Thank you very much. I appreciate the opportunity, Mr. Chairman and members of the committee. My name's Tony Pollard. I'm president of the Hotel Association of Canada. As I said, we want to thank you for this opportunity to be here today.
We're very strongly opposed to this bill, and right at the outset we recommend that it not go forward. Let me just give you a very brief background on what the hotel business is, how big we are, and what we do.
Last year, in 2006, we generated revenues of about $17.6 billion. The value-added from our industry, that's all the things that go into it and all the people who depend upon us, was another $16.2 billion. Perhaps more importantly for the benefit of this committee, we employ 378,000 people across the country directly or indirectly. The wages and salaries of all these individuals came to about $6.7 billion last year.
Also, as I like to point out to our friends in government whenever I appear before these committees, the revenues generated for all three levels of government, or what most of us would probably know as taxes, were about $6.9 billion last year, with $3 billion going to the federal government. Again, that's something to underline. I'd like to point out that most of you look upon us as pretty good friends because of those numbers we generate for you.
This bill aims to prohibit employers under the Canada Labour Code from using other workers, including existing non-bargaining employees, to perform the duties of employees who are on strike or locked out. Now the current part of part I of the Canada Labour Code came into being after years of hard work, including the task force headed up by Andrew Sims.
The Sims task force attempted to create a balance between the interests of employers with those of the workers. The title of the report, “Seeking a Balance”, I think is very telling. Unfortunately, it did not reach unanimity on the replacement worker issues. The majority report recommended a provision that would give employers flexibility in meeting their operating responsibilities, but would prevent them from using replacement workers to undermine a union's legitimate bargaining objectives.
After the report had been released and with the intervention of the Minister of Labour, the end result was a provision based upon the majority view. As such, the current version of part I was developed through a process that attempted to address the interests of all stakeholders, not those of just one stakeholder at the expense of others. But that is precisely what we believe Bill C-257 would do.
Further, it would undo years of effort of developing fair labour legislation at the federal level. Industries that fall under federal jurisdiction, including some hotels, have endured work stoppages over the years. This has caused many difficulties for Canadians and for Canadian businesses. There have been countless situations where back-to-work legislation has been required. This has significantly diminished since 1999, because we believe we now have a legislative framework that is more conducive to all the parties settling their own disputes.
The proposed legislative changes would negatively impact workers. The best protection for a worker who is on strike is to have confidence that there will be a job to return to. That is best assured by allowing that enterprise to remain operational during a strike. It is important to recognize that a hotel never closes. When a hotel does close, it is often very difficult to reopen. We all suffer, including our employees. This proposed legislation could most definitely result in this outcome.
While some suggest that banning the use of other workers would result in more industrial harmony, studies have shown that anti-replacement-worker legislation often results in an increase in strike incidents and duration. Therefore, longer strikes with limits on the enterprise's ability to continue operations can harm a worker's job security. If the bill is passed we will go back, unfortunately, to a far more contentious labour relations climate.
Therefore, Mr. Chair and members of the committee, we recommend the change proposed in Bill C-257 should not go forward without a comprehensive review of its implications for Canadian businesses, the employment legislation review process, and the overall balance of part I of the Canada Labour Code.
Thank you for this opportunity.