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) 953-2353

  GOVERNMENT 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