Temporary Foreign Worker Program (TFWP) - Stealing Jobs from Canadians?
May 19, 2014 at 9:55pm
The purpose of this piece is to educate. Please take the time to form an opinion on this issue based on the facts and on more than one side of the story. After having read this piece, if you are in agreement with my opinions, please share the information as you see fit to educate more people on this subject.
Wow, where to even begin?
This issue is very much a hot topic right now, as it should be. It is a program about People. It is a program with loopholes and cracks ripe for abuse. But most of all, what I've learned firsthand is that it is a topic that is completely misunderstood by far too many people.
I own and operate two franchised quick service restaurants, employing 15 people including myself, six of which are employed under the TFWP.
As someone who has been using the program for the last 5 years, I am shocked at what has been happening over the last few months in regards to it, as many on both sides of the argument are. My community, which anyone with a half ounce of common sense can see, is one that absolutely depends on this type of program. We do not have the luxury of speaking in general; we are at one extreme side of the situation. But everything I'm about to share affects everyone across the nation just the same, one way or another. This is a national issue, not a local or regional one.
The first thing I should say is this: If I could do so, I would hire a Canadian in my business first, EVERY TIME. Even if it means a higher turnover rate, it is still cheaper and easier to hire and train local than it is to go through the process and expense to hire and train a foreign worker.
Misinformation and simple lack of understanding and education about the program itself and the issues surrounding it are driving a modern day witch-hunt which ironically, will be affecting those who are against the program as much as those in favour, whether they use it directly or not. The ripple-effect will be more like a wave-effect in communities such as mine, where businesses will be forced to reduce hours, will not be able to maintain standards of service and production, and in many cases, will simply have to close their doors.
Are there cases of abuse? Absolutely.
Are there cases of abuse in every industry, every program, every institution, every club, every church, every culture, every everything? ABSOLUTELY.
What I'm talking about is not the small percentage of cases that are being sensationalized in the media. This is about the real, Canadian business owners and their day-to-day application of a program that was designed to strengthen and improve our economy. And it has.
I will bring the stats and figures into this shortly, but for now lets continue to paint this very real picture. Every example that I describe below is an example that is100% real today or is being prepared for by industry leaders that I have personally spoken with. These are Not fabricated stories from my imagination.
If the TFWP is shut down completely:
Quality of life for all will be affected. Example: You or I will no longer be able to enjoy going to our favorite sandwich or coffee shop down the street and only wait a few minutes to place our order and be served. Because that sandwich or coffee shop will either be closed for business or will be so understaffed that wait times will be doubled and service will be less than it already is. These business owners will be burnt out and making less profit in an already very tight-margin industry.
Hotels will be understaffed and visitors to our great, growing city will not be able to get a room even though some might be available because there aren't enough people to clean the rooms. And those who do have a room, will be disappointed when they go to order pizza for delivery and there is no one to deliver it, so they drive to a restaurant down the street in the evening, and the restaurant is closed because they aren't able to stay open past 8pm when they used to be open till midnight.
Local growing businesses will be affected, and not just the ones who directly employ foreign workers. Example: The plans of expansion that a franchise has for 5 new locations in the area are immediately cancelled because they know that they will have to downsize now due to staff shortage. That's 50 permanent jobs in our community that are no longer coming to market. That's 5 new building developments that are no longer on the table, taking away contracts to local companies and work for their employees, which add up to hundreds of thousands of dollars for each location. And that's really just the tip of the iceberg for this one example.
Small business start ups created by Canadians to find their way into the workforce are affected, here's an example of a Single Mom doing an amazing thing that will likely have to close:
“I'm a single mom with my business and I need to have my voice heard because I hire other single moms raising and supporting their babies. We are not on any government funding; we are busting our rumps everyday to support our children. We are Canadians, and for me it is not a matter of ‘am I going to make millions or billions this year', it's a matter of ‘am I going to feed my kids or not next month'. So these foreign workers, my employees, are not my employees. They are my family because if it weren't for them I wouldn't have a business. Two summers ago I was the only employee in my place and now I employ over a dozen people. And so we have to consider all the Canadians and permanent residents that are about to lose their jobs because of this. And not just the potential Canadians that are being affected by foreign workers taking their jobs; we have people that are employed as it is who are about to lose their jobs; I can name 12 of them, including myself. And then I have to go find a job and put my kids in a daycare that doesn't exist because there are no child-care workers. It's a never-ending circle. And so I think we need to remember that businesses aren't just businesses, they have faces and my face is one of them.”
Attracting Canadian skilled and professional people to our community is affected. Example: “...this is not just about the restaurant industry, the problem actually has much more bigger implications you know. Right across the street from here you are building a brand new hospital. That hospital will need to be staffed with very skilled workers, with doctors and nurses. If you are to attract and retain these doctors and skilled workers into that hospital, they will expect a certain quality of life, they will need nannies, they will need daycares they will need clean schools and they certainly would like to go out for a dinner at the end of work with their families or with their spouse. To attract and retain people in our municipalities we have to offer them a quality of life and restaurant and the hotel and lodging industries and many of the entry level job market positions speak to just that, so it may be just a restaurant but they actually have significant impact on attracting a doctor to your hospital, it is all very much integrated” - Thomas Lukaszuk, Alberta Minister of Jobs, Skills, Training and Labour.
These are real situations – that are already happening NOW.
The arguments against the program are simple, and again, mostly based on false information. Let's address them.
Myth #1: “Businesses that hire foreign workers are taking away jobs from Canadians.” FALSE.
FACTS: The whole point of the program was to bring in people to fill jobs that couldn't be filled with Canadians. Again, have there been abuses of this? Yes. But the vast majority of employers are using the program as it is intended.
In the case of Alberta, “...if we were to be 100% successful and if every Albertan was fully employed to the maximum of their capacity, we would still continue to experience labor shortages in this province. And the reason is simple, it's demographics. Our national population growth right now is below 0, which means we don't even replace ourselves and yet we have been blessed with an economy not only in Alberta but frankly throughout the country that continues to grow. And that means that any influx of workers into this country and particularly into this province will be from other parts of Canada and obviously from outside of Canada by way of immigration.” - Thomas Lukaszuk
Myth #2: “Businesses are bringing in foreign workers for cheap labor.” FALSE.
FACTS: It costs more money to employ someone on the TFWP. The employer is responsible for recruiting costs, airfare and travel costs, and any costs associated with settling them into their new environment. Contracted wages are set by Immigration Canada and in my case, are set at higher rates than the starting wage that I employ Canadians at.
Myth #3: “Contracted foreign workers are getting preferred benefits from Government and are not paying the same taxes as Canadians.” FALSE.
FACTS: Foreign workers are subject to exactly the same payroll deductions and rules as everyone else. And when they go home, their CPP contributions and all other taxes stay here.
Myth #4: “Employers are not offering these jobs to Canadians first”. FALSE
FACTS: In the vast majority of cases, employers are doing all they can to recruit before even considering foreign workers. The TFWP only comes to mind and becomes an option when employers feel they have no choice. Above and beyond that, when putting in an application, the program requires the employer to advertise for a lengthy period (it was 30 days before the moratorium) in 3 approved sources as outlined by the Government.
In my experience, I have had little to no results from advertising outside of my market. Interestingly, in 5 years, I believe I've only had one applicant from Canada apply to outside advertising and they were unwilling to relocate for the position. All other applications have been from foreigners looking for a sponsor to come work in Canada.
Myth #5: “There are lots of Canadians that could do those jobs.”
Actually, this one probably isn't so much of a myth, because in my opinion, there are many Canadians who 'could' do the job that I am hiring for. However, here is a very common challenge that I, and all of my Quick Service Restaurant (QSR) counterparts face. Tell me if you've ever heard phrases such as these not only from adults but increasingly even from the teens entering the workforce:
“Man, it's getting tight. I really need to find work. But I won't work at McDonald's!”
“I'm desperate...I'll work anywhere. Except for fast food.”
“Janitor? Are you kidding? I'm above doing that kind of work!”
The reality is that Canada, and Alberta in particular, is enjoying a great economy. And with that comes opportunity that only comes along in this type of economic environment. So the jobs that many people deem to be ‘low-classed' work (consciously or sub-consciously), become even lower on the food-chain (pun intended) and in general, people feel ‘above' doing these kind of jobs, even if sometimes it means being able to better care for and feed their families.
The reality is that even when there are people to work, many people will not do the job that we are hiring for – and then they complain that employers are giving away jobs. And then people complain that the service is poor or that the employees can't speak good enough English.
The reality is that in the blessed economy that some regions such as mine have, you cannot have it all. You can't have perfect English-speaking Canadians, perfect service, no line-ups, and great products all at the same time. So if the public can be tolerant enough to see the people behind the counter as people and not as foreign workers with an accent, they can enjoy great products and less line-ups.
If someone from another province in Canada was willing to relocate to come and work for me for $12 an hour for an agreed upon term, I would be ecstatic to offer the same deal as someone on the TFWP. Operators are standing by to receive your calls...
Here are some interesting numbers that the Labour Minister mentioned:
“Your work force in Grande Prairie and the region is virtually 100% tapped out. And often we focus on the unemployment rate being below 4%. That is an important number but the more important number is the labor participation statistic and you are somewhere in the area of over 70%. Which means that virtually the entire population that is interested in working is already working. Because about 30% of any population are people who are retired, unable to work or some choose not to work. You will find that the labor participation in this part of Alberta and in all of Alberta is significantly higher than anywhere else in Canada or United States. That means those who are interested in working have found their jobs and they will continue to work.” - Thomas Lukaszuk
My thoughts on the moratorium that was implemented:
One thing that everyone who knows the program and truly understands the program agrees with is that it was irresponsible of our Government to shut down the program the way it did. A review was/is absolutely necessary and the vast majority of us who use the program properly are as completely outraged as everyone else is about the abuses that have taken place. We want justice and expect there to be severe consequences for abuses. The people who are abusing the system and/or abusing people are the bad apples that are spoiling the bunch.
I feel as many do that the review process could have taken place without displacing innocent people and families, and without interrupting, stalling, and hurting so many hard working and contributing businesses. To me, playing with so many people's lives like that was very un-Canadian and very disappointing. The people affected directly deserved so much better.
I also find it interesting that the Fast Food sector is being singled out both in media and even in the strong language used by the government on their website. Yet, these issues take place in every sector. In fact, in 2012, out of the 213,573 people that came to Canada under the overall Temporary Foreign Worker Program, only 20,636 (that's 9.6%) were in the affected categories. This furthers my opinion that the media frenzy surrounding the abuse issues that came to light as well as the general publics complete misunderstanding and misinformation about the program was a huge factor in creating the current situation.
Here are the categories affected by this moratorium. The list is much longer and diverse than I expect most people believe (and still only 9.6% of foreign workers).
▪ 6641Food Counter Attendants, Kitchen Helpers and Related Occupations
▪ 0631Restaurant and Food Service Managers
▪ 6212Food Service Supervisors
▪ 6453Food and Beverage Servers
▪ 6611Cashiers
▪ 6241Chefs
▪ 6242Cooks
▪ 6252Bakers
▪ 0611Sales, Marketing and Advertising Managers
▪ 0621Retail Trade Managers
▪ 0632Accommodation Service Managers
▪ 0651Other Services Managers
▪ 6211Retail Trade Supervisors
▪ 6213Executive Housekeepers
▪ 6214Dry Cleaning and Laundry Supervisors
▪ 6215Cleaning Supervisors
▪ 6216Other Service Supervisors
▪ 6221Technical Sales Specialists - Wholesale Trade
▪ 6251Butchers, Meat Cutters and Fishmongers - Retail and Wholesale
▪ 6411Sales Representatives - Wholesale Trade (Non-Technical)
▪ 6421Retail Salespersons and Sales Clerks
▪ 6451Maîtres d'hôtel and Hosts/Hostesses
▪ 6452Bartenders
▪ 6484Other Personal Service Occupations
▪ 6622Grocery Clerks and Store Shelf Stockers
▪ 6623Other Elemental Sales Occupations
▪ 6651Security Guards and Related Occupations
▪ 6661Light Duty Cleaners
▪ 6662Specialized Cleaners
▪ 6663Janitors, Caretakers and Building Superintendents
▪ 6681Dry Cleaning and Laundry Occupations
▪ 6682Ironing, Pressing and Finishing Occupations
▪ 6683Other Elemental Service Occupations
Other sectors are watching what happens here closely, as it will be impacting them as well. Another quote from our Labour Minister: “We know how important (foreign workers) are to us in Alberta and frankly they are not only important to us in Alberta but they are very important to the rest of Canada. Because for example our oil and gas industry directly - not indirectly - but directly, creates more jobs in Ontario than the other manufacturing industries do, and we know that industries like our oil and gas industry would be seriously crippled if theydid not have access to temporary foreign workers.” - Thomas Lukaszuk
In closing,
My six TFW's are not ‘TFW's'. They are People. My eight Canadian employees are not ‘employees'. They are People. At work, we are all one Team and we do our best to serve our customers with a great product and a WOW experience, to be profitable and to have fun. I could write another six pages on each of my fourteen Team Members and their families and what they mean to my family and me.
I hope you have seen some of this issue in a new light by reading this. This write-up is by no means comprehensive, but enough I hope, to create more understanding and acceptance of what is really going on in my community and probably in yours too.
Please Share this if it feels right.
Dave Doyle
Grande Prairie, AB
