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Yk split on temporary foreign worker use Union head says workers exploited,
but others say they're needed to fill job vacancies
Graeme McNaughton
Northern News Services
Published Wednesday, June 12, 2013
SOMBA K'E/YELLOWKNIFE
Some city businesses are taking advantage of lower-paid temporary foreign workers instead of hiring territorial residents at wages that reflect the high cost of living in the North, says Mary Lou Cherwaty, president of the Norther Federation of Labour.
Mary Lou Cherwaty, president of the Northern Territories Federation of Labour, stands in front of the downtown Subway, one of the businesses an access-to-information request listed as having applied to utilize temporary foreign workers. Subway's owner did not comment before press time. - Graeme McNaughton/NNSL photo |
"In the worst case scenario, the use of temporary foreign workers is nothing more than indentured servitude," said Mary Lou Cherwaty, federation president, who represents union workers in the Northwest Territories and Nunavut.
"If anything happens, they get sick or they complain, they get sent home," said Cherwaty, adding that it is very difficult to find temporary workers who are willing to come forward with any problems.
Cherwaty said while some business owners claim they can't find Northern residents willing to take the job, it comes down to pay.
"If (those businesses) paid what it costs to live in the territories, they'd be able to find workers.
"When you look at Northwest Territories' rate of unemployment, there's people out there looking for work."
According to the Northwest Territories Bureau of Statistics, nearly nine per cent of eligible residents in the territory, more than 2,000 people, were unemployed in May. This is higher than the national unemployment rate, which Statistics Canada pegs at 7.1 per cent for the same time period.
The use of temporary foreign workers garnered national headlines in April when the Royal Bank of Canada (RBC) hired temporary foreign workers to replace 45 members of the bank's regulatory and financial applications team in an effort to reduce costs.
After a public outcry, RBC announced last month they would no longer be outsourcing those positions.
A Yellowknife media outlet filed an access-to-information request to obtain a list of businesses in the Northwest Territories and Nunavut that had filed for a labour market opinion, which is needed to legally bring workers from outside of the country.
At least 65 of those businesses listed are established or have offices in Yellowknife, including Northern News Services.
Ownership of one of those businesses, Subway, agreed to discuss hiring practices with Yellowknifer, however, was unavailable to comment by press time.
Marion Lavigne, the president of Outcrop Communications, a creative advertising agency in Yellowknife, that employs temporary foreign workers, disagreed with Cherwaty's assertion. She said those qualified for a position at her company already have jobs, which led her to search in other parts of the country and, later, abroad.
"After searching Canada for nearly a year for experienced web developers and spending lots of time and money, we came to the conclusion that it was impossible to find a suitable candidate who would actually move to the NWT," said Lavigne. "So we started reviewing international applications."
She said some of her employees come to Canada on two-year work permits and student visas and she expects those workers, who have come from countries including Brazil, India and Mexico, to become permanent residents.
Lavigne's business isn't the only one in Yellowknife that has dipped into the foreign worker pool to fill jobs.
In 2012, Human Resources and Skills Development Canada greenlighted more than 202,000 positive labour market opinions for temporary foreign worker positions in Canada.
Of those, 215 were issued in Yellowknife, an increase from the previous year when 155 positions were approved.
Under the current temporary foreign worker program, employers must prove they have exhausted all efforts to recruit and train Canadian workers, and that the hire of a foreign worker will not have a negative impact on the Canadian labour market.
As part of new federal regulations announced in April, employers must prove that any foreign workers be paid at comparable wages as a Canadian worker in the same labour field. Employers are also subject to inspections following the hiring of workers from outside of the country. Human Resources and Skills Development Canada (HRSDC) can request to see payroll records and time sheets to ensure the temporary workers are being paid what was set out in the original contract.
As well, places of work are now subject to searches without warrant by agents from HRSDC or Citizenship and Immigration Canada to ensure that requirements of federal regulations are being met.
If employers are found to have violated regulations, they can be barred from hiring temporary foreign workers for up to two years.
Employers who hire workers not permitted to work in Canada are subject to a fine of up to $50,000 and up to two years in jail.
One politician and former business owner said there is no need for Yellowknife businesses to hire internationally.
"I was in business for over 20 years in the service industry and hired over 15,000 employees during my tenure and not once did I use a foreign worker program. I always found a way to hire locally," said Range Lake MLA Daryl Dolynny.
Cherwaty said the current system is broken.
"We're advising the federal government to scrap the program," said Cherwaty. She said the money should be invested in training and apprenticeship programs.
The Yellowknife Chamber of Commerce supports the program, as it can help businesses when there aren't any qualified people available.
"We prefer hiring local," said Leslie Campbell, the executive director of the Yellowknife Chamber of Commerce. "But, we do understand that businesses may need to bring in foreign workers to fill vacancies.
"The Chamber supports programs that help employers get the help they need."
Cherwaty added that while her group supports giving territorial residents priority in finding jobs, that doesn't mean the Northern Territories Federation of Labour is against immigration.
"What we're against is the abuse of human beings," she said.
Steps required to hire temporary foreign workers
Apply for a Labour Market Opinion
The employer must apply for a labour market opinion (LMO) through Human Resources and Skills Development Canada. The LMO is an assessment of the likely impact that the hiring of a temporary foreign worker by this company will have on the Canadian labour market.
In the application, the employer must show that the vacant position had been properly advertised in an effort to fill it with a Canadian applicant.
The employer must also show that, if applicable, the relevant labour union has been consulted about the potential hire.
The employer can submit the application with or without a foreign applicant attached.
Job offer
If the LMO application is approved, the employer must forward a copy of the written response from HRSDC, along with a copy of a signed job offer or employment contract to the prospective foreign worker. The foreign worker would then apply for a Canadian work permit.
If the LMO application is denied, the employer has the right to appeal the decision.
Work permit
When applying for a work permit, the prospective employee must show a copy of the positive LMO, a signed job offer, along with proof of identity. The applicant is also subject to a medical examination if the job contract is longer than six months.
The foreign worker must also apply for a temporary resident's visa.
The work permit application can take anywhere from one to nine months to process, depending on where the permit was filed from.
The prospective worker can be denied a work permit if he or she is found to have failed the medical examination, has a criminal record, is determined to be a security risk or is not believed to have met the criteria set out in the job offer from the employer.
Entry to Canada
If the worker is successful in the permit application process, they are admissible to Canada.
When arriving in the country, they must present all applicable documentation for their permit and employment status, along with their temporary resident visa.
- source: HRSDC
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