THUNDER BAY DISTRICT SOCIAL SERVICES ADMINISTRATION BOARD
DATE PREPARED	November 15, 1999	REPORT NO.	1999-16
MEETING DATE	November 24, 1999
SUBJECT	Enhanced Job Placement Proposal

REPORT SUMMARY

This report is being prepared to provide the Board with an executive summary of the Enhanced Job Placement Proposal.

BACKGROUND

Employment Placement (EP) is one of the three mandatory components of Ontario Works. This component was legislated in May 1998. It was intended that agencies, whether profit or non-profit, would assist clients to secure employment. Payments to employment agencies are based on a formula that splits the financial assistance savings generated by the client’s earnings. The agency retains one-third of the cost-savings and the municipality retains two-thirds over a six-month period.

COMMENTS

The Ministry of Community and Social Services (MCSS) has announced enhancements to the Employment Placement Component. The Board is required to submit a plan outlining how the new initiative will be managed. The changes improve EP by providing a simpler and more attractive fee payment schedule for agencies that provide placement services. Placement has been expanded into the private sector. The program also provides a wage subsidy of up to $4,000.00 per employer for eligible clients. The MCSS has indicated that the following criteria must be followed:

· clients must be placed into unsubsidized jobs or training subsidy programs

· fees for job placement must be obtained from savings in client benefits

· fees must be paid in arrears

· employers must comply with regulated standards

Delivery Models

Staff on Highways 17 and 11 will deliver this component in-house. The Ontario March of Dimes will act as the placement host for the City of Thunder Bay. The City of Thunder Bay has selected the 35-50 year old age group as a priority. Highway 11’s client population is 35 and over, while Highway 17 has designated unskilled clients, regardless of age, as the priority.

Part-time Employment vs. Full-time Employment

Due to the lack of full-time positions in the Board’s jurisdiction, MCSS officials have advised that seasonal and temporary jobs in construction will be approved; however, the part-time jobs should only be considered where the job enables the individual to leave social assistance through sufficient wages to achieve independence. Therefore, it is recommended that placement and wage subsidy be paid on milestones achieved.

Budget Allocations for Employment Placement

The budget detail outlines the maximum employment placement funding which could potentially be available from the Provincial Government. It is based on 4.5% of the average caseload or approximately 170 participants. The budget illustrates two components: wages that will be paid on behalf of a client, and placement fees which will be paid to delivery agents for the placement of clients. The request includes a request for 100% provincial subsidy for a Marketing and Promotions budget for this component. MCSS officials have indicated that these funds are not available.

Summary

The Board and member municipalities will benefit from this program component if clients are able to maintain longer-term sustainable employment and exit social assistance beyond the six months. The wage subsidy will provide an additional incentive to assist individuals into private sector employment, particularly for older individuals. The funding formula, as proposed by the MCSS, should not cost the Board any additional funds, as wage subsidy is paid in arrears and fee placements only after milestones are achieved.

CONCLUSION

It is concluded that the Employment Placement Proposal should be submitted as completed by Mr. John Howley of Labour Market Partners, Inc.

RECOMMENDATION

THAT with respect to Report No. 1999-16, the Thunder Bay District Social Services Administration Board endorse the submission of the Enhanced Job Placement Program plan;

AND THAT upon approval of the plan, delivery agents comply with the plan requirements as outlined in the submission to the Ministry of Community and Social Services.