May 1, 2014
The temporary foreign worker program is in the news again. The most recent headline involves an email from Saskatchewan labour recruitment firm that, prima facie, looks like an intimidation tactic to foreign workers. The temporary foreign worker program is designed to meet the needs of Canadian industry by allowing foreign labour to fill the gaps in our domestic labour market, but complaints are rising from different quarters—from helicopter pilots to fast food staff—that companies are bringing in foreign workers even when there is no domestic shortage. Two studies by the Bank of Montreal and the Toronto-Dominion Bank reported by the National Post agreed. Both found that domestic labour shortages were largely overstated.
Temporary foreign workers are a legitimate way to fill labour need in any market. Some positions are filled because there are not enough qualified Canadian workers. However, I am skeptical when told we must import foreign labour because there are jobs Canadians don’t want to do. It’s true that Canadians don’t want to do certain jobs…at certain wages. That’s a crucial caveat.
Basic capitalistic and free market principles tell us that when you have trouble filling a job the solution is to raise the wage of the position until it is a competitive offer. An example. Let’s say an apple picker job is advertised at $10/hour, but this year the apple farmer has trouble finding Canadians to fill these jobs. The solution is to raise the wage to $12 or $15 or $20/ hour until equilibrium is reached and the positions are filled. (Consequently the price of Canadian apples will rise as well.) Bringing in foreign workers who will accept the offered wage, when Canadians will not, artificially keeps wages down.
Yes, Canadians are increasingly reluctant to work for lower wages at labour jobs at farms and fast food chains. This does not mean that Canadians are lazy, but rather a reflection of an advanced economy. Our society is moving towards a highly sophisticated and educated workforce. More and more Canadians have some post secondary education. A highly educated labour force is understandably reluctant to work at jobs that do not require advanced education. This creates a vacuum for these labour jobs—and in a true free market these labour jobs will have to create value (in rising wages) to make themselves attractive to workers.
We should remember that there is no static price for anything. There is no rule that says apples and coffee should be a dollar a piece instead of two. Similarly, there’s no contradiction with a fast food worker making $20/hour. Prices and wages are whatever we agree to. However, by importing foreign workers certain labour jobs are insulating themselves from market forces. As conservatives and believers in the free market this should trouble us.
Furthermore, once here many foreign workers are isolated from Canadian society. The temporary foreign worker at the mall selling us sea salts or pouring our cup of coffee does not have the same opportunity that Canadians have to leave this job for another. Therefore they are susceptible to abuse. We make use of this artificially cheap labour to keep the prices of our fruits and coffees low, but make no effort to integrate them into our communities because they are temporary. As liberals and social progressives this should trouble us.
Canada is the best country in the world. I’ve heard this from many Hatters, but I repeat it here not from blind patriotism. Economically, Canada ranks among the best countries. Our country is large and full of resources, but our economy is sophisticated which allows us to develop those resources responsibly. Our reputation is of a land of opportunity filled with kind people. It is therefore unsurprising that foreign workers are eager to leave their homes in hopes of a better life here—even if only a temporary one. It is unfair to exploit the hopes of foreign workers in this manner. And it is unfair to keep the wages of certain jobs artificially low—jobs typically filled by young and new Canadians. The status quo neither satisfies our value of a fair society nor our belief in free markets.
Medicine Hat News. May 2014.