Why is the Temporary Foreign Worker Program under government review

August 23, 2024

Naju Gadhavi

Introduction

The blog discusses how Canada’s Temporary Foreign Worker Program (TFWP) is under review because some employers have been misusing it. The government is considering making stricter rules to prevent these abuses. They’re also thinking about adding new rules for certain jobs like farming and seafood processing. The goal is to ensure that Canadian workers aren’t replaced unfairly by temporary foreign workers and to protect the rights of those workers.

This comes after the country’s Temporary Foreign Worker Program was described as a ‘breeding ground for contemporary forms of slavery’ in a report by UN investigator Tomoya Obokata, according to an article in Canada’s leading daily, The Globe and Mail.

What Does the Report Suggest from Prof. Obokata’s

“The special rapporteur retains the view that the temporary foreign worker program serves as a breeding ground for contemporary forms of slavery, as it institutionalizes asymmetries of power that favour employers and prevent workers from exercising their rights,”

Federal programs that let Canadian companies hire foreign workers temporarily have been around for decades, with many changes over time. Initially, these programs mainly served the agricultural sector to address seasonal labor needs. However, the program is now under increased scrutiny due to the significant rise in its use for low-wage workers in non-agricultural sectors. Employers are increasingly using this part of the program, leading to concerns and calls for further reforms.

On August 6th, Minister Boissonnault, representing Employment and Social Development Canada (ESDC), held a press conference where he targeted those misusing the Temporary Foreign Worker Program (TFWP). He introduced a range of new measures aimed specifically at curbing these abuses.

What were the Reforms Suggested to put a stop to the program?

• 20% Cap on Temporary Foreign Workers
  There will be a limit of 20% on the number of temporary foreign workers a company can hire. This includes workers in the “dual intent sub-stream,” who plan to apply for permanent residency. Employers must follow stricter rules if they use this sub-stream.
• Tighter LMIA Oversight 

  There will be stricter checks and inspections on Labor Market Impact Assessments (LMIA), especially in high-risk industries.

• New Foreign Labour Stream for Agriculture and Seafood Processing
  A new stream will be introduced to bring in foreign workers specifically for agriculture and seafood processing jobs.
• Possible LMIA Fee Increases 

  The fees for Labor Market Impact Assessments (LMIA) might go up to cover the costs of extra integrity checks and processing activities.

• Stricter Employer Eligibility Criteria 

  Employers might face tougher requirements to qualify for hiring temporary foreign workers. This could include needing to be in business for a minimum number of years or having a good record of avoiding layoffs.

• Restrictions on Low-Wage Stream Application 

  Applications for the low-wage stream of the Temporary Foreign Worker Program (TFWP) might be restricted or refused for employers in certain areas or industries with a history of abuse.

What rights do temporary foreign workers have, and how can they report abuse?

What is the penalties for non agreement of Temporary Foreign workers Standard ?

Employers who do not adhere to TFWP standards may face significant penalties. These can include warning letters, Administrative Monetary Penalties (AMPs) ranging from $500 to $100,000 per violation, with a maximum of $1 million annually. More severe violations might lead to temporary bans from the program lasting between 1 and 10 years, or even permanent bans

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