Supply-Build Canada Endorses Call to Reform Canada’s Temporary Foreign Worker System

In coordination with the Canada Employment Insurance Commission and the Commissioner for Employers, Supply-Build Canada has joined a coalition of major employer associations that released a policy paper in August 2025 calling for a Canadian International Workforce Program (CIWP) to replace the outdated Temporary Foreign Worker Program (TFWP). The report outlines the need to fix Canada's current temporary foreign worker system, restore confidence in Canada's immigration system, and highlight the importance of temporary foreign workers. Within the building materials industry, manufacturers, distributors, and retailers depend on foreign workers (e.g., plant and mill operators, warehouse personnel, commercial drivers, and yard workers) to help supply materials to the construction sector.

Why did Supply-Build Canada Sign the Policy Paper?

Almost every industry in Canada is facing a labour shortage, and the building materials industry is no exception. Canada's population is aging, and the domestic workforce is shrinking. By 2028, our industry is projected to lose 20% of its workforce to retirement, without a hiring rate sufficient to offset that loss. A labour shortage in the building materials industry means a slowdown in infrastructure and homebuilding across Canada. Building materials are the foundation of the construction sector. Without them, infrastructure and housing cannot be built.

Over the past few months, Supply-Build Canada has heard from its members that the TFWP is ineffective and complex to navigate. Recent federal policy changes to scale back the TFWP have also placed a burden on employers trying to reduce the labour shortage in the building materials industry. These changes have increased Labour Market Impact Assessment (LMIA) processing times, which now exceed 80 business days; work permits can take an additional 20 weeks; and the TFWP workforce cap was cut from 20% to 10%, further limiting labour access for businesses.

A common misconception is that temporary foreign workers displace Canadian workers or compete with youth for jobs. In reality, employers can access the program only after demonstrating that no Canadian worker is available or willing to fill the position.

What the Policy Paper Recommends?

To improve the current temporary worker system, the recommended CIWP would: extend LMIA work durations to five years; restore the 20% workforce cap; establish a clearer pathway to permanent residency through a points-based system that rewards Canadian work history, language proficiency, rural employment, and employer support; and expand programs that address specific regional and sectoral needs. Overall, the recommendations would provide employers with the workforce stability needed to keep pace with Canada's housing and infrastructure demands.

To view the policy paper, please click here