Outburst! Canada plans to "block" this batch of low-wage temporary immigrants, five major measures to curb system abuse!
On August 1, Canada's immigration minister, Mark ·, had already "let the wind out" in an interview with Reuters, when he made it clear that "the immigration program without a ceiling is coming to an end." At the same time, there will be major changes to Canada's immigration policy in the coming weeks.
Today (Aug. 6), Employment and Workforce Development Minister Randy · Boissonnault told the media that the federal government is considering rejecting applications for Temporary Foreign Workers (TFWs) under the low-wage pathway.
This means that foreign workers in industries such as food processing, agriculture and catering may soon face a "one-size-fits-all" policy U-turn.
"Blocking" low-wage temporary foreign workers
Boissonott revealed that the policy change will apply to jobs that are paid less than the median hourly wage in the provinces and territories.
This median wage varies by jurisdiction, with the median hourly wage in Prince Edward Island and Nova Scotia being around $24, Manitoba $25, Ontario about $26, British Columbia about $28, Alberta $29.50 and the Northwest up to $39.24 per hour.
"Over the past year, it has been clear to me that the abuse and misuse of the TFW program must end. I take the health and safety of temporary foreign workers in Canada very seriously," Boison Nott said in a media statement.
The problem of LMIA fraud is serious
Boysonott also hinted at the problem of false Labour Market Impact Assessments (LMIAs).
"Bad actors are taking advantage of people and undermining opportunities for legitimate businesses to use the program," he stressed. We are taking more reform measures to stop abuse and fraud from entering the TFW program. ”
While the federal government investigates employers who use the Temporary Foreign Worker Program, employers are notified in advance prior to the inspection.
Last year, the federal government conducted more than 2,100 inspections, and nearly 200 companies were penalized for violating the program's rules.
But only 12 employers were banned from the program this year, compared to even fewer in the last fiscal year, when only seven employers were banned from the program.
Chris Ramsaroop, an ·activist with Migrant Workers Justice, put it bluntly: "It's not just a matter of a few black sheep, the whole system is rotten to the roots." ”
In FY 2023-24, the total fines issued under the TFW program exceeded $2 million, a 36% increase from the previous year.
Immigration lawyers, agencies, and consultants have been warning that fake Labour Market Impact Assessments (LMIAs) are being sold for tens of thousands of dollars.
According to an industry insider, a fake LMIA is worth a lot of money, "We see these employers offering prices ranging from $30,000 to $50,000 or even $60,000 for LMIAs. ”
This is because employers who hire foreign workers must submit a Labour Market Impact Assessment, or LMIA, to the federal government to prove that a qualified Canada cannot be found to fill the position within 28 days. Foreign nationals who obtain an LMIA can get higher scores in Canada's Express Entry immigration system.
Relevant industry insiders expressed concern
Tuesday's participation also included representatives from the food and beverage, transportation and agriculture industries.
Food and Beverage Canada CEO Kristina · Farrell said businesses in the food processing industry are worried about their prospects as low-wage channel TFW applications could be denied.
"Obviously, if this applies to the food and beverage manufacturing industry, it's going to be a crisis," she told CBC News. "Ultimately, this will affect food prices."
Farrell said it is difficult to estimate the number of TFWs in the food processing industry because the numbers fluctuate significantly from year to year.
The Canada Restaurant Association was one of the industry groups participating in the conference. CEO Kelly · Higginson said that before the pandemic, about 1% of the workforce was TFW; After the pandemic, this rose to 3%.
However, temporary foreign workers are not a priority in most catering industries, but they are needed in areas where tourism is thriving.
Higginson added that the restaurant industry is a $115 billion industry in Canada, and this policy change could have a serious impact on the tourism economy.
But overall, the Canada Restaurant Association is "very supportive" of stricter oversight of the LMIA.
Agriculture is currently the industry that employs the most TFWs, but several other industries, including nurse assistants, food service support, and construction, have also seen a significant increase in the number of TFWs employed since 2018.
Five measures to improve policies
Boissonott's office said that at a meeting with industry associations, the minister outlined some of the measures that the government has introduced or is considering to curb the abuse of the system.
These measures include the following:
· Strict implementation of the 20% cap policy for temporary foreign workers: This includes a "dual intent subcategory" policy for temporary foreign workers who intend to apply for permanent residence. Employers using this category will be subject to stricter guidelines.
· Enhanced Strict Oversight of High-Risk Areas in the Processing of Labour Market Impact Assessments (LMIAs) and Inspections: Ensure closer monitoring of the application process in high-risk areas to prevent abuse and fraud.
· Consider increasing LMIA fees: The increased fees will be used to cover the additional work of processing integrity to ensure higher audit quality.
· Plan to implement regulatory changes regarding employer eligibility: for example, consider factors such as the minimum number of years a business has been in operation or the employer's history of redundancy to ensure that only qualified employers have access to the Temporary Foreign Worker Program.
·“ Refusal to process" policy: The Minister informed business associations that the implementation of this policy under the low wage category is being considered. If implemented, this would discourage employers in certain regions and industries from using the Temporary Foreign Worker Program to avoid abuse.
In recent years, there has been a significant increase in the number of approved TFW applications. 239,646 applications were approved last year, more than double the 108,988 in 2018. In 2022, 222,847 applications were approved, an increase of more than 89,000 from the previous year.
According to a report released by Statistics Canada in May, in 2019, one in 10 temporary foreign workers earned less than $7,500 a year.