Businesses warn against more foreign-worker cuts

Westman business leaders are warning that scrapping or further tightening the temporary foreign worker program would worsen an already severe labour shortage, cripple food production and strain rural economies.

Meaningful consultation with industry is crucial before implementing any revisions that could disrupt the flow of essential labour, Brandon Chamber of Commerce president Jennifer Ludwig told the Sun.

“It is important that the federal government carefully consider and evaluate any changes it wishes to make to the temporary foreign worker program, because the impacts will be deeply felt across sectors that are already struggling to fill essential positions,” Ludwig said.

“Most of the employers I have spoken with are currently struggling with a shortage of skilled labour — both in the professions and trades. And this has not been short-lived,” she said.

The federal government rolled out new restrictions to the program on Sept. 26, 2024. It stopped processing Labour Market Impact Assessments (LMIAs) in the low-wage stream for regions with unemployment above six per cent, except in food security, construction and health-care sectors. Employers were also capped at hiring up to 10 per cent of their workforce through the program, while the maximum job term was cut from two years to one.

Conservative leader Pierre Poilievre has recently called for the program to be scrapped, arguing in September that it had “flooded the market with cheap labour” and made it harder for young Canadians to find jobs. He challenged the Liberal government to explain why it was “shutting our own youth out of jobs” by replacing them with low-wage, temporary foreign workers from “poor countries who are ultimately being exploited.”

Local business owners have taken to social media to defend the program and dispel misconceptions.

Manitoba restaurant operator Greg Crisanti said his company prioritizes hiring Canadians first but continues to face severe staffing shortages.

“Temporary foreign workers are a cheaper option,” he wrote. “We pay competitive wages and strong benefits to all employees and often cover additional costs such as travel when using the program.”

Crisanti said hiring through the program has helped reduce burnout among local staff.

“In smaller communities, finding labour can be extremely difficult. The TFW program has helped us retain our local staff by easing the stress of being understaffed.”

Agribusiness owner Mara Rozitis Shome shared similar frustrations.

“There is nobody local applying, so I am trying to qualify for a TFW, and the process is pure hell. Nobody would do this just to avoid hiring local.”

The program, Ludwig said, can be improved, but she urged Ottawa to avoid one-size-fits-all policies.

“Our country is vast, and the issues experienced in Toronto may not be the same as those experienced in Brandon or other rural areas,” she said. “Geography must be considered.”

She also called for greater business involvement in any policy reviews.

“The Brandon chamber would urge the federal government to include representatives from the business sector in consultations before implementing any changes to this program,” she said.

A federal government spokesperson defended the temporary foreign worker program as a “last-resort program” designed to help employers meet genuine labour market needs while protecting worker safety and program integrity.

“Canadians are always first in line for jobs. Employers must prove attempts to hire locally, and the Government enforces that,” the spokesperson with Employment and Social Development Canada said in an email.

“Tightening measures between September 2024 and 2025 led to a 50 per cent reduction in applications overall and a 70 per cent drop in the low-wage stream,” the spokesperson said.

The government has also stepped up inspections — conducting 1,435 employer compliance checks in the last fiscal year — and issued record penalties for non-compliance, including a $1 million fine and 10-year ban for a fish and seafood employer that mistreated workers, the spokesperson said.

“The program is reviewed and adjusted regularly,” the spokesperson said. “It supports compliant employers with genuine labour market needs while prioritizing health, safety, and fairness.”

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