Company argues historic penalties are 'grossly disproportionate'
A New Brunswick shellfish processing plant is seeking a judicial review after being fined $1 million and banned from Canada’s Temporary Foreign Worker (TFW) Program for a decade.
Bolero Shellfish Processing Inc., based in Saint-Simon on the Acadian Peninsula, is seeking a judicial review after Employment and Social Development Canada (ESDC) imposed what is believed to be the largest penalty to date for alleged mistreatment of foreign workers, according to a report by CBC.
The company argues that the penalties are “grossly disproportionate” and that the four-year federal investigation prejudiced its ability to respond to the allegations. Bolero’s application to the Federal Court claims the process “reversed the onus of proof,” presuming guilt and causing “considerable stigma akin to a finding of guilt in a criminal proceeding without any right to a trial or a hearing.”
According to the federal registry, Bolero was found to have broken federal or provincial laws in hiring and recruiting, failed to meet pay or working conditions promised in job offers, and did not do enough to prevent abuse or reprisals in the workplace.
The company disputes these findings, stating that any issues were the result of administrative errors that have since been corrected. Bolero maintains that it paid workers for the equivalent of 30 hours per week, even when economic conditions and pandemic-related travel delays reduced available work. “The objective of the procedure implemented by Bolero was to provide advance payments to the TFWs, with their consent, to mitigate the impact of reduced work availability,” the company said in its court filing.
Federal response and enforcement Trends
Federal officials say the case demonstrates that enforcement is working. “Employers are required to provide safe, healthy and dignified working conditions,” ESDC said in a statement. “Any mistreatment of workers or misuse of the program will not be tolerated.”
Patty Hajdu, Minister of Jobs and Families, previously told reporters, “We’re catching those bad actors.” She added that it is up to wronged workers to seek compensation, possibly with the help of local migrant support networks. “It’s on individual employees to take action to sue the employer — to take action to try to recover those wages.”
Recent government data shows a sharp increase in penalties and bans. In the last fiscal year, 1,435 inspections were conducted, with 10 per cent of employers found non-compliant. Total penalties more than doubled to nearly $4.9 million, and suspensions from the program tripled to 36.
Advocacy and Industry Reaction
Tracy Glynn of the Madhu Verma Migrant Justice Centre, which has supported affected Bolero employees, says the penalties are significant but questions their deterrent effect. “For many of these companies, it is just the cost of doing business,” Glynn said. She called for more robust protections, including open work permits for foreign workers and greater access to social services.
Industry groups and rural employers warn that the TFW Program remains critical for sectors facing acute labour shortages. Osborne Burke, general manager of Victoria Co-operative Fisheries in Nova Scotia, said, “Reality, contrary to what Mr. Poilievre says, is there’s nobody else left to employ.”
Implications for HR Professionals
The Bolero case underscores the importance of rigorous compliance for HR professionals managing foreign workers. Key takeaways include:
- Ensure all employment contracts, pay, and working conditions strictly meet or exceed federal and provincial standards.
- Maintain detailed records and be prepared for unannounced inspections.
- Address administrative errors promptly and document corrective actions.
- Support foreign workers’ access to information, social services, and advocacy resources.
