Dominique Lamothe, HR Director at Quebec-based trucking company Groupe Nadeau, fears her firm will face severe challenges when new rules for high-wage temporary foreign workers take effect on Friday. Groupe Nadeau, which operates a fleet of 200 trucks and 1,400 trailers, currently relies on 70 full-time heavy mechanics—half of whom are temporary foreign workers hired under the high-wage stream.
Employment Minister Randy Boissonnault’s recent announcement on October 22 detailed that the income cap for high-wage temporary foreign workers will increase to 20% above the provincial median income. This adjustment translates to a $5 to $8 hourly wage hike, potentially moving 34,000 jobs from the high-wage to the low-wage stream, which carries stricter restrictions and will no longer process applications in regions with unemployment rates exceeding 6%.
“We will not be able to renew all these work contracts because of this new law,” Lamothe explained. The wage increase required to maintain the high-wage status would be unsustainable, risking the loss of 35 crucial mechanics. Lamothe added that efforts to hire local talent have failed, as the applications received lack the necessary skills. “They’re not in the six per cent who are unemployed,” she said, highlighting the gap between job requirements and available local talent.
Quebec’s additional requirement for French proficiency in permanent residency applications compounds the recruitment challenge for temporary workers. Government data reveals a sharp increase in temporary worker approvals: from 5,495 in 2020 to 11,106 in the transportation sector this year. The construction sector has experienced a similar trend, with approvals rising from 4,565 in 2020 to 15,360 in 2023, primarily within the high-wage stream.
Rodrigue Gilbert, President of the Canadian Construction Association, emphasized that the industry is grappling with a “major labour crisis,” with 45,000 vacancies across roles ranging from entry-level laborers to project managers. “The government seems to think the crisis is easing, but we don’t believe that at all,” Gilbert said.
Employment Minister Boissonnault defended the changes, emphasizing that the temporary foreign worker program should not suppress wages or bypass local talent. “There are Canadians, permanent residents, people living here right now who can take these jobs,” he stated, underscoring the government’s aim to prioritize domestic workers.
However, filling positions in skilled trades is not straightforward. Workers require Red Seal certification, a national standard of competency, which many foreign-trained workers do not have. “Having construction experience in other countries and being Red Seal qualified in Canada are two different stories,” Gilbert explained, noting that only about 9,000 of the 50,000 permanent residents with construction experience have met this standard over the last decade.
Adding to the complexity, the government is planning to reduce the number of permanent residents admitted by 20% by 2027, a decision Independent Senator Ratna Omidvar warns could have unintended economic consequences. “We might make housing more available, but without enough workers, building more homes will be a significant challenge,” Omidvar said.
Omidvar advocates for reforms to reduce abuse in the temporary worker system, such as tying permits to sectors rather than specific employers, mandating surprise inspections, and establishing a commission to coordinate between employers, workers, and government.
As a further deterrent, Boissonnault is prepared to raise the application fee for employer assessments, currently set at $1,000 per position, if temporary worker numbers do not decline following these measures.