The federal government announced Monday the implementation of new measures regarding the hiring of temporary foreign workers (TEF). According to the Johannine company Tremcar and the Haut-Richelieu Chamber of Commerce and Industry (CCIHR), these rules are threatening for the local economy and will have major impacts.
As of November 8, the median hourly wage will increase by 20% in the country, or $5.49. To qualify an employee as well paid, employers will therefore be required to increase the median salary of their workers from $27.47 to $32.96 per hour.
Faced with this situation, the manufacturer Tremcar is worried about losing 27 of its specialized workers and welders, currently paid between $22 and $31.04 per hour. “We simply cannot afford such an increase. The current salary of these employees is much higher, considering the marginal benefits to which we pay large sums of money, such as our contribution to their pension fund, overtime and insurance,” underlines Maude Poudrier, director of human resources. of the company.
Limit
In some sectors, the current limit of 20% on the number of TFWs in low-wage positions will be reduced to 10% of workers. The maximum duration of employment for these positions will also be reduced from 2 years to 1 year. “Welcoming a foreign worker into a company requires more time and resources for their integration, updating their skills, training for the task and learning the language. The industry will find itself investing time and money for a foreign worker who will have to leave before it can fully benefit from it,” says Michel Milot, president and CEO of the CCIHR.
According to Tremcar, each hiring of this type of worker represents an investment of approximately $75,000 for the company. Currently 41 of its 392 employees, or more than 10% of its workforce, are foreign workers.
These are not the only measures faced by businesses requiring TFWs. In September, the government had already added measures radically affecting hiring procedures in certain regions of Quebec, including Haut-Richelieu. “Among other things, we are blocked with regard to the procedures for TFWs to obtain or renew a visa,” says Ms. Poudrier.
Shortage
These federal government measures aim to prioritize the hiring of Canadian workers. However, market reality shows that the positions concerned cannot be filled by local workers due to a labor shortage.
“The new measures will not encourage the hiring of Canadian workers, already hampered by the shortage of housing and the lack of accessibility to the region by public transport. However, they will create enormous pressure on local businesses that rely on these foreign workers to maintain their operations,” adds Mr. Milot.
Tremcar has notably faced a shortage of specialized labor since 2015. The team says it is making numerous efforts to remedy this, including the creation of an in-factory school and its investments in automation.
“That’s not enough. In Quebec, we are observing a gradual decline in manual skills such as dexterity, the use of tools and the ability to measure, calculate and clearly understand plans. Even with international recruitment, we still lack workers,” emphasizes Maude Poudrier.
Impacts
Both organizations believe that these measures will have considerable impacts on the local economy. “For us, this is a major obstacle to our production capacity and will weaken our competitiveness against major players in North America. If it remains this way, we will likely need to consider investing more in our U.S. facilities to remain competitive. Our main competitors have factories in the United States and Mexico, where labor is more affordable,” says Ms. Poudrier.
“We would like the measures to be reviewed to see if it is possible to make exceptions for certain professions,” continues the latter.
