WITH THE SUPPORT OF:
CONSULTATION ON THE
TEMPORARY FOREIGN
WORKERS PROGRAM
BRIEF BY MONTRÉAL INTERNATIONAL
JUNE 2ND 2016
TABLE OF CONTENTS
PRESENTATION OF MONTRÉAL
INTERNATIONAL
PROBLEMS EXPERIENCED AND
RECOMMENDATIONS
03
29
DEFINITION AND ECONOMIC IMPACT
OF TEMPORARY WORKERS
APPENDIX
32
11
CURRENT CONTEXT AND ECONOMIC
CHALLENGES OF GREATER MONTRÉAL
15
Greater Montréal
TABLE OF CONTENTS
2
PRESENTATION OF
MONTRÉAL
INTERNATIONAL
MONTRÉAL INTERNATIONAL
A PUBLIC-PRIVATE PARTNERSHIP
•
82 municipalities within the
Communauté métropolitaine de
Montréal
•
Board of directors
 Private sector
 3 levels of government
•
60 employees
•
At the centre of a strategic
network (universities, clusters,
community economic development
corporations, etc.)
4
MONTRÉAL INTERNATIONAL
OUR MISSION
 Montréal International (MI) acts as an
economic driver for Greater Montréal to attract
foreign wealth while accelerating the success
of its partners and clients.
5
QUÉBEC FILM AND TELEVISION COUNCIL
ABOUT US
Founded in 2006, the Québec Film and Television Council (QFTC) is a non‐profit organization that contributes to the development and competitiveness of Quebec as a world‐
class multi‐screen production centre. As an economic development agency, its mission is to generate investment in Quebec by relying on competitive tax incentive programs, the expertise of industry members, architectural diversity, the quality of infrastructure and the industry’s ability to export its products to foreign markets.
6
ALLIANCE NUMÉRIQUE
ABOUT US
Since its launch in 2001, Alliance numérique has served as Québec’s
business network for the new media and interactive digital content industry. The Alliance has over 100 active members from the video
games and interactive digital entertainment sectors. It supports the professional development of its members by offering them a wide
range of services and activities.
It drives partnerships, meetings and sharing at both national and international level, in order to promote the industry’s growth, competitiveness and outreach, while respecting all of its
stakeholders.
The Alliance is also entrusted with representing the industry in relations with the authorities.”
7
TALENT IS CENTRAL TO THE ECONOMIC DEVELOPMENT OF
MONTRÉAL
Synergy: FDI - Talent attraction
Foreign direct investment (FDI)
International organizations (IOs)
Talent attraction
Target: Foreign companies
Target: International
organizations
Target: Local and foreign companies
• When a foreign company establishes
itself in Greater Montréal, a number
of employees from its head office or
other international subsidiaries often
move to the region.
• IOs' workforce is highly mobile and
international. When an international
organization comes to Montréal, a
number of employees move to the
region.
• The presence of skilled workers with
in-demand expertise and experience
fosters the attraction of FDI and
economic growth.
• The presence of strategic talent is
one of the most important factors to
attract FDI.
INTERNATIONAL MOBILITY
MI's International Mobility Division (IMD) supports prospecting activities by facilitating immigration procedures
for foreign and local companies' skilled temporary workers as a part of foreign direct investment,
international organizations and talent attraction.
8
THREE KEY FACTORS TO ATTRACT FOREIGN COMPANIES
TALENT
WORKFORCE QUALITY AND AVAILABILITY
EDUCATIONAL AND RESEARCH INSTITUTIONS
PRODUCTIVITY
....
COST
STRUCTURE
WORKFORCE
BASIC TAXATION and INCENTIVES (TAX CREDITS,
SUBSIDIES, ETC.)
REAL ESTATE, ENERGY
...
MARKET ACCESS
PRESENCE OF CLUSTERS
FREE-TRADE AGREEMENTS
REGULATIONS
...
The availability of talent is often the most significant factor in attracting high-tech
projects, which account for ¾ of foreign investments supported by Montréal
International.
Source: Montréal International Analysis
9
MI HAS AN IMPORTANT EXPERTISE IN IMMIGRATION
•
Since 1996, Montréal International has
contributed to the recruitment and
welcome of 10,386 foreign workers.
•
In 2015, 386 strategic workers have
benefited from the expertise and strategic
advice of MI in the framework of their
request for temporary residence.
•
A team of three professionals with 50
years of combined experience in
immigration, who helps company with their
international recruitment.
10
DEFINITION AND
ECONOMIC IMPACT
OF TEMPORARY
WORKERS
SIX FACTORS DETERMINING THE STRATEGIC
NATURE OF FOREIGN TALENT
SIX FACTORS FOR THE STRATEGIC WORKER’S VALUE:
 Degree of difficulty in finding the required employee profile locally
 Job importance for the growth of the company's business
 Importance of the sector or company to economic growth
 Remuneration level for the position
 Education and specialization level
 Years of experience required
Source: CMM, Blueprint for attraction and welcome of strategic talent in Greater Montréal, 2011
12
FOREIGN STRATEGIC TALENT IS A SHORT-TERM SOLUTION,
WITH LONG-TERMS POSITIVE IMPACTS
Companies
Economic growth
and improvement
of the region’s
attractiveness for
foreign companies
Spillover effect
New projects
Attraction of
strategic
talent to fill
shortages
New
expertise
Hiring new
local workers
Company
growth
Knowledge
sharing with
other employees
Multiplication
effect
Expansion of the
skilled labour
pool and
economic
benefits
Multiplication effect: in many cases, hiring strategic talent allows the recruitment of local
workers by the company in question
Spillover effect: a company that used international recruitment is generally more open
towards the talents of immigrants
Source: Montréal International Analysis, 2014
13
THE FOREIGN STRATEGIC WORKERS SUPPORTED BY
MI HAVE IMPORTANT ECONOMIC AND TAX IMPACTS
EVALUATION OF THE IMPACT OF A FOREIGN STRATEGIC WORKER’S PRESENCE
ON THE GOVERNMENTS OF CANADA AND QUÉBEC
Per worker
Average salary (2013-2015)
76,008$
Impact on the GDP*
29,377$
Tax (Québec and Canada)
20,691$
Sales tax (Québec and Canada)
6,276$
* This estimate is minimal because it only takes into account the added value resulting from consumer spending and therefore does not include the
direct contribution of the worker to the GDP.
Sources: MI calculations based on data from Québec Statistics Institute, Québec’s Intersectorial Model, 2015; EY, personal income tax calculator.
14
CURRENT CONTEXT
AND ECONOMIC
CHALLENGES OF
GREATER MONTRÉAL
THE WORKFORCE OF GREATER MONTRÉAL WILL BEGIN TO
DECLINE IN THE NEXT 5 YEARS
Population aged 20-64, Greater Montréal
2 600 000
2 595 000
2 590 000
2 585 000
2 580 000
2 575 000
2 570 000
2 565 000
2 560 000
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
The decline of our workforce in absolute numbers will have
major consequences to the region’s economic growth.
Source: Québec Statistics Institute, 2016
16
MANY FACTORS ARE AFFECTING THE POOL OF
SKILLED WORKERS AND STRATEGIC TALENTS
Workforce pool
Integration of
immigrants
Retention of
international
students and
skilled foreign
workers
Interprovincial
migration
balance
Graduation rates
Adequacy of
diplomas
Skilled workers pool
Strategic
talents
Attraction of
talents
The solution to overcome the lack of skilled labour
can be done through the activation of several leverage factors.
Source: Montréal International Analysis, 2014
17
THREE OF THESE FACTORS ARE RELATED TO THE IMMIGRATION
PROCESS INVOLVING SEVERAL ORGANIZATIONS, INCLUDING MI
Workforce pool
Integration of
immigrants
Retention of
international
students and
skilled foreign
workers
Interprovincial
migration
balance
Source: Montréal International Analysis, 2014
Graduation rates
Adequacy of
diplomas
Skilled workers pool
Strategic
talents
Attraction of
talents
18
THE DRIVERS OF JOB CREATION IN MONTRÉAL
ARE THE KNOWLEDGE-INTENSIVE SECTORS
Annual employment growth rate in Greater Montréal,
selected sectors, 2004-2014
8%
4%
3,4 %
3,0 %
2,5 %
1,1 %
0%
-4 %
-8 %
-12 %
Notes: IT = Information technologies; LSHT= Life sciences and health technologies
Source: Statistics Canada, 2015
-2,5 %
-7,8 %
-10,2 %
17
ECONOMIC GROWTH DEPENDS ON THE ABILITY TO
RECRUIT THE REQUIRED STRATEGIC TALENTS
The sectors that
create the most
jobs in Greater
Montréal are the
sectors where
local labour
cannot meet all
the needs.
Limiting the
ability of
companies'
leading sectors
to recruit from
abroad hinders
the economic
development of
Greater
Montréal.
18
GREATER MONTRÉAL: AEROSPACE, AN IMPORTANT
DRIVING FORCE FOR ECONOMIC DEVELOPMENT
THE INDUSTRY OF GREATER MONTRÉAL
40,150 JOBS
80% OF QUÉBEC'S AEROSPACE
PRODUCTION IS EXPORTED
OUTSIDE OF CANADA
+ 200 COMPANIES
A TURNOVER OF 15.5 billion $
QUÉBEC’S NUMBERS REPRESENT
EXAMPLES OF MAJOR
COMPANIES OPERATING IN
GREATER MONTRÉAL
55% OF PRODUCTION
50% OF THE HEADCOUNT
+ 70% OF R&D
OF THE CANADIAN AEROSPACE INDUSTRY
Source: Québec Ministry of Economy, Science and Innovation, 2016
21
GREATER MONTRÉAL: 5TH GLOBAL CENTER FOR VIDEO GAMES
EMPLOYMENT GROWTH
IN THE VIDEO GAMES
INDUSTRY IN QUÉBEC
12 000
5th
GLOBAL CENTER for video games
production
10 000
8 000
6 000
4 000
ANNUAL GROWTH IN QUÉBEC IN
THE PAST 10 YEARS
2 000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0
14%
ESTIMATED GLOBAL GROWTH
(2014-2016):
17%
Sources: Technocompétence, 2013; ESAC / Nordicity, 2015; PWC; Game Industry Career Guide-Best Cities of Video Game
Development Jobs
22
GREATER MONTRÉAL: 4TH GLOBAL CENTER FOR VISUAL EFFECTS
EMPLOYMENT GROWTH
IN THE VISUAL EFFECTS
INDUSTRY IN QUÉBEC
1500
4th
GLOBAL CENTER for visual effects
Annual growth in Québec since 2009
(year of the tax credit increase)
1000
500
25%
0
2009 2010 2011 2012 2013 2014
There is ”a general disproportion between the
supply and demand of labour to meet the
sector's growth prospects”
"Hiring immigrants with a temporary work
permit is currently the backup solution to the
scarcity of skilled labour with sufficient
experience"
Diagnosis of manpower needs and training and
employment of the visual effects industry and animation,
Conseil emploi métropole, 2016
Sources: QFTC, Statistics Canada (ENM, 2011), KPMG-SECOR Analysis; PWC, 2014;
23
GREATER MONTRÉAL: A FINTECH INDUSTRY IN FULL
GROWTH
GLOBAL GROWTH OF
INVESTMENTS IN FINTECH
(2013-2014)
201%
FINANCIAL INDUSTRY
OF GREATER MONTRÉAL
3,000 companies
18th financial center globally
1,300 new graduates/year
Sources: Statistics Canada, 2015; Accenture, 2015; Finance Montréal, 2015;
MONTRÉAL FINTECH ECOSYSTEM
KEY AREAS: ELECTRONIC AND MOBILE
PAYMENT, BIG DATA, INTEGRATORS,
SOFTWARE AND FINANCIAL
CRYPTOCURRENCIES
EXAMPLES OF COMPANIES OPERATING IN
GREATER MONTRÉAL
24
GREATER MONTRÉAL: A FERTILE CRADLE
FOR HEALTHCARE IT
THE INDUSTRY OF
GREATER MONTRÉAL
LSHT*
HEALTHCARE IT
42,000 jobs
4,000 jobs
140 companies
Average annual growth of
Healthcare IT in the North
American market from
2013 to 2017
HEALTHCARE IT MONTRÉAL
ECOSYSTEM
KEY AREAS: TELEMEDICINE,
TRANSMISSION AND DATA PROCESSING,
TRAINING, IMAGING, SUPPLY OF IT
SOLUTIONS AND INTEGRATORS
EXAMPLES OF COMPANIES OPERATING
IN GREATER MONTRÉAL
7.4%
Note: LSHT: Life sciences and health technologies
Sources: Statistics Canada, 2015; KPMG-SECOR Analysis, 2015; Montréal International Analysis,2015
25
FUTURE INVESTMENTS SHOULD BE CONCENTRATED
IN THE BROAD-BASED ICT SECTOR
Growth sectors
in Greater
Montréal
Source: The Economist, January 2, 2016 issue
26
BUT IT'S MAINLY IN ICT THAT EMPLOYERS ARE STRUGGLING
TO MEET THEIR LABOUR NEEDS LOCALLY
●
Creative, innovative and skilled talent is Montréal's main attraction
●
However, nearly one out of five employers in Québec claims to have difficulty recruiting
talent, which is hindering the province's economic development
Sectors
Video games and visual effects
Software development
IT consulting services
Financial services
Aerospace
Examples of key positions that are difficult to fill
















Project managers
Interactive media programmers and developers
Graphic designers
Visual effects supervisors
Web designers and developers
Software engineers and designers
Project managers
IT systems managers
Computer engineers
Systems/network architects
Specialists in IT for financial services
Aerospace engineers
Mechanical engineers
Industrial and manufacturing engineers
Aeronautical technologist
Aircraft assembler
More availability of these skilled temporary workers would allow to generate more
investments and jobs.
Sources: Emploi-Québec, 2012 Survey on Labour Needs in Establishments in the Montréal Census
Metropolitan Area), 2013; Montréal International Analysis
27
TO REMAIN COMPETITIVE, MONTRÉAL UNIVERSITIES
MUST RELY ON FOREIGN TALENT
The shift to knowledge economy in Greater Montréal is well underway and, to remain
competitive, the city must have a highly educated population.
●
The universities contribute greatly to the economic vitality and attractiveness of
Greater Montréal with their research and training of the workforce in the city.
●
Montréal universities must recruit foreign lecturers and researchers that will enable
knowledge transfer.
Portrait of a university city:
●
A highly skilled workforce
●
11 institutions of higher learning
●
More than 190,000 university students, including 22,000 from abroad and nearly 120,000 college
students
●
QS Best Student Cities 2015-2016 ranks Montréal as the best university city in the Americas and
7th in the world
●
According to the Times Higher Education World University Rankings 2016, two Montréal
institutions are in the world's top 100 most international universities:
• McGill University
• University of Montréal
Source: Ministry of Education, Recreation and Sports of Québec, academic year 2013-2014.
28
PROBLEMS
EXPERIENCED AND
RECOMMENDATIONS
PROBLEMS AND RECOMMENDATIONS –
TEMPORARY FOREIGN WORKER PROGRAM (ESDC)
Problems
Recommendations
The current processing times of the labour market impact
studies (LMIA) from 10 to 12 weeks are too long and
hamper the development/operations of some companies.
1. Shorten the processing of applications for LMIA made
through the simplified process in 10 working days.
The Québec workforce offer, for occupations listed on the
list for the simplified process, is deemed not to meet the
needs of Québec employers. Asking them to submit a
transition plan for these professions in high demand
proves to be inconsistent.
3. Eliminate the requirement for the transition plan as part
of a LMIA demand for occupations on the list for the
simplified process since these professions are in high
demand in Québec.
The administrative burden and lack of program flexibility
complicates the temporary immigration process.
4. Develop clearer and more transparent guidelines
relating to applications for LMIA to increase predictability
for employers and consistency of decisions (pending
instructions manual).
2. Shorten the processing of applications for LMIA made
through the regular process in 30 working days.
5. Stop the return or destruction of records for minor
mistakes in the application.
6. Allow reasonable changes to salaries, job descriptions
and conditions of employment (promotion, annual salary
increase, etc.) without requiring prior notice.
7. Clarify the concept of compliance and enforcement of
sanctions.
30
PROBLEMS AND RECOMMENDATIONS –
INTERNATIONAL MOBILITY PROGRAM (IRCC)
Problems
Recommendations
The level of French required to obtain permanent
residence is difficult to achieve in 4 years for some
temporary workers.
8. Exempt occupations level "B" of the NOC (technical level)
from the maximum cumulative duration of 4 years of temporary
work in Canada.
Difficulty in attracting foreign workers who have
children enrolled in higher education.
9. Return to the old definition of a dependent, to establish the
age of dependents to less than 22 years.
Post production activities similar to those of
television and film production are not eligible for the
same exemption.
10. Broaden the exemption of LMIA C14 to post-production
(visual effects) and to animation.
Difficulty in attracting and retaining employees of
international organizations.
11. Restore the exemption of LMIA T10 for international
organizations (see Appendix).
The rigidity of the requirement of expertise specific
only to the company hinders transferring key
employees to Québec.
12. Facilitating the requirements for intra-company transfers for
employees with specialized knowledge (exclusive to the
company) C12.
IRCC online system problems complicates the
arrival of temporary workers on www.cic.gc.ca.
13. Review the online application system for job offers and
payment of the compliance fees (employer portal) and offer a
quick alternative when technical issues arise.
The non-Canadian spouses of Canadian citizens
and permanent residents who return home
following an expatriation, cannot work in Canada.
14. Expand the exemption of LMIA C41 to spouses of Canadian
citizens and permanent residents returning to Canada.
31
APPENDIX
WORK PERMITS FOR INTERNATIONAL ORGANIZATIONS:
A MAJOR CHALLENGE FOR GREATER MONTRÉAL (1/2)
• Until August 2009, the Canadian
government granted T10 exemptions
waiving the requirement to obtain a Labour
Market Impact Assessment (LMIA) for a
work permit for expatriated employees
working for international non-governmental
organizations (INGOs) residing in Canada.
• What's more, these procedures require that
a job posting and recruitment efforts be
carried out on the Canadian job market
when there is an application to obtain or
renew a work permit. This counteracts
recruitment rules specific to INGOs. By
nature, INGOs are often required to recruit
internationally for certain positions.
• In August 2009, the government abandoned
the accelerated process (T10) used by
INGO expatriates. Since then, the issuance
or renewal of permits must comply with the
procedures associated with T11, T12 and
T13 exemption codes. However, these
processes are much more bureaucratic,
complex and costly. In addition, they involve
obtaining an LMIA. Confidential information,
such as salary, must be made publicly
available.
• These measures are just as concerning as
the majority of work permit applications are
for executive or highly specialized positions,
and the people who hold these positions
have been recruited internationally. It is
unthinkable for these organizations to limit
their recruitment processes to the local or
Canadian regions.
33
WORK PERMITS FOR INTERNATIONAL ORGANIZATIONS:
A MAJOR CHALLENGE FOR GREATER MONTRÉAL (2/2)
Impacts on INGOs based in Canada
•
These procedures create insecurity, dissatisfaction and instability for INGO employees and
leaders based in Canada. They also alter the open and welcoming image that Canada wants
to portray to international organizations.
•
The Government of Canada, like the Government of Québec, is investing significant funds to
attract and retain international organizations. These organizations put Canada on the world
stage, allowing it to enter influential international circuits, while creating high-level, well-paid
employment. Note that 2/3 of IO staff are Canadian employees.
Recommendation: To respect the unique nature of international organizations established
in Canada, we recommend that the Canadian government reactivates the T10 exemption
to obtain or renew work permits of expatriated employees working for INGOs.
34