Government unveils reforms to temporary foreign workers’ program
The federal government unveiled sweeping reforms Friday to its problem-plagued temporary foreign worker program. It wants to stop abuse by employers and give Canadians first access to jobs, even as industry groups argue the changes will sink businesses and kill Canadian jobs.
What did the government do?
The long-awaited overhaul of the program will see the government limit temporary foreign workers (TFWs) in low-wage positions; ban them in some jobs in areas of high unemployment (above six per cent); and introduce tougher penalties and monitoring.
Employment Minister Jason Kenney said the reforms are meant to make it tougher for Canadian employers to hire temporary foreign workers for their businesses, forcing them to look to Canadians first to fill jobs.
What’s the program?
The program allows businesses to bring in foreign workers on a temporary basis “as a last and limited resort” to fill jobs in areas of acute labour shortages if qualified Canadians aren t available. The program was created in 1973 to allow employers to hire specific, highly skilled foreign workers. In 2002, it was expanded to allow employers to temporarily hire foreign workers in low-skilled jobs, such as food services.
How many such workers are there?
There were 386,406 temporary foreign workers in Canada in 2013 — more than triple the 109,662 in 2003. Approximately 25,000 employers across Canada use such workers. Many are in western Canada, especially Alberta.
Why is the government making changes?
There has been a string of complaints that Canadians were losing work hours or being laid off by employers who were offering the jobs instead to foreign workers at lower wages.
In April – following a series of stories about employers, particularly restaurant owners, allegedly abusing the program – Kenney announced a moratorium on the program for the food services sector. The moratorium was lifted Friday.
Who complained?
The federal government received more than 1,000 complaints since a tip line was launched April 6.
The Royal Bank came under fire last year and ultimately apologized because it had laid off dozens of IT workers and replaced them with temporary foreign workers.
Earlier this year, three McDonald’s restaurants in Victoria were alleged to have abused the program and were banned from using foreign workers. Canadian workers at other restaurants and businesses have also said they re losing hours or being laid off because of foreign workers.
What are the main changes?
Employers are barred from applying for temporary foreign workers in the lowest-skill, lowest-wage jobs in the accommodation, food services and retail sectors in regions of high unemployment.
The government has capped the use of low-wage foreign workers at 10 per cent of the workforce per employer at each location. The caps will be phased in over three years.
The government will publicly disclose on a “blacklist” the names of employers who have been fined and the amount of the fine.
The government will increase the number and scope of inspections (one in four employers using the program will be inspected each year) and introduce stronger penalties: fines of up to $100,000, depending on the severity of the offence.
What does business say?
Dan Kelly, president of the Canadian Federation of Independent Business, called the changes “shockingly bad.” He blamed the government for making a “political move” in reaction to “union and media hysteria.” Kelly chastised the government for failing to beef up enforcement of the program when employers abused it.
Joyce Reynolds, vice-president of Restaurants Canada, said her sector — which employs 1.2 million people — will be hard hit, particularly in western Canada. “If you can’t get a foreign worker to be your short-order cook, you’re going to have to reduce your hours of service and possibly close down. That means every waiter, waitress, bartender, hostess is out of a job.”
What do foreign workers say?
An alliance of foreign workers said changes to the program amount to a “mass deportation order.” They said some temporary foreign workers will be forced to leave the country early, while others will be “locked in” with bad employers.
“Migrant workers are still employed under an indentured system where they work without voice, without rights and without protections,” said Chris Ramsaroop of the Migrant Workers Alliance for Change.
What do political parties say?
New Democrat MP Pat Martin said that while the changes acknowledge a need to improve the program, “they do far too little to fix it.”
Liberal MP John McCallum blamed the Conservatives for creating a “crisis” by expanding the program in recent years, indicating he’s not convinced the changes will solve the problem.
Related
Other changes to the program:
– Program will now be based on wages, rather than occupational classifications, with a “low-wage” job deemed one that pays below the provincial median wage;
– Application fee for a labour market impact assessment (needed to access certain TFWs) will increase to $1,000 per worker from the current $275;
– Employers applying for the labour market impact assessments must commit to no layoffs or work-hour reductions of Canadians, and must provide more information on number of Canadian applicants, Canadians interviewed and why they were not hired;
– Reduces period low-paid TFWs can stay in Canada, from the current cumulative duration of four years down to likely two years;
– Industries with proven labour shortages in certain regions will be exempted from many of the changes to the TFW program. The exempted sectors include agriculture (including the seasonal agricultural worker program) and the live-in caregiver program,
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