The rejection of an LMIA – (Labor Market Impact Assessment) by Sunwing Airlines on 9 December is blamed for a significant part of the holiday travel disruption.
During a recent meeting of the Standing Committee on Infrastructure, Communities, and, Transport one airline representative claimed they had received over 7,000 complaints seeking reimbursement and compensation.
The airline canceled 67 flights from December 15 to December 31. Manpower shortages were a major factor in this, along with unusually harsh winter weather.
Saskatchewan passengers had their Sunwing flights canceled on December 29. Sunwing applied to hire 63 pilots through the Temporary Foreign Worker Program (TFWP) in October for aircraft operations during the busy winter season. But their application was denied and they did not have enough pilots to operate from these airports, according to Unifor. It is the largest union in the private sector in Canada with over 16,000 aviation workers.
Members of the union opposed Sunwing achieving neutral or favorable results. Sunwing cannot demonstrate that they have searched exhaustively for employees who are competent or have the potential to become qualified, according to Unifor in a letter dated October 14, 2022. Unifor wrote to the director of ESDC in this regard. As a result of not looking far enough for qualified Canadian pilots, Sunwing was accused of not showing a shortage of qualified candidates able to fill the vacancies or receive the necessary training.
LMAI – What is it?
Unifor stated that Sunwing had not fulfilled the advertising requirements necessary to obtain a positive LMIA. The report highlights reasons for hiring foreign workers, steps taken to hire Canadian workers instead, and the effects on Canada’s labor force hiring foreign workers. If a Canadian or permanent resident with the necessary education, training, or experience is not available to fill the positions, the employer must prove that there are insufficient Canadians or permanent residents to fill them.
Canada’s workforce will be impacted negatively, neutrally, or positively by TFWs, based on the information presented in this document. A business can hire foreign workers if the LMIA is neutral or positive.
Reasons for LMIA rejection
Requirements of Advertisement
Based on the letter from Unifor, Sunwing did not meet the requirements for a positive LMIA due to noncompliance with advertising regulations. From October 3 to October 6, the corporation did not post any job openings in the Canada Job Bank, it claimed.
LMIAs require employers to advertise open positions on jobbank.ca for at least four weeks to ensure that all Canadians can apply. Further, they must demonstrate that they have employed at least two different recruitment strategies to reach their goals. Some businesses are completely exempt from the advertising mandate.
As per Union, there is no shortage of qualified pilots in Canada
Furthermore, Unifor alleged that Sunwing was seeking pilots through the TFWP in the wake of a fabricated labor shortage. It has not yet been possible to restore flying time for pilots to pre-pandemic levels, according to the union.
Additionally, the report said that it wasn’t likely that there was a shortage of pilots who could perform the required job duties, just that some would require additional training, which shouldn’t have been a problem.
TFWs would have received higher compensation than unionized pilots.
As stipulated by Unifor, Sunwing would have to pay TFW pilots more than Canadian pilots under their collective agreement. The advertisement they received through SmartWings said they would receive USD 1,000 in cash each month plus a set salary of USD 9,500. Even though the captains are less experienced, they receive higher salaries than the highest-paid union captains.
Employers who wish to employ the TWFP for unionized positions need to follow specific guidelines:
- The Collective Agreement stipulates the same rates for advertising and compensation.
- TFWs should receive the same terms and conditions as those offered to Canadians and permanent residents.
- Encourage companies to aggressively collaborate with union leaders to hire Canadians and legal permanent residents.
Defending its decision to hire TFWs over domestic pilots, Sunwing refuted the union’s assertions.
Len Corrado, president of Sunwing Airlines, told The Canadian Press in November that the claim made by Unifor Local 7378 that using foreign pilots is a “cheaper option” to hiring Canadian pilots is completely false.
Due to its specialization in southern destinations and reduced demand in the summer, Sunwing typically reduces service over the warmer months. The airline can hire pilots as TFWs in the lead-up to the holidays to adequately staff over the winter months.
