During the course of the study, we had the opportunity to hear from employers, temporary foreign workers and various organizations about the impact that certain aspects of the TFW Program, along with recent reforms, have had on them. We heard, for example, about labour shortages across different sectors of the Canadian economy, including the high-tech, hospitality, seafood, meat processing as well as the agriculture and agri-food industries, despite significant efforts to recruit and retain Canadians first. We also listened attentively to the stories of temporary foreign workers themselves who told us how various program-related factors are contributing to abuse and to perpetuate their precarious position within Canadian society. Finally, we were able to consider the views of various labour and youth organizations about the importance of remaining vigilant, and considering innovative ways, to ensure businesses use the program to satisfy truly “temporary” labour needs and do not become too reliant on temporary foreign labour at the expense of Canadians and permanent residents.

Having considered the testimony before us, the Committee finds that there are specific areas of concern that need to be addressed to better ensure the TFW Program functions in an effective manner that is not only responsive to labour market needs but that also fully respects the fundamental rights of those who use it.

A. Labour Market Impact Assessment Application fee

Witnesses were consistent in their view that the substantial increase in the non-refundable LMIA application fee has had an impact on their ability to employ temporary foreign labour, with some witnesses describing the current fee as “prohibitive”. The Committee heard that the fee increase has made it more difficult for certain businesses, in particular small businesses, to remain competitive. The Committee also heard that, for families needing to hire caregivers to care for their children, seniors and disabled relatives, the increase in the LMIA application fee has been financially burdensome. The Committee acknowledges that, while the increase in the LMIA application fee was intended to help cover the cost of delivering the TFW Program as reformed, it has as also resulted in particular challenges for businesses and families. Accordingly, the Committee recommends as follows:

RECOMMENDATION 1

That Employment and Social Development Canada and Immigration, Refugees and Citizenship Canada take immediate steps to extend work permits for caregivers in the low-wage stream from one to two years.

B. Processing and timelines regarding Labour Market Impact Assessment applications

Witnesses appearing before this Committee agreed that there is a need to streamline and standardize the LMIA application process to better serve applicants. In particular, the Committee heard that the length of time it takes ESDC/Service Canada to process LMIA applications affects companies’ productivity and ability to generate revenue, and has an impact on the temporary foreign workers themselves whose work permit renewals are dependent upon a positive LMIA. Witnesses appearing before the Committee offered a number of suggestions to prevent duplication of information and increase the timeliness of processing applications, including implementing measures to increase coordination between ESDC/Service Canada and IRCC officials, as well as hiring more program officers in local regions. The Committee recognizes these concerns and therefore recommends as follows:

RECOMMENDATION 2

That Employment and Social Development Canada review the Labour Market Impact Assessment application process, with a view to increasing speed and efficiency; and that such a review take into consideration the National Occupation Codes as well as the adequate allocation of resources towards training and meeting service standards.

RECOMMENDATION 3

That Employment and Social Development Canada implement a Trusted Employer Program with the objective of reducing Labour Market Impact Assessment processing timelines for employers who have demonstrated trustworthiness in their use of the Temporary Foreign Worker Program.

RECOMMENDATION 4

That Employment and Social Development Canada review the policy with respect to foreign faculty members currently employed or seeking employment with a recognized Canadian academic institution, whose employment is currently dependent upon a Labour Market Impact Assessment, with a view to providing exemptions or accommodations for this class of foreign nationals.

RECOMMENDATION 5

That the Temporary Foreign Worker Program permit minor modifications to contracts between employers and employees with regards to the nature of the work and increases in wages if both parties consent, the changes do not disadvantage the worker, and Employment and Social Development Canada is adequately informed of any changes in short order. The changes must not violate the spirit of the job description.

C. Temporary Foreign Worker Program streams

Currently, the TFW Program comprises various streams, each with its own specific requirements to which employers must adhere. Witnesses appearing before the Committee suggested that the current way in which the TFW Program is structured needs to be reformed as current stream-specific requirements do not fully address the individual needs of various industries. For example, the seafood industry would like to be included under the primary agriculture stream as it currently is part of the Canadian Agriculture and Agri-Food Workforce Action Plan, while the hospitality industry would like a Seasonal Lodging Worker Program that recognizes the seasonality of this industry. The Committee acknowledges that the current program streams may not fully reflect Canadian labour market needs and recommends as follows:

RECOMMENDATION 6

That Employment and Social Development Canada appropriately restructure the Temporary Foreign Worker Program such that it achieves better overall economic and social benefit for Canadians and program participants. That Employment and Social Development Canada re-establish the Temporary Foreign Worker Program into more specific program areas and streams that adequately reflect the realities of labour market needs in Canada.

RECOMMENDATION 7

That Immigration, Refugees and Citizenship Canada study the impacts of expanding the definition of primary agriculture as found in the Immigration and Refugee Protection Regulations.

RECOMMENDATION 8

That Employment and Social Development Canada and Immigration, Refugees and Citizenship Canada seek to review and improve mechanisms in which migrant workers are brought into Canada to fill both temporary and permanent positions, preventing the use of the Temporary Foreign Worker Program to satisfy permanent labour needs.

D. Transition Plans

The majority of witnesses who appeared before the Committee to talk about the high-wage stream shared the view that the requirement for a Transition Plan may not be realistic when there is a proven labour shortage of high-skilled workers that cannot be addressed domestically in the short-term. The Committee acknowledges that some witnesses have suggested abolishing the requirement for a Transition Plan altogether, while others have recommended that, should it be kept in place, they be allowed to submit either a company-wide or an industry-wide Transition Plan on a yearly basis in order to ease the administrative burden. The Committee notes the concerns of witnesses that it may not always be feasible to transition to a Canadian workforce as training can take several years to prepare individuals to fill the labour gap and therefore recommends as follows:

RECOMMENDATION 9

That Employment and Social Development Canada provide an exemption on the Transition Plan requirement for 5% of the business’ workforce that consists of high-wage temporary foreign workers.

RECOMMENDATION 10

That Employment and Social Development Canada work to implement measures to ensure appropriate training and education resources are allocated in those fields most likely to present labour and skills shortages. Also, that appropriate apprenticeship targets be included as a requirement of the Transition Plan for employers to ensure they meet their recruitment and training obligations for Canadians.

RECOMMENDATION 11

That Employment and Social Development Canada, businesses, and stakeholders continue to monitor labour market needs as to ensure skills, training, and educational output match Canada’s current and future employment needs such that our reliance on foreign labour diminishes, and invest in better collection and retention of labour market information in Canada to adequately assess labour market needs.

E. Cap on the proportion of the workforce that consists of low-wage temporary foreign workers

During the course of the study, witnesses from various sectors of the Canadian economy indicated that the introduction of a cap on the proportion of their workforce that consists of low-wage temporary foreign workers has negatively affected their production levels and, as a result, hindered their ability to capitalize on recent trade opportunities. Several witnesses reported challenges with respect to finding enough Canadians to fill available positions, and recommended that some industry-specific exemptions be contemplated. The Committee recommends as follows:

RECOMMENDATION 12

That Employment and Social Development Canada ensure the cap on the percentage of temporary foreign workers a business can employ at a given time, be set at a minimum of 20%, and further review sector and geographic considerations.  

F. Certain low-wage positions in the Accommodation, Food Services and Retail Trade sectors

LMIAs with respect to certain low-wage positions in regions with a 6% or higher unemployment rate will not be processed. However, witnesses told the Committee that available labour market data is very high-level and not suited to determining labour market conditions in smaller communities situated within the broader geographic region. For example, smaller communities like Whistler, despite their lower unemployment rates, are grouped under larger regions where the unemployment rate is 6% or higher. Several witnesses suggested that it would be more accurate to disaggregate unemployment data so as not to unfairly penalize communities. The Committee agrees that there needs to be a review of the geographic zones to better determine which regions have a high unemployment rate. Therefore, the Committee recommends as follows:

RECOMMENDATION 13

That Employment and Social Development Canada take immediate steps to improve the collection of labour market data and review the geographic zones used for determining unemployment rates, with a view to aligning the labour market conditions of more localized economies with the requirements of the Temporary Foreign Worker Program.

G. Employer-specific work permits

Temporary foreign workers employed in the low-wage stream and the SAWP, along with their advocates, were consistent in their view that employer-specific work permits tying workers to one employer lead to a power imbalance that is conducive to abuse. The Committee acknowledges that employer-specific work permits can place migrant workers in a vulnerable position with negative implications for their physical and mental well-being. In order to reduce the possibility of abuse due to the employer-specific work permit, the Committee recommends as follows:

RECOMMENDATION 14

That Employment and Social Development Canada take immediate steps to eliminate the requirement for an employer-specific work permit; provided that it implement appropriate measures to ensure temporary foreign labour is only utilized within the existing provisions of the Labour Market Impact Assessment process, including sector and geographic restrictions.

RECOMMENDATION 15

That Immigration, Refugees and Citizenship Canada provide multiple entry work visas for temporary foreign workers employed in seasonal work, with the objective of allowing these individuals greater mobility during off-seasons; that when a work visa is extended, the multiple entry visa must also be extended so workers can continue to enter and leave Canada.

H. Seasonal Agricultural Worker Program

Agricultural organizations appearing before the Committee spoke positively about the SAWP, noting that the program offers several cultural and financial benefits and is important in helping to fill labour gaps in the agriculture and agri-food industry, despite significant recruitment and retention efforts. In contrast, advocacy groups and witnesses such as Ms. Barrett and Mr. Allahdua expressed serious concerns that certain aspects of the program can place migrant workers in a vulnerable position. Specifically, they highlighted how employers have the discretionary power to send injured workers back to their countries of origin, and how the short duration of the program deems them ineligible to receive Employment Insurance benefits. The Committee recognizes that, coupled with its duration, certain SAWP related aspects are having a negative impact on temporary foreign workers.

I. Pathways to permanent residency for all migrant workers

Under the TFW program, the “cumulative duration” rule makes workers ineligible for new work permits if they have been working in Canada for four years and bans them from applying for a new one for an additional four years. The Committee heard that these are often individuals who have already integrated into Canadian society, filling a permanent labour need, and who have established roots in their adopted communities. As a result of the “cumulative duration” rule, temporary foreign workers whose work permits have expired have had to leave the country before being able to secure permanent residency status.

Witnesses were consistent in their view that the “cumulative duration” rule, along with certain aspects of the Express Entry system and the cap placed on the number of permanent residency applications from caregivers allowed in a year, constitute significant barriers to permanent residency for temporary foreign workers. The Committee acknowledges that all migrant workers, especially those that are filling long-term labour needs and are fully integrated into Canadian society, should enjoy greater pathways to permanent residency. Therefore, the Committee recommends as follows:

RECOMMENDATION 16

That Immigration, Refugees and Citizenship Canada review the current pathways to permanent residency for all temporary foreign workers, with a view to facilitating access to permanent residency for migrant workers who have integrated into Canadian society and are filling a permanent labour market need.

That Immigration, Refugees and Citizenship Canada allocate adequate resources to allow for the timely processing of permanent residency applications for those migrant workers that are hired under the Temporary Foreign Worker Program.

RECOMMENDATION 17

That Immigration, Refugees and Citizenship Canada work with provinces, territories and other government departments to increase information sharing that will create more harmonization with immigration and nominee programs to function in collaboration with one another. That these efforts aim to reduce duplication of work benefiting both the government and applicants.

RECOMMENDATION 18

That Immigration, Refugees and Citizenship Canada amend the Immigration and Refugee Protection Regulations to remove the relevant provisions with respect to the “cumulative duration” rule.

RECOMMENDATION 19

That Immigration, Refugees and Citizenship Canada reform the Express Entry program to allow for fixed-term employment contracts to be allocated the same number of points as permanent work contracts, where there is a strong likelihood of continued employment.

J. Monitoring and enforcement

Recent reforms to the TFW Program introduced a confidential tip line to report abuse, more frequent inspections, as well as heftier fines and penalties for employers who violate program rules. Witnesses agreed that the current compliance regime is not as effective as originally intended and that, as a result, migrant workers continue to suffer from labour standards violations at the hands of their recruiters and employers alike. In particular, the Committee heard that migrant workers are reluctant to, or simply do not, use the tip line to report abuses for fear of losing their jobs and being asked to leave the country. The Committee also heard that recruiters continue to charge migrant workers such as caregivers, and to misrepresent the existence of an employer in Canada. The Committee recognizes that there are monitoring and enforcement gaps in this regard that need to be addressed to ensure the protection of migrant workers’ rights. Therefore, the Committee recommends as follows:

RECOMMENDATION 20

That Employment and Social Development Canada, in collaboration with relevant stakeholders, review current monitoring and enforcement mechanisms, with the objective of addressing gaps in employer compliance and the protection of migrant workers’ rights. In addition, an effort shall be made to move away from a complaint-driven model of program enforcement. The review shall take into consideration the following specific measures:

• increasing resource and information sharing with provinces and territories;
• increasing the frequency of on-site inspections and ensuring that they be conducted while temporary foreign labour is being used;
• creating an accreditation system for recruiters, which requires compliance with the Temporary Foreign Worker Program rules and from which employers could exclusively select;
• establishing a dispute resolution mechanism for migrant workers when conflict with an employer arises;
• ensuring, through on-site inspections, that labour laws and regulations are properly enforced where migrant workers operate; and
• guaranteeing that any workplace injuries that require immediate attention be granted emergency care where deemed necessary in Canada.

RECOMMENDATION 21

That Employment and Social Development Canada, in collaboration with stakeholders, establish measures to ensure that incoming migrant workers and their employers are informed of their rights and responsibilities under the Temporary Foreign Worker Program, including dispute resolution and abuse reporting procedures, as well as information on wages, benefits, accommodations and working conditions; and that the Department undertake best efforts to provide this information in the language of preference of the migrant worker.