Current TFW programs are providing a much-needed lifeline for dealers.

In Canada, and certainly in Ontario, new car and truck retailers have and continue to face severe shortages when it comes to skilled trades workers. There are simply not enough automotive technicians available to fill the vacancies required. To try and help plug the gap, dealers have been relying on obtaining workers through the Temporary Foreign Worker (TFW) program.

This is a program where MVRO, in conjunction with its dealer members, is recruiting skilled certified Automotive Service Technicians from the Philippines. While programs such as this are helping alleviate the shortage, many vacancies still need to be filled both in Ontario and in every Canadian province.

Political hot-button

In 2024, the topic of immigration—especially temporary workers—has become a political hot-button, with growing pressure on the government to reduce the intake of people through the TFW program. The argument is that Canada is receiving a huge surge in immigration numbers, for which our infrastructure is simply unable to cope with, putting pressure on essential government services such as health care and driving up the cost and demand for housing, as well as applying downward pressure on wage growth, negatively impacting the ability of Canadians to find good paying jobs here at home.

The Labour Market Impact Assessment (LMIA) initiative is designed to ensure that Canadians are given the first opportunity to apply for careers in this country, and while MVRO supports the LMIA process and firmly agrees with how it should work during normal times, the issue is that the current labour crisis we face is anything but normal. 

Demand continues to severely outpace supply, and this situation results in uncashed paycheques, foregone government and business revenue, and delays in the public receiving fast, efficient and quality maintenance and repair services for their vehicles. It’s one reason why many of Ontario’s 1,100 new car and truck retailers have depended on the Temporary Foreign Worker (TFW) Program as an interim measure.

Potential adjustments

On August 26, 2024, the Government of Canada issued a news release stating that it “will continue to monitor labour market conditions and introduce further adjustments to the Program as needed in the coming months to ensure that only employers with demonstrable labour market needs have access to the Program.”

This could potentially, result in reducing the number of temporary foreign workers into Canada which could exacerbate an already critical situation around labour shortages in skilled trade professionals.

For the automotive trades—there is documented evidence to show how critical the shortage of automotive technicians is. A recent report by professional services firm MNP, demonstrated that Ontario alone, is short 3,000 automotive tradespeople— double the number the province faced prior to the COVID-19 pandemic. These statistics also provide indisputable evidence that shows the Temporary Foreign Worker program is still necessary for our sector.

As a result, MVRO is urging that no changes are made to any Labour Market Impact Assessments (LMIA) that will impact Ontario new car and truck retailers. In fact, our sector requires red tape to be cut in the LMIA program to save employers and prospective employees time, money and stress.

Perception versus reality

Recent media reports have added fuel to the fire, unfairly generalizing all employers as abusing the LMIA process as simply a means to hire low wage workers, when in fact, in automotive retail the opposite is true. Technicians working at new car dealerships are well compensated and possess highly technical skills that require significant education.

MVRO is hopeful the government will continue to keep the TFW program in place for the automotive retail sector. Additionally, we hope that the government will introduce meaningful changes to the LMIA program to make it easier for much needed skilled automotive technicians to enter Canada and embark upon a life-changing career that contributes to the well-being of local businesses, communities and the economy.