Union leaders urge Loblaws to avoid strike
Superstore will face boycott if workers are not offered fair deal
Edmonton – Union leaders representing more than 250,000 Alberta workers urged Loblaws CEO Galen Weston Jr. to present a reasonable offer to the 8,500 UFCW workers at the province's Superstores.
In letters sent to Mr. Weston, the presidents of the Alberta Federation of Labour, United Nurses of Alberta, Health Sciences Association of Alberta, the Alberta Union of Provincial Employees, UNIFOR and the Canadian Union of Public Employees, stated unequivocally their support for the members of United Food and Commercial Workers.
"In the event of a strike, we will communicate our concerns about your company's labour relations practices to our members and actively encourage them to not shop at Superstore until a fair agreement has been reached," AFL president Gil McGowan said. "In an economy as vibrant as Alberta's, there is simply no excuse to shortchange the employees whose efforts make your business thrive."
At a press availability at 1:30 p.m. today outside the Superstore at 4821 Calgary Trail N.W., Edmonton, representatives of the largest unions in the province noted that the Loblaws Corporation has enjoyed a banner year, has spent billions on growing their retail empire, but are being stingy with staff.
"My guess is that you and your senior management team have concluded that, order to maintain your market share and afford moves like your recent purchase of the Shoppers chain, you have no choice but to engage in the race to the bottom being led by companies like Walmart," McGowan noted.
After negotiations between United Food and Commercial Workers locals in Alberta and Saskatchewan reached an impasse in September, more than 8,500 members of the union voted 97 per cent to approve strike action. The members were near unanimous in their rejection of Loblaws' last offer, which involved wage cuts of up to 40 per cent, on top of reductions in hours.
If there is no agreement reached by midnight on Oct. 6, workers at Superstores all over the prairie provinces will walk out.
"We understand that the retail market is competitive, but it is also profitable – especially here in booming Alberta," McGowan said. "Instead of joining the pack in a race to the bottom, you can stand out from the pack by being a good employer and a better corporate citizen."
The press conference was attended by Alberta Federation of Labour president Gil McGowan, representing 160.000 workers; Alberta Union of Provincial Employees president Guy Smith, representing 83,000 workers; United Nurses of Alberta vice president Jane Sustrik, representing 23,000 workers; Health Sciences Association of Alberta president Elisabeth Ballermann, representing 24,000 workers; and Canadian Union of Public Employees president Marle Roberts, representing 30,000 workers.
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MEDIA CONTACT:
Olav Rokne, Communications Director, Alberta Federation of Labour at 780.289.6528 (cell) or via e-mail [email protected]
Alberta’s minimum wage remains worst in Canada
Edmonton – The Redford government is raising the minimum wage next week, but Alberta’s lowest-income earners will still be the worst-paid in Canada.
As of September 1, the provincial general minimum wage will increase from $9.75 to $9.95. The minimum wage for liquor servers will remain the same at $9.05. Alberta’s minimum wage increases automatically each year under a formula that links the minimum wage to the cost of living.
“A terrible wage that keeps up with inflation will remain a terrible wage,” Alberta Federation of Labour president Gil McGowan said. “How can it be that the richest province is the stingiest? Alberta has a booming economy, a high cost of living, but even with this increase, we have the lowest minimum wage in the country?”
If a minimum wage worker puts in 35 hours a week, 52 weeks a year, they’ll earn $18,109 a year before taxes. That’s significantly less than the Low-Income Cut-Off (LICO), the official poverty line that Statistics Canada defines as $23,298. A rate of $14.05 without benefits, or $12.08 with benefits, would be required for someone working full-time at minimum wage to get beyond that poverty line.
“If someone is working full-time, they should not be below the poverty line,” McGowan said. “In Alberta, we have a sub-poverty wage. It’s a wage that too often will mean choosing between rent and food.”
Workers in B.C., Manitoba and Ontario can all expect a minimum of $10.25 an hour. Nova Scotia is a little bit better at $10.30 an hour. New Brunswick, Newfoundland and N.W.T. all pay $10.00 an hour for minimum wage. In Quebec, it’s $10.15. And in Nunavut, it’s $11.00 an hour.
“The Government’s plan to make annual inflation-based increases to the minimum wage has a lot of merit. The problem is that they started doing so only after many years in which they’d allowed inflation to greatly outpace the minimum wage,” McGowan said. “So when they started with the annual increases, the minimum wage was way, way, way too low for Alberta’s economy.”
In today’s dollars, Alberta’s minimum wages were significantly higher in the late 1970s than they are now. Accounting for inflation, the minimum wage of $3.00 in 1977 had the equivalent buying power of more than $11 today.
“Almost 30,000 Albertans earn the provincial minimum wage. This is a pressing issue to every one of them,” McGowan said. “Almost half of these workers are over the age of 24, and nearly half work these jobs full-time. There are too many people struggling to get by on too low a minimum wage.”
According to government estimates, 1.8% of Alberta’s 1,642,400 are earning minimum wage. More than 72 per cent of Albertans who earn minimum wage are women.
AFL Backgrounder: Minimum Wage 2013
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Olav Rokne, Communications Director, Alberta Federation of Labour at 780.289.6528 (cell)
or via e-mail [email protected]
Kenney teams up with CFIB to perpetuate labour shortage myth
Minister should be ashamed of Twitter tag-team to peddle TFW expansion and other bad policies
Edmonton – A Twitter forum organized by the Harper government and the Canadian Federation of Independent Business (CFIB) is nothing more than a cheap gimmick aimed at justifying low-wage policies like the expansion of the Temporary Foreign Worker program, says the Alberta Federation of Labour.
Today at noon, Federal Immigration Minister Jason Kenney joined CFIB president Dan Kelly on the social networking site Twitter to answer questions about the Canada Jobs Grant program and “ongoing labour market pressures,” despite Statistics Canada reporting that there are 6.4 unemployed Canadians for every vacant job.
“The CFIB says that there’s a labour shortage – but they always say there’s a labour shortage,” says Alberta Federation of Labour president Gil McGowan.
“The low-wage employers that the CFIB represents are using this myth about labour shortages to justify bad public policy, like the expansion of Temporary Foreign Worker program. But experts at the U of A, the U of C, CIBC, and the federal government’s own researchers say the CFIB is wrong.”
In May, the University of Calgary’s School of Public Policy published a report stating that Canada had all the workers that we need.
That opinion was echoed by the University of Alberta’s Institute for Public Economics in June, when they wrote that problems in Alberta have more to do with training and productivity than labour shortages.
In 2011, Human Resources and Skills Development Canada projects that there will be no major labour market imbalances over the next ten years.
“We’ve crunched the numbers as well, and it’s clear there is no general labour shortage in Alberta,” McGowan said. “Despite all of the CFIB’s whining, if there is a shortage of anything, it’s a shortage of people willing to work for the crappy wages that employers in the service sector are offering.”
“This Twitter conversation is not a conversation at all. It’s a gimmick designed to spread falsehoods,” concluded McGowan.
“The Minister should be ashamed of himself for spreading misinformation about Canadian labour markets. And he should be ashamed of using the power of government to help low-wage employers keep wages low when economic conditions suggest they should be going up. The Minister has clearly forgotten that he works for Canadians, not the CFIB.”
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MEDIA CONTACT:
Olav Rokne, Communications Director, Alberta Federation of Labour at 780.289.6528 (cell)
or via e-mail [email protected]
Federal government will close wage gap for temporary foreign workers
OTTAWA — Changes to the ailing temporary foreign worker program unveiled Monday are little more than an admission of error and fall short of the massive overhaul the Conservative government promised, critics say.
The federal government announced it was dropping the confusing and seldom used 15-per-cent wage differential for foreign workers introduced in the last budget and temporarily suspending a controversial fast-track process brought in a year ago as a means of improving the program.
Effective immediately, employers will have to pay temporary foreign workers the prevailing regional wage average Canadian workers doing the same job earn because a plan to build in flexibility to account for experience and performance didn't work.
The Accelerated Labour Market Opinion process introduced last year to speed up the issuing of work permits was meant to better meet labour market demand in high-skill fields. Now, that too will be suspended pending a review of the program to make sure it's not being used to fill low-skill service jobs at, for example, Tim Hortons.
Immigration Minister Jason Kenney and Human Resources parliamentary secretary Kellie Leitch made the announcement shortly after the government introduced its budget implementation bill.
"We are concerned about examples of the program not being used as intended. Canadians must always have the first crack at available jobs in our economy," Kenney said.
"The temporary foreign worker program was intended to fill acute labour shortages on a temporary basis only, not to displace Canadian workers."
A total of seven changes were introduced Monday. They include regulatory and administrative reforms as well as legislative changes contained in the budget that require the approval of Parliament.
Critics, however, argued the two key measures are simply a reversal of earlier mistakes.
"This is not the first time, as you know, that the Conservatives have said that they wanted to fix the program. Twice already they said that they were going to do that but then made things even worse," NDP human resources critic Chris Charlton said.
The NDP and other critics have complained the wage differential ultimately drove down wages and working conditions.
Charlton said the new measures don't address the need to recruit, hire and train Canadians first or the need for better labour-market information. There's also nothing in it to address unfair treatment and the rights of workers, she said, adding a comprehensive review is needed.
"The reality is, they have made an absolute mess of the temporary foreign worker program," she said.
"What we really need is a proper study with outside experts to make sure we get it right this time."
Liberal human resources critic Rodger Cuzner added the government may be "trying to sell this announcement as new reforms" but the truth is that it's simply promising to enforce rules that already exist.
Worse, it's "an embarrassing reversal" of changes the Harper government introduced in recent years, he said, adding he will introduce a motion asking a Commons committee to study the program.
The Alberta Federation of Labour, meanwhile, released a report Monday that found three out of four jobs created in the provinces over the last few years have been filled by temporary foreign workers instead of Canadians. When 8,600 jobs were lost in 2010, the province still admitted some 23,000 foreign workers, president Gil McGowan said.
He said the program is "not filling a need" but is "flooding the market," that it's become the "a first choice for employers rather than a last resort." McGowan added that the food-services industry has become a "low wage ghetto" in booming Alberta, where seniors looking to earn a little extra cash and teenagers looking for their first job are paying the price.
"It's clear at least in the province of Alberta that the program is being used to displace Canadians from employment, it's being used as a tool to suppress wages and it's giving employers and excuse to abdicate their responsibility to train the next generation of Canadians," he said, adding it's affecting construction trades as well as the service industry.
Among measures introduced Monday is a plan to boost the government's authority to suspend or revoke work permits and labour-market opinions, the latter of which pave the way for work permits to be issued where there is a genuine shortage of Canadian workers.
In the wake of a recent instance in which Royal Bank of Canada employees found themselves training temporary foreign workers to take over their jobs, the government said it will add new questions to employer applications to ensure the program isn't being used to outsource Canadian jobs.
The reforms are in addition to several already laid out in the 2013 budget.
Employers will also need to broaden the length and reach of job postings and produce a plan for transitioning to a Canadian workforce over time when applying for permits under the program.
New user fees for employers seeking to hire temporary foreign workers are also expected to offset costs currently absorbed by taxpayers.
The government is also taking steps to amend the Immigration and Refugee Protection Regulations so that companies cannot make knowledge of a language other than French or English a requirement when hiring through the temporary foreign worker process.
"These changes will strengthen and improve the temporary foreign worker program to support our economic growth and recovery," Leitch said.
While agricultural employers could see permits revoked if companies are found to have misused the program, seasonal agricultural workers will otherwise be unaffected by the reforms.
An ongoing review of the program that began in fall 2011 will continue and more reforms are expected this fall, following a second round of consultations with businesses, trade organizations, unions and other stakeholders.
Ottawa Citizen, Tuesday, Apr. 30, 2013
Byline: Tobi Cohen, PostMedia News
Temporary Foreign Worker Program: Conservative government must fix what it broke
Unions and migrant workers' advocacy groups warned Human Resources Minister Diane Finley of potential for abuse.
Last year the government announced changes to the Temporary Foreign Worker Program (TFWP)Temporary Foreign Worker Program (TFWP), indicating that it would fast-track the processing of employer applications for migrant workers and allow employers to pay them up to 15-per-cent less than prevailing wages. The Canadian Labour Congress (CLC) warned that those changes would make an already flawed program worse. I met with Human Resources Minister Diane Finley shortly after the announcement and provided her with a book of abuses that one of our affiliates had compiled. The CLC urged Finley not to implement the changes and to conduct a thorough review of the program.
Now the chickens have come home to roost. The events last week with the Royal Bank of Canada are not isolated. This follows on the heels of unions in British Columbia in court battling the government's decision to approve HD Mining's use of offshore coal miners after the company rejected the applications of hundreds of Canadian miners.
The Alberta Federation of Labour recently found that the federal government has granted thousands of fast-tracked work permits designed for employers seeking high-skilled migrant workers under the Accelerated Labour Market Opinion (ALMO). The documents show many migrant workers brought in under the ALMO process are actually toiling in fast-food restaurants, convenience stores and gas stations.
We shouldn't be surprised, given the repeated warnings sounded by unions and migrant workers' advocacy groups. What is surprising is that Finley has not offered her resignation over the issue. She should do the right thing and resign over what has happened on her watch.
The Conservative government has been determined to alter the national workforce. The 2007 budget document said, "it is our government's intention to create the best educated, most skilled and most flexible workforce in the world." The TFWP has been the key to that flexibility. The same 2007 budget allowed Canada's employers to have access to temporary foreign workers "for any legally recognized occupation from any country," eliminating the previous limitation to occupations with recognized labour shortages.
Today, companies are employing nearly 340,000 migrant workers — more than our annual intake of permanent newcomers. Between 2007 and 2011, 30 per cent of all net new jobs in Canada went to migrant workers — during a period of high unemployment in this country. This is a concern. If employers need migrant workers to do jobs year after year, then let's admit it is not a temporary situation.
My grandfather came to Canada as a migrant worker. But there was nothing temporary about it. He was proud to become a Canadian citizen, as were so many of our parents and grandparents. Shouldn't we offer migrant workers a meaningful pathway to permanent residency and welcome their families?
Employers have been quick to take advantage of the loophole that Finley provided in April 2012. After announcing the up to 15-per-cent lower-wages scheme, she promised a new monitoring initiative to make sure the rules were being followed. Sadly, that initiative indicated that no more than 20 per cent of employer applications would be reviewed and only after employers had already received permission to hire migrant workers.
The government says that employers and labour brokers have to abide by the rules. Two of the criteria they must meet are: Has the employer attempted to hire or train available Canadians or permanent residents? Will the employer ensure the migrant worker will be paid substantially the same wage rate? There is ample evidence to show that these rules are being blatantly disregarded.
In 2009, Immigration Minister Jason Kenney announced that his department would publish online a list of employers found to be flouting the rules and they would be subject to sanctions. Four years later, that bad-boss website doesn't contain a single name of a single company.
Tripling the size of the migrant workforce in just 10 years, and allowing employers to pay migrant workers less, can only result in wages being driven down for everyone. It is unfair to both workers in Canada and to migrant workers.
The government must redress the ongoing problems with the TFWP. In 2009, the auditor general, after finding significant problems with the program, recommended a comprehensive review. Finally the prime minister has announced that a review will take place, but will it be transparent and meaningfully involve all stakeholders? Solutions do exist. For example, the CLC is calling on the government to establish a National Migrant Worker Commission. It must have real regulatory and enforcement powers to protect migrant workers' rights and ensure that our national labour force is fully utilized.
Ken Georgetti is president of the 3.3 million member Canadian Labour Congress.
The Star Commentary, Tuesday, Apr 16, 2013
Byline: Ken Georgetti, CLC
Federal program being misused?
The controversy over the outsourcing of dozens of Canadian jobs by the Royal Bank of Canada has put the spotlight on the much bigger issue of how Canada's Temporary Foreign Worker Program is being utilized.
The Alberta Federation of Labour added its voice to the debate Tuesday by calling for a review of the federal program because of concerns the program is being used to replace Canadians workers and drive down wages.
There appears to be legitimate cause for concern. The program was originally intended to assist employers in hiring temporary foreign workers to fill high-skill jobs because of the shortage of skilled workers already in Canada. Instead, the AFL points out that since the program was announced a year ago, more than 2,400 permits have been approved to hire foreign workers for low-skill service industry jobs.
The federal Accelerated-Labour Market Opinion (ALMO) program allows employers to pay foreign workers up to 15 per cent less than Canadian workers are paid. It also speeds up the process of hiring foreign workers so it can be done within 10 days.
It doesn't require a degree in rocket science to figure out that being able to pay workers 15 per cent less is going to be an attractive lure for business operators. And it appears businesses are taking full advantage of the opportunity.
"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," AFL president Gil McGowan wrote in a letter to federal auditor general Michael Ferguson.
In a Canadian Press story in Wednesday's Herald, McGowan noted that documents obtained through the Access to Information Act show that employers using the ALMO program include fast-food restaurants, convenience stores and gas stations.
"Are we supposed to believe that these are 'high-skill' employment opportunities?" McGowan asked.
Not likely.
Dan Kelly, president of the Canadian Federation of Independent Business, defended the federal program, saying many small- and medium-size employers need temporary foreign workers to fill jobs, and the need is most pressing in Western Canada and in rural communities across Canada.
"I take it as a positive that businesses of all skill levels are able to access this expedited process," said Kelly. "Our members really need those expedited processes."
The issue, however, is are those workers preventing Canadians from landing those jobs?
McGowan suggested a couple of ways employers could deal with the difficulty in finding workers - they can either offer higher wages or the federal government can increase immigration. Of course, offering higher wages isn't an attractive option for businesses, and for those just squeaking by, it might not be an option at all.
But the bottom line is it appears the federal temporary foreign worker program is not being used the way it was intended, and that warrants an investigation.
Lethbridge Herald Opinion, Thursday, Apr 11 2013
Will work for less: a primer on temporary foreign workers
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
Rise in foreign temp workers questioned by labour groups
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
Reality Check: Census data casts doubt on Fraser Institute’s assertion that Alberta’s Public Servants are overpaid
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.
Occupation Type |
Average Public Sector Wage |
Average Private Sector Wage |
Wage Difference |
% Wage Difference |
Management |
$70,220 |
$73,303 |
$ (3,083) |
-4.4% |
Business, Finance and Admin |
$43,035 |
$45,096 |
$(2,061) |
-4.8% |
Natural and Applied Sciences |
$64,525 |
$71,439 |
$ (6,913) |
-10.7% |
Health and Related |
$54,410 |
$52,764 |
$1,646 |
3.0% |
Social Science, Education, Government |
$46,733 |
$47,835 |
$ (1,102) |
-2.4% |
Art, Culture, Recreation and Sport |
$49,215 |
$47,919 |
$1,296 |
2.6% |
Sales and Service |
$32,250 |
$30,263 |
$1,988 |
6.2% |
Trades, Transport and Equipment Operators |
$49,757 |
$52,053 |
$(2,296) |
-4.6% |
Occupations Unique to Primary Industries |
$38,919 |
$38,143 |
$776 |
2.0% |
Total |
$449,064 |
$458,813 |
$(9,749) |
-2.2% |
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.
Hiring of temporary foreign workers raises hackles in Alberta
Significant numbers of temporary foreign workers continued to move to Alberta even as the economy shed jobs during the recession, says a new report from the province's largest labour group.
The draft report from the Alberta Federation of Labour (AFL) found that although overall Alberta employment numbers dropped in 2009 and 2010, companies continued to bring in new temporary foreign workers in a hiring spree that first ramped up during the province's boom years. While the umbrella union group agreed there are true shortages of workers in a few trades and skills, the numbers show the real scarcity is in the "people willing to work for less," the group said
The issue of temporary foreign workers is of special concern in Alberta. In recent years, Alberta employers have been granted more than half of Human Resources and Skills Development Canada's approvals (called Labour Market Opinions) to bring in low-skilled temporary foreign workers, many of them destined for service jobs.
Unions and other critics say the temporary workers are more likely to be exploited by employers and the federal program drives down wages, while firms with an eye on expansion say they have no choice but to look overseas for employees.
"It's really very tough to hire," said Bobby Maglalang, human resources manager at Calgary-based Hi-Flyer Food (Canada) Inc., which owns KFC, Taco Bell and Pizza Hut franchises in Alberta, Manitoba and Quebec.
In Alberta, Hi-Flyer Food has 110 temporary foreign workers – more than a quarter of its current staff – on its payroll, and is short more than 200 workers across the province. Mr. Maglalang said even the lowest-paid "team member" makes more than minimum wage, and it's not a matter of paying temporary foreign workers less than Canadians or permanent residents. The real issue is that restaurant owners can't match salaries paid by the oil and gas industry. "We need more workers. If only we could avoid hiring foreign workers."
Richard Truscott, Alberta director for the Canadian Federation of Independent Business, said given the amount of red tape and cost involved in hiring foreign workers, most businesses would rather forgo the process. But he said there are just not enough Canadians willing to do some jobs. Mr. Truscott said the numbers compiled by the AFL might be explained by the cyclical nature of the economy and the "lag effect" in the federal program. Many business owners were caught off guard by the downturn that followed the boom years of 2006-2008, he said. "By the time those individuals arrived and were being integrated into the business, the economy had gone sour," Mr. Truscott said.
The draft report from the AFL said in 2009, while unemployment rose and a net 28,500 jobs were lost, Ottawa still allowed provincial employers to bring in 28,545 new temporary foreign workers. In 2010, 8,600 Alberta jobs were lost but 22,992 new temporary workers came in.
In the same three years and up to 2011 as the economy began to improve, the number of temporary foreign workers living in the province stayed between 58,000 and 66,000.
Speaking during a visit to Fort McMurray, AFL president Gil McGowan said while the Harper government says it wants Thursday's federal budget to breathe new life into trades and skills training, it is not really pushing companies to take apprenticeship programs seriously. He noted under new rules brought in last April, some employers can now pay temporary workers 5- to 15-per-cent less than the prevailing wage for Canadians.
"Through the temporary foreign worker program, they're actually distorting the labour market," Mr. McGowan said.
The Globe and Mail, Wednesday, Mar. 20, 2013
Byline: Kelly Cryderman