Canada Examines RBC’s Use of Foreign Workers Contracted by iGATE

The Canadian government said it is examining whether the Royal Bank of Canada broke immigration rules by hiring foreign workers to replace domestic employees.

RBC, Canada’s largest bank by assets, fired “dozens” of staff in its investors services group and replaced them with individuals under contract with iGATE Corp., the CBC television network reported on its website. One of the employees being replaced told the network the new workers were from India.

“If true, this situation is unacceptable,” Human Resources Minister Diane Finley said in an e-mailed statement.

Spokesmen for Toronto-based RBC and Fremont, California- based iGate didn’t immediately respond to e-mailed requests for comment sent outside normal business hours.

Canada’s temporary foreign worker program isn’t intended to replace Canadian employees with foreigners, Finley said. “When there are jobs available, Canadians must always be the first in line for opportunities from employers who are hiring.”

Finley said her officials are working with immigration authorities to “determine the next steps.”

To contact the reporter on this story: Andrew Mayeda in Ottawa at amayeda@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net

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