Edmonton Journal - Calgary Herald article

Alberta employment agencies thrive as job losses grow

Critics call for stricter regulation, tougher enforcement for rapidly expanding industry

By Renata D'Aliesio, Calgary HeraldAugust 16, 2009Comments (6)


The number of licensed employment agencies in Alberta has skyrocketed 279 per cent in less than three years, spurring a government review and calls from some observers for stricter regulations and stronger enforcement.




The surge in employment agencies has chiefly surfaced over the last two years. In 2007, there were 184 licensed employment agencies, swelling to 480 in 2008.The provincial count now stands at 698.




The province points to a shortage of skilled labourers during the economic boom as the main reason behind the growth in companies connecting workers with employers for permanent jobs. Also, some smaller agencies didn't realize they needed a provincial licence to operate, said Cam Traynor, a spokesman for Service Alberta.




The onset of recession hasn't yet stymied the industry's expansion. While the pool of employers looking to hire has diminished, more and more workers are turning to employment agencies for help finding a job, several agencies report.




The sector's rapid growth has caught the attention of Service Alberta Minister Heather Klimchuk, whose department is working with Employment and Immigration to examine whether regulatory changes are needed.




"We want to make sure that the individuals who are in this business know what they should be doing and should not be doing," Klimchuk said recently, adding she also wants to ensure "people looking for work in Alberta are treated fairly."




As employment agencies have multiplied, so have the number of complaints and government investigations.




Currently, the province is investigating 285 complaints against agencies, most of them centring on fees charged to temporary foreign workers. It's illegal under the provincial Fair Trading Act to require a worker to pay for finding a job. Agencies make their money on recruitment fees paid by employers.




If an employment agency is convicted of breaking the provincial rule, the company's owner could face a fine as high as $100,000 or a jail sentence of up to two years, or a combination of both.
However, in the past five years, only one agency owner has been convicted of violating the law.
Calgarian Rosalie Marie Maronese, who started up That Recruiting Company, was fined$3,000 in 2006 for misleading consumers and for pocketing $11,328 in fees from 18 temporary foreign workers. She was ordered to pay the money back to her victims.




Two other cases are before the courts. Josephine Garcia Ramoso of Edmonton, a foreign employment recruiter, faces charges of fraud and unfair business practices. She's accused of illegally collecting $15,000 in fees from nine Filipino workers, who were never offered jobs in Alberta.




In March, Calgarian Michael James Delorme is scheduled to appear in court to face charges of unfair business practices and illegally charging a $500 fee to a non-temporary foreign worker. Delorme's employment agency licence has been cancelled.




Not all employment agencies cater to temporary foreign workers. Specialties can vary, from headhunting executives for the energy sector to recruiting workers to fill office towers and construction sites.




But Calgary immigration lawyer Michael Greene believes Alberta's explosion in employment agencies is mainly tied to an influx of temporary foreign workers--57,843 in 2008 and 37,293 in 2007.




"It's a bit like the Klondike," he said. "A lot of people smelled money and came running, and that's led to a lot of abuses. There's a lot of people doing this kind of work who really don't know what they're doing."




Greene thinks stricter regulations, stronger enforcement and stiffer penalties are needed. He said temporary foreign workers are particularly vulnerable because they don't always know provincial rules and often are afraid to speak out.




Liberal MLA Hugh MacDonald, the party's employment and immigration critic, shares Greene's concerns about the treatment of foreign workers by some employment agencies.




He wants the Alberta government to mandate that companies only use recruiting firms backed by foreign governments. He also thinks the province should expand its regulation of employment agencies to include companies that find workers temporary jobs.




Alberta, British Columbia and Manitoba are the only provinces that regulate employment agencies, said Mary McIninch, manager of government relations for the Association of Canadian Search Employment and Staffing Services.




Ontario is considering following suit, but she added no province regulates firms that recruit workers for temporary placements.




Russ McLean thinks some government rules are needed to oversee companies recruiting workers for temporary jobs. The 48-year-old Calgarian has routinely relied on agencies for temporary work, taking on painting, roofing and landscaping jobs, to name a few.




He said some agencies charge so many fees, including requiring money for transportation and safety equipment, there's little money left for workers at the end of a shift.



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