Unite calls for HMRC investigation into TGI Fridays at Valentine’s day protest
- Tuesday 12 February 2019
Unite, Britain and Ireland’s largest trade union, is to submit a complaint to HMRC in the coming days, outlining a list of alleged minimum wage abuses against TGI Fridays, the American-themed restaurant chain, uncovered in the last 12 months. As well as alleged irregularities with the running of the company’s tronc (a system used to pool and distribute tips and service charge to employees).
To mark the first anniversary of the campaign in support of TGI Fridays workers, who were involved in a series of strikes last year after their credit card tips were cut by 40 per cent, leaving them £65 a week worse off, Unite fair tips activists will stage a Valentine’s protest (Thursday 14 February) at the chain’s Covent Garden branch in central London.
WHEN: Thursday 14 February 2019, 17:30-18:30
WHERE: TGI Fridays 6 Bedford Street London WC2E 9H2
Unite continues to be highly critical of the company’s handling of its tronc policy change, which left minimum waged waiting staff struggling financially when 40 per cent of their card tips were redistributed to kitchen staff, without warning, consultation or agreement.
Unite is calling on HMRC to investigate the TGI Fridays tronc, over concerns that it is failing to abide by the government’s E24 tronc guidelines which state that a tronc must be operated completely separately from the employer to take advantage of an national insurance tax exemption.
The alleged minimum wage abuses include a failure to pay staff for undertaking compulsory training in their own time and practices known in the trade as ‘clocking off’ and ‘holding back’ – this is when a manager will manually override a workers’ clocking off time to avoid paying overtime, and making staff wait to start their shifts until the restaurant is busier without paying them for this time, respectively.
The Unite members will use the protest to call on the government to give them a legal right to be consulted and a legally binding complaints procedure for challenging unfair tips practices. It must also ensure that its new legislation on tips, promised in October 2018 and still not yet law, makes the current voluntary code of practice on tips, gratuities, cover and service charges statutory.
Dave Turnbull Unite regional officer said: “On Valentine’s day we will be outside TGI Fridays restaurant in Covent Garden with a very loud message that we are not going away.
“TGI Fridays has behaved appallingly to its loyal and hardworking waiting staff. Without warning it raided the tips of one group of low waged workers to pay off another - in a move driven by the company’s failure to ensure that kitchen staff wages remained competitive, letting them drop to just one penny above the minimum wage.
“When this led to an inevitable retention and recruitment crisis in its kitchens it turned to raiding waiters card tips instead.
“In the last 12 months, we have uncovered an array of abuses from regularly skimming a few hours off the clock, to making staff pay for their own uniforms, and alleged serious irregularities with the running of their tronc.
“Some of our members, who are among the lowest paid workers in the UK, have lost £1,000 since the new tip policy was officially introduced last March, and the company has tried to silence them by denying their union reps the right to present collective grievances on both issues.
“Unite is calling on HRMC to urgently investigate, a formal complaint will be submitted in the next week. Ministers must also ensure that the new legislation on tips, promised in October, and which we are still waiting for, includes a ban on bogus tronc schemes.
“Self-regulation has clearly failed. The industry has largely ignored the code of practice on tips and is failing to abide by the spirit of the government’s tronc guidelines. It’s time to make this code and guidelines statutory, giving workers a right to be consulted and protection from victimisation.”
Notes to editors:
- HMRC E24 tronc guidelines
- HMRC A Code of Best Practice on Tips, Gratuities, Service and Cover Charges
- Unite members working at five TGI Fridays restaurants took part in a total of six days of strike action last year, starting in May and ending in August 2018.
For more information please contact Unite campaigns coordinator Chantal Chegrinec on 020 3371 2063 or 07774 146 777. Unite press office is on: 020 3371 2065
- Unite is Britain and Ireland’s largest union with members working across all sectors of the economy. The general secretary is Len McCluskey.