Canadian PM Carney Tightens Temporary Foreign Worker Program Amidst Criticism Over Tim Hortons' TFW Use

Ottawa, Canada – Prime Minister Mark Carney's government is implementing significant reforms to Canada's Temporary Foreign Worker Program (TFWP), aiming for a more "focused" and "strategic" approach. The move comes amidst a heated political debate, with opposition leaders citing companies like Tim Hortons for their extensive reliance on temporary foreign labor.

The Prime Minister, who assumed office in March 2025, announced that the TFWP will no longer broadly span industries but will be reshaped into a precise tool targeting specific regions and sectors. This recalibration includes stricter Labour Market Impact Assessment (LMIA) processes, increased wage thresholds for high-wage positions, and reduced caps on the proportion of a company’s workforce that can be employed through the program. Government figures indicate a 50% drop in work permits issued under the TFWP in the first half of 2025 compared to the previous year, with only 33,722 net new permits granted.

Conservative Leader Pierre Poilievre has been a vocal critic, accusing the program of eroding opportunities for Canadians and suppressing wages. Poilievre highlighted that "corporations like Tim Hortons have hired an unimaginable 1,131% more TFWs in the last four years," stating that the program allows foreign-owned chains to rely on cheap foreign labor instead of hiring Canadian youth. He called for the program's abolition, arguing it contributes to high youth unemployment rates and prevents young Canadians from gaining vital entry-level job experience.

Prime Minister Carney, while acknowledging the program's role, stated that it needs to be reformed. His government's adjustments also include a moratorium on processing low-wage LMIA applications in regions with unemployment exceeding 6 percent and restrictions on spousal open work permits for certain TFWP holders. These changes reflect a shift towards prioritizing domestic labor market needs.

Mark Carney previously served as Chair and Head of Transition Investing at Brookfield Asset Management until January 2025, prior to his election as Prime Minister. His current governmental role and policy decisions regarding the TFWP are distinct from his past corporate affiliations. The ongoing reforms are poised to significantly impact industries that have historically relied on the TFWP, including the quick-service restaurant sector.