Canadian Tire Owner Fined $111K Over Temporary Worker Violations

The federal government has fined the owner of a Canadian Tire store in Toronto more than $111,000 for breaking the rules of Canada’s Temporary Foreign Worker (TFW) Program.

Owner Under Investigation

Ezhil Natarajan, the franchise owner of the Etobicoke store, is also under investigation by Ontario authorities for allegedly exploiting foreign workers. The provincial Ministry of Labour has confirmed the investigation is ongoing.

Violations Found

Employment and Social Development Canada (ESDC), which oversees the TFW program, reported that Natarajan violated two main rules:

• Workers were not paid according to their job offers.

• Employees were assigned to roles different from what they were hired to do.

A year ago, at least 13 foreign workers at the store either quit or were fired after claiming their wages were reduced and they were forced into jobs they did not agree to do. At the time, ESDC had already started investigating Natarajan.

Penalty and Program Ineligibility

The $111,000 penalty was issued in July and is listed on ESDC’s website. As of now, Natarajan has not paid the fine, making him ineligible to hire foreign workers under the TFW program.

Allegations of Wage Reductions and Threats

Former employee Rowell Pailan said his wage dropped from $20 an hour to $16.55 after being demoted from supervisor to shelf stocker. Under TFW rules, a change in job duties or wages requires a new Labour Market Impact Assessment (LMIA) and a new work permit, which Pailan did not receive.

Other workers have since received open work permits under the Open Work Permit for Vulnerable Workers Program, designed to help exploited foreign workers. One worker reported that Natarajan frequently threatened employees verbally and warned them their hours and pay would be cut if they did not comply.

Recruiter Fined for Exploitation

The recruiter Natarajan used, Allison Jones Consulting Services Inc., was fined $165,000 by Ontario Labour Ministry for illegally charging foreign workers for job placements. Pailan paid over $10,000 to get his job at Canadian Tire. The recruiter plans to appeal the decision.

Canadian Tire’s Response

Canadian Tire did not comment on whether Natarajan still owns the Etobicoke store. However, after last year’s investigation, the company updated its policy to bar franchisees from using recruiters or consultants who charge foreign workers fees.

Temporary Foreign Worker Program Context

The TFW program allows employers to hire foreign workers for jobs that cannot be filled by Canadians. Critics have raised concerns about exploitation due to the “closed work permit” system, which ties workers to a single employer, making it difficult to leave abusive situations.

Conservative Leader Pierre Poilievre has recently called for the program to be shut down, linking it to rising youth unemployment and wage suppression. After the pandemic, the federal government expanded the program, approving numerous LMIA applications, but it has since tightened eligibility to reduce the number of temporary residents.

Between 2022 and 2024, Natarajan’s business, Geethaezhil Inc., was approved to hire 34 foreign workers through the TFW program.