Witnesses appearing before this Committee identified a number of broadly shared concerns with respect to aspects of the LMIA process that impact all streams of the TFW Program, such as fee, processing of applications and timelines.

A. Labour Market Impact Assessment fee

On more than one occasion, witnesses referred to the LMIA fee, which has been set at $1,000 per application since June 2014, as “prohibitive” for businesses. Val Litwin, Chief Executive Officer of the Whistler Chamber of Commerce, for example, explained that the high fee only covers one year of employment for one temporary foreign worker, and does not constitute a guarantee that the position applied for will be filled. Mr. Litwin commented that this places a financial burden, especially on small businesses, making it difficult for them to remain “competitive and viable”.[20] Similarly, the Coast Spas Manufacturing Inc. representative, Jatinder Sidhu, expressed concerns over the fact that the LMIA fee is non-refundable. Should a business apply for 50 temporary foreign workers, he explained, the cost of LMIA applications would be $50,000 irrespective of whether the applications are approved or rejected. Mr. Sidhu suggested that a negative decision has repercussions in two ways: a loss of the application fee, and the company is not able to recruit the temporary foreign labour needed to produce and remain competitive.[21]

Further, the Committee was told that the increase in the LMIA fee has had an impact on families that need to hire temporary foreign workers to serve as caregivers for their children, seniors, and disabled relatives. Donalda Madsen, a mother who has been using temporary foreign worker caregivers to tend to her disabled son’s needs since 1989, indicated that the rising cost of the program is making it very difficult for families like hers to afford hiring caregivers. In addition to having to pay for a caregiver’s airfare, health insurance, and other incidentals, she noted families are now also required to pay LMIA application fees on an annual basis in order to extend their caregivers' work permits. If families lose their ability to hire caregivers, she cautioned, the burden will fall on institutions such as local extended care hospitals and community living agencies.[22]

Witnesses suggested that the LMIA fee has also had consequences on the temporary foreign workers themselves. According to the Migrant Mothers Project, the rise in the LMIA fee has led some employers to download these costs onto temporary foreign workers, while making other employers less likely to hire temporary foreign labour.[23]

Overall, witnesses called for the LMIA fee to be abolished, or at least reduced, across a number of sectors, including small businesses in the hospitality industry, the manufacturing sector, as well as for families hiring caregivers. Should the fee requirement be kept in place, however, witnesses asked that the LMIA fee be refundable in the event of a denied LMIA application. Another suggestion was to extend the duration of work permits for low-wage temporary foreign workers, thereby reducing the costs associated with LMIA applications.

B. Processing of Labour Market Impact Assessment applications

Not all witnesses expressed concerns over the rise in the LMIA fee. One witness in particular, Jayson Hilchie, President and Chief Executive Officer of the Entertainment Software Association of Canada, indicated that companies in the Canadian video game industry originally supported the LMIA fee increase based on the assumption that a higher fee would reduce the number of applications and result in an “increased efficiency of application.”[24]

According to Mr. Hilchie, however, companies in the video game industry have found inconsistencies in the way that program officers apply the rules and process applications across the different Service Canada locations. In their experience, applications are often denied based on a lack of understanding of the types of positions required by the industry. LMIA applications listing jobs not found under the National Occupational Classification (NOC)[25], for example, are often discarded.[26] Concerns in this regard were echoed by other witnesses from the high-tech industry, including representatives from the Vancouver Economic Commission, who noted that the current NOCs list only standardized jobs, thereby excluding occupations in emerging technologies.[27]

Other witnesses noted complexities around the LMIA application itself. Bruce Webster and Ms. Madsen, for example, two individuals who have hired a series of caregivers over the years, indicated there is a duplication of information between the LMIA and work permit applications, and that the LMIA application itself is both lengthy and difficult to understand. Corinne Pohlmann, Senior Vice-President of the Canadian Federation of Independent Business, echoed concerns in this regard, suggesting this was an area that needed improvement.[28]

Witnesses also identified challenges around the processing of LMIA applications where the main objective is to hire a foreign national who can contribute to strengthening Canada’s research and innovation performance, rather than filling a labour gap. According to Universities Canada, such is currently the case for foreign faculty members who, unlike post-graduation work permit holders, do not currently fall under the International Mobility Program, thereby requiring an LMIA. In their view, the LMIA exemption should be extended to all forms of academic hiring, including faculty members.[29]

C. Timelines associated with the processing of Labour Market Impact Assessment applications

An additional challenge identified by witnesses was the length of time it takes ESDC/Service Canada to process LMIA applications across all streams, and the potential impact on companies’ productivity and ability to generate revenue. Once a positive LMIA has been issued, a work permit still needs to be obtained. Accordingly, any delays in the processing chain could have an impact on how long it will take for a temporary foreign worker position to be filled.

For representatives from Montreal International, the 10 to 12 weeks it takes to process an LMIA application is viewed as “too long” and as “hamper[ing] the development/operations of some companies” that cannot find workers domestically and need to rely on temporary foreign labour.[30] Similarly, witnesses expressed concerns over the fact that it can take up to seven months to complete the process to hire a temporary foreign national, as well as over the inconsistencies that exist with respect to the speed of processing across different regions of Canada.[31]

Further, while the June 2014 reforms set a 10-business-day processing service standard for LMIA applications with respect to highest-demand occupations (skilled trades), highest-paid occupations (top 10%), or short-duration work periods (120 days or less),[32] representatives from the Canadian Interactive Alliance have indicated that the 10‑day service standard has not always been met. In their view, long processing times and inconsistencies around the processing of LMIA applications have made it difficult for companies in the interactive digital media industry to accept financing or contracts with specific deliverable dates, as employers often do not know when their selected staff will be able to start work.[33] Further, according to the submission by the Honourable Jeremy Harrison, Minister responsible for Immigration, Jobs, Skills and Training in the Province of Saskatchewan, the lack of service standards for applications not deemed a priority also constitutes a “bureaucratic obstacle” for employers and has an impact on economic growth.[34]

Specifically with respect to the effects on temporary foreign workers, witnesses noted that LMIA processing delays may lead them to face periods of unemployment and uncertainty. Migrant workers in low-wage positions are required to renew their work permits on an annual basis, a fact that is dependent upon the employer obtaining a positive LMIA.[35]

In order to address issues related to LMIA processing and timelines, witnesses emphasized the necessity to streamline and standardize the LMIA application process. The Canadian Employee Relocation Council suggested, for example, implementing a Trusted Employer Program for the high-wage stream, which would be modelled after programs currently in use in the United Kingdom, Ireland and Australia. Under such a program, firms designated as trustworthy in their use of the TFW Program would have access to an accelerated labour market test.[36] Further, Rory McAlpine, Senior Vice-President of Maple Leaf Foods Inc., recommended the establishment of an appeal mechanism to allow employers to challenge unfavourable LMIA-related decisions.[37] Other suggestions included updating the NOCs to reflect current occupations and placing more program officers in local regions to process applications. In order to prevent duplication of information and increase expediency, witnesses also suggested that measures be put in place to increase coordination between ESDC/Service Canada and IRCC officials.