Canada Advised to Eliminate Closed Work Permits: Report

The Standing Senate Committee on Social Affairs, Science and Technology (SCSAST) recently published a report advising Immigration, Refugees and Citizenship Canada (IRCC) to discontinue the issuance of closed work permits.

The report delves into the structure and application of the Temporary Foreign Worker Program (TFWP), initially established in 1973 to aid Canadian employers in filling urgent job vacancies when no qualified Canadians or permanent residents were available or interested.

Originally conceived as a measure of last resort, the TFWP has since evolved into a pivotal component of Canada's labor market, a transformation scrutinized by standing committees like the SCSAST, which analyze and investigate issues impacting the country, presenting their findings to the government for deliberation and action.

Under the TFWP, employers seeking to hire foreign workers must first secure a positive or neutral Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC). This assessment ensures that hiring a foreign national will not adversely affect the Canadian economy or labor force. Employers must fulfill stringent criteria, including advertising the job for a specified period and demonstrating the absence of qualified Canadians or permanent residents.

Upon receiving a valid LMIA, employers may share it with prospective employees to support their application for a work permit from IRCC. These permits are employer-specific, restricting workers to a single employer during their stay in Canada. Deviating from this arrangement could jeopardize their legal status, although exceptions exist in cases of employer misconduct.

Criticism of the TFWP has centered on its perceived inadequacy in safeguarding both employers and employees. The SCSAST report highlights concerns that the program's reliance on employer-specific permits exposes foreign workers to potential exploitation and hinders their access to rights and protections. Similarly, the Cooper Institute's findings underscore employer frustrations with the program's rigidity, particularly in managing seasonal labor and fostering a supportive workplace environment.

In response to these challenges, the SCSAST report proposes phasing out closed work permits over the next three years. This move aims to enhance the security of temporary foreign workers by removing the constraints of employer dependency. The Cooper Institute advocates a similar approach, urging IRCC to grant permanent resident status to all migrant workers to mitigate disparities in rights and protections compared to Canadian workers.

Furthermore, the SCSAST recommends exploring sector or region-specific work permits as an alternative to the current TFWP framework. This adjustment could alleviate administrative burdens on employers while potentially offering greater flexibility and security to workers.

Addressing systemic issues, the report highlights deficiencies in inter-agency communication and the need for a unified approach to overseeing migrant worker affairs. It calls for the establishment of a Migrant Work Commission tasked with advocating for worker rights, facilitating consistent communication among stakeholders, and conducting comprehensive research on migrant worker experiences in Canada.

Beyond administrative reforms, the SCSAST report advocates for improved pre-arrival information for temporary foreign workers, more rigorous workplace inspections, and expansions to programs facilitating the transition of temporary workers to permanent residency, such as the Provincial Nominee Program.

In compliance with Senate protocols, the government is obliged to respond to the committee's recommendations within 150 days of receiving the report, either by taking action or providing a reasoned explanation for any inaction.

Overall, the SCSAST report urges a thorough reevaluation of Canada's approach to temporary foreign labor, emphasizing the need for reforms that prioritize worker well-being, streamline administrative processes, and align with broader national economic goals.