Workers claim to be misled about employment, had wages cut by employer
A Canadian Tire store in Toronto is under investigation by both provincial and federal authorities following allegations of mistreatment and financial exploitation of employees hired under Ottawa’s Temporary Foreign Worker (TFW) Program, according to a report.
The investigation centers around the actions of Ezhil Natarajan, owner of the Etobicoke-based store. At least 13 employees resigned or were terminated in late 2023, alleging wage reductions, job duty changes, and threats of dismissal when they voiced concerns about their working conditions, reported The Globe and Mail.
Several former employees claim that their wages were arbitrarily cut and that they were forced to take on tasks unrelated to the roles they were hired for, according to the report.
Both Ontario's Ministry of Labour and the federal Employment and Social Development Canada (ESDC) are conducting an investigation.
Meanwhile, Natarajan has denied the allegations through his lawyer, Arthur Tarasuk, stating that he intends to contest the claims.
Canadian Tire told The Globe and Mail a statement expressing concern and indicating it is investigating the matter. The company, however, emphasized that individual stores are independently owned and operated, with each “dealer” responsible for their own human resources practices.
In September, Quebec's Superior Court gave the green light to the class-action lawsuit a Montreal-based workers' rights group filed against the federal government’s closed work permits rule under the TFW Program. The Montreal-based workers' rights group filed an application for a class-action case to ban closed work permits, which bind foreign workers to a specific employer, in September 2023.
Several workers, including Rowell Pailan, who came to Canada from the Philippines after working in Saudi Arabia, claim they were misled about the jobs they were hired for. Pailan, promised a supervisory role, instead found himself working as sales staff, with his wages and hours reduced over time.
"I was never introduced as a supervisor. I was told to work in the hardware department of the store as sales staff," Pailan said, adding that his hourly wage was reduced from $20 to $16.55 before he resigned in frustration.
Another worker from the Philippines, who was hired as a warehouse supervisor for $27 an hour, shared a similar experience, alleging that his responsibilities were downgraded to manual labor tasks, and his pay was cut to $21 an hour.
Workers charged over $10,000 for TFWP applications
According to The Globe and Mail, Natarajan worked with an Alberta-based immigration consultant, Allison Jones Consulting Services Inc., to hire some of the foreign workers, and that the consulting firm charged the workers more than $10,000 each to process their applications for the TFW program.
The consulting firm did not respond to requests for comments, according to The Globe and Mail’s report.
Previously, a number of groups spoke up about how immigrants looking to land employment in Canada are being asked to pay tens of thousands of dollars by employers who are abusing the TFW Program.
Since 2017, Canadian Tire stores across Canada have been authorized to hire at least 84 workers through the TFW program, The Globe and Mail reported, citing federal government data.
“But that figure does not reflect the real number because franchise owners can register their stores under business names other than ‘Canadian Tire.’ as Mr. Natarajan has. The company declined to disclose how much its franchisees use the TFW program,” according to the report.
Ottawa has made several changes to the TFW Program, and stakeholders have criticized some of the changes.
