Table of Contents
Introduction
The recent announcement of the LMIA Application Suspension in Montreal 2024 has sent shockwaves through the Canadian immigration landscape. This significant development has an impact on employers, foreign workers, and the broader economy in the Montreal region. The Labor Market Impact Assessment (LMIA) program, a crucial component of Canada's Temporary Foreign Worker Program, is facing a temporary halt, raising concerns and questions among stakeholders.
This article aims to explore the key aspects of the LMIA Program Changes in Montreal 2024 and their implications. We'll delve into the background of the Temporary Foreign Worker Program, examine the main points of the suspension, and analyse its effects on employers and workers. Additionally, we'll look at the reasons behind this Quebec LMIA Temporary Suspension 2024 and discuss potential alternatives for those affected by this Montreal Economic Region LMIA Update.
Background of the Temporary Foreign Worker Program
The Temporary Foreign Worker Program (TFWP) was designed to address gaps in the Canadian labour market where qualified Canadians are unavailable. This program has an impact on various sectors of the Canadian economy, aiming to fill critical labour shortages while maintaining a balance with domestic employment opportunities.
Purpose of LMIA
A crucial component of the TFWP is the Labor Market Impact Assessment (LMIA). Service Canada issues a positive LMIA when an assessment indicates that hiring a temporary foreign worker (TFW) will have a positive or neutral impact on the Canadian labour market. Employers must obtain a positive LMIA before hiring a TFW for a specific occupation. It's important to note that the LMIA process only tracks TFW positions, not the actual number of TFWs issued work permits or entering Canada.
Recent Scrutiny
In recent years, the TFWP has faced increased scrutiny, particularly regarding its usage and impact on the Canadian labour market. Concerns have arisen about the program being used to sidestep hiring Canadian talent. In response to these concerns, the government has taken steps to tighten the program's regulations.
In March 2024, Employment Minister Randy Boissonnault and Immigration Minister Marc Miller announced significant changes to the program [1]. These changes included the inclusion of temporary resident levels within the annual Immigration Levels Plan—a first for Canadian immigration—to address domestic issues around affordability and housing stock [1]. Minister Boissonnault also announced measures to reduce Canadian employers' reliance on temporary foreign workers, citing issues with compliance to TFWP standards and potential artificial depression in wages [1].
Quebec's Concerns
Quebec has expressed particular concerns about the TFWP's impact on its labour market. The number of migrant workers in Quebec more than doubled between 2021 and 2023 [2]. In response to these concerns, the Government of Canada approved a proposal by the Government of Quebec for a temporary freeze on the approval of new Temporary Foreign Workers in the low-wage stream in Montreal [3]. Effective September 3rd, 2024, processing of Labor Market Impact Assessment applications will be discontinued for six months for job offers located in the Montreal region with wages below CAD 38.13/hour, which is the current Quebec median hourly wage [3].
Key Points of the Suspension
Geographical Scope
The temporary suspension of Labor Market Impact Assessment (LMIA) applications affects the Montreal economic region. This includes several municipalities such as Baie-d'Urfé, Beaconsfield, Côte-Saint-Luc, Dollard-des-Ormeaux, Dorval, Hampstead, Kirkland, L'Île-Dorval, Montréal, Montréal East, Montréal West, Mount Royal, Pointe-Claire, Sainte-Anne-de-Bellevue, Senneville, and Westmount [4]. It's important to note that job offers located outside this economic region are not subject to this suspension [4].
Wage Criteria
The suspension applies to job offers with hourly wages below CAD 38.13, which is the current median hourly wage in Quebec. This criterion has been set to ensure that the suspension primarily affects low-wage positions. Jobs offering wages equal to or higher than this threshold are exempt from the suspension. Additionally, positions with annual salaries of CAD 79,116.01 or more are not affected by this measure [5].
Timeline
The temporary suspension of LMIA processing for low-wage positions in Montreal is set to begin on September 3, 2024. This measure will remain in effect for six months. It's worth noting that LMIA applications submitted before September 3, 2024, will still be processed, regardless of the wage offered.
Several exceptions to this suspension have been outlined. Jobs in certain industry groups, including agriculture, construction, food processing, education, and health and social services, are exempt from this suspension. This decision reflects the government's effort to balance labour market needs with the protection of Canadian workers.
The announcement of this temporary freeze was made jointly by Quebec Premier François Legault and Quebec's Immigration Minister Christine Fréchette [6]. The federal government of Canada has approved this proposal by the Government of Quebec [4]. This measure is part of a broader strategy to manage temporary resident levels in the province and maintain the integrity of the Temporary Foreign Worker Program (TFWP) [6].
Impact on Employers and Workers
The temporary suspension of LMIA processing for low-wage positions in Montreal has significant implications for both employers and workers in the region. This measure, set to begin on September 3, 2024, and last for six months, affects job offers with hourly wages below CAD 38.13, which is the current Quebec median hourly wage.
Affected Industries
The suspension has a broad impact on various industries in the Montreal economic region. However, certain sectors are exempt from this measure, including agriculture, construction, food processing, education, and health and social services. This targeted approach ensures that critical industries can continue operating without significant disruptions.
For employers in non-exempt industries offering wages below the threshold, the suspension presents considerable challenges. Starting September 3, 2024, these employers will not be able to submit new LMIA applications under the TFW Program's low-wage stream. This restriction applies to several municipalities in the Montreal area, including Baie-d'Urfé, Beaconsfield, Côte-Saint-Luc, Dollard-des-Ormeaux, Dorval, Hampstead, Kirkland, L'Île-Dorval, Montréal, Montréal East, Montréal West, Mount Royal, Pointe-Claire, Sainte-Anne-de-Bellevue, Senneville, and Westmount.
Potential Labor Shortages
The suspension may lead to potential labour shortages in affected industries. Businesses relying on low-wage foreign labor may experience disruptions and need to make adjustments in their hiring practices. This measure is expected to reduce the number of temporary immigrants by approximately 3,500 over the six-month period [7].
Low-wage temporary foreign workers in Montreal seeking positions below the median wage will face delays and possible rejections of their LMIA applications. This could hinder their ability to secure employment and impact their livelihoods. Additionally, the freeze will also apply to the renewal of current temporary foreign workers [7], potentially affecting those already working in the region.
Alternative Hiring Strategies
Employers in the Montreal region are encouraged to review their hiring practices and explore alternative options for meeting their labour needs. The Temporary Foreign Worker Program has always been designed as a last resort when no qualified Canadian workers are available. This temporary suspension reflects the government's commitment to protecting Canadian workers while ensuring that the TFW Program remains a viable option for employers who truly need it.
The federal government has indicated that it will closely monitor the impact of this policy change and adjust the TFWP as needed to respond to evolving labour market conditions and ensure the program's effectiveness. This approach aims to balance the benefits of temporary immigration with the need to protect domestic labour markets and facilitate the transition of temporary residents to permanent residency.
Conclusion
The temporary suspension of LMIA applications in Montreal for 2024 has a significant impact on the local job market and immigration landscape. This measure, affecting low-wage positions, aims to address concerns about the Temporary Foreign Worker Program's influence on domestic employment opportunities. While it presents challenges for certain employers and foreign workers, the suspension also opens up avenues to explore alternative hiring strategies and reassess labour market needs.
As the situation evolves, it's crucial for stakeholders to stay informed and adapt to these changes. The government's commitment to monitor and adjust the program indicates a dynamic approach to balance labour market demands with the protection of Canadian workers.
📞 Contact us today to discuss your options and ensure your business continues to thrive during this temporary suspension. In the end, this suspension serves as a catalyst to reevaluate hiring practices and strengthen the Canadian workforce in the long run.
FAQs
What changes are being made to the LMIA in Canada for 2024?
Starting September 26, 2024, new restrictions will be applied to LMIA applications for low-wage positions in census metropolitan areas where the unemployment rate is 6% or higher. These applications will not be processed under the new rules.
Is it possible for an LMIA to be revoked or suspended?
Yes, the Minister of Employment and Social Development Canada (ESDC) has the authority to suspend or revoke a Labor Market Impact Assessment (LMIA) under certain conditions as outlined in the Immigration and Refugee Protection Act (IRPA), which was amended in 2013.
What is the current processing time for an LMIA application?
The processing time for an LMIA varies depending on the stream. As of April 2024, the processing times are approximately 9 business days for the Global Talent Stream and 12 business days for the Agricultural stream.
Under what circumstances can an LMIA application be denied?
An LMIA application can be rejected if you have previously had an application revoked within the last two years due to providing false, misleading, or inaccurate information.
References
[1] - https://www.cicnews.com/2024/09/which-regions-in-canada-could-see-a-reduction-of-temporary-foreign-workers-0946319.html
[2] - https://www.cbc.ca/news/canada/montreal/temporary-foreign-workers-reduction-rights-permanent-status-1.7155233
[3] - https://www.canada.ca/en/employment-social-development/news/2024/08/minister-boissonnault-reducing-the-number-of-temporary-foreign-workers-in-canada.html
[4] - https://www.canada.ca/en/employment-social-development/news/2024/08/government-of-canada-announces-approval-of-provincial-request-for-temporary-freeze-of-low-wage-occupations-in-montreal-under-temporary-foreign-work.html
[5] - https://www.immigration.ca/canada-suspends-temporary-foreign-worker-program-for-low-wage-jobs-in-montreal/
[6] - https://www.cicnews.com/2024/08/quebec-announces-suspension-of-lmia-processing-for-some-low-wage-temporary-foreign-workers-0845879.html
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This update has been compiled with the latest available information for the general information of Border Law clients and other interested parties. This Update is not comprehensive and should not be relied upon without appropriate legal advice.
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