New rules for foreign workers: What Windsor-Essex needs to know

A "help wanted" sign is placed in a window. (Getty Images)

Windsor-Essex is bracing for changes in its labor market following the federal government's decision to impose stricter limitations on low-wage temporary foreign workers.

Announced by Prime Minister Justin Trudeau on Monday, the new regulations aim to reduce reliance on foreign labor and bolster opportunities for Canadian workers.

Effective Sept. 26, the federal government will tighten the rules governing the Temporary Foreign Worker Program (TFWP).

Businesses in regions with an unemployment rate of 6 per cent or higher, like Windsor-Essex, will face more stringent restrictions.

The cap on foreign workers hired under the low-wage stream will be reduced from 20 to 10 per cent of the total workforce, and the maximum duration for such workers will be cut from two years to one.

“We need Canadian businesses to invest in training and technology and not increasing their reliance on low-cost foreign labour,” Trudeau stated. “It’s not fair to Canadians struggling to find a good job, and it’s not fair to those temporary foreign workers, some of whom are being mistreated and exploited.”

Kelsey Santarossa, director of Community and Workforce Development at Workforce Windsor-Essex, described the policy shift as positive.

"Locally, this is good news for a lot of our local labor force,” she said. “Obviously, it's going to mean some change for those employers that have been going through the process or who may have been considering this – but the important thing to note here is that this has always been designed to be a short-term solution to short-term labor market challenges.”

Santarossa pointed out that while the policy change will affect many low-wage roles, it will not impact sectors like agriculture.

"This does not affect a lot of our labor market needs here in that area," she said.

The local unemployment rate, which Stats Canada clocked as 9.1 per cent in July, places Windsor-Essex directly under the new restrictions.

Santarossa noted that while the policy may create short-term challenges, it could lead to longer-term benefits.

"I don’t know that we'll see any immediate turnaround,” she said. “But I think employers are definitely going to have to turn their attention to what it looks like to skill, to upskill, and to bring in and train the labor force that we need in our region.”

Santarossa emphasized the importance of rethinking recruitment strategies.

"Employers need to be thinking about their compensation packages, ensuring they are offering a fair wage and the right benefits or employment assistance programs," she explained. "This change should encourage employers to be as transparent as possible in their job postings to attract local talent."

Overall, Santarossa views the policy change as a positive step for the local labor market, "It’s a chance for us to see how employers will adapt and focus on utilizing the talent already available in our community.”