San Industries Ltd. Fined $429,000 for Temporary Foreign Worker Program Violations
Employment and Social Development Canada has issued a significant penalty to San Industries Ltd., a British Columbia-based company. The firm was fined $429,000 CAD and banned from hiring temporary foreign workers for two years due to multiple violations of Canada’s immigration regulations. This action, finalized on May 15, 2026, highlights the government’s commitment to maintaining the integrity of the Temporary Foreign Worker Program.
The company, with operations in Port Alberni and Langley, was found to have committed five major breaches of the Immigration and Refugee Protection Regulations. These violations underscore the importance of strict adherence to program rules for employers seeking to hire foreign nationals. The ban on hiring new temporary foreign workers will remain in effect until May 15, 2028.
Key Violations Identified
Federal inspectors detailed several serious infractions by San Industries Ltd. These included inaccuracies in the Labour Market Impact Assessment (LMIA) application, such as job descriptions that did not reflect the actual work offered. The company also failed to comply with recruitment and hiring laws, and the wages or working conditions provided did not match the initial employment offer.
Furthermore, inspectors found that San Industries Ltd. was not actively engaged in the business for which foreign workers were hired. A critical breach also involved the failure to provide private health insurance for workers who were not yet covered by provincial health insurance plans. These specific violations fall under various codes within the Immigration and Refugee Protection Regulations, demonstrating a pattern of non-compliance across different aspects of the program.
Impact of the Sanctions
The $429,000 CAD penalty is one of the largest immigration-related fines issued to a company in British Columbia, second only to a $435,000 fine given to Kanwar Walia Farms in February 2026. The two-year prohibition from hiring temporary foreign workers is intended to ensure that available jobs are first offered to Canadian citizens and permanent residents. This measure aims to prevent future non-compliance and protect the program’s intended purpose of addressing genuine labor shortages.
The enforcement action against San Industries Ltd. occurs while the company is already facing financial difficulties, having sought creditor protection in November 2024 with over $150 million in claims. Local authorities in Port Alberni had previously raised concerns about the living conditions of the company’s temporary foreign workers in July 2024, which may have contributed to the federal investigation.
Worker Protections and Program Integrity
For temporary foreign workers employed by San Industries Ltd. at the time of the ruling, there are provisions for seeking an Open Work Permit for Vulnerable Workers. This allows workers facing abuse or employed by a non-compliant employer to find new employment elsewhere in Canada. Such options are vital in situations where an employer’s access to the program is revoked, potentially impacting workers’ housing, transportation, and immigration status.
Employment and Social Development Canada’s enforcement actions are designed to ensure that the conditions promised to foreign workers during the hiring process are met in reality. The case of San Industries Ltd. illustrates a failure on multiple fronts, from the accuracy of LMIA applications to the actual workplace conditions and worker protections. The company’s public listing on the federal non-compliance register serves as a warning to other employers, workers, and recruiters about the consequences of violating program rules. This public record reinforces the government’s dedication to upholding labor mobility regulations and ensuring fair treatment for all workers in Canada.
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