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June 14, 2012

Do temporary foreign workers steal jobs and depress wages?

Despite the Conservative government's new employment insurance rules that aim to fill vacant jobs with unemployed Canadians instead, the number of temporary foreign workers in Canada has never been higher.

Canadian companies hire thousands of foreign workers each year to fill jobs that locals simply won't or can't afford to do. But is that really a solution? 

"Employers will always be ready to find workers overseas who are eager to come to Canada and willing to work long hours for low pay. And under the Conservatives, boosting economic growth will always eclipse protecting workers’ rights," notes the Toronto Star.

"Since Prime Minister Stephen Harper assumed power in 2006, the number of foreign temporary workers admitted into Canada has grown by 40 per cent. The temporary worker stream is now larger than the stream of permanent workers intending to set down roots and become citizens," the Star maintains

And that labour tsunami could have a dramatic impact on wages for Canadians, particularly if you look beyond Ontario's agricultural sector. 

In the past, foreign workers had to be paid the average wage for that occupation in the region they were working in. Now, under revamped federal rules, they can now be offered up to 15% less, provided there are Canadians on the payroll who are working for the same rate.

Labour groups are unhappy with the changes, of course.

Employers are "are going to get a discount. They'll be able to bring foreign workers in and pay them less than what they would get if they were Canadian and living in this province, which is just a terrible decision and will drive wages down and keep them down," says the Alberta Federation of Labour's Nancy Furlong.

Do temporary foreign workers depress wages? Or are they simply willing to do jobs that native-born Canadians are not?

By Gordon Powers, MSN Money

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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...