(Bloomberg) -- Prime Minister Justin Trudeau’s government is mulling a change to help crack down on abuses of temporary foreign workers — publicly naming individual business managers or owners who violate Canada’s labor rules.
The measure would be part of a broader set of reforms to clean up the country’s migrant labor system, according to people familiar with the matter, speaking on condition they not be identified.
The government is facing heavy criticism for a policy that has made it much easier for companies to bring in temporary foreign workers, or TFWs, and for lax enforcement of rules intended to protect them. Trudeau’s administration, responding to concerns about labor shortages, increased the limits on low-wage TFWs in 2022, allowing firms to hire up to 20% of their staff through that program — with a 30% limit in certain sectors, such as construction.
The influx of workers from abroad has made it easier for companies to find staff and given a boost to economic growth. But there are growing concerns about outright fraud in the program — including unscrupulous immigration consultants who scam migrants by charging large, illegal fees to secure jobs for them. Some foreign workers are willing pay the fees because it increases their chances of eventually getting permanent residency.
A government-commissioned investigation completed in May — but not released to the public — found a significant increase in fraud and abuse, with newcomers charged $10,000 (US$7,300) to $180,000 for jobs, according to a summary viewed by Bloomberg News.
A report published this week from a United Nations official called Canada’s temporary foreign worker program a “breeding ground for contemporary forms of slavery.” Canadian business groups strongly object to that description, saying most companies using temporary workers are doing it ethically and following the rules, and are simply trying to fill vacant positions.
Currently, the government posts a database of companies found to be “non-compliant” in how they employ foreign workers. Companies found to be offside can be fined and temporarily banned from hiring foreign workers.
Recent examples include a Domino’s Pizza in Vancouver that was fined $21,000 for failing to provide the pay and working conditions it promised, and a commercial cleaning company in Edmonton, Alberta, that was given a five-year prohibition on hiring TFWs for similar reasons.
Government policymakers believe posting the names of the individual people involved in hiring foreign workers, if their companies are found to be in non-compliance, would provide greater deterrence to misbehavior, one official said.
The government also plans to scale back the low-wage stream of the temporary foreign worker program to bring the numbers more in line with pre-pandemic levels, said the official. That measure was reported first by the Globe and Mail newspaper.
Government data collected by Bloomberg shows the number of foreign workers in food and retail jobs surged 211% between 2019 and 2023.
A reduction in work visas for low-wage jobs would fit into a larger government plan to reduce non-permanent immigration over the next three years. Canada is also cutting back on the number of international students it’s allowing into its colleges and universities.
Earlier this month, Employment Minister Randy Boissonnault met with business groups and pledged stricter oversight in “high-risk” sectors. The government is also considering banning some industries altogether from hiring foreign workers for low-wage jobs, he said.
Still, some business groups have urged the government not to go too far in restricting companies from importing staff from abroad.
Nancy Healey, who holds a government post called the commissioner for employers, sent a letter to Trudeau’s cabinet ministers, arguing the country still faces significant worker shortages and it is “crucial not to reduce the labor pool.” The letter was signed by groups including the Canadian Chamber of Commerce and Canadian Federation of Independent Business.
This week, Healey also slammed the UN report on the foreign worker program. The idea that it leads to modern forms of slavery “is inflammatory and fails to capture the strengthened integrity measures” that were adopted in 2022, she said in a news release.
--With assistance from Erik Hertzberg and Jay Zhao-Murray.
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