New measures to reduce TFW use prompt debate on the future of Canada's vital labour force solutions
In a statement by Dan Kelly, president of the Canadian Federation of Independent Business, the Temporary Foreign Worker (TFW) Program is highlighted as a vital component of Canada’s labour market, especially for small businesses.
The recent decision by the Quebec government to freeze the low-wage stream of the TFWP on the Island of Montreal for six months raises significant concerns. This move is expected to increase pressure on businesses already struggling with labour shortages.
Minister of Employment, Workforce Development and Official Languages, Randy Boissonnault, announced new measures this month aimed at “reducing the use of temporary foreign workers” in Canada.
This announcement follows months of political criticism of the TFW Program, which many argue is based on unfounded claims.
Kelly points out that Canada’s current workforce cannot fully meet the needs of vital sectors like agriculture, caregiving, skilled trades, and rural areas. These labour shortages are anticipated to worsen as the incoming generation of workers is unlikely to compensate for the retiring workforce.
Critics of the TFW Program argue that it leads to worker abuse and wage suppression for Canadian workers. However, data from Employment and Social Development Canada (ESDC) indicates that 94 percent of employers using the program comply with enhanced protection measures.
Kelly emphasizes that the costs associated with the program, including Labour Market Impact Assessments, recruitment, transportation, housing, and health care, are prohibitive, making the TFW Program a last resort for employers.
TFWs receive wages set by the government, with 85 percent earning the same as Canadian workers in similar roles, according to ESDC. Employers report that TFWs are crucial for keeping their businesses operational (89 percent), retaining current employees (70 percent), and hiring more Canadians (44 percent).
Without access to foreign workers, some businesses might face closure, resulting in job losses for Canadians.
Kelly acknowledges that the government has the right to adjust the TFW Program in response to evolving labour market needs, as it did in 2022 following the pandemic.
However, he stresses that such changes should be carefully considered to avoid unfairly penalizing the majority of employers who comply with the rules and treat their TFWs with respect.
