In a recent development, Canada’s Minister of Employment, Workforce Development, and Official Languages, Randy Boissonnault, has unveiled revisions to the Temporary Foreign Workforce Solutions Road Map, aimed at helping employers address significant labor shortages through the Temporary Foreign Worker Program (TFWP).
The Temporary Foreign Workforce Solutions Road Map is an ongoing initiative designed to empower employers to adapt to labor and economic conditions in Canada as they evolve, ensuring the flexibility of the TFWP.
The latest announcement introduces and maintains several changes to the Temporary Foreign Workforce Solutions Road Map:
- Sectoral Employment Provisions: Employers in seven specific sectors, namely Food Manufacturing, Wood Product Manufacturing, Furniture and Related Product Manufacturing, Accommodation and Food Services, Construction, Hospitals, and Nursing and Residential Care Facilities, are permitted to hire up to 30% of their workforce in low-wage positions through the TFWP.
- Duration Cap: A maximum employment duration of two years will be enforced for positions paying wages below the provincial or territorial minimum wage.
- Validity of Labor Market Impact Assessments (LMIAs): The validity of LMIs will be reduced from the previous maximum of 18 months to 12 months.
Annual Wage Reviews: Starting from January 1st, 2024, employers will be required to conduct annual reviews of the wages of their temporary foreign workers to ensure they are in line with the prevailing wage rates for their specific occupation and region of work.
All these extended measures will remain in effect until August 30th, 2024, with the possibility of adjustments based on the dynamic labor market and economic conditions.
Despite significant strides made by Canada in addressing labor shortages in the aftermath of the COVID-19 pandemic, several sectors, including those mentioned earlier, continue to grapple with an ongoing shortage of workers, which cannot be fully addressed domestically. This is highlighted by the fact that the unemployment rate in September remained at 5.5% for the past three months, even with record levels of immigration. In fact, demand from employers for the TFWP has surged by approximately 40% compared to the previous year, underlining the persistent job vacancies in these sectors.
Understanding the Temporary Foreign Worker Program (TFWP)
The TFWP is one of Canada’s two primary work permit programs, managed by Immigration, Refugees, and Citizenship Canada (IRCC), designed to alleviate domestic labor shortages through controlled immigration.
Under this program, which includes various streams such as agriculture, live-in caregivers, and high and low-wage foreign workers, foreign nationals can be employed by Canadian companies to work within Canada. However, employers must undergo a Labor Market Impact Assessment (LMIA), a formal approval process and document that the Canadian government employs to evaluate whether a Canadian permanent resident or citizen could have been hired for the same position. A positive or neutral LMIA result allows the hiring of a foreign worker, while a negative decision results in a refusal of the work permit application. LMIA-backed work permits are tied to a specific employer and industry.
Ensuring employer compliance is a crucial aspect of the program. The Canadian government not only maintains online records of employers found to be non-compliant with TFWP standards, encompassing wage rates, working conditions, and workers’ rights, but it has also introduced a safety program to protect vulnerable workers participating in the program. In addition, IRCC has introduced the Recognized Employer Pilot (REP) to streamline LMIA procedures for trusted employers with a commendable track record within the program, underscoring the significant role these workers play in filling enduring job vacancies.