March 24, 1997
(Human Resources and Employment)
Canada and Newfoundland and Labrador
sign Labour Market Development Agreement
Jean Cretien, Prime Minister of Canada, and Brian Tobin,
Premier of Newfoundland and Labrador, today signed the
Canada-Newfoundland and Labrador Labour Market Development
Agreement (LMDA) in Ottawa. This historic new agreement will
guide joint federal and provincial actions to strengthen the
labour market in Newfoundland and Labrador. Effective April 1,
1997, the governments of Canada and Newfoundland and Labrador
will share responsibility for the design and management of labour
market development programs and services for the unemployed in
the province.
The agreement demonstrates a desire by both governments to
work together to foster meaningful employment opportunities for
unemployed workers, and to provide them with the skills necessary
to find employment. Todays announcement acts on commitments made
by the Government of Canada in the 1996 Speech from the Throne
and in the May 1996 Labour Market Development proposal made to
the provinces and territories to seek new partnerships with
respect to labour market and development.
Under the agreement, the Government of Canada and the
Government of Newfoundland and Labrador will work together to
design and tailor labour market employment programs to meet the
specific needs of communities, employers and the unemployed in
Newfoundland and Labrador to complement provincial programming in
this domain. In the past, labour market program design occurred
at the national level, which did not always allow for the
flexibility needed to address local conditions in Newfoundland
and Labrador. Now, employment programs will be targeted to those
sectors, industries and regions of the province to provide
opportunities for meaningful work for unemployed Newfoundlanders
and Labradorians, in a manner which supports and reinforces the
province's economic growth agenda.
During the first three years of the agreement (1997-2000),
$308 million will be re-allocated from the Employment Insurance
Account to support active employment benefits and measures and
partnership initiatives with community-based organizations. In
addition approximately $26 million annually for income support
will be provided to EI clients participating in active
programming. During 1997-98, it is expected that active
employment measurers will assist over 16,500 EI claimants.
"This agreement is a unique approach to labour market
development in Newfoundland and Labrador," said Prime
Minister Cretien. "It represents a fundamental shift in how
federal labour market programs are designed and managed at the
provincial level. This practical and innovative form of
cooperation found in this agreement is based on a national
framework provided by Employment Insurance legislation and builds
on the Government of Canada's desire to foster a new spirit of
flexible partnership with the provinces and territories. By
working together we can focus our efforts on a common goal ...
helping unemployed Canadians return to work more quickly."
Premier Tobin said: "This agreement is a true example of
the flexibility and dynamic nature of the Canadian federation.
The province of Newfoundland and Labrador is joining forces with
the federal government in a true partnership towards the common
goal of helping unemployed men and women get back to work. This
agreement will also build linkages between labour market
development and economic development, building on the province's
economic growth agenda and regional economic development
opportunities identified by the province's 20 Regional Economic
Development Boards. This agreement is about jobs."
The Minister of Human Resources and Development, Pierre S.
Pettigrew, stated: "This agreement represents a unique and
innovative partnership in labour market development. The
governments will build together high quality labour market
arrangements to focus on the province's unique regional and local
labour market needs. This will enable the two governments to
develop employment programs to address key economic development
priorities."
Joan Marie Aylward, Minister of the new Department of Human
Resources and Employment said: "This agreement will
complement the establishment of our new provincial Department of
Human Resources and Employment. The time has come for a major
shift in the social policy sector and real change must be made to
link social policy with economic development. The new department
as well as the new agreement will help people develop more fully
and become more active participants in the province's
economy."
Under the agreement, Newfoundlanders and Labradorians will
have access to a variety of re-designed programs to help them
secure long- term attachment to the workforce, including targeted
wage subsidies, self-employment assistance, job creation and
labour market partnerships, research and innovations, and a new
skills loans and grants program. The agreement also provides
clients with a variety of other services including assistance in
developing career action plans, employment counselling and job
placement services.
Labour Market Development Agreements are a key element in an
overall Government of Canada strategy to rebalance and renew
Canadian federalism. Newfoundland and Labrador is the first
province to elect for co-management and co-design of labour
market programs and services.
Additional information is available through the Internet at
//www.hrdc-drhc.gc.ca
Contact:
- GOVERNMENT OF CANADA
Anna Kapiniari
Office of Minister Pettigrew
Ottawa
(819) 953-2353GOVERNMENT OF NEWFOUNDLAND AND LABRADOR
Cathy Dornan
Communications Director
Premier's Office
St. John's
(709) 729-3564
Glenn Bruce
Director of Communications
Human Resources and Employment
St. John's
(709) 729-4062
Linda Bowering
Regional Manager
Communications
HRDC
St. John's
(709) 772-5346
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