By William Crooks
Local Journalism Initiative
Manufacturers across the Eastern Townships are sounding the alarm over federal policy changes they say could devastate the region’s economy if temporary foreign workers (TFWs) are forced to leave.
According to data gathered by Manufacturiers et Exportateurs du Québec (MEQ), 807 TFWs currently make up nearly one-third of the workforce across 35 companies in Estrie and Montérégie. Employers say they are running out of time to secure a federal commitment to allow these essential employees to stay.
“It’s the eleventh hour,” said Alain Ouzilleau, president of kitchen cabinet manufacturer Cubico&co in the Townships. “Two-thirds of our foreign workers will have to leave next year if the government doesn’t change its mind. It’s very important that something is done very quickly.”
Ouzilleau said 75 of his company’s workers are foreign nationals, and that Cubico&co, like many local manufacturers, has already invested millions in automation to compensate for an ongoing labour shortage. But the nature of their work—highly customized cabinetry—remains labour-intensive. “What we could do with automation has been done,” he said. “If we lose 50 employees that cannot be replaced, we’re talking over $20 million less in sales. It’s major. It’s really significant.”
MEQ echoed that warning in a statement released July 21, urging Ottawa to adopt a “grandfather clause” to allow current TFWs to remain employed in the regions where they are already integrated.
“If nothing is done in July, the situation could quickly deteriorate for manufacturers who may lose a workforce essential to their operations,” MEQ stated. While Quebec’s provincial government has expressed support for such a clause, responsibility for the TFW Program falls under federal jurisdiction—specifically Employment Minister Patty Hajdu.
The federal government announced changes in fall 2023 that effectively reduce the number of TFWs businesses can employ. For some companies, the decrease amounts to 10 fewer foreign workers per site—posing a threat not only to operations, but to the wider regional economy.
“The public will suffer from this, not just manufacturing,” Ouzilleau warned. “These people are buying groceries, spending in restaurants, paying taxes. There are a lot of secondary industries that will be affected.”
The MEQ survey of companies in Estrie and Montérégie estimates the economic fallout if TFWs are lost:
- Over $171 million in lost annual revenues
- More than $20 million in cancelled investments
- An estimated $16 million in lost annual tax revenue to governments
Impacts are expected to intensify between now and March 2026, with January marked as the peak month for anticipated labour shortfalls, according to a related release. The most affected job types include welders, machinists, CNC operators, metal processing workers, and industrial painters. Surveyed employers said that 97 per cent of them offer francisation programs and that many TFWs are well integrated into local communities.
“People need to understand,” Ouzilleau said, “these are fully vetted individuals who are contributing to our society, paying taxes, learning French.”
He added that while Ottawa negotiates trade terms with the United States, it controls immigration policy and needs to act now to protect Canadian industry. “We didn’t need that fight [with our own government] right now,” he said. “The government needs to at least grandfather what we have.”
MEQ’s broader recommendations to reform the TFW Program include prioritizing manufacturers in the application process, adapting salary thresholds regionally, raising the TFW cap in low-unemployment regions to 20 per cent, and exempting simplified permit streams from the TFW quota calculations.
Local MP Dandurand responds
Compton-Stanstead MP Marianne Dandurand acknowledged the urgency of the concerns and said she has been in contact with impacted businesses in her riding. “I understand the situation in which they are,” she said July 23. “I’m very sensitive to what they are going through.”
Dandurand emphasized the federal government’s efforts to strike a balance between meeting the country’s economic needs and maintaining its capacity to properly welcome newcomers. “Welcoming newcomers has been an issue… So this is where there’s been change at the federal level,” she said.
She noted that Quebec, which has jurisdictional authority in some immigration matters, had previously asked the federal government to reduce immigration levels. However, she added, “We know that they are currently asking for an opening in the Temporary Foreign Workers Program.”
While she could not provide a firm timeline, Dandurand confirmed that discussions are ongoing with both provincial representatives and the federal ministers responsible. “They understand the situation that the industry is in, and I say in regions, because the situation is different in regions than in urban centres,” she said.
Speaking as chair of the federal rural caucus, Dandurand said this challenge is being felt across the country. “This is a situation… from coast to coast to coast. And I know it’s a cliché, but… we hear about how essential those workers are everywhere.”
Although she could not promise specific policy changes, Dandurand said she is committed to ensuring that the government understands the regional impact. “I hope that we’re going to be able to do something,” she said, “because the impact of immigration is different in regions than in urban centres.”