Ottawa warns against LMIA abuse

by Abdul Latheef

OTTAWA, Ont. — The federal government is warning carriers that any abuse of the Temporary Foreign Worker Program (TFWP) will result in serious penalties including hefty fines and permanent bans.

The warning was issued by Employment and Social Development Canada (ESDC) amid allegations that some fleets are cashing in on the Labour Market Impact Assessment (LMIA) process, which allows companies to hire people under the TFWP.

Ottawa
The government is vowing to crack down on companies abusing the TFWP. (Photo: iStock)

Before any foreigner can be hired for a particular job, employers have to prove that no Canadian is available to fill the position, and that is done through the LMIA process, supervised by ESDC.

A positive LMIA is issued by ESDC through Service Canada under the TFWP, which was launched many years ago to ease shortages of skilled workers in various sectors of the economy.

In a statement emailed to our sister publication Road Today on Friday, an ESDC spokeswoman said the department will not tolerate any abuse of the program.

“Employment and Social Development Canada takes the integrity of the Temporary Foreign Worker Program and the protection of foreign workers very seriously,” said Marie-Eve Sigouin-Campeau.

She said, to protect workers from possible retribution, the department has decided not to disclose information regarding specific cases, including whether or not there is an active investigation of an employer.

The public can report potential wrongdoing and misuse of the program through a confidential tip line, she said.

“All allegations are reviewed and appropriate action is taken. If criminal activity is suspected, the information is forwarded to law enforcement agencies such as the Royal Canadian Mounted Police (RCMP) and the Canada Border Services Agency (CBSA),” Sigouin-Campeau said.

In its most recent action against immigration fraud, the CBSA announced last month a slew of charges against four South Asian businessmen in B.C. That case is still in court. 

Sigouin-Campeau further warned that ESDC has the authority to inspect employer activities including visiting employer worksites with or without notice to ensure they are meeting the conditions of the program.

Employers who are found to be violating the terms are subject to serious penalties, she said.

“This includes monetary penalties up to a maximum of $1 million in a given year, permanent bans from using the program and having the names of their companies and information on the violations published on a public list, managed by Immigration, Refugees and Citizenship Canada (ICRC), Sigouin-Campeau added.

TFWP
The TFWP is aimed at easing shortages of skilled workers in various sectors of the economy. (Photo: iStock)

Student’s plight

When the Quebec government abruptly decided to throw out some 18,000 immigration applications early last year, international students were among the most affected.

Their immigration hopes were dashed overnight after years of waiting.

“KN”, an electronics engineering student from an Asian country who submitted his application four years prior, was rattled by the surprise move.

But he was still in a better position than most – he had a three-year open work permit and a truck driver’s licence.

KN quickly managed to get a driver’s job in Ontario, once again raising his hopes of getting permanent residency.

But that, too, was short-lived as the carrier, based in the Peel Region, started demanding money for processing his documents, once his permit expires at the end of the year.

In tapes recorded by KN and made available to Road Today, a company executive is heard bargaining the amount of money it needs to secure a positive LMIA.

The conversation comes to an end when KN rejects the final “discounted” figure of $15,000, calling it “unfair”. He subsequently leaves the job.

“I am not alone. This is happening every single day, and there are so many victims,” KN said of the LMIA abuse.

His plight just illustrates what international students and other temporary workers are going through in their pursuit of the Canadian dream.

Peel
The Peel Region is the trucking hub of Canada. (Photo: Peel Region)

It’s lucrative

Since 2015, those applying for permanent residency have received additional points through LMIA-based job offers, helping their Express Entry applications.

And, that has led to abuse of the process by all sorts of industries, from trucking and construction to health services and fast food.

The abuse is widespread in the trucking industry, which has faced an acute shortage of drivers over the past few years, with fleets small and big charging potential employees anywhere between $15,000 and $60,000 for a positive LMIA – all paid in cash to avoid any paper trail.

To put that into perspective, a person earning the minimum wage in Saskatchewan has an annual income of less than $24,000.

LMIAs are issued to companies based on their size, and for many carriers they have become another revenue stream.

The demand for LMIA-based job offers has soared amid a surge in student arrivals over the past few years.

In 2018, more than 721,000 international students were enrolled in schools across Canada, according to the federal government. More than 50% of them came from two countries – India and China.

Many of these students can’t afford to go back to their home countries because they are already in deep debt after paying inflated tuition and other expenses.

Their only option is stay in Canada until they get their permanent resident (PR) cards.

Baljit Bawa
Baljit Bawa, director, Sunrise Migration Inc. (Photo: Supplied)

That is where trucking plays a major role, according to immigration consultant Baljit Bawa, director of Sunrise Migration Inc. of Mississauga, Ont.

“There is no rule or clause in the licensing (regime) that says you cannot obtain a commercial licence. Even if you are a visitor, you can get one.”

Once they get the licence, they embark on a search for a sponsor, and there are numerous trucking companies willing to offer sponsorships for “favorable dividends”, Bawa said.  

“It is a safety issue right now for all residents of Canada that must be addressed by the Ministry of Transportation immediately. Any visitors or international students should not be given licences before they get their residence permits.”

He said there is no proper vetting before an LMIA is issued to a commercial carrier.

“I can just say, ‘I am buying 10 more vehicles, so I need 10 more drivers.’ There is no cross check of whether you are actually going to buy them or not. Just a letter from a CPA (Chartered Professional Accountant) or a lawyer satisfies ESDC requirements to issue a positive LMIA.”

Bawa said the department only sees the paperwork from a company.

“They don’t see whether that company even exists.”

So, how can a company with just a couple of trucks afford to hire a dozen drivers? Bawa said that is easy, because, the company makes a lot of money just by offering to sponsor them, and second, the drivers seldom get paid for their work, or are paid next to nothing.

Small towns new target

Industry insiders say some immigration lawyers are working in collusion with carriers in exploiting job seekers.

In some cases, lawyers are traveling to small towns across Ontario to convince unsuspecting companies that they can make some quick money if they are willing to offer LMIAs.

They typically start the process by advertising non-existent jobs. “LMIA-ready” positions are routinely posted on online employment sites.

The federal government estimates that international students contributed some $15 billion to the Canadian economy in 2018 alone.

“You’re putting untrained drivers on automatic trucks… I call it murder on the road. That’s what it is. Legalized murder.”

– Social worker Binder Singh.

While that is a good thing, social worker Binder Singh said foreign students are being exploited by trucking and non-trucking companies alike.

He said the government is well aware of the abuse of LMIAs.

“If you let in almost 600,000 students in the last 4-5 years, what do you expect?” Singh asked.

“The government is making money, but it doesn’t care,” he complained.

Singh had harsh words for fleets hiring student drivers without any concern for safety.

“You’re putting untrained drivers on automatic trucks… I call it murder on the road. That’s what it is. Legalized murder.”

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  • I am a born Canadian and have had my CDL for 41 years with no collisions, no freight claims hauling mostly open deck trailers, can cross the international border with my clean CDL. I have taught in class commercial drivers courses and also developed training and education material. Here I sit at home ready, willing and very capable of doing the job but have to read cheap about import drivers and trucking companies committing fraud and exploiting foreigners. The Government should be held accountable for this fraud too.

  • Canadians do not want to enter the truck industry due to years of stagnation in wages. In 2007, a trucker in Winnipeg was making 0.42 cents a mile, and today it’s -0.46 !!! that’s about $ 500 a month more !!! The salary per mile is not tied to the price index and does not guarantee income for the time spent! It is for this reason that a huge number of accidents occur, especially after the introduction of an electronic logbook. Time is limited, therefore you need to accelerate the pace of work and the number of working days in order to earn at least something !!!
    It was at that time that they began to bring in foreign workers who are ready to work not for money, but for the sake of immigration !! In addition, the inability to quickly change the company allows employers to scoff at the employee in every possible way! Such an employee becomes uncompetitive because he has no choice, and feels like a slave until he receives immigration documents. Employers hiring foreign workers on a deliberate and planned basis are filing advertisements in the press for wages so low that Canadians would not come. Thus, the company shows that they have a problem with personnel. Drivers must obtain open work visas in order to be able to compete and look for a more profitable job, but this is not very profitable for companies for obvious reasons! The only restrictions for foreign workers are:
    1) Work in their specialty.
    2) Work in the province.
    In addition, in order to detain a person in the province, you need to give him five years to work on an open work visa before he can receive immigration documents. But only if he can change companies as he sees fit.
    Otherwise, companies will continue to profit from those who cannot quit, because it is difficult to find a company with quotas, and these companies almost always have very low salaries and minimum conditions.

  • I agree these new truck drivers should not be allowed to drive solo for six months on any city of over 50,000 people. This is why all trucking companies should be limited to 2 drivers for more than 8 months then go back to the county they came from for 3 months. All new truck drivers doing long haul or in a major cities in should have to spend 6 months with a truck driver with at least 5,000 hours experience. We need to make sure all truck drivers have housing between trips and minimum wage rates of 1.9 times minimum wage for these driver trainers. We do have a real shortage of mechanics and people to fix computer systems on trucks and reefer units. A number of larger trucking companies( are asking for who self insure or belong to a insurance group including some O T A members. The Ford government needs to come down heavy on any O T A members cheating truck drivers.