Ottawa Announces Crackdown on ‘Bad Actors’ Abusing the Temporary Foreign Worker Program
By amitverain
Ottawa, [Aug. 6, 2024] — Canadian Employment Minister Randy Boissonnault announced Tuesday a significant crackdown on fraud in Canada’s temporary foreign worker (TFW) program, targeting what he described as “bad actors” exploiting the system. However, advocates argue that the government’s measures fall short of providing real protection for migrant workers.
The TFW program, initially designed as a “last resort for employers to fill jobs for which qualified Canadians are not available,” has seen a surge in use, particularly in non-agricultural sectors like fast food and healthcare. With this increased utilization, allegations of abuse by employers have also escalated.
Boissonnault, after meeting with business groups, pledged more stringent oversight, including the potential refusal to process applications for employers in certain areas and industries. This step, aimed at preventing misuse, is part of a broader strategy to reform the TFW program, as stated by Employment and Social Development Canada (ESDC).
Rising Demand and Growing Concerns
Over the past five years, the demand for temporary foreign workers has more than doubled. In 2023 alone, employers were authorized to hire 239,646 temporary foreign workers, up from 108,988 in 2018. Critics warn that this trend allows employers to fill labor gaps with a vulnerable workforce, rather than utilizing the available Canadian labor pool.
Temporary work permits tie employees to a single employer, creating a precarious situation where workers fear job loss and potential deportation if they report abuse. Immigration Minister Marc Miller has criticized Canadian businesses for relying on cheap foreign labor, which he argues depresses wages.
Monetary penalties for businesses failing to comply with TFW program rules rose to $2.1 million in the fiscal year ending March 31, reflecting a 36 percent increase from the previous year. Despite these measures, advocates argue that the fundamental issues remain unaddressed.
Advocates Call for More Comprehensive Reforms
Chris Ramsaroop, an activist with Justicia for Migrant Workers, criticized the government’s approach, stating that without granting permanent status to workers, they remain vulnerable to exploitation. “These steps are meaningless and they’re going to be ineffective,” Ramsaroop said. “Workers are still employed under tied work permits, and this is the foundation of why workers are being abused.”
The federal government conducts inspections of employers using the TFW program, but these inspections are pre-announced. In the past year, over 2,100 inspections were conducted, resulting in penalties for nearly 200 companies, but only 12 employers were banned from the program.
Policy Adjustments and Future Considerations
In response to pressure to reduce the number of temporary residents, the federal government announced in March that it would limit the proportion of low-wage temporary foreign workers a business can hire back to 20 percent, with exceptions for the construction and healthcare sectors. The government plans to enforce this cap more rigorously, particularly in high-risk areas prone to abuse.
Boissonnault also mentioned the possibility of increasing the $1,000 fee employers must pay when applying for a Labour Market Impact Assessment (LMIA), which is required to demonstrate the need for a foreign worker to fill a job that cannot be occupied by a Canadian worker or permanent resident.
Conclusion
While the government’s announcement aims to address the misuse of the TFW program, advocates like Ramsaroop believe that without more substantial reforms, such as providing permanent status to workers, the system will continue to be plagued by abuse. “It’s not about a few bad apples,” Ramsaroop said. “The entire system is rotten to the core.”