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The Liberals are using foreign workers to suppress wages for their political benefactors

Temporary foreign workers labour in a strawberry field in Mirabel, Que., Wednesday, May 6, 2020.

Temporary foreign workers labour in a strawberry field in Mirabel, Que., Wednesday, May 6, 2020. Photo: Graham Hughes / Canadian Press

The Trudeau government is under fire for changes it made to the temporary foreign worker program in 2022. The amendments boosted the number of people employed under the program, suppressing domestic wages and making life harder for workers, both foreign and domestic, during an affordability crisis, no less. The Liberals deserve the criticism. Indeed, the program is so toxic, the Liberals can hardly be trusted to govern.

The changes to the low-wage category of the program were designed to boost the labour supply in industries having a hard time finding workers. Orthodox economists – and basic math and psychology – will tell you the answer to that problem ought to be higher wages. That’s what we’re told time and time again: people respond to incentives and disincentives. 

For workers, higher wages are a major incentive. But business didn’t want to pay, so they lobbied the feds, and the feds obliged by upping the numbers of low-wage temporary foreign workers, crushing labour rights in the process. Temporary foreign workers (TFWs) are easily exploited since they aren’t permanent residents and their temporary resident status is tied to a specific job, which frequently leads to employer abuse and denied employment rights, such as in British Columbia’s construction industry

The government also rigged the market for industry, with the influx of cheap foreign labour suppressing the capacity for domestic workers to bargain for better wages and working conditions. 

Two years later, the effects of the program are being felt. Young workers are struggling to find a job while employers – among them, the coffee-chain Tim Hortons – pass them over for cheap temporary foreign workers. 

In 2023, Canada brought in roughly 240,000 temporary foreign workers across all program streams. That is more than double the pre-pandemic number that saw 109,000 TFWs admitted in 2018. Drawing on data from Employment and Social Development Canada, CBC’s Paula Duhatschek shows the rise in admissions was high in some industries – 67 per cent for farm workers, for instance – and beyond staggering in others, with a 1,414 per cent rise in light duty cleaners, a near 4,000 per cent increase in construction and labourers, and a 4,802 per cent jump in the food industry.

On X, formerly Twitter, economist Mike Moffat detailed how the changes led to a near tripling of temporary foreign workers entering the market under the low-wage stream since 2022. The trick was the government’s deregulation of the program, which included raising the percentage of workers a business could dedicate to temporary workers from 10 to 20 per cent, and as high as 30 per cent in some industries. On top of that, the Liberals waived a rule in certain high-unemployment regions that prevented temporary foreign workers being hired — meaning even economically struggling populations, in places like Nunavut, Newfoundland and Labrador, or Northern Manitoba, weren’t spared from the undervaluing of their labour.

Moffat’s conclusion is as scathing as it is incisive: “This was a deliberate move by the federal government to suppress wage growth for low-income Canadians, and increase the number of temporary workers, who have much weaker labour rights than permanent residents.”

In July, CBC reported that some temporary foreign workers in Alberta were being scammed into paying illegal fees to secure a job through the sale of labour market impact assessments which are part of the hiring process under the program. Some were hit for as much as $75,000, which immigration lawyer Jatin Shory called “a form of pseudo slavery.”

If the Liberals were trying to prove Karl Marx right, they did a good job. Just over 175 years ago, the economist and philosopher warned "The executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie."

The word “slavery” is being used by others, too. A United Nations official called the program “a breeding ground for contemporary forms of slavery” and warned in no uncertain terms that foreign workers were being exploited in Canada. He argues that without permanent resident status, foreign workers are at a higher risk of rights violations.

If the Liberals were trying to prove Karl Marx right, they did a good job. Just over 175 years ago, the economist and philosopher warned "The executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie." That’s what the Liberals are: a government by and for the ownership class.

The government is now trying to clean up its own mess, or at least pretending to. Employment and Workforce Development Minister Boissonnault is talking about ending temporary foreign worker fraud, with his department describing the program as one that’s “designed as an extraordinary measure to be used when a qualified Canadian is not able to fill a job vacancy.” But fraud isn’t the central problem here, it’s the changes the government itself made to the low-wage stream in 2022. The call is coming from inside the house. 

Boissonault is also considering reining in the low-wage stream of the program, refusing  applications for TFW jobs that pay below the median wage by province or territory – a move which industry, predictably, opposes. That’s the least the government can do and it’s a scandal it hasn’t done so already. 

The low-wage stream of the program ought to be massively reined in with an eye to eventually eliminating it for all but the most dire cases, and then providing those who do enter with high, stable wages and safe working conditions; permanent residency; and a fast path to citizenship. 

The temporary foreign worker is a tool for industry, with the state playing the role of servant for capital. These free marketeers don’t actually believe in the free market, in which the value of labour moves up when demand for workers rises. They want a rigged system with cheap labour, below market rate, and they want the state to artificially suppress wages to deliver that for them. The state has been happy to oblige. It’s spineless and cruel stuff and it needs to end now.

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