A string of pay freezes at London hotels has led to fears that the value of wages among London hospitality workers has fallen significantly since 11 September 2001 and won't meet the new minimum wage levels when they come in this October.
Thistle is the latest hotel group to announce a delay on pay reviews. Its decision has been met with opposition from the GMB and T&G unions, which have issued a joint statement in protest at the hotel chain's second pay delay since 2001.
Thistle postponed pay rises after 11 September 2001 citing a drop in international travel following the New York terrorist attacks. However, a company-wide 2% pay increase was implemented in June last year.
Pay reviews due this June have now been delayed until December 2003, according to a Thistle spokesman.
Dave Turnbull, regional industrial organiser for the T&G, said the fall in pay rates was of great concern as some Thistle employees would fall below the new minimum wage rate of £4.50 when it is introduced in October.
"Most workers in London used to be on more than the minimum wage, but the impact of pay freezes since then means the relative value of wages in the hospitality sector has dropped," said Turnbull.
Marriott implemented a recruitment and salary freeze at its UK hotels in October 2001. Since then, a pay review was implemented in October 2002 and the company's own minimum rate is now set at £5 for London employees. A spokesman for the company said that "only a small number" of staff in London were on the minimum rate.
Le M‚ridien implemented a pay freeze on employees in April this year. A company spokesman said it had taken the opportunity to review pay scales against the market. "Most of the staff in our London hotels are already on pay rates equal to the new minimum pay scale of £4.50."
Hilton UK has not implemented any pay freezes since 11 September 2001 but admitted that some hotel employees in London are paid the minimum wage.
In 2002, about 17% of employees in the hospitality industry were being paid the adult national minimum wage. According to the Low Pay Commission, one result of the implementation of the minimum wage has been a reduction in pay differentials between supervisory staff and general workers.
By Jessica Gunn
Source: Caterer & Hotelkeeper magazine, 3 - 9 July 2003