Federal government announces changes to TFW program, aims to help labour shortage in manufacturing

GATINEAU — On Apr. 4, the Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough, announced the Temporary Foreign Worker (TFW) Program Workforce Solutions Road Map. This initiative marks the next step in an ongoing effort to adjust and improve the Temporary Foreign Worker Program to ensure it continues to meet the labour market needs of today.

Five key policy changes will be implemented in the coming weeks as part of the TFW Program Workforce Solutions Road Map to respond to current labour and skills shortages.

Effective immediately:

• To address seasonal peaks, there will no longer be a limit to the number of low-wage positions that employers in seasonal industries, such as fish and seafood processing, can fill through the TFW Program. This makes permanent the Seasonal Cap Exemption that has been in place since 2015. In addition, the maximum duration of these positions will be increased from 180 days to 270 days per year.
• Labour Market Impact Assessments (LMIA’s) will be valid for 18 months, an increase from 9 months. (Prior to COVID-19, LMIA’s were valid for 6 months).
• The maximum duration of employment for High-Wage and Global Talent Streams workers will be extended from two years to three years. This extension will help workers access pathways to qualify for permanent residency, enabling them to contribute to the workforce for the long-term.

Effective April 30:

• For seven sectors with demonstrated labour shortages, such as Accommodation and Food Services, employers will be allowed to hire up to 30% of their workforce through the TFW Program for low-wage positions for one year. All other employers will be allowed to hire up to 20% of their workforce through the TFW Program for low-wage positions until further notice, an increase from the former 10% cap for many employers.
• The Government will end the current policy that automatically refuses LMIA applications for low-wage occupations in the Accommodation and Food Services and Retail Trade sectors in regions with an unemployment rate of 6% or higher.

In order to ensure that employers across the country can hire TFWs in a timely manner, Service Canada recently implemented a series of measures to increase capacity and expedite the processing of LMIA applications. This includes increasing staffing resources in all regions, including Quebec. Employers are also encouraged to submit their application online to reduce processing time. These changes will not affect the stringent checks undertaken through the process to keep workers safe and protect labour market conditions.

“As the needs of Canada’s workforce change, we are adjusting the Temporary Foreign Worker Program to meet them. Our Workforce Solutions Road Map builds on our progress so far to renew, modernize, and improve this program for employers and workers alike. We’ll continue to work with provinces, territories, and other partners to build the strong, skilled workforce Canada needs to support our growing economy.” said Minister Carla Qualtrough.