Unite union calls on Lord Mandelson to clear up tips
system once and for all
3 December 2009
Unite, the largest union in the UK, has written to the Business
Secretary today (Thursday 3rd December) to demand a clear up of the
tips system in the hospitality sector once and for all.
The union which represents waiting staff has today sent Lord
Mandelson a ‘File of Failure’ which outlines the refusal by the
industry to embrace the fair tips principle which consumers and
workers have long demanded.
Unite is frustrated and disappointed that there is continued
abuse of the tips and service charge system by the majority of
employers in the hospitality sector. The File gives examples of
some of methods employers have introduced since the government
closed the minimum wage loophole in October, which allowed
employers to pocket the tips left for staff and use it to pay the
minimum wage.
Dave Turnbull, Unite officer, said: “Unite has uncovered
evidence which shows that staff and consumers are no clearer as to
where the money left for waiting staff is going and how it is
distributed.
"When the government spoke of the need to clear up the tipping
arrangements, they expressed the need for transparency so that
customers know where the reward they are leaving is going. Unite is
appalled that this does not appear to have had any positive impact
for waiting staff or consumers. In fact, the union can show that
this endeavour to bring transparency to the hospitality sector has
resulted in many employers implementing methods to take a larger
proportion of the monies left for staff.
“Unite has complied the ‘File of Failure’ which illustrates a
large number of examples which demonstrate that the industry has
totally failed to embrace the appetite amongst workers and
consumers for clarity on tipping and service charges. Lord
Mandelson must act now, once and for all, to show the public and
workers that the government has got to grips with this issue. The
public is now sceptical about the ability of the hospitality sector
to clean up its act.”
The Unite ‘File of Failure’ being sent to Lord Mandelson gives
examples of current practice which include:
- hourly rates
of pay being cut as a direct consequence of the minimum wage
regulations being amended;
- pools for tips
being widened to lessen the amount going to each individual;
- administration
fees being increased;
- management
increasing the proportions they take;
- staff having
to pay the price for breakages, customer walkouts and till
shortages.
In its letter to the Minister. the union has asked him to meet
with representatives who work in the hospitality sector in order to
hear directly from them what their experiences are and to discuss
the type of action which is needed to protect many thousands
of vulnerable hospitality staff across the country.
Following the long campaign by Unite, the union congratulated
the Government on the progress in October in closing the loophole
in the minimum wage regulations which allowed employers to use tips
and service charges left by customers to top-up the pay given to
staff to the minimum wage. This was a very important step forward
and very much welcomed by Unite members in restaurants, bars and
hotels across the UK.
The union launched the ‘Fair Tips Campaign’ last year in
response to the anger of workers in the sector who were having
their tips taken by employers. Following the campaign the
Government closed the loophole in the minimum wage regulations and
formulated a tips ‘Code of Best Practice’.
Today members of Unite the union will leaflet the public to
inform them that many employers still refuse to pass on the money
they leave for their waiting staff. The workers will leaflet
customers in the busy London district of Holborn, ahead of the busy
Christmas office party season.
ENDS
Notes to Editors
The media can request a copy of the letter sent today from Unite
to Lord Mandelson.
A copy of the ‘File of Failure’ is also available on
request.
Unite members will hold a photo opportunity on Thursday
3rd December 2009 in Holborn.
Time: Noon
Location: Sicilian Avenue, Holborn, WC1A 2QD
