A job listing for a restaurant manager at a Burger King in Mississauga, Ontario, has ignited a discussion about whether the Temporary Foreign Worker (TFW) program is being misused to avoid offering higher wages to Canadians.
On September 25, the job opening was posted on the federal government’s online job bank, offering a salary of $48,000 per year, or just under $25 an hour. The listing noted that the employer had applied for a Labour Market Impact Assessment (LMIA), which is a prerequisite for hiring a foreign worker when no suitable Canadian candidates are found.
Burger King explained that the position had been open for several months without attracting qualified candidates, despite being advertised widely. The company stated that the offered wage is competitive for the area, based on data and the franchisee’s hiring experience.
While the practice is legal and follows current regulations, it has raised concerns about the potential impact on wage growth in Canada. Critics argue that the TFW program is often used by employers to source cheaper labor, which can suppress wages for Canadian workers. Matthew Green, the federal NDP’s labor critic, said, “Employers are using the TFW program not as a short-term solution, but as a way to avoid offering higher wages that would attract and retain local workers.”
Economists have expressed concerns that the TFW program allows companies to avoid raising wages or investing in technology and training. Christopher Worswick, an economist at Carleton University, pointed out that without the program, businesses might be compelled to offer higher wages or invest in other solutions to fill positions.
The federal government recently announced new restrictions on the TFW program, including refusing applications for low-wage positions in areas with high unemployment rates and reducing the maximum duration of employment from two years to one. Prime Minister Justin Trudeau emphasized the need for Canadian businesses to invest in training and technology instead of relying on low-cost foreign labor.
However, the Burger King job posting was listed just a day before these new rules took effect. Critics like Worswick suggest eliminating the TFW program altogether in favor of open work permits, which would allow foreign workers more freedom to change jobs and reduce the risk of exploitation.
The debate also touches on productivity issues. Benjamin Tal, deputy chief economist at CIBC, noted that Canada’s reliance on low-paying industries and cheap labor contributes to the country’s lagging productivity. He argued that limiting access to low-cost foreign labor could encourage companies to innovate and improve efficiency.
In response to the changes, industry representatives like Max Roy from Restaurants Canada suggested creating programs to match and train Canadian workers, making them ready to fill roles traditionally occupied by temporary foreign workers. While this shift may challenge businesses in the short term, it could lead to more sustainable practices and better wages in the long run.