Canadian consumers question lululemon after apparent jobs deal

Sep 10 2024, 9:01 pm

lululemon is trending on social media, and it isn’t because it just dropped a hot new pair of yoga pants; it’s because some believe the company has dropped the ball significantly regarding Canadian jobs.

The reaction stems from a deal between the Canadian government and lululemon, which exempted the company from advertising jobs to Canadians before foreign workers.

IJF reports that lululemon actually told the Canadian government that “it might stop its Vancouver expansion” without that exemption.

“A great Canadian success story”

government of canada office building

Government of Canada office building. (JHVEPhoto/Shutterstock)

This news release, published in February of last year, shares some details about the exemption.

“lululemon can hire foreign workers without needing to apply for a labour market impact assessment (LMIA),” it reads.

According to the Government of Canada, an LMIA “is a document that an employer in Canada may need to get before hiring a foreign worker. A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job.

The language also suggests that investment projects from different companies could be considered for similar exemptions. It states, “British Columbia can identify significant investment projects for consideration for a special exemption from the LMIA process.”

Another news release published a few months later, in May 2023, seemed to celebrate the move.

“lululemon is a great Canadian success story,” said Sean Fraser, the federal minister of immigration, refugees, and citizenship.

Vancouver Mayor Ken Sim is also quoted in the news release.

“This announcement marks an exciting step forward for our city’s economic future, and we look forward to seeing the positive impact for years to come,” he said.

A press conference that aired the same day as the May news release sheds a bit more light on the communications between the Canadian government and lululemon.

At one point in the conference, François-Philippe Champagne, minister of innovation, science and industry, alludes to the idea that lululemon may not have remained in Canada without the deal.

Champagne addressed lululemon CEO Calvin McDonald, saying, “You and I texted each other quite a bit.”

He added that without the quick action of those involved in the deal, “lululemon might not have been in Canada for the future.”

“They’ve really gone to s**t”

lululemon

yllyso/Shutterstock

To say folks aren’t happy about the revelations from IJF would be an understatement.

Some have called the revelation “mind-blowing,” while others question the company’s integrity.

“Pretty disgusting all around,” said another user on X, citing the Vancouver-based company’s prices as the basis for their argument.

Even the mayor of Port Coquitlam, Brad West, had some thoughts.

Some have called on Team Canada to drop lululemon as the official sponsor. A couple of posts on X have even called for a boycott, though there doesn’t seem to be much steam behind that suggestion yet.

lululemon responds

lululemon black friday

Sorbis/Shutterstock

A lululemon spokesperson told Daily Hive that the Significant Investment Project (SIP) allows the company to invest in top talent, and it expanded on how that has played out since the deal was reached.

“Being recognized as a SIP under the Canada-British Columbia Immigration Agreement provides Lululemon with an opportunity to identify and employ high-skilled global talent to support our employee base in Canada. Upon the SIP agreement approval, we have utilized the program for 116 hires that make up 3% of our corporate office-based roles in Canada,” the company spokesperson said.

“As a key employer in BC’s apparel sector, the SIP agreement allows for the Company to continue to invest and expand in Canada and around the world.”

We’ve contacted the federal government for comment.

How do you feel about these revelations about Canadian and foreign jobs and how the government and lululemon handled the situation? Let us know in the comments.

ADVERTISEMENT