Fairmont Banff Springs, courtesy of Thinkstock

In case you’ve missed it, the federal government is slowly rolling out changes to its Temporary Foreign Worker (TFW) program. The latest changes could provide some much needed relief for Canada’s hospitality industry, which is facing increasing labour shortages.

The Tourism Industry Association of Canada, after meeting with the Minister of Employment, Workforce Development and Labour, the Honorable MaryAnn Mihychuk, as well as the Departmental Director of the Temporary Foreign Worker Program, has confirmed that tourism industry workers will be classified as "low-wage seasonal positions" for 2016, which makes them eligible for exemptions under the TFW program.

At issue, the TFW program limits a business’ allotment of temporary foreign workers to 20 per cent all employees, a number that will decrease to a 10 per cent cap starting July 1, 2016. With the new regulations, tourism employers will be exempted from adhering to the 10 per cent cap for this year, allowing them to hire more foreign workers for a period of up to six months.

The Hotel Association of Canada has said it “applauds” Mihychuk for recognizing the seasonal nature of the lodging industry.

“We are particularly pleased that the government has recognized the seasonality of our industry which now allows us to better fulfill our staffing requirements”, said Tony Pollard, HAC President. “This recognition of the seasonality of the lodging industry lends itself directly to the Hotel Association of Canada long held position that Canada requires a Seasonal Lodging Worker Program”.

Tony Pollard met with Employment Minister MaryAnne Mihychuk last week to discuss reforms made to the Temporary Foreign Worker Program in 2014.

Labour shortages in Canada’s hotel industry can add up to big losses. As an example, the TIAC points to Banff and & Lake Louise, which welcome more than 3.6 million visitors every year. With a combined population of 10,500 residents, the two regions have welcome 340 visitors for resident. Last July, the hospitality industry in Banff & Lake Louise reported a labour shortage of 404 people or 17 per cent of its work force.

Without the waiver to the TFW program, the TIAC estimates that nationally the hospitality industry is facing a labour shortage of 250,000 employees by 2030, which could cost the Canadian economy up to $31.4 billion in lost revenue.

The hospitality industry exemption is a temporary measure, and applies only to the 2016 season. The TIAC is working with its partners and government officials to identify better and more long-term solutions to labour shortages.

For more information, visit http://tiac.travel. 

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