Changes to temporary foreign worker program could increase lower wage hirings

· Toronto Sun

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Changes to the federal government’s much-maligned Temporary Foreign Worker Program could beef up lower-wage employees from outside the country.

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On Friday, Patty Hajdu, Minister of Jobs and Families, said the changes will “strengthen” the program, created to address labour shortages in critical sectors where there are not enough Canadian workers to fill the gaps.

The government said, as of Nov. 6, changes to the low-wage stream of the program include allowing foreign workers to be employed with the same company for a maximum two-year duration, up from one year.

In addition, early childhood educators have been added to the healthcare, construction, and food processing exceptions as priority sectors for metropolitan areas with an unemployment rate of 6% or higher.

Under the program, a job is deemed low wage if the employer pays workers less than 120% of the regional median wage, according to the federal government’s Job Bank.

Could increase temporary worker numbers

Meanwhile, with provincial and territorial approval, Hajdu is also proposing several changes that will take effect next March, including allowing businesses to increase the number of temporary workers from 10% of their staff to 15%, while priority sectors will continue to be limited to 20% temporary workers.

“While Canadians must always be first in line for available jobs, employers in key sectors continue to face labour shortages that can limit growth and affect communities across the country,” Hajdu said in a statement announcing the changes .

“These suggested changes, in collaboration with provinces and territories, will help ensure the Temporary Foreign Worker Program remains a targeted and responsive tool that supports workforce needs and helps communities and businesses continue to thrive.”

This announcement, which was not included in Prime Minister Mark Carney’s budget tabled last week, will be boosted by $151.5 million earmarked for the program “to support and enhance service delivery” over the next five years.

Youth and overall unemployment rising

However, Conservative MP Andrew Scheer was critical of the program’s expansion in a social media post, pointing to high unemployment levels among Canada’s youth and overall unemployment rising to 6.7%.

And Conservative Leader Pierre Poilievre was not too pleased either by the proposed changes.

“While Canadians are losing their jobs, Mark Carney is allowing corporate power brokers to bring in low-wage temporary foreign workers to take their wages out of the hands of our people. This is unacceptable,” Poilievre said at a news conference Tuesday in Brampton following news that automaker Stellantis has sold its idled plant to armoured vehicle maker Roshel.

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In the budget, the federal government has allocated $82 million over four years for the Migrant Worker Support Program, which helps temporary foreign workers understand their rights and how to exercise them, while living and working in Canada.

The government said it will continue to monitor conditions in the labour market and will work with provinces and territories, industry stakeholders and labour unions to protect the program.

While calling the budget “disappointing” for small business owners struggling to keep afloat due to rising costs and the trade war with the U.S., the head of the Canadian Federation of Independent Business praised the update to foreign worker applications.

“Good to see the federal government adding some new flexibility for the Temporary Foreign Worker program, including allowing for a two-year permit,” Dan Kelly shared to social media .

“The program remains deeply scaled back, but these measures will help some employers in regions and sectors where Canadian workers are in short supply.”

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