Thank you very much.
I apologize for being late, but security is security and you don't shortcut that.
My name is Robert Watson. Forty years ago this month, I graduated from Ryerson Polytechnical Institute, when it was still a polytechnical institute. I've been in the business for quite a long time and involved in a couple of industry sectors. I've been in the communications industry for most of my career. However, I had the enjoyment of running a power utility for the Province of Saskatchewan also.
I'm here to represent ITAC, a national organization that represents over 300 members made up of Canadian, Canadian-owned, and foreign-owned companies. They include large-scale companies and companies of all sizes. We are the voice of the ICT sector in Canada.
We are a unique sector in that we contribute over $70 billion to the national GDP in Canada. We generate, directly or indirectly, one million jobs in Canada and invest over $4.8 billion annually in R and D, more than any other private sector in Canada.
ICT is also broadening to encompass more traditional sectors. In fact, every industry sector in Canada has ICT involvement, and it is dramatically changing their sectors.
We would like to thank you for being here today and we want to talk about the highly skilled workers in the TFW program.
My sector faces enormous skills gaps and labour shortages. The ICTC estimates that by 2020 there will be more than 200,000 unfilled jobs in ICT. These are high-paying jobs with an average income of $71,000. These will come from the backbone of our knowledge-based economy.
Canadian colleges and universities produce great students, and ICT companies in Canada predominantly hire these young graduates. My organization is doing its part to help train Canadians to fill these jobs. We presently run two programs that have been incredibly successful. The first is called CareerMash, and it targets high school students. The program inspires students to go into ICT and helps them realize connection points between technology, health, the arts, and other disciplines. CareerMash produces inspired, well-rounded students who are ready to pursue post-secondary training in the ICT sector.
We also run a business technology management program, a BTM program, that targets post-secondary students and provides them with technology and business skills. This program has a placement rate of over 90%, and exists due to the generous contributions of the federal government and the private sector.
ICT companies in Canada are eager to hire locally, and will invest in programs such as BTM to ensure a steady supply of talent. However, despite these efforts, Canada does not produce the talent that we need. This is where we need foreign temporary workers.
To be clear, hiring foreign temporary workers in our industry is more expensive and less convenient than hiring locals, and temporary foreign workers do not take the jobs of local Canadians in our industry. They fulfill crucial gaps that will allow our companies to grow and hire more Canadians. We look to temporary foreign workers predominantly for special projects and training. For example, if there is a malfunction with an advanced 3D printer, there may only be a handful of engineers in the world capable of fixing it.
Another example is IoT, the Internet of Things. There is no 10 years' experience in Internet of Things anywhere in the world right now. If we want to get the expertise in Canada or have the expertise flow out of Canada, there has to be movement of personnel.
They also come from outside to train Canadians for particular projects, and they create new products. The ability to train and mentor, in particular, is important to Canadian ICT companies looking to scale up. They have to scale in order to be part of the worldwide....
Earlier this year one of the founders of BlackBerry, Mike Lazaridis, released a white paper called “Scaling Success: Tackling the Management Gap in Canada’s Technology Sector”. He interviewed over 125 top ICT companies to identify barriers to growth and found the lack of executive- and management-level talent was a major inhibitor to growth. Canada does not have a lot of talent at this level because we don't tend to produce large companies. One of the ways to address this gap and to help Canadian companies to scale up is to bring in foreign talent.
What I'd really like to emphasize here is temporary foreign workers, which is what my industry needs, are highly skilled and in short supply. If Canada cannot find a way to access foreign talent easier, we risk hindering the ICT sector and delaying growth and technological advancement with other sectors of the economy as well. For this reason, I'd like to make the following observations and recommendations:
Canada needs to revamp the national occupational codes. These codes provide key data about employment within our industry. Currently they are outdated and a number of discrete professions end up being pigeonholed into broader categories. This makes it harder for Canada to pinpoint vacancies within the workforce where programs should be developed, and it leads to increased rejections when companies apply for TFWs. Updating these codes, therefore, would have the dual benefit of helping to train domestic workers and facilitating short-term solutions. So, access TFWs.
I'd also like to recommend the creation of service standards for processing applications. Some of these applications take over six months for processing. In our industry we need to make decisions within days or hours. These delays can cause Canadian companies to lose clients or mandates to foreign competitors. Our industry is not overly concerned when the application fees are increased, but they'd like faster turnarounds.
ICT companies are domestically and globally very competitive. There’s a requirement that we disclose salaries publicly when we advertise the LMIA, labour market impact assessment, therefore putting off companies. It is a very competitive industry. This can be difficult for smaller companies which cannot always match the larger international salaries. This is why I'd like to recommend the exemption of ICT from having to disclose salaries in the labour market impact assessment.
The definition of “specialized knowledge” should be clarified. This phrase appears to be in international mobility and TFW programs, but there is no set definition. I recommend that we create a clear definition based on several factors: training, education, work experience, and salary. This would make the application process more predictable for companies applying.
Finally, I'd like to essentially ask for two things from this committee.
First, I'd like to recommend that Employment and Social Development Canada and Statistics Canada be more granular with their information. We need more granular information. We cannot prepare students for the workforce of tomorrow if we're not closely monitoring labour patterns. Improved foresight in this area would help universities, colleges, and private groups such as BTM and CareerMash tailor their programs, and in turn, there’d be a decreasing reliance on TFWs. We need the data to be more granular.
Second, I would like to ask this committee to consider restoring the pre-existing sectoral exemption for the ICT sector. Given the severity of our skills gap and the global competition that surrounds TFWs, this would allow industry to grow. If sectoral exemptions are not feasible, then perhaps a trusted employer program could be considered.
In conclusion, I represent interests with significant skills gaps in highly trained and highly motivated personnel. We need the government to collect more data about ICT labour markets and exempt the ICT sector from labour market analysis.
Thank you very much for your time.