New Reforms in the Temporary Foreign Worker Program
The Government of Canada has recently implemented significant changes to the Temporary Foreign Worker Program (TFWP), which will impact both workers and employers. Starting on November 8, 2024, the minimum wage for temporary foreign workers (TFW) in the high-wage stream will increase by 20% compared to the median wage in each province or territory. This adjustment means an increase of 5 to 8 dollars per hour, depending on the province. Specifically, in Quebec, this means that the minimum wage must now reach $32.97 per hour. This measure aims to align temporary workers’ wages with the expectations of the local labor market.
This wage increase is accompanied by stricter inspections and controls of working conditions to ensure that job offers meet the required standards. These controls aim to prevent the exploitation of foreign workers and ensure fair and transparent working conditions for all.
However, these measures pose new challenges for employers, both in Quebec and throughout Canada, where many businesses rely on foreign labor to fill positions in critical sectors of the economy. The new regulations make the high wage stream of the program practically unattainable. With the other measures underway, many companies will have to part ways with some of their temporary foreign workers due to their inability to meet the new conditions.
The Quebec Employers Council (CPQ) suggests that, with this new wage threshold, up to 70% of temporary foreign workers will now be classified as “low wage”. This change will create a significant imbalance in the labor market, and some businesses may be forced to close, according to an official CPQ statement. This situation could further weaken employers, who find themselves in a deadlock facing these growing requirements.
In response to these changes, Minister Randy Boissonnault stated that the goal is to find a balance between protecting workers’ rights and maintaining economic stability for local businesses. He argues that these measures will not only improve the conditions of temporary foreign workers but also encourage the hiring of Canadians, especially young people and underrepresented groups such as Indigenous peoples, women, and people with disabilities.
We disagree with this approach.
While we recognize the importance of protecting workers’ rights, these new measures put excessive pressure on SMEs that are already struggling to survive. By significantly increasing the wage threshold in Quebec and across Canada, the government makes access to the Temporary Foreign Worker Program nearly impossible for many companies that depend on this labor to operate. This policy risks causing business closures and endangering local jobs that indirectly depend on foreign labor.
The government is targeting the wrong issue. Instead of blocking access to foreign workers, it should focus on improving the transparency and efficiency of the program while maintaining support for employers who are the backbone of our economy. By imposing increasingly strict restrictions, the government is stifling businesses and SMEs, those same ones that survived thanks to the billions injected during the pandemic. Blocking the arrival of these essential workers, who represent only a small part of the total immigration to Canada, is not the solution. It is time to urgently review these policies before permanent closures become inevitable.
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