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Fast-food chains and convenience stores are using a loophole in Canada's temporary foreign worker program to keep labour costs down, says an Alberta labour group.

Labour spokesperson Gil McGowan says fast food chains are hiring unskilled foreign workers using loopholes in a process set up to fast-track highly-skilled workers.Labour spokesperson Gil McGowan says fast food chains are hiring unskilled foreign workers using loopholes in a process set up to fast-track highly-skilled workers. (CBC)

Documents reveal that more than half of the temporary foreign workers hired through a new fast-track process to bring in highly-skilled workers ended up working at fast-food restaurants and convenience stores, said Alberta Federation of Labour president Gil McGowan.

"It stretches the bounds of crediblity that companies like A&W, McDonalds would be hiring high-skilled workers," McGowan said.

The document obtained through an access-to-information request shows restaurants, stores and gas stations across the country were granted more than 2,400 guest worker permits under the Accelerated Labour Market Opinion process between April 25 and Dec. 18, 2012.

"These applications have been rubber stamped in as little as 10 days and the vast majority aren't subjected to any kind of review," McGowan said.

More than half of all workers, 54 per cent, who were hired under the Accelerated Labour Market Opinion during the period ended up in Alberta.

Of those, almost 60 per cent were flagged as inappropriate under the process, McGowan said.

He said it's clear to him companies are abusing the system, giving jobs to foreign workers that Canadians should have as the Harper government turns a blind eye.

"They're using the temporary foreign workers program to keep wages low," McGowan said.

The program allows employers to pay workers up to 15 per cent less than Canadians.

McGowan wants the Auditor General to open an investigation into the fast-track process.

A spokesperson told CBC News the Minister of Human Resources and Skills Development is concerned with the recent issues involving the Temporary Foreign Worker program and said officials will look into any evidence that the program is being misused.

The AFL's accusations come on the heels of a CBC Investigation revealing the Royal Bank of Canada is hiring foreign workers while laying off dozens of its Canadian employees.

CBC News Edmonton, Tuesday, Apr. 09, 2013
With files from CBC's James Hees

This document, FOIP A-2012-00448 SS_ALMOs under the TFW program_2013Feb04, obtained by the Alberta Federation of Labour through an Access to Information request, lists all approved TFW applications in the first eight months of the new Accelerated Labour Market Opinion (ALMO) process.

EDMONTON - A labour group is calling for a review of a federal program designed to help employers quickly hire temporary foreign workers for high-skill jobs.

The Alberta Federation of Labour says since the program was announced last April, more than 2,400 permits have been approved to hire foreign workers for low-skill service industry positions.

Federation president Gil McGowan says access to information documents show the employers include fast-food restaurants, convenience stores and gas stations.

"You look down this list, and it's McDonald's, Tim Hortons, A&W, Subway," McGowan said Tuesday.

"Are we supposed to believe that these are 'high-skill' employment opportunities?"

Some of the other businesses listed in the documents include The Big Moo Ice Cream Parlour in Alberta, Burger King in British Columbia and Pizza Express in Ontario.

McGowan said the permits are being used to replace Canadian workers and drive down wages.

He has sent a letter, along with the documents, to federal auditor general Michael Ferguson. It asks for an audit of the government's approval process.

Under the federal Accelerated-Labour Market Opinion (ALMO) program, employers can pay foreign workers up to 15 per cent less than Canadian workers. The program is designed to process permits to hire temporary foreign workers for high-skill jobs, including the skilled trades, within 10 business days.

"The percentage of ALMO approvals for businesses that largely employ low-skilled workers appears to be in direct contradiction to the stated parameters of the program," McGowan writes in the letter.

Officials with Human Resources and Skills Development Canada did not respond to a request for comment.

McGowan said just over half of the approvals by the department are for businesses in Alberta, including 33 A&W restaurants.

Information posted on the department's website says permits under ALMO have been approved for every jurisdiction in the country except for Prince Edward Island, the Yukon and Nunavut.

Dan Kelly, president of the Canadian Federation of Independent Business, said many small- and medium-size employers need temporary foreign workers to fill jobs. The need is most pressing in Western Canada and in rural communities right across the country, he said.

"I take it as a positive that businesses of all skill levels are able to access this expedited process. Our members really need those expedited processes," Kelly said from Toronto.

"We are moving into large pockets of the country where it has gone beyond a skills shortage and has moved into a general labour shortage where there is no one available to take the jobs that are on offer by Canadian employers."

The CFIB says it represents more than 109,000 businesses across the country.

McGowan said if employers are having a tough time finding workers, they should pay higher wages or the federal government could increase immigration.

He suggested initiatives such as ALMO and the Temporary Foreign Worker program are not the answer.

"Workers who want to come to Canada should enjoy the same rights and privileges as other Canadian residents," he said.

"We shouldn't be paying them 15 per cent less than Canadians, and government shouldn't be whisking them in through an accelerated and duplicitous process."

The Victoria Times Colonist, Apr. 9, 2013

EDMONTON -- A labour group is calling for a review of a federal program designed to help employers quickly hire temporary foreign workers for high-skill jobs.

The Alberta Federation of Labour says since the program was announced last April, more than 2,400 permits have been approved to hire foreign workers for low-skill service industry positions.

Federation president Gil McGowan says access to information documents show the employers include fast-food restaurants, convenience stores and gas stations.

"You look down this list, and it's McDonald's, Tim Hortons, A&W, Subway," McGowan said Tuesday.

"Are we supposed to believe that these are 'high-skill' employment opportunities?"

Some of the other businesses listed in the documents include The Big Moo Ice Cream Parlour in Alberta, Burger King in British Columbia and Pizza Express in Ontario.

McGowan said the permits are being used to replace Canadian workers and drive down wages.

He has sent a letter, along with the documents, to federal auditor general Michael Ferguson. It asks for an audit of the government's approval process.

Alyson Queen, director of communications for Human Resources Minister Diane Finley, said in an email that the department is "very concerned."

"Officials are investigating and will look into any evidence that the program is being misused," she 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."

Under the federal Accelerated-Labour Market Opinion (ALMO) program, employers can pay foreign workers up to 15 per cent less than Canadian workers. The program is designed to process permits to hire temporary foreign workers for high-skill jobs, including the skilled trades, within 10 business days.

"The percentage of ALMO approvals for businesses that largely employ low-skilled workers appears to be in direct contradiction to the stated parameters of the program," McGowan writes in the letter.

McGowan said just over half of the approvals by the department are for businesses in Alberta, including 33 A&W restaurants.

Information posted on the department's website says permits under ALMO have been approved for every jurisdiction in the country except for Prince Edward Island, the Yukon and Nunavut.

Dan Kelly, president of the Canadian Federation of Independent Business, said many small- and medium-size employers need temporary foreign workers to fill jobs. The need is most pressing in Western Canada and in rural communities right across the country, he said.

"I take it as a positive that businesses of all skill levels are able to access this expedited process. Our members really need those expedited processes," Kelly said from Toronto.

"We are moving into large pockets of the country where it has gone beyond a skills shortage and has moved into a general labour shortage where there is no one available to take the jobs that are on offer by Canadian employers."

The CFIB says it represents more than 109,000 businesses across the country.

McGowan said if employers are having a tough time finding workers, they should pay higher wages or the federal government could increase immigration.

He suggested initiatives such as ALMO and the Temporary Foreign Worker program are not the answer.

"Workers who want to come to Canada should enjoy the same rights and privileges as other Canadian residents," he said.

"We shouldn't be paying them 15 per cent less than Canadians, and government shouldn't be whisking them in through an accelerated and duplicitous process."

CTV News, Tuesday, Apr. 09, 2013
John Cotter, The Canadian Press

Alberta Federation of Labour calls for inquiry in light of growing evidence of fraud

Edmonton, April 9 – A list of fast-tracked temporary foreign worker applications shows that scandals at Royal Bank and HD Mining are just the tip of the iceberg.

The document, obtained by the Alberta Federation of Labour through an Access to Information request, lists all approved TFW applications in the first eight months of the new Accelerated Labour Market Opinion (ALMO) process.

Between April 25 and December 18, 2012, more than 2,400 ALMO guest-worker permits – which are supposed to be reserved for highly-skilled employment – have been granted to fast-food restaurants, convenience stores and gas stations.

“You look down this list, and it’s McDonalds, Tim Hortons, A&W, Subway Sandwiches. Are we supposed to believe that these are ‘high-skill’ employment opportunities?” Alberta Federation of Labour president Gil McGowan said. “These applications have been rubberstamped in as little as ten days, and the vast majority aren’t subjected to any kind of review.”

The Alberta Federation of Labour, the province’s largest labour organization, is calling on the Auditor General of Canada to conduct a full audit of the ALMO approval process.

“In the meantime, this program should be stopped immediately and the federal government should investigate each and every one of these employers to see if there’s wrongdoing,” McGowan said, noting that the labour movement is in favour of immigration. “Workers who want to come to Canada should enjoy the same rights and privileges as other Canadian residents. We shouldn’t be paying them 15 per cent less than Canadians, and the government shouldn’t be whisking them in through an accelerated and duplicitous process.”

More than 54 per cent (2,640) of the ALMO approvals in the country were for Alberta-based employers. Of these, AFL researchers flagged more than 58 per cent (1,542) as questionable. The list of businesses in Alberta who received ALMO approvals included 33 A&W restaurants. The ALMO stream, introduced in last year’s omnibus budget bill, is proving to be the latest evidence that the temporary foreign worker program is part of a low-wage agenda on the part of radical Tea-Party Tories.

“Alberta is leading the way in misusing this approval process,” McGowan said. “This isn’t being used as a stop-gap, and it isn’t a last resort for employers.”

AFL Backgrounder:  ‘Accelerated’ TFW approvals reveals widespread abuse of program

MEDIA CONTACTS:

Gil McGowan, President, Alberta Federation of Labour at 780-218-9888 (cell)
Olav Rokne, AFL Communications Director at 780-289-6528 (cell) or via email [email protected].

EDMONTON - A labour group is calling for a review of a federal program designed to help employers quickly hire temporary foreign workers for high-skill jobs.

The Alberta Federation of Labour says since the program was announced last April, more than 2,400 permits have been approved to hire foreign workers for low-skill service industry positions.

Federation president Gil McGowan says access to information documents show the employers include fast-food restaurants, convenience stores and gas stations.

"You look down this list, and it's McDonald's, Tim Hortons, A&W, Subway," McGowan said Tuesday.

"Are we supposed to believe that these are 'high-skill' employment opportunities?"

Some of the other businesses listed in the documents include The Big Moo Ice Cream Parlour in Alberta, Burger King in British Columbia and Pizza Express in Ontario.

McGowan said the permits are being used to replace Canadian workers and drive down wages.

He has sent a letter, along with the documents, to federal auditor general Michael Ferguson. It asks for an audit of the government's approval process.

Under the federal Accelerated-Labour Market Opinion (ALMO) program, employers can pay foreign workers up to 15 per cent less than Canadian workers. The program is designed to process permits to hire temporary foreign workers for high-skill jobs, including the skilled trades, within 10 business days.

"The percentage of ALMO approvals for businesses that largely employ low-skilled workers appears to be in direct contradiction to the stated parameters of the program," McGowan writes in the letter.

Officials with Human Resources and Skills Development Canada did not respond to a request for comment.

McGowan said just over half of the approvals by the department are for businesses in Alberta, including 33 A&W restaurants.

Information posted on the department's website says permits under ALMO have been approved for every jurisdiction in the country except for Prince Edward Island, the Yukon and Nunavut.

Dan Kelly, president of the Canadian Federation of Independent Business, said many small- and medium-size employers need temporary foreign workers to fill jobs. The need is most pressing in Western Canada and in rural communities right across the country, he said.

"I take it as a positive that businesses of all skill levels are able to access this expedited process. Our members really need those expedited processes," Kelly said from Toronto.

"We are moving into large pockets of the country where it has gone beyond a skills shortage and has moved into a general labour shortage where there is no one available to take the jobs that are on offer by Canadian employers."

The CFIB says it represents more than 109,000 businesses across the country.

McGowan said if employers are having a tough time finding workers, they should pay higher wages or the federal government could increase immigration.

He suggested initiatives such as ALMO and the Temporary Foreign Worker program are not the answer.

"Workers who want to come to Canada should enjoy the same rights and privileges as other Canadian residents," he said.

"We shouldn't be paying them 15 per cent less than Canadians, and government shouldn't be whisking them in through an accelerated and duplicitous process."

Brandon Sun, Tuesday, Apr. 9, 2013
Byline: John Cotter, The Canadian Press

Backgrounder:  ‘Accelerated’ TFW approvals reveals widespread abuse of program

Alberta Federation of Labour to call for inquiry in light of growing evidence of fraud

Edmonton – A list of fast-tracked temporary foreign worker applications shows that scandals at Royal Bank and HD Mining are just the tip of the iceberg.

The document, which the Alberta Federation of Labour will release at a press conference on Tuesday, April 9, lists all approved TFW applications in the first eight months of the new Accelerated Labour Market Opinion (ALMO) process. Thousands of ALMO guest worker permits – which are supposed to be reserved for highly-skilled employment – have been granted to fast-food restaurants, convenience stores and gas stations.

"You look down this list, and it's McDonalds, Tim Hortons, A&W, Subway sandwiches. Are we supposed to believe that these are 'high-skill' employment opportunities?" Alberta Federation of Labour president Gil McGowan said. "These permits are being used to replace Canadian workers with people who will have reduced bargaining power."

What: Alberta Federation of Labour to release list of Temporary Foreign Worker program "high-skilled" employer list

Where: Crowne Plaza Chateau Lacombe Hotel
River Valley Room, Lobby Level
10111 Bellamy Hill Rd NW, Edmonton

When: 1:30 PM, Tuesday, April 9

Who: Alberta Federation of Labour president Gil McGowan

-30-

MEDIA CONTACT:

Olav Rokne, AFL Communications Director at 780-289-6528 (cell) or via email [email protected].

The government saw it coming according to documents

The Alberta Federation of Labour claims the Alberta government was warned in 2010 a cut in energy royalties would result in a budget deficit. A government document titled "Energizing Investment Phase 2: Royalty Curves and Adjustments," demonstrated how royalty reductions would create budget deficits in the 100s of millions of dollars from 2010 to 2013, while without the reductions, the then Stelmach government was predicting a $500 million surplus for 2013. The document was dated May 25, 2010. Two days later, the provincial government reduced royalty rates.

"They've been acting like this year's deficit came as some kind of surprise to them, and they've tried to point fingers at bitumen prices," Alberta Federation of Labour president Gil McGowan said in a press release. "But the deficit was predictable, and was predicted in this report to the minister. Royalty reductions were to blame, and were blamed in this report."

Premier Alison Redford has for several months explained the deficit in this year's budget was an unavoidable result of a "bitumen bubble" — unanticipated low bitumen prices due to an over-supplied market. The AFL points to this document as evidence the deficit is unrelated to supply and demand; rather, it is the foreseeable result of royalty cuts.

Fast Forward News, FFWD, Thursday, Apr. 04, 2013
Byline: Suzy Thompson in News

Contrary to the Fraser Institute’s assertions, Alberta public-sector workers are not paid more than their private-sector counterparts, according to information obtained by the Alberta Federation of Labour.

The 2006 Census – the last Census with reliable data – shows that Alberta civil servants are not paid more than their private-sector counterparts.

In fact, private sector workers get paid two per cent more than workers with the same jobs in the public sector. Given Alberta’s red-hot economy, this is not a surprise. The private sector pay premium also reflects government deficits and never-ending rounds of so-called “belt-tightening,” caused by two decades of tax and royalty giveaways.

The 2006 Census shows the average annual wage for more than 92,000 public-sector workers as $49,064, whereas the annual average wage for 418 comparable occupations in the private sector was $50,077 – a difference of two per cent.

The Fraser Institute, on the other hand, relies on the Labour Force Survey with a meager 45 occupational classifications. These occupational classifications are not officially supported by Statistics Canada because the sample size is not large enough to produce results of sufficient quality.

A 2-per-cent wage advantage for private-sector workers over those in the private sector may not be surprising considering the province’s robust economy and public-sector restraint in light of the government’s inability to match its revenues to Alberta’s booming economy.

The Alberta Federation of Labour used data supplied by Paul Tulloch of Living Work Consulting. Tulloch, a former Labour Economist and Information Specialist at Statistics Canada, used a custom dataset from Statistics Canada from the 2006 Census using data from the long-form census, which was filled in by 20 per cent (over 1.9 million) Canadian households. Data was provided for the number of workers and annual wages of those who worked full-time, full-year, classified by detailed occupational group (520 different specific occupations at the 4-digit level using the 2006 National Occupational Classification), by industry and region.