Foodservice association Restaurants Canada has urged the provincial governments to opt into the Temporary Foreign Worker (TFW) cap increase for rural regions, as it would provide short-term relief for employers facing acute labour shortages.

The call follows a federal government announcement last month that temporarily raised the TFW cap in rural areas facing acute staffing gaps from 10% to 15%. 

However, the change would only take effect in provinces that formally request the change.

According to Restaurants Canada, although 1 April was the first day employers could, in theory, use the new cap, many rural operators report they have yet to receive any direction or confirmation from their provincial governments.

Restaurants Canada president and CEO Kelly Higginson said: “Restaurants Canada is asking provincial governments across the country to support rural restaurants and communities by opting into this temporary TFW cap increase.”

The association notes that TFWs account for 3% of foodservice staff nationally and are typically used only after employers show they cannot find local workers at the prevalent market wage.

Hiring through the programme is described as costly and administratively demanding.

TFWs are often brought in for skilled kitchen roles, such as chefs and cooks, or to cover shifts that are difficult to staff, including overnight work.

The association added that when such positions remain vacant, restaurants may be forced to reduce trading hours, cut back on shifts or close altogether.

Higginson stated: “In some rural communities, restaurants may be the only source of local employment for youth.

“They are community gathering spaces, places for travellers and locals to have a meal. Losing a restaurant in these communities is devastating.”

Restaurants Canada said Quebec has, to date, officially opted out of the temporary increase.

Nova Scotia has agreed to take up the higher cap while New Brunswick and Newfoundland and Labrador are also expected to participate.

The group added that the outlook in Alberta is particularly uncertain amid an ongoing referendum process and the 1 April introduction of Bill 26, the Immigration Oversight Act.