27 August, 2014

Temporary foreign workers aren’t the problem; Employment Insurance is

When Employment Minister Jason Kenney announced changes to the Temporary Foreign Worker Program (TFWP), he said migrant workers should be the last resort for businesses when hiring. Not the first, second or even third option,but the last. Mr. Kenney further said employers that face a shortage of workers should do more to hire unemployed Canadians.

In response, some companies have denounced the minister's reforms as being anti-business and will be harmed because of a lack of available Canadian workers.

But both government and businesses are skirting the real problem.

Let's clarify straight away what the debate surrounding the Temporary Foreign WorkerProgram is really about. This isn't about Canada not having enough workers - not when 1.3 million citizens are unemployed. It is about Employment Insurance paying too many people not to work.

The EI system is a mess and the federal government has made only weak-kneed efforts to reform it. Until now it's been easier to import workers from Romania, Vietnam and the Philippines than wade into a messy debate.

EI advocates claim there are no work opportunities. But, of course, we know that is not true. There are still thousands of temporary foreign workers filling jobs people on EI won't do.

For starters, reform our Employment Insurance program. Maintaining the current EI system does nothing to solve the region's high unemployment, high taxes or loss of young people to jobs out west.

Secondly, pay more for low-skilled work. Paying foreign workers less only drags down Canadians' wages, resulting in fewer Canadians willing to work and fueling the need for additional cheap labour from abroad.

Finally, we need to improve our immigration system. Rather than source temporary workers who leave after their work term, let's reach out and support permanent immigrants who can stay and become an economic boost for Canada. Unemployed immigrants in urban centres also should be encouraged to move to regions with full-time jobs.

Canadian businesses know EI has perverted the labour market but haven't wanted to discuss it. They now have an economic incentive to do so. Instead of trying to save the Temporary Foreign Worker Program, businesses should offer solutions on how best to fix EI. That would nicely align their interests with the interests of Canadian workers.

www.nationalpost.com Kevin Lacey is Atlantic director of the Canadian Taxpayers' Federation.