Campaign for Fair TIPS
The introduction of the National Minimum Wage was undoubtedly one of the greatest achievements of the Tony Blair era. Almost every family in East Lothian will know someone who has benefited from its introduction. It purpose was to ensure a decent living wage for workers. Certainly there are those who feel the level was set too low and indeed the CBI argued that the amount was too high! Either way, the legislation was implemented in good faith and most employers took their role in the implementation of this wage very seriously indeed. Recently I was most disappointed when contacted by the local branch of UNISON - the Public Services Union - who reported to me the shoddy practice of an employer at the Fort Retail Park. The said employer, The Restaurant Group Plc is a massive conglomerate with profits of over 35 million per annum
The company employ individuals who are paid between £4.80 an hour – well below the minimum wage.
These waiters/waitresses are appreciated by customers and TIPS awarded.
The employer then tops up the hourly rate using their TIPS. This may not be illegal but is surely immoral.
This practice is reportedly widespread and I have raised my concerns with the Department of Trade & Industry. I will thereafter determine if this matter requires legislative change or tighter regulation. USDAW has indicated they would be willing to campaign on this abuse of workers.
Just prior to the Parliamentary recess, I chaired a committee that was established to monitor the failings of high street retailers (based in the UK) who have been accused of abuses of workers rights in third world countries.
It appears that abuse of workers remains prevalent in this country also, particularly where there are loop holes in legislation. UK employers must show Corporate Responsibility at home and abroad.
The next time you fancy a quick bite in Restaurant - particularly those in retail parks – ask the manager their policy on the implementation of the minimum wage. Let me know what answer they give you! The time will come to name and shame.
The expression TIPS originates from Edwardian days when customers paid for privilege, its true definition was “To Ensure Prompt Service”.
Let’s expose and rectify this shoddy practice and let’s ensure we do it promptly!
10.01.08
Anne Moffat (East Lothian, Labour)
Press Release.
Anne Moffat MP this week continued with her campaign against abuse of the National Minimal Wage Legislation. Anne was contacted at the end of 2007 by constituents concerned about their experience when tipping waiters/waitresses in local restaurants. In the House of Commons this week Anne raised the matter with the leader of the house.
“ On the subject of pay, I would like to raise the issue of the national minimum wage, and the fact that employers are able to abuse it, particularly in the case of the lowest paid workers who work in restaurants and hotels. If they are given a tip when someone pays by credit card that is used to supplement the national minimum wage. Could we have a debate to rectify that ridiculous anomaly?
Harrier Harman responded positively:
“My hon. Friend raises an important point. I know that before this House introduced the national minimum wage by statute, she was a champion in her union for its implementation. She has now come to this House and said that it is important that we do more to enforce it. I will bring her points to the attention of my right hon. Friend the Secretary of State for Business, Enterprise and Regulatory Reform, because he is presiding over a taskforce at the moment to ensure that we have tougher enforcement of that important law.
END
Date: 29.02.08
Local MP Urges PM to stamp out abuse of Minimum Wage Legislation
Local MPAnne Moffat was one of the Scottish Labour Group of MP’s who met with Gordon Brown this week to lobby the Prime Minister to end the “morally unjustifiable” practice whereby tips which low paid staff in bars and restaurants received from customers who pay by card or cheque are used to form part of their pay. Anne Moffat has been campaigning hard on this issue since it was first brought to her attention by a local union branch and last month sought the backing of the House to have a debate to rectify this outrageous anomaly. Anne said “I find it unacceptable that low paid workers most of whom are on the minimum wage are deprived of the tips that customers give in good faith. Customers give tips in recognition of good service and undoubtedly believe that tips go straight into the pocket of the staff. For unscrupulous employers to use tips to form part of staff wages is not justifiable and I would urge customers to be aware of this practice and put cash on the table when awarding a tip. The meeting with the prime Minister went well and he has given us a clear signal that he would look seriously into this matter.”
14.7.08
Anne Moffat continues fight to end abuse of Minimum Wage
Waiters and waitresses took their campaign for fair tips to Parliament last Monday 7th July. Members of Unite have launched a petition which calls on the government to take action to close the legal loophole which allows the tips and service charges to be used to top up the minimum wage.
Anne Moffat, MP has submitted a question to the Secretary of State for Business, Enterprise & Regulatory Reform, John Hutton to ask what action he is taking to ensure low paid waiting staff are paid a decent living wage, with tips and service charges are distributed fairly.
Anne Moffat, MP said: “I welcome the opportunity to challenge this outrageous practice which sees poorly paid workers in the hospitality industry being ripped off by unscrupulous employers who abuse this loophole in the minimum wage legislation.
This campaign was started a few years ago by Michael Connarty MP for Linlithgow & Falkirk East who moved a ten minute rule bill highlighting this unscrupulous practice. Unite are right to bring this to the public attention, all of us who award tips to waiting staff do so believing that this money goes directly into the pockets of staff who have given us service.
“I for one make a point now of asking waiting staff what the practices are in their work place and if there is any indication of abuse ensure that cash tips are given directly to the individuals who provided my service. I hope that as the campaign grows all customers will do the same until we close this loophole”
The ‘Unite Fair Tips Campaign’ is calling on the hospitality industry to ensure that staff are paid at least the minimum wage and that 100% of tips and service charges are distributed fairly. The government have to take action to address the loophole in the minimum wage law which currently allows employers to use customer gratuities to pay staff the minimum wage. Following the event in Parliament the BBC One Show on Wednesday 9th July Unite is urging MPs to sign up to EDM 1567 on the fair tips campaign.
