In a dramatic policy shift, the federal government is poised to block applications for low-wage temporary foreign workers (TFWs), Employment and Workforce Development Minister Randy Boissonnault revealed on Tuesday. This bold move is aimed at ending rampant abuse and fraud within the program, a significant step in protecting both workers and Canadian businesses.
Boissonnault, addressing business associations, disclosed that the new policy would target jobs paying below the median hourly wage in each province and territory. These wages range from $24 per hour in Prince Edward Island and Nova Scotia to $39.24 per hour in the Northwest Territories.
“Abuse and misuse of the TFW program must end now. The health and safety of temporary foreign workers in Canada is my top priority,” Boissonnault declared in a powerful media statement. “Bad actors are exploiting vulnerable people and undermining legitimate businesses. We are taking strong measures to stop this.”
The revelation has sent shockwaves through key industries, including food and beverage, transportation, and agriculture. Kristina Farrell, CEO of Food and Beverage Canada, warned of a looming crisis. “If this applies to food and beverage manufacturing, it would be catastrophic,” she told CBC News. “At the end of the day, this will drive up food prices.”
The scale of TFW involvement in food processing is vast but varies yearly. In a crackdown on fraudulent activities, more than $2 million in fines were issued under the TFW program in the 2023-24 fiscal year—a staggering 36% increase from the previous year. Alarmingly, immigration lawyers report that employers are charging between $30,000 and $60,000 for bogus labour market impact assessments (LMIAs), despite the official fee being just $1,000.
Manan Gupta, president of Skylake Immigration in Brampton, Ontario, exposed this shocking exploitation. “We’ve seen outrageous fees for these positive LMIAs, which should only cost $1,000,” he revealed.
For Canadian entrepreneurs, this crackdown signals a commitment to fairness and integrity in the business landscape. Ensuring that only legitimate businesses benefit from the TFW program supports innovation, resilience, and sustainable growth across Canada.
This decisive action by the government underscores a broader push to clean up the system and safeguard the interests of Canadian workers and businesses alike. The impact of this policy could be profound, reshaping the landscape of low-wage employment in Canada.
