TGI Fridays workers to deliver letter to business secretary demanding action on tips
12 June 2018
Workers at TGI Fridays restaurants, who have taken four days of strike action over tips and minimum wage abuses, will deliver a letter to the business secretary, Greg Clark at the department of Business, Energy, Innovation and Skills (BEIS) in London today (12 June 2018).
The action of delivering this letter - warning that the government’s failure to crackdown on tipping abuses as promised, has let rogue bosses off the hook - comes two days after Labour leader Jeremy Corbyn vowed that hospitality workers will keep 100 per cent of tips left by customers, under a Labour government.
In the letter, the members of Unite, Britain’s biggest union, outline how TGI Fridays decision earlier this year to redistribute 40 per cent of cent tips paid on a card from waiting staff to the kitchen teams – a move that is costing waiters £250 a month in lost wages – is about the company clawing back the cost of increases to the national living wage and has left them worse off.
Unite has vowed to keep up the pressure and will be informing TGI Fridays of its intention to hold a consultative ballot of all union members from across the chain’s 82 restaurants as part of plans to broaden the strike action.
Unite regional officer Dave Turnbull said:
“…Rogue bosses like TGI Fridays are being let off the hook to abuse tips and exploit government/HMRC guidelines (E24) on tips and troncs, to boost their own profits and offset the cost of the government’s pay rise to low earners.
Workers at TGI Fridays have already had time and a half payments for working bank holidays axed and free staff meals scrapped since the NLW was introduced three years ago. When the company announced a 40 per cent cut to their tips early this year, they said ‘enough.’
The government’s failure to act is fostering exploitation and industrial unrest. It is also leading to higher staff turnover and skill shortages and is hampering Unite’s efforts to work with the industry on a voluntary code of practice on fairness and transparency.
“Unite is demanding that the business secretary, Greg Clark, stop dragging his feet and take action on tips…”
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CIPP comment In May 2016 BIS (now BEIS) published a further consultation on tips, gratuities, cover and service charges which detailed proposals for further action on fairness and transparency. The CIPP surveyed payroll professionals and duly sent our formal response to BIS summarising our findings. We concluded that both this consultation and the outcome of the call for evidence in 2015 highlight the complexities of this area. It is vital that any changes in process or guidance are introduced in close consultation with stakeholders to ensure that clarity and transparency are brought about for businesses, workers and customers. No response has ever been published by BEIS. It will be a very positive step if the letter from Unite prompts some action from government. |