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Part II - Labour Market Opinion Analysis

11. Wages

As part of a request for a Labour Market Opinion, the employer must indicate the salary or wages that the foreign worker will receive. The wages must be fixed, or an agreed-upon amount for an agreed-upon number of hours of work per month/week, rather than payment based exclusively on commission, tips, piece work or according to the workload of the employer. In some limited circumstances, HRSDC/Service Canada will consider a job offer when the position is unpaid. (Unpaid work is discussed in section 11.2).

11.1 Prevailing Wage Rate

TFWP officers review the wages that an employer offers and compare them to wages paid to Canadians and permanent residents in the same occupation and geographical area based on objective labour market information from Statistics Canada, HRSDC/Service Canada, provincial ministries, and other reliable sources (Refer to Potential Sources of Wage Information).

A job offer will not be confirmed if an employer offers wages below rates paid to Canadians in the occupation and region where the worker will be employed.

Employers are required to offer temporary foreign workers working in a unionized environment the same wage rate as established under the collective bargaining agreement. In addition, benefits provided to Canadian workers or permanent residents must be extended to temporary foreign workers.

These requirements apply to the regular LMO process and the Pilot Project for Occupations Requiring Lower Levels of Formal Training (NOC C and D), employers wishing to offer the collective agreement wage must apply under the regular LMO process.

These requirements are to make sure that:

It is not more attractive for employers to hire foreign workers instead of Canadian workers or permanent residents.
The entry of foreign workers does not put downward pressure on Canadian wages.
Foreign workers are compensated at least at the same wage rate as Canadian workers.

In order to address unique circumstances, HRSDC/Service Canada maintains the discretion to set the prevailing wage rate that an employer must offer a temporary foreign worker whether or not the position is covered by a collective agreement.

11.1.1 Wage Range in the Advertisement

The wage range identified when the employer advertises the position must represent an accurate range of wages being offered to Canadians and permanent residents, working in the same occupation and geographical area, and include reference to benefits packages being offered. The wage range must always include the prevailing wage for the position. For purposes of the Temporary Foreign Worker Program, the prevailing wage is identified as the average hourly wage for the requested occupation in the specified geographical area.

For a unionized position, the employer’s wage rate must be consistent with the wage rate established under the collective bargaining agreement.

11.1.2 Provision of Room and Board

It is not normally acceptable for an employer to offer room and board in lieu of partial wages. Wages must be paid in full, in accordance with the prevailing wage rate. There are some very rare circumstances where providing room and board could be factored in.

For example, labour market information indicates that a hotel owner provides lodging to all his/her Canadian workers and related costs are deducted from workers' wages. In these circumstances, it is acceptable that foreign workers also receive room and board in lieu of some portion of payment.

11.1.3 When Labour Market Information is not Available

There may be cases when HRSDC/Service Canada receives an application from an employer in a small town and the only labour market information (LMI) available is for a neighbouring mid-size city. It these situations, the TFWP officer looks for labour market information pertaining to the same job in another small town in the same province/territory to gain some insight as to whether wages and working conditions differ for that occupation between mid-size cities and smaller towns in the province. A lower wage rate may be appropriate for an employee in the small town given that the cost of living is generally lower.

11.2 Unpaid Work

Unpaid labour may take a number of forms, and can include arrangements such as:

Unpaid internships for students as part of their professional training.
Work completed by individuals on a volunteer basis.
Job shadowing/on-the-job opportunities taken by established professionals for the purpose of learning new skills or methods.

Unpaid labour can include positions that:

Are entirely unpaid.
Pay significantly less than expected.
Provide a stipend.

There are unpaid positions exempted from the need for a Labour Market Opinion and/or a work permit. These positions are specified in Sections 186 and 205 of the Immigration and Refugee Protection Regulations.

Positive labour market opinions (confirmation) can be issued even if there are no exemptions if it is clear that the entry of foreign workers would not have a negative impact on the labour market. Confirmations for unpaid work are generally limited to skilled positions (NOC 0, A or B). In order to determine the likely impact of unpaid labour, TFWP officers consider whether:

The position fit within their business line.
The employer would benefit most from the employment (Primary benefits should flow to the worker rather than to the employer.).
The employer would use unpaid foreign labour as a source of inexpensive or free labour, or to perform work that Canadian citizens and permanent residents may otherwise be paid to do.
The position (even though unpaid) might interest Canadians or permanent residents.
The employer tried to recruit Canadians.
The position is a standard internship for the occupation.
Professional or licensing bodies endorsed the placement.
The position was subject to a competitive process.

There may be less common situations when unpaid positions are created specifically for foreign workers and employers are not required to recruit Canadian workers. For example, an employee of a foreign government who does not qualify for the Section 186(b) or (e) exemptions of the Immigration and Refugee Protection Regulations is offered a six-month position at Parliament Hill to learn about the Canadian democratic process.

In these situations, TFWP officers work with employers to determine why positions are only appropriate for foreign workers.

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