James McLean: Exploitation of temporary foreign workers is a problem Canada must fight

The program is temporary only in name, and has created a permanent low-wage “under-class” who are subject to working in exploitative conditions.

By: James McLean

I work for an organization that is dedicated to supporting human trafficking survivors in Canada. Each day, our trained staff help vulnerable individuals avoid harm, exit their trafficking situations, and gain access to the supports they depend on for their recovery. This work gives us a unique perspective into where we are collectively making progress. It also allows us to see where additional work is needed in our shared fight to end human trafficking in our country.

Canada has seen a dramatic increase in the number of Temporary Foreign Workers (TFWs) that it has accepted over the past decade. These workers keep entire industries stay competitive. Many businesses simply would not survive without them. Unfortunately, as the number of workers has increased, there has been no commensurate investment in the resources required to support them.

Based on migrant workers’ first-hand accounts, it is hard not to conclude that the TFW program places business interests ahead of human rights. The program makes it possible for companies to use vulnerable, low-wage workers to fill labour gaps that, in some circumstances, could otherwise be addressed through other means (e.g., innovation, automation, increasing wages, consolidation of businesses, etc.). In the low-wage and agricultural streams, employees are tied to a single employer. When exploitation inevitably occurs, closed work permits and bureaucratic barriers make it difficult for workers to leave their employers, report abuse and seek support.

To put it succinctly: the program is temporary only in name, and has created a permanent “under-class” of employees that receive low wages and are subject to working in exploitative conditions.

Equally worrying, front-line service agencies are not adequately funded to support the dramatic influx of workers that Canada has welcomed since 2015. This makes it difficult for services to adequately respond to the needs of migrant workers.

How can policymakers respond?

The government needs to shift Canada away from its dependence on low-wage workers. This does not mean shutting the door on migrant labour. Instead, it means developing a rights-based strategy that prioritizes fairness, justice and equal opportunity. Such an approach should set two clear goals to be achieved over the next decade:

First, guarantee that every worker who comes to Canada has industry-wide work permits, equal access to social services, a pathway to permanent residency, and the ability to unionize. Together, these policies will remove the harmful power imbalance between employers and migrant workers that facilitates labour trafficking. We understand that these measures will increase the cost of labour. Therefore, the government should prepare for this transition via our second recommendation …

The government must work with key stakeholders to develop a plan to help employers adapt to this environment and move away from low-wage labour. This could include subsidies and tax incentives to offset wage increases and to spur automation and innovation in industries that currently depend on low-wage workers.

By adopting these recommendations, Ottawa and the provinces would be giving employers a choice: continue employing migrant workers but in an environment where reasonable wages and safer workplace rights are now guaranteed. Or wind down their reliance on low-wage migrant labour through productivity-enhancing investments or the hiring of locals.

Ending Canada’s reliance on exploitative low wage labour is not only morally right — it is economically smart. Canadian productivity is projected to rank the lowest among all OECD countries between 2020 and 2030. A fair, just and equal transition strategy would make our businesses more productive while simultaneously ending exploitation. It won’t be easy. But it’s important.

James McLean is the director of research and policy at the Canadian Centre to End Human Trafficking.

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