British Columbia Forestry Company Fined 429,000 Dollars and Banned from Hiring Migrant Workers

A British Columbia forestry company currently going through insolvency proceedings has been handed one of the largest immigration-related penalties in the province’s history. San Industries Ltd., based in Vancouver, has been fined 429,000 dollars and banned from hiring temporary foreign workers for two years after federal inspectors found it had violated multiple sections of Canada’s Immigration and Refugee Protection Regulations. The sanctions were published in a May 15, 2026 decision and signal that Canada takes worker protection laws seriously, regardless of a company’s financial situation.

What Violations Were Found?

Federal inspectors identified five distinct violations by San Industries Ltd. during their review. These included:

• Failing to provide pay and working conditions that matched what was advertised to the workers at the time of hiring.
• Not being engaged in the actual business for which the temporary foreign workers were recruited.
• Failing to demonstrate that the positions filled matched the company’s Labour Market Impact Assessment (LMIA) application.
• Breaking federal or provincial laws related to the hiring and recruitment of employees.

A Labour Market Impact Assessment (LMIA) is a document that employers must obtain to prove there are no available Canadian citizens or permanent residents to fill a given role before hiring a foreign worker. When employers fail to match their actual hiring to their LMIA, they undermine the very purpose of the program.

One of the Largest Penalties in BC History

At 429,000 dollars, the penalty against San Industries is the second-largest immigration-related fine ever recorded in British Columbia. The record belongs to Surrey’s Kanwar Walia Farms, which was fined 435,000 dollars in February 2026.

The scale of these fines reflects a clear message from federal authorities: companies that violate the rules designed to protect temporary foreign workers will face serious financial consequences. The additional two-year ban from hiring migrant workers is equally significant, as it directly affects the company’s ability to staff operations during that period.

Background: Investigations and Worker Accommodation Concerns

The enforcement actions against San Industries did not come out of nowhere. In July 2024, the City of Port Alberni issued a public statement acknowledging a complaint against the company, with temporary foreign workers raising concerns about their accommodations. Local authorities were notified, and federal and provincial agencies were called in to investigate.

That same summer, San Industries took legal action against the City of Port Alberni over what the company described as a clandestine overnight search of its manufacturing facility, involving police and fire trucks blocking access to the property. The company alleged the search was conducted without proper judicial authorization and was connected to false claims about worker mistreatment. At the time, a company representative said the 16 Vietnamese workers employed at the facility lived in accommodation that was not properly maintained by its occupants.

Financial Troubles and Arson Allegations

The immigration sanctions come as San Industries faces a serious set of parallel challenges. In November 2024, the corporate group behind San Industries, commonly known as the San Group, sought creditor protection under Canadian insolvency law in the face of more than 150 million dollars in outstanding claims.

Deloitte Restructuring Inc. has been serving as the monitor overseeing the process. Despite selling off significant assets, primary lenders are still owed more than 129 million dollars. The company has also been dealing with a major insurance dispute involving Lloyd’s Underwriters, who have denied a nearly 31 million dollar claim over a 2024 fire at a San-owned mill in Delta, B.C., alleging the fire was deliberately set by the company. San Industries has strongly denied this claim, and the matter has not been tested in court.

What This Means for the Temporary Foreign Worker Program?

Cases like this one highlight both the importance of the Temporary Foreign Worker Program and the risks that arise when employers abuse it. The program is designed to fill genuine labour gaps in Canada’s economy, with strict protections in place to ensure foreign workers are treated fairly and that Canadian workers are not displaced.

When those protections are violated, workers can end up in exploitative situations far from home with limited recourse. Federal inspections and meaningful penalties are essential to maintaining the integrity of the program. The San Industries case sends a clear signal that IRCC and Employment and Social Development Canada are willing to pursue serious consequences for non-compliance.

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