Strategic Preparation & Negotiation Of A Labor Market Benefits Plan

Employers looking to bring foreign tech workers to Canada through the Global Talent Stream Labour Market Impact Assessment (GTS LMIA) can view the Labour Market Benefits Plan (LMBP) as a win-win deal with the government. The deal is that an employer must commit to bringing three benefits to the Canadian labor market in exchange for permission to bring foreign tech workers to Canada. The good news is that an employer’s commitments to benefits are “negotiable” based on the number of foreign tech workers.

Of course, there are other requirements under the GTS LMIA, but the Labour Market Benefits Plan is the most essential for approval. Below, we discuss in detail how to select and negotiate labour market benefits.

Considerations for Preparing a Firm’s First-Ever Labour Market Benefits Plan

Firms using the Global Talent Stream program for the first time should think strategically. How many foreign tech workers will they bring to Canada in the next two to three years? Suppose the number of positions is higher than the number they request on a current LMIA. In that case, labor market benefits, activities, and targets should account for the total number of tech positions to be filled within two to three years. This practice ensures they don’t need to prepare a new plan each time they apply to fill a new position within the validity of their initial Labour Market Benefits Plan.

For example, a company applies to hire a foreign national for the position of Software Engineer. At the same time, they plan to hire four more foreigners for tech roles within a year or two. In this scenario, it would be good practice to propose benefits proportionate to the intention of hiring five foreign tech workers, even though the employer only requests to fill one position on the current LMIA.

The bottom line for one position would be three labor market benefits—one mandatory and two complimentary. The scope of activities and targets should be proportionate to hiring one temporary foreign worker (TFW). For example, a firm may select hiring a co-op or intern student to achieve the benefit of increasing skills and training investments for Canadians and permanent residents. One or two co-op/intern students per year are a proportionate target for one temporary foreign worker. However, to get approval to bring five foreign tech workers, the target should be larger in scope—three to five co-op/intern students per year throughout the commitment period (two years).

Therefore, a firm must commit to three labor market benefits (one mandatory and two complimentary) irrespective of the number of positions they request under the Global Talent Stream. The number of activities and the scope of targets to achieve the benefits should be proportionate to the number of positions—more positions mean a more substantial scope of targets.

How to Use the ESDC List of Labour Market Benefits & Activities

Employment and Social Development Canada (ESDC)/Service Canada provides examples (a list) of labor market benefits and activities that an employer may select from. This list is not exhaustive, and employers can suggest other activities not on the list.

As a rule of thumb, employers should select activities and targets that are realistic and doable considering their business’s background. This is good practice for two reasons: (1) to set a baseline for negotiating the Labour Market Benefits Plan with an ESDC/Service Canada officer, and (2) to avoid compliance issues during LMBP progress reviews.

Firms should avoid “mechanical” selection of activities inconsistent with their business profile. For example, selecting an activity of training sessions for Canadian and permanent resident employees when a firm does not employ any is not genuine and would compromise an ESDC/Service Canada officer’s trust.

Similarly, employers should not propose too many activities with disproportionately high targets just to “impress” an ESDC/Service Canada officer and “guarantee” approval. This tactic can overburden employers with unnecessarily high targets that could have been avoided with a more rational approach.

A good practice would be to propose an LMBP containing activities and targets proportionate to the number of prospective TFWs. This plan sets a baseline to negotiate the LMBP with an ESDC/Service Canada officer. The risk is minimal, as employers will have a chance to commit to more activities or higher targets after an interview with the ESDC/Service Canada officer. An application cannot be refused or considered incomplete because of lesser targets. An employer can always amend the plan before it is approved.

Negotiation of a Labour Market Benefits Plan

Once again, the Labour Market Benefits Plan (LMBP) is key to success when it comes to the Global Talent Stream LMIA. Preparing a well-conceived LMBP will help negotiate a realistic version with an ESDC/Service Canada officer and get an LMIA approved based on fair and doable commitments. Ultimately, an employer will be required to report on the progress of the commitments.

LMBP negotiation has several stages:

1. Submit a plan (filed with the GTS LMIA application).
2. Reconfirm labor market benefits, activities, and targets with an ESDC/Service Canada officer during an interview. Within about five days of LMIA filing, an officer will schedule a phone call with the employer to review the proposed activities and targets. The officer may clarify some points and suggest amendments. It is acceptable to negotiate commitments during the interview.
3. Sign a final LMBP. Within one or two days after the interview, the ESDC/Service Canada officer will send a final version of the plan for signing. Within one or two days after the employer signs the commitments, the ESDC/Service Canada officer will make an LMIA decision.

Labour Market Benefits Plan Progress Review

The Labour Market Benefits Plan comes into action on the first day of the following month after negotiation. This marks the starting date of the reporting period, irrespective of the actual arrival date of the temporary foreign worker in Canada. The rationale is that benefits are not necessarily related to or the result of a temporary foreign worker's skills and work. Some benefits may be, such as if a TFW works on a new product. On the other hand, increasing workplace diversity is not related to a TFW at all.

In about twelve months, an employer will need to provide documents supporting progress on the plan (progress review). In some cases, an employer must report on the progress of their LMBP even before a TFW arrives in Canada.

If an employer does not make reasonable efforts to implement the activities of the signed LMBP, they will not be able to use the Global Talent Stream for about two years from the assessment date. However, they can still use the High-Wage Stream to hire foreign tech workers as long as they do not have compliance issues.

Changing the Labour Market Benefits Plan Post LMIA Approval

Employers can update their valid Labour Market Benefits Plans in two instances:

1. Submit alternative benefits, activities, or targets if they cannot perform the initially undertaken commitments for justified reasons. This ensures reasonable efforts are made and allows continued use of the Global Talent Stream program.
2. Add more benefits, activities, or targets if they request additional positions while the initial LMBP is valid.