I’ve been reading on and off over the past year about Canada’s
Temporary Foreign Workers (TFW) programme.
Everything I learn about the programme makes me question why Canada not
only allows it but encourages employers to use it.
My understanding of the programme is that it allows Canadian
employers to recruit foreigners where Canadian citizens or permanent residents
are not available, for example in the case of situations like agricultural
enterprises, where employers will need a large labour force for a short period
of time in the autumn. The TFW programme
allows employers to take advantage of an international migrant workforce to
bring in the harvest cheaply. I also
understand that TFW is used for musicians and other performers to allow them to
get paid for their performances. All
well and good (if exploitive, in the case of agricultural workers), and limited
to a few weeks employment (that is, temporary).
However, many of the current TFW employers are recruiting
for positions that are not temporary, such as workers in restaurants
(especially fast-food restaurants) and retail operations. The employers claim that they are unable to
find Canadian workers for the wages that they are prepared to offer, and on
that basis are able to obtain a Labour Market Opinion (LMO) that will allow
them to import workers via TFW.
I guess the argument in favour of the LMOs is that what is good for the employer
is good for the economy, and that overall, Canada will benefit. I don’t see it that way. I see that employers are able to employ
workers for lower wages than are available in the local market. This allows them to provide downward pressure
on the wages that are offered overall.
Instead of Smith’s so-called invisible hand balancing out the workers’
need for a living wage with the employers’ need for affordable business costs
(wages paid), employers get to choose what they will pay, and effectively get
to tilt the whole balance in their favour as they can go elsewhere for low-cost
workers if local workers don’t bend to their demands.
Participants in the TFW often get lower pay and far fewer
benefits than their Canadian counterparts.
They are not motivated to participate in the community, as they are
temporary and will depart as soon as their contracts end. They are instead motivated to conserve as
much income as possible, live as cheaply as possible, and in general minimize the
amount that they spend in the community, whether through rents, purchasing food
or other goods or entertainment. As they
are paid less, their payroll taxes are less.
Generally, they take income out of the community almost as much as if
their work itself was outsourced.
However, at the same time that the TFW workers are taking
from the community, they are generally living uncomfortable lives. Anecdotal evidence is that living conditions
involve overcrowded living conditions and little access or even understanding
of potential benefits. On top of this,
the workers are quite vulnerable, as many do not understand their rights, and
even if they do, they may fear to stand up to employers for fear of
termination. There are certainly credible
stories available of widespread abuse of foreign workers.
