Median hourly wages of Canada’s temporary foreign workers see an increase

The Canadian government has decided to continue with its Temporary Foreign Worker Program (TFWP) stream in a bid to keep the economy going and to help Canadian employers during the Coronavirus pandemic.

It has decided to continue its TFWP program to support Canadian industries such as agriculture, agri-food, and food processing.

The TFWP is a program that allows Canadian businesses to face labor shortages to recruit foreign workers after making sure Canadian citizens and permanent residents were given the first opportunity to apply for such positions.

For individuals who come to Canada under the TFWP, a temporary work permit and a Labor Market Impact Assessment (LMIA) are required The LMIA shows that hiring a foreign worker will have a positive or neutral impact on the local labor market.

A LMIA is issued by Employment and Social Development Canada (ESDC). To help Canadian employees hire foreign workers during COVID-19, the ESDC has implemented the following measures:

• Employers do not need to make small administrative changes to the LMIA that will not affect the terms and conditions
• LMIA recruitment requirements in the agricultural and agri-food sectors shall be waived until 31 October 2020
• LMIAs for occupations in the agricultural and agri-food sectors will be given priority
• The maximum period of employment under LMIAs for employers of low-wage workers as part of a three-year pilot has increased from one to two years
• Employers applying under the Agricultural or Seasonal Agricultural Workers Program may submit a previously valid Report on Housing Inspection
• The process of a name change has been expedited for employers who need to put a different name on the LMIA due to certain reasons related to the pandemic

Increase in median wages

Another good news is that in most Canadian provinces and territories, median hourly incomes have increased.

Canadian employers hiring foreign employees use the provincial and territorial median hourly wage to know what the Temporary Foreign Worker Program (TFWP) requirements they must satisfy.

Applications must include wage information for the TFWs. This would separate the high-wage positions from low-wage positions and ensure that TFWs are paid the same amount as their Canadian counterparts.

The below table gives details of the new median hourly incomes that came into effect last month.

Canada has adjusted the median wage requirement to determine whether Canadian employers are required to apply for LMIAs within the high or low wage streams.