Toronto hotel unions want end to recession measures

TORONTO-Regular hours, how hotel workers shouldered the burden of the recession, and the flip-side of green programs were all under discussion as UNITE HERE Local 75 hotel workers met at Toronto City Hall May 7 to publicly launch negotiations for contracts. With most contracts having expired in February 2010 and strike authorization votes underway, about 5,500 hotel workers will be negotiating with over 30 hotels in the coming months.

Attendees at the meeting included supportive community organizations, and a handful of hotel general managers accepted an invitation to observe.

Over one-third of workers bargaining this year in Toronto work at hotels owned or operated by affiliates of the Westmont Group, one of the world's largest private hotel companies.  Another third will bargain with hotels operated by Starwood, Delta and Larco. Local 75 represents over 7,000 hotel, hospitality and gaming workers in the Greater Toronto Area.

"Green shoots" welcomed

Speakers welcomed numerous signs of economic ‘green shoots' in the industry as well as the general economy.

"We are glad that we deferred the commencement of collective bargaining until we could see the prospects for future business turning positive," explained Paul Clifford, president of UNITE HERE 75.

"However as employer prospects brighten, we fear that hotel companies may try to perpetuate draconian recessionary cuts to hours and service levels and lock in the recession for workers."

Several hotel workers portrayed the ways in which front-line workers have shouldered the burden of the recession. Workers spoke of the difficulty of sustaining a family in the face of cuts in hours and shifts, a shift to ‘beck and call' hyper-flexible scheduling and an increased reliance on part-time positions.

"Workers have been stretching to cover more and more work over the past year and a half, and this has taken its toll-not only on workers, but also on customers," added Clifford.

Left: Cicely Phillips, Local 75's Vice President; Right: Paul Clifford, Local 75's President

In North America, job cuts have plunged staff levels and service to room ratios from 70 per 100 rooms to below 55 over the last quarter century, said a UNITE HERE 75 news release. The steepest dips occurred in the wake of economic downturns (2001/2003).

According to the release, research from industry and analyst sources reveals that hotel industry prospects are looking up in the coming year.  Here are the statistics presented to the union membership.

• PKF has forecast a 4 per cent increase in RevPAR (Revenue per available room) for the Toronto area in 2010, second only to Vancouver.

• Along with a first quarter 2010 profit gain of 20 per cent for Starwood, other predicted gains include 19 per cent earnings growth for InnVest for 2010-2012 and RevPAR gains of 3-6 per cent in North America for Marriott.

• Surprisingly 2008, which saw the worst of the recession, was still above the 10 year average (1999-2009) profitability for the hospitality industry in Canada, according to data provided by the Conference Board of Canada in February 2010.

"The hotel industry can either take the high road and work in partnership with us to build an economy based on skills, innovation and sustainability, or have us challenge their low-road practices that lower living and working standards" added Clifford.

The Las Vegas training model

UNITE HERE Local 75 has long advocated for investment in training and good jobs like Las Vegas has done in order to strengthen the tourism sector. "Customers and hotel workers alike need to see the benefits of the ongoing economic recovery,"  said Clifford.

The Culinary Training Academy (CTA) in Las Vegas prepares workers for employment in the rapidly expanding Southern Nevada gaming and hospitality industry.  It is a joint labour and management training trust fund between the Culinary Union Local 226, Bartenders Local 165 and major resort properties on the Las Vegas Strip.

The partnership has created the largest provider of employment and vocational training for entry-level and incumbent workers for the hospitality industry in Las Vegas. Each year, the CTA trains approximately 3,000 students for our participating employers in the hospitality industry.

Toronto Hospitality Workers Training Centre

With Vegas in mind, UNITE HERE 75 has already set up the Toronto Hospitality Workers Training Centre.

Although it is still in its development stage, it has already implemented a number of measures including:

• An Ontario Tourism Education Corporation (OTEC) certification training for room attendants at 1 King West;

• Basic computer training at Fairmont Royal York Hotel, King Edward Hotel, Doubletree International Plaza, Westin Prince Hotel, and Sheraton Centre;

• ESL programs at the Fairmont Royal York Hotel, King Edward Hotel, and Delta East Hotel; and

• Adjustment ‘action centres' for jobless workers from the Inn on the Park and Valhalla Hotel.

Part of the project is One Richmond Street, a project that provides subsidized housing in the city centre for low-wage hotel workers. Toronto city councillor Pam McConnell, Toronto Community Housing Corp. and the union teamed up to create this project on city land that housed the land-registry office, more recently a homeless shelter. TCHC put up $11-million, Ottawa and Queen's Park between them gave $3.7-million, the city gave $150,000, and the project developers borrowed another $7.6-million.

TCHC will provide ongoing rent supplements for some dwellings; others will pay "affordable market" rents of about $1,000 a month for a three-bedroom apartment.