Business owners say sudden federal policy shift puts operations and jobs at risk.
A group of 23 Quebec business owners has filed a $300 million class action lawsuit against the federal government, alleging severe economic harm caused by sudden restrictions to the Temporary Foreign Worker Program (TFWP).
The lawsuit, filed in Federal Court, claims that the government’s decision to reduce the number of foreign worker permits—particularly employer-specific work permits—has jeopardized operations in multiple industries including manufacturing, food processing, logistics, and hospitality.
EMPLOYERS SAY PROMISES WERE BROKEN
According to the plaintiffs, federal authorities had previously assured them of continued access to foreign labour through the TFWP. Many businesses say they relied on these assurances when planning staffing needs, signing contracts, and investing in equipment and expansion.
Frédéric Bérard, the group’s lawyer, stated that Ottawa had “flipped the table” on employers with no warning.
“They told us we could bring in foreign workers and build our workforce around that. Then suddenly, without warning, they stopped allowing the permits. This is not how a responsible government behaves,” Bérard said in interviews with multiple outlets.
ECONOMIC IMPACTS
Several businesses involved in the lawsuit report monthly losses exceeding $100,000 due to the permit cuts. Others say they are unable to fulfill client orders, maintain production levels, or meet deadlines.
“We can’t run our production line without workers. And we can’t find enough people locally to do the jobs,” one plaintiff told media. “It’s not about avoiding local hires it’s about survival.”
In some cases, businesses are warning that without policy changes or compensation, they could be forced to shut down operations altogether.
BACKGROUND: FEDERAL SHIFT IN TFW POLICY
In early 2024, the Government of Canada introduced stricter controls on the Temporary Foreign Worker Program following public concerns over immigration levels and pressure from the Quebec government. Among the changes were:
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- Reductions in the number of employer-specific permits issued.
- Increased inspections and penalties for non-compliant employers.
- Efforts to curb what critics described as “overreliance” on temporary foreign labour.
Federal officials stated that these measures were necessary to preserve the integrity of Canada’s immigration system and ensure jobs were available for Canadians and permanent residents.
INDUSTRY FRUSTRATION GROWS
Business associations in Quebec, including manufacturers and regional chambers of commerce, have expressed growing concern over the new federal stance.
Véronique Proulx, CEO of Manufacturiers et Exportateurs du Québec, noted that many of her members are being forced to scale down operations.
“Companies are delaying production, turning down contracts, and losing clients internationally because they can’t get the workforce they need,” she said.
The lawsuit reflects a broader debate across Canada: how to balance the labour needs of businesses—especially in sectors with ongoing shortages—against the need to regulate immigration and protect worker rights.
WHAT COMES NEXT?
The Federal Court is expected to review the filing in the coming months. In the meantime, employers continue to call for:
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- Reinstatement of TFW permits to previous levels.
- Clearer, more predictable policies for workforce planning.
- Compensation for damages caused by the sudden changes.
There has been no official comment from the federal government on the lawsuit as of the time of writing.
