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By Randall Palmer

OTTAWA, April 29 (Reuters) – The Canadian government was set

to announce tighter rules on Monday to prevent employers from

using its temporary foreign worker program to squeeze Canadians

out of jobs, acting after two high-profile cases tarnished the

program’s reputation.

Citizenship and Immigration Minister Jason Kenney and Human

Resources Minister Diane Finley have scheduled a news conference

for Monday afternoon to announce reforms to the program, which

the Conservative government was expected to present to

Parliament in its budget implementation bill on Monday

afternoon.

“While Canada is experiencing significant skills shortages

in many sectors and regions, this government believes that

Canadians must always have first crack at job opportunities when

they become available,” said Stephen Lecce, spokesman for Prime

Minister Stephen Harper.

“The government is moving quickly and taking action to

reform the temporary foreign worker program to ensure that

Canadians are given the first chance at available jobs.”

Despite 7 percent unemployment nationally, in some areas and

in some professions there are labor shortages, and Canadian

employers are allowed to bring in foreign workers if the

employers can demonstrate that they cannot find Canadians to do

the work.

The program was designed mainly to bring in cheap

agricultural workers but it has expanded rapidly to fill

shortages elsewhere, both high-skilled positions in the booming

resource sector and low-skilled jobs such as servers at the

country’s ubiquitous Tim Hortons coffee shops.

The program exploded into the news this month with word that

Canada’s largest bank, Royal Bank of Canada, was using

temporary foreign workers hired by U.S. outsourcing firm iGate

, effectively to replace existing staff.

In an open letter, RBC Chief Executive Gord Nixon

subsequently apologized for not being more sensitive to Canadian

employees. But he also said the bank had complied with

regulations, and iGate said its hiring practices were fully

compliant with Canadian law.

The program also came under the spotlight with word last

year that a majority Chinese-owned company had listed Mandarin

as a language requirement for 201 jobs at the Murray River coal

mine in the interior of British Columbia.

The company involved is HD Mining International Ltd, in

which China’s Huiyong Holdings Ltd holds a 55 percent stake,

Canada’s Dehua Lvliang International Mines Group Inc 40 percent

and an unnamed party 5 percent.

HD Mining said last year it had tried to hire locally but

had been unable to find people with the skills to operate the

specialized mining equipment, currently used in China, that will

be used at the Canadian mine.

The United Steelworkers union has challenged the idea that

HD Mining could not find Canadian workers, and said it was too

dangerous for miners who do not understand English well to

operate in a mine that requires compliance with extensive

English-language safety regulations.

A Canadian official said one change to the program would

require employers to advance a plan for transition to Canadian

employees before permission would be granted to bring in foreign

workers.

This would include plans for recruiting, training and

keeping Canadian workers.

(Editing by Peter Galloway)