Organization says that it does not fully account for requirements of small businesses
The Quebec government has announced a six month pause on one of the key elements of the Foreign Workers Program – but it may have a negative impact on small businesses in the province according to the Canadian Federation of Independent Business (CFIB).
Premier François Legault and immigration minister Christine Fréchette said this week that the suspension of FWP eligibility for low wage jobs in the Montreal area was necessary to protect the province’s public service and the French language.
“We have a teacher shortage, and now we're increasing the number of students by tens of thousands," Legault said Tuesday. The freeze should mean 3,500 fewer foreign workers seeking low wage jobs in Quebec.
The temporary change to the FWP will affect those roles in Montreal with hourly wages below the province’s median wage of $27.47 and will take effect from September 3. It will also impact renewals.
CFIB president Dan Kelly said that, while the Quebec government is entitled to change the program as it deems necessary, Canada’s available workforce is not sufficient to meet demand from employers, especially in sectors like agriculture, caregiving and skilled trades, as well as in rural areas.
“Labour shortages in these vital sectors of the economy will only get worse as the incoming generation of workers can't compensate for the wave of retirees we'll see in the coming years,” he said, adding that the temporary freeze in Quebec will exacerbate pressures on businesses and “comes on the heels of months of political attacks on the program that are unfounded.”
Kelly says that the view that the FWP leads to worker abuse and wage suppression for Canadian workers is not supported by statistics.
“Employment and Social Development Canada’s own data finds that 94% of employers who use the program are compliant with the program's new enhanced protection measures,” he said. “The costs associated with the program, which include a Labour Market Impact Assessment, recruitment, transportation and often housing and health care for the workers, are too prohibitive for employers who have other options. The TFW Program is a program of last resort.”
Kelly says that ESDC figures also show that 85% of TFWs are paid at the same rate as Canadian workers in the same roles. He also noted the positive impact reported by businesses with TFWs.
“Employers who use the program report that their TFWs help them stay in business (89%), retain current employees (70%) and hire more Canadians (44%). Some would close their doors, and shed Canadian workers, if it weren't for their foreign workers,” he warned.
Kelly concluded that the government should not unfairly penalize those businesses that follow the rules and treat their TFWs with respect.