The United Steelworkers (USW) and the B.C. Federation of Labour are applauding the Royal Bank of Canada (RBC) for implementing a new policy that restricts the use of Temporary Foreign Workers (TFWs).
“This action by RBC should be a strong message to all employers, who exploit temporary foreign workers or try to use the program as a source of cheap labour,” said Stephen Hunt, USW Western Canada director.
“Now, it’s time for our federal and provincial governments to abandon their low-wage strategy and require all corporations to follow suit. We will continue to press for meaningful reform.”
RBC recently announced that it has completed a review of its supplier arrangements and is adopting a new Supplier Code of Conduct.
In a statement, RBC said that this principles-based code sets out the company’s expectations for suppliers, in order to ensure their behaviour aligns with RBC standards and approach to responsible procurement.
As part of the code, suppliers must not hire foreign workers from outside of Canada, when performing services on behalf of RBC, where a worker eligible to work in Canada is available and able to perform the service.
RBC reviewed the types of work the bank will and will not outsource to suppliers that execute all or part of the work offshore.
In particular, RBC will only outsource offshore to suppliers, when their investment in scale, technology or operational knowledge provides superior skill sets and capabilities that RBC cannot duplicate inside its own business or in Canada.
RBC will not outsource work offshore, where salary savings is the primary reason and will make every effort to source in Canada.
According to RBC, the company uses the TFW program on a very limited basis for executives and for workers with highly specialized skills and will not use the ‘low skills workers’ program to fill jobs in Canada.
The RBC policy change comes in the wake of media reports last month that TFWs are taking the jobs of 45 employees at the Royal Bank in Toronto.
The Royal Bank employees were given the task of training the same workers who would replace them and taking over the work of their department.
The TFWs are being imported from India by an outsourcing company called iGate.
The TFWs are not direct RBC employees, but RBC is the ultimate end user client and beneficiary of this policy.
In response, a group of B.C. construction unions, representing insulators, machinists, ironworkers, tile setters, bricklayers and plumbers, threatened to withdraw more than $1 billion in pension funds that are managed by RBC Investor Services in Vancouver.
Royal Bank of Canada CEO Gord Nixon flew to Vancouver on April 17 to meet with union leaders and discuss the development of new policy on outsourcing and temporary foreign workers that is intended to be more transparent.
“RBC has recognized that Canadians expect Canada’s banks to provide good, family supporting jobs, in Canada,” said B.C. Federation of Labour president Jim Sinclair.
“RBC’s new policy restricting the use of foreign workers is a direct result of action taken by B.C.’s labour movement to protect Canadian jobs.”
The Construction and Specialized Workers’ Union and the International Union of Operating Engineers have put intense pressure on the federal government to reform the TFW program.
In particular, the unions launched a legal battle in federal court to block the importation of 201 Chinese temporary foreign workers by HD Mining for the construction of the $300 million Murray River underground mine project near Tumbler Ridge B.C.
Justice Russel Zinn dismissed an application by the Construction and Specialized Workers’ Union and the International Union of Operating Engineers on May 21 to overturn Labour Market Opinions (LMOs) that were granted to HD Mining by Human Resources and Services Development Canada (HRSDC).
An LMO is an opinion provided by HRSDC to Citizenship and Immigration Canada, which assesses the impact that hiring Temporary Foreign Workers (TFWs) may have on the Canadian labour market.
Justice Zinn rejected the unions’ arguments that the LMOs failed to ensure there were no Canadians to do the work and the TFWs were offered wages far below prevailing rates.
HD Mining received at least 300 resumes from Canadian citizens or permanent residents, who applied to work at the proposed project.
The company did not hire a single Canadian applicant to work at the mine, claiming they were not qualified.
HD Mining placed advertisements for various positions that required the ability to speak Mandarin as a qualification.
Despite the loss in federal court, B.C. Building Trades unions argue that the court action forced the Harper government to make significant changes to the federal Temporary Foreign Worker program.
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