Higher Paid FOREIGN WORKERS Get a RAISE in 2024?

New Wage Hike for Temporary Foreign Workers Aims to Boost Canadian Employment and Address Criticism of Labor Practices

The Canadian federal government is preparing to raise the minimum wage for temporary foreign workers in the high-wage stream. This new rule aims to encourage employers to hire more Canadian workers and reduce their reliance on foreign labor.

Under the current program, employers must pay temporary foreign workers at least the provincial median wage to qualify for permits through the high-wage Labour Market Impact Assessment (LMIA) stream. However, Employment Minister Randy Boissonnault is set to announce a major update. Starting on November 8, employers will be required to pay wages that are 20% higher than the provincial median for high-wage temporary foreign workers.

This change is part of the government’s broader strategy to prioritize Canadian hiring. The Liberal government has been criticized for increasing the number of temporary foreign workers and international students entering Canada. Many believe this influx is contributing to housing shortages and higher costs of living, adding pressure on the local economy. Additionally, the Temporary Foreign Worker Program has faced accusations of worker exploitation and mistreatment, raising further concerns about the program’s management.

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To hire temporary foreign workers, employers must go through the LMIA process, which involves demonstrating that they cannot find enough Canadian workers for the positions they need to fill. In Ontario, where the current median hourly wage stands at $28.39, employers will now need to offer at least $34.07 per hour to temporary foreign workers when the rule comes into effect.

The new wage requirement is expected to impact up to 34,000 temporary workers under the LMIA high-wage stream. While existing work permits won’t be immediately affected, renewals will need to meet the updated wage criteria.

Rising Reliance on Temporary Foreign Workers Spurs New Wage Rules and Stricter Eligibility to Prioritize Canadian Jobs

Recent data from Immigration, Refugees, and Citizenship Canada shows a significant rise in the number of temporary foreign worker permits issued. In 2023, 183,820 permits became effective, marking an 88% increase from 2019 when 98,025 permits were issued. This surge reflects the growing reliance on temporary foreign workers across various industries in Canada.

The wage increase aligns with the government’s ongoing efforts to tighten eligibility rules for temporary residents, including both foreign workers and international students. Along with wage hikes, recent policy changes have imposed caps on the number of low-wage foreign workers allowed in certain industries. Additionally, the government has restricted work permits in metropolitan areas with high unemployment rates, aiming to ensure more Canadians have access to jobs in those regions.

However, temporary foreign workers in the agriculture sector remain exempt from the recent rule changes and wage increases. These exemptions recognize the vital role that agricultural workers play in supporting Canada’s food supply.

As the government continues to reform the Temporary Foreign Worker Program, the focus remains on balancing the need for foreign labor with increasing job opportunities for Canadian workers. This latest wage hike serves as one more step toward that goal.