Agreement to amend the Canada – Saskatchewan Labour Market Development Agreement

List of acronyms and abbreviations

• Canada: The Government of Canada
• EI: Employment Insurance
• LMDA: Labour Market Development Agreement
• Saskatchewan: The Government of Saskatchewan

Between

The Government of Canada (hereinafter referred to as "Canada"), 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, March 28, 2018 and March 28, 2019;
• Whereas Canada has announced targeted support measures for workers affected by economic adjustments in the steel and aluminum 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 2019 to 2020 provided under the Canada-Saskatchewan LMDA to support workers 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 heading and section after section 13F:
   • “Targeted Time-Limited Increase in Contribution to Costs of Provincial Benefits and Measures to Support Workers in the Steel and Aluminum and Related Industries
   • 13G notwithstanding anything in section 13, in fiscal year 2019 to 2020, 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 in the Province of Saskatchewan 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 in the Province of Saskatchewan, the maximum contribution payable under section 13G 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;
         • 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.”
2. the Canada-Saskatchewan LMDA is amended by adding the following heading and section, after section 14.6:
   • “Targeted time-limited increase in Contribution to Costs of Provincial Benefits and Measures to Support Workers in the Steel and Aluminum and Related Industries
   • 14.7 Canada will make payments of its increase in contribution to Saskatchewan towards the costs of the provincial benefits and measures as determined under section 13G in 2 installments, as follows:
     • 14.7.1 the amount of the first installment equal to one-half (50%) of the increase determined under 13G will be paid upon the signing by both parties of this amending agreement;
     • 14.7.2 the amount of the second installment equal to one-half (50%) of the increase determined under 13G will be paid upon a written request from Saskatchewan, and such request must be received by Canada no later than February 3, 2020.”
3. the Canada-Saskatchewan LMDA is amended by adding the following, after section 8.7:
   • “8.8 the parties agree that results measurement and reporting related to the increase of funding provided under section 13G for fiscal year 2019 to 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 Employment Insurance 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.