Trucking association executives say that a key component of the temporary foreign worker (TFW) program is being abused, with foreign workers paying tens of thousands of dollars for an opportunity to live and work in Canada.
“The Canadian Trucking Alliance on many occasions has seen unusual activity in our sector and irregularities when it comes to some carriers and the number of approved LMIAs [Labour Market Impact Assessments] they have,” said Stephen Laskowski, president of the Canadian Trucking Alliance (CTA) and Ontario Trucking Association.
“In some cases, we can see some companies with huge numbers of approved LMIAs in proportion to their fleet size. This should be an obvious red flag for authorities that draws questions as to why more drivers are required than trucks registered to the fleets.”
When an employer is unable to find an employee – a Canadian or permanent resident – with a particular job skill for their business, they can file a LMIA application with Employment and Social Development Canada (ESDC) to hire a foreign worker.
“An LMIA administered by the [TFW] program assesses many factors to ensure the protection of both the Canadian labor market and foreign workers,” said Mila Roy, from ESDC’s media relations office.
The ESDC official noted that sectors identified as high risk for LMIA fraud receive an enhanced assessment to validate the employer’s business operations and the human resource needs.
Fines and penalties
“The Government of Canada does not tolerate any abuse and/or misuse of workers of the program. Employers who are found non-compliant with TFW program conditions can face consequences such as administrative monetary penalties that range from a $500 penalty to a $100,000 fine per violation of up to $1 million per year and a temporary or permanent ban from the TFW program,” Roy said.
An immigration consultant based in Brampton, Ont., called the program meant to help businesses and the economy grow “a toolbox for abuse.”
Manan Gupta, president of Skylake Immigration told TruckNews.com that visitors to Canada often buy an LMIA through unethical consultants and employers, converting their visitor visas into work permits.
Gupta has heard of people paying up to $60,000 for a LMIA in Ontario. The prices vary by province.
Aaron Dolyniuk, executive director of the Manitoba Trucking Association (MTA) said he’s heard of people being charged between $50,000 and $60,000. Robert Harper, president of Alberta Motor Transport Association (AMTA), said he’s heard people have paid $25,000 and as high as $40,000.
Dolyniuk said his organization is concerned about abuses taking place and urged government action.
“Complaints include people being charged for work permits, paid less, much less than minimum wage, indentured servitude and forced work, fear of being deported and fired and jeopardizing their status in Canada,” he said.
Worker abuse
Harper said the AMTA has found LMIAs issued to companies with no employees. “We’ve phoned them and asked if they are hiring and they’ve said they are not,” he said.
“We’ve heard anecdotally of people who have been abused. People who have paid for LMIAs. People are being threatened to not report abuse, not only here but in their country of origin.”
Immigration consultant Gupta says some employers are using the shortage in the transport truck driver occupation to add weight to their LMIA applications.
Interestingly, some companies are not just hiring truck drivers. They are hiring administrative staff, mathematicians, statisticians, computer programmers, among other professions.
Gupta said people are using LMIAs to bolster their comprehensive ranking system score by 50 points, so it becomes more competitive in the express entry pool for immigration. “This does not guarantee being selected in the express entry draw, but people are willing to pay and take a chance,” he said.
Assessment process
EDSC official Roy noted that during the LMIA assessment process, attention is paid to positive factors such as job creation or knowledge transfer to Canadians, as well as negative factors such as wage suppression or displacement of Canadian workers.
The genuineness of the job offer and ensuring that employers meet program obligations related to fair wages and worker protection measures is also checked. Also, whether the hiring of the foreign worker will help fill labor shortages is examined.
The EDSC scrutinizes if the employer has sufficiently advertised available positions to Canadians including underrepresented Canadians and permanent residents. Before applying for a LMIA, employers must conduct three different recruitment activities, including advertising on the Government of Canada’s Job Bank site and at least two additional methods of recruitment that are consistent with the occupation and targets different underrepresented groups.
Gupta noted, “Some employers creatively show a shortage of labor, and try to prove that they are not able to find workers in Canada. They post advertisements on job websites and even on the government’s Job Bank site.”
Roy said the ESDC completed 2,122 inspections in all sectors under the TFW program during the last fiscal year.
“$2.1 million in fines were issued to non-compliant employers for violating program rules, an increase of approximately 36% from the prior fiscal year, when $1.54 million in fines were issued. Additionally, a total of 12 employers were banned from the program, compared to the previous fiscal year, when seven employers were banned. Since last year, the amount of fines and the number of employers banned from the program have also increased,” Roy said.
How to report abuse
The ESDC operates a confidential tip line offering services in more than 200 languages and an online reporting tool. All allegations received are reviewed, and appropriate action is taken within two business days. If criminal activity is suspected, the information is forwarded to law enforcement agencies like the Canada Border Services Agency and/or the Royal Canadian Mounted Police.
Laskowski said the CTA has long championed the need for more vetting for participating companies and for the introduction of a mandatory trusted employer program for the trucking sector.
He added the CTA has worked with ESDC for years on improving the LMIA process and has seen some incremental changes that have helped. “It is still abundantly clear that the system is still being abused and that ESDC and Immigration, Refugees and Citizenship Canada still have a lot of work to do,” he said.
MTA’s Dolyniuk said a better job needs to be done on screening carriers if they have the processes and experience to support recruitment, training and settlement of foreign workers.
Gupta reiterated Laskowski’s comments saying only certain carriers should be allowed to apply for LMIAs. Those with shady records and CVORs should not be allowed to do so.