Canadian Construction Looks To Cut On Interim Foreign Staff

According to a recent report by Employment and Social Development Canada- ESDC, employers participating in the Temporary Foreign Workers programme demonstrated a high compliance rate of 94%.

As per the report released on September 27th, out of the employers inspected, 94% were determined to be compliant, while the remaining 6% were found to be non-compliant.

Between April 1, 2022, and March 31, 2023, ESDC conducted over 2,100 inspections, which led to the finding of 116 employers who were determined to be non-compliant. Among the three instances of severe non-compliance, one specific employer in the construction industry was highlighted. This employer was fined $53,000 and prohibited from employing temporary foreign workers until February 2028. The reason for these penalties was the employer’s failure to provide sufficient wages and working conditions.

During that period, this particular employer was one of the 93 companies that were fined a total of $1.54 million for various violations. Additionally, it was one of the 7 companies that received an interim prohibition on hiring workers through the programme.

Several other companies faced inspections and were found to be in violation of regulations. A construction company located in Surrey was fined $28,000 for not maintaining proper documentation and for breaking provincial laws pertaining to the employment of foreign workers. Apart from that, there were certain other companies that were fined $15,000 each for failing to provide requested documents.

In total, 13 out of the 116 cases of non-compliance were attributed to companies in B.C.’s building sector. However, industry associations argue that this data does not provide a complete representation of the situation.

Chris Gardner, who happens to be the president of the Independent Contractors and Businesses Association, expressed his dismay at the thought of people mistreating others in such a manner. It is a positive outcome that they were discovered, penalised, and will be ineligible to benefit from the programme for a period of 5 years.

However, the utilisation of temporary foreign workers is crucial for numerous businesses, particularly those in the construction industry, due to the scarcity of skilled domestic workers. While it is preferable to have permanent residents, there are situations where this may not be possible due to certain conditions.

According to Gardner, employers have been dealing with a shortage of skilled workers until recently and have been expressing the need to find a solution.

ESDC says Canada hosted a total of 204,700 temporary residents who held work permits under the Temporary Foreign Worker Programme. These workers accounted for around 1% of the overall labour force.

Chris Atchison, the president of the BC Construction Association, expressed the sector’s support for complete compliance with employment regulations. However, he also emphasised the importance of employers utilising the federal skilled trades as well as category-based draws more frequently.

Atchison suggested that the establishment of a BC immigration stream, which would allow skilled tradespeople to submit applications for permanent residency and gain entry without being restricted to a specific job offer, would be beneficial.

He explained that the TFW programme is not suitable for BC’s construction industry. The programme allows workers to come in temporarily and be associated with a specific employer. It provides workers with an unstable position, which leads to inadequate protection. Although the federal government has taken measures to enhance the opportunities for workers to obtain permanent residency through this programme, the existing system still presents challenges when it comes to recognising credentials.

Atchison stated that Red Seal trades, such as electrical work, are not included in this. Certification for these trades happens to be mandatory. The construction industry requires qualified workers, specifically skilled tradespeople along with trained journeypersons, who are willing to relocate to British Columbia with their families and contribute to the construction industry’s stable workforce.

According to Statistics Canada, the construction sector in British Columbia employed a total of 222,900 workers in September this year.