The Conservative government鈥檚 overhaul of the temporary foreign worker program got a thumbs-down from business associations Friday who say the changes will hurt the service industry.
Employment Minister Jason Kenney unveiled the program changes Friday, which include a cap on the number of low-wage temporary foreign workers at each worksite and strict penalties for employers who break the rules.
Under the new rules, employers in places with high unemployment rates won鈥檛 be allowed to hire temporary foreign workers in the lowest wage and skill groups in the accommodation, food service and retail sectors.
Companies will also be required to re-apply each year to hire low-wage TFWs, instead of every two years. The cost of that will rise to $1,000 per employee, up from $275.
In a statement, the Canadian Federation of Independent businesses called it 鈥渢he most small-business-unfriendly move ever made by this government."
Joyce Reynolds, Restaurant Canada鈥檚 vice-president of government affairs, said that although temporary foreign workers represent only two per cent of the restaurant industry, they are still a 鈥渃ritical鈥� part of the workforce.
She told CTV鈥檚 Power Play Friday that reforms will make the TFWP 鈥渃ost-prohibitive and inaccessible鈥� to most restaurants in areas of critical labour shortages.
Reynolds said the changes will lead to 鈥渃asualties鈥� in the restaurant business, such as job losses and reduced hours for everyone -- including Canadian workers.
For example, she said, if short-order cook positions -- often filled by temporary foreign workers -- are cut, that will have a domino effect on waiters, waitresses, hostesses and other restaurant staff.
At a news conference Friday, Kenney acknowledged there will be "adjustment costs.鈥�
"Yes, undoubtedly, there will be some businesses in that sector that end up paring back their operating hours," he said. "That we fully anticipate."
Syed Hussan of the Migrant Workers Alliance for Change, said the expiry limit on migrant workers will create a 鈥渞evolving door system鈥� and is 鈥渋nhumane.鈥�
He also said the changes don鈥檛 address abuse and exploitation of TFWs in the workplace.
Kenney defended the program鈥檚 makeover, saying it鈥檚 necessary to curb abuse of the system and give unemployed Canadians a first crack at the available jobs.
He told Power Play Friday that the government wants to return the TFWP to its original objective -- to be the 鈥渓ast, limited and temporary resort for employers who absolutely cannot find qualified Canadians to take jobs at the Canadian wage rate.鈥�
Kenney said some employers, 鈥減robably a few thousands in the Canadian economy, primarily out West, have begun building a business model around this program.
鈥淎s opposed to it being a last resort, in too many cases it鈥檚 become a first or only resort.鈥�
Kenney said the government is aware of 1,100 businesses where half of the workforce is made up of temporary foreign workers.
鈥淭hat is unacceptable,鈥� he said. 鈥淚 don鈥檛 care how tight the local labour market is, you shouldn鈥檛 be setting up a business and spending money on capital for business if you don鈥檛 have the human capital to staff it.鈥�
Kenney said the government is asking its bureaucrats and officials to 鈥渁pply some common sense鈥� when reviewing applications from businesses to hire TFWs.
He also said businesses should make more effort to hire Canadian employees by reaching out to groups with high levels of unemployment -- young people, aboriginals and new Canadians, among others.
With files from The Canadian Press
