New dawn for workers' tips

Hospitality workers are leafletting in city centres across the UK to raise awareness of new tipping legislation coming into force today (October 1).  

The introduction of the new legislation comes as steak house chain, Miller & Cater, which runs 320 UK restaurants, is continuing with a new unfair tipping system that leaves waiting staff hundreds of pounds a month out of pocket on tips.

Commenting, Unite general secretary Sharon Graham said, “The new legislation gives workers the tools to fight bad bosses who would unfairly deduct their tips. But as Miller & Carter’s disgraceful behaviour demonstrates, rogue employers will continue to try and deny workers fair tips despite the new legislation. Unite will use every tool at its disposal to make sure companies like Miller & Carter are brought to heel.”

Despite the new legislation, Miller & Carter has no plans to change a new tipping policy used at a number of its restaurants that forces waiting staff to handover between two and three per cent of total daily sales to kitchen and bar workers. The policy is resulting in Miller & Carter waiting staff being forced to hand back £60 to £90 of tips per shift.

Unite has also received evidence that Miller & Carter waiting staff who haven’t made enough tips in a shift to pay the percentage of total sales are added to an IOU list. The IOU amount is then deducted from future tips. The union has evidence of IOU lists at three restaurants, with the practice thought to be widely spread across the company’s sites.

From October 1, the Employment (Allocation of Tips) Act will come into force across England, Scotland & Wales. The act gives workers the right to request information about an employer’s tipping record and bring claims to an employment tribunal over tipping breaches within 12 months. Employers can then be forced to reallocate tips and pay up to £5,000 in compensation for every worker affected.

To mark the new Act coming into effect, Unite Hospitality activists across the country will be out on the streets talking to fellow hospitality workers about their new rights at work and how to enforce them through Unite. The activists will be targeting busy hospitality areas in Aberdeen, Edinburgh, Glasgow, Cardiff, Manchester, Nottingham, Brighton and Cambridge.

Unite lead hospitality organiser Bryan Simpson said, “For Miller & Carter to be forcing low paid waiters into tip debt in the same week that the fair tips law comes into force is jaw-dropping.

“From Edinburgh to London, our members are organising to collectively challenge the company’s deeply unfair tipping system, which is losing them hundreds of pounds a month,” he added. “Miller & Carter’s kitchen and bar teams deserve a pay rise and a fair proportion of tips but this is classic case of a greedy hospitality giant trying to save money by robbing Peter to pay Paul.

“Unfortunately, the treatment of workers at Miller & Carter is not unique, which is why we are taking action across the country as part of our Fair Tips campaign to educate workers about their rights under the new law and how to enforce them through their union.”

Meanwhile, a Miller & Carter employee, who did not wish to be named out of fear of repercussions from their employer, explained just how much they were losing in tips.

“My average sales are £2,500 per 12-hour shift worked. With the new percentage of sales going up to more than two per cent, plus managers taking tips, I have to tip out £70 each shift no matter if I make that amount or not. I look set to lose around £400 a month on that.”

Another Miller & Carter employee, who is also remaining anonymous, added, “With this policy we are expected to tip out between £60-£75 based on a good night of sales (up to £3,000) meaning I will almost certainly be in tip debt at the end of the week.

“The tipping policy is not fair or independent, as the most senior person in my restaurant, the general manager, has the final say on the percentage and distribution of tips.”

Hospitality workers in Northern Ireland are also set to lose out, as no new tips legislation has been introduced by the Stormont Executive. This means in effect workers in Northern Ireland are to be denied rights provided elsewhere in the UK.

Commenting, Unite general secretary Sharon Graham said, “It is completely unacceptable that fair tips laws which Unite has fought to win since 2007 have been introduced by Westminster but not by the Stormont Executive.

“Hospitality workers in Northern Ireland should have the same rights and entitlement to receive fair tips as do their colleagues in Great Britain. There can be no excuse for the failure to provide workers in Northern Ireland with the same rights.”

Meanwhile, lead regional officer for hospitality in Northern Ireland Neil Moore added, “Stormont’s failure to implement fair tips legislation has left bosses free to dip their hand in the tips when it suits them.

“This is made all the worse alongside endemic low pay in the sector, leaving many hospitality workers relying on their tips to get home safely or even to pay for basic essentials.

“There’s no reason why fair tips cannot be immediately delivered in Northern Ireland. Hospitality workers need these rights to be legally enforceable now.”

You can find out more about Unite Hospitality’s fair tips campaign and how you can get involved here.

If you missed our story last week on Unite North West taking the tips campaign to Labour conference, you can read it here.

By Ryan Fletcher and Donal O’Cofaigh