New temporary foreign worker limits; Cineplex appeals fine: CBC’s Marketplace cheat sheet

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Businesses face new limits on temporary foreign worker program

Starting today, employers in Canada will face new restrictions on their hiring of low-wage temporary foreign workers — a policy shift the federal government says will push businesses to make a greater effort to hire workers already based in Canada.

Under the new restrictions:

• Employers will be limited to hiring 10 per cent of their workforce through the program’s low-wage stream.
• Employers will be unable to hire through this program if they are in census metropolitan areas with unemployment rates of more than six per cent. 
• Contracts for low-wage positions will generally be limited to one year.

There are some exceptions to the above rules, such as for employers in health care and construction.

The federal government is aiming to rein in the temporary foreign worker program after it loosened hiring rules in the wake of the COVID-19 pandemic. In recent years, the low-wage stream has seen particular growth, with the number of positions approved through this stream nearly quadrupling from 21,394 in 2018 to 83,654 in 2023.

The program’s low-wage stream is for positions whose wages are below the territorial or provincial median hourly wage.

“I think these changes make sense,” said Christopher Worswick, professor and chair of the economics department at Carleton University in Ottawa. 

There’s concern among academic economists that the temporary foreign worker program suppresses wage growth. Worswick said the program gives businesses the option of looking abroad for temporary staff instead of raising wages to attract local employees. 

While Worswick said he agrees with these new restrictions, he thinks Ottawa could go further.

“I actually think we should probably be phasing this program out as soon as possible.” 

Instead, he said, the government should prioritize high-skilled, permanent immigration and let businesses find staff from a pool of citizens and immigrants. Read more

Cineplex says it will appeal $38.9M fine over $1.50 online booking fee

Cineplex Inc. has been ordered to pay a record $38.9-million fine by the Competition Tribunal for deceptive marketing practices — but the ruling doesn’t stop the theatre owner from continuing to charge the online booking fee that sparked the case.

The tribunal issued the decision late Monday, siding with the Competition Bureau in a case stretching back to May 2023. That was when the watchdog accused Cineplex of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online.

“The consumer is deceived or led astray by the contradictory and incomplete information on Cineplex’s tickets page, which obfuscates the existence and quantum of the online booking fee,” the tribunal said in a two-page brief outlining its decision.

Cineplex began charging the $1.50 online booking fee in June 2022 to many customers not enrolled in its CineClub subscription and Scene Plus loyalty programs, who saw the fee waived or dropped to $1, respectively. 

The bureau alleged the fee constituted “drip pricing,” a practice when customers are drawn into a purchase without full disclosure of the final cost.

Cineplex has vehemently denied the accusations from the beginning

In the wake of the tribunal’s ruling on Monday, Cineplex said in a statement it was “shocked” by the decision, adding that the online fee is “presented on our website and app in a clear and prominent manner.” Read more

Couple on the hook for over $500K say 4-year-old Ontario home is a teardown, so they’re suing the builder

Their house is four years old, but a Fort Erie, Ont., couple say it was so badly constructed that they have no choice but to spend hundreds of thousands of dollars to tear it down. 

“I can’t stress how much our life is ruined, literally ruined, right now,” Carolynn Mayers, 53, told CBC Hamilton. 

“Every day we have to look at how hard we worked to get nothing.” 

Mayers and her husband, James Durban, 51, sat in the bungalow’s open concept living room next to a tidy kitchen, where they’d envisioned soon retiring. She works in sales and he’s a truck driver. 

But those plans are on hold as they shoulder bills for lawyers and engineering specialists on top of their mortgage and day-to-day expenses.

“This is a situation I wouldn’t want anybody to go through,” Durban said. 

They purchased the house in July 2021 from the original buyer, a year after it had been built as part of a 100-home subdivision by Marina Homes.

But after dealing with a host of problems, from leaking windows and roof to extensive water damage and persistent mould, they said they soon discovered an even bigger issue. 

The foundation is not strong enough to support the house, an engineering firm hired by the couple determined earlier this year. 

“It is recommended that the building be completely demolished,” said the report seen by CBC Hamilton. 

Mayers and Durban said they successfully claimed close to the maximum amount of coverage possible through Tarion, a non-profit organization that administers Ontario’s new home warranty program.

The fixed, maximum amount, based on when the house was purchased by the first owner, is $300,000, said Tarion spokesperson Andrew Donnachie. 

“We agree that the amount may not be sufficient to entirely remove a foundation, demolish a home and rebuild the home, however, based on our data, that is an exceedingly rare situation,” Donnachie said.

The couple said it isn’t enough money to tear down and rebuild their house, and they weren’t able to reach an agreement with Marina Homes.

Jason Mangano, lawyer for Marina Homes, said in a statement the builder’s top priorities are safety and quality, and it is “actively working to try to find a satisfactory resolution.”

“They have strict protocols for building code compliance and work closely with engineers and inspectors to ensure that all homes constructed meet or exceed these standards,” he said. 

All defendants deny responsibility and the allegations have not been proven in court. Read more

What else is going on?

Trump’s tariff plan would shave almost a half-point off Canada’s economy, says U.S. forecast
Spoiler alert: It would hurt Americans, too, say analysts from Washington think-tank

Homeowners will no longer need to do stress test when switching mortgage providers
Decision aimed at correcting imbalance between insured, uninsured homeowners at time of mortgage renewal

Meta unveils cheaper VR headset, AI updates and a prototype for AR glasses
In the company’s annual developer conference, CEO Mark Zuckerberg teased augmented reality glasses

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