Government tackles 'addiction' to foreign labour
Canada is exploring new regulations that could reduce the number of employers eligible to hire temporary foreign workers, said Employment Minister Randy Boissonnault.
The federal government is taking steps to limit the use of the temporary foreign worker program after a significant expansion led to allegations of fraud and exploitation.
During a meeting with business groups, Boissonnault emphasized the need for stricter oversight, particularly in “high-risk” sectors. He is also contemplating banning certain industries from hiring foreign workers for low-wage jobs.
“Bad actors are taking advantage of people and compromising the program for legitimate businesses. We are putting more reforms in place to stop misuse and fraud from entering the temporary foreign worker program,” Boissonnault said in a statement.
In response to labour shortages in 2022, Prime Minister Justin Trudeau’s administration expanded the program, allowing companies to hire more temporary foreign workers. The changes increased the proportion of foreign staff to 20% for most firms, with a 30% limit for the construction and healthcare sectors.
However, the rapid growth of the program has drawn criticism. The unemployment rate in Canada has risen to 6.4%, higher than pre-pandemic levels, with youth unemployment reaching 13.5%.
Boissonnault, along with Immigration Minister Marc Miller, began tightening the program earlier this year.
While Miller has pledged to cap the number of temporary residents, including students, the government has not reduced the 20% hiring cap. Instead, it plans to enforce its “consistent application” and increase oversight in areas prone to abuse.
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Boissonnault also proposed increasing the $1,000 fee employers must pay when applying to hire foreign workers and imposing stricter eligibility criteria, such as a minimum number of years in operation.
The minister said the program is designed as an “extraordinary measure” when no qualified Canadian workers are available.
Miller criticized Canadian businesses for relying heavily on cheap foreign labour, arguing that the program contributes to wage suppression. Critics have also pointed out that the system can foster exploitation, as temporary work permits tie employees to a single employer, making it difficult for them to change jobs if they face abuse.
Christina Santini, director of national affairs at the Canadian Federation of Independent Business, noted that the brief virtual meeting did not allow business groups to respond.
“It all comes down to the details because it could be making it difficult for some small business owners with real needs, who really haven’t been able to identify labour,” Santini said.
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