Agreement to amend the Canada – Saskatchewan Labour Market Development Agreement

Information for reference

This text copy of the bilateral transfer agreement between the Government of Canada and Saskatchewan is provided for reference and research purposes only. The final signed version of the agreement is the official version between the parties.

List of acronyms and abbreviations

Canada: The Government of Canada

CANSIM: Canadian Socio-Economic Information Management System

EI: Employment Insurance

LMDA: Labour Market Development Agreement

NAICS: North American Industry Classification System

Saskatchewan: The Government of Saskatchewan

Between

The Government of Canada (hereinafter referred to as "Canada") as represented by the Minister of Employment and Social Development styled as the Minister of Families, Children and Social Development and the Canada Employment Insurance Commission

And

The Government of Saskatchewan (hereinafter referred to as "Saskatchewan") as represented by the Minister of Immigration and Career Training

Hereinafter referred to as “the parties”

Preamble

Whereas the parties concluded the Canada-Saskatchewan Labour Market Development Agreement (“Canada-Saskatchewan LMDA”) on February 6, 1998;

Whereas the Canada-Saskatchewan LMDA was amended on March 15, 2001, May 22, 2009, November 23, 2016 and March 28, 2018;

Whereas Canada has announced targeted support measures for workers affected by economic adjustments in the forest sector and the steel and aluminum industries, as well as for workers in seasonal industries;

Whereas the steel and aluminum industries and related industries are currently facing economic adjustments which have resulted in negative impacts on Canadian jobs and workers, Canada is prepared to provide a time-limited targeted increase to the federal contribution to the costs of provincial benefits and measures for fiscal year 2018-2019 provided under the Canada-Saskatchewan LMDA to support workers that are directly or indirectly affected by these economic adjustments;

Whereas Canada and Saskatchewan recognize that workers in seasonal industries are an important part of Canada’s continued prosperity and experience unique labour market challenges due to the cyclical nature of seasonal work and, given Canada announced in its Budget 2018 that it would make available additional funding for 2018-2019 and 2019-2020 to the provinces and territories under the Labour Market Development Agreements to support workers in seasonal industries, Canada is prepared to provide a time-limited targeted increase to the federal contribution to the costs of the provincial benefits and measures for fiscal years 2018-2019 and 2019-2020 under the Canada-Saskatchewan LMDA to support these workers;

Whereas the forest sector and related industries are currently experiencing economic adjustments which have resulted in negative impacts on Canadian jobs and workers; and, Canada has broadened eligibility of economic adjustment measures approved under the Softwood Lumber Action Plan for workers directly or indirectly affected in 2018-2019 and is prepared to provide a time-limited targeted increase to the federal contribution to the costs of the provincial benefits and measures for fiscal year 2018-2019 under the LMDAs to support workers that are directly or indirectly affected by these economic adjustments;

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

Clauses

  1. The Canada-Saskatchewan LMDA is amended by adding the following headings and sections after section 13C:

    “Targeted Time-Limited Increase in Contribution to Costs of Provincial Benefits and Measures to Support Workers in the Steel and Aluminum and Related Industries 13D Notwithstanding anything in section 13, in fiscal year 2018-2019, Canada agrees to increase the maximum contribution payable to Saskatchewan under section 13 based on the following allocation methodology, rounded to the nearest dollar.

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

    (A/B) x $25 million

    Where

    A is the number of workers directly and indirectly employed in the steel and aluminum industries in Saskatchewan in 2016; and

    B is the total number of workers directly and indirectly employed in the steel and aluminum industries in Canada in 2016.

    If Saskatchewan is not receiving the funding floor and where there is direct and indirect employment in steel and aluminum, the maximum contribution payable under 13D towards the costs of provincial benefits and measures is determined by the following formula, rounded to the nearest dollar:

    (A/B) x C

    Where

    A is the number of workers directly and indirectly employed in the steel and aluminum industries in Saskatchewan in 2016;

    B is the total number of workers directly and indirectly employed in the steel and aluminum industries in Canada in 2016; and

    C is the $25 million investment to support workers in the steel and aluminum industries made available to provinces and territories, less the amount distributed under the $500,000 funding floor.

    Direct employment in the steel and aluminum industries is based on Statistics Canada’s 2016 Census Table 98-400-X2016290 and North American Industry Classification System codes 3311, 3312 and 3313.

    Indirect employment in the steel and aluminum industries is based on a National Job Multiplier of 3.14 for North American Industry Classification System code 3311, 3.01 for North American Industry Classification System code 3312, and 2.20 for North American Industry Classification System code 3313.

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

    Targeted Time-Limited Increase in Contribution to Costs of Provincial Benefits and Measures to Support Workers in Seasonal Industries

    13E Notwithstanding anything in section 13, for fiscal years 2018-2019 and 2019-2020, Canada agrees to increase the total maximum contribution payable to Saskatchewan under section 13 based on the following allocation methodology, rounded to the nearest dollar.

    A funding floor of $500,000 is provided to Saskatchewan if the following formula results in an allocation below $500,000:

    (A/B) x $41 million

    Where

    A is the number of Employment Insurance (EI) Regular Beneficiaries (based on EI Administrative data, as of August 2017, on the number of completed EI Regular seasonal claims* in 2016) in 2016-2017 in EI Economic Regions where the unemployment rate was over 6.3% (the average national unemployment rate for 2017 according to the Labour Force Survey) in Saskatchewan; and

    B is the number of EI Regular Beneficiaries (based on EI Administrative data, as of August 2017, on the number of completed EI Regular seasonal claims* in 2016-2017) in 2016-2017 in all EI Economic Regions in Canada where the unemployment rate was over 6.3%.

    Note: For the purposes of determining the allocation formula, seasonal claimants are individuals who established three or more regular or fishing claims in the five fiscal years preceding the reference year, of which at least two were established at the same time of year as their claim in the reference year.

    A claim is considered to have been established at the same time of year if it was established between eight weeks before and eight weeks after the week in which the reference year claim was established.

    If Saskatchewan is not receiving the funding floor, the total maximum contribution payable under section 13E towards the costs of provincial benefits and measures is determined by the following formula, rounded to the nearest dollar:

    (A/B) x C

    Where

    A is the number of EI Regular Beneficiaries (based on EI Administrative data, as of August 2017, on the number of completed EI Regular seasonal claims in 2016-2017) in 2016-2017 EI Economic Regions where the unemployment rate was over 6.3% (the average national unemployment rate for 2017 according to the Labour Force Survey) in Saskatchewan;

    B is the number of EI Regular Beneficiaries (based on EI Administrative data, as of August 2017, on the number of completed EI Regular seasonal claims in 2016-2017) in 2016-2017 in all EI Economic Regions in Canada where the unemployment rate was over 6.3%, excluding provinces and territories that are receiving the $500,000 funding floor; and

    C is the $41 million investment to support workers in seasonal industries made available to provinces and territories, less the amount distributed under the $500,000 funding floor.”

    Targeted Time-Limited Increase in Contribution to Costs of Provincial Benefits and Measures for Workers in the Forest Sector and Related Industries

    13F Notwithstanding anything in section 13, in fiscal year 2018-2019, Canada agrees to increase the maximum contribution payable to Saskatchewan under section 13 based on the allocation methodology noted below rounded to the nearest dollar.

    A funding floor of $500,000 is provided to Saskatchewan if the following formula results in an allocation below $500,000:

    A/B × $25 million,

    Where

    A is the number of workers employed in the forest sector in Saskatchewan in 2016, based on the CANSIM table 383-0031* under North American Industry Classification System codes 113, 1153, 321, and 322; and,

    B is the total number of workers employed in the forest sector in Canada in 2016, based on the CANSIM table 383-0031* under North American Industry Classification System codes 113, 1153, 321, and 322.

    Note: Total numbers are released in the spring following the end of the reference period, while revised numbers are published in the fall of the same year. The fall release also comprises revisions of numbers from the three previous years. As such, the current available data may be different than at the time of allocation.

  2. The Canada-Saskatchewan LMDA is amended by adding the following headings and sections, after section 14.3:

    “Targeted Time-Limited Increase in Contribution to Costs of Provincial Benefits and Measures to Support Workers in the Steel and Aluminum and Related Industries

    14.4 Canada will make payments of its increase in contribution to Saskatchewan towards the Costs of the provincial benefits and measures as determined under section 13D in two installments, as follows:

    14.4.1 The amount of the first installment equal to one-half (50%) of the increase determined under section 13D will be paid upon the signing by both parties of this amending agreement; and

    14.4.2 The amount of the second installment equal to one-half (50%) of the increase determined under section 13D will be paid upon a written request from Saskatchewan, and such request must be received by Canada no later than March 31, 2019.”

    Targeted Time-Limited Increase in Contribution to Costs of Provincial Benefits and Measures to Support Workers in Seasonal Industries

    14.5 Canada will make payments of its increase in contribution to Saskatchewan towards the costs of the provincial benefits and measures as determined under section 13E, as follows:

    14.5.1 The amount for 2018-2019 will be paid in two equal installments totaling (50%) of the increase determined under section 13E. The amount of the first installment will be paid upon the signing by both parties of this amending agreement and the amount of the second installment will be paid at the written request of Saskatchewan. This request must be received by Canada no later than March 1, 2019; and,

    14.5.2 Subject to the approval of expenditures under Part II of the EI Act for 2019-2020 by Canada, the amount for 2019-2020 will be paid in two equal installments totaling (50%) of the increase determined under section 13E. The amount of the first installment and the amount of the second installment will be paid after April 1, 2019 upon the written request of Saskatchewan for each installment. These requests must be received by Canada after March 1, 2019 and no later than February 3, 2020.

    Targeted Time-Limited Increase in Contribution to Costs of Provincial Benefits and Measures for Workers in the Forest Industry and Related Sectors

    14.6 Canada will make payments of its increase in contribution to Saskatchewan towards the Costs of the provincial benefits and measures as determined under section 13F in two installments, as follows:

    14.6.1 The amount of the first installment equal to one-half (50%) of the increase determined under section 13F will be paid upon the signing by both parties of this amending agreement; and

    14.6.2 The amount of the second installment equal to one-half (50%) of the increase determined under section 13F will be paid upon written request from Saskatchewan, and such request must be received by Canada no later than March 1, 2019.”

  3. The Canada-Saskatchewan LMDA is amended by adding the following, after section 8.6:

    “8.7 The parties agree that results measurement and reporting related to the increase of funding provided under sections 13D and 13F for fiscal year 2018-2019 and section 13E for fiscal years 2018-2019 and 2019-2020, will be consistent with the process described in Annex 4 to this Agreement entitled ‘Performance Measurement Strategy and Targets’.”

  4. This amending agreement will not impact the allocation methodology established by Canada for allocating among provinces and territories the funding approved each year by Canada for expenditures under Part II of the EI Act (currently $1.95 billion per year), which, the parties acknowledge, is the allocation method described in the letter dated June 26, 1996, from the Deputy Minister of the Department of Human Resources Development to the Deputy Minister of Post-Secondary Education and Skills Training.
  5. In all other respects, the Canada-Saskatchewan LMDA shall remain unchanged.
  6. This amending agreement shall be read together with the Canada-Saskatchewan LMDA as amended from time to time and takes effect as if its provisions were part of the Canada-Saskatchewan LMDA.
  7. This amending agreement comes into force once it has been signed by both parties.

SIGNED on behalf of Canada

in Gatineau

this 18 day of March, 2019

____________________________

The Honourable Jean-Yves Duclos
Minister of Employment and Social Development styled as the Minister of Families, Children and Social Development

____________________________

Graham Flack
Chairperson, Canada Employment
Insurance Commission

Signed on behalf of Saskatchewan

in Regina

this 28 day of March, 2019

____________________________

The Honourable Jeremy Harrison

Minister of Immigration and Career Training

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