Canada Temporary Foreign Worker Program Requires Reform, Says Immigration Minister
The Canada Temporary Foreign Worker Program has played an integral role in the national labour market by filling sectoral gaps due to a lack of workers. Recent criticism and a damning report by the United Nations have raised debate on whether or not it needs sweeping reforms. Canada’s Immigration Minister, Marc Miller, acknowledged that while the program itself is not intrinsically flawed, it is “in need of reform” over a raft of issues, including exploitation of workers and suppression of wages.
Understanding the Canada Temporary Foreign Worker Program
The TFWP allows Canadian employers to hire foreign non-Canadian workers in order to complement labour shortages in industry sectors. For many years, this program has grown dramatically, especially in its low-wage stream.The figure soared from 15,817 workers in 2016 to 83,654 in 2023. This huge growth raises concerns about the potential for abuse and lowering of wages for both foreign and domestic workers.
The UN Report and its Consequences
A recent report by the United Nations Special Rapporteur on contemporary forms of slavery branded Canada’s TFWP as a “breeding ground for modern slavery.” Among the most startling problems raised in this report were wage theft, underpayment, and physical, emotional, and verbal abuse. Healthcare was also added to the long list of challenges that temporary foreign workers have difficulty accessing.
The report stirs up debate on the ethical dimensions of TFWP, with some demanding a call for its total reforms. Labour Minister Randy Boissonnault is reportedly toying with stricter measures to address the misuse of the program in the low-wage stream.
The Economic Impact of the Low-Wage Stream
Many economists argue, and Mike Moffatt has strongly opined, that this low-wage TFWP stream is actually designed to hold down wages. Moffatt wants this stream to completely go, and this is damaging to the labour market because the program creates an artificial supply of low-cost labour, depressing wages for all workers.
It has further been criticised for establishing a class of workers who are so vulnerable to exploitation yet contribute to the economy. This stream was initially expanded to allow more employers to hire temporary foreign workers in low-wage occupations, even in areas with higher unemployment rates. However, this expansion has had unintended consequences, including increased worker exploitation.
Pathway to Permanent Residency: A Potential Solution
Probably the most important recommendation of the UN report was to provide temporary foreign workers with a clear process for permanent residency. It indicated that the offer of permanent residency can, to some extent, offset the structural precarity implicated in making temporary foreign workers vulnerable to exploitation. It justifies this recommendation with the wider purpose of integrating foreign workers into Canadian society and treating them with dignity and respect.
The Need for Balanced Reform
In line with the obvious need for reform, there is a need for balance that will address the concerns of both workers and employers. Against the background of his sentiments, Minister Miller cautioned that all employers should not be painted from the same brush of modern-day slavery, as a majority do treat their workers fairly and with respect. He, however, conceded that there were abuses that had to be corrected within the program.
This would further complicate Canada’s goal of reducing the growing number of its temporary residents as it is mired in a deepening housing crisis with rising anti-immigrant sentiments. The plan to reduce temporary immigration would do nothing to solve the issues indicated in the report from the UN. A comprehensive approach with tougher regulations, better oversight, and a clear path to permanent residency reforming the TFWP is greatly needed.
Conclusion
Canada’s Temporary Foreign Worker Program has been crucial in underpinning the country’s labour market; yet, it is a program that, with growing evidence, urgently needs reform. Going forward, therefore, this will need to be evidence that contemplation of the issues of worker exploitation, wage suppression, and access to permanent residency is done with balance—a view to the need for the protection of workers butted up against the need to support job creators. Fair treatment of and integration with temporary foreign workers could therefore be seen as strong reasons why both should be prime subjects as Canada progresses with immigration policies for the future.
