But trucking and construction sectors warn of 'labour crisis' with new criteria
New Canadian regulations for temporary foreign workers (TFWs) are raising alarms in the trucking and construction sectors, with leaders warning of a “labour crisis” as stricter wage and application criteria take effect.
The new rules, effective today, Nov. 8, increase wage requirements in the high-wage TFW stream, shifting many roles to the more restrictive low-wage category and limiting applications in areas with unemployment rates above 6%.
Dominique Lamothe, HR director at Groupe Nadeau, a Quebec trucking firm, is concerned about the impact of these changes, according to the Canadian Press.
The company, which operates a fleet of 200 trucks and employs 70 mechanics, relies heavily on TFWs, particularly in its high-wage program. New rules will push the wage cap to 20% above the median provincial income, making it financially challenging for the company to renew its current TFW contracts.
“We will not be able to renew all these work contracts because of this new law,” Lamothe said. “So, if we are not able to renew the contracts, it will be 35 fewer workers in our mechanic shop.”
Despite daily recruitment efforts, Groupe Nadeau struggles to find local mechanics with the right skills, she said in the CP article.
“We’re looking at every CV that we are receiving every day, but we still don’t have mechanics who are applying. They’re not in the six per cent who are unemployed.”
Language barriers also limit options, as Quebec requires French proficiency for permanent residency, making it harder for foreign workers to qualify.
Canada’s construction sector is also raising concerns, with the industry facing a national shortage of 45,000 workers.
Rodrigue Gilbert, president of the Canadian Construction Association, underscored the challenges in finding skilled labour in the CP article.
“We still have a major labour crisis in construction. Just right now, we have about 45,000 vacancies in the sector,” he said.
According to Gilbert, the vacancies span from entry-level to skilled trade positions, but many roles require Red Seal certification, Canada’s national standard for trades. Although the government reports that 50,000 permanent residents with construction experience entered Canada between 2019 and 2024, Gilbert noted that only about 9,000 are Red Seal certified, limiting their ability to meet industry demand.
Ontario is investing $26 million to build a new training centre at Laborers' International Union of North America (LiUNA) 183’s skilled trades training campus in Vaughan.
Employment Minister Randy Boissonnault explained that the new rules aim to prioritize domestic hiring and prevent companies from using TFWs as a first choice for staffing.
“There are Canadians, permanent residents, people living here right now who can take these jobs,” he said at an earlier press conference, adding that the program should not be used to suppress wages or bypass local talent.