The Quebec Manufacturers and Exporters (MEQ) organization feels the province's political parties should commit to raising the annual immigration thresholds to 90,000 people in Quebec to alleviate the labour shortage.
The MEQ unveiled its demands on Wednesday in view of the upcoming election campaign.
The effects of labour scarcity are not as visible in factories as they are in businesses open to all, but its consequences are very real for manufacturers, warns MEQ president and CEO Véronique Proulx.
"Oftentimes, manufacturers have to operate 24 hours a day, seven days a week," she said in an interview. "We can't stop a production line as we please or because we don't have the workers. It puts a lot, a lot of pressure on the manufacturer."
The labour shortage is hitting the sector "in full force," where there are 31,000 positions to be filled, the MEQ wrote in the document presenting its proposals. Of its members, 70 per cent say they have turned down contracts or paid penalties for delayed production due to understaffing.
The association, which represents the interests of more than 13,600 manufacturing companies, estimates that immigration thresholds should be raised to 90,000 for the next three years. The current threshold is 50,000.
"The labour market is having more difficulty bringing experienced workers and young people back into the workforce and that's where they say it's going to take more immigration," says Proulx.
The target proposed by the MEQ is higher than the figures mentioned by the Coalition Avenir Québec (CAQ) and the Quebec Liberal Party (PLQ). Minister of Labour and Employment Jean Boulet said that the target should remain around 50,000, as Quebec still had "some integration work to do," in an interview with Le Devoir last week.
In the Quebec Liberal Party (QLP), the leader, Dominique Anglade, mentioned the figure of 70,000 immigrants. In fact, Quebec is already planning to welcome close to 70,000 immigrants this year, which includes the 50,000 target, but also a catch-up for those who were unable to come to Quebec because of the pandemic in 2020. The Liberals would propose leaving the number at 70,000 in 2023, rather than reducing it to 50,000.
Proulx believes it is possible to integrate 90,000 new Quebecers into society. She points out that temporary immigrants, who already have a job, are good candidates for permanent immigration status. The government can also pay special attention to immigration from the French-speaking world, she adds.
To attract more newcomers to regions outside of Montreal, the MEQ is also suggesting a tax-free financial incentive of $10,000 for people who have settled in the area less than five years ago.
"This proposal is inspired by tax credits to attract graduates to the regions," says Proulx. "It could be an incentive for someone who is already living in Montreal who says, 'If I move to the [outside] regions, there will be costs.'"
OTHER PROPOSALS
In total, the MEQ has presented 12 electoral proposals that it hopes will be taken up by the main political parties. In addition to the labor shortage, the MEQ is making proposals to encourage innovation in the manufacturing sector and to mitigate supply chain disruptions.
Among other things, the association suggests increasing research and development (R&D) tax credits and aligning the type of eligible expenses with the federal government. It also suggests adopting non-refundable contributions for the purchase of equipment related to robotization and automation in SMEs.
MEQ would also like Quebec to enhance its coaching program for companies that need to strengthen their expertise in ESG factors. "Large companies that place greater emphasis on ESG criteria require their suppliers to demonstrate compliance with their practice. Not all companies are ready for that."
This report was first published by The Canadian Press in French on July 20, 2022.
