Toronto, August 20, 2024 – The Temporary Foreign Worker (TFW) Program remains an important pillar of Canada’s labour market and any changes to it should be made with consideration of the needs of small businesses.
The Quebec government’s decision to freeze the low-wage stream of the TFWP on the Island of Montreal for six months is concerning. Today’s announcement will put pressure on many businesses struggling with labour shortages.
This month’s announcement by Minister of Employment, Workforce Development and Official Languages Randy Boissonnault of new measures to “reduce the use of temporary foreign workers” in Canada comes on the heels of months of political attacks on the program that are unfounded.
The reality is that Canada’s available workforce doesn’t fully meet its needs, especially in sectors like agriculture, caregiving and skilled trades, as well as in rural areas. Labour shortages in these vital sectors of the economy will only get worse as the incoming generation of workers can’t compensate for the wave of retirees we’ll see in the coming years.
Detractors of the TFW Program argue that it leads to worker abuse and wage suppression for Canadian workers. However, Employment and Social Development Canada (ESDC)’s own data finds that 94% of employers who use the program are compliant with the program’s new enhanced protection measures. 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.
TFWs are paid the prevailing wage set by the government. 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.
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.
-Dan Kelly, President, Canadian Federation of Independent Business
For media enquiries or interviews, please contact:
Dariya Baiguzhiyeva, CFIB
647-464-2814
public.affairs@cfib.ca
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small- and medium-sized businesses with 97,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
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