Employer groups criticize restrictions to TFWP in Montreal

A number of employer groups are criticizing the federal government’s decision to halt the acceptance of workers under the low-wage stream of the Temporary Foreign Worker (TFW) Program in Montreal.

The freeze will be in effect for six months starting next month, according to a previous report.

With the move, Ottawa is looking to address the issues of misuse of the TFW program. However, the change will put pressure on many businesses struggling with labour shortages, according to the Conseil du patronat du Québec (CPQ).

“The CPQ recognizes the government’s efforts to address critical shortages in key sectors such as construction, agriculture, food processing, education and social services, which will be exempt from this freeze,” said Karl Blackburn, president and CEO of the CPQ.

“However, this decision is likely to create significant challenges for many businesses that rely on the TFWP to fill many vacancies due to the lack of local labour availability, particularly in services, retail, restaurants and manufacturing.”

The processing of Labour Market Impact Assessment (LMIA) applications in Montreal will be suspended for six months, starting on Sept. 3, for job offers with wages below $27.47 per hour.

‘Worrying’ precedent to TFWP

The Chamber of Commerce of Metropolitan Montreal is “not happy with the announcement,” said its president and CEO Michel Leblanc in a report from the Montreal Gazette.

“The precedent set by the Quebec government is worrying,” Leblanc said in a press release.

He said that the group understands the government's desire to exercise control over immigration volumes, particularly the number of temporary foreign workers, which has exploded in recent years. 

But there are more things that should have been considered, he said.

“Announcing the freeze on a geographic basis does not take into account the reality of the integrated labor market in the metropolitan region. The decision to freeze not only new applications, but also permit renewals will affect qualified, well-integrated workers who meet the real needs of Montreal businesses. The companies most affected will be small businesses already struggling with liquidity, financing, procurement, recruitment and retention challenges in a still uncertain economic context. 

“In any case, the Chamber is opposed to a measure that only targets businesses on the island of Montreal.”

Overall, the number of positions approved to be filled by temporary foreign workers in 2023 stood at 239,646, more than double the 108,988 recorded in 2018, CBC previously reported, citing data from Employment and Social Development Canada (ESDC).

CFIB cites high compliance rate

The Canadian Federation of Independent Business (CFIB), meanwhile, defended the TFW program. Despite its flaws, the program seems to be working, it said, citing data from the federal government.

“ESDC's own data finds that 94% of employers who use the program are compliant with the program's new enhanced protection measures,” said Dan Kelly, CFIB president. “The costs associated with the program, which include a Labour Market Impact Assessment, recruitment, transportation and often housing and health care for the workers, are too prohibitive for employers who have other options. The TFW Program is a program of last resort.”

When it comes to wages paid to temporary foreign workers, they are paid the prevailing wage set by the government, said Kelly. 

“According to ESDC, the vast majority (85%) are paid at the same rate as Canadian workers in the same roles. Employers who use the program report that their TFWs help them stay in business (89%), retain current employees (70%) and hire more Canadians (44%). Some would close their doors, and shed Canadian workers, if it weren't for their foreign workers.”

Kelly also cautioned the federal government from penalizing employers who abide by the rules of the TFW program by implementing a temporary ban for all low-wage employers in Montreal.

“The government is in its right to adjust the program in response to evolving labour market needs, as it did in 2022 in the wake of the pandemic. However, those changes need to be considered more carefully and should not unfairly penalize the vast majority of employers who follow the rules and treat their TFWs with respect.”

Following the federal government’s announcement, CPQ has registered a lobbyist to call for enough temporary and permanent immigration to address the labour shortage in the province, reported the Investigative Journalism Foundation. CPQ also said it wants the province to remove obstacles that prevent Quebec universities from attracting foreign students, according to the report posted on MSN.

The TFW program opens workers to risks of various forms of slavery, according to a recent report from United Nations (UN) Special Rapporteur on contemporary forms of slavery Tomoya Obokata.