Thank you, Mr. Chairman and members of the committee.
I would like to thank the committee for this opportunity to speak to you on the issue you are studying, that is, undocumented workers and the Temporary Foreign Worker Program.
My name is Andrew Kenyon and I am the Director General of the Temporary Foreign Workers Directorate in the Skills and Employment Branch of Human Resources and Social Development Canada.
Mr. Chairman, today I will be speaking to HRSDC's role in the temporary foreign worker program, which we co-deliver with Citizenship and Immigration Canada. I'll explain briefly how the program functions within the Canadian labour market and how HRSDC manages its portion of the program in order to balance employer needs with those of Canadian and foreign workers. I'll also speak to what generally foreign workers do here, to certain challenges we face in operating our portion of the program, and to some new initiatives that we're undertaking to address those challenges from the HRSDC perspective.
HRSDC's role in the temporary foreign worker program is to assess temporary job offers by Canadian employers to foreign workers against a set of criteria and to evaluate the potential labour market impact of those job offers. The HRSDC assessment is called a labour market opinion, and it's provided to the employer and to Citizenship and Immigration Canada. The labour market opinion is “positive”--meaning there's no adverse impact on the labour market--“neutral”, or “negative”.
The labour market opinion, or LMO, is developed based on the analysis of factors found in the Immigration and Refugee Protection Act regulations. For example, did the employer conduct reasonable efforts to hire or train Canadians for the job? Is the foreign worker filling a labour shortage? Are wages and working conditions comparable to those offered to Canadians working in the same occupation? And will the hiring of the foreign worker affect a labour dispute or the employment of any Canadian worker involved in a labour dispute?
The department issues labour market opinions to cover periods as short as two days or as long as three years for high-skilled workers. For low-skilled workers, for example, long-haul truck drivers, meat packers and general labourers in construction, changes were announced in February 2007 allowing the extension of the labour market opinion period from 12 up to 24 months, with wages being reviewed after 12 months.
Labour market opinions are required for approximately 50% of the work permits issued by Citizenship and Immigration Canada. The main exceptions are workers who come in under international agreements such as the North American Free Trade Agreement and intra-company transfers.
Mr. Chairman, to avoid potential misperceptions about the temporary foreign worker program, it's important to note two things. First, the program is driven by employer requests and there are no numerical limits or quotas. Second, HRSDC processed LMOs for over 163,000 workers in 2006. Despite this, temporary foreign workers represent less than 1% of the Canadian labour force.
To give you an idea of who the temporary foreign workers are in Canada today, the United States is Canada's top source country for temporary foreign workers, followed by Mexico, France, the United Kingdom, and Australia. About 45% of foreign workers entering Canada are in the managerial, professional, entertainment, and technical trade occupations. About 55% are in the lower-skilled occupations, and nearly half of these workers are seasonal agricultural workers who meet the temporary needs of Canadian agricultural producers during peak harvesting and planting periods, when normally there are shortages of Canadians.
I'll move on now to the challenges we face and some of the solutions we're initiating.
One of the biggest challenges we face is the steadily growing demand for labour market opinions in certain regions and sectors. This, combined with the Immigration and Refugee Protection Act requirements for case-by-case assessments, has resulted in backlogs and increased processing times, notably in Alberta and B.C.
Program changes have been announced to address the situation, including the creation of lists of regional occupations under pressure for B.C., Alberta, Ontario, and Quebec, and others as they are developed; ensuring employers will have shorter and simpler advertising requirements prior to hiring temporary foreign workers where shortages are clear and ongoing; the creation of online labour market opinion applications; concurrent processing of labour market opinions by HRSDC and work permits by Citizenship and Immigration; the creation of federal-provincial working groups in Ontario, B.C., Alberta, and Manitoba; and most recently, the expedited labour market opinion process, allowing eligible employers to receive labour market opinions in specified occupations in B.C. and Alberta much more quickly than under the regular LMO process.
In January of this year Minister Solberg announced the expansion of the E-LMO pilot project from the original 12 occupations to 33 occupations, representing 50% of the total volume of labour market opinion applications from employers in B.C. and Alberta.
These changes are taking effect and we expect to see the benefits, particularly with the addition of funding from Budget 2007. However, with the total number of TFW requests up 100% between 2000 and 2006, and with a 200% increase in Alberta and a 40% increase in BC in the first six months of 2007 as compared with the same period in 2006, the pressure is likely to continue to grow.
An additional challenge we face is to ensure a balance between the facilitative elements of the program and adequate worker protection. As I noted earlier, temporary foreign workers have the same protections as Canadian workers under federal and provincial laws. Provinces and territories have the primary responsibility for establishing and enforcing employment standards and occupational health and safety, such as wages and working conditions.
Nevertheless, we're working with Citizenship and Immigration Canada to improve information for foreign workers regarding their rights and recourse mechanisms. We are producing and releasing a pamphlet to foreign workers in a number of languages to advise them of their rights and the recourse mechanisms available to them.
As well, HRSDC is implementing improved information to employers about their responsibilities and the requirements of the program. We're also developing information-sharing agreements with the provinces to allow us to identify and share information where there have been violations of labour standards.
We still have a lot of work to do. What we're hearing is that we are moving in the right direction.
I'll conclude on that note.
Thank you, Mr. Chairman.