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Earlier this week, news broke that RBC plans to hire 45 temporary foreign workers through iGate, an IT contractor, to fill positions of employees who say that, in fact, they're training their own replacements.

RBC denies this, saying that no one will lose their jobs and that the Canadian employees will be moved to other departments.

In Alberta alone, 4,000 companies have been given approval to hire temporary foreign workers. Canada-wide, there are 338,000 temporary foreign workers.

Postmedia News walks you through the controversy:

WHAT IS A TEMPORARY FOREIGN WORKER?

Immigration Canada defines a temporary foreign worker as "workers (who) enter Canada to work temporarily in jobs that help Canadian employers address skill shortages."

Temporary foreign workers would, in principle, fill jobs such as carpenters, fruit pickers or managers in communication. These are areas that Human Resources and Skills Development Canada (HRSDC) says are suffering skills shortages.

WHAT DID RBC DO THAT CAUSED CONTROVERSY?

The reason for the temporary foreign worker program is so that companies can go outside of Canada when there is a clear absence of Canadians to fill the positions.

In this case, critics say they were being brought in to replace positions that were already filled. The fact that several jobs will themselves eventually move offshore – outsourcing – further clouds the issue.

It is unclear whether or not any rules were broken. HRSDC has launched an official probe into the hiring.

WHY WOULD A COMPANY PREFER FOREIGN WORKERS?

Briefly, it's about wages. "You can actually pay these temporary foreign workers 15-per-cent less, you don't have to pay for a lot of the other benefits, and the employer has a power balance that gets even more skewed because the workers are so much more vulnerable than residents," argues Jinny Sims, the federal NDP's immigration critic.

WHAT ARE THE ARGUMENTS FOR HAVING TEMPORARY FOREIGN WORKERS?

Under the true guidelines of the program, temporary foreign workers are seen as an aid to the economy.

"If, for instance, you run a cherry orchard, apparently it's very difficult to get Canadians to come and pick the cherries in the orchard," said Michael Hart, professor of international affairs at Carleton University in Ottawa. "You can hire temporary workers from Mexico to do that."

"The biggest reason to support it is if there are particular shortages, this is a quick and dirty way to address those needs," added Sharry Aiken, law professor at Queen's University in Kingston, Ont. "When there are very clear needs for the workers, there can be quite dramatic consequences if those jobs aren't filled."

William Watson, economics professor at McGill University in Montreal, said that "it's fair game for Canadian firms to play by the rules if that can cut their costs."

WHAT ARE THE ARGUMENTS AGAINST USING TEMPORARY FOREIGN WORKERS?

Some wonder if these workers are really necessary. Aren't they taking up jobs that Canadians can do?

"You can argue, if you are, say, a member of a labour union, that the guy who needs cherry-pickers from Mexico, if he paid a higher wage then Canadians would be willing to pick cherries," said Hart.

"Necessity is an interesting moral question. Economically, at the price that you have to pay in order to sell your cherries, you can't afford to pay $20 an hour."

"Particularly in cases where these are not temporary labour shortages – these are permanent labour shortages – why are we using a temporary foreign worker program to address what is in fact a permanent or chronic labour shortage?" said Aiken.

"It's more equitable if the workers are brought in with the view of becoming permanent residents."

WHAT WILL HAPPEN NEXT?

The Alberta Federation of Labour is starting an inquiry into how 4,000 companies in that province received permission to hire temporary foreign workers. That's in addition to the HRSDC probe.

Changes will probably come to the temporary foreign workers program, but it won't go away.

The Vancouver Sun,Wednesday, Apr 10 2013
Byline:  Karl Kofmel

OTTAWA—The federal government is investigating the possible abuse of the temporary foreign workers hiring program by Canadian companies and is expected to overhaul it to put greater onus on businesses to seek out local employees before bringing in foreign workers.

Businesses that are turning to foreign workers to fill employee shortages are also expected to be required in future to do more to train Canadians for the skilled job vacancies now going to people from overseas, a senior government official said.

The review of the Temporary Foreign Worker Program has taken on new urgency as Prime Minister Stephen Harpers' government faces a firestorm of complaints that its policies are encouraging firms in Canada to replace Canadians with foreign workers and drive down wages.

"The Conservatives are enabling companies to exploit the program and avoid hiring Canadian workers," NDP deputy immigration critic Sadia Groguhé said Wednesday. "The point of the program is to complement Canadian workers, not substitute them."

Outrage over the government's foreign hiring plan blew up after it emerged that the Royal Bank of Canada was planning to shift the information technology work done by 45 Canadian employees to foreigners contracted by iGate, a U.S.-based outsourcing firm.

But the issue has been gathering steam since last year, when HD Mining International Ltd., a Chinese-backed coal mining operation in British Columbia, brought in 201 miners from China under the temporary workers program.

The federal government is investigating the applications leading up to the staffing changes at RBC and is also conducting a wider look at the Temporary Foreign Worker Program, which has doubled in the last decade to 338,000 workers.

In the March 21 federal budget, the government said it planned to reform the program to ensure foreign workers are brought in only when Canadians are "genuinely" not available. The new rules will require employers to make more extensive efforts — including more advertising — to hire Canadians before becoming eligible to bring in foreign workers.

The government also wants to work with employers who "legitimately" rely on foreign workers to ensure the companies have a plan to move to a Canadian workforce, the budget said.

As well, the reforms would require companies to pay user fees to apply for permission to bring in foreign workers. But officials haven't said when the new rules will be put in place.

The government is also concerned about another recent measure for bringing in foreign workers quickly. The Accelerated Labour Market Opinion (ALMO) is a way to fast-track applications for skilled workers needed on a temporary basis by Canadian companies.

The Alberta Federation of Labour focused attention on this aspect of Canada's temporary worker arrangements after it obtained a list of 4,800 companies — many in the services industry — that were approved to bring in temporary help under ALMO last year.

"You look down this list and it's McDonalds, Tim Hortons, A&W, Subway Sandwiches," said Alberta Federation of Labour president Gil McGowan. "Are we supposed to believe that these are 'high-skill' employment opportunities?"

The government is looking at how "skilled workers" are defined under this program, a senior official said. Currently, a manager or supervisor in a service business can qualify as a skilled worker under the program, the official noted.

The government is "committed to fixing the (temporary worker) program to ensure that Canadians have first crack at jobs in Canada," a spokesperson for Human Resources Minister Diane Finley said. "The program exists to address real and acute labour shortages in certain sectors and regions across the country on a temporary basis. It was never meant to replace Canadians with foreign workers."

The Harper government is also concerned about another federal program called an intra-company transfer, which allows multinational companies to temporarily shift employees to Canada without the need to convince Ottawa that no Canadian can do the job. This measure is also being examined to see if it is being abused by companies wanting to avoid the usual procedures for bringing in foreign employees, the official said.

Ottawa Star, Wednesday Apr 10 2013
Byline: Les Whittington

The B.C. Federation of Labour has joined its counterpart in Alberta in a call for an immediate freeze on the country's accelerated process for temporary foreign workers applications.

"The fast track program should stop immediately," said Jim Sinclair, president of the BCFL. "The whole program should have a moratorium placed on it and there should be a real public review."

Sinclair was reacting to the publication of a list of more than 4,000 employers for which the federal government approved applications to bring temporary workers into Canada via an accelerated process. The document was obtained by the Alberta Federation of Labour through an Access to Information request.

According to a Service Canada website, the program, called "Accelerated Labour Market Opinion," is a means for employers to hire "temporary foreign workers for high skilled occupations."

The list obtained by the AFL covers the initial eight months following the program's launch (April 25 to December 18, 2012). It includes hundreds of companies that are believed to have used the accelerated process to hire low-skilled labour. For example, convenience stores, gas stations, and a host of restaurants such as Tim Hortons, Taco Time, Subway, and A & W.

Sinclair argued that while the temporary foreign workers program was intended to only be used as a last resort, it's become the first choice for thousands of companies across the country.

"It is all about cheap labour and depressing the wages of Canadians," he said. "Stephen Harper and the Conservatives have little-to-no respect for people who work hard for a living."

Sinclair called attention to an April 2012 rules change by Canada's human resources minister, Diane Finley, which permits employers to pay temporary foreign workers 15 percent less than average wages.

"It's all about a government that sees its job as to make the rich richer and to make the middle class disappear," he added.

Sinclair stressed that the BCFL is not against immigration. "If it's necessary to bring people to Canada, they should come here as immigrants, with the same rights as everybody else," he said.

A representative for Human Resources and Skills Development Canada could not be reached by deadline. Kelly Leitch, parliamentary secretary for the minister of human resources, told CBC News that the government was looking into the matter. "We have some significant concerns about what's going on in the temporary foreign workers program," she said.

The 2013 federal budget states that the government is "taking action to reform Canada's temporary foreign workers program." The government plans to "Work with employers to ensure that temporary foreign workers are relied upon only when Canadians genuinely cannot fill those jobs," it reads.

It's estimated that there are 70,000 temporary foreign workers in British Columbia and over 300,000 across the country. Nationally, that's up from 101,000 in 2002.

Straight.com, Wednesday, Apr 10, 2013
Byline: Travis Lupick 

Earlier this week, news broke that RBC plans to hire 45 temporary foreign workers through iGate, an IT contractor, to fill positions of employees who say that, in fact, they're training their own replacements.

RBC denies this, saying that no one will lose their jobs and that the Canadian employees will be moved to other departments.

In Alberta alone, 4,000 companies have been given approval to hire temporary foreign workers. Canada-wide, there are 338,000 temporary foreign workers.

Postmedia News walks you through the controversy:

WHAT IS A TEMPORARY FOREIGN WORKER?

Immigration Canada defines a temporary foreign worker as "workers (who) enter Canada to work temporarily in jobs that help Canadian employers address skill shortages."

Temporary foreign workers would, in principle, fill jobs such as carpenters, fruit pickers or managers in communication. These are areas that Human Resources and Skills Development Canada (HRSDC) says are suffering skills shortages.

WHAT DID RBC DO THAT CAUSED CONTROVERSY?

The reason for the temporary foreign worker program is so that companies can go outside of Canada when there is a clear absence of Canadians to fill the positions.

In this case, critics say they were being brought in to replace positions that were already filled. The fact that several jobs will themselves eventually move offshore – outsourcing – further clouds the issue.

It is unclear whether or not any rules were broken. HRSDC has launched an official probe into the hiring.

WHY WOULD A COMPANY PREFER FOREIGN WORKERS?

Briefly, it's about wages. "You can actually pay these temporary foreign workers 15-per-cent less, you don't have to pay for a lot of the other benefits, and the employer has a power balance that gets even more skewed because the workers are so much more vulnerable than residents," argues Jinny Sims, the federal NDP's immigration critic.

WHAT ARE THE ARGUMENTS FOR HAVING TEMPORARY FOREIGN WORKERS?

Under the true guidelines of the program, temporary foreign workers are seen as an aid to the economy.

"If, for instance, you run a cherry orchard, apparently it's very difficult to get Canadians to come and pick the cherries in the orchard," said Michael Hart, professor of international affairs at Carleton University in Ottawa. "You can hire temporary workers from Mexico to do that."

"The biggest reason to support it is if there are particular shortages, this is a quick and dirty way to address those needs," added Sharry Aiken, law professor at Queen's University in Kingston, Ont. "When there are very clear needs for the workers, there can be quite dramatic consequences if those jobs aren't filled."

William Watson, economics professor at McGill University in Montreal, said that "it's fair game for Canadian firms to play by the rules if that can cut their costs."

WHAT ARE THE ARGUMENTS AGAINST USING TEMPORARY FOREIGN WORKERS?

Some wonder if these workers are really necessary. Aren't they taking up jobs that Canadians can do?

"You can argue, if you are, say, a member of a labour union, that the guy who needs cherry-pickers from Mexico, if he paid a higher wage then Canadians would be willing to pick cherries," said Hart.

"Necessity is an interesting moral question. Economically, at the price that you have to pay in order to sell your cherries, you can't afford to pay $20 an hour."

"Particularly in cases where these are not temporary labour shortages – these are permanent labour shortages – why are we using a temporary foreign worker program to address what is in fact a permanent or chronic labour shortage?" said Aiken.

"It's more equitable if the workers are brought in with the view of becoming permanent residents."

WHAT WILL HAPPEN NEXT?

The Alberta Federation of Labour is starting an inquiry into how 4,000 companies in that province received permission to hire temporary foreign workers. That's in addition to the HRSDC probe.

Changes will probably come to the temporary foreign workers program, but it won't go away.

Vancouver Sun, Wednesday, Apr 10 2013
Byline: Karl Kofmel, Postmedia News

The Alberta Federation of Labour called for an inquiry Tuesday after it obtained a government list of more than 4,000 companies given approval to hire temporary foreign workers last year, many in the service industry.

"You look down this list and what you see is McDonald's, Tim Hortons, and Subway. This list goes on. It stretches the bounds of credibility that all of these employers have been using temporary foreign workers to hire skilled workers," said Gil McGowan, president of the Alberta Federation of Labour, on CBC News Network's Power & Politics.

McGowan's comments come after a CBC story this week of one man's experience training foreign workers to take his job drew a fire storm of controversy and a hard look at Canada's temporary foreign workers program.

David Moreau told the CBC he and 42 other IT workers at RBC are being replaced by a foreign workforce.

"The new people are in our offices and we are training them to do our jobs," he said. "That adds insult to injury."

The head of RBC denied the bank is replacing Canadian workers with temporary foreign workers. Foreign workers were hired by iGate, an outsourcing firm, which has a contract with the bank to provide IT services.

Kelly Leitch, parliamentary secretary for the minister of human resources and skills development, said the government is looking into it.

"We have some significant concerns about what's going on in the temporary foreign workers program and that's why in (the budget) we've committed to fix the challenges that exist so Canadians can be better connected to jobs."

Labour economist Erin Weir says that kind of review is essential: "This should lead to a broader debate about the temporary foreign worker program. Is it really addressing labour shortages? Or is it undermining job opportunities and wages in Canada?"

The program began in 1973 to fill a gap in the labour market for jobs Canadians could not or would not fill — domestic workers and agricultural workers as well as highly skilled jobs, such as specialist physicians and professors.

"The idea of having a temporary foreign worker program is legitimate," according to Prof. Ian Lee at Carleton University's Sport School of Business. "The Germans, other European countries and the U.S. all have this kind of program. The issue is to have the right checks and balances to ensure it isn't abused."

But critics suggest those checks and balances have been undermined by recent changes to the program. The high-skill segment made up more than 50 per cent of temporary foreign workers, but all that changed in 2002. That's when the federal government under the Liberals began a pilot project adding a new category of "low skilled workers."

According to a recent report by the faculty of business at Athabasca University in Edmonton, the "low skilled category now dominates the temporary foreign workforce, with the top categories now including food counter attendants, kitchen helpers, cooks; construction trades, helpers and labourers, light-duty cleaners and administration workers including information technology."

In 2006, the new Conservative government expanded the pilot project, and added "fast-tracking" for some jobs in Alberta and British Columbia. The new list of jobs called "regional occupations under pressure," reduced the obligation by employers to seek out Canadian workers first.

While most think the program is meant to fill jobs in remote parts of resource-rich Western Canada, some of the largest increase in temporary foreign workers have been in cities.

Since 2008, permits for temporary foreign workers in Toronto increased by 60 per cent, in Montreal by 87 per cent and the Atlantic Provinces saw an 80 per cent increase, according to data from Citizenship and Immigration Canada.

The total number of temporary foreign workers has doubled in the last decade, to 338,189 workers.

"We now have about as many temporary workers in Canada as the entire workforce of New Brunswick," said Weir, an economist with the United Steel Workers Union.

"I think part of the problem is that a lot of companies are going through the motions of pretending to hire Canadians, in order to gain those Labour Market Opinions that they need to get temporary foreign workers."

Weir suggests the foreign worker program often allows employers to fill vacancies without providing training opportunities or raising wages to attract workers.

He points to recent studies showing Canadian companies underperform compared to businesses in other OECD countries, including the U.S., when it comes to training and development of its own workforce.

All Canadians could pay for the expansion of this category of worker, according to Weir: "Expanding labour supply, without an offsetting expansion of demand, increases unemployment and decreases wages."

Another change to the program last year allows employers to pay workers 15 per cent less than Canadian workers. Carleton's Ian Lee says allowing lower wages could undermine Canadians' support for the program.

"The problem is it creates the perception that it's being used to undermine organized labour or undermine the market wage rate in that job classification. It's going to discourage public support when Canadians realize an employer can do that."

"Canadian workers are being displaced, training is being ignored and the TFW program is becoming the first choice rather than a tool of last resort," said the Alberta Federation of Labour's McGowan.

Kelly Leitch defends the program.

"When we don't have a Canadian available because there actually isn't anyone available, it's important that we have access to a good program, a sound temporary foreign worker program; that skilled labour can be brought into the country to make sure that firms can thrive."

She said the government is committed to reviewing the program, but had no details on when that review would be complete.

Perhaps the courts will get there first.

On Tuesday, HD Mining International was in a Vancouver courtroom, defending its decision to hire 201 workers from China for its coal mine in Tumbler Ridge, B.C.

Two B.C. unions launched the case against the company.

Brian Cochrane, of the International Union of Operating Engineers, hopes the case will result in changes.

"I think that this case is going to give us a chance to look under the hood of the whole temporary foreign worker program."

CBC News, Wednesday, Apr 10 2013

The RBC scandal is the “tip of the iceberg,” a unionist says; taxpayers have a right to know who’s benefiting and where the real labour shortages are.

The RBC scandal is the "tip of the iceberg," a unionist says; taxpayers have a right to know who's benefiting and where the real labour shortages are.

Ottawa must make Canada's temporary foreign workers program more transparent and accountable by publicizing the names of employers who bring in migrant workers and the jobs they fill, critics say.

Canadian taxpayers have a right to know which employers are benefiting from the $35.5 million a year taxpayers pay to process their applications for a "labour market opinion," say major labour groups. Potential employers aren't charged a fee for this service, which is required to justify their claim that they need to bring in foreign workers to fill a need.

"Transparency is incredibly desirable for Canadians. This can act as a check against disingenuous Canadian employers," said Karl Flecker of the Canadian Labour Congress (CLC).

"If the labour shortage is genuine, why would employers not want the data made public, so the government can take on job training strategies? By keeping it quiet, they are not helping our work force development."

The call came amid an ongoing investigation by Human Resources and Skills Development Canada (HRSDC) into the use of foreign workers by oursourcing company iGate to replace 45 Canadian employees in information technology at the Royal Bank of Canada.

Flecker said the CLC has been trying in vain to obtain information from the government about participating employers since 2006. That was the year the temporary foreign worker program began to explode as it was opened up to "every legally recognized occupation" by the Conservative government.

"It's important that we know who is applying so we can identify if there is a genunine shortage," Flecker explained. "Both the federal government and the provinces are understaffed with their labour inspectors. (The unions) have the ability to assist them to meet with migrant workers about their health and safety and community integration."

Employers may argue their hiring practices are private commercial information. But University of Toronto law professor Audrey Macklin points out that government is accountable to the taxpayers who fund the program.

"All Canadians have an interest in this," Macklin said. "The real story here is not whether employers are behaving badly. They are basically responding, in a predictable way, to the incentive deliberately created by a government policy.

"When you make it easier and faster to bring in migrant workers and allow employers to pay them 5 to 15 per cent less, that's a predictable outcome."

Naveen Mehta, general counsel for United Food and Commercial Workers Canada, said his union has also been denied access to the employer information.

"We've been frustrated along the way (trying) to access the information. This will absolutely be a beneficial piece of a larger, transparent regime," said Mehta, whose group has been lobbying to get a migrant worker commission established to adjudicate on the employment of foreign temp workers.

Mehta said some Canadian employers set unattainable qualification requirements in their recruitment to justify turning to migrant workers. He gave as an example Vancouver-based HC Mining, which demanded Mandarin-speaking miners and got approval to bring in 201 workers from China.

Through an access to information request, the Alberta Federation of Labour recently obtained a long list of employers whose application for temporary foreign workers was fast-tracked and approved by the federal government under the Accelerated Labour Market Opinion process.

The list, which does not include regular LMOs, includes 900 Ontario-based employers ranging from restaurants to retailers, universities, charitable groups, IT companies such as CGI Information Systems & Management Consultants, accounting firms such as Pricewaterhouse Coopers, financial institutions like the Bank of Canada and even tae kwan do academies.

AFL president Gil McGowan said many of these LMO applications have been "rubber-stamped."

He believes the scandals at RBC and HC Mining are just the tip of the iceberg.

"This isn't being used as a stop-gap, and it isn't a last resort for remployers," said McGowan, who is calling for an inquiry into the migrant worker program.

Both HRSDC and Citizenship and Immigration Canada did not respond to the Star's inquiry about employers who received favourable LMOs.

Related: The $1-billion-a-year company at the heart of the RBC temporary foreign worker controversyThe $1-billion-a-year company at the heart of the RBC temporary foreign worker controversy.

TheStar, Wednesday, Apr 10 2013
Byline: Nicholas Keung, Immigration reporter

The budget cuts to post-secondary education will not only trickle down and affect the entire Lethbridge economy, they will also have a negative impact on the quality of education and threaten the autonomy and free speech that universities are founded on.

Those were some of the thoughts of several speakers scheduled to talk at a special session of the Southern Alberta Council on Public Affairs Tuesday evening.

The session addressed the question of whether the cuts to post-secondary education are justifiable. The University of Lethbridge's operating budget will be cut by about $12 million and Lethbridge College's operating budget by nearly $3.5 million.

Chris Nicol, economics professor and dean of Arts and Sciences, said the provincial budget and the letters of expectation that flowed to institutions in the aftermath have created both financial and philosophical challenges. He said he'd like to see the major universities collaborate more closely to craft a response to government.

"It's clearly bad news. From the financial side of things we had a written commitment from this government that certain things would happen this year and they've completely abrogated that agreement," Nicol said. "From a philosophical perspective, the Minister (Thomas Lucaszuk) almost seems to want to use the system for political purposes, tied with their own philosophy within the governing party and that's never what universities have been about."

In her role as the director of policy analysis for the Alberta Federation of Labour, Shannon Phillips sees how the cuts will trickle down.

"It's not just the support staff, the academic staff and the students and their families that this will have an effect on, but in an economy the size of Lethbridge's where post-secondary institutions are such a large employer and a large source of demand for goods and services, there are going to be spin-off effects through our city that have a great impact on the private sector, on small business, on new home starts, on home sales," she said.

Julia Adolf, vice-president academic with the U of L Students' Union, said the province's budget is not student-friendly, despite the government's assertion to the contrary. While tuition fees won't increase this year that could easily change next year.

"We could see the cap removed. We're very worried about that," she said, adding students are also worried that mandatory non-instructional fees will be hiked to compensate for the cuts.

The cuts will lead to larger class sizes, fewer course offerings and negatively affect student services, such as library hours or registrar services, Adolf said.

"They're very much talking about the homogenization of our university system and we're very scared that's going to lead to devaluing of our degrees," she said.

Bill Ramp, a sociology professor, said he has grave concerns about the cuts as they threaten the role post-secondary institutions play in a democracy. The seeming irrationality of the move may lead to an overall weakening of the system before their autonomy is eventually threatened.

"When you undermine the autonomy of universities in such a way that they threaten to become little more than a voice for the policy of the governing party of the day what you're doing is destroying another part of public space," he said. "If we're not prepared to defend free speech and autonomous research then where are we?"

Lethbridge Herald, Wednesday, Apr 10 2013
Byline: Caroline Zentner

Labour economist says program allows firms to keep wages low

The Alberta Federation of Labour called for an inquiry Tuesday after it obtained a government list of more than 4,000 companies given approval to hire temporary foreign workers last year, many in the service industry.

"You look down this list and what you see is McDonald's, Tim Hortons, and Subway. This list goes on. It stretches the bounds of credibility that all of these employers have been using temporary foreign workers to hire skilled workers," said Gil McGowan, president of the Alberta Federation of Labour, on CBC News Network's Power & Politics.

McGowan's comments come after a CBC story this week of one man's experience training foreign workers to take his job drew a fire storm of controversy and a hard look at Canada's temporary foreign workers program.

David Moreau told the CBC he and 42 other IT workers at RBC are being replaced by a foreign workforce.

"The new people are in our offices and we are training them to do our jobs," he said. "That adds insult to injury."

The head of RBC denied the bank is replacing Canadian workers with temporary foreign workers. Foreign workers were hired by iGate, an outsourcing firm, which has a contract with the bank to provide IT services.

Kelly Leitch, parliamentary secretary for the minister of human resources and skills development, said the government is looking into it.

"We have some significant concerns about what's going on in the temporary foreign workers program and that's why in (the budget) we've committed to fix the challenges that exist so Canadians can be better connected to jobs."

Labour economist Erin Weir says that kind of review is essential: "This should lead to a broader debate about the temporary foreign worker program. Is it really addressing labour shortages? Or is it undermining job opportunities and wages in Canada?"

Program has ballooned

The program began in 1973 to fill a gap in the labour market for jobs Canadians could not or would not fill — domestic workers and agricultural workers as well as highly skilled jobs, such as specialist physicians and professors.

"The idea of having a temporary foreign worker program is legitimate," according to Prof. Ian Lee at Carleton University's Sport School of Business. "The Germans, other European countries and the U.S. all have this kind of program. The issue is to have the right checks and balances to ensure it isn't abused."

Gil McGowan, president of the Alberta Federation of Labour, says a government list showing thousands of jobs going to Temporary Foreign Workers stretches the credibility of the program.Gil McGowan, president of the Alberta Federation of Labour, says a government list showing thousands of jobs going to Temporary Foreign Workers stretches the credibility of the program. (CBC)

But critics suggest those checks and balances have been undermined by recent changes to the program. The high-skill segment made up more than 50 per cent of temporary foreign workers, but all that changed in 2002. That's when the federal government under the Liberals began a pilot project adding a new category of "low skilled workers."

According to a recent report by the faculty of business at Athabasca University in Edmonton, the "low skilled category now dominates the temporary foreign workforce, with the top categories now including food counter attendants, kitchen helpers, cooks; construction trades, helpers and labourers, light-duty cleaners and administration workers including information technology."

In 2006, the new Conservative government expanded the pilot project, and added "fast-tracking" for some jobs in Alberta and British Columbia. The new list of jobs called "regional occupations under pressure," reduced the obligation by employers to seek out Canadian workers first.

The government document obtained by the Alberta Federation of Labour suggests employers such as fast food operators like McDonald's and Tim Hortons are using this accelerated program to bring in cheap labour.

The program is aimed at higher-skilled workers, but they don't have to prove they've advertised for Canadians to fill the jobs first, said Gil McGowan.

"They don't have to run over the same checks and balances and that's why we're concerned, because clearly this process is being abused by service sector employers. And it's important to note that the government wants to expand the accelerated program, which we think would be a disaster."

Cities taking more temporary foreign workers

While most think the program is meant to fill jobs in remote parts of resource-rich Western Canada, some of the largest increase in temporary foreign workers have been in cities.

Since 2008, permits for temporary foreign workers in Toronto increased by 60 per cent, in Montreal by 87 per cent and the Atlantic Provinces saw an 80 per cent increase, according to data from Citizenship and Immigration Canada.

The total number of temporary foreign workers has doubled in the last decade, to 338,189 workers.

"We now have about as many temporary workers in Canada as the entire workforce of New Brunswick," said Weir, an economist with the United Steel Workers Union.

"I think part of the problem is that a lot of companies are going through the motions of pretending to hire Canadians, in order to gain those Labour Market Opinions that they need to get temporary foreign workers."

Weir suggests the foreign worker program often allows employers to fill vacancies without providing training opportunities or raising wages to attract workers.

He points to recent studies showing Canadian companies underperform compared to businesses in other OECD countries, including the U.S., when it comes to training and development of its own workforce.

All Canadians could pay for the expansion of this category of worker, according to Weir: "Expanding labour supply, without an offsetting expansion of demand, increases unemployment and decreases wages."

Allowing cheaper wages

Another change to the program last year allows employers to pay workers 15 per cent less than Canadian workers. Carleton's Ian Lee says allowing lower wages could undermine Canadians' support for the program.

"The problem is it creates the perception that it's being used to undermine organized labour or undermine the market wage rate in that job classification. It's going to discourage public support when Canadians realize an employer can do that."

"Canadian workers are being displaced, training is being ignored and the TFW program is becoming the first choice rather than a tool of last resort," said the Alberta Federation of Labour's McGowan.

Kelly Leitch defends the program.

"When we don't have a Canadian available because there actually isn't anyone available, it's important that we have access to a good program, a sound temporary foreign worker program; that skilled labour can be brought into the country to make sure that firms can thrive."

She said the government is committed to reviewing the program, but had no details on when that review would be complete.

Perhaps the courts will get there first.

On Tuesday, HD Mining International was in a Vancouver courtroom, defending its decision to hire 201 workers from China for its coal mine in Tumbler Ridge, B.C.

Two B.C. unions launched the case against the company.

Brian Cochrane, of the International Union of Operating Engineers, hopes the case will result in changes.

"I think that this case is going to give us a chance to look under the hood of the whole temporary foreign worker program."

CBC News, Wednesday, Apr. 10, 2013
Byline: Cindy Pfeffer

Labour unions in B.C. and Alberta are pushing for reforms to the Temporary Foreign Worker (TFW) program, as a judicial review begins in Federal Court into the process that allowed HD Mining to hire Chinese nationals at a coal mine in northeastern B.C.

"This judicial review of the HD Mining permits will be the most comprehensive examination of Canada's Temporary Foreign Worker Program ever conducted," said Brian Cochrane, business manager of the International Union of Operating Engineers (IUOE) Local 115.

"We know that there are over 300,000 Temporary Foreign Workers employed in Canada today and 70,000 of those in B.C., but we've never seen the internal workings of how the federal government makes decisions on granting work permits to companies requesting them,"

The IUOE and the Construction and Specialized Workers Union (CSWU) Local 1611 unions will be in Federal Court in Vancouver for a judicial review between April 9 and 11.

The judicial review will investigate the process within Human Resources and Services Development Canada (HRSDC) that granted HD Mining permission to import 201 Chinese nationals at the $300 million Murray River underground coal mine, near Tumbler Ridge, B.C.

The unions argue HRSDC failed to ensure there were no Canadians to do the work. In addition, they claim that the TFWs are being offered wages far below prevailing rates.

HD Mining received at least 300 resumes from Canadian citizens or permanent residents, who applied to work at the proposed project.

The company did not hire one Canadian applicant to work at the mine, claiming they were not qualified.

"The documents we have already obtained through our court action clearly show the Temporary Foreign Worker Program is not working for Canadians," said Mark Olsen, business manager of the CSWU Local 1611.

"I suspect that other documents being disclosed for the first time in court this week – likely on Wednesday when we make our arguments – will provide even more evidence that our concerns are just the tip of the proverbial iceberg."

Given all the problems that have already been revealed in this case, Olsen wants the federal government to make several significant changes to the TFW program.

"Available jobs need to go to Canadians first and Canadians need to be skilled up in order to do the work," he said.

"There has to be a real shortage determined and that is where unions come in. Unions should be involved to determine if there is a real shortage."

Once a real shortage is identified, Olsen said the foreign workers have to be brought into the country properly, not by brokers or companies that will exploit them.

Once in Canada, foreign workers need to be paid to the full Canadian wages and benefits standard, he said.

In addition, there needs to be enforcement by the federal and provincial government.

Finally, there needs to be a path toward citizenship.

"That's what needs to happen across the country," said Olsen. "The federal and provincial governments need to get their act together."

After obtaining a list of fast-tracked TFW applications using an Access to Information request, the Alberta Federation of Labour (AFL) agrees that the problems with HD Mining are just the tip of the iceberg.

The document lists all approved TFW applications in the first eight months of the new Accelerated Labour Market Opinion (ALMO) process.

According to the AFL, more than 2,400 ALMO guest-worker permits were granted to fast-food restaurants, convenience stores and gas stations between April 25 and Dec. 18, 2012.

These permits are supposed to be reserved for highly-skilled employment.

The AFL is calling on the Auditor General of Canada to conduct a full audit of the ALMO approval process.

"Alberta is leading the way in misusing this approval process," said AFL president Gil McGowan.

"This isn't being used as a stop-gap, and it isn't a last resort for employers."

More than 54 per cent (2,640) of the ALMO approvals in the country were for Alberta-based employers. Of these, AFL researchers said more than 58 per cent (1,542) were questionable.

The list of businesses in Alberta who received ALMO approvals included 33 A&W restaurants.

The Journal of Commerce, Monday, Apr. 08, 2013
Byline: Richard Gilbert, staff writer

Unions Stand Up for Majority of Albertans

In the lead up to Alberta’s 2013 budget, Alberta’s public sector unions worked together to advance the interests of the majority of Albertans.

The Alberta Federation of Labour, Canadian Union of Public Employees, Alberta Teachers’ Association, Alberta Union of Provincial Employees, United Nurses of Alberta and the Health Sciences Association of Alberta presented a united front against austerity policies and draconian cuts.

Polling, conducted by Environics in advance of the provincial budget showed that more than 70 per cent of Albertans reject public service cuts. More than three quarters of those polled agreed that there should be an increase on taxes for wealthy Albertans and for corporations. The majority of Albertans believe that the province should be investing more in health care, education and other services.

“Albertans aren’t as conservative as Alison Redford seems to believe,” AFL president Gil McGowan said. “She needs to listen better. Not to the radical tea party Tories, but to the majority of Albertans who are quietly progressive, and who want this province to be healthy and prosperous.”

LINK TO AUDIO

LINK TO PRESS RELEASE

STRIKE! The Musical

The Alberta Federation of Labour is proud to be bringing STRIKE! The Musical to Edmonton for its Alberta premiere.

This award-winning theatrical production, which tells the story of the 1919 Winnipeg General Strike, will be at the Timms Centre for the Performing Arts April 24 – April 28.

“When I saw Strike! three years ago in Winnipeg, I knew we needed to bring it to Alberta,” AFL president Gil McGowan said. “The 100^th anniversary of the AFL was the perfect opportunity to organize this production. It’s an important story about the history of Canadian labour, and it’s one that inspires pride in the activism and work that our member unions do.”

For more information or to order tickets, please visit www.strikemusical.com

Solidarity with Post-Secondary Education

More than 500 students, workers, educators and activists marched on the legislature on March 15.

The rally, which was organized by the Coalition for Action on Post-Secondary Education, was protesting the massive cuts the Alberta Government imposed on universities and colleges throughout the province. The University of Alberta faces a 7.2 per cent cut.

Alberta Federation of Labour president Gil McGowan spoke at the rally, noting that the province’s economy depends on having a quality education system.

Urgent Action

Join us at the AFL’s 9th Biennial Convention

More than 500 labour activists, leaders and delegates will gather at the Shaw Conference Centre in downtown Edmonton from April 25 – 28 for the Alberta Federation of Labour’s 9^th Biennial Convention.

The convention, which has the theme “Unions Stand on Guard for Thee,” will examine how the labour movement has helped create, and protect the prosperous, inclusive society of which Canadians are rightfully proud.

Coming from all corners of Alberta, delegates will celebrate the achievements of unions, hear from dozens of speakers, and help chart the direction of our further growth.

Registration starts Wednesday, April 24 and continues on Thursday, April 25.

2013 AFL Convention runs Thursday, April 25, 2013 - Sunday, April 28, 2013.

Convention Committees meet Wednesday, April 24.

AFL Council meets Tuesday, April 23.

Convention venue is the Shaw Conference Centre
Convention hotel is the Crowne Plaza Chateau Lacombe

Location:  Shaw Conference Centre, Edmonton
Contact:  Maureen Werlin at [email protected] or 780-483-3021

Events

April 28 – International Day of Mourning for Dead and Injured Workers

May 1 – May Day March

May 3 – Deadline to register for Summer Labour School

June 14 - Deadline to register AFL Kids Camp

Did you know ...

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  After production and development costs are factored in, Alberta only collects 54 per cent of the the excess profit from heavy oil production. By comparison, Norway collects 80 per cent, Russia collects 73 per cent and Angola collects 71 per cent.
• Once ravaged by debt and war, higher oil royalties have helped Angola turn a budget deficit of 8.6 per cent of GDP in 2009 into a surplus of 12 per cent of GDP in 2012.
• Alberta has the highest pay gap in Canada. Alberta women working full year and full time earn a median 68 per cent of what men earn. The pay gap is reduced for women in unions – to about 85 per cent of what men earn.
• According to Environics polling conducted in February, 77 per cent of Albertans support increased taxes on corporations and those making more than $200,000.