1 NOW AND TOMORROW EXCELLENCE IN EVERYTHING WE DO. Temporary Foreign Worker Program. Meat Processing Sector Review. June 26, 2017

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1 1 Temporary Foreign Worker Program Meat Processing Sector Review June 26, 2017

2 2 Context Government s objective for the Temporary Foreign Worker (TFW) Program is that Canadians and permanent residents have the first opportunity at available jobs, while balancing labour needs of employers. In the response to HUMA review of the Temporary Foreign Worker (TFW) Program, the Government pledged to: Require employers to target recruitment efforts to underrepresented groups. Strengthen use of local level Labour Market Information to ensure more rigorous and accurate assessments of labour shortage claims. Review sectors that are heavy users of the TFW Program and develop sector-based strategies to help these employers transition to a Canadian workforce. Sector Reviews will cover primary agriculture, meat processing, seafood processing, tourism, construction and long-haul trucking.

3 3 What ESDC has heard The meat processing industry has been vocal about the negative effects of restricting access to temporary foreign workers in this industry. The industry has told us: Employers are experiencing high turnover and persistently high job vacancy rates. Unions support the entry of temporary foreign workers to in response to labour shortages. Employers are already undertaking extensive recruitment efforts, including reaching out to underrepresented groups, and are committed to developing a domestic workforce. The domestic workforce cannot fill all existing or anticipated job vacancies in the sector TFW Program reforms, in particular the CAP on low wage workers, are restricting industry output and growth. This is especially evident in value-added processing and export markets. Existing training programs are not attracting participants.

4 4 Trending TFW Positions Substantial drop in TFWs in Meat Processing from 2,551 in 2012 to 314 in 2016, an 87.69% decrease Approved positions in meat processing In 2016, the five primary Meat Processing provinces (British Columbia, Alberta, Manitoba, Ontario and Quebec) made up 97.52% of approved meat processing positions.

5 5 Most requested occupations In 2016, the top 3 NOCs: Industrial Butchers and Meat Cutters, Poultry Preparers and Related Workers (NOC 9462). Labourers in Food, Beverage and Tobacco Processing (NOC 9617). Butchers, Meat Cutters and Fishmongers - Retail and Wholesale (NOC 6251). These 3 NOCs are over 95% of approved Meat Processing positions in the 5 primary Meat Processing provinces.

6 6 Sectors Under Review/Other initiatives ESDC is also currently in the midst of: A review of the Fish and Seafood sector. A LMI Study for Meat & Seafood Processing Sectors. Each will provide valuable synergies and inputs into the Meat Processing Review.

7 7 A similar example in progress: The Fish and Seafood processing roundtable In June 2016, a roundtable was held with representatives from the federal government, the Governments of New Brunswick, Nova Scotia and Prince Edward Island, as well as representatives of the fish and seafood processing industry to discuss long term strategies to address the labour needs of this industry. Based on the discussions, potential activities were identified and organized around three themes: supporting and building a sustainable workforce; promoting labour mobility and identifying other sources of labour; and, supporting innovation. It was decided that a collaborative Labour Market Action Plan would be developed by federal departments, the Maritime governments and the industry to identify concrete actions by industry and governments to develop and support a domestic workforce.

8 8 LMI Study for Meat & Seafood Processing Sectors - A Way Forward Objectives: The primary objective of the project is to undertake a comprehensive LMI study of the Canadian meat processing and the Atlantic Canada fish and seafood processing subsectors to identify HR best practices in those subsectors and assist employers with their workforce development efforts. Summary of Activities: Food Processing Human Resource Council (FPHRC) will produce regional, job-specific LMI designed to assist fish and seafood processing employers in Atlantic Canada, and meat processing employers across Canada with identifying and addressing their labour and skills needs. Expected Results: Improved knowledge of labour and skills issues and human resources practices in the Canadian meat processing and Atlantic Canada fish and seafood processing subsectors. Bolstered workforce development efforts (including recruitment and retention of both Canadian and Permanent Resident workers). Increased available LMI to government for policy-making decisions related to these subsectors. An initial report is expected soon.

9 9 Meat Processing Sector Review Building on the work of the FPHRC, ESDC and AAFC to co-host a Meat Processing Roundtable to examine key themes including: The key challenges employers face in hiring/retaining Canadians and/or permanent residents; Industry skills and training investments; Wages and benefits; Sector recruitment and retention strategies to attract a domestic workforce; The role of pathways to Permanent Residency in developing a domestic workforce; and, How the sector has responded to the 2014 TFW Program changes.

10 10 Proposed time line for the review Phase 1: Finalize Themes and Terms of Reference for Meat Processing Roundtable Phase 2: Roundtable meeting with stakeholders resulting in the draft Collaborative Labour Market Action Plan for the Meat Processing Industry Phase 3: Implement Collaborative Labour Market Action Plan for the Meat Processing Industry. July August 2017 Roundtable -- September 2017 Action Plan November 2017 Starting 2018 with periodic updating of Action Plan

11 11 Expected outcomes for meat processing roundtable To develop a Collaborative Labour Market Action Plan for the Meat Processing Industry that outlines ongoing private and public sector-wide efforts to attract, train and retain a domestic workforce. To build synergy across government and industry employment, training and retention initiatives to build and support a domestic workforce. To examine the progress made towards, and results of engaging a domestic workforce under a collaborative labour market action plan, which will be used to inform future decisions on TFW Program policies.

12 12 Next steps for Meat Processing Roundtable In consultation with AAFC and Industry: Agree on the scope of the review; Confirm key stakeholders; and, Confirm timeline for Roundtable meeting.