The Huffington Post Alberta | Posted: 05/05/2013
earn in Canada, and providing incorrect information about the worker¹s
opportunities to obtain permanent resident status once in Canada.
Furthermore, recruiters often charge very high fees for other services,
such as obtaining an extension of a work permit (House of Commons Canada
2009, 31). -From Last Resort To First Choice
Several other studies conducted into the matter by universities, and
even the Fraser Institute, have spoken out against the program and back
the findings made by the AFL report.
Simon Fraser University professor emeritus Herb Grubel, who writes
frequently for the Fraser Institute, told the Vancouver Sun this week
the program only helps the employer at the expense of proper business
practices and at the cost of Canadian workers.
Grubel describes the TFW program to the Vancouver Sun as a business
subsidy that lets frequent users avoid increasing wages to attract
workers, invest in training, or automate production to boost productivity.
Canadians shouldn't "swallow this argument made by employers who would
rather hire immigrants than pay higher wages," Grubel told the Sun.
An Institute for Research On Public Policy report titled Do Short-Term
Economic Needs Prevail over Human Rights Concerns? states the nature of
the program makes foreign workers susceptible to all the aforementioned
abuses.
"A significant factor is the restrictive nature of the work permit
(temporary foreign workers are often tied to one job, one employer and
one location), which can have the practical effect of limiting their
employment rights and protections," the report states.
"Other problems include illegal recruitment practices, misinformation
about migration opportunities and lack of enforcement mechanisms."
According to evidence from research conducted by the University of
Alberta, as well as parliamentary committees, the abuse foreign workers
are subjected to by their Canadian employers is well documented.
Although the program's effect on Alberta workers in its worst form is
not as oppressive as it is on the foreign workers themselves, it is as
pronounced and has long-term ramifications, the AFL report states.
The TFWP has had a tangible effect on Alberta's economic realities,
keeping many out of work and keeping the wages of others low, while
economic pressures continue to siege families and escalate across the
province.
The original purpose of the TFWP when launched in 2004 was to address
acute labour shortages in critical and specific industries and sectors,
such as academia, and other specialized professions and trades.
But, in Alberta, it took on a life of its own during the oil sands boom
between 2004 and 2008.
What it has turned into now is a quick and cheap source of labour for
cost-adverse employers, the AFL report states.
"The oil sands boom meant wages had to keep pace with an economy that
was lurching ahead without a plan for labour or skills shortages and
employers wanted a way to contain labour costs," the report says.
"The only way to defy the laws of economic gravity is to flood the
labour market with a supply of workers who are unlikely to demand higher
wages, better standards, pensions, or benefits.
"When employers get easy access to vulnerable groups of lower-paid
temporary workers, wages and benefits don't have to keep pace with
economic growth. It puts downward pressure on wages when they should be
going up."
The plan also became an aggravating factor during the recession, when
unemployment grew at a violent pace, the report states.
As the unemployment rate swelled, so did the number of foreign workers
flooding into the province, particularly those hired to perform menial
jobs, which resulted in less work for Albertans with limited skill, as
the jobs they would normally take were now taken up by TFWs and the jobs
that they could get were at a deflated wage, the report adds.
The AFL study, which bases its findings on figures obtained from
Statistics Canada, Citizenship and Immigration, Human Resources Services
and Development Canada, and census figures, shows the correlation
between Alberta's unemployment rate, wages and the growing number of
temporary foreign workers being brought in to Alberta.
The numbers in the study state that despite the economic recovery
experienced by the country, and particularly Alberta since 2008, the
number of people making $13/hour or less has remained the same since the
height of the recession in 2008 likely due to the continuing flood of
underpaid foreign workers, states the report.
The youth unemployment rate has also remained steady since 2009, again,
due to an unprecedented number of unskilled foreign workers coming into
the province, it adds.
Numbers show that Alberta youth unemployment (ages between 15 and 24) is
actually on the rise, with the rate growing from 26,900 during the
recession, to 38,200 in 2011.
The number of workers in Alberta aged 20 to 24 remains effectively
unchanged (200,500 workers in 2009; 200,600 in 2011). But the number of
young people earning less than $13/hour has actually increased. In 2009,
54,200 young Albertans earned $13/hour or less, in 2011, it was 54,800.
Low wages and high unemployment are a growing phenomenon for young
people in Alberta.
Particularly in these sectors, there was never really a shortage of
labour, states the report. What there was, was a shortage of people
willing to do those jobs for less money, it states.
"The evidence is stark: Alberta employers are bringing in more TFWs than
are needed to fill the new jobs the economy is creating... labour market
conditions are not dictating TFW policy," states the report.
"Outside booming oilsands regions, the situation can be far more stark.
Consider Medicine Hat, where the economy has shed more than 10,000 jobs
since 2008 but hundreds more Temporary Foreign Workers arrive."
Additionally, many workers are being forced to become involuntary
part-time employees, further driving down wages and the need for benefits.
During the height of the recession, in 2009, small-town Alberta saw the
arrival of 13,480 new TFW, adding to the 29,385 already present, as
18,500 jobs disappeared.
The story is even more marked in 2010, when 213 per cent more TFW
arrived than jobs were created, at a time when there already were 527
per cent more TFW than new jobs.
And there's little economic benefit to municipalities from having such a
large population of temporary workers, despite the fact that population
is large enough to put a significant demand on health services and real
stress on municipal and provincial infrastructure, the AFL states.
By scale, their impact is even more profound on smaller municipalities.
For municipalities, stagnant wages at the lowest end of the job
market means an erosion of the tax base, fewer homeowners, and less
stability for local small business. Temporary Foreign Workers cannot put
down roots in our communities. While most would like to live in Canada
as permanent residents, their temporary status means they are likely to
send most of their earnings back to their country of origin. Because
they are not allowed to stay in Alberta, they are not going to be buying
furniture for newly-purchased homes or having their cars serviced at the
local mechanic¹s shop. They are not investing their money in their local
credit union, or taking out a loan for a new vehicle. They do not have
disposable income to spend at the local café or sporting goods shop.
The impact these labour populations have on their communities was made
clear during the beef recall crisis that struck Brooks, where the
slaughterhouse at the epicentre of last fall's E. coli scare is located.
Brooks, located in eastern Alberta and with a population of just more
than 13,000, found itself in a state of crisis after more than 2,000
workers, hundreds of them classified as temporary foreign workers, were
left without income when XL Foods was forced to close down.
^^^^^^^^ <=== largest beef recall in Canadian
history (E coli)
With no savings, disposable income or any real possessions to leverage
for quick income, many of them were forced to rely on the community for
everything from food to shelter until the plant reopened two months later.
What Alberta needs, rather than the TFWP, is better and more effective
immigration policies, for government and industry to make themselves
responsible for training Albertans, and for industry to pay workers
salaries dictated by market pressures, the report concludes.