In a significant policy shift, the government of Canada has set a precedent by approving a provincial request for a temporary freeze on the hiring of temporary foreign workers in low-wage occupations in the Montreal Economic Region effective September 3rd, 2024.
The move is aimed at addressing the prevailing concerns of local job market saturation and marks a decisive moment in the ongoing debate of supporting local employment in meeting the labour needs of businesses. Many Canadian cities are grappling with increasing unemployment, inflation, and challenges in integrating their local workforce into the job market.
The measure is set to be in place for 6 months beginning September 3 and impacts LMIA applications for low-wage positions in the Montreal Economic region with wages below $27.47/hour.
The economic region of Montreal includes 15 municipalities:
. Baie D’Urfé,
. Beaconsfield,
. Côte-Saint-Luc,
. Dollard-des-Ormeaux,
. Dorval,
. Dorval Island,
. Hampstead,
. Kirkland,
. Montreal East,
. Montreal West,
. Mount Royal,
. Pointe-Claire,
. Sainte-Anne-de-Bellevue,
. Senneville and
. Westmount.
(as per ABM/ASM).
The decision to temporarily pause low-wage job positions under the Temporary Foreign Worker Program(TFWP) is in response to increasing concerns that the influx of foreign workers is aggravating the local job market for Canadians typically in sectors offering lower-wage positions. Montreal has seen higher unemployment rates, especially in the younger section of the society.
Keeping all these factors in mind, the Provincial Government of Quebec has submitted a formal request to the federal government to pause the issuance of Labor Market Impact Assessments (LMIAs) for low-wage positions in the economic region of Montreal. The request was duly granted by the federal government.
Table of Contents
Exceptions
Impact on Employers and Workers
The far-reaching impact of this decision
Potential Outcomes
Conclusion
Exceptions
Below are the few exceptions that exist under this policy:
. LMIA applications submitted before September 3, 2024, are exempt from this policy.
. Positions outside of the economic region of Montreal are not impacted and
. Positions with an offered wage that is equal to greater than the current median hourly wage($27.47/hr) in Quebec are exempted under this policy change.
Furthermore, employers who are applying for LMIA positions from specific industries (NAICS) groups. i.e. agriculture, education, health, construction, food processing, and social services sectors, will also be exempt.
Impact on Employers and Workers
This policy shift will have far-reaching implications for both employers and workers in the economic region of Montreal.
Employers that rely heavily on Temporary Foreign Workers to fill low-wage jobs will have to adjust and change hiring strategies. Local talent will be given preference over foreign skilled workers.
A major shift in local labour market variability is expected, with businesses offering more competitive wages and benefits to attract domestic workers.
The provincial government is trying to address the long-standing issue of keeping a balance between supporting local workers, particularly impacted by economic downturns, especially after COVID-19. This policy might lower the unemployment rates and bring greater economic stability to the region.
Impact of policy change
The federal government’s approval of this policy is a juggling act, trying to strike a balance between supporting local employment and meeting the labour needs of businesses.
Labour groups and worker advocacy organizations have long vouched for protecting local jobs and improving working conditions for domestic workers. These groups have long argued that TFWP undermines the bargaining power of local workers and reduces wages, particularly in low-wage jobs.
The temporary pause on low-wage occupations in Montreal could have broader implications on labour policy across Canada.
This policy will have a far-reaching impact on other provinces and territories as well. Labor groups will push provincial governments to hire local talent and businesses will push to fill labor shortages with skilled foreign workers.
The federal government’s willingness to grant this request suggests a recognition of the need for more localized hiring to meet labour market issues, particularly in unique regions of economic importance.
Potential Outcomes
Will the policy bring dividends and lead to a significant increase in local employment, or will businesses struggle to fill positions without access to foreign workers remains to be seen?
The outcome of this policy shift will impact future decisions at both the provincial and federal levels, as policymakers continue to navigate the complexities of the Canadian Labor Market.
Employers, Workers, and advocacy groups will play a decisive role in shaping the future of this policy.
Will other metropolitan economic zones freeze the hiring of foreign low-wage workers as well?
Many business associations have expressed concern about the potential negative impact of this policy, particularly the sectors that are already struggling with labour shortages.
Conclusion
As the policy takes effect, it represents both a challenge and an opportunity for the economic region of Montreal.
For Employers, it will require a reassessment of hiring practices and a renewed focus on local recruitment of low-wage workers.
For Workers, it might provide improved working conditions and job opportunities.
Finally, the success of this policy will depend on achieving a delicate balance between supporting local employment and meeting the labour market needs of the region.
