San Industries Ltd. Fined $429,000 and Banned from Hiring Foreign Workers for Program Violations

San Industries Ltd. Faces Significant Penalties for Temporary Foreign Worker Program Violations

San Industries Ltd., a Vancouver-based company with operations in British Columbia, has been hit with a substantial penalty of $429,000 CAD and a two-year ban from hiring temporary foreign workers. This action follows findings by Employment and Social Development Canada (ESDC) that the company committed five major breaches of Canada’s Immigration and Refugee Protection Regulations. The decision, finalized on May 15, 2026, places San Industries on the Government of Canada’s non-compliance list until May 15, 2028.

This enforcement action highlights the Canadian government’s commitment to maintaining the integrity of its labor programs. By imposing strict penalties, authorities aim to deter future non-compliance and ensure that temporary labor programs are used appropriately to address genuine labor shortages. The ban on hiring foreign workers is intended to prioritize Canadian citizens and permanent residents for available positions during the two-year period.

Key Violations Identified by Inspectors

Federal inspectors detailed five specific violations that led to the significant fine and ban. These breaches cover various aspects of the employer’s obligations under the Temporary Foreign Worker Program (TFWP). Understanding these violations is crucial for any employer participating in or considering participation in the TFWP.

Inaccurate Labour Market Impact Assessment (LMIA) Information

One of the primary violations, noted under Code 4 (209.3(1)(c)(i)), involved inaccurate information provided in the Labour Market Impact Assessment (LMIA) application. This suggests that the job descriptions or other details submitted to justify the need for a foreign worker did not accurately reflect the reality of the positions offered. Accurate LMIA applications are the foundation for bringing foreign workers into Canada, ensuring that the program serves its intended purpose of filling labor gaps.

Recruitment and Hiring Law Violations

The company also violated recruitment and hiring laws, as cited under Code 8 (209.3(1)(a)(ii)). This indicates that San Industries did not adhere to the legal requirements governing how they sought and hired foreign workers. Such violations can include misleading advertising, unfair recruitment practices, or failure to comply with specific provincial or federal employment standards during the hiring process.

Wage and Working Condition Discrepancies

A critical aspect of the TFWP is ensuring that foreign workers receive wages and working conditions that match the original offer of employment. San Industries was found to have breached this requirement under Code 9 (209.3(1)(a)(iv)). This means that the actual pay or working conditions provided to the temporary foreign workers differed from what was promised when they were hired, potentially leading to exploitation and unfair labor practices.

Failure to Demonstrate Active Business Engagement

Under Code 15 (209.3(1)(a)(i)), inspectors found that San Industries failed to show it was actively engaged in the business for which the foreign national was hired. This violation suggests concerns about the legitimacy of the employment itself, implying that the company might not have been operating as expected or that the positions were not genuine needs for the business. Employers must prove they are actively running the business and that the foreign worker’s role is essential to its operations.

Lack of Private Health Insurance Coverage

Finally, San Industries failed to obtain or pay for private health insurance for workers who were not yet covered by provincial health insurance, as required by Code 30 (209.3(1)(a)(xiii)). This is a crucial worker protection measure, especially for temporary foreign workers in their initial period in Canada. Ensuring access to healthcare is a fundamental employer responsibility.

Consequences and Broader Implications

The $429,000 CAD penalty is one of the largest immigration-related fines issued to a company in British Columbia, second only to Kanwar Walia Farms’ $435,000 fine earlier in 2026. This substantial financial penalty, combined with the two-year hiring ban, represents a severe blow to San Industries. The company was already facing significant financial challenges, having sought creditor protection in November 2024 with over $150 million in claims.

The enforcement action also occurred amidst local scrutiny. In July 2024, the City of Port Alberni had raised concerns about the living conditions of the company’s temporary foreign workers, which may have contributed to the federal investigation.

For temporary foreign workers employed by San Industries, the situation presents potential pathways to continued work in Canada. Federal rules allow workers facing abuse or employed by non-compliant employers to apply for Open Work Permits for Vulnerable Workers. This permit enables them to seek employment with other Canadian employers, offering a measure of security and choice.

The public listing of San Industries on the federal non-compliance register serves as a warning to other employers, recruiters, and workers. It demonstrates how Canadian authorities are actively enforcing the TFWP’s compliance system, addressing issues from LMIA accuracy to workplace conditions and worker protections. The case underscores that compliance is a multi-faceted responsibility, extending from initial application to ongoing employment.

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