The Canadian government is contemplating a significant policy shift that could refuse temporary foreign worker (TFW) applications under the program’s low-wage stream, according to Employment and Workforce Development Minister Randy Boissonnault. This potential change, discussed during a meeting with industry associations, targets jobs paying below the median hourly wage in each province and territory.
Proposed Policy Details
- Median Wage Threshold: The policy would affect jobs below the median hourly wage, which ranges from $24 in Prince Edward Island and Nova Scotia to $39.24 in the Northwest Territories.
- Rationale: Boissonnault emphasized the need to end abuse and misuse of the TFW program, ensuring the health and safety of workers and maintaining the program’s integrity for legitimate businesses.
Industry Concerns
Representatives from various sectors, including food and beverage, transportation, and agriculture, attended the meeting. Kristina Farrell, CEO of Food and Beverage Canada, expressed concern that applying this policy to the food processing sector would cause a crisis, potentially impacting food prices.
Enforcement and Reforms
Boissonnault’s office outlined several measures to curb abuse:
- Stricter Oversight: Enhanced scrutiny in high-risk areas during the LMIA (Labour Market Impact Assessment) process.
- Increased Fees: A possible hike in LMIA application fees.
- Workforce Cap: Enforcing the rule that TFWs cannot comprise more than 20% of a company’s workforce.
Issues and Impact
- Abuse and Fraud: Reports indicate illegal fees being charged for positive LMIAs, with amounts ranging from $30,000 to $60,000.
- Sector Reliance: Agriculture remains the largest employer of TFWs, but significant increases are seen in sectors like food service and construction.
Industry Reactions
- Restaurants Canada: CEO Kelly Higginson highlighted the essential role of TFWs in tourism-dependent areas, warning that eliminating the low-wage stream could severely impact local economies.
- Support for Oversight: While supportive of stricter oversight, industry leaders stress the importance of maintaining the TFW stream in critical sectors.
TFW Program Growth
The number of approved TFW applications has surged in recent years, reaching 239,646 in 2023, more than double the 2018 figure. However, a 2019 Statistics Canada report revealed that one in ten TFWs earned less than $7,500 annually.
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