Suspension of LMIA Applications for Specific Low-Wage Workers Announced by Quebec

By admin (August 21, 2024)

Suspension of LMIA Applications for Specific Low-Wage Workers Announced by Quebec

Beginning September 3rd, Labour Market Impact Assessment (LMIA) processing for applicants in Montréal will be suspended for job offers with hourly wages below $27.47 CAD, which is Quebec’s median hourly wage. This suspension, approved by the Canadian federal government, is expected to last six months.

Government Announcement on the New Measure

Quebec Premier François Legault and Immigration Minister Christine Fréchette announced the suspension earlier today. The measure is aimed at managing the number of temporary residents in the province and ensuring the integrity of the Temporary Foreign Worker Program (TFWP).

Temporary Residents and the Scope of the Suspension

Temporary residents include individuals who are in Canada on work permits, study permits, or visitor visas/electronic travel authorizations (eTAs).

This suspension will not apply to:

  • Jobs located outside the Montréal economic region.
  • Positions offering wages of $27.47 CAD or higher in Quebec.
  • LMIA applications received before September 3rd, 2024.
  • Employers in specific industries, including agriculture, construction, food processing, education, health and social services, as classified by the North American Industry Classification (NAICS).

Municipalities Affected Within the Montréal Administrative Region

The administrative region of Montréal encompasses municipalities such as Baie-d’Urfé, Beaconsfield, Côte-Saint-Luc, Dollard-des-Ormeaux, Dorval, Hampstead, Kirkland, L’Île-Dorval, Montreal, Montreal East, Montreal West, Mount Royal, Pointe-Claire, Sainte-Anne-de-Bellevue, Senneville and Westmount.

The federal government has stated that it will closely observe the implementation of this policy and make decisions regarding the future of the TFWP accordingly.

Increased Scrutiny on the Temporary Foreign Worker Program

The TFWP, a federal initiative allowing Canadian employers to hire foreign workers to fill critical labour shortages, has recently come under scrutiny. A key requirement for using this program is obtaining an LMIA.

On August 6th, Minister of Employment, Workforce Development, and Official Languages Randy Boissonnault introduced new measures aimed at maintaining the TFWP’s integrity, focusing particularly on the low-wage stream.

Boissonnault expressed concerns that employers may become too dependent on low-cost foreign labour, emphasising that the TFWP should not replace the hiring of Canadian workers where possible. He also suggested that the low-wage stream might suppress wages in Canada and mentioned the possibility of halting LMIA processing under this stream.

These sentiments were echoed by Immigration Minister Marc Miller in recent comments to Reuters.

Broader Immigration Policy Changes in Canada

These TFWP changes are part of a broader reconsideration of temporary immigration levels in Canada. In March, Minister Miller announced that temporary resident levels would be incorporated into Canada’s annual immigration plan.

New Measures Targeting International Students and Temporary Residents

To support this policy shift, Immigration, Refugees, and Citizenship Canada (IRCC) has implemented a temporary two-year cap on certain international students by restricting study permits and introducing a Provincial Attestation Letter (PAL) system.

Miller also indicated plans to introduce new regulations for Post-Graduation Work Permits (PGWPs) and increase the number of “domestic draws” aimed at converting temporary residents in Canada to permanent residents.