Latest news with #ESDC
National Post
6 days ago
- Business
- National Post
Canadian government tells employees they may face job cuts as Mark Carney looks to trim spending
The Canadian government told employees they may face job losses, as Prime Minister Mark Carney searches for spending cuts to keep the budget deficit in check. Article content Top bureaucrats at Employment and Social Development Canada and other government departments sent emails to employees on Wednesday informing them of a broad review of how the government spends and what it does. 'Given the scope of requested spending reductions, adjustments to our workforce may be necessary,' said the memo, which was seen by Bloomberg News. Article content Article content Article content A separate memo from senior managers at Global Affairs Canada, which runs the country's diplomatic service, said budget reductions may equal C$1.1 billion ($804 million) by the 2028-2029 fiscal year. 'This review will require difficult decisions affecting our workforce,' it said. Article content Earlier this week, Finance Minister Francois-Philippe Champagne asked members of his cabinet to find billions of dollars in savings to help the government pay for major expenditures on defense, infrastructure and capital projects. Article content Article content ESDC has responsibility for an insurance plan for unemployed workers, labor laws and training, among other government programs. In the memo, the department's senior managers say they are drafting options to find potential savings of 15% by fiscal year 2028-29. Article content Article content 'Organizations are being asked to bring forward ambitious savings proposals to spend less on the day-to-day running of government by targeting programs and activities that are underperforming,' said the memo. Article content Article content In a statement Tuesday, the Public Service Alliance of Canada, a union, said planned spending reviews 'look and feel like austerity.' Article content During this year's election campaign, Carney pledged to spend less on federal operations so the government can invest more in housing and in projects that improve Canada's economy and productivity. Article content Some, including Parliamentary Budget Officer Yves Giroux, have questioned whether the government will be able to find enough savings to offset massive spending pledges for defense. Some forecasters now see the government running a budget deficit well above C$70 billion for the current fiscal year. The government's official forecast in December projected a C$42 billion shortfall. Article content Top bureaucrats at Indigenous Services Canada also told employees this week the expenditure review 'will involve difficult decisions that will impact our programs and activities, as well as our workforce.' Article content
Vancouver Sun
6 days ago
- Business
- Vancouver Sun
Canadian government tells employees they may face job cuts as Mark Carney looks to trim spending
The Canadian government told employees they may face job losses, as Prime Minister Mark Carney searches for spending cuts to keep the budget deficit in check. Top bureaucrats at Employment and Social Development Canada and other government departments sent emails to employees on Wednesday informing them of a broad review of how the government spends and what it does. 'Given the scope of requested spending reductions, adjustments to our workforce may be necessary,' said the memo, which was seen by Bloomberg News. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. The department, known in Ottawa by the acronym ESDC, employed more than 36,000 people in the fiscal year ended March 2024. A separate memo from senior managers at Global Affairs Canada, which runs the country's diplomatic service, said budget reductions may equal C$1.1 billion ($804 million) by the 2028-2029 fiscal year. 'This review will require difficult decisions affecting our workforce,' it said. Earlier this week, Finance Minister Francois-Philippe Champagne asked members of his cabinet to find billions of dollars in savings to help the government pay for major expenditures on defense, infrastructure and capital projects. ESDC has responsibility for an insurance plan for unemployed workers, labor laws and training, among other government programs. In the memo, the department's senior managers say they are drafting options to find potential savings of 15% by fiscal year 2028-29. 'Organizations are being asked to bring forward ambitious savings proposals to spend less on the day-to-day running of government by targeting programs and activities that are underperforming,' said the memo. In a statement Tuesday, the Public Service Alliance of Canada, a union, said planned spending reviews 'look and feel like austerity.' During this year's election campaign, Carney pledged to spend less on federal operations so the government can invest more in housing and in projects that improve Canada's economy and productivity. Some, including Parliamentary Budget Officer Yves Giroux, have questioned whether the government will be able to find enough savings to offset massive spending pledges for defense. Some forecasters now see the government running a budget deficit well above C$70 billion for the current fiscal year. The government's official forecast in December projected a C$42 billion shortfall. Top bureaucrats at Indigenous Services Canada also told employees this week the expenditure review 'will involve difficult decisions that will impact our programs and activities, as well as our workforce.' — With assistance from Mario Baker Ramirez, Mathieu Dion and Melissa Shin. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Economic Times
28-06-2025
- Business
- Economic Times
Canada hikes wage thresholds for Temporary Foreign Worker Program
Agencies Canada has increased the wage thresholds for employers hiring under the Temporary Foreign Worker Program (TFWP), a move that will impact new Labour Market Impact Assessment (LMIA) applications submitted from June 27, 2025, as per a CIC News report. Employment and Social Development Canada (ESDC) confirmed the revision affects nearly all provinces and territories, altering how foreign nationals qualify under either the high-wage or low-wage streams of the Temporary Foreign Worker Program is used by employers when no Canadian citizen or permanent resident is available to fill a job. The program's classification between high-wage and low-wage streams is determined by comparing offered wages against the median hourly wage of the province or territory. Wage thresholds revised across provinces The updated wage benchmarks will directly influence employer eligibility for LMIAs. For example, the threshold in Ontario rose from CAD 34.07 to CAD 36.00, while British Columbia saw an increase from CAD 34.62 to CAD 36.60. The threshold in Nunavut remained unchanged at CAD 42.00. Provinces such as Quebec, Alberta, and Nova Scotia also recorded moderate must apply under the high-wage stream if they offer wages at or above the new thresholds. Otherwise, they must proceed under the low-wage stream, which faces additional limitations. Employment and Social Development Canada (ESDC) reiterated that a moratorium remains in effect for LMIA applications under the low-wage stream in areas with unemployment rates at or above 6%. This policy, active since September 26, 2024, will continue until at least July 10, federal government has also restricted low-wage LMIA approvals based on the structure of an employer's workforce. Generally, low-wage positions must not exceed 10% of the total workforce at a given location. However, specific industries like construction (NAICS 23), food manufacturing (NAICS 311), hospitals (NAICS 622), and nursing care facilities (NAICS 623) are permitted a 20% cap. Moreover, ESDC confirmed that similar restrictions now apply to select caregiving roles under the National Occupation Classification (NOC) system. This includes roles such as registered nurses (NOC 31301) and home childcare providers (NOC 44100). 'ESDC and Immigration, Refugees and Citizenship Canada (IRCC) are reviewing the effects of including these in future measures,' the statement added. Policy changes reflect government's broader reforms The changes come amid increased scrutiny over the TFWP in 2024, when reports surfaced alleging worker exploitation and wage suppression. The federal government has since implemented several reforms: shortening LMIA validity to six months, cutting employment durations under the low-wage stream, capping new foreign worker admissions, and eliminating in-country job-supported work permit options for updates reflect a broader policy shift aiming to balance the country's labour market needs with concerns about temporary resident volumes and pressure on public services. (Join our ETNRI WhatsApp channel for all the latest updates) Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. The bike taxi dreams of Rapido, Uber, and Ola just got a jolt. But they're winning public favour Second only to L&T, but controversies may weaken this infra powerhouse's growth story Punit Goenka reloads Zee with Bullet and OTT focus. Can he beat mighty rivals? 3 critical hurdles in India's quest for rare earth independence HDB Financial may be cheaper than Bajaj Fin, but what about returns? Why Sebi must give up veto power over market infra institutions These large- and mid-cap stocks can give more than 23% return in 1 year, according to analysts Are short-term headwinds from China an opportunity? 8 auto stocks: Time to be contrarian? Buy, Sell or Hold: Motilal Oswal initiates coverage on Supreme Industries; UBS initiates coverage on PNB Housing
Yahoo
25-06-2025
- Business
- Yahoo
The $1B scam some say is driving Canada's trucking industry into crisis
The national voice of the trucking industry in Canada is renewing calls for the federal government to pump the brakes on what it says is a $1-billion scam it calls "Driver Inc." "We believe that in some parts of Canada at least a third of the companies and the drivers are participating in this, and it's hurting us twofold as a society," said Stephen Laskowski, president and CEO of the Canadian Trucking Alliance (CTA). "Those are taxes that aren't going into our [economy], and on the flip side of it, it's about a 30 per cent advantage in the marketplace." Laskowski described it as a tax evasion scheme where trucking companies purposely misclassify drivers as incorporated workers instead of employees to save money on payroll taxes. But he said those drivers also lose their labour rights including fair pay, overtime and vacation pay, as well as health and safety protections. In 2021, the government made it illegal for federally regulated employers to misclassify employees, and added penalties for non-compliance. In a statement to CBC, Employment and Social Development Canada (ESDC) said that prohibition was strengthened in 2024 by placing the burden on employers to prove a worker is not an employee. However, Laskowski said more needs to be done, identifying Driver Inc. as the biggest current threat to the industry — including the ongoing Canada-U.S. trade war. "We have worked and pleaded with governments to address it, and the reality is they are starting to, but nowhere near to the level that needs to be done. Nowhere near," he said. Companies target newcomers Driver Karanveer Singh agrees there's a lack of enforcement against companies that break the law. Singh came to Canada from India's northern Punjab state as an international student when he was 18 years old. "I'm trying to chase the Canadian dream," he said. But Singh's journey took a detour shortly after he got his commercial trucking licence. He said the first two companies he worked for misclassified him as an incorporated driver, and also never paid him. Singh was able to prove to the Canadian Labour Board that he had been misclassified and the companies were ordered to pay what he was owed. While he was able to collect from one of the companies, Singh said it's unlikely he'll ever see the nearly $40,000 owed by the second company. "Until the government enforces it, it is useless," he said, referring to the court order. "These companies, they know what they are doing…. Most of the time they will find new immigrants, new truck drivers to target because they are so easy to target because every new immigrant is desperate for a job." A difficult problem Part of the CTA's solution involves lifting a moratorium on assessing penalties for failing to complete the fees for service box of the T4A tax slip. Laskowski said that would help the CRA identify and audit companies that rely heavily on incorporated drivers. However, it could also further slow an already sluggish system, according to Ottawa tax lawyer Dean Blachford. "With penalties comes disputes and penalty relief requests that clog up the system even if they are for small amounts," he explained in an email to CBC. "Meanwhile, the companies that are pushing the limits the most with Driver's Inc. still might not comply with the T4A requirement and instead take further evasive means (such as using shell companies) to creditor proof themselves from having to pay the penalty if CRA ever identifies them." In a statement to CBC, the CRA said it's working toward lifting the moratorium before enforcement commences. It also said the agency is not aware of the analysis underlying Laskowski's claim that Driver Inc. has resulted in about $1 billion in lost tax revenue, and "therefore cannot comment." Driving down business The owner of Kriska Transportation Group in Prescott, Ont., is also urging the federal government to act, saying the Driver Inc. model is driving companies that do comply with tax regulations out of business. The unfairness makes owner Mark Seymour's blood pressure rise. "It's widely known, it's not a dirty little secret. It's out of control," he said. Seymour has been in the business more than four decades, taking over Kriska from his late father in 1994. "I have competed as many of us have for many years based on price and service where price should be established from the same ground rules as everyone," he said. "That's paying appropriate taxes, treating people as employees and in the manner that the government would expect." Ron and Francie Langevin own P.A. Langevin Transport in Carleton Place, Ont., and say they, too, worry about the future. "There's so much wrong with this industry right now," Ron Langevin said, adding he suspects the companies that operate under the Driver Inc. model are so focused on profits that they also let safety standards slip. "These issues are falling through the cracks, and the next time you're driving on a highway with a transport truck beside you I want you to look at it and I want you to wonder how safe am I, really," Francie Langevin said. Singh said in his experience, that assessment is true. He recalled being trained by a very inexperienced driver who got them into trouble at the Port Huron border crossing. "He hit the concrete wall over there at the border, and I was so surprised. Like, this is supposed to be my trainer and he just like damaged the truck," Singh said. On his next trip, Singh said he was asked to be the trainer. "They did not [tell] me a single thing and just gave me a new training driver for me to train," he said. "They want their stuff delivered, they want their job done. "I think when these companies are allowed to operate, Canadians are not safe," he said. ESDC said it is taking action, recently entering into an information-sharing agreement with the CRA to help with enforcement and compliance. It also pointed to a dedicated team of inspectors focused exclusively on the road transportation industry across Canada. Since 2023, ESDC said the team has conducted about 540 inspections and held 320 education sessions across the country.
CBC
25-06-2025
- Business
- CBC
The $1B scam some say is driving Canada's trucking industry into crisis
The national voice of the trucking industry in Canada is renewing calls for the federal government to pump the brakes on what it says is a $1-billion scam it calls "Driver Inc." "We believe that in some parts of Canada at least a third of the companies and the drivers are participating in this, and it's hurting us twofold as a society," said Stephen Laskowski, president and CEO of the Canadian Trucking Alliance (CTA). "Those are taxes that aren't going into our [economy], and on the flip side of it, it's about a 30 per cent advantage in the marketplace." Laskowski described it as a tax evasion scheme where trucking companies purposely misclassify drivers as incorporated workers instead of employees to save money on payroll taxes. But he said those drivers also lose their labour rights including fair pay, overtime and vacation pay, as well as health and safety protections. In 2021, the government made it illegal for federally regulated employers to misclassify employees, and added penalties for non-compliance. In a statement to CBC, Employment and Social Development Canada (ESDC) said that prohibition was strengthened in 2024 by placing the burden on employers to prove a worker is not an employee. However, Laskowski said more needs to be done, identifying Driver Inc. as the biggest current threat to the industry — including the ongoing Canada-U.S. trade war. "We have worked and pleaded with governments to address it, and the reality is they are starting to, but nowhere near to the level that needs to be done. Nowhere near," he said. Companies target newcomers Driver Karanveer Singh agrees there's a lack of enforcement against companies that break the law. Singh came to Canada from India's northern Punjab state as an international student when he was 18 years old. "I'm trying to chase the Canadian dream," he said. But Singh's journey took a detour shortly after he got his commercial trucking licence. He said the first two companies he worked for misclassified him as an incorporated driver, and also never paid him. Singh was able to prove to the Canadian Labour Board that he had been misclassified and the companies were ordered to pay what he was owed. While he was able to collect from one of the companies, Singh said it's unlikely he'll ever see the nearly $40,000 owed by the second company. "Until the government enforces it, it is useless," he said, referring to the court order. "These companies, they know what they are doing…. Most of the time they will find new immigrants, new truck drivers to target because they are so easy to target because every new immigrant is desperate for a job." A difficult problem Part of the CTA's solution involves lifting a moratorium on assessing penalties for failing to complete the fees for service box of the T4A tax slip. Laskowski said that would help the CRA identify and audit companies that rely heavily on incorporated drivers. However, it could also further slow an already sluggish system, according to Ottawa tax lawyer Dean Blachford. "With penalties comes disputes and penalty relief requests that clog up the system even if they are for small amounts," he explained in an email to CBC. "Meanwhile, the companies that are pushing the limits the most with Driver's Inc. still might not comply with the T4A requirement and instead take further evasive means (such as using shell companies) to creditor proof themselves from having to pay the penalty if CRA ever identifies them." In a statement to CBC, the CRA said it's working toward lifting the moratorium before enforcement commences. It also said the agency is not aware of the analysis underlying Laskowski's claim that Driver Inc. has resulted in about $1 billion in lost tax revenue, and "therefore cannot comment." Driving down business The owner of Kriska Transportation Group in Prescott, Ont., is also urging the federal government to act, saying the Driver Inc. model is driving companies that do comply with tax regulations out of business. The unfairness makes owner Mark Seymour's blood pressure rise. "It's widely known, it's not a dirty little secret. It's out of control," he said. Seymour has been in the business more than four decades, taking over Kriska from his late father in 1994. "I have competed as many of us have for many years based on price and service where price should be established from the same ground rules as everyone," he said. "That's paying appropriate taxes, treating people as employees and in the manner that the government would expect." Ron and Francie Langevin own P.A. Langevin Transport in Carleton Place, Ont., and say they, too, worry about the future. "There's so much wrong with this industry right now," Ron Langevin said, adding he suspects the companies that operate under the Driver Inc. model are so focused on profits that they also let safety standards slip. "These issues are falling through the cracks, and the next time you're driving on a highway with a transport truck beside you I want you to look at it and I want you to wonder how safe am I, really," Francie Langevin said. Singh said in his experience, that assessment is true. He recalled being trained by a very inexperienced driver who got them into trouble at the Port Huron border crossing. "He hit the concrete wall over there at the border, and I was so surprised. Like, this is supposed to be my trainer and he just like damaged the truck," Singh said. On his next trip, Singh said he was asked to be the trainer. "They did not [tell] me a single thing and just gave me a new training driver for me to train," he said. "They want their stuff delivered, they want their job done. "I think when these companies are allowed to operate, Canadians are not safe," he said. ESDC said it is taking action, recently entering into an information-sharing agreement with the CRA to help with enforcement and compliance. It also pointed to a dedicated team of inspectors focused exclusively on the road transportation industry across Canada. Since 2023, ESDC said the team has conducted about 540 inspections and held 320 education sessions across the country.
