FORT MCMURRAY, Alta. - The federal government says dozens of workers laid off in Alberta's oilpatch have jobs again, but a labour group says that's not the case and it points to a broken temporary foreign worker system.

Earlier this week, the government announced it was investigating whether the 65 workers at Imperial Oil's (TSX:IMO) Kearl project had been replaced with workers from Croatia at half the pay.

An official with the Employment and Social Development Department said Friday all of the laid-off workers have received job offers on "other projects in the area."

However, Alberta Federation of Labour president Gil McGowan said not all have received offers.

The company at the centre of the controversy, Pacer Promec Joint Venture, also issued a news release saying it would rehire Canadians to positions that had been filled by temporary foreign workers. The statement was vague and didn't say if the company would rehire the people they laid off or what would happen with the Croatian employees.

McGowan said the company had not contacted the Edmonton Iron Workers Union about rehiring the laid-off Canadians.

The company's managing partner, Paolo Cattelan, said in the release that a subcontractor brought in the foreign workers, and thought it had followed the rules of Canada's Temporary Foreign Worker Program.

"I regret that our actions, which we believe are consistent with the legislation, led to the current controversy," Cattelan said.

"These temporary workers should have been assigned to other projects where there is an existing labour shortage. Going forward, PPJV will use its best efforts to ensure temporary foreign workers fill positions where there is a shortage."

The federal Employment minister's office said an investigation into the case will continue.

"Our government will not tolerate any abuse of the Temporary Foreign Worker Program," said spokesman Nick Koolsbergen.

"Those who are found to have violated the rules of Temporary Foreign Worker Program will be added to a blacklist and denied the ability to hire temporary foreign workers in the future. Canadians must be first in line for available jobs."

Ottawa brought in new regulations in December to calm fears that foreigners were taking jobs from Canadians.

McGowan said what happened to the workers is not isolated case. He has received complaints about other Canadians losing their jobs to foreign workers.

He wants the federal government to revamp its foreign worker program. And he wants a royal commission to examine the whole issue.

"It's simply not good enough for the employer to say, 'Sorry, we're going to hire the workers back,'" said McGowan.

"What's happened here is that they got caught with their hand in the cookie jar. And the bigger concern is that if the rules don't change, and the federal government doesn't get really serious about enforcing new and more aggressive rules, then we're going to see this kind of situation repeated over and over again."

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  • Syncrude's Mildred Lake Upgrader, part of The Syncrude Project complex for oil sands processing, is pictured Monday, March 8, 2006 in Fort McMurray, Alberta, Canada.

  • The Syncrude oil sands extraction facility is reflected in a lake reclaimed from an old mine near the town of Fort McMurray in Alberta, Canada on October 22, 2009.

  • A disused mining machine on display in front of the Syncrude oil sands extraction facility near the town of Fort McMurray in Alberta on October 22, 2009.

  • Mountains of sulphur, a waste byproduct of mining, stand at a Syncrude Canada Ltd. mining site near Fort McMurray, Alberta, Canada, on Tuesday, Aug. 13, 2013.

  • The Suncor oilsands operation uses trucks that are 3 stories tall, weigh one million pounds, and cost 7 million dollars each.

  • Oil sits on the surface at a Suncor Energy Inc. oilsands mining operation near Fort McMurray, Alberta, Canada, on Tuesday, Aug. 13, 2013. Photographer:

  • An aerial view of a tailings pond at the Suncor oil sands mine near the town of Fort McMurray in Alberta in 2009.

  • Mining trucks carry loads of oil laden sand at the Albian Sands oils sands project in Ft. McMurray, Alberta, Canada, on Friday, August 5, 2005

  • A large oil refinery along the Athabasca River in Alberta's Oilsands. Fort McMurray, Alberta.

  • Oils mixes with water at a tailings pond at a Suncor Energy Inc. oil sands mining operation near Fort McMurray in 2013.

  • Fort McMurray is in the heart of the world's biggest single oil deposit - the Athabasca Oil Sands, and the oil is extracted by surface mining and refined in the region. The oil production is at the heart of the economy.

  • Oil is seen at the ground's surface near Royal Dutch Shell Plc's Albian Sands mine near Fort McMurray, Alberta, Canada, on Tuesday, Aug. 13, 2013.

  • In this Aug. 5, 2005 file photo, the Syncrude upgrader spreads out towards the horizon at the company's oil sands project in Ft. McMurray, Alberta, Canada.

  • The Mildred Lake upgrader, on the grounds of The Syncrude Project in Fort McMurray, Alberta, Canada is pictured from the air Monday, March 6, 2006.

  • This Tuesday, July 10, 2012 aerial photo shows a Nexen oil sands facility near Fort McMurray, Alberta, Canada.

  • This Sept. 19, 2011 aerial photo shows an oilsands facility near Fort McMurray, in Alberta, Canada.

  • This Sept. 19, 2011 aerial photo shows an oilsands tailings pond at a mine facility near Fort McMurray, in Alberta, Canada.

  • This Sept. 19, 2011 aerial photo shows an oilsands tailings pond at a mine facility near Fort McMurray, in Alberta, Canada.

  • The Syncrude extraction facility in the northern Alberta oil sand fields is reflected in the pool of water being recycled for re-use.

  • A night view of the Syncrude oil sands extraction facility near the town of Fort McMurray in Alberta Province, Canada on October 22, 2009.

  • Aerial view of a lake and forests in the vicinity of oil sands extraction facilities near the town of Fort McMurray in Alberta, Canada on October 23, 2009.

  • Workers use heavy machinery in the tailings pond at the Syncrude oil sands extraction facility near the town of Fort McMurray in Alberta , Canada on October 25, 2009.

  • Fort McMurray is in the heart of the world's biggest single oil deposit - the Athabasca Oil Sands, and the oil is extracted by surface mining and refined in the region. The oil production is at the heart of the economy.

  • A large oil refinery in Alberta's Oilsands project. Fort McMurray, Alberta.

  • Next: Alberta Oil Spills

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  • CFB Cold Lake, CNRL

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  • <em>Click through for other recent spill in Alberta</em>

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  • Plains Midstream Canada

    A boom stretches out to contain a pipeline leak on the Gleniffer reservoir near Innisfail, Alta., Tuesday, June 12, 2012. Plains Midstream Canada says one of their non-functioning pipelines leaked between 1,000-3,000 barrels of sour crude near Sundre, Alberta, on June 7 and flowed downstream in the Red Deer river to the reservoir.

  • Plains Midstream

    A boom stretches out to contain a pipeline leak on the Gleniffer reservoir near Innisfail, Alta., Tuesday, June 12, 2012. Plains Midstream Canada says one of their non-functioning pipelines leaked between 1,000-3,000 barrels of sour crude near Sundre, Alberta, on June 7 and flowed downstream in the Red Deer river to the reservoir.

  • Plains Midstream Canada

    A photographer snaps a boom stretching out to contain a pipeline leak on the Gleniffer reservoir near Innisfail, Alta., Tuesday, June 12, 2012. Plains Midstream Canada says one of their non-functioning pipelines leaked between 1,000-3,000 barrels of sour crude near Sundre, Alberta, on June 7 and flowed downstream in the Red Deer river to the reservoir.

  • Plains Midstream Canada

    A boom stretches out to contain a pipeline leak on the Gleniffer reservoir near Innisfail, Alta., Tuesday, June 12, 2012. Plains Midstream Canada says one of their non-functioning pipelines leaked between 1,000-3,000 barrels of sour crude near Sundre, Alberta, on June 7 and flowed downstream in the Red Deer river to the reservoir.

  • Plains Midstream Canada

    A worker slows traffic while a boom stretches out to contain a pipeline leak on the Gleniffer reservoir near Innisfail, Alta., Tuesday, June 12, 2012. Plains Midstream Canada says one of their non-functioning pipelines leaked between 1,000-3,000 barrels of sour crude near Sundre, Alberta, on June 7 and flowed downstream in the Red Deer river to the reservoir.

  • Plains Midstream Canada

    A no swimming sign along the banks of the Gleniffer reservoir while a boom stretches out to contain a pipeline leak on the lake near Innisfail, Alta., Friday, June 12, 2012. Plains Midstream Canada says one of their non-functioning pipelines leaked between 1,000-3,000 barrels of sour crude near Sundre, Alberta, on June 7 and flowed downstream in the Red Deer river to the reservoir.

  • Plains Midstream Canada

    Oil from a pipeline leak coats a pond near Sundre, Alta., Friday, June 8, 2012. Plains Midstream Canada says one of their non-functioning pipeline leaked between 1,000-3,000 barrels of oil.

  • Plains Midstream Canada

    Oil from a pipeline leak coats a pond near Sundre, Alta., Friday, June 8, 2012. Plains Midstream Canada says one of their non-functioning pipeline leaked between 1,000-3,000 barrels of oil.

  • Plains Midstream Canada

    Oil from a pipeline leak coats a pond near Sundre, Alta., Friday, June 8, 2012. Plains Midstream Canada says one of their non-functioning pipeline leaked between 1,000-3,000 barrels of oil.

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