London CHC work permit refused.....

Please can anybody help I submitted my forms for our work permits to the London CHC at the end of July the LMO for the job I had been offered in Calgary expired on the 8th august 2011. When I returned from holiday my application for my work permit had been rejected by the CHC stating that I needed to apply for a work permit for my wife (who will need to work if we get to Calgary).

So I spoke with the recruitment department at my new employers office in Calgary and they sent me a form for my wife and we re-submitted the application for our work permits which arrived at the CHC in London on the 15th august. The day before yesterday I received a letter of the CHC stating that our we have been refused and our application is now closed the following reason was given:

You have not demonstrated that you can come within the exceptions under section 186 of the regulations exempting you from the requirement to obtain a work permit or that your employment In Canada comes within the exceptions to section 203 of the regulations. As a result, your offer of employment must be the subject of and economic effect determination before a work permit can be issued to you. Your employer in Canada should contact the local office of the department of human resources and skills development canada to begin this process.

I assume that this has got something to do with the LMO? The company assured me that even though my application had been returned after the LMO expiry date that this would be ok as I originally got my application in before the 8th of august. I have since spoke to my new employer who have a lawyer looking into it. Does anybody know if this can be turned around? if the LMO for my application was valid.

It feels like our dreams are shattered at the moment I have never worked abroad before and not experienced dealing with immigration before. All I want to do is take my skills to Canada experience working out there and earn some cash! surely there has to be a easier way than getting through all this red tape