To think that if the hospitality industry is struggling to fill vacancies...

[Susie477]

It should pay higher wages?

The hospitality industry is facing a ‘jobs crisis’, we are told. Restaurants are complaining that they can’t recruit the workers they need to re-open after lockdown. Many of the foreign workers they previously relied on have gone home after Brexit & covid, and they are struggling to recruit British workers to do minimum wage jobs with unsocial working hours.

So why not offer to pay more? Businesses accept that they have to pay competitively to recruit senior executives and justify high salaries by citing ‘market forces’. Why doesn’t the same apply to ordinary workers?

One of the alleged benefits of Brexit was supposed to be that the U.K. economy would be forced to break its addiction to an unlimited supply of cheap immigrant labour. So why isn’t it happening? Why aren’t wages rising?

I’m 64 and there was very few cafes/ restaurants when I was young.
I think many people have found home cooking and baking during lockdown. I use my slow cooker a lot. I have also noticed supermarket prices going up. Not just food.
We are not big drinkers but occasionally have a beer/ wine with a meal. So no driving issues.
I am more concerned about flying. My DD and family live abroad.

Masks are probably a factor as well. If you're working in hospitality you need a mask on all shift.

By Christmas or next summer if things are more normal then I think it'll be different again.

I'm in Europe in a country which is heavily reliant on tourism.
Hospitality is having a massive problem now with staff.
As in the UK, they've been paying shit wages for year and the hours are absolutely ridiculous. They use all kinds of get-outs to get around the EU working time directives. Most of the employees were from Eastern Europe. I got to know quite a few over the years and they all said they came here because the wages are so much better than in their own country so if they work flat out for 8-10 years from the age of 18 they can return home with enough money to buy a decent property and are set up for life.

COVID has put a stop to that. They have all gone home and are not returning for this summer season it would seem. It's too risky - what if they come over here and then there's no work for them again at short notice.
The locals who work in hospitality have long since found other jobs, some have received retraining from the job centres and moved on. Hospitality has been completely closed for 7 months. There was a brief time when they were open last summer. This means there's a real shortage of staff. Young people are not applying for apprenticeships related to tourism and are going into other fields instead.

Our government's solution is to force unemployed people to work anywhere in the country in hospitality. But this could mean people being moved up to 1500 km away from their families, friends and homes. There used to be a rule about how far away you could be expected to take a job without sanctions but they have just changed that. So you get to live in a single room somewhere, or in some cases in dormitory accommodation in a hotel, get a shit wage, work all hours 6 days a week and your family has to get on with things at home.

@LookItsMeAgain, or, wages will have to rise, prices will have to rise and many business will fail. - I think that is the more likely scenario.

Hmm if customers didn't treat staff like shit, I have worked in the area for years most of the staff I work with are at college or university, we only have a few older staff, staff turn over is huge but loads took the furlough and left as soon as they were due back which is totally shit and unfair on employers, so it may seem like loads atm, yes wages are shit tips help tons, but really it give staff a good wage food and drink prices would have to double is £4 for a hot drink, toasties £8 ect really no one would pay that amount where I am from

Why do people always say “why pay over £3 for a cup of coffee when I can make one at home for pennies”?

But you’re not at home. Unless you’re dragging the coffee maker, sink and fridge behind you on a rope the only option is to go without.

I think the casual dining sector was always based on people choosing to eat out rather than go home for a meal. So it had to compete on price

I think it moved down sectors price wise. Like you, I only remember going out to eat as a holiday or occasion thing. However it was apparent even then from the busy restaurants in my part of London that for some it was an every day occurrence.

So in a sense lowering relative prices democratises eating out but if the cost is borne by low paid staff and the taxpayer I'm not sure its particularly democratic or a good thing. We need to value service more and that may mean going out less than pre covid but more than in the 70s/80s

Wages aren’t just too low at the bottom, they are too low in the middle as well. I always tip to make up for the low wages so it wouldn’t make a big difference to me if they put up prices to cover wage costs, I just wouldn’t habitually leave a tip. A lot of lower earners are getting wages topped up by benefits so I’m not sure it’s the pay so much as the conditions and zero hours contracts. There are far too many coffee shops and cafes to be sustainable round here so I expect some will go.

A good start would be stopping zero hour contacts

I would happily pay more if I knew people had a proper wage / hours / training / rights

Lots took furlough and worked in other jobs while on furlough which is permitted. They then left the hospitality job as soon as they were required to return. Student friends of DD were previously working in bars/ restaurants got jobs in supermarkets and were still being paid their furlough from their hospitality jobs up to recently when they never had any intention of returning. It made me a little bit angry that they were using their employers and the tax payers like this. They have taken advantage of the situation rightly or wrongly. There should have been some incentive or commitment to return if receiving furlough.

An industry can only pay poor wages with poor terms and conditions when there are more workers than jobs. NMW and zero hour contracts are pretty poor conditions.

Once workers are harder to find you need to look at your recruitment and retention like any other industry. Better base pay is one option, but there are lots of other ways to make your vacancies more attractive. Profit share, fixed hours, one in four weekends off, extra pay for weekend working, free meals, staff discount, decent working environment. If you want your business to survive you need to find a way to make your vacancies attractive.

@Susie477

It should pay higher wages?

The hospitality industry is facing a ‘jobs crisis’, we are told. Restaurants are complaining that they can’t recruit the workers they need to re-open after lockdown. Many of the foreign workers they previously relied on have gone home after Brexit & covid, and they are struggling to recruit British workers to do minimum wage jobs with unsocial working hours.

So why not offer to pay more? Businesses accept that they have to pay competitively to recruit senior executives and justify high salaries by citing ‘market forces’. Why doesn’t the same apply to ordinary workers?

One of the alleged benefits of Brexit was supposed to be that the U.K. economy would be forced to break its addiction to an unlimited supply of cheap immigrant labour. So why isn’t it happening? Why aren’t wages rising?

Many hospitality businesses are struggling to survive, so paying above the minimum wage could tip them over the edge. Don’t forget that, if they had to pay new recruits more, they would also have to increase the wages of their current staff.

If someone is claiming JSA (which really isn’t very much), I would have thought they would be grateful to get a job, even if it was only paying minimum wage.

An industry can only pay poor wages with poor terms and conditions when there are more workers than jobs

And where its heavily subsidised by taxpayers topping up the wages of staff.

on your feet the whole time
When I was young this was considered to be a perk of the job because it kept your weight down! Funny how attitudes change.

As I said on another thread.

People will have to start deciding whether they want full English for a fiver, or peoppe being paid proper wage. Businesses would happily pay bigger wages (most), but with prices people want, that's really often hard.

I don't know what some posters think the NMW is, but it's crap.

"In full, the increases from April 1 2021 are: National Living Wage (23+) has increased 2.2%, from £8.72 to £8.91. National Minimum Wage (21-22) has increased 2%, from £8.20 to £8.36. National Minimum Wage (18-20) has increased 1.7% from £6.45 to £6.56." - Gov.uk

@SchrodingersImmigrant

As I said on another thread.

People will have to start deciding whether they want full English for a fiver, or peoppe being paid proper wage. Businesses would happily pay bigger wages (most), but with prices people want, that's really often hard.

Yes this. Prices need to rise to enable wages to rise.

i was sure you were not able to claim furlough and work, my dd and her friends thought they couldnt work or they would lose their furlough, dd's furlough has been stopped now

Definitely! It is not for taxpayers to subsidise in-work benefits for multi-million pound corporations because they don't want to pay a proper wage but do want to take lots of nice profits.

There used to be a rule about how far away you could be expected to take a job without sanctions but they have just changed that

Really? Does this apply to people with families or singles only?
Sounds like the American model of unemployment benefits conditionality.

Do you have a link about this?

@SpindleWhorl

I don't know what some posters think the NMW is, but it's crap.

"In full, the increases from April 1 2021 are: National Living Wage (23+) has increased 2.2%, from £8.72 to £8.91. National Minimum Wage (21-22) has increased 2%, from £8.20 to £8.36. National Minimum Wage (18-20) has increased 1.7% from £6.45 to £6.56." - Gov.uk

It’s not crap , if you’re the one that is having to pay it

I've had a secondary job as a waitress for over thirty years and have definitely seen a massive disparity between my income and the cost of living increase.
The tips used to make it a livable wage, however , these are rare these days.
Totally understandable when a meal out is a great deal for many people, consequently they deserve great service. But this is becoming harder to deliver when labour costs mean there are fewer team members so an increased work load.
Having also worked as a restaurant manager I am very aware of how difficult it can be to make a profit.
Not sure what the answer is, but personally I am so grateful to be back.
While thankful for furlough pay, 80% of minimum wage, that is then taxed at 20% has left me with a huge financial deficit, so a lot of catching up is needed!

@TrendingHistory it was this way before covid to be honest, although I don't know if we are representative as most hospitality, we certainly aren't like a lot of people are describing here. We pay higher than the loving wage and increase hours when staff are stressed and need help, we try to be responsible business owners but that doesn't correspond to profit in hospitality, don't think I'm cut out for it really!

The businesses saying that they're used to giving foreign workers shit pay and conditions so now young UK workers will have to accept shit pay and conditions (and think they're being entitled if they refuse) are the ones who will fail - and they deserve to.

Wages usually rise after a pandemic. Thankfully this time it's largely due to people choosing to leave the country and not a staggeringly high death rate, but the result is the same - not enough workers to fill jobs, so those looking for work have more choice. Pay more, offer better conditions - or go without. (And yes, I'd pay a bit more for a meal if I knew the employer was decent.)

@AbsolutelyPatsy no you definitely could, I suppose this was to make up for the 20% difference. It did seem a bit bonkers. Lots of people in catering just switched to retail and earned double the money, no wonder some didn't want to go back.