How Do Temporary Foreign Workers in The Agriculture Sector Impact British Columbia’s Agriculture

How Do Temporary Foreign Workers in The Agriculture Sector Impact British Columbia’s Agriculture

1. Introduction
   • Background

Agriculture forms an important part of the Canadian economy. Over the years, the sector has continued to grow, enabling the country to have among the highest exports, relative to the country’s production. However, Canada’s agriculture sector continues to experience numerous challenges. For instance, in 2017, more than 16,500 jobs in this sector were unfulfilled (Canadian Agricultural Human Resources Council [CAHRC]). These unfulfilled jobs cost 4.7% of the product sales or close to $2.9billion in lost revenues (CAHRC). Persistent shortages in labor have increased the employer’s reliance on foreign workers. Notably, in 2019,  foreign workers accounted for close to 17 % of Canada’s agriculture sector’s workforce (CAHRC). In 2018, the province of British Columbia (BC) approved approximately 16,890 temporary migrant agricultural positions, under the Seasonal Agricultural Workers Program (SAWP), and Temporary Foreign Worker Program Agricultural (TFWP Ag Stream) streams (Caxaj and Cohen). Every year, thousands of workers are placed in the BC’s Agricultural sector, with Jamaican and Mexican workers accounting for 80% and 30%, respectively (Caxaj and Cohen). While agricultural labor issues are currently notable, they are set to increase over the next decade. Projections indicate that more than 112,200 employees are expected to retire between 2018 and 2029, shrinking the agriculture workforce by close to 67% (CAHRC). A shrinking workforce will pile significant pressure on British Columbia’s agricultural sector at a time when the segment needs more workers to achieve its production goals.

• Significance

With the labor gap in Canada’s agriculture sector set to reach 123,000 people or roughly one-third of the country’s agriculture-related labor force in 2029, BC agricultural sector is set to have a sizeable labor gap. Thanks to a strong demand outlook and an older-than-average Canadian workforce, temporary foreign workers will have a profound impact on the national and provincial agricultural statistics. In particular, the increasing labor gap in BC’s agricultural sector is set to be significant and will introduce noteworthy losses in revenue and hinder the sector’s growth. BC’s agricultural sector will increasingly rely on temporary foreign workers to avoid the negative effects of an increasing labor gap. This will impact the sector in numerous ways. Therefore, it is important to conduct a study that will highlight various impacts of temporary foreign workers in BC.

• Purpose of The Study

The purpose of this research is to analyze the relationship between the number of temporary foreign workers and harvesting trends in BC. The study will seek to determine whether there is a positive correlation between temporary foreign workers and harvesting trends in BC. The study will also explore the impacts of certain events on the relationship between the number of temporary foreign workers and the harvest season.

• Research Questions

1. Who are the Temporary Foreign Workers, and what are their nationalities?
2. What policies have been established to ensure accountability in the inflow of temporary foreign workers?
3. What information and trends, regarding temporary workers and food supply, is notable within BC’s agricultural sector?
4. What current practices and research towards resolving challenges, and increasing food supply are associated with temporary foreign workers in BC’s agricultural sector?
5. What events influence the contribution of temporary foreign workers to the food supply from BC’s agricultural sector?
6. What gaps exist in the impacts of temporary foreign workers on the food supply in BC’s agricultural sector?

• Research hypotheses

This research is designed to test the following statements.

• Temporary foreign workers originate from a variety of nationalities, with Mexico, Guatemala, Jamaica, India, and the Philippines being in the lead.
• The temporary foreign worker protection act [SBC 2018] chapter 45 ensures accountability in the inflow of temporary foreign workers.
• Unfilled vacancies due to increased labor gaps cost BC’s agricultural sector through production delays, lost sales, production losses, overtime costs, and delayed or suspended expansion programs.
• The introduction of the Seasonal Agricultural Worker Program (SAWP) and regular inspection of farm compliance with set standards and required improvements and adoption of piece-rate pay are the approaches adopted in resolving challenges and increasing benefits associated with temporary foreign workers in BC’s agricultural sector.
• Social, political, regional, and economic issues influence the temporary foreign worker’s contribution to the food supply in BC.
• There exist gaps in the effects of permitting employers and unions to participate in designing migrant worker programs and monitoring the recruitment of temporary foreign workers for BC’s agricultural sector.

2.0.  Literature Review

Today, many parts of Canada’s food supply chain experience labor-related difficulties. According to MacRae, close to 2.2 million jobs are linked to Canada’s food system, and these jobs exclude all positions linked to transportation, energy, and bio-products involved in the movement and processing of agricultural produce. Three-quarters of the previously mentioned jobs are in the foodservice, retail/wholesale, and agricultural inputs categories. Only 27% of these jobs, as mentioned earlier, are in the production and processing category (MacRae). Over the next decade, employment is projected to rise slightly in the retail and foodservice category, remain flat in the beverage and food production category, and decline significantly in the fisheries and agriculture production categories (MacRae). Also, the agricultural sector will continue to compete with other industries for talent, given that some competing industries are capable of offering higher wages, involving fewer tasking chores, offering full employment, and operating from urban centers. Noting that a significant portion of BC’s agricultural sector operates from rural and semi-urban areas, there is a likelihood that competition from other industries may adversely affect labor gas in the sector. Coupled with existing labor gaps and the challenges associated with temporary foreign workers, food supply in BC will experience some negative impacts that relate to the lack of adequate labor.

Moreover, study findings have shown that temporary foreign workers impact food supply in DC in a variety of ways. Aleksynska and Berg explain that temporary foreign workers impact food supply in agriculture by introducing a convenient numerical flexibility aspect in the production cycle (3). BC’s agricultural sector participates in the competitive labor market since it faces seasonality in the demand and supply of different products. For instance, different fruits have different maturity seasons; hence they require the sector to employ more staff members on a need-by-need basis. Since labor is a variable cost in BC’s agricultural system, the availability of temporary foreign workers enables the agriculture sector to employ staff that is necessary based on their production cycle. Despite the seasonality of various production cycles, BC’s agricultural sector needs a balance of stability and flexibility in its labor force (Aleksynska and Berg 3). In the context of temporary foreign labor workers, the availability of skilled but temporary workers ensures that BC’s agricultural firms can find placements for highly skilled yet seasonal jobs. Effectively, the availability of temporary foreign workers ensures that farms in DC’s agrarian sector can ensure continuity in DC’s food production while managing costs to maximize profits.

Additionally, temporary foreign workers impact food supply by reducing firing costs associated with ending temporary contracts, as compared to the more-expensive permanent contracts. Aleksynska and Berg note that the increased use of temporary employment over the past three decades is hinged to the significantly low costs associated with terminating temporary employee contracts as opposed to permanent contracts (4). More elaborately, termination of permanent employee’s contracts, at the employer’s initiative, introduces costs like compensation for unfair termination, litigation costs should the employee sue, severance packages, and costs associated with notifying employees and termination procedures. In the context of BC’s agriculture sector, the availability of temporary foreign workers cuts costs associated with hiring and firing seasonal employees for different parts of the province’s production cycle. Given that labor is a variable cost within agriculture’s food sector, reduction of extreme variability in BC’s agricultural sector increases efficiency and maximizes returns. While increasing efficiency and maximizing returns in BC’s agricultural sector, the reliance on temporary workers ensures that BC’s protection of permanent employee’s standards remains intact. The effects of temporary foreign workers are a highly efficient and cost-effective agricultural sector within BC and high working standards for permanent employees in the province.

Temporary foreign workers hurt innovation and the adoption of technology within the agricultural sector. According to Smirnykh, short-term employees have negative impacts on innovation and the adoption of technology within forms (61). The previous argument is based on the premise that companies are not interested in training and development for temporary employees. Therefore, temporary employees are easy to hire, and fire, and have a high turnover, thus minimizing chances of learning and knowledge management (Kleinknecht 2). The previously mentioned phenomenon relates to the low return on investment for firm-sponsored training for temporary employees and a weak performance and creative accumulation innovation model (Kleinknecht 2). In the context of BC’s agricultural sector, temporary foreign workers can introduce adverse effects on the sector’s innovation and technology adoption. Notably, the seasonality of BC’s agricultural sector makes it unattractive for firm-sponsored employee training and development. The phenomenon limits the likelihood of temporary foreign workers contributing to the growth and development of technology in BC’s agricultural sector. Effectively, temporary foreign workers adversely affect technological advancement in BC’s agricultural sector; however, the effects are dependent on the extent of development among permanent employees. These trends can harm food supply within BC’s agricultural sector.

To the contrary, temporary foreign employees are an essential element in the successful adoption of agriculture technology. Interestingly, technology and innovation simplify tasks, increasing the likelihood that less-skilled employees can perform these tasks (Aleksynska 5). The previously mentioned aspect of technology enhances the ability of different firms to bring in temporary workers on short notice without introducing significant training and development costs. Such aspects limit an organization’s need to hire permanent employees for highly simplified activities. In regards to BC’s agricultural sector, temporary foreign employees can support the use of agricultural technology without increasing production costs for different entities. In effect, temporary workers ensure that agricultural organizations maximize technology-related efficiency, thus increasing BC’s food supply.

3.0. Trend Analysis and Implications of BC’s Food Supply

Figure 1: An older than average workforce will cause above-average retirements. From “How Labor Challenges Will Shape the Future of Agriculture: Agriculture Forecast To 2029” by the CAHRC.

Key trends within Canada will have significant impacts on the country’s agricultural sector. Notably, arising number of retirees will adversely affect the sector’s labor supply and increase existing labor gaps. Since more than 2.2 million jobs are linked to Canada’s food system, increased labor gaps will adversely affect the country (MacRae). Given that Canada has an older than average labor force, as shown in Figure 1, more than 17% of workers in the agricultural sector are over 65 years of age compared to only 4% in the labor force. Irrespective of agriculture sector workers retiring at an older age, projections indicate that more than 112,200 agriculture sector employees, or 37% of the current workforce, are expected to retire in the period between 2018 and 2029 (MacRae). In BC’s context, an older than average labor force will introduce adverse effects associated with increased labor gaps. In turn, this situation will adversely affect BC’s food supply since replacing a significant portion of the agricultural labor-force may pose considerable challenges to the province’s food supply. However, policies that support temporary foreign employees may help mitigate the adverse effects of wide labor gaps. Thus, the availability of a diverse pool of temporary foreign workers will enhance BC’s ability to reach its food production targets, thus averting food shortages.

.

Figure 2: Total share of the labor gap for different occupations by 2029.From “How Labor Challenges Will Shape the Future of Agriculture: Agriculture Forecast To 2029” by the CAHRC.

Figure 3: Share of the 2017 workforce, by province, that is expected to retire by 2029. From “How Labor Challenges Will Shape the Future of Agriculture: Agriculture Forecast To 2029” by the CAHRC.

Figure 4: Employer perceptions on the best way to fill labor shortages, on a scale of 1 to 5. From “How Labor Challenges Will Shape the Future of Agriculture: Agriculture Forecast To 2029” by the CAHRC.

Notable differences in occupational makeup and the composition of their workforce will have significant impacts on agricultural productivity in the next decade. According to CAHRC, the grain, oilseed, and beef sectors are characterized by a significantly high portion of agricultural managers that other industries. Figure 2 shows the total proportion of the labor gap for different occupations by 2029. Interestingly, BC Columbia comprises 1,000 producers in the grains and oilseeds sector, and a beef heard that is roughly 5% of Canada’s beef herd (Government of British Columbia, “Beef – Province of British Columbia”; Government of British Columbia, “Grains & Oilseeds – Province of British Columbia”). Noting that close to 25% of the farm managers in the grain, oilseed, and beef sectors are aged above 65 years, these sectors will experience considerably high retirement rates due to their respective occupational makeups (CAHRC). Figure 2 shows projections for expected retirements in 2029, based on agricultural occupation. Alarmingly, Figure 3 shows that close to 33% of BC’s agriculture labor force is expected to retire by 2029. Since temporary foreign employees may not be able to fill high ranking agricultural jobs and the magnitude of retirements by 2029 may not be filled effectively through temporary foreign employee programs, the resultant increased employment gaps will adversely affect food supply in BC the next decade.

Policies play an important role in advancing the acceptability of temporary foreign employees within the Canadian agricultural sector. According to the CAHRC, a 2014 survey showed that developing educational resources, enhancing worker knowledge and skills, decreasing government regulations, increasing worker flexibility on various worker activities, offering culturally sensitive training, and offering community incentives are important policies that should be introduced (CAHRC). Figure 4 highlights employer preferences for different policies. Since these policies address some challenges that have contributed to a rising labor gap in BC, the development and implementation of these policies will enhance temporary foreign employee’s contribution to BC’s food supply (CAHRC). With proper implementation and follow-up, policies can reverse 2029 projections for the expected shortage of labor.

4.0. Event Analysis

Canada’s agriculture industry plays a significant role in ensuring food safety within the country’s borders. According to Statistics Canada, the primary agricultural sector’s farm cash receipts amounted to $62.4billion is 2018, with $8.4 billion being the horticultural industry’s contribution. While Canada’s agricultural sector is strong, its ability to sustain its food security is vulnerable due to seasonal production. The sector’s seasonality requires seasonal labor at specific periods of the year—particularly during spring, summer, and fall (Statistics Canada). With the COVID-19 pandemic, BC’s reliance on the Temporary Foreign Worker Program and the Seasonal Agricultural Workers Program has exposed the sector’s vulnerability. Increased border restrictions and challenges in accessing required labor have put BC’s food supply at risk.

Temporary foreign workers are critical to BC’s agricultural sector and have steadily increased over the past decade. According to Statistics Canada, approximately 9,514 jobs in BC’s agriculture sector were filled by temporary foreign workers in 2018. This accounted for 21.4 percent of jobs filled by temporary foreign workers among all employees. Based on the previously mentioned statistics and increased restriction due to the COVID-19, the pandemic will have significant and adverse impacts on BC’s food supply in 2020.

5.0. Theoretical Framework

Figure 5 shows the conceptual framework, highlighting variables that impact research questions and how they influence the aspects of the study objective.

Figure 5: Conceptual Framework

6.0. Methodology

This section highlights various methods that will be used to study the relationship between temporary foreign workers and harvesting trends in BC. Therefore, the study will help determine whether there is a positive correlation between the two factors.

6.1. Study design

The current study will adopt a descriptive study design, which is preferred for several advantages. It provides an in-depth view of the relationship between the number of temporary foreign workers and harvesting trends in BC; the study can be used to identify existing relationships that have not been known before. It can also be used to identify cause and effect relationships between temporary foreign workers and harvesting trends in BC. Nonetheless, caution will be taken to prevent the effects of weaknesses associated with a descriptive study design. Notably, caution will be taken to avoid the effects of reactivity to a descriptive study. People often change their behavior when they are being studied, and participants may offer responses that are in line with the employment norms in BC’s agriculture. This conduct may adversely affect the study.

6.2. Study Location

The study will be conducted in the province of BC. Since the study seeks to understand the implications of a relationship between the number of temporary foreign workers and harvesting trends, selecting participants from BC will help explore whether there is a positive correlation between the two variables.

6.3. Sampling Criteria

The study will adopt a systemic random sampling approach to select the preferred respondents. The participants will be elected from a fixed interval that was previously established from a ranked list of participants (Martínez-Mesa et al.). This approach will be selected for the study due to several benefits. These include the ease to execute, the method provides the researcher with control and a sense of process, it eliminates clustered selection and its effects, and there is a low-risk factor that the study findings will be contaminated. Nonetheless, the researcher will be cautious to avoid the effects of weakness, such as the likelihood of data manipulation and unnatural level of randomness among participants. To add, this approach will involve seven stages, which include defining the population, choosing suitable sample size, listing the population of possible participants in BC’s agriculture, assigning numbers to each case, calculating the appropriate sampling fraction, using a random number table to select the first participant, and selecting the entire sample.

6.4. Study Instruments

The research will use open-ended surveys in the study. This method facilitates the collection of a variety of answers and provides qualitative data. The survey will help the researcher collect more details on the number of employees and their impacts on harvesting trends, and increasingly expose how respondents think regarding their contribution to BC’s agriculture. However, the researcher will be cautious to avert the effects of highly opinionated and subjective responses, and the long duration it takes to complete open-ended questionnaires.

6.5. Data Collection

The study will use open-ended surveys to collect data from the participants. The respondent’s views will be recorded in the surveys, which will be collected for analysis. The use of surveys will help the researcher explore important aspects that relate to the numbers of temporary foreign employees and harvesting trends within BC.

6.6. Data Analysis and Interpretation

The researcher will use the Statistical Package for Social Sciences (SPSS) to analyze the data and identify existing trends in the participant’s responses. Using the latest version of SPSS, the researcher will utilize the modeler program, which will make it possible to create and validate predictive models, several statistical functions, and use a strong text analytics system for survey programs. Also, the SPSS software will help the researcher create important visualizations.

6.7. Ethical Considerations

The researcher will be watchful to avoid issues that relate to contravening important ethical considerations. Examples include publishing the results to ensure openness, ensuring objectivity in the study to avoid biases, and ensuring confidentiality and the protection of participants to avoid violating their human rights. Finally, the study will seek permission from relevant organizations to prevent legal issues that relate to violation of laws and regulations in BC.

Works Cited

Aleksynska, Mariya, and Janine Berg. “Firms’ Demand for Temporary Labour In Developing Countries: Necessity or Strategy.” Conditions of Work and Employment Series, vol. 77, 2016.

Canadian Agricultural Human Resources Council (CAHRC). “How Labour Challenges Will Shape the Future of Agriculture: Agriculture Forecast To 2029”. Cahrc-Ccrha.Ca, 2019, https://cahrc-ccrha.ca/sites/default/files/CAHRC-National-Report-FINAL-August-19-2019.pdf. Accessed 12 May 2020.

Caxaj, C. Susana, and Amy Cohen. ““I Will Not Leave My Body Here”: Migrant Farmworkers’ Health and Safety Amidst a Climate of Coercion.” International Journal of Environmental Research and Public Health, vol. 16, no. 15, 2019, p. 2643.

Government of British Columbia. “Beef – Province of British Columbia”. Www2.Gov.Bc.Ca, n.d., Https://Www2.Gov.Bc.Ca/Gov/Content/Industry/Agriculture-Seafood/Animals-And-Crops/Animal-Production/Beef.

Government of British Columbia. “Grains & Oilseeds – Province of British Columbia”. Www2.Gov.Bc. Ca, 2020, https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/animals-and-crops/crop-production/grains-oilseeds-pulse-crops.

Kleinknecht, Alfred. “How ‘Structural Reforms’ of Labour Markets Harm Innovation.” Social Europe, vol. 6, 2015, pp. 1-7.

MacRae, R.J. “Labour Force Maldevelopment | Food Policy for Canada”. Foodpolicyforcanada.Info.Yorku.Ca, n,d., .https://foodpolicyforcanada.info.yorku.ca/backgrounder/problems/labour-force-maldevelopment/.

Martínez-Mesa, Jeovany, et al. “Sampling: How to Select Participants in My Research Study?” Anais brasileiros de dermatologia, vol. 91, no. 3, 2016, pp. 326-330.

Smirnykh, Larisa. “Is Flexible Labor Good for Innovation? Evidence from Russian Firm-level Data.” Форсайт, vol. 10, no. 4, eng, 2016.

Statistics Canada. “COVID-19 Disruptions and Agriculture: Temporary Foreign Workers”. Www150.Statcan.Gc.Ca, 2020, https://www150.statcan.gc.ca/n1/pub/45-28-0001/2020001/article/00002-eng.htm.

Statistics Canada. “COVID-19 Disruptions and Agriculture: Temporary Foreign Workers”. Www150.Statcan.Gc.Ca, 2020, https://www150.statcan.gc.ca/n1/pub/45-28-0001/2020001/article/00002-eng.htm.

Weiler, Anelyse M. et al. “Growing Good Agricultural Jobs in British Columbia”. Policyalternatives.Ca, 2020, https://www.policyalternatives.ca/sites/default/files/uploads/publications/WorkingPaper_WeilerDennisWittman_GoodJobsConf.pdf.