TFW_From Last Resort to First Choice_2013Apr25

7/27/2019 TFW_From Last Resort to First Choice_2013Apr25

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AlbertaFederation

of Labour

From Last Resort

to First Choice:

www.afl.org 10654 - 101 Street, Edmonton AB T5H 2S1 Telephone 1-800-661-3995

How the Temporary Foreign WorkerProgram is flooding the market, not filling a need


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In 2010, Alberta's economy lost 8,600 jobs. Atthe same time, Alberta brought in 22,992Temporary Foreign Workers.


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Introduction

Over the past four years, Albertahas brought in thousands moreTemporary Foreign Workers than

jobs created.

This report the latest in aseries by the Alberta Federationof Labour on the TemporaryForeign Worker program showsthere is no need for the TFW

program. Thousands of Albertans are out of work orinvoluntarily working part-time.

The evidence is stark: Albertaemployers are bringing in moreTFWs than are needed to fill thenew jobs the economy is creating.This report shows what we haveknown for some time: while thereare shortages in select fewtrades or skills, there is noeconomy-wide labour shortage in

Alberta. There is a shortage of

people willing to work for less,and that is why Alberta continuesto bring in thousands ofTemporary Foreign Workersevery year, even when theeconomy sheds jobs.

During the recession, Alberta lost tens of thousands of jobs. Yet, webrought in tens of thousands of Temporary Foreign Workers.In 2011, the economy recovered and began creating jobs. But there wasa Temporary Foreign Worker present in Alberta for three of every four jobs created.

There are thousands of Temporary Foreign Workers

in Alberta - more than there are new jobs.


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About the Temporary ForeignWorker Program

Prior to 2004, only a selectnumber of employers used theTFW program. It was alittle-used stream of theimmigration system that broughtin some seasonal workers,academics, and specializedtrades or professions for shortperiods of time.

The oil sands boom meantwages had to keep pace with aneconomy that was lurchingahead without a plan for labouror skills shortages andemployers wanted a way tocontain labour costs.

This is not to say labour costswere the biggest driver of oilsands cost inflation. Theywerent. A recent study showedlabour costs were responsible foronly 24 per cent of cost inflationduring the 2004-08 oil sandsboom. Most of the reason oilsands projects went wildly over

budget (90 to 300 per cent overbudget) was cost of materialsand machinery.

The rapid pace of developmentwas responsible for costescalation, not workers.

There has never been anyconcrete evidence presentedby anyone without a vestedinterest in keeping wages low that labour shortages wereanything more than a fewspecialized trades andprofessions with shortages overshort periods of time.

But in a time of economic growth,wages must go up.

The only way to defy the laws ofeconomic gravity is to flood thelabour market with a supply ofworkers who are unlikely todemand higher wages, betterstandards, pensions, or benefits.

The TFW Program in Alberta exploded during the 2004-2008 oilsands boom.


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Some small Alberta cities farebetter than others in terms of jobcreation and Temporary ForeignWorkers.

Outside Edmonton and Calgary,there were 24,000 TemporaryForeign Workers present in 2011.But the economy in Alberta'ssmaller centres only created19,000 jobs. Meanwhile, therewere 38,000 unemployed

Albertans living outsideEdmonton and Calgary.

For example, in Wood Buffalo,where many TFWs are beinghired by oil sands constructioncompanies, a Temporary ForeignWorker was present for six of

every 10 jobs created in 2011. Thefederal government approved aTFW work permit for 9.9 of every10 jobs created in Wood Buffaloin 2011. Clearly, labour marketconditions are not dictating TFWpolicy.

Outside booming oil sandsregions, the situation can be farmore stark. Consider MedicineHat, where the economy hasshed more than 10,000 jobs since2008. The federal governmenthas issued more than 2,000 workpermits for TFWs. Every year, thecity of Medicine Hat is losing jobs,but hundreds more TemporaryForeign Workers arrive.

Small City Problems

During the recession, 18,500 jobs were lost inAlberta's smaller urban centres. But 13,480Temporary Foreign Workers arrived.


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Calgary has a reputation as a place where jobs are plentiful.

But the city is home to some of the most compelling evidencethat the Temporary Foreign Worker program is a first choice, nota last resort, for employers. Consider these statistics:

Big City ProblemsA snapshot of Calgary

In 2010, 13,300 jobs were lost in Albertaslarger urban centres. But 12,965 TemporaryForeign Workers were brought in.

More than one in six (18 per cent)of new jobs created in Calgarybetween 2008-2011 went to aTemporary Foreign Worker.

In any given year between2008-2011, there was a LabourMarket Opinion issued for themajority of new jobs created inCalgary.


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hat all thisMeans:

e TFW Programlows Employers tofy the Laws ofonomic Gravity.

erta is allowingmpanies to defy thes of economic gravity.

en employers get easyess to vulnerableups of lower-paid

mporary workers, wagesbenefits dont have to

p pace with economicwth.

provincial and federalernments are allowing

ployers to domething they wouldnterwise be able to do.

nservative governmentsk a big game about free

rkets. But ther-expandingmporary Foreign Workergram lets them meddlehe market on behalf ofe employers.

EverybodyKnows It, B

Few areWilling toAdmit It:The TFW Program is a Subsidy to Big Business.

Frequent users of the programare big businesses, notmom-and-pop operations.They are constructioncompanies, food service

companies, and lowemployers like cleancompanies. Increasiare oil sands operatomining companies.

Even a right-wing Fraser Institute economist a

The TFW program is effectively abusiness subsidy that lets frequentusers avoid increasing wages to attractworkers, invest in training, or automateproduction to boost productivity.

The Accelerated Temporary Foreign WorkerProgram: A 15 per cent Gift to Big Business FroPrime Minister Harper

The Temporary Foreign Workerprogram is expanding. Despitethe weakening economy, theHarper government recently

mean companies gettemporary worker pfaster, they dont havthere are no Canadia

1


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Immigration, not exploitation

Lets be clear: the problem is the TFW program,

not the workers themselves!

The Way Forward:

Canadas immigration systemmust be overhauled. We mustexpand the system to make itaccessible to lower-skilledimmigrants. We must ensuresettlement services are availableacross the country, and that theyare relevant to everyones needs.We must make sure the TFWprogram does not eclipse thenumber of permanent residents

we accept every year. And wemust make good on ourinternational commitments andhonour the refugees who cometo our country to build a betterlife.

Canada is at its best when we welcome immigrants of allbackgrounds, when westrengthen our diversity, and

when we uphold our internationalreputation by providingimmigrants with job training,settlement services, andopportunities to build a good lifefor themselves and their children.

We need more immigrants. Wedont need a failed guest workerprogram that entrenchesexploitation, racism, and poverty.

The Temporary Foreign Worker program is not immigration, it isexploitation, and ought to be scrapped.


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A lose-lose-lose for Canadians

Wages, Training, andImmigration:

The TFW program is lose-losefor Canadian workers. It puts

downward pressure on wages when they should be going up.

We also lose a whole generationof trained workers. The TFWprogram relieves big businessfrom their responsibility to investin training. It puts the onus ongovernment, which has walkedaway from its responsibility for

workforce training. In Alberta

alone, weve gutted trainingbudgets. In the meantime, theeconomy is not adding jobs, wehave thousands of involuntarypart-time workers, and a skillsgap. The answer is forgovernments both to invest intraining and to put pressure on

the private sector to do thesame.

Finally, Canadians lose in a moreimportant way: we lose ageneration of potentialimmigrants. The TFW programrobs people of the chance tobecome citizens. Low-skilledTemporary Foreign Workers donot have the chance to becomecitizens at all.

For the good of a strong, vibrant,diverse society and a sustainableeconomy, Canada needsimmigrants. The TemporaryForeign Worker program shouldbe abolished and replaced by acomprehensive system ofimmigration and reform.


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Stop-Gap Measures inthe Meantime:Provincial Nominee Programs

The TFW program ought to be scrapped. In the meantime, here iswhat we can do in Alberta - today:

Expand the Provincial NomineeProgram.

Protect Temporary ForeignWorkers with Stronger ProvincialLegislation like they do inManitoba.

Invest in regional supports forTFWs.

Make the provincial TFW Advocate office a relevant,proactive, reliable source of helpfor Albertas Temporary ForeignWorkers.

There are better ways to handlethe TFW program. Manitoba, forexample, has led the countrywith respect to protections forworkers, provincial nomineeimmigration programs servinglow-skilled workers, and stampingout illegal, shady employmentagencies, brokers, andrecruitment consultants whoprey on vulnerable temporaryworkers. Alberta has yet toimplement these changes; theyare overdue.


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About the AFL TemporaryForeign Worker CampaignSince 2005, the Alberta Federation of Labour has been leadingthe national conversation on Temporary Foreign Workers.

We have advocated, researched,and consulted widely on thetopic. For several years, the AFLhad a Temporary Foreign Worker

Advocate on staff. Our effortshave led to two research reportsand a wide-ranging consultationand series of recommendations.

Since the AFL began ourcampaign on behalf of betterconditions for Temporary ForeignWorkers, our position hasremained consistent. We are notopposed to immigration: westrongly believe the Canadian

economy is stronger and moresustainable with expanded andimproved immigration, includingfor lower-skilled workers. Webelieve the TFW programweakens Canadas reputation asa nation of immigrants, with all ofthe strengths that diversity andcommitment to human rights,that reputation brings. We alsobelieve the TFW program isbroken, and the only solution is toscrap it and replace it withcomprehensive reforms in theareas of workforce skills, training,and immigration strategies.


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MethodsJob creation numbers werecalculated from StatisticsCanada, all employment, brokendown by census region(Edmonton, Calgary, GrandePrairie, Lethbridge, Medicine Hat,Red Deer, Wood Buffalo, andOther Alberta).

Number of Temporary ForeignWorkers TFWs Present andNew Arrivals, were taken fromthe federal governmentsCitizenship and ImmigrationCanada statistics. Regionalbreakdowns were provided byCIC.

Number of Labour MarketOpinions issued was taken fromthe federal governments HumanResources Services andDevelopment Canada statisticspage. Regional breakdowns wereprovided by HRSDC.

The number of LMOs issued maynot precisely match the numberof TFWs for a number of

reasons. LMOs may apply formore than one geographic areaor an LMO may be granted butno Temporary Foreign Workermay arrive for the position.

An LMO is a work permit for aTemporary Foreign Worker. LMOsrepresent the federalgovernments assessment of thelabour market in that particularfield.

Thousands of work permits forTemporary Foreign Workers arealso issued for very small ruralcentres and towns in Alberta.This suggests the labour marketis even further distorted in ruralareas. This at least partiallyexplains why it is increasinglydifficult for rural districts,counties, and municipalities tobuild a property tax base, fundinfrastructure, keep money andsmall business in their towns, andfor families to stay on familyfarms if off-farm jobs are scarce.


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On average between 2008-2011 Alberta had 2.3

TFWs for every new job created.


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A Province-WideSnapshot of Job

Creation,TemporaryForeignWorkers, andUnemployment.

Alberta brought in asmany TFWs as jobs werelost: more than 28,000.

Alberta had twice as manyTFWs as jobs were lost.

32,230 permits issued;28,545 jobs lost.

All of Alberta:

Economy lost 8,600 jobs; AB brought in 22,992

TFWs.

In the midst of recession, AB has as many TFWspresent as during theboom.


The worst of therecession:

2009

2010

Number of Albertans reporting unemployment(still in labour force):

142,100

77,000

140,700

121,000

2009

2008

2010

2011

Labour Market Opinions Issued by HarperGovernment:

32,230

74,200

43,775

50,840

2009

2008

2010

2011

Temporary Foreign Workers Present:

65,606

57,556

57,675

58,249

2009

2008

2010

2011

New Temporary Foreign Workers Arriving:

28,545

38,994

22,992

25,542

2009

2008

2010

2011

Net New Jobs Created in Alberta:

-28,500

62,400

-8,600

77,500

2009

2008

2010

2011


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A Snapshot ofNew Job Creation,

TemporaryForeign Workers,andUnemployment inEdmonton andCalgary.

15,065 new TFWs arrive;10,000 jobs lost.

35,898 TFWs present;10,000 jobs lost.


Big-City Alberta

12,965 new TFWs arrive;

13,300 jobs lost.

32,893 TFWs present;13,300 jobs lost.



2009

2010

Number reporting unemployment (still in labour force):

96,600

50,900

97,100

83,000

2009

2008

2010

2011


19,845

49,195

25,740

29,210

2009

2008

2010

2011


35,898

30,622

32,893

34,177

2009

2008

2010

2011


15,065

19,787

12,965

14,171

2009

2008

2010

2011

Net New Jobs Created:

-10,000

54,600

-13,300

58,300

2009

2008

2010

2011


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A Snapshot ofJob Creation,

TemporaryForeignWorkers, andUnemploymentin Small-Town,

Rural, andSmall-CityAlberta.

18,500 jobs lost; 13,480new TFWs arrive.

18,500 jobs lost; 29,708TFWs present.

18,500 jobs lost; 12,385permits issued.

Small-Town, Rural,and Small-City Alberta:

213 per cent more TFWarrive than jobs gained.

527 per cent more TFWpresent than new jobs created.

384 per cent more permitsissued than new jobs created.


2009

2010

Number reporting unemployment (still in labour force):

46,000

26,000

44,000

38,000

2009

2008

2010

2011


12,385

25,005

18,035

21,630

2009

2008

2010

2011


29,708

26,934

24,782

24,072

2009

2008

2010

2011


13,480

19,207

10,027

11,371

2009

2008

2010

2011

Net New Jobs Created:

-18,500

7,800

4,700

19,200

2009

2008

2010

2011


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TFWs are restricted to living and working in Alberta for just a fewyears, so long-term wage andbenefit improvements eludethem. This keeps standards downfor all low-wage workers. Formunicipalities, stagnant wages atthe lowest end of the job marketmeans an erosion of the taxbase, fewer homeowners, andless stability for local smallbusiness.

Temporary Foreign Workerscannot put down roots in ourcommunities. While most wouldlike to live in Canada aspermanent residents, theirtemporary status means theyare likely to send most of their

earnings back to their country oforigin. Because they are notallowed to stay in Alberta, theyare not going to be buyingfurniture for newly-purchasedhomes or having their carsserviced at the local mechanicsshop. They are not investing theirmoney in their local credit union,or taking out a loan for a newvehicle. They do not havedisposable income to spend atthe local caf or sporting goodsshop.

Labour Markets and

Albertas Regions:

Tens of thousands of Temporary Foreign

Workers now live and work in every corner

of Alberta.

Why Temporary Foreign Workers Matter to

Municipalities


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Because Temporary Foreign Workers are flooding the labourmarket, small regional centres are missing out on economic and

social development.Just imagine if Temporary Foreign Workers were coming to

Alberta not just to work but to put down roots and help buildour communities.

Our social, economic, and cultural fabric would be much stronger for it.

Their presence here means a source of cheap

labour that does not put down roots in the

community.

And yet, Temporary ForeignWorkers require services. Fromhealth care to municipalinfrastructure, TFWs are a partof our community. This leads to asituation where especially insmall cities municipalities aremissing out on the benefits ofnew immigrants, while stillguaranteeing services.Municipalities should therefore bedeeply be concerned about thegrowth of the TFW program atthe expense of permanentimmigration.

Lowering wages, thousands oftemporary residents, a loss ofproperty tax revenue, a loss ofinvestment in community

business. These are just some ofthe reasons why the explosion ofthe Temporary Foreign Workerprogram in Albertas regionalcentres is key to understanding

why the program is broken andcan only be fixed by scrapping itand replacing it with a system ofpermanent immigration.


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Calgary:Calgary has a reputationas a city where jobs areplentiful.But the untold story is that

much of the new jobgrowth is overshadowedby the arrival of thousandsof Temporary ForeignWorkers every year.

During the recession,Calgary lost 5,000 jobsbut saw the arrival of8,888 new TemporaryForeign Workers.

The Harper governmentapproved 9,155 workpermits for TemporaryForeign Workers while50,900 Calgarians wereunemployed.

Even when Calgaryseconomy recovered, therewere 20,700 jobs created

in 2011, and 18,968Temporary ForeignWorkers present.

The number of Calgariansworking for $13/hour orless has not changed since2009. In 2009, 92,000Calgarians worked for lowwages, or 15 per cent ofthe workforce. In 2011,94,000 Calgarians workedfor $13/hour or less still15 per cent of theworkforce. In times ofeconomic recovery andunder normal economiccircumstances, thenumber of people workingfor low wages should bedropping as wages go up.

200911,523

28,000

17,693

24,180

16,200

New Jobs

New TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

2010

8,888

-5,000

20,176

9,155

50,900

New Jobs

New TWFs Arriving

TWFs PresentLMOs Issued

Number Unemployed

0

44,600

2012

8,670

20,700

18,968

12,490

New Jobs

New TWFs Arriving


Number Unemployed

0

2011

7,9608,800

18,455

11,525

51,300

New JobsNew TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

*Min-Value: -5,000*Max-Value: 51,300


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Edmonton: Edmonton had two yearsof negative job growthduring the recession losing 4,500 jobs in 2009and 5,000 jobs in 2010.

Yet, large Edmontonemployers brought in6,100 new TemporaryForeign Workers in 2009and 5,005 new TFWs in2010.

When the economyrecovered and added37,600 new jobs to the

Edmonton economy in2011, there was aTemporary Foreign Workerpresent for 40 per cent ofthose jobs. Meanwhile38,400 Edmontonianswere unemployed.

The number ofEdmontonians working forlow wages - $13/hour or

less dropped by only twopercentage points since2009. Wages at thelowest end of theeconomy, in other words,have remained relativelystagnant.

20098,264

26,600

12,929

25,015

24,700

New Jobs

New TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

2010

6,177

-5,000

15,722

10,690

45,700

New Jobs

New TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

38,400

2012

5,501

37,600

15,209

16,720

New Jobs

New TWFs ArrivingTWFs Present

LMOs Issued

Number Unemployed

0

2011

5,005-4,500

14,439

14,215

45,800


TWFs Present

LMOs Issued

Number Unemployed

0



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Red Deer:Red Deers economyremained relativelyimmune to the wild swingsin job losses through therecession. Red Deer is also

home to fewer TFWs as apercentage of the overallworkforce than other smallcities.

That has not stopped theHarper Government fromissuing work permits forbig businesses who wantto bring in TFWs.

It appears the federalgovernment is handing outLMOs like candy atHalloween, but businessesare not using them.

In 2011, the Red Deereconomy created 2,600

jobs. And while there wasa TFW present for 36 percent of those jobs, there

were permits issued for 47per cent of the new jobgrowth.

2009438

-600

912

1,855

2,400

New Jobs

New TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

2010

364

2,300

1,160

790

4,900

New Jobs

New TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

3,700

2012

264

2,600

936

1,215

New Jobs


LMOs Issued

Number Unemployed

0

2011

275600

987

950

4,300


TWFs Present

LMOs Issued

Number Unemployed

0

*Min-Value: -600*Max-Value: 4,900


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124

-2,800

503

515

4,100

Arriving

ent

d

nemployed

0

152

0

432

1,320

1,900

Arriving

ent

d

nemployed

0

ande Prairie: Grande Prairie lost 2,8 jobs during the recessiand did not add all thos jobs back to the economuntil 2011.

The number ofTemporary ForeignWorkers continued togrow, however. There wa TFW present for 19 pcent of new jobs createin 2011.

As in other small citiesthe Harper governmenthanding out work permfor TFWs with wildabandon. In 2011, therwas a TFW work permissued for 34 per cent onew jobs created. In otwords, employers arechoosing not to use the

TFW work permits,though the federalgovernment isenthusiasticallyencouraging the use ofTFW labour.

Meanwhile, 3,000 peopin Grande Prairie wereunemployed in 2011, eas the economyrecovered, and 16,600residents 16 per centthe workforce workefor $13/hour or less.

3,000

131

3,200

617

1,090

Arriving

ent

dnemployed

0

100

1,300

522

700

2,800

Arriving

ent

d

nemployed

0


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Wood Buffalo:Wood Buffalo is home to ahigh percentage of TFWsas a portion of itsworkforce. The workforceis approximately the same

size as that of Red Deer orLethbridge, but WoodBuffalo is home to twicethe number of TFWs asthose cities.

Still, there could be more.Incredibly, the Harpergovernment issued a TFWwork permit for 99 percent of the new jobs

created in Wood Buffalo in2011.

Meanwhile, 2,800 peoplewere unemployed in WoodBuffalo.

Wages at the low end,despite the high cost ofliving in Wood Buffalo, havenot increased for a large

number of workers. Thenumber of people earning$13/hour or less in thatregion has remainedconstant for four years. In2009, 8,200 peopleearned $13/hour or less, or13 per cent of theworkforce.

In 2011, it remains 7,800, or

11 per cent of theworkforce.

20091,003

1,800

1,276

3,025

N/A

New Jobs

New TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

2010

618

1,400

1,452

1,060

2,300

New Jobs

New TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

2,800

2012

886

3,000

1,823

2,990

New Jobs

New TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

2011

5973,300

1,489

2,040

2,300


TWFs Present

LMOs Issued

Number Unemployed

0

*Min-Value: 0*Max-Value: 3,300


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Lethbridge: Lethbridge has dropped5,600 jobs since 2008,but the number ofTemporary ForeignWorkers in the city has

increased by 68 percent.

Meanwhile, 3,100 peoplewere unemployed in 2011.

A high number of peopleearn less than $13/hour,and that number hasgone up since 2009.

In 2011, 7,700 ofLethbridge workers wereat the lowest end of thepay scale, and in 2009,6,700 people earned thiswage. In other words, thelow-wage economy isgrowing in Lethbridgedespite the recoveryfrom recession.

2009381

10,800

593

1,125

2,200

New Jobs

New TWFs Arriving


Number Unemployed

0

2010

371

-5,800

814

775

3,000

New Jobs

New TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

3,100

2012

354

2,400

868

1,100

New Jobs


LMOs Issued

Number Unemployed

0

2011

310-2,200

845

1,015

4,300


TWFs Present

LMOs Issued

Number Unemployed

0



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Medicine Hat:Of all the small cities in thisreport, Medicine Hat is themost shocking example ofnegative job growth.

The community has lostmore than 10,000 jobssince 2008.

Still, there were 517 TFWspresent in 2011 and theHarper government issuedmore than 1,000 TFW workpermits in Medicine Hat,with apparently no regardfor the actual state of the

economy and job creation.

2009219

-3,600

321

730

N/A

New Jobs

New TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

2010

275

-4,300

466

560

2,000

New Jobs

New TWFs Arriving

TWFs Present

LMOs Issued

Number Unemployed

0

2,000

2012

255

-6,000

517

1,030

New Jobs


LMOs Issued

Number Unemployed

0

2011

215100

435

620

2,300


TWFs Present

LMOs Issued

Number Unemployed

0



27/30

Total Labour Market Opinions Issued:

Labour Market Opinions for Unskilled Work(Labourers, Retail, Food Service, Hospitality):

Alberta General Unemployment Rate:

Alberta Youth Unemployment Rate (age 15-24):

In 2011, 35 per cent ofLabour Market Opinionsissued in Alberta were forunskilled work peopleworking in the retail,

hospitality, and foodservice sectors.

While the Harpergovernment approved17,915 work permits forunskilled work in 2011,youth unemploymentremains stubbornly high in Alberta, at 38,200individuals under the age

of 24.Youth unemployment in2011 was higher than itwas in 2009, during thedepths of the recession.

Meanwhile, the number ofworkers in Alberta aged20 to 24 remainseffectively unchanged(200,500 workers in2009; 200,600 in 2011).But the number of youngpeople earning less than$13/hour has actuallyincreased. In 2009,54,200 young Albertansearned $13/hour or less,in 2011, it was 54,800.

Low wages and highunemployment are agrowing phenomenon foryoung people in Alberta.

Labour MarketOpinions and YouthUnemployment inAlberta

2008 2009 2010 2011

74,200

32,230 43,77550,840

2008 2009 2010 2011

30,94510,975 13,980 17,915

2008 2009 2010 2011

77,000

2008 2009 2010 2011

26,900 28,90041,200 38,200

142,100 140,700121,000


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Alberta has a shortage of training and apprenticeship,not workers

Conclusion:

1.

2.

3.

Wage suppression lobbyists(Canadian Federation ofIndependent Business, MeritContractors, and other front groupsfor Big Business) and theirconservative friends in governmentlike to pump up a labour shortagebecause it provides a convenientpolitical cover for expanding theTemporary Foreign Worker program.The real motivation behind the TFWprogram is not a labour shortage,but a desire to drive down wages byflooding the labour market withlower-skilled workers.

Alberta does not have aneconomy-wide labour shortage

Most of us have heard the alarmistclaims coming from corporate

Canada: Alberta is set to be shorthundreds of thousands of workers inthe coming decade.

Those figures are based on abizarre calculation never previously

Albertas bogus labour shortagenumbers

used in Alberta and not usedanywhere else in Canada.

Internal Government of Albertadocuments show Alberta has moreworkers than jobs and labourmarket trend predictions clearlyshow Alberta will have a laboursurplus for the foreseeable future.

The problem is that Albertacontinues to fail in matching trainingwith the labour market.

Apprenticeship and training Alberta has a very poor record ofinvestment in training andapprenticeship. Our province lagsbehind most others in Canada andcertainly behind the rest of theindustrialized world in its approachto worker training and

apprenticeship. Alberta has a tight labour market forsome select trades, but they arevery select shortages and tend tobe short-lived.

2

3


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4. 5.

6.

The Temporary Foreign WorkerProgram allows employers to bringin temporary workers who arealready trained instead ofinvesting in training here in Alberta.Our system lets Big Business off thehook: in any other industrializedcountry, industry is required toinvest in training and apprenticeship.But in Alberta, our governmentscozy relationship with employersmeans we have a broken trainingsystem. Employers are not pullingtheir weight, and the result is a skillsmismatch throughout the economy.

Albertas Dismal Training

Record

Training budgets in Alberta havebeen slasked by $22 million since2009, and apprenticeships took a$1.6 million cut since 2009 despitethe recession, when it makes senseto invest in training.

Slashing Training Budgets

Employers Not Pulling Their

Weight

In Canada, only 50 per cent ofcompanies who hire tradespeopleparticipate in apprenticeshipprograms. Industries who rely onskilled labour should be required toinvest in it.

Getting Serious About Trainingand Apprenticeship:

Restore budgets to training andapprenticeship programs.

Expand Red Seal certification.

Institute a 1% payroll tax for training.

Allow all trade unions to participate in aTraining Trust Fund - allowing them toindenture apprentices.

Require, as part of regulatory approvals, a setnumber of apprentices on large constructionwork sites, particularly in the fast-growing oilsands sector.

Invest in income supports, bursaries, and otherforms of student assistance to reduce barriersto apprenticeship training, including specificprograms targeted at women, indigenouspeoples, people working in declining industries,and youth.

Require - by legislation - employers who hireskilled tradespeople to take on apprentices.

Provide incentives via the EmploymentInsurance or other programs for Canadiansto relocate to Alberta for work in skilled trades.

If Alberta was serious about solvingany existing skills shortages, whilemaking sure good jobs are available to Albertans, we would immediately

undertake the following efforts:


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www.afl.org

AlbertaFederation of Labour

Endnotes

Vancouver Sun. Peter O'Neil and Tamara Carmen. January 7, 2013."Temporary foreign workers: Filling labour gap or depressing wages?"http://www.vancouversun.com/Temporary+foreign+workers+Filling+labour+depressing+wages/7564651/story.html#ixzz2JyF0AqB6

Alberta Federation of Labour, July 24, 2012. Alberta Relying onBogus Labour Shortage Figures.http://www.afl.org/index.php/Press-Release/alberta-relying-of-bogus-labour-shortage-figures.html

Certified General Accountants Association of Canada. July 24, 2012.Skilled Labour Shortages Sporadic and Short-Lived.http://www.cga-canada.org/en-ca/MediaCentre/MediaReleases/2012/Pages/ca_mdr_2012-07-24.aspx

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