Canadian Federation of Independent Business debunks foreign worker program myths in new report

The report tackled five of the most common misconceptions about the program
Canadian Federation of Independent Business debunks foreign worker program myths in new report

The Canadian Federation of Independent Business has debunked five of the most common myths surrounded the country’s Temporary Foreign Worker Program in its research snapshot “Temporary Foreign Workers in Canada: Myths vs Realities.”

The five misconceptions the report addressed were as follows:

  • Employer addiction to TFWs
  • TFWs stealing jobs from Canadians
  • Suppression of Canadian wages by TFWs
  • Local housing issues compounded by TFWs
  • Widespread and unchecked abuse

According to CFIB president Dan Kelly, the narrative around the TFWP has “totally lost the plot over the past few months.”

“There are dozens of legitimate reasons why small businesses use the TFW program to fill persistent labour market gaps, often to the benefit of Canadian workers in the business,” Kelly said in a statement. “Temporary workers are always more costly than hiring locally available workers. Vilifying the businesses that need TFWs to fill the positions that Canadians don’t want does nothing to address program gaps, nor tackle the real issues weighing down our economy.”

CFIB’s director of national affairs, Christina Santini, explained that the program is structured to prevent TFWs from replacing Canadian workers.

“There are rigid processes and hefty costs that employers go through to fill a position. Simply scrapping or restricting the program won’t solve Canada’s labour market challenges,” Santini said.

Fifty-two percent of small business owners reported that hiring TFWs under the program allowed them to keep Canadians on the payroll while maintaining the supply of essential goods and services to the local market. Employment and Social Development Canada’s employer survey also revealed that for one in five respondents, employing TFWs bolstered their ability to recruit Canadians.

The CFIB told policymakers to maintain a focused TFWP and disregard misinformation. It also suggested the use of a grandfathering clause to retain TFWs currently in Canada.

The federation recommended that policymakers develop a permanent residency pathway for lower-skilled TFWs who have held on to legal status, obtained work experience in Canada, and are taxpayers. Moreover, it suggested that employers be allowed to justify why Canadians can’t be employed for certain positions in place of implementing a blanket refusal to process policy.

The CFIB recommended that the TFWP’s administrative burden be lightened. In addition, employers and the business community should be consulted before future amendments.

Earlier this year, the federal government doubled penalties issued to non-compliant employers under the TFWP in a bid to address misuse of the program.