Company cites need for 'necessary immigration approvals… to guide our global growth'
Athleisure giant Lululemon has been allowed to hire temporary foreign workers for the expansion of its headquarters in British Columbia without seeking local labour first, according to a report.
The company said it would move its headquarters out of Vancouver, and Canada, if it was not be allowed to bypass the rule requiring employers to advertise job posts to Canadians before they are allowed to hire temporary foreign workers, according to the Business Intelligence for B.C. (BIV), citing a report from the Investigative Journalism Foundation (IJF).
Last year, the employer reached an agreement with the federal and provincial governments to do this and to have the expansion of Lululemon’s headquarters as a special investment project (SIP).
“One of the key considerations of the final decision to green light our expansion [in Vancouver] will be whether we receive the necessary immigration approvals so that we have the talent to guide our global growth,” said Lululemon in internal documents, according to the IJF.
The IJF requested the documents under freedom of information laws and this led to B.C.’s Office of the Information and Privacy Commissioner asking Lululemon to provide the IJF with the redacted records, noted BIV.
Lululemon cites need to ‘invest in top talent’
The company explained its rationale behind having the expansion be classified as an SIP in the BIV report.
“The SIP allows us to invest in top talent and promote training and career development for our employee base in Canada as we continue to grow and scale the organization for the future,” the company said.
The agreement “provides Lululemon with an opportunity to identify and employ high-skilled global talent to support our employee base in Canada,” the employer added.
The development comes as the federal government is taking further action to clean up the Temporary Foreign Worker (TFW) Program and weed out those who violate the rules of the program.
Effective Sept. 26 this year, Ottawa will refuse to process Labour Market Impact Assessments (LMIAs) in the low-wage stream in census metropolitan areas with an unemployment rate of 6% or higher.
Lululemon ‘taking every step that it needs’
Fiona Famulak, president and CEO of the B.C. Chamber of Commerce, defended Lululemon’s move.
“I don't think there should be judgment on Lululemon taking every step that it needs to take in order to have people in place to drive the business that they have,” she said, according to BIV.
“It's indicative of the steps that our businesses are having to take in order to make working in British Columbia successful.”
She said that the company’s hiring helps provide tax revenue to the government. She also noted that while companies, in some cases, could find local labour, they would have to pay higher wages if they go that path. Famulak also stressed that the province has labour shortages in many kinds of positions.
In the BIV report, Lululemon said that it has hired 116 people under its SIP agreement, adding that “the majority of skilled shortages are in design, product development, and supply chain functions.”
B.C. government ‘supports Lululemon in expanding footprint’
B.C.’s Ministry of Municipal Affairs also confirmed to BIV that it has provided 116 letters to allow Lululemon to bypass normal hiring practices for temporary foreign workers, according to the report.
“The ministry supports Lululemon in expanding their footprint across Vancouver and further diversifying their workforce,” the ministry said in the article.
“Their investment is bringing economic benefits and well-paying job opportunities to British Columbians, including the opportunity to work alongside talented professionals from around the globe.”
Commenting on the development, Aly Jiwan, CEO of Redbrick Properties, said via LinkedIn: “Capital will move to the lowest cost, most profitable jurisdiction. As it should.”
TFWP should not be incentive for companies
However, Chris Gardner, president of the Independent Contractors and Businesses Association, did not agree with what Lululemon did.
“Temporary foreign workers should not be used as a way or as an incentive for companies not to invest in training, not to invest in innovation, not to invest in technology,” he said in the BIV report.
“What the federal government needs to do is start tamping back on the floodgates that they've opened [in allowing large numbers of temporary foreign workers into the country].”
Overall, the number of positions approved to be filled by temporary foreign workers in 2023 stood at 239,646, more than double the 108,988 recorded in 2018, CBC previously reported, citing data from Employment and Social Development Canada (ESDC).
To help employers hire local talents instead of foreign workers, Gardner said that governments should be providing more incentives for employers to train workers.
