Tim Hortons Advocates for Increased Foreign Worker Limit

Canada’s Hospitality Sector Faces Labour Challenges: The Debate Over Temporary Foreign Workers

In the wake of a significant labour shortage, prominent Canadian coffee chain Tim Hortons, along with its parent company, has been at the forefront of lobbying efforts to increase the cap on temporary foreign workers. Spanning over 18 months, their campaign has involved discussions with Members of Parliament and federal officials, highlighting the challenges faced by the food service sector in staffing their locations.

The Catalyst for Change

The COVID-19 pandemic left many industries, especially food services, grappling with hiring and retaining employees. Tim Hortons argued that the current cap on temporary foreign workers, set at 20%, is insufficient for their operational needs, particularly in smaller towns with limited local labour pools. In a pivotal letter penned in 2024, the company outlined its requests: raising the cap to 30% for specific roles, expediting work permit renewals, and creating clearer pathways for temporary workers to gain permanent residency.

The Business Perspective

For franchise owners, the consequences of a low cap are tangible. A cap increase could mean the difference between fully operational restaurants with all shifts covered or restricted hours and services. The inability to staff adequately often results in shorter operating hours, closed dining areas or drive-thru lanes, and delayed expansion plans—all of which place extra pressure on existing employees. Thus, raising the cap would enable restaurants to source talent from abroad to fill these critical gaps.

Government and Critic Response

Despite these pleas, the federal government reduced the cap to 10% in 2024. The rationale was to prioritize job opportunities for Canadians and permanent residents while ensuring program integrity and fair treatment of foreign workers. Critics argue that some businesses may overly depend on lower-wage foreign labour, detracting from efforts to improve wages and working conditions locally. They propose that better pay, training, and scheduling could attract more domestic workers. Nevertheless, industry advocates maintain that even with competitive wages, certain regions continue to experience genuine labour shortages.

Implications for Foreign Workers

The ongoing debate significantly impacts current and prospective foreign workers. The number of available positions, ease of work permit renewals, and potential new pathways to permanent residency are all in flux. Many workers in Canada are calling for clearer regulations to help them plan their futures, be it for their families, careers, or long-term residency.

As Canada grapples with these complex issues, the conversation around temporary foreign workers remains pivotal in balancing economic needs with fair labour practices and immigration policies. The outcome will not only shape the food service industry but also influence broader discussions on immigration and labour in Canada.

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