The Canadian music industry is in a state of turmoil after a news report revealed a change to the Conservative government’s Temporary Foreign Worker Program that could affect artists from the United States and elsewhere who tour Canada. A Change.org petition gathered 100,000 names in a matter of days. Some promoters wouldn’t talk on record, worried that all the media attention would cause border crossing guards to be extra tough.
The non-industry-specific regulation quietly put into effect on July 31 by Human Resources and Skills Development Canada (HRSDC) requires an employer to pay $275 per person to hire a worker from outside the country. The employer must first apply for and receive a positive Labour Market Opinion (LMO).
For example, if a band has four members and a tour manager, that’s $1,375 to bring in a foreign act, which is cost prohibitive for a 120-capacity venue charging $10 at the door. It could also restrict foreign acts from playing complete tours across the country because smaller-market venues double as restaurants to make a living and might not be able to afford to book them.
There are exemptions, but the headlines the story has generated doesn’t make that immediately clear. The Calgary Herald declared, “New Fees For International Touring Musicians Threaten Smaller Clubs And Live Venues Across Canada,” and Change.org’s attention-grabbing petition proclaimed, “Canadian Government: Don’t Ruin Live Music With $425 Charge Per International Artist Per Performance In Canada.”
The fee only affects musicians who aren’t members of the American Federation of Musicians (AFM) that are booked to perform at establishments that don’t derive their revenue primarily from live music; e.g., a restaurant, bar or coffee shop, such as respected music venues like the Dakota and Supermarket in Toronto or the Carleton and the Company House in Halifax.
Canadian Independent Music Assn. (CIMA) has delivered a terse letter to the Harper government explaining how the measure won’t protect Canadian artists or save jobs. CIMA president Stuart Johnston says, “Our position is this fee should be waived for all international artists and their professional entourage, regardless of where they will be performing.
“CIMA is emphasizing that the rules will have a detrimental and cascading effect through the entire industry, and at the end of the day may result in the loss of jobs and the loss of business opportunities both in Canada and internationally. Already, I am hearing from members that they are canceling tours because of these new fees.”
But Canadian Federation of Musicians executive director Liana White says, “The only change is that there is now a processing fee charged by HRSDC for the LMO process. There was always a work permit fee of $150 for a single musician or $450 for groups. This fee is paid by the musician to the border official upon entry to Canada. U.S. AFM members have never required an LMO to be filed when engaged by a non-work permit exempt venue — the AFM Canadian Office can clear its U.S. members.
“Work permit-exempt venues are entertainment venues, festivals, music conferences and awards shows,” she adds. “Also, entourages of 15-plus musicians do not require a work permit or LMO even when performing at a nonexempt venue. Work permits can be valid for up to 90 days, are good for tours and only the first engager is required to file the LMO and pay the fees to their local HRSDC office.”
Alexandra Fortier, spokesperson for minister of employment and social development/minister for multiculturalism Jason Kenney, says the fee is designed to protect Canadian jobs. She adds that the fee already existed, but Canadian taxpayers paid for it. “The problem is members of Parliament have told the minister that a lot of musicians from their communities, or musicians themselves have spoken to the minister, and said that they are sometimes not able to book themselves in those small venues because they’re replaced by American musicians.”