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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

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

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

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

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.

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

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.

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

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].