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Canadian Ruling Party tightens up foreign-workers program

kingrant

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Canadian Ruling Party tightens up foreign-workers program

April 30th, 2013 | Author: Online Press


OTTAWA (29 Apr. 2013)
After weeks of public outcry over the scarcity of Canadian jobs, the Conservative government delivered a pink slip Monday to a series of controversial changes it made last year to the temporary foreign workers program.


Employers will no longer have flexibility to set the wages for foreign labour, calling a halt to what was known as the 15-per-cent rule, Immigration Minister Jason Kenney told a news conference.
That rule allowed businesses to pay foreign workers up to 15 per cent below median wages, if that’s what they were paying Canadians.


The Conservatives are also calling a temporary halt to a program that fast-tracked the ability of some companies to bring in workers from outside Canada through what’s known as an accelerated labour market opinion.


The two changes are part of a broader overhaul of the temporary workers program that also includes stricter rules for applications, new fees for employers who apply and a promise of stricter enforcement.
Some elements of the overhaul were announced in the March budget, but the program review has taken on greater political urgency for the Conservatives in recent weeks in the face of weak job numbers and a high-profile case of potential misuse of the foreign workers system involving the Royal Bank of Canada.


The 15-per-cent rule and fast-tracked application process were introduced with much fanfare last year as a way to keep Canada’s economy humming.

Kenney insisted both were just pilot projects.
“It is a paradox that we get from some interest groups – constant pressures suggesting that the program is far too lax, and then from many, many employers and industry groups suggesting the program is far too rigid,” he said. “And we tried to respond to some of those concerns.”


But the concerns of Canadians have been mounting as well.
Earlier this month, it was revealed that the Royal Bank contracted a supplier to provide IT assistance, which resulted in the bank outsourcing some Canadian jobs.


Questions were raised about how the supplier brought its own employees into Canada under the temporary foreign worker program so they could be trained at RBC branches. And last year, a mining firm came under scrutiny for being approved to bring in foreign labour by claiming the ability to speak Mandarin was an essential requirement of the job.

“We understand why Canadians are asking questions, and quite frankly, our government shares their concerns,” said Kellie Leitch, parliamentary secretary to the minister of human resources.
“The program was never intended to displace Canadians.”


Critics said the 15-per-rule was partially to blame, as it allowed the import of cheap labour and meanwhile, the fast-tracked application processes were never policed to ensure they met the rules.


The Conservatives have made a mess of the entire program, the New Democrats charged.


“This is not the first time the Conservatives have said they wanted to fix the program,” said NDP human resources critic Chris Charlton.
“This is the latest example of them acting only after they got caught.”
Kenney said he knows employers won’t be thrilled by the changes.
“Our message to them today is don’t just double, but triple your efforts to hire and train available Canadians for the work,” he said.
“This will affect their businesses but we’re sending a message that Canadians want them to send: do everything you can to find Canadians first.”


Reaction was swift.
“What is being proposed by the government today is not in the interest of Canadian business,” the Canadian Chamber of Commerce said in a statement.
“It’s frustrating to see Canadians underemployed. It would be worse to see whole communities damaged because a key employer relocated elsewhere.”


In 2012, some 213,516 people entered Canada via the temporary foreign worker program, more than three times the number admitted a decade ago. Put another way, the private sector brought in 25 per cent more foreign labourers last year than the number of economic immigrants accepted by the government, which has long insisted caps on its own programs are necessary so as not to flood the Canadian labour market.


Two of the seven changes announced to the program Monday appear directly related to the recent controversies. One will add questions to employer labour market opinion applications to ensure that the program isn’t used for outsourcing of Canadian jobs; the second ensures only English or French can be used as language requirements. The changes will also increase the government’s authority to revoke work permits if the program is being abused.


The government says it will also ensure employers who use foreign labour have a plan to switch to a Canadian workforce over time. The changes also allow the government to charge employers a fee to bring in foreign labour rather than have taxpayers absorb the cost of the program. The government spends approximately $35.5-million per year processing applications, at a cost of approximately $342 per application, Human Resources and Skills Development Canada told a pre-budget briefing earlier this year.

The seasonal agricultural worker program and the agricultural stream of the foreign workers program will be unaffected by the changes.


The government said there are proven labour shortages in this industry and the unfilled jobs are temporary.
Opposition politicians have argued that the growth and alleged abuse of the program pokes holes in the Conservative government’s claim to have created thousands of jobs in Canada since the 2008 recession.

In a report released Monday, the Alberta Federation of Labour said that in 2010, Alberta’s economy lost 8,600 jobs but at the same time, 22,992 foreign workers were allowed in.

Three out of every four jobs created in Alberta are filled by foreign workers, said Gil McGowan, the federation’s president.


“It’s clear to us that there is a huge and growing disconnect between what the Harper government says this program is supposed to be about and what it’s actually become,” McGowan said.
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The Canadian Press
 

mojito

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Loyal
An unnecessary knee-jerk reaction. Only our most just and fair minister Tharman can device a smooth transition for businesses instead of bowing to irrational popular pressure. This will surely help new taxi drivers and security guards gain a few years of relevant experience in their work before returning to their former pmet roles. That is why i tell you the pap is indeed the bestest government in the world!
 

bhoven

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I wont be surprised that this too is happening in Singapore...is Tharman, MOM or MAS even aware of what is going on the ground....heard that MAS merely sent around a questionaire to banks asking for data on the overall foreign/local employee ratio without breakdown by department, grade or salary level...if true it is just a wayang...( as usual )

Canada ‘scammed’ by Indian IT Worker Industry
May 5th, 2013 | Author: Online Press

Claims include faked resumes, visa violations and discrimination against Canadians



(29 Apr) – Several information technology industry insiders have come forward to expose some of the inner workings of multinational outsourcing companies from India, which they claim exploit Canada’s temporary work visa system and bring no real benefit.
“I need to stop this scam. I am hurting,” said one experienced Canadian IT worker, originally from India, who told CBC he’s been pushed out of his industry as a result of outsourcing.
He and others told Go Public that they have seen up close how the Indian companies operate in banks and other major Canadian corporations, where the multinationals have large contracts to do IT work.
“Nobody is checking what they are doing,” said another local worker. “They just use their name and use their money to get the contract.”

Workers Unqualified
The “scam” allegedly includes bringing in cheaper workers from India – some with grossly exaggerated resumes — who then can’t perform on the job, causing delays and mistakes on projects for Canadian companies.
“Our people had to actually redo things. And fix those issues,” said one bank insider. “It was really a mess and those were really serious issues.”
The insiders claim there are bonus incentives for managers of Canadian companies that sign on, promises of big savings that can’t be delivered and violations of work visa rules in the process.
“They would push the banks to hire these people and to select them over other people that were genuinely more qualified,” said a former bank insider.
“There were kickbacks…certain bonuses that were flying back and forth between individuals who were in a hiring position.”
A former employee of one of the multinationals said Canadian executives were “dazzled” by the sales pitches, promising workers who could do more for less.

Canadian Firms ‘Dazzled’
“When I go to the kid and say, ‘You can own Disneyland for a day,’ the kid is dazzled right?” he said. “If people are saying there are saving costs, that is bullshit.”
The bottom line, said the people who contacted CBC, is Indian companies are earning millions bringing cheaper IT labour into Canada, while also moving some of the work overseas.
The multinational firm charges a Canadian client less per worker than the going rate here, but insiders estimate they still make a 50 per cent profit on each of their foreign workers.
In the meantime, they said, Canadians are shut out of almost all the available jobs, while others are laid off.
“These companies are just big [temp] agencies here and it’s immigration through the back door,” said another out-of-work Canadian of Indian descent.
Many of the foreign workers only stay in the transient jobs long enough to improve their qualifications, he added.
“They say we are just here to get the Canadian experience and that’s it.”
They reportedly then apply for permanent residency and get a better job in Canada, or go back to India.

Revolving Door

“It’s a never-ending revolving door,” said the former bank insider. “When we get these people up to speed with these skills…then they will leave.”
Dozens of industry people contacted Go Public after they saw the stories about RBC replacing staff with foreign workers. They all spoke on the condition they would not be identified.
“It’s very big. It’s coast to coast. It’s huge and it’s every company,” said another worker.
Several of them have written to the prime minister, their MPs or the Immigration Department about this in recent years. They said they got little or no response.
“We’ve been writing. We’ve been doing as much as possible,” said one.
The largest firms bringing IT workers into Canada include TCS, India’s largest IT service company, a division of Tata. TCS made more than $10 billion in 2011-12 and reportedly counts the Bank of Montreal, CIBC and TD among its large Canadian clients.
TCS was the only company that responded directly to the claims raised here.
In a statement, it denied its employees exaggerated resumes or violated visa rules. It also denied paying kickbacks and not hiring Canadians, insisting all of those claims are “false and without any merit in fact.”
Other companies include iGATE, which provides workers to RBC, and Cognizant, which reportedly does IT work for Loblaw and Manulife. Mahindra Satyam is another company mentioned frequently, for doing IT work for Scotiabank.
“It’s out of control now. And it’s become so bad,” said the former bank insider.

Visa Fast Track

Several insiders said the multinationals take advantage of a little-known fast track in the work visa system.
“You have your doors open and you let everyone in — so what the heck,” said the former multinational employee.
The government often allows these companies to bypass time-consuming scrutiny of the Temporary Foreign Worker program by giving them an exemption to bring workers in under a visa called an “intra-company transfer”.
Under those visa rules, a company can transfer an employee to work in its Canadian branch office, if they have specialized skills or management ability. Once here, they can renew their work permit for up to five years.
“They are supposed to render their services to the employer they are employed with,” said the former multinational employee.
In reality, insiders say, the Indian nationals then simply work in the offices of major Canadian corporations and have no exceptional skills.
“I would say 80 per cent of them would hold this intra company transfer visas and they’re not eligible or they’re not allowed to go to these end client sites,” he said.
They may work at several locations, which lawyers confirmed would likely violate the visa rules.
“If what is being told is accurate, we have a serious problem that there are Canadians that are being displaced by individuals that are not bringing specialized knowledge or significant benefit to Canada,” said Toronto immigration lawyer Mario Bellisimo.
“And that totally runs contrary to the law as well as to the spirit of the policy.”

Fake Qualifications
Several insiders claimed worker qualifications were faked or exaggerated on paper in order to qualify for the visas and jobs.
“The resumes were customized to match the skills that the banks required,” said the former bank insider.
She added that some multinational employees told her that if they needed specific certifications they could buy them in India.
“They’re buying their qualifications. They are paying for their certificates and coming here and we are looking at them saying, ‘Oh this person has a certificate in project management. It’s from India.”
Go Public obtained several resumes from Indian nationals in the IT field. One claimed he was a “Senior Systems Engineer” at 22 years old, but fresh out of school. Another called himself a “Software Developer” at 21, when he had no prior experience.
“The skill sets were exaggerated,” said the former bank insider. “They looked too good to be true.”
“Some don’t even have the degrees,” claimed one of the insiders. “They show that they are master’s or bachelor’s [degrees] or skilled with whatever experience but they don’t have it. They do two-week crash courses before coming here.”
“Quietly, they really struggle,” said another insider. “We help them. And we know, after that, we are going to be replaced.”
Government figures show 16,299 foreign workers from India were in Canada in December of 2011, a steady increase from 2,171 in 2002.
Go Public asked for the latest figures – on how many intra-company transfers were granted in India last year – but was told that information would not be released.
“We are unable to release the stats,” wrote Erika-Kirsten Easton, director of ministerial events and media relations for the Immigration Department
Immigration Minister Jason Kenney said the government is now looking at intra-company transfers to make sure they are not being abused, but he says they don’t want to go too far.
“It would be hugely damaging to our economy if we suddenly erected huge barriers to the movement of skilled labour within certain companies,” Kenney told Go Public.
“At the same time, we want to make sure that people are not using that as a kind of back door to undercut the Canadian labour market or displace Canadian workers,” he said.
Internal government documents obtained by Go Public show bureaucrats in the Immigration Department have flagged that corruption in visa applications is widespread.
“Persistent fraud occurs in all business lines,” said the internal report on offices issuing visas in India in 2012-13.
“Verification of Indian education, employment and financial documentation is labour intensive and often without conclusive outcomes.”

U.S. Crackdown

Governments in the U.S. and Britain have already cracked down on multinational firms – going back to 2010 — for taking advantage of the same type of company transfer visas there.
“These other companies are essentially creating multinational temp agencies,” said Senator Charles Schumer, a U.S. Democrat who has led the charge to stem the influx there.
“These companies are petitioning for foreign workers simply to then turn around and provide these workers to other companies who need cheap labour for various short term projects.”
A proposed U.S. law is currently in the works which would add further restrictrions by mandating a large portion of their workforce must be American residents.
There are many reports that Indian companies are feeling squeezed as a result.
Several U.S. lawsuits have also been filed against the large Indian companies, alleging various violations of U.S. immigration and labour laws.

‘Stop the Loopholes’

“This whole file needs to be fixed immediately,” said Opposition immigration critic Jinny Sims. “The government needs to stop the loopholes but also needs to do investigations and look into what is going on.”
In the meantime, industry insiders claim Canadian companies are losing control of their business while the IT jobs disappear for good.
“Going forward, these costs do escalate,” said the former multinational employee.
“It becomes like a mafia. Let’s say you have one proved preferred vendor. So over a period of time…you depend entirely on this particular vendor to provide your daily bread and butter services.”
“We have to stop this thing. For ourselves and for our children,” said one of the unemployed workers. “This country is going to be dependent on foreigners.
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[Source]: http://www.cbc.ca/news/politics/story/2013/04/24/bc-inside-outsourcing.html

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