Policy changes are needed to support the hospitality industry and to improve pay and conditions for workers, according to a new briefing.
The briefing, released today (Tuesday 24 June), says that struggling hospitality workers would benefit from increased fair work practices in the industry.
But many employers are hindered by “factors beyond their control” in the implementation of fair work. These include gaps in transport and childcare provision, which create barriers to work for their staff, along with the impacts of the COVID-19 pandemic, the UK’s withdrawal from the EU and the more recent cost of living crisis.
Hospitality workers face higher than average risks of experiencing in-work poverty. A third of workers spoken to by researchers were on zero-hour contracts, or had no contract at all, while the workers’ median hourly pay rate was under the low pay threshold of £11.58.
The policy briefing, produced by the University of Strathclyde’s Fraser of Allander Institute and the Poverty Alliance, makes a series of recommendations for Government action, including:
- Promoting greater collaboration between government and the hospitality and tourism industry
- Investing in sustainable and community-led tourism
- Better and more consistent information for employers on best practice, training and development opportunities, legislation and policy changes
- Greater support for training and development.
The Research forms part of Serving the Future, a project which has been working directly with employers and people with experience of low-paid work in the hospitality sector to identify changes that could be made by employers and policy, and systems-wide changes to address in-work poverty in Scotland.
Fair work is defined by the Scottish Government as “secure employment with fair pay and conditions, where workers are heard and represented, treated with respect and have opportunities to progress.”
Hospitality is a significant part of Scotland’s economy, comprising around 3% of Scotland’s GDP and, before the pandemic, accounted for 8% of its jobs.
Chirsty McFadyen, a Knowledge Exchange Associate with the Fraser of Allander Institute, said: “Our research shows that hospitality employers often want to do the right thing by their employees, but they don’t always feel supported by policy to do so. If we are to meet the 2030 child poverty targets, the Scottish Government has a role to play in ensuring that housing, childcare and transport policy support the industry and its workers.”
Dr Laura Robertson, research manager with the Poverty Alliance, said: “Low pay and job insecurity have a big impact on households in Scotland. A lack of affordable, accessible childcare and housing, alongside continued high costs of living, is also preventing families from being lifted out of in-work poverty.
“The Serving the Future project shows key challenges facing households working in the hospitality sector in Scotland and that both employers and policy makers have a key role in tackling poverty in Scotland.”
There was widespread concern among workers about a lack of effective regulation and oversight of the hospitality sector, leading to an absence of clear standards which allowed exploitation and unfair practices to persist.
Staff shortages were leading to many workers taking on extra hours and duties, creating burnout, stress, and deterioration in work-life balance. This was sometimes the result of a practice known as ‘clopens,’ or late closing and early opening.
One worker said: “Sometimes I could finish at twelve at night and be in at ten the next day. That’s very common, as well, like ‘clopens.’ I think they shouldn’t be legal.”
The researchers also identify opportunities in proposals in the UK Government’s Employment Rights Bill, which include: a right to a contract with guaranteed hours; a requirement for employers to consult with employee representatives on tipping and gratuity policies, and the creation of a Fair Work Agency with powers to investigate and take action against businesses that do not comply with the law.
Proposals based on the Fair Work Convention’s Hospitality Inquiry were also highlighted in the policy brief.
The Serving the Future project is funded by The Robertson Trust.
