A Discussion Paper on Temporary Foreign Workers (TFW) in Canada

2012

A Discussion Paper on Temporary Foreign Workers (TFW) in Canada With large numbers of TFW entering Canada every year (as of 2011 there were 300,111 temporary foreign workers in Canada, triple the number that were in the country a decade ago) this is a issue that needs to be explored in more detail.

By Cyndi Ingle Workforce Planning Hamilton 6/19/2012

Table of Contents The issue of Temporary Foreign Workers in Canada .................................................................................... 3

What are the steps employers take to hire TFW? ........................................................................................ 3

The Live-In Caregiver Program ...................................................................................................................... 4

Seasonal Agricultural Workers Program (SAWP) .......................................................................................... 4

Pilot Project for Occupations Requiring Lower Levels of Formal Training ................................................... 5

Why the need for TFW in Canada? ............................................................................................................... 5

What do the numbers tell us? ..................................................................................................................... 6

TFW in Hamilton ........................................................................................................................................... 6

Countries of origin for TFW........................................................................................................................... 7

What are the skill levels of TFW coming to Canada? .................................................................................... 7

Recent changes to TFWP by the Federal Government ................................................................................. 7

What are the issues affecting the treatment of TFW? ................................................................................ 8

Additional Resources .................................................................................................................................. 11

Articles and Reports .................................................................................................................................... 12

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The issue of Temporary Foreign Workers in Canada There are at least two sides to every story and the influx of temporary foreign workers (TFW) into Canada during the past decade can be viewed from many angles. With large numbers of TFW entering Canada every year – in 2011 there were 300,111 temporary foreign workers in Canada 1, triple the number that were in the country a decade ago, this is an issue that needs to be explored in more detail. It is especially relevant in Ontario as 106,849 TFW workers were present in the province in 2011.2 One view of the prevalence of TFW is that working in Canada (even temporarily) benefits people who would be unable to make a living in their native country due to circumstances of abject poverty and limited opportunities for education or employment. The money that is earned in Canada is sent back home to maintain a better standard of living or even survival for their family members. Some of the TFW program’s supporters state that many migrants are not seeking to immigrate to Canada; they want to earn money and return to their homelands. 3 Conversely, it can also be argued that the Canadian government and employers are exploiting a cheap pool of labour from economically distressed parts of the world, and analogies have been drawn that parallel the TFW program to indentured servitude and a form of modern day slavery. 4 Those who would like to become permanent residents have little recourse to do so, as usually the TFW has to be nominated by their employer for this status under a provincial nominee program. This can potentially set up an unhealthy power dynamic between employer and worker. 5 Although TFW in Ontario are in theory covered by the Employment Standards Act (ESA), labour and other abuses have been documented, and will be explored later in this paper.

What are the steps employers take to hire TFW? Employers who want to hire a TFW have to apply to Service Canada for a Labour Market Opinion (LMO). The LMO assesses the impact the foreign worker would have on Canada’s 1

Citizenship and Immigration Canada, – Preliminary tables, Temporary foreign workers present on December 1st by province or territory and urban area, 2007-2011. (Data for 2011 are preliminary estimates and are subject to change.)

2

Ibid.

3

“Temporary foreign workers: positive and negative impact,” The Chronicle Herald, February 11, 2012.

4

Report on the Status of Migrant Workers in Canada, UFCW Canada, 2011.

5

Ibid.

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labour market and how the offer of employment would likely affect Canadian jobs. An employer needs a positive LMO to hire a temporary foreign worker. The foreign worker needs a copy of the positive LMO in order to apply to Citizenship and Immigration Canada for a work permit. There are circumstances when a LMO and a work permit is not required, for instance in the case of occupations such as athletes and coaches, clergy, military personnel, performing artists, public speakers, etc. 6 TFW’s enter Canada under the Temporary Foreign Workers Program (TFWP), which is divided into high skilled and low skilled categories.

In the low skilled category there are three streams: • • •

Live-in caregivers, who enter Canada under the Live-In Caregivers Program (LCP) Agricultural workers, who enter under the Seasonal Agricultural Workers Program (SAWP) Pilot Project for Occupations Requiring Lower Levels of Formal Training

The Live-In Caregiver Program • • • • •

Caregivers must live in the private home where they work They are taking care of children, the disabled, and the elderly in private homes They can apply for permanent residency after working in Canada for at least 2 years, within a four year period Employers can make deductions for meals and for a room, but only to a limited amount In Ontario these workers are covered under the Employment Standards Act (ESA)

Seasonal Agricultural Workers Program (SAWP) There are differences with regards to the pay and treatment of “farm workers” and “harvesters” in Ontario.

• •

•

6

Farm workers duties include: planting crops, cultivating, pruning They are not entitled to: minimum wage, maximum number of hours of work, overtime, daily rest periods, weekly/by-weekly rest periods, eating periods, public holidays and vacation pay They are entitled to: written notice of termination or termination pay

Human Resources and Skills Development Canada

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• • • • •

Harvesters duties include: employment on a farm to bring in fruit, vegetables and tobacco They are entitled to: minimum wage, termination page, paid public holidays and vacation with pay Not entitled to: hours of work, daily rest periods, weekly/bi-weekly rest periods, eating periods and overtime Employers can deduct meals from the wages Employers in Ontario must provide free housing 7

Pilot Project for Occupations Requiring Lower Levels of Formal Training Employers may be allowed to hire temporary foreign workers for a maximum of 24 months through the Pilot Project for Occupations Requiring Lower Levels of Formal Training (National Occupational Classification C and D) when there is a demonstrable shortage of Canadian citizens and permanent residents.

Lower levels of formal training are defined as occupations that usually require at most a high school diploma or a maximum of two (2) years of job-specific training according to the NOC Classification system. These occupations are coded at the NOC C or D skill level. 8 Examples of jobs under this classification include restaurant work, and staffing of hothouses and green houses. Employers can charge their workers rent. 9

Why the need for TFW in Canada?

Canada has utilized the skills of migrant workers for decades, primarily for agriculture and as live-in caregivers. During the last decade the use of TFW has expanded to include workers in hospitality, service, construction, manufacturing, and food processing.10 Demographic trends show that Canada has an increasingly aging workforce and a birth rate that remains low. Many believe these dual trends will lead to labour shortages in sectors including information,

7

Migrant Workers Alliance for Change, www.migrantworkersalliance.org

8

Human Resources and Skills Development Canada, http://www.hrsdc.gc.ca/eng/workplaceskills/foreign_workers/lowskill.shtml 9

Report on the Status of Migrant Workers in Canada, UFCW, 2011.

10

Ibid.

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communications and technology; mining; and construction, and this rationale is currently used to bring in increasing numbers of TFW. 11 However at the same time the federal government seems to be shifting from allowing in more permanent residents; in 2009 the number of permanent residents allowed into Canada was 252,124 and the TFW entering Canada were over 280,000. 12

What do the numbers tell us?

During the past decade Canada had experienced a huge increase in the number of people entering under the Temporary Foreign Worker Program (TFWP). In 2001 there were 96,390 TFW in Canada (including those under the categories of: Information technology workers; Livein caregiver program; Seasonal Agricultural Worker Program (SAWP); Low skill pilot program; Other workers with LMO, and Workers with LMO). Nine years later, in 2010, there were 282,771 TFW in Canada.

• •

In 2001, 9,458 people were present in Canada under the Live-in caregiver program.

In 2010, 35,006 people were present Canada under the program.

• •

In 2001, 18,350 people were present in Canada under SAWP. In 2010, 23,930 people were present in Canada under SAWP. 13

TFW in Hamilton In 2007, there were 1,562 TFW in Hamilton, and in 2011 there were 2,220 TFW in Hamilton.

Unfortunately there is little information on how many of these workers are SAWP and how many are coming in under the Live-In Caregiver Program. 14

11

Globe and Mail, “Does temporary foreign workers program create second class of labourers?” May 6, 2012

12

Report on the Status of Migrant Workers in Canada, UFCW, 2011, p. 1

13

Citizenship and Immigration Canada, Facts and Figures: Immigration Overview, Permanent and Temporary Residents, Canada - Foreign workers present on December 1st by yearly sub-status, 2010.

14

Citizenship and Immigration Canada, Preliminary tables – Permanent and temporary residents, 2011, Canada –

Temporary foreign workers present on December 1st by province or territory and urban area, 2007-2011. (Data for 2011 are preliminary estimates and are subject to change.)

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Countries of origin for TFW Workers coming in under the SAWP, which was launched in 1966, are from: Mexico, Jamaica, Barbados, Trinidad and Tobago, Grenada, Antigua, Dominica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent, and the Grenadines and Montserrat. Most SAWP workers are from Mexico and Jamaica. 15 The majority of temporary workers entering under the Live-In Caregiver Program are women from the Philippines. 16

What are the skill levels of TFW coming to Canada?

• • • • • • •

Some of the TFW who enter Canada are in lower skilled categories. For instance in 2001, 1,173 people entered under Level D - Elemental and labourers.

In 2010, 8,742 people entered with Level D. The numbers for Level A – Professional, have declined from 47,689 people in 2001 to 34,653 people in 2010.

The numbers of people in Level O – Managerial have increased from 4,729 (2001) to 8,409 (2010).

The numbers in Skilled and Technical have increased from 21,258 (2001) to 24,487 (2010).

The Intermediate and Clerical group makes up the second largest group of TFW in Canada (27,377 people in 2001, up to 41,931 people in 2010).

The employment category levels of many of the workers remains unknown as levels weren’t stated for 17,412 people in 2001, and for 64,046 people in 2010. 17

Recent changes to TFWP by the Federal Government Human Resources Minister Diane Finley announced changes to the TFWP on April 25, 2012.

The changes include: • •

An accelerated application process for employers with a strong track record, a LMO will be given to them within 10 business days The accelerated LMO will be offered to employers seeking workers in high-skill occupations, including the skilled trades

15

The Status of Migrant Farm Workers in Canada, UFCW, 2010-2011.

16

Report on the Status of Migrant Workers in Canada 2011, UFCW.

17

Citizenship and Immigration Canada, Immigration overview: Permanent and temporary residents, Temporary residents, Canada – Total entries of foreign workers by gender and occupational skill level, 2010.

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• • • •

The expedited process may later be expanded to other labour market areas A simplified online application A call centre to support employers More automated systems to cut down on paperwork, share information and track compliance. 18

Critics are most concerned with the fact that in some cases the government is going to allow employers to pay highly skilled foreign workers up to 15% less (and 5% less for low skilled workers) than local wages. This does not apply to farm workers. The lower wages can only be paid if the other (Canadian) employees accept the same wage.

But there is an exception: if a company previously had Canadian employees who were being paid below the average local wage (but no longer has Canadian workers) they can hire as many foreign workers as needed and pay up to 15% below the local going rate.

Some Union representatives think that the federal government should instead expand immigration quotas, to allow skilled foreign employees to stay in Canada.19

What are the issues affecting the treatment of TFW? 1. They are linked to one employer •

Migrant workers employed under the 'low skilled' stream of the TFW program are tied to one employer. In theory they are protected under the Employment Standards Act in Ontario, but critics feel that there is not adequate monitoring of employers, or enforcement of laws. Workers who complain (and they rarely do) can be fired and sent back to their country of origin. 20 Recent changes by the Federal government to the TFWP may encourage employers to treat workers correctly. To achieve a fast decision regarding hiring a TFW, a business must agree to random audits to ensure they are following the rules. If they fail, and do not correct the problem, they can be banned from bringing in more workers for two years. 21

•

18

“Temporary foreign worker program speeds up”, www.CBC.ca, April 25, 2012.

19

The Star, “Conservatives’ wage model will hurt all workers, unions say”, May 15, 2012.

20

Migrant Workers in Canada, Used and Abused, Canadian Council for Refugees.

21

“Does Temporary Foreign Workers Program Create Second Class of Labourers?”, The Globe & Mail,May

6,2012.

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2. Inadequate and/or expensive housing •

Employers utilizing the Live-in Caregiver Program and the SAWP are required to provide housing for their employees. Sometimes employers in the Low-Skill Pilot Project include housing in their workers’ contract, and charge rent. There have been many reports of inappropriate and over-priced accommodations. 22

3. They pay money to recruiters both inside and outside of Canada •

Some workers pay thousands of dollars to recruiters to work in Canada, even though employers are supposed to pay for all recruitment and placement fees, and part of all of the workers’ travel costs to Canada. 23

4. Some employers are not following Canada’s labour laws with regards to the treatment of TFW •

Case in point: A TFW who was employed at a Denny’s Restaurant in Vancouver has launched a class action suit against her employer. This is the first suit of this kind in Canada. Reasons for the suit include: working overtime without being paid; working less than 40 hours per week on many occasions; not being reimbursed for expenses related to her employment (ie. travel from the Philippines and agency recruitment fees). 24

5. Two-tiered system of workers is being created •

There is a fear that a two-tiered system of workers is being created, with the migrant workers being viewed as a disposable workforce. Due to their isolation, lack of language skills, and lack of finances, they are in a vulnerable position. 25

22

Migrant Workers in Canada, Used and Abused, Canadian Council for Refugees.

23

Ibid.

24

“Foreign worker class action ‘sounds the alarm’” Canadian HR Reporter, May 21, 2012.

25

Temporary Migrant Workers, Canadian Council for Refugees.

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6. Lack of English or French language skills •

•

A 2007 Parliamentary report by Sandra Elgersma on TFW discovered that a lack of communication skills in English or French is a barrier for TFW, which can create the experience of being isolated in the community and create difficulties in workplaces.

Some TFW experience racism and harassment. 26 TFW have a lack of knowledge about their rights and limited access to agencies that can help them. 27

7. Hiring TFW may create a devaluation of wages paid to Canadians The Parliamentary report cited above indicated that temporary workers may contribute to an overall lowering of wages. And using this form of labour may act as a disincentive to companies to seek productivity gains through the development of new technologies. 28 In summation, the usage of TFW in Canada is a complex issue. A glimpse at the statistics from the past decade indicates that the trend has been to increase the numbers of TFW that are allowed into Canada, and this does not seem to be ending any time soon. You are invited to explore the additional resources below to further your understanding of what the TFWP means for individual TFW, employers, and the face of the future workforce of Canada.

26

“Temporary foreign workers: positive and negative impacts”, The Chronicle Herald, February 11, 2012.

27

The “Pilot” for recruiting temporary foreign workers for low-skilled jobs should be abolished, Maytree Foundation, March, 2011.

28

“Do Canadians know how increasing numbers of temporary foreign workers is changing immigration?”, CCPANova Scotia, In Focus, January 31, 2012.

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Additional Resources Citizenship and Immigration Canada features a guide to hiring foreign workers: http://www.cic.gc.ca/english/resources/publications/tfw-guide.asp information on TFWP: http://www.hrsdc.gc.ca/eng/workplaceskills/foreign_workers/index.shtml Human Resources and Skills Development Canada

Features information for both employers and foreign workers laying out responsibilities and rights.

Justicia for Migrant Workers c/o Workers Action Centre 720 Spadina Avenue, Suite 223, Toronto 1-877-707-6620 x 1 http://www.justicia4migrantworkers.org/index.htm J4MW promotes the rights of migrant farm workers (participating in the Canadian Seasonal

Agricultural Workers Program and the Low Skilled Workers Program) and farm workers without status.

Migrant Workers Alliance for Change http://www.migrantworkersalliance.org/wp-content/uploads/2011/05/TFW-mwac.pdf The site has handouts for TFW in the categories of live-in caregivers and agricultural workers, and offers information on rights at work, facts about work permits, Employment Insurance, and how workers can protect themselves. http://www.migrantworkersalliance.org/wp-content/uploads/2011/05/LICG-mwac.pdf http://www.migrantworkersalliance.org/wp-content/uploads/2011/05/SAW-mwac.pdf http://www.migrantworkersalliance.org/wp-content/uploads/2011/05/TFW-mwac.pdf Migrant Workers Family Resource Centre 350 Kenilworth Ave N, 2nd Floor, Hamilton Contact: Josephine Eric 905-547-1417 x 239

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Articles and Reports Canada’s Temporary Foreign Worker Program Exposed: Problems and Solutions http://www.immigration.ca/news-nov09-canadas.asp

Do Canadians Know How Increasing Numbers of Temporary Foreign Workers is Changing Immigration? http://www.policyalternatives.ca/publications/commentary/do-canadians-know-how-increasingnumbers-temporary-foreign-workers-changing-

Does Temporary Foreign Workers Program Create a Second Class of Labourers? http://oppenheimer.mcgill.ca/Does-Temporary-Foreign-Workers

Migrant Workers – Canada’s Disposable Workforce http://ccrweb.ca/en/migrant-workers See also on this page: Migrant Workers in Canada: Used and Abused.

Temporary Foreign Workers: Positive and Negative Impacts http://thechronicleherald.ca/opinion/61669-temporary-foreign-workers-positive-and-negativeimpacts

The “Pilot” for Recruiting Temporary Foreign Workers for Low-Skilled Jobs Should be Abolished http://maytree.com/discussion-papers/adjustingthebalance/the-%e2%80%9cpilot%e2%80%9d-forrecruiting-temporary-foreign-workers-for-low-skilled-jobs-should-be-abolished.html

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