Construction Union Demands Pause on Foreign Worker Program Amid Abuse Claims

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. 

Selkirk Copper Mines — sponsored Sponsored · Selkirk Copper Mines

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.”


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Everybody Should Own Gold | George Bee – U.S. Gold Corp.

A $40M Company Created $2B in Mining Value | John-Mark Staude – Riverside Resources

The Debt Crisis Is Turning Gold Into Money | Shawn Khunkhun – Contango Silver and Gold

Recommended

Homeland Nickel Signs Binding Offtake With Westwin for 20,000 Tonnes of Concentrate a Year

Golden Cariboo’s First Quesnelle Resource Estimate Tallies 1.19 Million Gold Equivalent Ounces

Related News

Immigration Cuts Slash Population Growth, Cool Housing & Labor Market Pressures

TD Economics says Ottawa’s immigration cuts are already easing housing and labor-market pressures as Canada’s...

Friday, October 31, 2025, 02:18:00 PM

Canada Scraps LMIA Points in Express Entry Shake-Up

Canadian immigration officials have announced the removal of Labor Market Impact Assessment (LMIA) points from...

Wednesday, March 26, 2025, 10:48:00 AM

UN Report Slams Canada’s Temporary Foreign Worker Program as ‘Breeding Ground for Slavery’

A recent UN report strongly criticized Canada’s Temporary Foreign Worker Program, describing it as “a...

Wednesday, August 14, 2024, 03:52:00 PM

RBC Report Says Immigration Surge Is Disguising Recession

If it feels like a recession but the numbers say it’s not, it’s likely because...

Monday, July 22, 2024, 02:19:00 PM

Sean Fraser, Former Immigration Minister, Starts Blaming Immigrants For Housing Affordability Crisis

It’s a classic “blame your previous work for the problems you’re facing in your current...

Wednesday, August 23, 2023, 10:55:00 AM