Foreign businesses underscore the significant role of overseas employees
In the picturesque region of Estrie, manufacturing businesses are grappling with the consequences of recent changes to the Temporary Foreign Worker Program (TFWP). The new regulations, designed to address labour market concerns, are proving challenging for employers who rely on low-wage temporary foreign workers (TFWs) to meet their staffing needs.
Cord Electric, a factory based in Maricourt, is one such establishment. Over the past two to three years, the director has invested significantly in the factory, yet the need for labour remains unmet. The majority of foreign workers at Cord Electric primarily hold positions as assemblers or wire cutters. However, one employee has already had to leave due to the restrictions imposed on the TFWP in September, and several permits for foreign workers are set to expire in January 2026.
Lise Deziel, the CEO of Cord Electric, expresses concern over the raised low wage threshold in the TFWP, currently at $34.62 per hour. She fears that this will create upward pressure on all other salaries and put her in an unsustainable situation. If the rules don't change, six more employees will have to leave this fall, and another 50 will follow in 2026. The factory uses an external agent specialized in immigration to recruit foreign workers, but the process also requires internal resources. Recruitment in Maricourt is difficult, according to Deziel, due to a limited local population.
Similar challenges are faced by Cabico, a high-end custom cabinet maker in Coaticook. The company employs 75 foreign workers out of 310, representing 24% of its workforce. Annick Boulanger, Vice-President of Talent and Culture at Cabico, voices her disapproval of the new TFWP criteria, particularly regarding the low wage threshold, stating that they are not realistic.
Amecci, a Sherbrooke company that manufactures highly specialized abrasive products, is another employer grappling with the TFWP changes. Out of 24 employees, the company employs 7 temporary foreign workers. The integration of these employees at the Coaticook Dairy has been successful, in part thanks to the "welcome brigade" of the MRC de Coaticook. Two Moroccan employees at Amecci are responsible for operating a new machine purchased with the help of the Quebec Investment Boost program. The company has made efforts to attract foreign workers by purchasing two houses and offering training on life in Quebec.
Changes to the TFWP have introduced new hiring caps, wage threshold increases, and prevailing wage requirements that affect manufacturing businesses in Estrie. These changes have contributed to labour shortages and increased staffing challenges in sectors including manufacturing. Employers have reported critical staffing shortages, with reduced ability to fill shifts in manufacturing and other sectors where TFWs traditionally filled gaps. This scarcity disrupts operations and productivity, especially in rural or less densely populated regions like Estrie.
The government is exploring reforms that may allow TFWs greater job mobility within their field, which could mitigate some employer challenges in matching workers to needed roles. However, these are not yet implemented. Migrant worker groups argue the reforms do not address fundamental exploitation and power imbalances and call for more substantial changes, such as permanent residency on arrival for TFWs, suggesting current adjustments may not improve working conditions or labour market stability in the long term.
Overall, manufacturing businesses in Estrie face tighter restrictions on TFW hiring, higher labour costs, and operational challenges resulting from government-imposed caps and wage regulations under the updated TFWP, leading to tighter labour supply and increased pressure on business continuity.
[1] Government of Canada. (2024). Temporary Foreign Worker Program: Changes for 2024. Retrieved from https://www.canada.ca/en/employment-social-development/services/foreign-workers.html [2] Migrant Workers Alliance for Change. (2024). Temporary Foreign Worker Program Reforms Fall Short. Retrieved from https://migrantworkersalliance.org/tfw-reforms-fall-short/ [3] Canadian Manufacturers & Exporters. (2024). Temporary Foreign Worker Program Changes Impacting Manufacturing Sector. Retrieved from https://www.cme-mcc.ca/en/news/temporary-foreign-worker-program-changes-impacting-manufacturing-sector [4] Government of Canada. (2024). Temporary Foreign Worker Program: Job Mobility Reforms. Retrieved from https://www.canada.ca/en/employment-social-development/services/foreign-workers/job-mobility.html
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