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Nova Scotia successfully concluded negotiations for two agreements with the Government of Canada in 2008. The agreements were signed by the Hon. Monte Solberg, Minister of Human Resources and Social Development Canada and the Hon. Mark Parent, Minister of Labour and Advanced Education on June 13, 2008 at the Nova Scotia Community College Waterfront Campus. (Watch a video of the signing ceremony highlights here.)
Under the Labour Market Development Agreement (LMDA), Ottawa will provide $81 million a year to the Province of Nova Scotia for services to people who receive, or are eligible to receive, Employment Insurance benefits.
The LMDA will give the province a new role in delivering employment benefits and support measures, and the ability to tailor programs to Nova Scotia’s needs. LMDA funding must be spent in accordance with the Employment Insurance Act Part II. However, Nova Scotia can identify its own priorities for programs and services.
Under the Labour Market Agreement (LMA), about $14.1 million will come to the province from Ottawa for services to unemployed and low-skilled Nova Scotians who not eligible for Employment Insurance. Eligible clients will benefit from programs such as:
- skills training
- literacy improvement
- on-the-job training
- job search skills improvements
These two agreements ensure that all Nova Scotians will have access to targeted, co-ordinated programming that supports their full participation in the province’s growing prosperity.
An inter-departmental working group consisting of representatives of Nova Scotia’s Departments of Community Services, Economic Development, Labour and Advanced Education, the Offices of Aboriginal Affairs, Immigration, and Treasury and Policy Board will establish LMA funding for 2008-2009 to ensure that clients will feel the maximum benefit of the programming this year. Community-based agencies will be more involved in planning for subsequent years.
History
The recent Labour Market Development Agreement between the Government of Canada and the Government of Nova Scotia caps a process that began several years ago.
In 1996, new federal legislation gave the provinces and territories an option to take on a bigger role in providing benefits and developing programs for unemployed and underemployed people. Exercising this option would allow the provinces and territories to develop a customized approach to the unique needs of their labour market.
Some provinces and territories opted to co-manage programming with their federal counterparts while others began to deliver services directly.
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Nova Scotia took a unique approach, strategic partnership with the federal government. Technically a co-management arrangement, the Province did not approve program planning, design or expenditure of funds.
In its March 2007 budget, the Government of Canada announced its intention to transfer federal staff, resources and authority for workforce development to the provinces.
What employment insurance benefits will be affected?
The Employment Insurance Act has two key parts:
- Part I provides income support for people temporarily out of work.
- Part II, to which the Labour Management Development Agreement applies, includes employment benefits and support measures to help the unemployed return to work. Examples would be training needs assessments, employment counselling, return-to-work plans, etc.
- Part II also allows the provinces and territories to enter into agreement with the Government of Canada regarding the design and delivery of programs funded through Employment Insurance funds. Provincial programs and delivery must be similar to the interventions outlined in Canada’s Employment Insurance Act, and consistent with federal requirements and legislative guidelines.
- For example, Nova Scotia could create a single vision and common priorities to integrate the design and delivery of all labour market programs for individuals who are eligible under the Employment Insurance Act Part II, as well as for those who are not. This could reduce programming duplication and provide consistent interaction with third-party service providers for the Province.
The Labour Market Development Agreement focuses on the Part II programs.
Other labour market agreements in Nova Scotia, assisting youths, persons with disabilities and older workers were not part of Ottawa’s 2007 offer. The existing Labour Market Agreement for Persons with Disabilities has been extended to March, 2009.