The CEO of McDonald's Canada has branded recent criticism of its use of temporary foreign workers "bullshit" in a conference call to franchisees that was given to the CBC.
His remarks from earlier this week came before federal Employment Minister Jason Kenney announced an immediate moratorium on the food services sector's access to the Temporary Foreign Worker Program late on Thursday, as a result of CBC Go Public's inquiries.
Three McDonald's franchises in Victoria and a pizza restaurant in Weyburn, Sask., are at the centre of program abuse allegations involving Canadian employees alleging foreign workers were given priority work status or more hours.
A federal investigation into McDonald's use of the temporary foreign worker program was launched recently, after a Go Public story about a Victoria McDonald's franchise.
Tuesday's conference call was scheduled to address franchisees' concerns that McDonald's Canada had decided to put its temporary foreign worker program on hold, while a third party conducts an audit on its use of the plan.
McDonald's initiated that independent audit in response to the government investigation.
In a recording of the call given to the CBC, McDonald's Canada CEO John Betts discusses recent CBC stories on the company's use of temporary foreign workers and his resulting meeting with federal Employment Minister Jason Kenney.
"This has been an attack on our brand. This has been an attack on our system. This is an attack on our people. It's bullshit OK! I used those words when I described my conversation with the minister last week. He gets it."
The CBC has been given a recording of McDonald's Canada CEO John Betts calling stories about its temporary foreign worker policy 'bullshit'. (CBC)
Betts says he was "incredibly impressed" with the minister, adding, "He really knows his stuff. And I'll say he knows his stuff from a business person's perspective."
Responding sarcastically to how his company has been portrayed in the media, Betts said, "The fact of the matter is we are a big bad company, corporate, you know, bad company and these poor maligned employees are who they are."
"Yes, they are disenfranchised. Some of them don't work for us anymore. But in the scheme of things, it doesn't matter."
"This story has been brewing for a lot of years. And you know at the end of the day we just happen to be the business that got tapped into it and we weren't the first. Obviously, RBC was," said Betts, referring to a previous CBC Go Public story.
"The reality is that we have learned internally that we haven't done a very good job in a lot more places than we thought and that's just us on the phone talking."
Franchisees fear losing staff
One franchisee in Alberta expressed concern about employees — temporary foreign workers — who won't be able to get their work permits renewed.
"When that happens, every single foreign worker in Alberta is going to leave us. They are scared. The restaurants are going to fall apart. This is how it is on the ground," said the franchisee.
'We are a big, bad company...and these poor maligned employees are who they are'- McDonald's Canada CEO John Betts, responding sarcastically to how the company has been portrayed in the media
Another franchisee was worried about money he had just paid to Actyl, one of the international recruitment agencies McDonald's pays up to $2,000 for every worker they bring in.
"I paid Actyl Group probably $14,000. So am I out the $14,000 now and the whole nine yards?" asked the franchisee.
The restaurant chain's vice-president of human resources Len Jillard, also taking part in the conference call, is heard replying, "Believe me, we are doing everything we can to get everything back on the rails."
Later on, Betts comments "This is a big one for us and it is critical because of our brand image and because of your need to make profits and our systems need to take care of our people."
'Element of truth'
Betts spends much of the conference call railing against the CBC's coverage of the controversy — but admits there is truth to the stories.
"Here's the kicker. The kicker is there's an element of truth in each of these stories," Betts said.
McDonald's Canada has agreed to a third-party investigation of all locations that use temporary foreign workers. (CBC)
"What we've got to do is fix what we have in the restaurants concerning the temporary foreign workers.
"But what we've also learned is that we have other opportunities in the people area that we also need to take care of. Violations of labour law. And those are the kind of things that suddenly become compounded because we have another issue over here, that's very emotional in Canada."
With regard to the company's decision to halt its Temporary Foreign Worker Program, Betts told concerned franchisees that, "In dealing with the government, the smartest move was to pre-empt their move in terms of suspending us."
"I think the relationship we build with the minister here is a politically astute one to be taking. Because they're feeling the heat big time before this story broke and now it's bigger and bigger," he went on.
"They need to see us as partners in this as a brand that can help them make some progress on this and at the same time give us an opportunity to clean ourselves up."
At no point during the recording does the CEO mention hiring Canadians instead of temporary foreign workers or go over the rules of the federal Temporary Foreign Worker Program.
Moratorium on food services industry
As a result of CBC Go Public's inquiries, federal Employment Minister Jason Kenney announced late Thursday an immediate moratorium on the food services sector's access to the Temporary Foreign Worker Program.
Employment Minister Jason Kenney has announced a moratorium on the food service sector's access to temporary foreign workers. (CBC)
"Our Government has been clear: Canadians must have the first chance at available jobs. We have repeatedly warned employers that the Temporary Foreign Worker Program must only be used as a last and limited resort when Canadians are not available," said the minister in a statement.
The minister said that despite an ongoing investigation into serious allegations of abuse of the program, the suspension of LMOs and the blacklisting of the employers in question, there remained serious concerns relating to the use of temporary foreign workers in the food services sector.
"As a result, I am announcing an immediate moratorium on the Food Services Sector's access to the Temporary Foreign Worker Program.
"Accordingly, ESDC [Employment and Skills Development Canada] will not process any new or pending LMO applications related to the Food Services Sector. In addition, any unfilled positions tied to a previously approved LMO will be suspended."
The moratorium will remain in effect until the completion of the on-going review of the Temporary Foreign Worker Program.
On mobile? Click here to hear McDonald's CEO on conference call
Read the minister's full statement below. On mobile? Click here to read the minister's full statement
Statement by Employment Minister Jason Kenney (PDF)
Statement by Employment Minister Jason Kenney (Text)
Federal government tip line
The federal government says it wants to hear from any other employee or job applicant from any McDonald's or other workplace nationwide who feels they have been negatively affected by the Temporary Foreign Worker Program.
Kenney's office provided the following phone number and email address for confidential tips:
Phone: 1-800-367-5693
Email: integrity@servicecanada.gc.ca
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