Canada’s Temporary Foreign Worker Program is under increased scrutiny, but Canada’s independent business advocate says Prime Minister Justin Trudeau’s plan to decrease the numbers of workers the country allows through the program risks economic consequences.

A report released by United Nations Investigator Tomoya Obokata — special rapporteur on contemporary forms of slavery at the UN and a professor of international human-rights law at the University of York in Britain — criticized the program, citing concerns including wage theft, human trafficking, long working hours and harassment. A post-pandemic increase in low-wage worker approvals further intensifies concerns over labor rights and conditions within the program.

“The special rapporteur retains the view that the temporary foreign worker program serves as a breeding ground for contemporary forms of slavery, as it institutionalizes asymmetries of power that favor employers and prevent workers from exercising their rights,” the report states.

The TFWP has primarily been used in the agricultural sector to cover seasonal spikes in labor demand, The Globe and Mail reported. However, the program now faces renewed scrutiny over the steep rise in a separate stream of the program focused on low-wage workers, which employers are using to fill positions such as fast-food counter attendants.

The number of temporary foreign workers in Canada has continued to grow despite an increase in the country’s unemployment rate, according to Bloomberg. It reached 6.4% in June; the increase was 13.5% for the youngest workers. Temporary foreign workers have increasingly been recruited for low-wage, unskilled jobs, including in retail stores and restaurants. 

Businesses Voice Support for Program

Prime Minister Justin Trudeau plans to reduce temporary immigration, but Canada’s independent business advocate recently said the plan risks dire economic consequences, underscoring the pressures the government is facing as it tries to slow population growth, Bloomberg reported.

An Aug. 1 letter to three of Trudeau’s cabinet ministers from Nancy Healey, who holds a government post knows as commissioner for employers, warned that the plan to cut temporary residents by 20% over three years is likely to make it harder for firms to grow. The letter was signed by business groups including the Canadian Chamber of Commerce and Canadian Federation of Independent Business.

“In the context of the current and future labor shortages that Canada will experience, it is crucial not to reduce the labor pool,” the letter stated. “Such a reduction would have catastrophic economic consequences for companies and limit their growth potential.”

According to Bloomberg, Healey defended the program, calling it “much maligned despite the rigor that has characterized it for many years,” driven by “unsubstantiated anecdotes.” The system requires employers to advertise jobs to Canadians before seeking a foreign worker, to pay market wages and to take part in a compliance regime that protects against abuse, she wrote.

She urged the government to maintain the number of workers admitted under the program, speed up approval times and avoid increasing the C$1,000 (US$727.50) fee for permit applications, already costly for small businesses.

“We need better paths for newcomers to come and stay in Canada,” Healey said in the letter. “It is clear that immigration streams that attach a job offer to the application result in improved outcomes.”