04) EMPLOYERS USING TFW PROGRAM TO CUT WAGES

            Wages are being undermined by employers who use the Temporary Foreign Worker (TFW) program to avoid paying more than minimum wage, warns the Alberta Federation of Labour.

            A list obtained by the AFL shows that 243 employers in Alberta are accessing the Temporary Foreign Worker program rather than paying employees more than the province's minimum wage, which was raised by 20 cents to $9.95/hour on Sept. 1.

            "If employers were really using the TFW program as a last resort, rather than a first choice, they wouldn't be paying these workers the minimum wage," Alberta Federation of Labour president Gil McGowan said. "They can't say they've actually tried to hire Canadians if they're not offering more than minimum wage."

            Of the 243 employers, the majority (58 per cent) are in the food service industry. The list includes Boston Pizza locations, Ricky's All‑Day Grills and a variety of sushi restaurants and pubs. Most of these approved Labour Market Opinions (LMOs) will permit the employer to hire multiple Temporary Foreign Workers.

            "This list shows that the TFW program is being used to suppress wages and displace Canadian workers. Anyone claiming that there's a labour shortage is either deliberately lying, or deeply misinformed," McGowan said. "If there's a labour shortage, wages are supposed to be going up to attract workers to fill the vacancies."

            Under the Temporary Foreign Worker program, employers applying to bring in workers must commit to paying the prevailing wages for the type of worker they are hiring. By paying the TFWs minimum wage, these employers are admitting that paying bottom dollar is their standard practice.

            "It's an irony that the Harper Government claims to be a big defender of the free market, but it's clear that they're using the TFW program to undermine the Canadian labour market," McGowan said. "The Federal Conservatives are deliberately using their power to help service‑sector employers keep wages low when economic conditions suggest they should be going up."

            The documents released by the AFL help explain why more teenagers and recently arrived landed immigrants are having a hard time getting entry‑level jobs. According to Statistics Canada, the unemployment rate for youths aged 15‑24 in Alberta was more than 11 per cent in May.

            "For young people, low‑wage jobs in the service sector have traditionally been the entry point into the labour market," McGowan said. "But now those bottom rungs on the ladder are increasingly being filled with exploitable TFWs."

Working 35 hours a week, 52 weeks a year, someone earning Alberta's minimum wage of $9.95 an hour will earn $18,109 a year before taxes. According to Statistics Canada, the Low‑Income Cut‑Off for a single wage earner with no dependents is $23,298. The AFL has called for a minimum wage that would allow those working full‑time to earn that amount, which works out to $14.05/hour without benefits, or $12.08 with benefits.

(The above article is from the September 16-30, 2013, issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $30/year, or $15 low income rate; for U.S. readers - $45 US per year; other overseas readers - $45 US or $50 CDN per year. Send to People's Voice, c/o PV Business Manager, 706 Clark Drive, Vancouver, BC, V5L 3J1.)