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The Globe and Mail - April 12, 2013
Temporary foreign worker program lowers wages, thwarts training,
economists say
Growth in controversial program has put downward pressure on wages,
acted as disincentive for training, experts say
The growth of Canada's temporary foreign worker program has created
distortions in the labour market, from downward pressure on wages in
some sectors to acting as a disincentive to train workers, economists say.
Documents obtained by The Globe and Mail this week show 33,000
employers, spanning all sectors, have used the program in recent years.
The huge uptake, which totalled more than 330,000 foreign workers last
year, has likely suppressed wages in some industries, such as retail and
construction, and affected opportunities for youth and immigrants,
labour market experts say. And the rush to use foreign workers has
created problems on the training front.
"Canada already has an abysmal record on training and this is another
incentive not to train existing workers," said Robert Fairholm, partner
and economist at the Milton, Ont.-based Centre for Spatial Economics.
"Not training people who are here can be very detrimental because we're
hollowing out skills in the country ... and that has the potential for
big negative long-term consequences."
There is plenty of underutilized labour in Canada. The country's jobless
rate as a whole is 7.2 per cent, but the broadest measure of
unemployment – which includes the unemployed, part-time workers who'd
prefer to be full-time and discouraged people, is 11.2 per cent,
Statistics Canada figures show. ^^^^^^^^^^^^^^^^^
Underemployment is particularly acute among young people and immigrants,
who have likely been most affected by the growth in temporary foreign
workers. Young people, newcomers and the aboriginal population are "the
groups most affected by the influx of TFWs" since their connection to
the labour market is more tenuous, and they are thus "first to be pushed
out," said Jason Foster, an industrial relations expert at Athabasca
University who's written a paper on the topic.
Plus, he added, these groups are more likely to be found in the sectors,
such as restaurants, hotels, retail and construction, where the TFW
influx has been strongest.
Just four in 10 skilled immigrants are working in jobs commensurate
with their skills and training, a portion that hasn't improved in recent
years, said Ratna Omidvar, president of the Maytree Foundation who has
long argued the TFW needs to be fixed in favour of permanent immigrants
who settle, pay taxes and integrate in Canada.
"What's happening to the other six {in 10) ?"
Montreal-based pilot Tanguy Castric was laid off from a Canadian airline
last fall, and applied to Sunwing and CanJet. Despite 18 years of
experience and related qualifications flying large-sized aircraft, he
didn't even land an interview. At around the same time, the two firms
were bringing in dozens of temporary foreign workers, according to
information obtained by the Air Line Pilots Association.
He later found himself moving from one city to another in Pakistan on a
contract with an airline there. It wasn't an easy decision to leave his
family behind, missing his baby son's first birthday and first
Christmas. And it was stressful.
On his first flight, from Lahore to Dubai, the flaps failed and so did a
reverser, causing a hair-raising landing.
In Peshawar, he was told not to leave his hotel.
He felt he didn't have much choice taking the job, however, if he wanted
to keep his skills fresh.
"It's hard to understand," said Mr. Castric, now back in Canada with his
girlfriend and baby. "I'm not angry about the companies" that employ
foreign workers, he said, "and I'm not angry at the people coming here.
I'm angry about the government letting this happen. I pay taxes in
Canada, and I believe that I deserve some rights."