July 31, 1998. Of the 340 agreements in effect as of March 31, 1998, 190 will end on March 31, 1998. Québec will have to decide whether or not to renew these agreements, depending on the nature of the service delivery system it wishes to set up.

2.2 Labour market partnerships

2.2.1 These agreements are signed in the context of partnership agreements with private or non-profit organizations. This means that HRDC is never the only organization funding the entire activity. Since the average length of these activities is 60 weeks, HRDC suggests that it continue to negotiate such agreements for the period up to March 31, 1998, and that Québec assume responsibility for the part of the agreements for the period running from April 1 until the end of the activity.

Appendix VIII - Financial results - Fiscal year 19XX-19XX

Revenues

Contribution paid for active employment measures funded from the Employment Insurance Account

Expenditures

Active measures funded from the Employment Insurance Account

List range of employment benefits and support measures, as identified in the annual plan, in accordance with clauses 5.4.1 and 5.4.2 of the Agreement in Principle:

xxxxx-xxxxxx
xxxxx-xxxxxx

Total employment benefits and support measures: -xxxxx

Less:

1. Overpayments recovered Loans reimbursed -xxxxxx
2. Loans reimbursed - xxxxxx

Net expenditures for employment benefits and support measures: xxxxxxx

Balance remaining of contribution for active employment measures

Revenues

Contribution paid in advance for costs related to the administration of active employment measures and the National Employment Service functions

Expenditures

Costs related to the administration of active employment measures and the National Employment Service functions funded by the Employment Insurance Account

Balance remaining of the contribution related to the administration of active employment measures and the NES functions

Appendix IX - Description of furniture and equipment

1.0 Unless otherwise specified, the standard workstation shall have an ergonomic work surface and chair, and 20 linear feet of acoustic screening. It may also include one or two chairs for visitors, a filing cabinet and/or a bookshelf.

2.0 Unless otherwise specified, the standard computer equipment shall include a microcomputer with network card, peripherals (monitor, keyboard, mouse, local printer "if necessary"), software (DOS 6.2, Windows 3.1, Unisys terminal emulator, Netscape Internet/Intranet browser, Claviste ("to define the keyboard"), and one networked laser printer for every 12 users

Ask client for image

3.0 For each computer workstation transferred to Québec, Canada will provide:

1. make and model of computer;
2. make and model of BIOS;
3. type of processor;
4. MB of RAM;
5. capacity of diskette drive;
6. capacity of hard disk after formatting;
7. type of CD-ROM;
8. number of parallel ports (if more than one);
9. number of serial ports (if more or fewer than two);
10. type, make and model of network card;
11. type of monitor;
12. number of keys, type of keyboard;
13. type of mouse;
14. operating system, including version;
15. version of all software and language in which written (if other than French);
16. full information on warranties where applicable.

4.0 In addition to the computer workstation descriptions, Canada will also provide a description of the types of video card used in HRDC computers.

5.0 All hardware and software transferred by Canada shall be accompanied by:

1. boot disks
2. applicable warranties
3. licences or other ownership documents.

6.0 Considerations relating to the assumption of responsibility by Québec for the moving process

6.1 At each HRDC site, identify the furniture and equipment in terms of floor plans at Québec sites.

6.2 Provide packing materials such as boxes, special containers and identifying stickers.

6.3 Move the furniture and equipment outside HRDC working hours and in accordance with pre-determined work schedules.

6.4 Make arrangements with the appropriate authorities regarding the availability of loading docks, elevators, parking space, etc..

6.5 Provide personnel to supervise moving operations at HRDC sites as well as a sufficient number of workers to disassemble workstations and ensure the move goes smoothly with no undue delay.

6.6 Québec may be held responsible for any material damage to HRDC buildings or other property that is caused by Québec personnel or subcontractors. Depending on the nature of the damage, settlement will be based on either replacement cost or the cost of any repairs deemed necessary by HRDC.

Appendix X - Joint committees

1.0 Canada-Québec joint committee to implement the Labour Market Agreement during the period preparatory to the assumption of responsibility by Québec, the transition and the adjustment period

1.1 Term

1.1.1 This committee shall be established for the period beginning at the time the Implementation Agreement is signed and ending upon termination of the adjustment period.

1.2 Composition

1.2.1 The committee shall have an equal number of representatives of Canada and Québec. The total number of members remains to be agreed on. There shall be a joint chairmanship and secretariat. The committee may add members on an ad hoc basis depending on the subjects it is considering. It may establish subcommittees if necessary.

1.2.2 To ensure continuity in managing the Agreement, the people who are permanent members of this committee for both Québec and Canada shall also sit on the Canada-Québec Joint Committee to Oversight the Labour Market Agreement.

1.3 Operation of the committee

• frequency of meetings shall be based on need;
• decisions of the committee shall be made by consensus;
• the committee may make recommendations to the parties.

1.4 Mandate of the committee

1.4.1 The committee's general mandate shall be to facilitate resolution of issues specifically related to the period preparatory to the assumption of responsibility by Québec, the transition and the adjustment period

1.4.2 The issues to be addressed shall include:

• co-operation to ensure quality services throughout the period preparatory to the assumption of responsibility by Québec, the transition and the adjustment period (Appendix III of this Agreement);
• mechanisms for interrelations between Québec's employment services and Canada's employment insurance services, reflecting the two parties' needs for efficiency and effectiveness (clause 2.1 of Appendix III);
• determination and monitoring of the operating terms and conditions for referral of employment insurance claimants to Québec's points of service (clause 2.3 of Appendix III);
• development of a pro forma services agreement covering office space and equipment (clause 2.2 of Appendix III);
• determination and monitoring of the terms and conditions for implementing section 3.0 of Appendix III of this Agreement, relating to the period preparatory to the assumption of responsibility by Québec;
• monitoring of contract arrangements to ensure a smooth transition for the participants and the organizations (clause 4.3.6 of Appendix III);
• transfer and deployment of human resources corresponding to 1,038 employees (section 6.0 of this Agreement and clause 1.2.9 of Appendix III);
• transfer of physical resources (clause 7.3 of this Agreement);
• follow-up to Training Purchases in accordance with the terms and conditions set out in the Training Purchases operational guide revised by the parties (clause 7.1.2 of this Agreement);
• designation of expert representatives responsible for systems implementation, under the committee's authority (clause 8.4.1.1 of this Agreement).

1.5 The committee may consider any other matter related to the period preparatory to the assumption of responsibility by Québec, the transition and the adjustment period, and propose appropriate solutions.

2.0 Canada-Québec joint committee to oversight the Labour Market Agreement

2.1 Term

2.1.1 This committee shall be established, for an indeterminate period, when Québec assumes responsibility for the measures set out in the Agreement.

2.2 Composition

2.2.1 The committee shall have an equal number of representatives of Canada and Québec. The precise number of members remains to be agreed on. There shall be a joint chairmanship and secretariat. The committee may add members on an ad hoc basis depending on the subjects it is considering. The committee shall also designate expert representatives for those parts of the Implementation Agreement which provide for such representatives.

2.2.2 To ensure continuity in managing the Agreement, the permanent members for both Québec and Canada shall be the same people who served as permanent members of the Canada-Québec Joint Committee to Implement the Labour Market Agreement during the period preparatory to the assumption of responsibility by Québec, the transition and the adjustment period.

2.3 Operation of the committee

• the committee shall meet at the request of either party;
• decisions of the committee on matters falling under its authority shall be made by consensus;
• the committee may make recommendations to the parties.

2.4 Mandate of the committee

2.4.1 The committee's general mandate shall be to facilitate implementation and monitoring of the permanent provisions of the Implementation Agreement and the Agreement in Principle

2.4.2 In this regard

1. the committee shall be a forum for exchange of information and discussions, enabling the circulation of all information needed for smooth operation of the Agreement;
2. the committee shall serve as the forum for co-operation between the parties on such matters as they may agree on;
3. the committee shall serve as the forum to oversight the implementation terms and conditions agreed on by the parties;
4. the committee shall be the forum for preparing joint decisions on specific matters.
   1. A forum for exchange of information and discussion on such subjects as:
      • service delivery structure (clause 4.1 of this Agreement);
      • possible recourse to a financial dispute resolution mechanism as described in clause 7.8 of this Agreement;
      • forwarding of Québec's annual plan (clause 5.4.1 of the Agreement in Principle) and preparation of the Annual Appendix (clauses 7.2.1.6 and 7.2.1.7 of this Agreement);
      • forwarding of Québec's annual report (clause 5.5 of the Agreement in Principle);
      • forwarding of information and data that will allow the two governments to fulfill their respective responsibilities (clause 5.7 and Appendix I and V of this Agreement);
      • sectoral activities (clause 10.3 of the Agreement in Principle);
      • any other matter which either party deems useful for improving the operation of the Agreement, including legislative, regulatory or policy changes which either party may be considering and which may have an impact on the other party's responsibilities as set out in the Agreement in Principle.
   2. A forum for co-operation, including with regard to:
      • detection and control of abuse of active employment measures (clause 5.6 of this Agreement);
      • improved labour-market research and innovation (clause 11.5 of this Agreement);
      • any other matter which the parties may deem useful.
   3. A forum to oversight the implementation terms and conditions agreed on by the parties, including as regards:
      • implementation of the National Employment Service functions (clause 3.4 of this Agreement);
      • labour market information (clause 3.5.2.3 of this Agreement);
      • provisions under which, at Québec's request, Canada can handle correspondence in English with companies in relation to the National Employment Service functions (section 3.6 of this Agreement);
      • the quality of service to users (section 4.1 of the Agreement in Principle);
      • designating of expert representatives with a view to holding discussions regarding section 5.4 of this Agreement;
      • designating of expert representatives for the exchange of information and data (clause 5.7.1.2 of this Agreement);
      • possible recourse to a conflict resolution mechanism (section 7.8 of this Agreement);
      • implementing computer systems (clause 8.4.1.2 of this Agreement); public information (section 9.0 of this Agreement);
      • any other matter which the parties may deem useful.
   4. Forum for developing proposals for submission to the parties, with a view to reach decisions on the following matters:
      • agreement to changes to existing measures, or new active measures which Québec may wish to establish in conformity with the provisions of section 3.1 of the Agreement in Principle;
      • during the initial three-year period, examination of results achieved, review of accountability mechanisms and framework, and review of provisions pertaining to funding of Québec's active employment measures and to physical and financial resources, in order to decide whether the parties wish to continue with the Agreement (clauses 9.1 and 9.2 of the Agreement in Principle);
      • review of colocation scenarios and preparation of a report for authorities on both sides during the twelve months following the signing of the Implementation Agreement (clause 12.5 of this Agreement);
      • any other matter which the parties may deem useful.

Appendix XI - Annual appendix

Fiscal year  ______________________

Level of funding
Maximum amount of Canada's annual contribution  ____________

Results targets
Number of employment insurance participants benefiting from active employment measures set out in Agreement, with focus on priority access for active employment insurance claimants  _____________

Jobs obtained and observable changes in behaviour of employment insurance users with respect to labour market and skills development, when such data are available  _____________

Savings generated for Employment Insurance Account  ______________