Your're both wrong. I'm Canadian, and when I did my SO interview last February, everyone was given the english test. It is easy if you have spoken english your whole life. All you have to do is pretend to be a controller or a pilot and read back some clearances, making corrections if necessary.
I believe that ICAO is mandating an english comprehension test for everyone in ATC or flight decks, because there is a wide range of english skills around the world, naturally. Cathay took a proactive approach, and started giving a test to all interviewees.