Alberta’s proposed Immigration Oversight Act, Bill 26, faces significant pushback from the hospitality sector, which warns of increased regulatory burdens for businesses seeking to hire foreign workers. Tabled recently in the provincial legislature, the bill mandates a public registry and licensing for employers and immigration consultants. The Alberta Hospitality Association, among others, argues the legislation duplicates existing federal rules and exacerbates challenges for an industry already grappling with labor shortages.

Hospitality Sector Cries Foul

Mona Pinder, executive director of the Alberta Hospitality Association, expressed concerns that the bill would create “more red tape” for businesses. She highlighted the ongoing struggles of restaurants, which face rising input costs and customer affordability issues since the pandemic. Pinder stated the legislation feels like “another challenge for an already strained industry.”

“Restaurants are struggling with both input costs going up and of course the affordability crunch that the customers are feeling themselves,” Pinder said.

Minister Defends Legislation

Alberta’s Immigration Minister, Joseph Schow, defended Bill 26, asserting its purpose is to protect foreign workers and accurately address the province’s labor market needs. Schow stated the current system sometimes favors foreign nationals, bypassing young Canadians for entry-level positions. He emphasized the legislation aims for Alberta to take more control over immigration to fill specific job requirements.

“It is clear that in some instances, we have become over-reliant on temporary foreign workers,” Schow said at a news conference Wednesday. “As a result, some of the jobs that usually would’ve gone to Albertans as entry-level positions are now going to temporary workers.”

Schow clarified the legislation is “absolutely not” about restricting the number of temporary foreign workers entering the province. He noted it is necessary to prioritize Alberta’s unique labor market needs, particularly in agriculture and manufacturing.

Labour Market Dynamics

Provincial statistics reveal 271,024 non-permanent residents resided in Alberta as of Jan. 1. Approximately 60 per cent held work permits, while six per cent held both work and study permits. These figures represent a decrease of almost 26,000 non-permanent residents compared to the previous year.

Restaurants Canada, a national advocacy group, reported Alberta’s foodservice industry is a $16-billion sector that employs 155,000 people. Youth workers account for 63,000 of these employees, representing over 40 per cent of the workforce.

• Alberta foodservice industry: $16 billion
• Total employees: 155,000
• Youth employees: 63,000 (over 40 per cent of workforce)
• Temporary foreign workers (TFWs) in foodservice: 3 per cent

Pinder noted that some rural restaurants struggle to operate at full capacity due to a lack of workforce, especially youth workers. Restaurants Canada echoed this, pointing out that youth often have limited schedule availability due to school and other commitments, and are concentrated in urban areas.

“You can’t operate a kitchen without a trained chef or maintain a 24/7 rest stop if no one is willing to work overnight,” said Kelly Higginson, president and CEO of Restaurants Canada.

Temporary foreign workers, despite making up only three per cent of the foodservice workforce, are critical for skilled roles like chefs, overnight shifts, and in rural regions where worker shortages are acute. Businesses often turn to temporary foreign workers despite the expensive process.

Duplication Concerns

Pinder argued that Alberta’s proposed bill duplicates rules already established at the federal level. She questioned the legislation’s alignment with Alberta’s reputation for “red tape reduction.”

“Alberta is kind of known for looking at red tape reduction,” Pinder said. “This doesn’t really feel like reducing red tape.”

Schow, however, maintained the duplication is necessary for Alberta to address its specific labor market requirements.

Why This Matters

Bill 26 introduces a significant policy shift for Alberta, aiming to assert greater provincial control over immigration and labor market needs. While the government frames the legislation as a measure to protect workers and ensure jobs for Albertans, the hospitality sector views it as an additional burden. The debate highlights a fundamental tension between provincial autonomy in immigration policy and the operational realities of industries heavily reliant on foreign labor. If enacted, the bill could reshape how Alberta businesses, particularly in hospitality, agriculture, and manufacturing, access and manage their workforce, potentially impacting economic growth and the availability of essential services, especially in rural areas. The legislation’s success will hinge on its ability to balance worker protection with the economic needs of Alberta’s diverse industries.