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The recent lawsuit filed by nearly two dozen Quebec businesses against the federal government over changes to the Temporary Foreign Worker program exposes a troubling reliance on foreign labor at the expense of Canadian workers. These companies, concentrated in the Montéregie region near Montreal, are suing for $300 million, claiming that the abrupt tightening of rules last fall threatens their operations and could push some into insolvency. The heart of the issue is clear: these businesses built their models on easy access to temporary foreign workers, sidestepping the responsibility to invest in Canadian talent. Now, caught off guard by policy changes, they are scrambling to protect their bottom lines while deflecting blame onto the government. This report lays bare the facts, holds accountable those who have prioritized cheap foreign labor over Canadian workers, and serves as a stark warning to others that the era of exploiting such programs may come to an abrupt end.
The Temporary Foreign Worker program, designed as a last resort to fill labor shortages when qualified Canadians are unavailable, has been abused by businesses seeking to cut costs. In 2023, nearly 240,000 temporary foreign workers were approved, more than double the number from 2018, according to federal data. This surge, particularly in low wage sectors like food service, retail, and manufacturing, has coincided with a youth unemployment rate of 14 percent in April 2025, the highest in over a decade outside the pandemic period. Canadian workers, especially young people, are struggling to secure entry level jobs while businesses like those in this lawsuit lean on foreign workers to fill roles that could be filled locally with proper investment in wages and training. The federal government’s response, announced in August 2024 and effective September 26, 2024, capped the proportion of low wage temporary foreign workers at 10 percent of a company’s workforce and banned their hiring in high unemployment areas, except in critical sectors like agriculture and health care. These changes, while imperfect, aim to prioritize Canadian workers, a move long overdue.
Among the businesses named in the lawsuit, Durabac, a waste collection equipment manufacturer in Granby, Quebec, and Tremcar, a tank truck manufacturer in Saint Jean sur Richelieu, Quebec, stand out as examples of this troubling trend. Patrick Charbonneau, CEO of Durabac, has claimed his company invested $10 million in expansion, relying on the assumption that the Temporary Foreign Worker program would remain unchanged. Mélanie Dufresne, vice president at Tremcar, has similarly lamented the impact on her workforce, noting that 40 of their 400 employees are temporary foreign workers, with 20 set to lose their jobs next year due to the new restrictions. Both executives have positioned themselves as victims of a sudden policy shift, but their complaints ring hollow when viewed against their failure to prioritize Canadian workers. Durabac and Tremcar, like many others, have benefited from a system that allows them to hire workers from countries like Madagascar, Tunisia, and Cameroon, often at lower wages than what might attract local talent. Dufresne has even boasted about her foreign workers’ willingness to take night shifts, a subtle admission that these workers are often placed in less desirable roles that Canadians might fill if offered fair pay and conditions.
The citizenship status of these business owners is not explicitly detailed in public records, but there is no evidence to suggest that Charbonneau or Dufresne are not Canadian citizens or born in Canada. Their leadership roles in established Quebec based companies imply they are likely longstanding residents, if not native born Canadians, deeply embedded in the province’s business community. Regardless of their origins, their actions reflect a broader pattern among Canadian employers who have grown complacent, relying on a steady stream of temporary foreign workers rather than investing in the domestic workforce. This reliance has suppressed wages and stifled opportunities for Canadians, particularly young people and underrepresented groups like Indigenous persons and those with disabilities, whose unemployment rates remain disproportionately high at 7.7 percent and 65.1 percent employment rate, respectively, compared to the national average.
The lawsuit, led by Montreal based constitutional lawyer Frédéric Bérard, argues that the federal government’s policy reversal violated the “legitimate expectations” of these businesses and infringed on the Charter rights of five temporary foreign workers, including Ladurelle Tsemzang Donfack from Cameroon, who claim their ability to support their families is at risk. Bérard’s argument hinges on the lack of warning or consultation before the policy change, but this framing conveniently sidesteps the core issue: these businesses built their operations on a shaky foundation of exploiting foreign labor rather than fostering Canadian talent. Donfack, employed at Tremcar, has expressed anxiety over his uncertain future, a valid human concern, but the real accountability lies with employers who tied their business models to temporary work permits rather than sustainable hiring practices. The government’s decision to tighten the program, while disruptive for these workers, is a necessary correction to a system that has prioritized corporate profits over Canadian workers’ opportunities.
Critics of the Temporary Foreign Worker program, including economists like Christopher Worswick of Carleton University, have long argued that it suppresses wage growth by allowing businesses to bypass raising salaries to attract local workers. The Quebec government itself, under Premier François Legault, supported tightening the program to preserve social services and protect the French language, a move that aligns with broader calls to prioritize Canadian workers. Yet, businesses like Durabac and Tremcar have cried foul, claiming they cannot find enough native born welders or manual laborers despite offering wages as high as $25 per hour. This excuse falls flat when youth unemployment in Quebec and across Canada remains stubbornly high, and industries like manufacturing could address shortages by investing in training programs for local workers, including the 120,000 unemployed youth in Toronto alone in 2024. Instead, these companies have leaned on foreign workers, many from francophone countries, to fill gaps without addressing the root causes of their labor shortages.
The broader implications of this lawsuit extend beyond Quebec. Across Canada, businesses in sectors like food service and retail have increasingly turned to temporary foreign workers, with companies like Tim Hortons hiring 714 such workers in Ontario in 2023, up from just 58 in 2019. This trend has fueled competition for entry level jobs, leaving Canadian youth and newcomers struggling to gain a foothold. The federal government’s reforms, including a reduction in low wage worker permits and a planned cap of 82,000 annual admissions from 2025 to 2027, signal a shift toward accountability, but they do not go far enough. Employers must be held to a higher standard, compelled to invest in Canadian workers through better wages, training, and working conditions. The Migrant Workers Alliance for Change has criticized the restrictions for not addressing worker rights, but the real failure lies with businesses that have exploited the program’s loopholes, creating a cycle of dependency on vulnerable foreign labor.
This lawsuit should serve as a wake up call to Canadian businesses: the free ride of exploiting temporary foreign workers is not guaranteed. Companies that fail to prioritize Canadian workers risk being caught unprepared when policies shift, as they have now. The government’s reforms, while imperfect, reflect a growing recognition that Canadian workers, particularly youth and underrepresented groups, deserve priority in their own labor market. Businesses like Durabac and Tremcar, and leaders like Charbonneau and Dufresne, must face the consequences of their shortsighted reliance on foreign labor. They had the opportunity to invest in Canadian talent, to raise wages, and to build sustainable operations, but instead, they chose the path of least resistance. Now, as they scramble to sue the government, their complaints expose a deeper truth: their business models were built on exploiting a system that undervalued Canadian workers.
The lesson for other businesses is clear. Relying on temporary foreign workers to fill labor gaps may seem cost effective in the short term, but it comes with risks. Policy changes can disrupt operations overnight, and public sentiment, increasingly critical of programs that sideline Canadian workers, is shifting. Companies must pivot to hiring locally, investing in training, and offering competitive wages to attract the domestic workforce. Failure to do so not only undermines Canadian workers but also leaves businesses vulnerable to the whims of policy changes. The era of exploiting cheap foreign labor must end, and those who continue down this path deserve to be held accountable for prioritizing profits over the economic well being of Canadians.
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