Galt Global Review

QFS 360

 
October 4, 2006

The Wage Dispute


by Faye Mallett


Editor's Note: This is not a story about union vs. non-union. It is not a story of evil intent. Nor is it a story about profiteering. Although it may reach into all of these realms, it is ultimately a story about indifference – of how fellow workers can find themselves tolerating the intolerable.

The importing of foreign workers to Canada has always occurred historically, yet the practice of granting foreign workers temporary visas to complete short-term contract assignments is a relatively new phenomenon, indicative of a much larger global trend in employment. As Canada faces one of its largest labor shortages in history, more and more employers (particularly in the construction and skilled trades industries) are likely to turn abroad to find workers to fill their positions.

To facilitate this, temporary foreign worker units have been set up in Vancouver and Calgary - two Canadian cities with “hot” economies - to provide advice to employers who want to hire temporary foreign workers and need to expedite the application process.

In BC alone, construction for the 2010 Olympics has placed an estimated need for 40,000 more workers between now and 2011. Alberta faces the same issues as it struggles with its own labour shortage. With unemployment at its lowest level in 30 years, Albertan employees are finding that there just aren’t enough people to fill jobs, particularly in entry-level positions. Some employers are going so far as to offer $500 signing bonuses and free trips to Mexico to attract employees, and, in some locations, staff at McDonalds are being paid $20 per hour. As employers come up with creative solutions, and increase the rate of minimum pay, they are also beginning to look increasingly at the option of hiring temporary foreign workers.

The Wage Dispute
The federal government has made it clear that it will do what it can to make it “easier and faster” to import temporary foreign workers into the country to help employers in specific industries and sectors.

Yet critics have already begun to accuse companies of exploiting foreign workers by paying them lower, and in some cases, insufficient, wages. In BC, one specific allegation of worker exploitation is under review by the BC Human Rights Tribunal and the Employment Standards Branch, which has placed everything in a “state of turmoil,” as Wayne Peppard, from the BC and Yukon Building and Construction Trades council, wryly states.

The case in question came to the public attention two months ago when, according to Peppard, a Canadian worker employed on The Canada Line (a major construction project currently occurring in Vancouver in preparation for the Olympics), went to the union and voiced the concern that workers brought in from Central America were being exploited by their employer.

Working alongside their Canadian counterparts, the 40 workers, who came from Costa Rica, Colombia and Ecuador, were allegedly being paid approximately $1000 (US), were required to work 60 hour weeks, while Canadian workers on the same job were being paid $18-20 an hour.

Employed by an Italian-based Contractor, SELI Canada (a subsidiary of the Canadian firm, SNC Lavalin), the foreign workers were subsequently unionized and have been in collective bargaining with their employer for the past two months.

“These are wild and serious allegations,” says Steve Crombie, spokesman for InTransitBC, the company overseeing the Canada Line construction. “And they are completely unfounded.”

Crombie noted that the workers were already employees of SELI, an internationally-based company that moves its workers around the globe as it takes on different projects. “Their employees are offered Inter-Company Transfer Visas,” Crombie says. “These aren’t Canadian Visas. When the project is over, their workers return home.”

While unions counter the argument that the Canadian economy is experiencing an unprecedented labour shortage, Crombie disagrees. “Anybody working in this industry knows that it is becoming extremely more difficult to find local labour. SELI ran advertisements for seven weeks and didn’t get very many applicants. They also found that nobody had the skill or the training to properly use the equipment. So, of course, they wanted to use their own people.”

Canadian Law
According to Federal regulations, temporary work permits may be issued to foreign workers as long as their salaries are commensurate to Canadian standards, and that local workers aren’t displaced out of a job.

Crombie notes that, because this is Canadian law, a company like SELI had to comply in order to be able to bring in its own employees. Otherwise, it would have been illegal. Yet Peppard raises concern over the potential for public/private contractors to be able to bring in foreign workers on contracts that don’t comply with Canadian worker rights laws.

“This is a very complicated issue - perhaps larger than anything this nation has faced,” says Peppard. “We can’t have sub-standard contracts that undermine the terms and conditions of Canadian contracts.” In most instances, workers don’t know what their rights are, and often sign contracts based on the fact that they will be granted a Canadian visa. Once they arrive here then they find that they are at the complete whim of their employer, who can threaten to terminate employee visas if they voice complaints about wages and living conditions. “There’s nothing implemented to monitor these situations.”

Since allegations came public, SELI has contended that they had planned to bring up the wages to Canadian standards all along; they just didn’t know what those standards were. Now, according to Peppard, these 40 foreign workers are earning up to $10.70 an hour, a rate just above Canada’s minimum wage requirements.