The political conflict over the temporary foreign worker program came to a head this past week with the announcement by Employment Minister Jason Kenney last Thursday that the government was suspending the issuance of labour market opinions related to the food services sector. Under the moratorium Employment and Social Development Canada (ESDC) will not process any new or pending labour market opinion applications for that sector. Labour market opinions, known as LMOs, are decisions by ESDC that an employer has given a genuine job offer and that hiring a foreign worker would have a neutral or positive effect on the labour market opinion in Canada.
Critics have complained about the temporary foreign worker program for years. The program is purportedly intended as a last resort for employers to find workers when they have been unable to find qualified workers in Canada. In the past decade, and particularly under the present government, the foreign worker program has greatly expanded. There are currently about 338,000 temporary foreign workers in Canada, compared with about 110,000 ten years ago.
In justifying the moratorium, Minister Kenny said it was made in response to serious allegations of abuse by employers that ESDC had been made aware of recently. It also followed the release of a report by the C.D. Howe Institute that the increase in temporary foreign workers had led to higher joblessness in B.C. and Alberta, particularly among young workers. The Minister’s response reminds me of the character Captain Renault in the movie classic, Casablanca. When asked why he was shutting down Rick’s cafe, he disingenuously exclaimed, “I'm shocked, shocked to find that gambling is going on in here!,” as a worker from the cafe’s casino hands him money.
For years Minister Kenny has been leading the efforts of the government in cultivating its name among various community groups. The temporary foreign worker program has had a significant impact on both the Filipino and South Asian communities, as they are the major source countries for temporary foreign workers. The program has been a boon for many small business owners, as well as large corporations. The critics have warned of abuses with the program for several years.
Instead of increasing wages to attract local workers for lower skilled jobs, businesses have been able to hire foreign workers, keeping wage rates lower. In the case of higher-skilled jobs, easier access to foreign workers has taken the incentive away from retraining Canadian workers to fill job positions; even though part of the LMO process involves an assessment of whether the employer has made or will make reasonable efforts to hire or train Canadians and permanent residents.
Over a year ago two local unions challenged a decision to grant LMOs to HD Mining to hire several hundred foreign miners to work at its northeast BC coal mine. The company won the case. Part of its proposal was that it would eventually train Canadian miners to do long-wall mining, a technique used only in a few mines in Canada. A year has passed and it is reported that the company has yet to start training the different technique to Canadian miners.
There are many political issues at play with the temporary foreign worker program. How much money should the government spend on retraining Canadians and permanent residents? How much should businesses be responsible for retraining and reeducation? Will Canada lose an economic competitive edge with other countries that use temporary workers? Do benefits such as employment insurance and social assistance create a disincentive for Canadians to relocate to find work? How much should the government spend to police the program, to curtail abuses? Will recent restrictions on parental sponsorship reduce the pool of potential workers for lower-skilled jobs, such as food services?
The program effects the workers coming to Canada. Should they receive a right to acquire permanent residence regardless of the skills they provide to Canada? Some economic libertarians and social activists suggest an “open border” policy, allowing the marketplace to determine who gets to stay in Canada. Would that mean no restrictions on access to social benefits?
Despite the moratorium, the temporary foreign worker program is still open to employers in other work sectors. The government is toughening enforcement, as with most other areas of immigration and citizenship. Employers will continue to seek foreign workers as long as the wage savings outweigh the added administrative costs of hiring those workers. The proposed Express Entry program starting in 2015 will make it easier for employers to acquire higher-skilled workers, but won’t help with the lower-skilled worker market. Politicians will continue to change the program, hoping to bolster their standing amongst potential voters in various communities for the next election in 2015, making it harder for some businesses to plan.
Critics have complained about the temporary foreign worker program for years. The program is purportedly intended as a last resort for employers to find workers when they have been unable to find qualified workers in Canada. In the past decade, and particularly under the present government, the foreign worker program has greatly expanded. There are currently about 338,000 temporary foreign workers in Canada, compared with about 110,000 ten years ago.
In justifying the moratorium, Minister Kenny said it was made in response to serious allegations of abuse by employers that ESDC had been made aware of recently. It also followed the release of a report by the C.D. Howe Institute that the increase in temporary foreign workers had led to higher joblessness in B.C. and Alberta, particularly among young workers. The Minister’s response reminds me of the character Captain Renault in the movie classic, Casablanca. When asked why he was shutting down Rick’s cafe, he disingenuously exclaimed, “I'm shocked, shocked to find that gambling is going on in here!,” as a worker from the cafe’s casino hands him money.
For years Minister Kenny has been leading the efforts of the government in cultivating its name among various community groups. The temporary foreign worker program has had a significant impact on both the Filipino and South Asian communities, as they are the major source countries for temporary foreign workers. The program has been a boon for many small business owners, as well as large corporations. The critics have warned of abuses with the program for several years.
Instead of increasing wages to attract local workers for lower skilled jobs, businesses have been able to hire foreign workers, keeping wage rates lower. In the case of higher-skilled jobs, easier access to foreign workers has taken the incentive away from retraining Canadian workers to fill job positions; even though part of the LMO process involves an assessment of whether the employer has made or will make reasonable efforts to hire or train Canadians and permanent residents.
Over a year ago two local unions challenged a decision to grant LMOs to HD Mining to hire several hundred foreign miners to work at its northeast BC coal mine. The company won the case. Part of its proposal was that it would eventually train Canadian miners to do long-wall mining, a technique used only in a few mines in Canada. A year has passed and it is reported that the company has yet to start training the different technique to Canadian miners.
There are many political issues at play with the temporary foreign worker program. How much money should the government spend on retraining Canadians and permanent residents? How much should businesses be responsible for retraining and reeducation? Will Canada lose an economic competitive edge with other countries that use temporary workers? Do benefits such as employment insurance and social assistance create a disincentive for Canadians to relocate to find work? How much should the government spend to police the program, to curtail abuses? Will recent restrictions on parental sponsorship reduce the pool of potential workers for lower-skilled jobs, such as food services?
The program effects the workers coming to Canada. Should they receive a right to acquire permanent residence regardless of the skills they provide to Canada? Some economic libertarians and social activists suggest an “open border” policy, allowing the marketplace to determine who gets to stay in Canada. Would that mean no restrictions on access to social benefits?
Despite the moratorium, the temporary foreign worker program is still open to employers in other work sectors. The government is toughening enforcement, as with most other areas of immigration and citizenship. Employers will continue to seek foreign workers as long as the wage savings outweigh the added administrative costs of hiring those workers. The proposed Express Entry program starting in 2015 will make it easier for employers to acquire higher-skilled workers, but won’t help with the lower-skilled worker market. Politicians will continue to change the program, hoping to bolster their standing amongst potential voters in various communities for the next election in 2015, making it harder for some businesses to plan.
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