Are Foreign Workers Really Just Cheap Labour?
- Marcia Freese
- Nov 1
- 3 min read
One of the most persistent misconceptions about hiring foreign workers in Canada is that they represent a source of cheap labor. This myth not only undermines the value these workers bring to Canadian businesses but also misrepresents the legal requirements of the Temporary Foreign Worker (TFW) program.
Let me set the record straight.
The LMIA Wage Requirement: Fair Pay is Mandatory
When Canadian employers apply for a Labour Market Impact Assessment (LMIA), they must commit to paying foreign workers the prevailing wage for the position. This isn't a suggestion, it's a legal requirement enforced by Employment and Social Development Canada (ESDC).
For non-unionized positions, employers must offer the higher of:
The Job Bank median wage for that occupation in the specific economic region, OR
The wage range paid to current employees in the same job with comparable experience, education, and skills in that location (if higher than the Job Bank median)
The wage offered must meet or exceed the prevailing wage, not fall below it. The government carefully reviews wage offers by consulting Job Bank data for the economic region and comparing them against what the employer currently pays similar employees.
Key factors considered include:
The median wage for the occupation in your economic region (not just your city)
The experience level required for the role
The educational qualifications needed
What you're currently paying employees in comparable positions
Current market rates in your industry
Simply put, foreign workers must be paid fairly or at least as much as, if not more than, what the market and your current workforce dictate.
The TFW Program is Not a Loophole
The Temporary Foreign Worker program exists to help Canadian employers fill genuine labor shortages when qualified Canadian citizens and permanent residents are unavailable. It was never designed as a way to reduce labor costs or exploit vulnerable workers.
Unfortunately, some employers have abused the program by:
Offering wages below the prevailing wage
Imposing unfair working conditions
Failing to provide promised benefits
Misrepresenting job duties or requirements
These practices not only violate program rules but also damage Canada's reputation as a fair and welcoming destination for skilled workers. They can result in serious consequences, including program bans, financial penalties, and reputational harm to your business.
Why Fair Treatment Benefits Everyone
Paying foreign workers fairly and treating them with respect isn't just about compliance, it's good business practice. When you invest in your foreign workers properly, you benefit from:
Higher retention rates: Workers who feel valued stay longer
Increased productivity: Fair treatment leads to better performance
Positive workplace culture: Equity benefits all employees
Compliance confidence: You avoid costly violations and penalties
Enhanced reputation: Your business becomes known as a fair employer
Foreign workers bring valuable skills, diverse perspectives, and a strong work ethic to Canadian businesses. They deserve to be compensated appropriately for their contributions.
Navigate the TFW Program the Right Way
Hiring foreign workers involves complex regulations, strict documentation requirements, and ongoing compliance obligations. Working with a licensed foreign recruiter ensures you understand your responsibilities and meet all legal requirements from the start.
As a licensed foreign recruiter in both Nova Scotia and Prince Edward Island, I help employers navigate the LMIA process correctly, ensuring fair treatment of workers and full compliance with Canadian immigration law.
Ready to Hire Foreign Workers the Right Way?
If you're facing labor shortages and considering the Temporary Foreign Worker program, let's talk about how to do it properly—with fair wages, legal compliance, and respect for the workers who will help your business grow.
Contact Crossing Oceans Immigration Services today:
📧 Email: info@crossingoceansimmigration.com
🌐 Website: www.crossingoceansimmigration.com
Book a consultation and let's build a workforce solution that's fair, legal, and beneficial for everyone involved.
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