Human Resources, Labour and Employment
November 2, 2009
Province Assumes Responsibility for
Labour Market Development Agreement
Effective today, responsibility for
Labour Market Development Agreement (LMDA) programs and
services transfers from the Federal Government to the
Government of Newfoundland and Labrador.
"As of today, the Provincial
Government will be responsible for the design and
delivery of approximately $133 million annually in EI-funded
Employment Benefits and Support Measures," said the
Honourable Susan Sullivan, Minister of Human Resources,
Labour and Employment. "The Williams Government is very
excited about this as it will allow the province greater
flexibility in the design and delivery of labour market
programs and services in order to better meet local,
regional and provincial labour market needs."
LMDA programs and services are
available to EI-eligible individuals and include
self-employment assistance, skills development training,
wage subsidies, job creation partnerships, employment
assistance services and labour market partnerships
While the Provincial Government now
has full authority over EI-related funding allocation
and programming, it is important for clients of Service
Canada programs to note that there will be no immediate
change in service resulting from today�s transfer.
Newfoundland Benefits and Measures (NLBMs) will be
virtually unchanged from the Employment Benefits and
Support Measures currently delivered by Service Canada
for the foreseeable future, and clients will be informed
of any changes as new programs and services are
introduced.
"The province will continue to deliver
the same programs and services currently offered through
Service Canada," said Minister Sullivan. "However, in
the longer-term, the province will be looking at our
future labour market needs. We will work with our many
partners including business, labour, post-secondary
institutions and community organizations to ensure we
have the right balance of programs and services in place
to build and maintain a strong provincial workforce."
Existing LMDA clients and third-party
community agencies have already been notified of this
change. To complement these efforts, the Provincial
Government has implemented a province-wide advertising
campaign that will run for the month of November.
Individuals are encouraged to contact Human Resources,
Labour and Employment with any questions, toll-free
1-800-563-6600 or
www.hrle.gov.nl.ca/hrle/lmda/
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Media contact:
Jennifer Collingwood
Director of Communications
Department of Human Resources, Labour and Employment
709-729-0753, 690-2498
jennifercollingwood@gov.nl.ca
BACKGROUNDER
Labour Market Development Agreement
Labour Market Development Agreements (LMDAs)
are bi-lateral agreements between the Federal Government
and the Provincial/Territorial Governments that provide
funding focused on helping EI-eligible persons increase
their opportunities within the labour market.
LMDAs were established in 1996 and
many jurisdictions at the time chose to sign an
agreement with the Government of Canada that transferred
LMDA responsibility to the province. Under such an
agreement, provinces and territories assume
responsibility for the design, delivery and management
of the programs and services.
Newfoundland and Labrador, along with
a number of other jurisdictions, chose the co-managed
model where the Federal Government delivers the programs
and services but shares responsibility for the design,
management and evaluation of these programs with
provinces and territories. Since 1996, LMDA programs and
services have been delivered in this province through
Service Canada offices.
On September 5, 2008, the Government
of Newfoundland and Labrador signed a devolved LMDA with
the Government of Canada. Under a devolved LMDA, the
Province assumes responsibility for the design and
delivery of approximately $133 million annually in EI-funded
Employment Benefits and Support Measures, effective
November 2, 2009.
For the next two years, all provinces
and territories will receive additional LMDA funding
under the Federal Government�s stimulus package, which
was released in the last federal budget. Newfoundland
and Labrador�s share of this additional funding is an
additional $14.7 million per year.
2009 11 02 10:20 a.m.
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