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Intake through the program has grown by 45% and tying permits to a single employer increases the odds of exploitation and abuse, Armine Yalnizyan writes.

This time last year, the media buzz about the labour market was over The Great Resignation, a bigger phenomenon in the United States but occurring here too, as workers took advantage of record-high job vacancy rates to abandon suboptimal jobs for better ones.

This year there’s an emerging made-in-Canada phenomenon that has barely generated a whisper, let alone a buzz: wage slaves from abroad. It’s a result of public policy.

The idea of owning workers seems like an abomination from another time and place. In Canada, in 2023, it’s difficult to comprehend how any worker could be beholden to a single employer.

Nonetheless, this year the government of Canada has issued more than 142,000 permits to employers to hire temporary foreign workers who are not allowed to work for anyone else. It’s the highest number ever issued, and that figure only covers up to August. Intake through the Temporary Foreign Worker Program has grown by 45 per cent across Canada this year compared with the same eight months in 2022, a record-breaking year of population growth, almost exclusively (96 per cent) due to newcomers.

Permits are issued to employers who make the case that they cannot find a Canadian to do the job — at “prevailing wage rates,” that is. When the federal government finds the reasons provided on the Labour Market Impact Assessment form acceptable, it permits a foreign worker to enter Canada to work only temporarily, and only for that employer.

Just since August 2021, the federal government has expanded the categories of occupations eligible for such a permit and increased the allowable proportion of migrant workers working for an individual employer to 30 per cent from 10 per cent. That gives such employers huge influence over not just their migrant workers but all their workers. It is far from clear this was necessary policy reform. It should be reversed.

Ontario’s employers are escalating their dependence on the permanently temporary in sectors such as warehousing and transport trucking, personal care workers in long-term-care facilities, restaurants and fast food outlets, and farm workers.

The vast majority of employers are moral. But tying permits to a single employer increases the odds of exploitation and abuse.

Although the federal government conducts investigations of employers using the Temporary Foreign Worker Program, employers are often given a heads-up before the inspection takes place. Last year, more than 2,100 inspections were carried out. Only 116 were found non-compliant.

Of the 766 employers on a public registry of employers who broke the rules over the past seven years, the most frequent violation was wage theft — not providing the pay promised in the contract. Only seven employers were banned even temporarily from hiring migrant workers through this program; 23 were just given warnings.

Wage theft is not the only issue. Farm workers had an extraordinarily high incidence of disease and death during COVID because of their living conditions. Abuse and assault of workers providing care to people in their homes and institutions remains all too common. These are the very categories of migrant workers least likely to find a pathway to permanence.

Migrant workers may have the same rights as Canadian workers on paper but are less likely to know what those rights are and even less likely to exercise them for fear of jeopardizing their jobs and futures. That kind of contagion needs to be contained. It spreads rapidly in an uncertain world.

The Standing Senate Committee on Social Affairs, Science and Technology is studying this area of public policy. Last week, Tomoya Obokata, the UN Special Rapporteur on contemporary forms of slavery, presented testimony to the committee about his recent visit to Canada, expressing concern for “low-wage and agricultural streams of the Temporary Foreign Worker Program as the workers at the higher risk of labour exploitation, which may amount to forced labour or servitude.”

I appeared before the committee as well and presented some ideas for policy reform.

First: end the practice of tying work permits to an employer. An open work permit, tied to a region (for example, in parts of the country that are aging more rapidly) or in an industry or sector with high vacancies (such as hospitality or long-term care) would mean workers could leave terrible workplaces without risking deportation. This change could reduce the number of bad jobs and improve the quality of life in communities. Addressing potentially crippling labour shortages, while limiting the abuse of workers, seems a promising avenue of reform.

Second: create simpler pathways to permanent residency for all those who seek it and make those pathways clear before people arrive. Canada has developed an incredibly complex system, with more than 140 types of temporary permits in the immigration database, according to Rupa Banerjee of Toronto Metropolitan University.

In 2022, three times as many people were permitted temporary resident status versus permanent resident status in Canada. Less than a third of those who came here to work or study for a restricted period transitioned to permanent status, even after 10 years of temporary residency; but many more will grab at the chance, without knowing the odds.

There is a whole industry designed to lure international students and migrant workers here on what often turns out to be the false hope of permanent residency; and the relationship between temporary and permanent admissions to Canada is getting more lopsided every year.

Although Canada’s job creation rate has been remarkable, including for Canadian-born and landed immigrant workers, the fastest-growing rate of job creation has been among migrant workers: 61 per cent more jobs than pre-pandemic levels.

We are expediting the intake of migrant workers for entrenched needs, not temporary ones.

Increasing reliance on temporary foreign workers to do the work that needs doing, while not allowing them to form families, get sick, age or retire may be an employer’s dream and a labour market “solution.” But it risks creating a dystopian future for Canadian society.

Armine Yalnizyan is a leading voice in Canada’s economic scene and Atkinson Fellow on the Future of Workers. She is a freelance contributing columnist for the Star’s Business section. Follow her on Twitter: @ArmineYalnizyan. You can write to her at ayalnizyan@atkinsonfoundation.ca.