Profile Magazine - 2008 Hospitality Report by Juan Emanuel Malvestitti

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Ask most people and they would tell you the human tongue can detect four basic tastes: sweet, sour, bitter and salty, but the sense of taste is actually much more complicated. The smell, sound and texture of food also helps the taste buds relay taste to mission control in the brain. In recent years, a fifth taste, umami, has been recognized. It involves all the senses, and is said to have a spiritual or mystical quality. Associated in culinary circles as experiencing a perfect quality in taste, it evokes a special emotional response when that taste is experienced.

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In this Issue... Labour Shortage

Overview

Report on Tour

ism

OHI Top 30 U

nder 30

HR Guide

Foreign Wor Minimum

ker Program

Wage Updat

Pg. 8 Pg. 12

Pg. 18 Pg. 26

Pg. 30 Pg. 32

For more information call your Heinz Sales Representative or visit www.foodservice.heinz.ca 1 866 205-5733 1 866 565-5700 1 866 574-3469 1 866 570-6550 Western Canada

Ontario

Quebec

Atlantic Canada

In this Issue... Labour Shortage

Overview

Report on Tour

ism

OHI Top 30 U

nder 30

HR Guide

Foreign Wor Minimum

ker Program

Wage Updat

Pg. 8 Pg. 12

Pg. 18 Pg. 26

Pg. 30 Pg. 32

For more information call your Heinz Sales Representative or visit www.foodservice.heinz.ca 1 866 205-5733 1 866 565-5700 1 866 574-3469 1 866 570-6550 Western Canada

Ontario

Quebec

Atlantic Canada

PUBLISHER Juan Malvestitti 416.236.7473 juan@modernempire.ca

Publisher’s Note C

Canada’s foodservice industry has faced its share of challenges over the years, but nothing will affect the industry more than a labour shortage.

SENIOR DESIGNER Jay Hunt design@modernempire.ca CONTRIBUTORS Ruth Caceres, CTHRC J. Charles Grieco, OHI Jon Kiely, CTHRC SUBSCRIPTIONS Canada: One year $27.00 Elsewhere: $39.00 Single copy sales: Canada $9.00 Elsewhere: $12.00 Requests for permission to reprint or publish any portion of this magazine should be addressed to the publisher. PROFILE Magazine is published four times a year by

V I S I O N • S T R AT E G Y • R E S U LT S

PRESIDENT Juan Malvestitti CONTROLLER Florencia Rojas LEGAL Carla Bracamonte 2087 Lake Shore Blvd, W. Ste. 1607 Toronto, Ontario M8V 4G3 www.modernempire.ca PROFILE Magazine welcomes letters but accepts no responsibility for unsolicited manuscripts or photographs. Canadian Publications Mail Product Sales Agreement No. 41608530

Although, 31 cents out of every dollar spent at a restaurant goes to employee wages and benefits, Foodservice operators across Canada are still having difficulty finding and retaining skilled and entry level workers.

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Foodservice truly is a people business. It is one of the most labour intensive industries in Canada, employing more than one million people. However, operators are losing workers to other, higher-paying industries.

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A poorly staffed restaurant has a direct impact on customer service and product quality, furthermore resulting in lost business, a reduction in investment and diminished growth for the overall economy.

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Leading industry groups such as the Canadian Restaurant and Foodservices Association and the Canadian Tourism Human Resource Council have been instrumental in lobbying for the revision of existing government policies to change the labour landscape and alleviate the severe labour shortage in the foodservice industry. Changes to the Provincial Nominee Program and the Temporary Foreign Worker Program were recently introduced and are being credited as a step in the right direction.

The B.C. government listened to our industry and clearly understands we are facing a people shortage, not just a skills shortage,

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- Mark von Schellwitz, V.P, CRFA Western Canada

As we explore the intricacies of this shortage, we hope to equip you with the necessary insight and required tools to battle this most important issue. Lastly, I would like to extend a special thank you to the Ontario Hostelry Institute for inviting us to participate in this year’s Top 30 under 30 and their ongoing commitment to recognizing top young performers in the field of hospitality. Best Regards,

All contents copyright Modern Empire Inc.

For more information visit www.foodservice.heinz.ca or call your Heinz Sales Representative.

Printed in Canada on recycled paper.

Juan Malvestitti, Publisher

® HP is a registered trademark of HP Foods Limited and is used under license.

1 866 205-5733 Western Canada

1 866 565-5700 Ontario

1 866 574-3469 Quebec

1 866 570-6550 Atlantic Canada

PUBLISHER Juan Malvestitti 416.236.7473 juan@modernempire.ca

Publisher’s Note C

Canada’s foodservice industry has faced its share of challenges over the years, but nothing will affect the industry more than a labour shortage.

V I S I O N • S T R AT E G Y • R E S U LT S

New

HP SAUCE ®

Forever Full

™

• Attractive Forever Full

• Shatter-resistant plastic bottle

The B.C. government listened to our industry and clearly understands we are facing a people shortage, not just a skills shortage,

™

look

• Convenient, larger format • Improved dispensing and evacuation • Full support from Heinz Food Service Sales

- Mark von Schellwitz, V.P, CRFA Western Canada

All contents copyright Modern Empire Inc.

For more information visit www.foodservice.heinz.ca or call your Heinz Sales Representative.

Printed in Canada on recycled paper.

Juan Malvestitti, Publisher

® HP is a registered trademark of HP Foods Limited and is used under license.

1 866 205-5733 Western Canada

1 866 565-5700 Ontario

1 866 574-3469 Quebec

1 866 570-6550 Atlantic Canada

Labour Shortage Overview by Lucie Grys

Distribution of Foodservice Employees by Age

Various measures have been discussed to help stem the tide. Revamping some of the restrictions to the Employment Insurance system in an effort to attract more workers is one possible solution. Unemployment rates in Western Canada, for instance, are at an almost 30-year low, but the youth unemployment rate in parts of Canada still remains high.

15-19

55-64 6.1% 20-24 25-34 35-44 45-54 55-64

Canadian Employment by Industry

65+ 0.7%

6.1%

13.2%

17.7%

18.3%

19.8%

24.3%

Source: CRFA Labour Force Survey, Statistics Canada

Anounced this past February by the Minister of Economic Development in British Columbia, revisions to a pilot program geared to the province’s hospitality and tourism employers were revealed.The Provincial Nominee Program (PNP) will enable employers to offer permanent positions to employees who have entered Canada as temporary foreign workers. Semiskilled positions such as counter help and line cooks that were previously excluded from the PNP are now included.

The federal and provincial governments could provide various resources and incentives to help Canadians temporarily or even permanently relocate to areas of Canada experiencing chronic labour shortages. Government needs to rewrite outdated

“

ith dwindling birth dates and retiring baby boomers, it isn’t surprising that the Conference board of Canada is estimating a labour shortage in excess of one million people in our country by the year 2015. While the projections may cast a dim shadow on the foodservice industry, there are some recent initiatives and incentives to help combat the looming crisis. It is estimated that the foodservice industry will require an additional 200,000 employees over the next decade. While other industries in Canada are reducing their workforce through technological and automated advancements and outsourcing to foreign countries, people remain a vital component in the foodservice sector. The industry has grown steadily for the past 60 years and, according to a report done by the Canadian Restaurant and Foodservices Association called Help Wanted:The Labour Shortage Crisis and Canada’s Foodservice Industry, there are more people in the foodservice industry today than in agriculture, forestry, pulp and paper, banking and oil and gas extraction combined. Despite the numbers of people in the industry, many foodservice businesses are feeling the pinch as employees transfer their skill sets to other higher-paying industries. With the crisis being most acute in Alberta, there is growing evidence showing that foodservice enterprises are being affected across the country in varying degrees of severity. A restaurant that has a staffing shortfall simply cannot provide the same level of service.

This ultimately can result in lost of business, impacting not only the staff and owners, but the local community and overall economy. It’s a ripple effect that is being felt across the board.

legislation and policies that relate to today’s market conditions and remove any bureaucratic barriers that may impede much needed change. Mark von Schellwitz, Vice President of the Canadian Restaurant and Foodservices Association for Western Canada, has been instrumental in lobbying for the revision of existing government policies to change the labour landscape in Brittish Columbia and Alberta.

The B.C. government listened to our industry and clearly understands we are facing a people shortage, not just a skills shortage,

remarks von Schellwitz in a public statement.“This pilot project will allow some of the exceptional temporary foreign-service workers in the foodservice industry to exceed as new permanent Canadian residents. We’re confident the program will be a success and these occupations will be added to the permanent PNP elegibility list”, he adds. Plans to implement a similar program in Alberta are well underway. Last year, Ottawa also announced a number of improvements to the Temporary Foreign Worker Program.The program enables employers to fill vacant positions when Canadian candidates are not available.Temporary foreign workers, traditionally only allowed to stay in Canada for one year under the existing program, are now able to stay for two years. Employees who are currently in Canada for on a Temporary Foreign Worker Permit can also apply for the 12-month extension. Employers can complete the Foreign Worker Application known as an Application for a Labour Market Opinion online and processing time has been drastically reduced. With the Olympics only two years away, one would naturally assume that the labour pool would increase as people want to be a part of the Olympic fever. While this might be true in some instances, von Schellwitz says “there is also a fear that exists. As job creation increases in the hospitality industry, many employers will loose employees, albeit temporarily, because of the huge draw of the games”. Venues within the main hubs of the Olympics, namely Vancouver and Whistler will do well, but he encourages other businesses in outlying areas to manage their expectations. In spite of the recent changes to the Temporary Foreign Worker Program and the addition of the semiskilled labour to the PNP program in British Columbia, there is no one magical solution.

continued on next page

Labour Shortage Overview by Lucie Grys

Distribution of Foodservice Employees by Age

15-19

55-64 6.1% 20-24 25-34 35-44 45-54 55-64

Canadian Employment by Industry

65+ 0.7%

6.1%

13.2%

17.7%

18.3%

19.8%

24.3%

Source: CRFA Labour Force Survey, Statistics Canada

“

This ultimately can result in lost of business, impacting not only the staff and owners, but the local community and overall economy. It’s a ripple effect that is being felt across the board.

The B.C. government listened to our industry and clearly understands we are facing a people shortage, not just a skills shortage,

continued on next page

Anticipated Demand for Foodservice Employees

Your Recipe for Success.

Experts recommend taking a multi-faceted approach to the labour shortage and to consider many elements:

Advertising to ethnic communities in local papers may also be productive as well as approaching rural areas and Aboriginal leaders asking fortheir support in staff recruitment, comments von Schellwitz.

With over one million Canadians directly involved in the foodservice industry, an estimated 181,000 additional employees are needed according to the Canadian Tourism Human Resource Council.

“

• Becoming better employers and offering skills based and managerial training will help draw new and retain and existing employees. • Cross-training people so they are skilled at doing a variety of tasks keeps employees fulfilled and able to step in when another employee is absent. • Adding more spaces in hospitality programs at both the secondary and post-secondary level will help ease the shortage of skilled workers in the sector. • Attracting and employing largely under-utilized labour pools such as semi-retired, retired, Aboriginal and disabled people can help breach any struggles in finding workers. • Modifying the Canada Pension Plan claw back would allow retired people to pick up hours of work along with additional income without the fear of reducing their pensions. • Offering better benefits such as top-ups for maternity leave and paid vacation time might be appealing to potential employees.

The labour shortage is the number one issue for CRFA members in British Columbia and Alberta, says von Schellwitz,“While not a permanent solution, changes to the Temporary Foreign Worker Program [and the Provincial Nominee Program] are a step in the right direction and recognize that we’re dealing with a people shortage, not just a skills shortage”. One can hope that recent changes to existing governmental policies in Western Canada will impact the rest of the country as well.

Average Household Spending at Restaurants (per year) British Columbia: Alberta: Ontario: Manitoba: Prince Edward Island: Quebec: Saskatchewan: Nova Scotia: New Brunswick: Newfoundland and Labrador: Source: CRFA Foodservice Facts 2007; Statistics Canada, Eating Patterns in Canada October 2006

$2,293 $2,252 $2,057 $1,777 $1,664 $1,651 $1,594 $1,504 $1,486 $1,096

Source: CRFA Foodservice Facts 2007; 2005 Survey of Household Spending; Statistics Canada

Back-of-the-House Visible or not, Cintas uniforms, accessories, mats and other products promote order, hygiene and performance in the most important part of any restaurant. • Chefwear and food prep uniforms • Kitchen mats, anti-fatigue mats, soaps and sanitizers With Cintas in the kitchen, you’ll be certain to send a positive message of credibility and professionalism. www.cintas.ca

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Anticipated Demand for Foodservice Employees

Your Recipe for Success.

Experts recommend taking a multi-faceted approach to the labour shortage and to consider many elements:

With over one million Canadians directly involved in the foodservice industry, an estimated 181,000 additional employees are needed according to the Canadian Tourism Human Resource Council.

“

Cintas is the industry expert, providing garments and accessories. Front-of-the-House Once mostly behind the scenes, chefs and kitchen staff are more visible than ever with today’s open kitchens. • Uniforms for waitresses, waiters, bartenders, cocktail servers and more • Casual, formal, thematic, and custom uniforms Back-of-the-House Visible or not, Cintas uniforms, accessories, mats and other products promote order, hygiene and performance in the most important part of any restaurant. • Chefwear and food prep uniforms • Kitchen mats, anti-fatigue mats, soaps and sanitizers With Cintas in the kitchen, you’ll be certain to send a positive message of credibility and professionalism. www.cintas.ca

For more information, contact Leslie Molin at 905.565.4841.

Source: CRFA Foodservice Facts 2007; Statistics Canada, Eating Patterns in Canada October 2006

Source: CRFA Foodservice Facts 2007; 2005 Survey of Household Spending; Statistics Canada

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Report on Tourism By Jon Kiely

anada’s growing labour shortage has garnered a lot of attention in recent years, especially within the tourism sector. Tourism employers are already finding it difficult to recruit enough workers, and the situation is getting worse. In the years ahead, the challenge of finding enough people to fill tourism jobs will intensify - so much so that missed opportunities and the inability to meet potential business demand could cost the industry billions of dollars. By 2025, the potential labour shortage could reach 348,000 jobs. This shortage represents the cumulative effect of missed opportunities and unfulfilled demand over the 20 years between 2005 and 2025. The projected labour shortages in the tourism sector will be caused by the increasing demand for labour during a period when the labour force is expected to experience a sizable shift in its growth and composition. Traditionally, the tourism sector has relied heavily on young people as a source of labour. However, the rate at which young people are entering the labour force is decreasing, and the competition to attract young people is increasing from other sectors. Continued growth in demand for tourism goods and services contrasted with slower growth in Canada’s labour force are two of the main reasons for the growing imbalance between labour demand and labour supply in the tourism sector. Falling fertility rates, longer lifespans, and the aging of the baby-boom generation will all contribute to the aging of Canada’s population, which will limit labour force growth. And, although immigration rates are rising, Canada’s current immigration focus on highly skilled immigrants is unlikely to fill the gap in tourism jobs. Indeed, the negative economic effects of these demographic changes are magnified in the tourism sector. On the demand side, Canadian baby boomers are expected to significantly increase their consumption of tourism and tourism-related goods and services over the forecast period. What’s more, similar baby booms in Canada’s key international markets are also boosting foreign tourism demand in Canada. Thus, demand for tourism goods and services is expected to keep growing at a healthy pace. By contrast, on the supply side, the exodus of the baby boomers from the labour force is creating an increasing void of unfilled positions. Because of declining fertility rates, fewer young people are available

Total Tourism Employment: By Industry Group 2005 Tourism Industry

2006

2007

# of Group

# of people

employed

1,651,200 202,700 753,300

100.0% 12.3% 45.6%

1,660,800 191,500 775,200

100.0% 11.5% 46.7%

1,742,400 203,900 814,400

100.0% 11.7% 46.7%

383,600

23.2%

379,700

22.9%

416,500

23.9%

259,800 51,800

15.7% 3.2%

266,500 47,900

16.0% 2.9%

256,800 50,800

14.7% 2.9%

people

Tourism Accommodations Food & Beverage Services Recreation & Entertainment Transportation Travel Services

Source: Canadian Tourism Human Resource Council.

State of the Industry

to fill this void, thus limiting a critical source of labour supply for the tourism sector. The Canadian Tourism Human Resource Council (CTHRC) worked with the Canadian Tourism Research Institute of The Conference Board of Canada to develop and apply a new model that estimates the gap between labour supply and demand. This work builds on the Canadian Tourism Research Institute’s extensive expertise in measuring the impact of tourism in Canada. CTHRC tracks employment information for food and beverage service industries included in Statistics Canada’s Tourism Satellite Account. This includes full-service restaurants, limited service eating places and bars. It does not include food and beverage services provided in other industries such as institutions, hospitals, food service contractors or mobile food services. Projections for the potential labour shortage in the tourism sector indicate that the labour shortage will grow significantly between 2005 and 2025. In 2005, there was an estimated shortage of nearly 25,000 jobs in the tourism sector. By 2025, this figure could rise to nearly 350,000 jobs. (See table below.) The Canadian tourism sector is a key component of local economies as well as the national economy. The Conference Board of Canada’s forecast of the potential demand for tourism goods and services in Canada suggests that spending could rise from $130 billion in 2005 up to $220 billion in 2025 (at inflation-adjusted 1997 dollars). Growth in spending from domestic and foreign tourists on tourism good and services in Canada could increase from $54.4 billion in 2005 to $101.7 billion in 2025, a potential gain of 86 per cent. In order to meet this demand, however, the sector will need to attract an increasing number of workers. In 2006, there were 1.67 million Canadians, or 10.1% of the Canadian workforce, employed by the approximately 190,000 businesses in the Canadian tourism sector. These employees work in five industry groups: Accommodations, Food & Beverage Services, Recreation & Entertainment, Transportation, and Travel Services. While some of these businesses are large corporations, 80% are small and medium-sized enterprises having fewer than 20 employees. While people of all ages work in the tourism sector, one-third (33%) are between the ages of 15-24, which is double the average of the entire Canadian workforce. It is not surprising then, that 37% of the tourism workforce are seasonal or part-time employees. Contrary to common misperceptions, 51% of tourism employees have some level of post-secondary education, and the proportion of the tourism labour force that were born outside of Canada is just 1% higher than the

percentage for Canada as a whole. While employment demand in Canada is expected to grow at 1.1% per year, tourism employment is projected to increase 1.8% annually, which represents more than 30,000 new tourism jobs per year. The food & beverage group is the largest in terms of number of employees, accounting for nearly 47% of total tourism employment. It is projected that employment demand will grow by 1.8% per year until 2015. That equates to approximately 14,100 new jobs per year. This does not account for hiring as a result of turnover. According to a survey conducted by Canadian Restaurant and Food service Association on 25 national and regional foodservice chains, average annual turnover rate for an hourly paid employee is 67% at a quick-service restaurant or a casual/family dining restaurant. Growth is projected to be the largest in Ontario, Alberta, and British Columbia. There is an interesting trend in the gender distribution of occupations. The service oriented, front-line positions are dominated by women. Occupations such as cooks, chefs and bakers are dominated by men. Managers are more likely to be men, whereas supervisors are more likely to be women. This industry group does attract more immigrants than the total tourism sector or the Canadian labour force as a whole. As the labour force shifts to depending on immigration for growth, food and beverage services will need to compete with the other sectors attracting new immigrants. As it stands, the Canadian immigration policy focuses on bringing professionals to Canada. If this does not change, it will also affect this industry group’s ability to compete for labour. Other sectors that may be able to offer employment in the professionals’ area of expertise may be prepared to absorb immigrants more easily into the work place. The tourism sector has long been considered one that offers only entry-level, low-paying jobs. While it is true that this is a sector that has ample frontline positions, which makes the sector the first employment experience for so many, the breadth of employment options offers a number of well-paying positions as well. That being said, we are currently feeling the effects of the front end of a labour shortage that only going to deepen. The different sectors of the Canadian economy are all in competition with one another to attract and retain top talent, whether for frontline or management positions. In this increasingly competitive landscape, employers are looking for ways to build the most competitive compensation and benefits packages they are able to.

Report on Tourism By Jon Kiely

Total Tourism Employment: By Industry Group 2005 Tourism Industry

2006

2007

# of Group

# of people

employed

1,651,200 202,700 753,300

100.0% 12.3% 45.6%

1,660,800 191,500 775,200

100.0% 11.5% 46.7%

1,742,400 203,900 814,400

100.0% 11.7% 46.7%

383,600

23.2%

379,700

22.9%

416,500

23.9%

259,800 51,800

15.7% 3.2%

266,500 47,900

16.0% 2.9%

256,800 50,800

14.7% 2.9%

people

Tourism Accommodations Food & Beverage Services Recreation & Entertainment Transportation Travel Services

Source: Canadian Tourism Human Resource Council.

State of the Industry

Compensation and Benefits In 2006 the CTHRC conducted the first comprehensive, national study on compensation and benefits across the sector. Market information from the report is based on data gathered from 1,153 organizations (51,754 incumbents). Bonus and Incentive Twenty percent of the full- and part-time employees in the study (7,847 incumbents) are eligible for some type of short term incentive program. Sixty-eight percent of executives, 44% of supervisory / management jobs and 15% of front line jobs are eligible for short term incentives. Of those eligible, 76% (5,971 incumbents) received incentive payouts.

The median bonus payouts range from 12% of base salary for the executive / owner level to 4% of base salary for front line staff. Incumbents in Alberta received the highest median bonus payouts, while employees in Newfoundland and Labrador received the lowest bonus payouts. Benefits The most prevalent benefits programs offered are extended health care (59% of organizations), employee life insurance (57% of organizations), long term disability (53% of organizations), and dental care (offered by 52% of organizations). Cellular phone with air time, mileage reimbursement, and employee discounts (travel or services) are the most common perquisites offered to the employees.

The most prevalent other perquisite program reported is free meals. Other free items reported include dry cleaning and laundry, use of company facilities, uniforms, tickets to events, employee recognition awards, parking, room and board, gift certificates, golf, staff appreciation parties, work footwear, and Air Miles. Subsidized housing and clothing allowance is another perquisite program reported. Professional development, another perquisite program, may include paid educational programs, staff training courses, informal conflict resolution programs, participation in Tourism Human Resource Organization industry programs, first aid training, and scholarships or bursaries for returning students.

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Three hundred and seventy participants provided details on their policies of splitting gratuities. Not surprisingly, the food and beverage services industry shows the highest prevalence of a policy to split gratuities among staff. Key findings include: • Gratuities are generally split among those employees who directly affect the service provided, both management and front line. • Most of the gratuity splitting policies reward employees involved with the preparation and service of food and beverages even if the primary industry of the organization is not food and beverage services. • Respondents reported various levels of management’s involvement in gratuity splitting policies. In some cases management is not involved at all; “This policy choice is left with the employees”, while in other cases polices are enforced by management; “Servers are required to tip out.” • In the food and beverage services industry the most common policy is for servers to “tip out” either a percentage of their tips or a percentage of their total sales to the support and kitchen staff. Tip pooling is only used occasionally. • When servers tip the support and kitchen staff out of their gratuities, the amount ranges from 10% to 50% of gratuities, with an average of 18%. • Another common method of gratuity splitting is for servers to tip the support and kitchen staff based on total food and beverage sales. The amount ranges from 1% to 4.5% with an average of 2.5% of sales. • In the accommodations industry tip pooling is the most common policy. Gratuities are usually added onto the banquet bill and then split amongst staff based on job function, often as per the collective agreement. • Management staff working within banquets and contracted events commonly receive 25% to 40% of gratuities. • For tip pools, most of the organizations distribute the pool based on hours worked. Others may split using a point system based on function and/or length of service. The CTHRC will continue to conduct research into labour market information, and share this information with the sector. The ability of employers to make decisions and take action to counter deepening labour shortages will be assisted by arming them with timely and accurate information. To learn more about the 2006 Total Tourism Employment study, or the National Compensation study, please visit www.emerit.ca. Plans to update the Total Tourism Employment study to incorporate the 2006 Census data and the 2007 Labour Force Survey and Business Register are underway. The National Compensation study will also be updated this fiscal. The Canadian Tourism Human Resource Council is funded through the Federal Government Sector Council Program.

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President’s Message The Ontario Hostelry Institute has recognized for some time that the demand for talented young rising-star hospitality professionals – managers, chefs and operational staff, far exceeds supply. Why? As an industry, we have tended to traditionally view our human capital at times, and in certain quarters, as an expendable resource. Increasingly, because of out-dated, low-return compensation models and onerous working conditions, talented young people too often don’t view our industry as a viable long-term career option... And the non-hospitality world, recognizing the transferable, highly regarded skills that hospitality professionals possess, has begun to aggressively target our most promising workers for recruitment to other retail and professional industries. “The Top 30 under 30 initiative has created a recognition and awards vehicle that is designed to recognize the hospitality industries top young performers in the field of hospitality. This recognition will go a long way to help to create and inspire a future generation of hospitality leaders. This recognition program will make the difference that ensures the future of the industry and a career-long commitment to excellence and professionalism within the ranks of our industry” Men and women who are actively engaged in the hospitality industry and committed to a life-long career in this profession and who will be under 30 years of age as of December 30th, each year, are eligible to be nominated. The Top 30 under 30 will recognize, on an annual basis, 30 exceptional hospitality industry performers from Ontario who are all under the age of 30. Nominees will be drawn from a cross section of the industry (including culinary, the hotels, and will include chain restaurants, one-offs/entrepreneurs, tourism related businesses, and suppliers and those currently working in fields related to the vineyard and wineries. We will also include a small number of front-line (service) employees within this very broadly based cross section of the entire industry as well. Nominees must be actively working in Ontario for the past 2-3 years and at the time of nomination.’ Nomination forms for the 2009 Top 30 under 30 will be posted on www.theohi.ca on September 15, 2008. Those 30 successful nominees under 30 will be honored at our annual GOLD AWARDS DINNER on April 16, 2009. J. Charles Grieco,

President and Chair ! The Ontario Hostelry Institute

SELECTIONS COMMITTEE

J. Chares Grieco, Committee Chair, Chair and President - The Ontario Hostelry Institute Bruce McAdams, Committee Vice-Chair, The Oliver/Bonacini Group Jasmine Baker, The Drake Hotel Peter Bodnar - Rod, Tannin Fine Wines Garry Hallam, Conestoga College Norman Wolfson, Lecours Wolfson

President and Chair ! The Ontario Hostelry Institute

SELECTIONS COMMITTEE

NORMAN AITKEN

Age: 30 Employer: Juniper Kitchen & Wine Bar Position: Chef and Owner Industry Experience: 14 Years Favourite Quote: “Success will be realized if you stay focused and love what you do, understand that you can’t reach it with out your team behind you” Personal Quote

LATOYA ALLEN

Age: 27 Employer: Sheraton Centre Toronto Hotel Position: Engineering Coordinator Industry Experience: 6 years Favourite Quote: “Life is filled of uncertainties. That is why the sky is never my limits” Personal Quote

NICK AUF DER MAUER

Age: 26 Employer: Far Niente Restaurant Position: Chef de Cuisine Industry Experience: 11 years Favourite Quote: “You must take action now that will move you towards your goals. Develop a sense of urgency in your life” Les Brown

JACKIE BOURGEOIS

Age: 28 Employer: The Fairmont Royal York Hotel Position: York’s Kitchen Manager Industry Experience: 6 years Favourite Quote: “Work like you don’t need the money, love like you’ve never been hurt, and dance like no one is watching.” Satchel Paige

JASON BRAGANZA

Age: 29 Employer: Angus Glen Golf Club Position: Director of Hospitality Industry Experience: 12 years Favorite Quote: “If you’re helping move a piano… Don’t be the guy that goes for the stool” My mentor the late G. Bain Arnold

CYRUS COOPER

Age: 22 Employer: Ryerson University Position: Student,Ted Rogers School of Hospitality and Tourism Management Experience: 3 years Favorite Quote: “Whether you think you can or you can’t your probably right” Henry Ford

TANYA AVOLEDO-VADORI

Age: 29 Employer: Maple Leaf Sports & Entertainment Ltd. Position: Manager, People Development Industry Experience: 5 years Favourite Quote: “Live with intention. Walk to the edge. Listen Hard. Practice wellness. Play with abandon. Laugh. Choose with no regret. Continue to learn. Appreciate your friends. Do what you love. Live as if this is all there is” Mary Anne Roadacher-Hershey

HAYLEY BISHOP

Age: 29 Employer: Stratus Vineyards – full-time; Niagara College – part-time Position: Hospitality & Retail Manager Industry Experience: 7 years Favourite Quote: “What would life be if we had no courage to attempt anything?” Vincent van Gogh

MARK CUFF

Age: 29 Employer: The Living Vine Position: Owner Industry Experience: 10 years Favourite Quote: “The harder I work, the luckier I get” My Father

ELIZABETH EDE

Age: withheld Employer: ACE Bakery Position: Foodservice Representative Industry Experience: 9 years Favourite Quote: “Life is either a daring adventure or nothing” Helen Keller

NORMAN AITKEN

LATOYA ALLEN

NICK AUF DER MAUER

JACKIE BOURGEOIS

JASON BRAGANZA

CYRUS COOPER

TANYA AVOLEDO-VADORI

HAYLEY BISHOP

MARK CUFF

Age: 29 Employer: The Living Vine Position: Owner Industry Experience: 10 years Favourite Quote: “The harder I work, the luckier I get” My Father

ELIZABETH EDE

Age: withheld Employer: ACE Bakery Position: Foodservice Representative Industry Experience: 9 years Favourite Quote: “Life is either a daring adventure or nothing” Helen Keller

DERRICK FISHER

Age: 30 Employer: Greyhawk Golf & Country Club, Cumberland, ON Position: Executive Chef Industry Experience: 15 years Favourite Quote: “The people you surround yourself with, are the people that make you who you are” Personal Quote

ERIC GIBERSON

Age: 29 Employer: Park Hyatt Toronto Position: Front Office Manager Industry Experience: 9 years Favourite Quote: “Be nice to people on your way up because you meet them on your way down” Jimmy Durante

JONATHAN GONSENHAUSER

Age: 24 Employer: Panagaea Restaurant Position: Sommelier / Restaurant Manager Industry Experience: 7 years Favourite Quote: “Nothing makes the future look so rosy as to contemplate it through a glass of Chambertin” Napoleon Bonaparte

GWEN HISELER

Age: 27 Employer: Barberian’s Steak House Tavern Position: Head Line Cook, Special Events Coordinator/ Caterer, Food Stylist Industry Experience: 6 years Favourite Quote: “Too few people understand a really good sandwich” James Beard

JEFF HYSLOP

Age: 27 Employer: InnVest Hotel Real Estate Investment Trust Position: Manager, Assset Management Industry Experience: 10 years Favourite Quote: “Since we can’t export the scenery, we’ll have to import the tourists” William Van Horne when building the Banff Springs Hotel

Ryan Kowalyk

Age: 30 Employer: Kultura Restaurant Position: Chef de Cuisine Industry Experience: 12 years Favourite Quote: “Ability is what you’re capable of doing. Motivation determines what you do. Attitude determines how well you do it” Author Unknown

LINDSAY GROVES

Age: 26 Employer: Via Allegro Ristorante Position: Sommelier Industry Experience: 17 months Favourite Quote: “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty” Sir Winston Churchill

LEAH LETFORD

Age: 26 Employer: Great Wolf Lodge - Ripley’s Niagara Waterpark Resort Position: Ambassador of Fun - Director Level Industry Experience: 3 years Favourite Quote: “You have brains in your head.You have feet in your shoes.You can steer yourself, any direction you choose” Dr. Seuss

SALEEM MALIK ZUZANA HARSAGHY

Age: 28 Employer: Oliver & Bonacini Café & Grill, Bayview Village Position: Sous Chef Industry Experience: 10 Years Favourite Quote: “Life is great” Personal Quote

Age: 30 Employer: Granite Club Position: Banquet Services Manager Industry Experience: 8 years Favourite Quote: “The man of knowledge is the one who recognizes that what is known is very little compared to what is not known, and as a result he considers himself ignorant, and accordingly he increases his efforts to know more by going out in search of knowledge” Author Unknown

DERRICK FISHER

ERIC GIBERSON

JONATHAN GONSENHAUSER

GWEN HISELER

JEFF HYSLOP

Ryan Kowalyk

LINDSAY GROVES

LEAH LETFORD

SALEEM MALIK ZUZANA HARSAGHY

Age: 28 Employer: Oliver & Bonacini Café & Grill, Bayview Village Position: Sous Chef Industry Experience: 10 Years Favourite Quote: “Life is great” Personal Quote

JASON ROLLER

Age: 28 Employer: Diamond Estates Wines & Spirits Ltd. Position: Winemaker Industry Experience: 5 years Favourite Quote: “Water separates the people of the world; wine unites them” Anonymous

SCOTT ROYCE

Age: 27 Employer: Harvest Restaurant, Picton ON Position: Sous Chef/Saucier Industry Experience: 10 years Favourite Quote: “Cooking is like love, it should be entered into with abandon or not at all” Harriet van Horne

DAVID SALTER

Age: 28 Employer: Balsam Restaurant Position: Owner Industry Experience: 13 years Favourite Quote: “You’re only as good as your last service” Sebastien LeGoff

AMIT SETH

Age: 29 Employer: Saisethsons Hospitality Group Inc. Position: Managing Director Industry Experience: 3.5 years Favourite Quote: “Lead without title” Robin Sharma

MICHAEL SILVA

Age: 28 Employer: The TDL Group Corp. Position: Operations Manager, Special Projects Industry Experience:: 14 years Favourite Quote: “The true measure of a career is to be able to be content, even proud, that you succeeded through your own endeavors without leaving casualties in your wake” Allan Greenspan

MELISSA STUNDEN

Age: 26 Employer: Maple Leaf Sports & Entertainment Ltd. Position: Assistant Sommelier Industry Experience: 8 years Favourite Quote: “Live each day to the fullest for this is not a practice life” Author Unknown

MICHELLE THAM

Age: 22 Employer: Far Niente Restaurant Position: Line Cook Industry Experience: 4 years Favourite Quote: “Anyone can cook” Ratatouille

MATTHEW WORDEN

Age: 30 Employer: Wildcraft Grill Bar, Waterloo Position: Wine Portfolio Director and Server Industry Experience: 15 years Favourite Quote: “Don’t piss in my ear and tell me its not raining” Kelly Kwan

DAN YOUNG

Age: 29 Employer: Starwood Hotels & Resorts Canada Position: Public Relations Manager Industry Experience: Experience: 4.5 years Favourite Quote: “I don’t want to achieve immortality through my work. I want to achieve it through not dying” Woody Allen

Zanette Zukowski

Age: 28 Employer: The Drake Hotel Position: Senior Event Coordinator Industry Experience: 11 years Favourite Quote: “A man is not old until regrets start taking place of dreams” Anonymous

JASON ROLLER

Age: 28 Employer: Diamond Estates Wines & Spirits Ltd. Position: Winemaker Industry Experience: 5 years Favourite Quote: “Water separates the people of the world; wine unites them” Anonymous

SCOTT ROYCE

DAVID SALTER

Age: 28 Employer: Balsam Restaurant Position: Owner Industry Experience: 13 years Favourite Quote: “You’re only as good as your last service” Sebastien LeGoff

AMIT SETH

Age: 29 Employer: Saisethsons Hospitality Group Inc. Position: Managing Director Industry Experience: 3.5 years Favourite Quote: “Lead without title” Robin Sharma

MICHAEL SILVA

MELISSA STUNDEN

MICHELLE THAM

Age: 22 Employer: Far Niente Restaurant Position: Line Cook Industry Experience: 4 years Favourite Quote: “Anyone can cook” Ratatouille

MATTHEW WORDEN

DAN YOUNG

Zanette Zukowski

Age: 28 Employer: The Drake Hotel Position: Senior Event Coordinator Industry Experience: 11 years Favourite Quote: “A man is not old until regrets start taking place of dreams” Anonymous

HR GUIDE

by CTHRC

An effective way to reduce the supply-demand imbalances is to find ways to raise productivity and to increase the availability of labour at the prevailing wage rate (rather than entering into a bidding war for workers). Good human resource practices that create and retain more productive employees, and increased incentives for under-represented labour pools (Aboriginals, recent immigrants, people with disabilities, and retirees) to work in the tourism sector will help businesses to fulfill the increasing demand for tourism products.

with new developments. By being proactive and supporting training and development on an ongoing basis, your employees will be able to work to their full potential and meet the changing demands of your customers. Research shows that a proper staff training program can increase positive employee feedback, reduce absenteeism, improve customer service, add sales, and decrease the need for supervision. It can also boost personal confidence and job satisfaction because employees feel valued, appreciated, and committed to your business. An increasing number of employers are now advertising that they assist employees with expenses in furthering their formal education, or in obtaining industry credentials or Professional Certification, such as the nationally recognized emerit certification (www.emerit.ca). Remember that training is not a one-time occurrence, and your ability to identify training needs and respond in-kind will be tied to your business success.

Advantage: Employers of Choice Employers who are able to attract and retain skilled labour through strong HR practices will have a distinct advantage in the tight labour market. Businesses have experienced success with a variety of strategies, including a good working environment with opportunities for advancement, training, recognition and rewards programs, and other incentives.

“

Creating a positive working environment requires planning and employee feedback. It is important that employees have trust and confidence in their senior leaders. Including all levels of your organization in the planning, implementation, and maintenance of your corporate objectives can also go a long way to making them feel that they have a vested interest in the business. Employees want to see their efforts as valuable and contributing to the prosperity of the company as a whole. Training When it comes to staff retention, productivity, and satisfaction, no other activity is more beneficial, or more misunderstood, than training. Canada has long been singled out amongst the G8 as having a

rather lacklustre approach to training and skills development. Statistics Canada noted that,

Investment in human capital, that is, in education and skills training, is three times as important to economic growth as investment in physical capital, such as machinery and equipment.

“

Canada’s growing labour shortage is making headlines, and its impact is being felt by an increasing number of employers across the country. What’s more, a recent study commissioned by the Canadian Tourism Human Resource Council (CTHRC) suggests the shortage will worsen significantly over the next 20 years as demand for tourism products increases and the available labour pool decreases. The largest labour shortfalls are anticipated in both the food and beverage industry and the recreation and entertainment industry. So how will this affect your business and what can you do to work through the crunch?

Solutions to the Labour Shortage

With the available labour pool at an alltime low, employers are beginning to view training as a viable undertaking to remain competitive in the struggle to retain staff. As your business evolves and changes, your employees will need to keep pace

Rewards, Recognition, Incentives A strong incentives program can help a business differentiate itself from the competition, and thereby better position itself to attract a bigger share of the available labour. The concept of employee rewards and incentives programs is not new, and there are as many different approaches as there are businesses. Incorporating a recognition program into your overall compensation package and actively promoting it internally and externally can be an integral component of your attraction and retention strategy. When setting up a new program, employers should ensure that they involve employees in planning from the outset. The plan should also take into account incentives that will appeal to some of the under-utilized labour pools because these

are the demographic groups that will become increasingly crucial to the success of businesses’ attraction and retention strategies. While there are no concrete rules as to what activities, initiatives or behaviors should be recognized, some of the most popular include: productivity/quality, customer service, peer recognition, superior performance, safety, and length of service. The key here is to ensure that the activities being recognized are broad enough to allow most of the staff to be eligible for one or more of them. Advancement Opportunities Creating a work environment where there are clear and obtainable career options available to employees is an excellent HR practice. Employees need to see they can have a future with the company. It is imperative that new hires are shown their potential career path right from the start. Allowing for flexibility in how an employee navigates their career path within your company is also an attribute of companies who have cultivated an employer of choice persona. The “one size fits all” approach no longer works in an environment where work-life balance, single parenthood, cultural considerations, and the speed of change are the norm. Companies looking to be choice employers need to value their existing employees by making sure that job postings are circulated internally, and that qualified candidates from within the organization are encouraged to apply. Job postings need to clearly state your commitment to your employees, and highlight the attributes that job seekers see as matching their own values and aspirations. Recent HR Award winners Brookstreet Hotel and Tigh-Na-Mara Seaside Spa Resort and Conference Centre have inte-

grated innovative HR practices into their properties, and are reaping the rewards. Located in Parksville, British Columbia, Tigh-Na-Mara’s HR strategies include specialized training programs for every level of employee, a co-op program, and a range of performance and long-service awards. They also assist employees in furthering their educational goals, and offering the 240 team members many resort perks, from spa services to free parking. Ottawa’s Brookstreet has received multiple awards for its innovative S.P.I.C.I.E.R. values - Sensational experiences, Passion, Integrity, Commitment, Innovation, Empowerment, and Respect. These values are incorporated into every element of Brookstreet, from orientation to its peer-nominated awards. It consistently reviews its values and workplace practices, soliciting feedback from partners about ways to enhance the performance of the hotel – both from a guest and a staff standpoint. The commitment to keeping an open dialogue with partners is clearly a success: internal surveys indicate that 93% of partners are proud to work at Brookstreet, and 91% would recommend it as a great place to work. Alternative Labour Pools As young, post-secondary students—a traditional source of labour for the tourism sector—become a smaller demographic, alternative labour pools offer a potential solution for the tourism labour shortages. There are a number of candidate pools that have not been fully explored, but have a variety of characteristics ideally suited to the tourism sector. These groups include: people living with disabilities, Aboriginal peoples, new immigrants, and mature workers/retirees. People living with disabilities represent a non-traditional labour pool that should be explored further. With so many occupa-

HR GUIDE

by CTHRC

“

rather lacklustre approach to training and skills development. Statistics Canada noted that,

Investment in human capital, that is, in education and skills training, is three times as important to economic growth as investment in physical capital, such as machinery and equipment.

“

Solutions to the Labour Shortage

tions in tourism, there are employment opportunities to showcase many different kinds of abilities. Focus group research indicates that this candidate pool is eager to work and be ambassadors for other people living with disabilities. As with all candidates, this group looks for employment in a positive work environment, free of discrimination. Employers of choice are those who are supportive of the abilities of candidates, and are flexible and accommodating of their needs. Along with being ambassadors for others, candidates look for ways in which to build their own skills sets, express their independence, and be involved in personal interests. The Delta Halifax and the Delta Barrington in Halifax have longtime kitchen workers who have speech and hearing disabilities. They have created workplaces that provide acceptance and a comfortable work environment for these employees to work efficiently and effectively despite their lack of communication ability. An interpreter is brought in at the hotel’s expense four to six times a year for training, upgrading, performance management, and reviews. The hotels include this expense in their budgets. If there is a change in equipment or methodology, or new standards to be achieved, the use of an interpreter ensures and assures there is full understanding and comfort with the changes by both men. Reaching this labour pool through the organizations that serve them is one of the best methods of recruiting. Disability Employment and Resource Agencies such as Link Up, the March of Dimes, CNIB, MS Canada, Canada Paraplegic Association, among many others, are great communication points. Magazines and publications aimed at each community are also useful tools in recruiting. Aboriginal peoples are rich and fascinating in their diversity; the knowledge and personal experience that they can share is invaluable to the tourism sector. In the Canadian population, Aboriginal peoples are the fastest growing demographic, offering a wealth of possibilities for employment recruitment.

Due to the ranges of age and experience in this labour pool, employment needs and aspirations vary. For the younger candidates, issues include job security, flexible schedules to accommodate school and personal interests, and a positive, fun work environment. Adults offer more experience and a wider skill set, and look for ways to work in an area that suits their interests. Professional training and advancement opportunities are important to all looking to enter the field. Gisele Martin, co-owner of Tla-ook Cultural Adventures, a canoe-based touring company that operates out of Tofino, BC, is a member of the Tla-o-qui-aht First Nation. She and her husband started their own business with the assistance of the Nuuchah-nulth Economic Development Corporation’s (NEDC) youth entrepreneurship program, which assists young people from the community who are starting business by providing loans, advice, workshops and mentors. With the growth in cultural tourism, the company is expanding, and Martin is looking to hire youth from her own community and give other people the same opportunities she has had in the past decade. To reach future employees in this group, consider sponsoring organizations such as band councils and community centres, which can be excellent resources for matching employers with candidates. Aboriginal-specific online job boards, such as the Aboriginal Canada Portal, are another good option. New Canadians—people who have immigrated within the last two to five years—face challenges in the search for work that many cannot fathom. Education and experience are earned over many years and with much hard work. Imagine reaching a professional goal, and then moving to a country where these credentials are not often recognized. This is a hardship faced by many new Canadians. The tourism sector, with its many occupations and interests, is a great place for new Canadians to work. The employment needs of this labour group vary widely. For some, patience with language barriers is essential, as can-

didates learn English and French. Sensitivity to culture and religion is also very important, as this might alter uniforms, schedules, and job capabilities. As with all groups, a positive, supportive environment, free of discrimination is invaluable. This labour group has much to offer, and merely needs the chance to show it. The Westin Grand, Vancouver has developed a recruitment resource that is a winning situation for both the hotel and its existing employees. An employee referral incentive program assists the hotel in finding new workers. Staff members, originally from the Philippines, recommend a relative who has newly arrived in Canada. While the new recruit may not have references, the hotel takes them on, rewarding the referring employee once the new employee successfully passes the three month probation period. Language difficulties are eliminated during training as staff speaking the same language are paired with new employees. Building on the family relationships, the program is working very well in finding and retaining employees. Networking with people within their cultural community is often a way new Canadians find employment opportunities. Therefore, community centres, newcomer associations, language training centres, and community newspapers in the candidates’ mother tongues are effective ways to reach this labour group. Immigration offices (if nearby) also offer employment counselling, and are great links to candidates. Recent retirees, looking to change the parameters of their professional lives so that they have more time to spend on hobbies and other interests, are well-suited to the part-time or seasonal work is that is often the nature of the tourism sector. Reduced hours allow for time to explore personal interests, and seasonal employment opens up time for travelling. These candidates are interested in making a contribution through their enthusiasm and experience, and are not seeking work that requires added responsibilities. In recruiting from this labour pool, employers gain staff with experience, confidence, and innumerable transferable skills. Appealing to the interest in community involvement and public interaction will help employers reach this demographic. This phase of life is about enjoyment, and employers who illustrate how retirees can give back while having fun will be successful in obtaining employees from this valuable resource.

The Great George Hotel in Charlottetown, P.E.I., benefits from the experience and maturity of Eunice Kiersted, its 59-year-old executive housekeeper, who loves the job’s flexibility and the intimate nature of the hotel. Coming into the tourism sector only four years ago, her people skills and strong work ethic have helped her quickly learn the ins and outs of the position. The new position required no weekends, no holidays, and most importantly to Kiersted, it was seasonal, allowing her to pursue other interests and spend time with family and friends. Challenges include the sometimes physical nature of the job, but more often she finds the toughest part is communicating with her culturally diverse staff. In this capacity, she says, her age and life experiences are definitely an asset. Community centers and community newspapers are excellent tools for reaching this labour group, and national news sources (print, radio and television) are best for advertising positions. Social and recreational groups often involve aspects of tourism, and should be used to promote positions. Each of these labour groups has unique benefits to offer employers, as well as unique needs as employees. It is important that employers create a strategic approach to recruiting candidates from these pools, in order to formulate a process that will be efficient, and a relationship that will be mutually beneficial. Employers must consider the ways in which candidates can be best suited to the available jobs. Positions ranging from frontline to behind the scenes will appeal to different abilities and personalities. It is the responsibility of the employer to ensure a safe and comfortable work environment for every employee. An open dialogue with candidates is the best method of ensuring this exists. Overall, there is no “one-size-fits-all” solution for tourism’s labour-shortage issues. Addressing these issues will require specific solutions to specific challenges, especially for smaller operators and businesses operating in rural areas. Yet, by appealing to diverse labour groups through a variety of incentives and by being an employer of choice with a flexible, supportive work environment, your business will be better prepared to handle the labour shortfall. To learn more, please visit www.discovertourism.ca.

Temporary Foreign Worker Program

by CTHRC

3. Prepare the employment contract. It is the employer,

and not a third-party recruiter that enters into an employment contract with the temporary foreign worker.

4. Complete and submit your Foreign Worker Application (LMO

application) to Service Canada, along with the letter, employment contract, and proof of unsuccessful recruitment efforts

The Temporary Foreign Worker (TFW) Program is a partnership between three government agencies: • Human Resources Development and Social Development Canada (HRSDC)/Service Canada, • Citizenship and Immigration Canada (CIC) and • Canadian Border Services Agency (CBSA).

5. Interview and recruit prospective employees

The purpose of the TFW Program is to help Canadian employers address their labour and skill shortage needs by authorizing the temporary employment of foreign workers in Canada.

6. Prepare and send a formal job offer to the new employees, along with the employment contract and a copy of the

The program has been traditionally used in Canada to bring in highly-skilled professionals, seasonal farm workers (Seasonal Agriculture Workers Program- SAWP) and caregivers (Live-in Caregiver program).

7. Employees submit an application for a work permit to CIC once they receive all documentation.

The TFW Program, as it relates to the tourism industry, allows employers to hire Temporary Foreign Workers (TFWs) for a maximum two years and under two main skill categories as defined by the National Occupational Classification System: • high-skilled, designated as NOC codes O, A and B (e.g. chefs, ski instructors) and • low-skilled, designated as NOC codes C and D (e.g. housekeeping room attendants, front desk agents) There are two schemes under the TFW Program that expedites the application process for employers wishing to recruit TFWs into certain occupations: • Regional Lists of Occupations under Pressure, and • Expedited Labour Market Opinion Pilot Project for B.C. and Alberta Recruiting lower-skilled workers can be more expensive than recruiting high-skilled workers. The government requires employers to cover all recruitment and transportation costs -including return airfare for low-skill workers (employers cannot recoup travel costs). Employers are also responsible for finding suitable accommodation for low-skill workers. The TFW Program hinges on what is called a labour market opinion (LMO) from HRSDC/ Service Canada: a government opinion on whether hiring TFWs will have a positive or negative impact on the Canadian labour market. HRSDC reviews each LMO application from employers based on the following criteria: • employers have made reasonable efforts to recruit or train Canadian citizens and permanent residents • validity of the job offer • wages and working conditions offered are consistent with Canadian labour standards and collective agreements • hiring TFWs will have a positive impact on the Canadian labour market

10 steps to recruit, retain and integrate foreign workers under the TFW Program

Gather information on the following three items: • The skill level and nature of the occupation for which you are hiring • Whether you need a LMO from Service Canada to recruit foreign workers. This is because foreign nationals in certain categories do not require a LMO (e.g. international students and graduates, participants of International Youth Programs, and workers covered under certain international agreements such as NAFTA). • Whether the occupation for which you are hiring is eligible for a shorter application process under the List of Occupations under Pressure for your province and under the Expedited Labour Market Opinion Pilot Project (for Alberta and B.C. only).

Prepare a letter describing the negative impact of ongoing labour shortages on your business operations and document the outcome of your efforts to recruit Canadian citizens and permanent residents for the job (e.g. number job ads, applicants, interviews, job offers, etc.).

positive LMO.

Develop a ‘Settlement and Integration Plan’ to facilitate employee settlement and integration at the workplace and in the larger community. Plan for things your new employees will need, such as: • airport pick-up, • adequate housing, • medical coverage, • registration under appropriate workers’ compensation scheme, • social insurance numbers, • bank accounts, and mechanisms to remit money back to home countries, • Appropriate clothing, • language and workplace training, • transportation from employee residence to your workplace • information on employment standards and support services available in the community

Upon arrival in Canada, pick up new employees at the airport/port-of-entry, and arrange for transportation to employees’ new residence

10. While foreign workers are still employed, jointly plan for either: • Repatriation –employees return to their home country, • Rotation – workers return to their home country and back to Canada after at least 4 months. Alternatively another employer applies for an LMO and hires your employees for the next season, or • Application for permanent residence status under the provincial/territorial immigrant-nominee program Upon assessment of their own resources and capacity, it is recommended that employers gather the right information to determine the most appropriate, effective and ethical mechanism to identify prospective employees in source countries. In addition to the resources listed under step 5, tourism operators may also want to work closely with their local industry associations, Members of Parliament and Service Canada to ensure that both employers and prospective migrants are aware of the laws and licensing requirements that regulate the operations of third party recruiters. Regardless of the recruitment method used, it is important that employers communicate with prospective candidates and actively monitor the work third parties are doing on their behalf to ensure that both employer and employee expectations are met. For a complete list of online government and industry resources please visit: www.discovertourism.ca/temporaryforeignworker

Temporary Foreign Worker Program

by CTHRC

3. Prepare the employment contract. It is the employer,

and not a third-party recruiter that enters into an employment contract with the temporary foreign worker.

4. Complete and submit your Foreign Worker Application (LMO

application) to Service Canada, along with the letter, employment contract, and proof of unsuccessful recruitment efforts

5. Interview and recruit prospective employees

The purpose of the TFW Program is to help Canadian employers address their labour and skill shortage needs by authorizing the temporary employment of foreign workers in Canada.

6. Prepare and send a formal job offer to the new employees, along with the employment contract and a copy of the

7. Employees submit an application for a work permit to CIC once they receive all documentation.

10 steps to recruit, retain and integrate foreign workers under the TFW Program

positive LMO.

Upon arrival in Canada, pick up new employees at the airport/port-of-entry, and arrange for transportation to employees’ new residence

Minimum WageUpdate

Increased Minimum Wages – Impact on the Foodservice Industry

ecent increases in the minimum wage across Canada will cost restaurant owners more than $1 billion in higher wages and payroll taxes over the next three years. There have been significant increases in the minimum wage (more than 10% in some provinces), with more increases planned in the immediate future. During the first eight months of 2007, average weekly earnings for foodservice employees increased by 9.4%, primarily as a result of higher hourly wages. According to the Canadian Restaurant and Foodservices Association (CRFA), nearly 31 cents of every dollar spent at a restaurant goes toward payroll costs. This means that almost one-third of a restaurant’s expenses are tied to its employees, and increases in the minimum wage will continue to add to this amount. This expense is second only to food and beverage costs. Most minimum wage earners are not dependent upon their earnings as a primary source of support. More than three-quarters (77%) of minimum wage earners in the restaurant industry are between the ages of 15 and 24, and live at home with their parents. The benefits associated with increasing the minimum wage are just as likely to affect high income households as they would low income households. Also, in the foodservice industry, most employees earn tips that greatly exceed their hourly wage. Only Ontario and Quebec have wage differentials for tipped employees. British Columbia, Ontario and Nova Scotia have wage differentials for trainees and employees under the age of 18. Higher minimum wages make it more costly for restaurants to hire and train new employees. These training costs are inevitable, as a 2004 CRFA survey found that the average annual turnover rate for hourly paid employees is 67%. Minimum wage increases can be offset by implementing nation-wide minimum wage differentials for trainees. As there are significant costs in training new employees, these minimum wage differentials would enable foodservice operators to maintain first-time job opportunities, as well as hours of employment, for youth and student employees. Minimum Wage Increases Across Canada As of December 1, the median minimum hourly wage is $8.00. There are five provinces below this rate, while all three territories are above this rate. The range of minimum wage rates across Canada is somewhat significant – from $7.00 in Newfoundland and Labrador to $8.50 in Nunavut, which is a difference of $1.50 per hour.

are in line with inflation and cost of living increases. However, the story is quite different across the rest of the country.

Legend Minimum wage as of date

Yukon Territory $8.37 (Apr 1/07) 1.5

British Columbia $8.00 (Dec 1/07) 0.0

Alberta increased its minimum wage by $1.00 to $8.00 per hour, or more than 14%, last September. This follows a nearly 19% increase in the minimum wage rate that took effect in September 2005, which represents a 36% increase in the minimum wage rate over a two-year period.

% increase since Jan 2007

Northwest Territories $8.25 (Jan 1/07) 0.0

Alberta $8.00 (Sept 1/07) 14.3

Saskatchewan increased the minimum wage by $0.40 in March 2007 to $7.95. This was followed by two more increases: $8.25 in January 2008, $8.60 in May

Nunavut $8.50 (Jan 1/07) 0.0

Newfoundland & Labrador. $8,00 (Apr 1/08) Saskatchewan $8.60 (May 1/08)

11.8 8.2 This range is arguably a result of a number of factors, including the cost of living. Since most goods are imported in the territories, consumer goods tend to be higher priced when compared to the rest of the country, which necessitates higher minimum wages ($8.25 in Northwest Territories, $8.37 in the Yukon, and $8.50 in Nunavut). There is also a smaller population, so it is necessary to pay more in order to hire and keep restaurant employees. The great discrepancy lies in the amount of increases that have occurred in the past two years, as well as the increases scheduled for the next two years. British Columbia, the Northwest Territories, and Nunavut have been at the same rate for several years, and there are no planned increases for the immediate future. However, there is a growing movement to increase the hourly minimum wage in British Columbia to $10.00 – a proposed 25% increase. Quebec and the Yukon Territory have seen modest increases that

Ontario $8.75 (Mar 31/08)

12.9

P.E.I. $7.50 (Apr 1/07)

Québec $8,00 (May 2/07)

6.0

3.2

New Brunswick $7.75 (Mar 31/08)

Ontario has instituted a plan to increase the minimum wage by $0.75 per hour over a three-year period. This means that the minimum wage has been raised to $8.75 as of March 2008, will become $9.50 in March 2009, and $10.25 in March 2010. Following the $0.25 increase to $8.00 that occurred in February 2007, this means that the minimum wage will have increased by almost 13% in one year, and more than 32% over a three-year period. The rate for tipped employees increased by 9.4% in March 2008 from $6.95 to $7.60. This will be followed by increases to $8.25 in March 2009 and $8.90 in March 2010 – a total increase of 28% in three years. New Brunswick increased its minimum wage by $0.25 to $7.25 in July 2007 and again by $0.50 to $7.75 in March 2008. This represents a nearly 11% increase in a 15-month period. Newfoundland and Labrador increased its minimum wage by $0.50 to $7.50 in October 2007 and by another $0.50 in April 2008. This represents a 14% increase in the minimum wage in less than 15 months

14.3 Manitoba $8.50 (Apr 1/08)

By David Gargaro

Nova Scotia $7.60 (May 1/07)

6.3

10.7 2008, and has a third increase to $9.25 scheduled for May 2009. This means that the minimum wage will have risen almost 23% over four separate wage increases in about a two-year period.

The Cost of Doing Business The average profit margin for foodservice operators across Canada is about 3.8%. This works out to annual earnings of pre-tax profits of less than $26,000 for the average restaurant. It is also much lower than the pre-tax profit of 5.8% achieved in 2001. Any significant changes in expenses and/or revenues, such as increases in the minimum wage, can greatly impact profit margins and the financial viability of the foodservice operation. What will be the impact of higher costs and lower revenues in the foodservice industry? Much like in any industry, the results include price increases, cost-cutting measures, layoffs, fewer new hires and higher bankruptcy rates. It is extremely difficult, if not impossible; to reduce labour costs without cutting staff or laying off higher paid employees. This has the added negative consequence of reducing customer service quality, as experienced employees are replaced with less expensive, less qualified employees.

Manitoba’s minimum wage rate increased by $0.40 in April 2007 and by another $0.50 in April 2008. This represents almost a 12% increase in less than two years, and more than 17% over a three-year period.

Minimum WageUpdate

Increased Minimum Wages – Impact on the Foodservice Industry

are in line with inflation and cost of living increases. However, the story is quite different across the rest of the country.

Legend Minimum wage as of date

Yukon Territory $8.37 (Apr 1/07) 1.5

British Columbia $8.00 (Dec 1/07) 0.0

% increase since Jan 2007

Northwest Territories $8.25 (Jan 1/07) 0.0

Alberta $8.00 (Sept 1/07) 14.3

Saskatchewan increased the minimum wage by $0.40 in March 2007 to $7.95. This was followed by two more increases: $8.25 in January 2008, $8.60 in May

Nunavut $8.50 (Jan 1/07) 0.0

Newfoundland & Labrador. $8,00 (Apr 1/08) Saskatchewan $8.60 (May 1/08)

Ontario $8.75 (Mar 31/08)

12.9

P.E.I. $7.50 (Apr 1/07)

Québec $8,00 (May 2/07)

6.0

3.2

New Brunswick $7.75 (Mar 31/08)

14.3 Manitoba $8.50 (Apr 1/08)

By David Gargaro

Nova Scotia $7.60 (May 1/07)

6.3

10.7 2008, and has a third increase to $9.25 scheduled for May 2009. This means that the minimum wage will have risen almost 23% over four separate wage increases in about a two-year period.

UPCOMING EVENTS

upcoming events

ALBERTA FOODSERVICE SHOW September 28-29, 2008 Edmonton, Alberta WWW.CRFA.CA ETHNIC & SPECIALTY FOOD EXPO October 5-6, 2008 Toronto, Ontario WWW.ETHNICANDSPECIALTYFOOD.COM GROCERY INNOVATIONS CANADA October 26-27, 2008 Toronto, Ontario WWW.GROCERYINNOVATIONS.COM TOURISM HR FORUM November 17-19, 2008 Winnipeg, Manitoba WWW.CTHRC.CA

At Teletec Systems Inc. we know restaurants and we know POS.

APEX April 5-6, 2009 Halifax, Nova Scotia WWW.CRFA.CA

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BC FOODSERVICE EXPO January 25-26, 2009 Vancouver, British Columbia WWW.CRFA.CA CRFA SHOW March 8-10, 2009 Toronto, Ontario WWW.CRFA.CA

We know an efficient kitchen is key to the success of your business…and an efficient POS System is key to the success of your kitchen. With a Restaurant Manager POS System from Teletec you’ll get the tools you need to keep your kitchen humming, including:

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Automatic Hold & Fire Delayed Send Chef Summary Coursing that can be updated on the fly (appetizers are served as a main course, etc)

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Team Serving Advanced Orders for catering “Ready” alerts

With 40 years of experience serving hundreds of restaurants in Ontario, Teletec knows how to evaluate your business needs and meet your budget. Call Teletec today for a POS System that will boost your bottom line. Integrate our TSI DVR Camera System with RM allowing you to monitor your business remotely via PC or Cell phone.

(416) 261-4408 (866) 737-8767 - toll free www.teletecsystems.com

upcoming events

At Teletec Systems Inc. we know restaurants and we know POS.

APEX April 5-6, 2009 Halifax, Nova Scotia WWW.CRFA.CA

�

BC FOODSERVICE EXPO January 25-26, 2009 Vancouver, British Columbia WWW.CRFA.CA CRFA SHOW March 8-10, 2009 Toronto, Ontario WWW.CRFA.CA

� � �

Automatic Hold & Fire Delayed Send Chef Summary Coursing that can be updated on the fly (appetizers are served as a main course, etc)

� � �

Team Serving Advanced Orders for catering “Ready” alerts

(416) 261-4408 (866) 737-8767 - toll free www.teletecsystems.com