Immigration Canada

Accelerated Labour Market Opinion Fact Sheet

Before submitting an application under the Accelerated Labour Market Opinion (A-LMO) Initiative, employers must read and understand all of the requirements as described in this Fact Sheet.

Effective April 25, 2012, Human Resources and Skills Development Canada (HRSDC)/Service Canada is implementing a new A-LMO Initiative, in an effort to respond to the needs of eligible employers for timely Labour Market Opinion (LMO) processing while enhancing employer compliance.

The A-LMO Initiative introduces efficiency measures by reducing the amount of paper-burden on employers in the application process, and by introducing attestations for specific assessment criteria. An A-LMO application does not exempt employers from criteria assessed in the regular LMO process. HRSDC/Service Canada will continue to provide an A-LMO based on:

the genuineness of the job offer;
the wage offered; and
whether the job offer is likely to fill a labour shortage.

If the employer meets all the eligibility criteria to participate in the A-LMO Initiative,HRSDC/Service Canada will then verify if the employer has agreed to all of the attestations and issue a positive A-LMO within 10 business days.

Employer Eligibility

The A-LMO Initiative applies only to higher skilled positions such as: management, professional and technical occupations (classified under the National Occupational Classification (NOC) skill type 0, and skill levels A and B). However, at the present time, employers hiring in the film and entertainment and agriculture sectors, must apply under the regular LMO process.

To be deemed eligible for the A-LMO Initiative, employers must meet all of the Program requirements for higher skilled positions, including:

researching and understanding the wages posted on the Working in Canada (WiC) Web site for the occupation they are requesting an A-LMO. Employers have some flexibility to base the wage paid to the TFWs on what they pay their Canadian and permanent resident employees.
NOTE:
A wage up to 15% less than the posted wage will be accepted provided that the wage is the same wage paid to Canadian or permanent resident employees in the same occupation. Employer opting to pay less than the posted wage may be subjected to a compliance review. HRSDC/Service Canada will issue a negative A-LMO if the wage offered to the TFW is more than 15% below the posted wage.
meeting the advertisement and recruitment efforts in order to hire Canadian citizens and permanent residents, prior to offering the job to a temporary foreign worker (TFW) and submitting an A-LMO application.

In addition, employers must:

have been issued at least one positive LMO in the previous two years;
have a clean compliance record with the Temporary Foreign Worker Program (TFWP)within the last two years;
have agreed to all of the attestations included in the A-LMO application, consenting to participate in a post A-LMO compliance review;
not have been the subject of an investigation, infraction or a serious complaint, and
not have any unresolved violations or contraventions under provincial laws governing employment and recruitment.

If the employers do not meet the A-LMO eligibility criteria, HRSDC/Service Canada will inform them that their applications will be assessed under the regular LMO process, and will direct them to the TFWP Web site for information related to the Program requirements.

Accelerated Labour Market Opinion Compliance Review

As part of the A-LMO application, employers must provide their consent to participate in a post-LMO compliance review. By consenting, employers agree to allow HRSDC/Service Canada to perform a compliance review of the positive A-LMO or any other positive LMOissued to the employer in the previous two years.

During the review, employers will be required to submit documentation to demonstrate compliance with the terms and conditions of the positive LMO or A-LMO letters and their annexes. Up to 20% of positive A-LMOs will be selected for a compliance review. These reviews may be based on random selection, or in response to information received subsequent to the issuance of an A-LMO.

Employer Compliance

To be compliant, employers must meet all the terms and conditions set out in the positiveA-LMO or LMO letters and their annexes. Compliance includes, but is not limited to the fact that the:

employer provided wages, working conditions, and an occupation to the TFW that are substantially the same as those offered in the LMO or A-LMO application;
employer provided wages and working conditions that are the same as those offered to Canadian citizens and permanent residents in the same occupation and work location;
employer performed the minimum recruitment efforts required by the Program;
employment of a TFW filled a labour shortage;
employment of a TFW did not adversely affect the settlement of a labour dispute; and
employer agrees to abide by the relevant federal/provincial/territorial laws that regulate employment and recruitment.

Documentation required to demonstrate compliance

Employers must always review the positive A-LMO and LMO letters and annexes to understand all the terms and conditions in which they must be compliant. They should also contact HRSDC/Service Canada if they discover discrepancies or if they are thinking of making any changes to the terms and conditions set out on the positive A-LMO andLMO letters and annexes. To demonstrate compliance through a review, employers may be required to submit the following documents:

payroll information for the TFW and potentially for Canadian citizens and permanent residents;
collective bargaining agreements;
time sheets;
job descriptions;
copies of recruitment advertising;
proof of no labour dispute;
copies of the TFW’s work permit; and
proof of registration with provincial/territorial workplace safety, where applicable.

Employers should retain all documents related to their A-LMO application and attestations, as well as any documents related to other positive LMOs, for up to 6 years. Failure to provide the requested documentation will result in the employers’ ineligibility to participate to the A-LMO Initiative.

Non-compliant employers

When non-compliance is determined, employers will have an opportunity to provide justification as well as to take corrective action, where applicable. HRSDC/Service Canada will work with the employer to implement the appropriate corrective action and may request proof to this effect in order for the employer to be deemed compliant.

Employers found non-compliant with the A-LMO Initiative, will be subject to consequences which will include:

ineligibility to use the A-LMO Initiative;
possible revocation of other LMOs for which work permits have not been issued yet;
sharing the compliance review finding with HRSDC/Service Canada federal and provincial partners, for further investigation; and
greater scrutiny of any pending or subsequent LMO applications.

How to Apply

Employers who want to hire TFWs using the A-LMO Initiative can apply online or send a paper application. Employers must ensure that they have met all of the Program requirements for the higher skilled positions.

NOTE:
The Initiative is currently not implemented in the province of Quebec.

Online A-LMO Process

The TFW Web Service has been adapted to offer Web Service users access to the onlineA-LMO application process. The registration forms for the Web Service will include an option which allows users to be considered for the A-LMO Initiative. Once the registration is completed and mailed or faxed to the nearest Service Canada Centre, it will be reviewed to determine if the employer’s organization is eligible for access to both the Web Service and the online A-LMO process.

A-LMO Paper Application

Employers must complete, sign and submit the A-LMO application to the Service Canada Centre responsible for their area.

NOTE:
Employers who have previously submitted an LMO application, for which an opinion has not been issued yet, may now take advantage of the new A-LMO Initiative. They can withdraw their LMO application and resubmit an A-LMO application, provided that both applications are for the same position. To withdraw your previous application, please inform HRSDC/Service Canada in writing when applying for your A-LMO.

Are Canadians ready for higher rates?

The Toronto Dominion Bank Building, Vancouver, British Columbia, Canada. (Photo credit: Wikipedia)

JEREMY TOROBIN

OTTAWA— Globe and Mail Update

Policy makers are right to fret about overbuilding in the Toronto and Vancouver condo markets, but it’s worth remembering that unless those bubble-like markets burst, the less-than-ideal mix of high household debt and overpriced housing may be more manageable than it looks.

Concerns about housing have been in sharp relief for weeks now, long before Tuesday’s report from Canada Mortgage and Housing Corp. showed a surge in condominium construction, which helped push overall construction starts up 14 per cent last month to the fastest annual rate since September, 2007. That's because Bank of Canada Governor Mark Carney started hinting in mid-April that he is looking for an opportunity to start lifting his key interest rate from the current 1 per cent. He also reiterated his concerns about too many people failing to resist the lure of cheap debt that won't be as affordable when rates are higher.

Francis Fong, an economist with Toronto-Dominion Bank, says in a study released Tuesday that while most Canadians look “well-positioned” to absorb an interest-rate increase of around 2 percentage points, “there is a substantial minority that cannot.”

Specifically, Mr. Fong points to analysis from the Bank of Canada itself, which warns that 7.5 per cent of Canadian households could be in some financial trouble once borrowing costs “normalize.” He also points to a projection by the Canadian Association of Accredited Mortgage Professionals that a benchmark rate of 3 per cent would put 21 per cent of all mortgage holders in hot water.

But here’s the thing: nobody believes Mr. Carney has any intention (or capacity) to bring interest rates to that level anytime soon. Even TD, which predicts the first rate hike will come before the end of 2012, sees Mr. Carney moving very gradually to 2 per cent – by the end of 2013. The central banker will be able to move more aggressively once the European crisis seems more stable again, and once the U.S. economy is stronger and the Federal Reserve is closer to hiking, too. So, Mr. Fong warns, barring another “major shock” to the global economy, Mr. Carney’s rate (which directly influences variable-rate mortgages and other floating loans) will rise by at least 2 percentage points before 2015.

Mr. Fong’s main point is that while higher rates are hardly a boon for consumer spending, rates will go up so slowly that there “will likely be enough lead time” for many households to “adjust their spending habits” to account for higher payments.

Moreover, he points to signs that Canadians are already accumulating debt at a slower rate, as does Benjamin Tal of CIBC World Markets in a separate report. Even in an environment of historically low interest rates, Mr. Tal says, overall household credit is rising at the slowest pace since 2002.

“The pace of growth in household credit is no longer a reason for the Bank of Canada to move from the sidelines any time soon,” he argues, suggesting Mr. Carney’s warnings are being heeded after all.

No need to worry, then? Afraid not.

TD’s Mr. Fong notes that annual mortgage credit growth, while down from its pre-recession peak, has held steady at an almost 8-per-cent pace for three years. This suggests borrowers are using their credit cards and lines of credit less, but taking out mortgages at roughly the same clip.

And Mr. Tal notes in his report that the real-estate market is “overshooting,” even as signals suggest – in most markets, anyway – that activity is slowing down.

Which brings us back to overbuilding in Toronto and Vancouver. The same day that CMHC published its eye-popping housing starts numbers, the Crown corporation said in its annual report that it sees no “clear evidence” of a bubble. Mr. Carney, meanwhile, will probably never utter the B-word, but has been hinting for several months that he sees at least the makings of one in some cities.

This below is in his semi-annual assessment of the financial system, from December: “Certain areas of the national housing market may be more vulnerable to price declines,” he said, adding, “the supply of completed but unoccupied condominiums is elevated, which suggests a heightened risk of correction in this market.”

Over and over again since then, Mr. Carney has said authorities are watching closely, and will act to cool the market if necessary, while stressing that interest-rate hikes are too blunt an instrument to deal with this issue, other than in “exceptional circumstances.” With Greece and Spain roiling global markets again, and lukewarm economic news south of the border, it’s harder to imagine Mr. Carney raising rates this year than it was a few weeks ago. Still, the excess supply of condos in Canada’s biggest cities suggests we may have reached “exceptional circumstances.”

That leaves CMHC and, by extension, Finance Minister Jim Flaherty, who is in the process of beefing up oversight of the often clueless-sounding agency.

Mr. Flaherty warned recently that condo developers seem willing to build new units until sales dry up. This could lead to a crash, and the last buyers in could get burned, he warned in a meeting with The Globe and Mail’s editorial board last month.

Some of this frenzied building and buying is linked to foreign investment, the actual amount of which is hard to know since even the government says it doesn’t know. So there may be little the government can do, other than hope the market lands softly.

However, if Ottawa is so worried about the last buyers in, there is one thing it could do to ensure that those people are not the Canadians who can least afford to get burned. The last of three times that Mr. Flaherty has ordered CMHC to tighten its eligibility requirements, in January, 2011, he opted against raising the minimum down payment from the current 5 per cent. (Mr. Flaherty had been warned by the Canadian Real Estate Association and Canadian Association of Accredited Mortgage Professionals that raising the current 5-per-cent minimum down payment would shut too many first-time buyers out of the market and cost jobs.) Raising the minimum to, say, 7 per cent, would seem to be a measured, prudent way for Ottawa to limit the number of naive new borrowers who could be left holding the bag for a lifetime because greedy condo builders couldn’t rein themselves in.