BETWEEN

THE GOVERNMENT OF CANADA (herein referred to as "Canada" ), as represented by the Minister of Human Resources Development and the Canada Employment Insurance Commission (herein referred to as the "Commission")

AND

THE GOVERNMENT OF NEWFOUNDLAND AND LABRADOR (herein referred to as " Newfoundland and Labrador"), as represented by the Premier as Minister Responsible for Intergovernmental Affairs and the Ministers of Human Resources and Employment, Development and Rural Renewal and Education

AND both herein after referred to as the LABOUR MARKET PARTNERS.

Whereas the Labour Market Partners give the highest priority to the integration of the unemployed into the work force and are committed to providing high quality, effective and efficient labour market programs and services to the people of Newfoundland and Labrador;

Whereas the Labour Market Partners agree on the importance of achieving, measuring, monitoring, assessing and evaluating results in helping the unemployed of Newfoundland and Labrador to prepare for, find and keep employment;

Whereas the Labour Market Partners recognize that each government has complementary responsibilities in the area of labour market development;

Whereas the Labour Market Partners recognize the linkages between labour market development and economic development;

Whereas the Labour Market Partners recognize youth employment as a priority and are committed to coordinating their youth initiatives;

Whereas the Labour Market Partners agree that they should, to the extent possible, reduce overlap and duplication in the labour market development sector by better delineating their respective roles and responsibilities, and cooperate effectively in areas of shared jurisdiction;

Whereas Canada acknowledges that labour market training is an area of provincial responsibility;

Whereas Canada recognizes the need to coordinate its labour market programs with those of Newfoundland and Labrador;

Whereas under Part II of Canada's Employment Insurance Act, the Canada Employment Insurance Commission is authorized to establish certain labour market development programs (termed "employment benefits" and "support measures"), and is required to work in concert with the government of each province in which they are to be implemented in designing them, determining how they are to be implemented and establishing a framework for evaluating their success;

Whereas, in recognition of the foregoing, the Minister of Human Resources Development presented to all provinces and territories on May 30, 1996, a proposal on labour market development that would offer provinces/territories the opportunity to assume an expanded role in the design and delivery of labour market development programs and to assume responsibility for certain functions of the National Employment Service;

Whereas in response to the proposal, Newfoundland and Labrador has indicated its desire

1. to have Canada continue to be responsible for the delivery of the employment benefits and support measures and the National Employment Service in Newfoundland and Labrador to meet the needs and priorities applicable in Newfoundland and Labrador, but to work in concert with Canada in their design, management and evaluation through the establishment of arrangements for co-managing employment benefits and support measures and all relevant aspects of the National Employment Service, with Canada to retain its financial responsibilities and program delivery structure; and
2. to harmonize and coordinate the implementation of its labour market development programs with those of Canada.

NOW, THEREFORE, the Labour Market Partners agree as follows: