The restaurant industry in British Columbia is sounding the alarm over coming changes to the temporary foreign worker program it says will only drive prices higher.
The new federal changes will bar low-wage temporary foreign workers in regions with an unemployment rate over six per cent.
At the same time, they increase the minimum hourly wage for temporary workers in the high-wage stream to $34.62 in B.C. in order to incentivize businesses to hire Canadian workers.
Prime Minister Justin Trudeau initiated the changes amid concerns Canadians were being passed over for jobs and amid pressure on the housing market.
But some in the hospitality sector say there will be unintended consequences.
Lewis Hart, who owns Laowai in Vancouver’s Chinatown, said the restaurant industry has struggled with a labour shortage for years and relies on TFWs to stay in operation.
Boosting wages from around $20 per hour to over $30 an hour will leave businesses with few options, he said.
“Once one person is employed at (that wage) the rest of the industry will see that as the median income, and we are going to see that passed on to consumers, we are going to see massive price increases,” he said.
“I wouldn’t be shocked if you see prices such as $30 burgers within the next six months if this goes ahead.”
Hart said the changes could result in up to 6,000 workers leaving Canada because employers can’t afford the new wage.
But he said there aren’t Canadian workers waiting to take their places.
“Even if there is a wage increase, people do not want to finish work at 2 a.m., and especially with the limited transit options we have, many people still can’t afford to work downtown,” he said.
“We are losing more people in our industry than we are gaining each year. This has been a lifeline since the pandemic, and now the rug is being pulled out from beneath us.”
Ian Tostenson, president and CEO of the B.C. Restaurant and Foodservices Association, said the changes will hurt a restaurant sector where many businesses are already considering closing up shop amid surging costs.
“We are talking about skilled workers, we are not talking about low-wage workers here — these are cooks and chefs that we cannot source in Canada, they are not registered in cooking schools, the impact of this on us is huge,” he said.
“Everybody wants responsible immigration, but for the government to do this is overreach, it’s political, and I think it’s going to backfire on them.”
Hart, who is himself an immigrant to Canada, is calling on the federal government to rethink the changes.
“Get off your hands and fix housing. That is the problem,” he said.
“We can’t use someone as a scapegoat because of your own inefficiencies.”
The new wage rates are scheduled to take effect on Friday.