A job listing at a Burger King in Mississauga, Ont., which was seeking a temporary foreign worker for a restaurant manager position, has raised questions about whether the temporary foreign workers program is being used by employers to avoid offering higher wages to Canadians. The job came with an annual salary of $48,000, equivalent to just under $25 an hour, and had been open for several months without receiving qualified Canadian applicants. While there was no illegality in the posting, concerns were raised about the potential impacts on wage growth in communities if employers continue to rely on cheaper foreign labor through the program.
The Federal NDP’s labor critic, Matthew Green, criticized the use of the Temporary Foreign Worker program by industries to source cheap labor, preventing wage growth for Canadian workers. The Conservative Leader Pierre Poilievre also raised concerns about the chaos in the temporary foreign worker program, urging Canadian businesses to prioritize hiring Canadian workers first. Employment and Social Development Canada emphasized the need for employers seeking temporary foreign workers to demonstrate that they cannot find Canadians to fill the positions, with strict criteria in place for assessing LMIA applications.
The practice of listing job postings and seeking foreign workers for roles that Canadian workers may be qualified for is not uncommon, according to registered Canadian immigration consultant Manan Gupta. Gupta highlighted how employers sometimes advertise positions for the minimum period required to apply for an LMIA. Economists like Christopher Worswick have expressed concerns about the temporary foreign workers program enabling employers to rely on cheap labor, which can lead to lower wage growth and potentially abuse of immigrant workers who have limited options due to their visa constraints.
The hospitality sector, including restaurants, relies on foreign workers, with temporary foreign workers making up about 3% of the industry’s workforce in Canada, according to Max Roy of Restaurants Canada. The federal government announced restrictions to the Temporary Foreign Worker program in August, including refusing applications for low-wage workers in regions with unemployment rates above 6%, and reducing the maximum duration of employment from two years to one. Prime Minister Justin Trudeau emphasized the need for Canadian businesses to invest in training and technology instead of relying on low-cost foreign labor.
Economists like Benjamin Tal have highlighted how an overreliance on cheap labor can hinder productivity and economic growth, emphasizing the need for companies to invest in improving productivity rather than relying on low-wage workers. Suggestions have been made to reform the Temporary Foreign Worker program, including issuing open work permits to foreign workers and providing landed status upon arrival to prevent exploitation and ensure fair treatment. Restaurants Canada proposed a matching and training program to help find Canadian workers willing to work in the industry.
In conclusion, the reliance on temporary foreign workers by some Canadian employers has sparked concerns about wage growth, labor market practices, and economic productivity. Reforms to the Temporary Foreign Worker program have been proposed by politicians, economists, and industry representatives to address these issues and ensure a fair and sustainable labor market for all workers in Canada. With changes to the program already in effect, the conversation around the program’s impact on the Canadian workforce is ongoing, raising questions about the future of labor practices in the country.