Employers boost recruitment of temporary foreign workers, despite softer labour market

Of note (should decline given recent government changes):

Canadian companies ramped up their recruitment of temporary foreign workers last year, even as the labour market softened and the unemployment rate drifted higher.

During the last quarter of 2023, employers were approved to fill more than 81,000 positions through the Temporary Foreign Worker Program, according to figures shared by the federal government with The Globe and Mail. It was easily the largest quarter for approvals since Ottawa made several employer-friendly changes to the program in the spring of 2022.

For the year, employers were approved to fill roughly 240,000 job vacancies, an increase of 7.5 per cent from 2022 – and more than double what was permitted in 2018.

The federal government is now trying to clamp down on temporary migration to the country with various changes that include tighter restrictions on the TFW program. Immigration Minister Marc Miller has said that Canadian companies have become “addicted” to temporary foreign labour….

Source: Employers boost recruitment of temporary foreign workers, despite softer labour market

Connelly: Even high-wage temporary foreign workers are at risk of exploitation

Haven’t seen much written one the higher-wage Temporary Foreign Workers or the kind of anecdotes and studies that we see on agricultural and other lower-wage workers.

So the extent to which this is more theoretical (same general points apply to all TFWs), or a real issue is unclear (and Connelly doesn’t indicate that any surveys or other assessment of on-the-ground reality was undertaken which may have been included in her book):

When we think of temporary foreign workers, we usually think of agricultural workers and nannies: vulnerable workers at risk of exploitation. But not every temporary foreign worker does this kind of work. What about software engineers, accountants, and technicians? Unfortunately, they are also at risk.

Many Canadians assume that high-wage temporary foreign workers are less vulnerable because they have more resources at their disposal. But their high incomes and education levels are not enough to protect them.

Temporary foreign workers in the high-wage stream are vulnerable to exploitation because they have closed work permits. With only a few exceptions, they are only allowed to work for the company that hired them. Even when they are aware of their employment rights, they are often reluctant to do anything that they believe could jeopardize their employment, such as complaining to their boss, their HR department, or the government. Most high-wage temporary foreign workers are hoping to apply for permanent residency through a provincial nominee program, and they are concerned that any complaints will be held against them. And even though many high-wage temporary foreign workers eventually become permanent residents, they still have closed work permits while they navigate this process. And in the meantime, they may endure a lot.

High-wage temporary foreign workers are lucrative targets. Because their wages are relatively high, unscrupulous companies have a financial incentive to pay them less than their contracted wage. For example, instead of paying them the agreed-upon $30 per hour, a company may decide to only pay them only $27 per hour: a 10 per cent discrepancy. This pay cut of course violates the temporary foreign worker guidelines, which stipulate that all temporary foreign workers must be paid the agreed-upon wage for the duration of their contracts. They also must be paid at least the local median wage for their occupation.

Three dollars in wage theft may not sound like much, but it adds up. If that employee works 40 hours per week, this represents a savings to the employer of about $6,240 per year, per employee.

Because high-wage workers are so qualified, they are frequently asked to perform extra tasks that are not in their contracts. For example, they may be asked to manage a team or take on more important or complicated responsibilities with less supervision. Many temporary foreign workers are overqualified for their positions, so some companies use this as an opportunity to require them to do extra work without compensation, even though this violates the rules of the temporary foreign worker program.

Companies that have difficulty retaining Canadians because of poor management skills may turn to temporary foreign workers specifically to lower rates of staff turnover. While Canadians and foreign workers recruited through the International Mobility Program (e.g., from a country that has a free trade agreement with Canada) can quit, high-wage temporary foreign workers, who might be doing the exact same job, do not have the same options. In addition to wage theft and unrealistic performance expectations, high-wage temporary foreign workers frequently have to deal with abusive supervisors. 

The solution is to harmonize the high-wage temporary foreign worker program with the International Mobility Program to ensure that these workers all have the same rights. That is, high-wage temporary foreign workers would receive open work permits that would enable them to change employers more easily. A further advantage of open permits is that companies could then promote high-wage temporary foreign workers, or move them to where they are needed.

One could argue that open permits would be inconvenient for employers, because mistreated high-wage temporary foreign workers may quit if their work permits do not force them to stay with their employer. However, employers could adopt the same management strategies that they use to prevent their Canadian or International Mobility Program employees from quitting: careful recruitment, fair treatment, and reasonable wages.

In discussions about temporary foreign workers, those in the high-wage stream are often overlooked. There are not so many of them: only 45,867 were approved to come to Canada in 2022. But as Canadian companies address ongoing labour market challenges, more are likely to be hired. High-wage temporary foreign workers are an important part of the Canadian workforce, and they need the same protections as Canadians.

Catherine Connelly is a Canada Research Chair in organizational behaviour at the DeGroote School of Business at McMaster University, and the author of Enduring Work: Experiences with Canada’s Temporary Foreign Worker Program, published by McGill-Queen’s University Press.

Source: Even high-wage temporary foreign workers are at risk of exploitation

Temporary foreign worker program must have open work permits

A more modest proposal than permanent status for all but unlikely given some business community opposition:

If your boss asked you to pay him $1,000 in cash to keep your job, expected you to work without safety equipment or holiday pay, or told you to sleep on the floor in the apartment he was renting to you … you would probably quit. I hope you would.

But if you are a temporary foreign worker this may not feel like an option for you.

The Canadian temporary foreign worker program continues to grow, as companies grapple with labour shortages in many sectors. Last year an estimated 220,000 temporary foreign workers came to Canada and this number is likely to be even higher next year as the federal government relaxes restrictions on the program.

Will the number of abuses increase too? Probably, unless we change the way the program is administered.

The biggest problem right now is closed work permits. Temporary foreign workers must stay with the employer who hires them. If temporary foreign workers quit or are fired they can only work for a new employer who happens to have an unfilled labour market impact assessment (LMIA), or they have to return home. And because temporary foreign workers all have closed work permits, they sometimes endure working conditions that Canadian employees would walk away from.

Open work permits, in contrast, would give temporary foreign workers the same flexibility that Canadians take for granted. Open work permits would allow them to quit a job that is abusive and move to any other employer that will hire them. Interestingly, open work permits are already offered to temporary foreign workers who can demonstrate that they are being mistreated. But at that point the abuse has already happened. And many temporary foreign workers are reluctant to report abusive employers because they are (mistakenly) worried about jeopardizing their future chances to apply for permanent residency. 

Open work permits are also more flexible for employers. With one, a temporary foreign worker can be promoted easily or moved to where they are needed most within an organization, especially as they gain more experience and their skills improve. Companies’ needs change quickly, and this flexibility can be crucial in a competitive environment. Some temporary foreign workers could even work at a second part-time, short-term, or seasonal job, if they wanted.

To be sure, some advocacy groups would argue that we should immediately grant citizenship or permanent residency to all temporary foreign workers as soon as they arrive in Canada. However, the amount of bureaucracy involved would also increase dramatically, slowing down a process that is already very cumbersome. When companies are hiring workers they usually need someone immediately. Temporary foreign workers who are seeking work also need to be able to work as soon as possible.

Granting immediate permanent residency to all temporary foreign workers would also give the companies that use the temporary foreign worker program, such as slaughterhouses and fast-food restaurant chains, much greater involvement in deciding who immigrates to Canada. Most Canadians would not be comfortable with more corporate involvement in Canadian immigration decisions.

Of course, with open work permits some companies might complain that their investment — the worker they just recruited — will walk out the door. Temporary foreign workers are more expensive and time consuming to recruit than Canadians. Companies pay $1,000 just to apply for a LMIA that enables them to recruit temporary foreign workers, and they may also have to pay for the worker’s transportation or housing costs. 

However, the risk of their new worker leaving is the incentive for companies to treat their temporary foreign workers well. Companies should not choose workers just because they cannot quit. 

Every few weeks we hear about more temporary foreign workers being exploited or mistreated. The government continues to tinker with the temporary foreign worker program, so these abuses continue. Open work permits would enable these workers to walk away from bad jobs, just like any Canadian.

Catherine Connelly is a Canada Research Chair in organizational behaviour at the DeGroote School of Business at McMaster University and the author of “Enduring Work: Experiences with Canada’s Temporary Foreign Worker Program.”

Source: Temporary foreign worker program must have open work permits