TFWP reforms a success as applications plummet, says Kenney

A remarkable change from making it too easy to engage Temporary Foreign Workers to the current restrictions, with a 75 percent drop in applications. Lesson learned by the Government on how to use incentives and disincentives:

A year ago, the Conservatives implemented a $275 fee. In June, that fee was hiked to $1,000 for each worker, an expense that essentially placed the temporary foreign worker program out of reach for many small businesses.

Some employers have complained that the new rules are too onerous and make it difficult for them to operate in areas of the country with low unemployment.

Western premiers have also raised concerns about the overhaul, saying their provinces have a pressing need for skilled labour.

Jinny Sims, the NDP’s employment and immigration critic, mocked Kenney’s defence of the overhaul, pointing to the case of 58 electricians in Saskatchewan who said they were laid off from Alliance Energy in May while the company’s temporary foreign workers were kept on.

“The rule of asking employers if they think a Canadian will lose his or her job ‘now or in the foreseeable future’ gives huge wiggle room to employers,” Sims said. “When will the government make real changes and have real penalties?”

Kenney told Sims to bring those allegations to Service Canada “or to the Canada Border Services Agency so that a formal inquiry can be launched.”

TFWP reforms a success as applications plummet, says Kenney (pay wall)

ICYMI: Canadians expose foreign worker mess in oilsands | CBCNews.ca Mobile

More controversy regarding Temporary Foreign Workers and alleged abuse of the program to the detriment of Canadians:

Alberta’s minister of jobs, skills, training and labour said cases like this need investigation but foreign workers are still needed in the oilsands.

“We shouldnt penalize a whole industry, a whole economy, a whole region because there are some unfortunate circumstances. What we need to do is to get better at investigating those complaints and providing remedy to them,” said Kyle Fawcett.

When CBC News asked the federal minister responsible if visas may be revoked in this case and he indicated its possible.

“Weve done it… We have sent people home when their presence here as temporary foreign workers was based on misrepresentation,” said Immigration Minister Chris Alexander.

Signs with phrases in foreign languages are up at the Husky Sunrise worksite to help workers communicate with each other.

“We are saying to all employers you will only have access to this program if there’s not a qualified Canadian to do the job.”

The union said, because of a grievance it filed, the latest crew of new arrivals was pared back from 70 to 20 workers.

“These are widespread concerns,” said Nuygen from CLAC. “Safety is definitely one of the top two issues. The other is temporary foreign workers getting jobs ahead of Canadians.”

Demosten said foreign workers are still being promoted, however, to higher paying, non-union foreman jobs over him and other certified Canadians.

“People who don’t speak English are our bosses. They are telling us what to do and they don’t have any idea what to do.”

Canadians expose foreign worker mess in oilsands | CBCNews.ca Mobile.

Tightening of foreign worker rules affecting supply of doctors – The Globe and Mail

A small part of the Temporary Foreign Workers program that most Canadians would not have problems with but nevertheless affected by the changed rules:

A tightening of the rules in the last three years – including the most recent overhaul, announced last month – has convinced some recruiters to give up on the TFW program altogether.

“Many, many, many recruiters that were doing this work back in 2011 have dropped off,” said Joan Mavrinac, head of the regional physician recruitment office for Essex County, which includes the border city of Windsor, Ont.

“Then, with the changes in 2013, we’ve become far fewer and now the changes in 2014, I think, are going to effectively kill the program [for doctors.]”The TFW program had been under fire for more than a year when Employment Minister Jason Kenney and Immigration Minister Chris Alexander announced sweeping reforms designed to prevent unscrupulous employers from importing low-wage foreign workers to displace Canadian employees.

The reforms include a 10-day turnaround time to process applications for highly skilled, high-wage workers, but they do not address any of the unique concerns of doctors, many of which stem from the fact MDs are generally self-employed.

Tightening of foreign worker rules affecting supply of doctors – The Globe and Mail.

Kenney to consider exemptions to temporary foreign worker plan – Macleans.ca

Kenney’s consistent messaging while suggesting some flexibility on the margins:

While Kenney attempted to strike a conciliatory note toward the provinces, he took a hard-line toward employers, whom he has criticized in the past as relying on relatively cheaper foreign workers as business model for success.

“We would encourage employers — I’m not talking about any region or industry in particular — we would encourage employers to redouble their efforts to hire and where necessary accommodate local unemployed workers,” Kenney said.

That could mean raising pay, allowing more flexible hours, investing in training or providing transport to work from hard-to-reach areas, he said.

“We think those options are all preferable than picking up the phone and calling a labour recruiter on the other side of the world and having someone fly you in from a developing country, into a region of double-digit unemployment.”

Kenney to consider exemptions to temporary foreign worker plan – Macleans.ca.

Tinkering is not Jason Kenney’s style – Yakabuski

Good piece on the political astuteness of Jason Kenney by Konrad Yakabuski:

Friday’s Federal Court ruling labelling that latter move “cruel and unusual treatment” is a decidedly unflattering one for the practising Catholic that Mr. Kenney is. But even if Ottawa is forced to reinstate health care for these claimants, their numbers are now so low that it will still save hundreds of millions annually compared to what it cost to run the refugee system before Mr. Kenney got his hands on it.

Now, Mr. Kenney’s paws are all over the TFW program. Whether his reforms turn out to be good policy will depend on whether the market works, specifically whether more Canadians migrate to Alberta to fill what are supposed to become good-paying fast-food jobs. That’s a leap of faith not even the supposedly free-market business lobby is willing to make.

But you know Mr. Kenney is on the right track when Justin Trudeau, who railed against the pre-reform TFW program and whose father created the national energy program, confusingly calls the latest overhaul “one of the most anti-Alberta federal policies we’ve seen in decades.”

If that’s all the opposition’s got, the Smiling Buddha should be laughing.

Tinkering is not Jason Kenney’s style – The Globe and Mail.

Manitoba’s foreign worker strategy called a model for other provinces – The Globe and Mail

The model for curbing abuse:

Manitoba’s system centres on the Worker Recruitment and Protection Act WRAPA, passed in 2009. Its most important component is also its most basic: Unlike most provinces, Manitoba knows where its temporary foreign workers are working. Businesses must register with the province to get a work permit for a TFW. That allows inspectors to check on their working conditions to make sure they meet employment standards and health and safety rules. It also allows the province to block anyone who breaks those rules from bringing in more workers. Advocates for TFWs complained for years that the system was open to exploitation, because a migrant worker’s right to be in Canada depends on a good relationship with the employer. As a result, TFWs are said to be less likely to complain of unfair treatment or unsafe working conditions.

“We know where the workers are and we put resources into going out and making sure those workers are being treated appropriately,” Mr. Short said. “We focus on the most vulnerable workers in Manitoba. That includes workers earning near the minimum wage, recent immigrants, young workers and temporary foreign workers.”

The legislation is a favourite among public-policy analysts. Reports for the Institute for Research on Public Policy, the Canadian Centre for Policy Alternatives and the Canadian Council for Refugees have all hailed it as the best of its kind in the country.

Manitoba’s foreign worker strategy called a model for other provinces – The Globe and Mail.

Commentary on Temporary Foreign Workers

A range of commentary on Temporary Foreign Workers, starting with Mathew Mendelsohn and Ratna Omidvar four recommendations:

Before a temporary foreign worker can be brought to Canada, make it a requirement for the federal government to consult with provincial employment agencies like Employment Ontario or WorkBC as part of the federally mandated Labour Market Opinions that must be conducted to ensure that there are no Canadians who can fill the job. Employers may be able to find the workers they need right here in Canada….

Second, provincial employment agencies could think of themselves more explicitly as fulfilling an HR function for small and medium-sized enterprises. These agencies often know exactly who is looking for work in their communities and which skills they possess, while many SMEs have no expertise or department to help them hire strategically….

Third, employers, governments, and agencies should work together to develop locally based labour market information. Many groups, like the Toronto Financial Services Alliance, already do so for their own sector. If these existing efforts are combined, the quality of information could be improved. Such local efforts should not replace the need for the federal government to improve its national data collection and dissemination efforts.

Fourth, the way we describe the skills needed for particular positions should become simpler and more easily understood. We desperately need common language that employers, governments and agencies agree on to describe the skills required for particular jobs.

Four changes to the TFW program that would help Canadian businesses

Leslie Seidle’s reminder of the provincial role in reducing abuse:

To improve the situation of temporary foreign workers during their term of employment in Canada, provincial governments need to bolster the federal overhaul by more proactively enforcing health and labour standards. They have primary responsibility in these domains, not the federal government. Here the record is uneven, as demonstrated by a recent “report card” exercise carried out by the Canadian Council for Refugees CCR.

Provinces also need to combat foreign worker abuses.

And lastly, a left-wing perspective from David Macdonald of the Canadian Centre for Policy Alternatives:

So as a progressive, what’s to be done? Cancel the program and deport every single temporary foreign worker?

I believe there is a middle ground. Let’s cancel the TFW program, but before we do that, let’s offer all temporary foreign workers an expedited process towards permanent residency, if they want it. In the meantime, TFWs should be given a choice to stay at their present employer or find a new one if they wish.

(Live-in caregivers, one of the TFW categories, already have the right to apply for permanent residency. Although, there is discussion that this right should be removed as it might back up the immigration system).

Interestingly, it is a union that spearheaded this approach on a small-scale. The Canadian government should expand it on a large-scale. If you were an employer who treated their foreign workers fairly, then good for you as those folks will likely stick with you.

However, if you’re an employer who used the threat of deportation to deny foreign workers basic rights and fair pay, then welcome to the Canadian labour market where if you treat people badly … they quit because they can…without deportation.

Temporary Foreign workers: a progressive solution

 

Scrapping TFW program for low-wage jobs will be on the table in 2016, Kenney says – The Globe and Mail

More public comment and foreshadowing by Jason Kenney on the Temporary Foreign Workers program and live-in caregivers:

But in a meeting with The Globe and Mail’s editorial board Tuesday, Mr. Kenney insists the warnings from business leaders are exaggerated. He also indicated the government could soon go much further.

Through a phase-in of new caps on low-wage foreign workers and the launch of more detailed labour market surveys, Mr. Kenney indicated that the government will be in a position by 2016 to assess whether it should take the next step.

“At that point [in 2016], I think the government can do a reassessment and look at whether it would be desirable to go to zero right across the country,” Mr. Kenney said. “So I’m saying quite publicly that we’re leaving our options open. There will be great resistance to that.

”The overhaul of the program has been called an “appalling overreaction” by business groups and has the Conservatives suddenly playing defence in the Western stronghold of Alberta, where the changes are expected to hit hard….

As far back as 2009 when he was immigration minister, Mr. Kenney said he recalls meeting in Manila with 70 women who were on their way to Canada via the program and every single one of them planned to work for a relative.

“The biggest problem I see in it is that … to a great deal, it has mutated into an extended family reunification program, which was not its intent,” Mr. Kenney said Tuesday. “As best we can tell, a majority of the entrants in that program were actually coming to work for relatives – for family members.”

The fact that the caregiver program allows workers to apply for permanent residency for themselves and their family has “clogged” up the immigration system, said Mr. Kenney. The minister would not speculate on whether the government is considering the elimination of this benefit.

Scrapping TFW program for low-wage jobs will be on the table in 2016, Kenney says – The Globe and Mail.

Tom Walkom’s commentary in the Star aims at Temporary Foreign Workers covered under free trade agreements like NAFTA and CETA, forgetting to mention that these agreements also provide equivalent access to Canadian workers in the  US and other countries we have these agreements with:

But regardless of the judge’s ultimate decision, the B.C. case points to a fatal flaw in Kenney’s much-publicized get-tough policy:

In the end, he and the rest of Stephen Harper’s government aren’t serious about protecting Canadian jobs and wages.

As one government program designed to undercut domestic wages ratchets down, another is already gearing up.

True, Ottawa understands the politics around jobs. In response to a scandal last year in which the ICT program was used to outsource highly paid information technology jobs from Canada, the government tightened its definition of “specialized knowledge.”

Yet tellingly, this tighter definition doesn’t apply to workers from countries that have free trade agreements with Canada — such as the U.S. and Mexico.

The temporary foreign workers program may have been hobbled. But the war against good wages continues.

How Canada lets employers avoid temporary foreign worker reforms: Walkom

On the other side, Dan DeVoretz tries to defend the Temporary Foreign Workers Program for the food and hospitality industries:

How are economic benefits generated by the unnecessarily maligned hospitality and restaurant TFWs? These benefits arrive in two forms. First, the vast majority 70 per cent circa early 2014 of these TFWs reside in Alberta, where the restaurant and accommodation sector have the largest and fastest growing job vacancy rate of any industry in Canada. The province’s labour market is characterized by high wages and low unemployment. Unless unemployed workers migrated from the rest of Canada to work for minimum wage in Alberta’s hospitality and restaurant sector, many of Alberta’s existing hotels and restaurants would not be in business. Since low-priced restaurants provide a benefit to Albertans the loss of these restaurants would deprive Albertans of an important economic benefit.

Does not pass the common sense test unlike for agricultural workers. And, surprising for an economist, increasing supply by increasing wages (classic theory) ignored.

New foreign-worker rules a solution in search of a problem – The Globe and Mail.

Ottawa’s foreign workers decision hogs spotlight in Western Canada

From “There are tens of thousands of employers who tell me that they would go out of business if they couldn’t find people to fill those jobs” to “I can’t count the number of people who tell me their kids can’t get jobs in the fast-food industry.”

Along with a shift to data and evidence-based policy by Jason Kenney:

But federal Employment Minister Jason Kenney insisted in an interview that the program had caused serious “distortions” in the labour market, and Albertans, like most Canadians, understand that. The reforms are based on data and evidence, not on “special-interest politics,” he said.

“There are some political actors in Alberta who are more attuned to a few thousand beneficiaries of this program than to the broader public,” Mr. Kenney said in phone interview from Calgary. “Everywhere I go people are thanking me for the changes, unprompted. Most people here believe the program grew beyond its original intent and caused distortions in the labour market. … I can’t count the number of people who tell me their kids can’t get jobs in the fast-food industry.”

The changes are expected to hit hard in Alberta’s fast-food industry, where employers complain they can’t find Canadians to work because of tight labour markets.

The government is showing a rare populist streak with its about-face on the foreign worker issue, baffling traditional allies in the business community.

Ottawa’s foreign workers decision hogs spotlight in Western Canada – The Globe and Mail.

Internal memo reveals Ottawa cut labour market data spending

More indications of the botched up Temporary Foreign Workers program, linked to bad labour market data, cutbacks and overall approach to evidence-based policy making:

“Things are getting done in the opposite direction,” said economist Don Drummond, who will release a paper Wednesday for the Institute for Research on Public Policy calling on Ottawa to tackle Canada’s long-standing labour market data problems. “Normally you create an information infrastructure and that informs the policy. But here we’ve had dramatic changes in policy with the temporary foreign worker program and the Canada Job Grant, while we’re undermining the lousy information infrastructure we already had.”

Mr. Drummond chaired a 2009 panel on labour market information and says many of the panel’s recommendations have not yet been fully implemented.

A spokesperson for Mr. Kenney said the minister has repeatedly noted the need for better labour market information in Canada and is looking for ways to achieve this. Meanwhile, a spokesperson for Employment and Social Development Canada explained the spending reduction by stating that the department has modernized its data portfolio in a “tighter fiscal environment,” in part by stopping low-priority surveys to fund higher-priority research.

The recent debate over labour data has focused in part on the government’s decision to reduce funding for Statistics Canada, which gathers labour data through phone surveys of employers, while relying more on private-sector data based on scans of Internet job boards.

Internal memo reveals Ottawa cut labour market data spending – The Globe and Mail.

Update:

The Government announced that it would restore funding to StatsCan to improve labour market information:

“The government will be launching two significant, robust, new labour market information studies,” Mr. Kenney told the House of Commons Wednesday. “Of them, one will be a quarterly study on job vacancies and the other a robust annual survey on wage rates, just as experts have asked us to do.”

Sources say the new $14-million would largely reverse the 20 per cent cut by 2015-16, returning the department’s annual spending on labour market information to more than $80-million.

Ottawa increases funding for labour-market surveys