Employers in Canada are now obligated to adhere to updated wage standards for temporary foreign workers under the Labour Market Impact Assessments (LMIA) of the Temporary Foreign Worker Program (TFWP). Effective January 1, 2024, employers must adjust the wages of temporary foreign workers in line with the prevailing wage, both at the commencement of employment and throughout the duration, to comply with TFWP regulations, as outlined by Immigration, Refugees and Citizenship Canada (IRCC).
The annual updates to Job Bank wages, the most recent occurring on November 29, 2023, play a crucial role in this requirement. While the LMIA is a prerequisite for most employers, exemptions exist. The list of exempt categories, last updated on December 15, 2022, includes jobs covered by international trade accords, federal-provincial/territorial government agreements, and those deemed in the best interests of Canada.
Understanding Wage Disparities Across Provinces
The national Job Bank acknowledges that median wages can differ significantly between provinces. For example, a truck driver (National Occupation Code 73300) may have a median hourly wage of $34.25 in one region of British Columbia but only $19.23 in a region of New Brunswick. The median hourly wage for a truck driver across the country is $25. Other occupations, such as a registered nurse (NOC 31301), a software engineer (NOC 21231), and a cook (NOC 63200), also showcase varying median hourly wages.
Addressing Labour Shortages and Economic Boost
Canada, grappling with ongoing labor shortages, is actively seeking to attract foreign workers to stimulate its economy. The Canadian Federation of Independent Business (CFIB) estimates potential losses to businesses due to workforce shortages at up to $38 billion in contracts and sales. The CFIB emphasizes the urgent need for government intervention to address these challenges and prevent further deterioration in the future.
Government Acknowledges Importance of Immigration
The Forum of Ministers Responsible for Immigration (FMRI) underscores the critical role of immigration in addressing labor shortages, attracting investments, and supporting Canada’s economic growth. Jeremy Harrison, the FMRI provincial-territorial co-chair, emphasizes that provinces and territories are pivotal in aligning immigration with employers’ needs while enhancing recognition of foreign qualifications.
Protecting Rights of Temporary Foreign Workers
Temporary foreign workers in Canada enjoy legal protection, receiving rights and safeguards equivalent to those granted to Canadians and permanent residents. Employers must provide workers with information about their rights, furnish signed copies of employment agreements before the first day of work, adhere to employment standards, and ensure a safe workplace, among other obligations.
Prohibitions and Responsibilities of Employers
Employers are expressly prohibited from forcing workers into unsafe or unauthorized tasks, pressuring them to work when sick or injured, or retaliating against them for reporting mistreatment. Additionally, employers are forbidden from confiscating passports or work permits, deporting workers, or making them reimburse recruitment-related fees.
In implementing these measures, Canada aims to strike a balance between addressing labor market needs and safeguarding the rights of temporary foreign workers.
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