Ottawa tightens use of low-wage temporary workers more than Quebec

Photo: Kelly Clark The Canadian Press “We don't need as many temporary foreign workers anymore. We need businesses that invest in training and technology, not increase their dependence on low-cost labour,” said Justin Trudeau.

Sarah R. Champagne

Published at 9:23 a.m. Updated at 11:28 a.m.

• Canada

Ottawa will tighten access to the low-wage temporary foreign worker program more than Quebec. Prime Minister Justin Trudeau announced three changes Monday morning, before heading to a three-day federal cabinet retreat.

This announcement follows that of Premier François Legault last week, but it covers more broadly, both geographically and for caps in each industry.

Quebec will freeze access to the program for six months starting September 3, but only for the island of Montreal.

Ottawa's tightening will come into effect on September 26 and is in addition to what was already announced last spring. The federal measures will apply without a specific end: the review of the program continues, specifies the office of the Minister of Employment, Randy Boissonnault.

We no longer need so many temporary foreign workers

— Justin Trudeau

The major sectors exempted from the tightening will be the same as in Quebec and the rest of Canada: construction, health, and food and fish processing. Agriculture is covered by another component of the program and is therefore also excluded.

“Low wage” is defined by province according to the median wage, which is $27.47 per hour in Quebec.

According to the unemployment rate

The easing of restrictions after the pandemic has served the business community well, Trudeau said, but “today's economy is different,” citing falling inflation and rising unemployment.

The unemployment rate will also be used to determine which metropolitan areas will no longer be able to participate in the program. The Government of Canada will refuse to process Labour Market Impact Assessments (LMIAs), the first step for companies hiring abroad, in cities where the unemployment rate is 6% or higher.

200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000

Taking this criterion into account with the unemployment rate on July 1, 2024, the cities of Laval and Hull will be excluded from the program; but Quebec did not mention them in its announcement.

Read also

• Quebec puts a small brake on the hiring of temporary workers
• Editorial | On the question of immigration, the strategy of small steps

“We don’t need so many temporary foreign workers anymore. We need businesses that invest in training and technology, not increase their reliance on low-cost labour,” the Prime Minister said. It’s time to invest in Canadian workers, he retorted, to “those who complain about labour shortages.”

Different caps

The second major change is more of a step backward: employers will be able to hire up to 10 per cent of their total workforce under the program.

The current limit is 20% in most industries, already reduced when it was even 30% in certain sectors such as accommodation. However, health and agriculture do not have a cap across Canada.

In Quebec, the wood product manufacturing, furniture or related products sectors, as well as accommodation and food services are still displayed at 30% rather than 20% for lower-paid positions.

There are also 267 professions exempt from these caps in the province, some of which are low-paid. This list of professions has expanded in recent years, at the request of the Legault government. Last year, outside of agriculture, 63% of temporary worker files in Quebec went through this simplified process, without their position being first posted for local workers.

Mr. Boissonnault’s office has confirmed, however, that the changes will apply to Quebec, while saying it wants to “work closely with the Government of Quebec.”

Finally, the last change announced Monday concerns the maximum employment period, which will go from two to one year across Canada.

“The changes we are making today will put Canadian workers first and ensure that Canadians can have confidence that the program meets the needs of our economy,” said Randy Boissonnault, Minister of Employment and Social Development.

The high-wage component of the same program is also under the government’s microscope, as part of a general accelerated review lasting 90 days.

The cabinet will also discuss the number of permanent residents and the possibilities of adjusting the targets, the prime minister also said.

This return to pre-pandemic rules is reminiscent of the 2014 reform of the same program. The federal government deplored at the time that a “last resort” program had not had enough limits and that some employers had “over time, built their business model based on the [Temporary Foreign Worker Program [TFWP].”