The Canadian Federation of Independent Business (CFIB) has expressed concerns over the recent decision to freeze the low-wage stream of the Temporary Foreign Worker (TFW) Program on the Island of Montreal for six months.
The move, announced on August 20, is seen as potentially exacerbating the labour shortages that small businesses across the province are already facing, it said.
Dan Kelly, President of CFIB, noted that the TFW Program remains a crucial component of Canada’s labour market, particularly in sectors such as agriculture, caregiving, and skilled trades, as well as in rural areas where labour shortages are most acute.
“Any changes to the program should be made with careful consideration of the needs of small businesses,” Kelly said.
The freeze on the low-wage stream follows a broader set of measures introduced by Minister of Employment, Workforce Development and Official Languages Randy Boissonnault earlier this month. These measures, which aim to reduce reliance on temporary foreign workers in Canada, have sparked a debate over the future of the TFW Program.
Critics of the program argue that it leads to the exploitation of foreign workers and wage suppression for Canadian employees. However, Kelly countered these claims, pointing to data from Employment and Social Development Canada (ESDC) showing that 94% of employers using the program comply with its enhanced protection measures. He also emphasized that the costs associated with the program, such as Labour Market Impact Assessments, recruitment, and worker support, make it a last resort for many businesses.
“TFWs are paid the prevailing wage set by the government, with the vast majority receiving the same rate as Canadian workers in similar roles,” Kelly said. According to ESDC, 85% of TFWs receive equivalent pay to their Canadian counterparts. Furthermore, CFIB reports that 89% of businesses using the program say it helps them stay operational, while 70% believe it helps retain current employees, and 44% state it allows them to hire more Canadians.
Kelly acknowledged the government’s right to adjust the TFW Program in response to changing labour market conditions but urged that such changes should not unfairly penalize compliant employers who rely on the program to fill critical roles.