The International Union of Painters and Allied Trades (IUPAT) is urging the Canadian government to pause the Temporary Foreign Worker program in the construction sector, citing “rampant” employer abuse. The union is calling for an independent audit to investigate the extent of fraud and misuse within the program.
The demand comes after IUPAT’s local unit in Burnaby, BC, DC38, uncovered financial abuse of migrant workers at a British Columbia painting company. Dan Jajic, business manager of DC38, alleges that some construction companies are using the TFW program to undercut competitors by submitting lower-cost bids, effectively taking contracts away from businesses paying living wages to Canadian workers.
The union’s investigation focused on Concord Painting and Wallcovering Ltd., a Burnaby-based company. According to IUPAT, temporary foreign workers were allegedly forced to perform unpaid overtime and charged above-market rents for employer-owned housing.
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One Indonesian worker reported being offered a wage of $23 per hour with overtime pay before arriving in Canada. However, upon arrival, he claims Concord informed him of a lower wage and unexpected costs, including rent and repayment of a supposed “debt” for bringing him to Canada. Bank statements show significant deductions from the worker’s earnings — over $1,000 to cover the supposed debt, room, and board in a house shared with eight other people.
Concord’s general manager, Motor Ma, denied these claims, claiming that all overtime was paid in accordance with provincial labor laws.
IUPAT argues that the closed work permit system, which ties workers to a specific employer, exacerbates power imbalances and leaves foreign workers vulnerable to exploitation. A recent United Nations report described the TFW program as a “breeding ground for contemporary forms of slavery” partly due to this system.
A recent investigation by the Toronto Star also revealed that the government expedited applications for the program by “directing processing officers to skip crucial steps designed to prevent fraud.”
While the Canadian government recently announced restrictions on the low-wage stream of the TFW program, the construction sector remains exempt from these changes. IUPAT is pushing for greater accountability and stricter regulations to prevent abuse within the program.
“It is rampant for abuse and I believe it is happening all over,” Jacic pointed out.
“We want employers who are abusing these systems to know that there are penalties and you cannot get away stock-free.”
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