Hotel first to cut minimum wage

yrwhu8jxtni06a

http://www.independent.ie/national-news/hotel-first-to-cut-minimum-wage-2546316.html

A major hotel group has become the first to try to cut the pay of workers on the old national minimum wage.
Housekeeping staff at one of developer Noel O'Callaghan's hotels claim he has struck them off the payroll for refusing to accept a wage reduction of almost €1 an hour.
The move comes despite assurances from Finance Minister Brian Lenihan that workers already on the minimum rate would not suffer an instant pay cut when the wage rate was cut earlier this month.
The Davenport Hotel was hit by strike action yesterday after workers on the old €8.65-an-hour minimum wage claimed management wanted to impose a cut of 86c an hour.
The pay cut would bring their hourly rate down to €7.79, just 14c higher than the new minimum wage rate of €7.65.
It is the first case of an employer looking for a pay cut to come to light since the national minimum wage was slashed by €1 an hour at the start of this month.
Challenge
SIPTU condemned the cut in the wake of Mr Lenihan's claims that workers on the old rate were safe from cuts.
"I want to challenge the idea that persons already employed on the minimum wage will see their income drop automatically," Mr Lenihan said in the Dail last year.
"Anyone already working under a contract of employment that sets wages at or above the national minimum wage is entitled to continue to be paid those wages unless otherwise agreed between both the employer and the employee concerned," he said.
However, the Davenport Hotel workers claim they have been struck off the payroll because they would not "agree" to the cut.
More than 40 housekeepers at the hotel have accepted the new rate and signed new contracts, but five women from eastern Europe have refused.
They claimed Mr O'Callaghan called them to a meeting and told them they must agree to the cut "to support the Government".
The women said they were taken off the payroll the same day the reduction in the national minimum wage took effect.
They mounted pickets outside the hotel yesterday and handed flyers to passers-by.
It is understood that the hotelier is bringing in the same pay cut at other hotels in his group, including the Mont Clare, O'Callaghan St Stephen's Green, and Alexander hotels.
"I have no income and I live alone," said Regina Balciuniene, (51), whose daughter-in-law, Ingrida, also works at the hotel.
"I have some savings from a job I had before but only have one week's rent left.
"I can't get documents from the hotel that I need to sign on social welfare," she added.
The Department of Finance said there could be no change to an employee's contract that would reduce their pay without their consent, and any breaches should be reported to the Labour Court.
However, it did not comment on situations where employees "agreed" to cuts under threat of being struck off the payroll.

Typical,i knew this would come down the line,i sure many others will do the same.

orourkeda

Took ur jobs

Der ker derrrrr!!!

Ostrom

IBEC lobbyists promise competitiveness, greedy assholes pocket more money.

I'm sure my old employers are nursing a raging semi at the prospect.

orourkeda

efla wrote: »

IBEC lobbyists promise competitiveness, greedy assholes pocket more money.

I'm sure my old employers are nursing a raging semi at the prospect.

nice paradox

ArtSmart

efla wrote: »

IBEC lobbyists promise competitiveness, greedy assholes pocket more money.

I'm sure my old employers are nursing a raging semi at the prospect.

this was the reason why the min wage was cut - the JLC's couldnt move until it was done.

and FG, despite promises to reverse the decision, will not.

Ostrom

ArtSmart wrote: »

this was the reason why the min wage was cut - the JLC's couldnt move until it was done.

and FG, despite promises to reverse the decision, will not.

Shameful **** tbh

Dangerous Man

Yet another kick in the face. Great. I'm sure the black pigs and the rats in IBEC will be delighted with this.

Everybody remember - it's vital that those on high wages are protected - and just as vital that those on low wages are stamped upon as often as possible. It's the only way Ireland will find it's way out of this mess.

Agent J

This isnt the first time in recent years this hotel has made this move.

They did something similar 2 years ago. Basically told people to take a 10% paycut or they would be fired.

No surprises there, how long before others follow.

It won't be long before those jobs come with accomodation in the basement as the wages will be so low that you would have to live on the premesis to survive on them.

http://en.wikipedia.org/wiki/Upstairs,_Downstairs

flynnlives

wont be staying in any of those hotels so!

jimmycrackcorm

efla wrote: »

Shameful **** tbh

Do you even have an idea how many hotels have either closed down or are on their last legs propped up by receivers and banks? It's a dose of realism. If people don't like it then let the hotels close down instead and the workers swap their pay for the dole.

Ironically an improvement for the workers....

jimmycrackcorm

jimmycrackcorm wrote: »

Do you even have an idea how many hotels have either closed down or are on their last legs propped up by receivers and banks? It's a dose of realism. If people don't like it then let the hotels close down instead and the workers swap their pay for the dole.

Ironically an improvement for the workers....

From what I hear, it's the NAMA'd hotels that are making it impossible for the old long established hotels to stay in business.

flynnlives

jimmycrackcorm wrote: »

Do you even have an idea how many hotels have either closed down or are on their last legs propped up by receivers and banks? It's a dose of realism. If people don't like it then let the hotels close down instead and the workers swap their pay for the dole.

Ironically an improvement for the workers....

WRONG!

many hotels are in NAMA which is artifically propping up the price of residential and commercial property.

ardinn

flynnlives wrote: »

WRONG!

many hotels are in NAMA which is artifically propping up the price of residential and commercial property.

Their is more that are not.

And hotels are in dire conditions at the moment - Take for example the unfortunate cleaners - Also take the 20 chefs, 20 admin staff, 30 bar/restaurant staff, 5 reception staff, managers, maintenance, etc etc etc and you have a long list of probably 150 people who' will have jobs for longer due to this!

It is not Ideal in any way - but it's an evil needed to survive.

If you think of the money that a hotel dishes out in wages every month, and then filter that through the local community - plus the revenue to the community through guest spend - If that hotel stays open a day longer than it would have without these measures - then its worth it!

Seaneh

ardinn wrote: »

20 chefs,

There are VERY few hotels in the country with 20 chefs...

The Fitzwilliam hotel, between 2 restaurants, banqueting services and a bar kitchen on the premises would barely have 20 chefs!


You're talking through your hoop.

The biggest problem for a lot of hotels is that you have NAMA'd Hotels like The G and The Radison in Galway, the Shelborune in Dublin and a lot more around the country, which because of their operations being under written by NAMA can undercut their competition and not worry about margins.

squeakyduck

Great hope for the rest of us! :rolleyes:

melekalikimaka

wages are too high in this country, fair play yo hotel, needs to be done, we need to reduce cost of living and this is a good start, hope for follow

Atlantic Dawn

Great to see an FF supporter still gets value from his donations.

chillywilly

two options

1. Hotel closes due to high costs and low income, staff lose their jobs.
2. Hotel staff take pay cut and keep their job, hotel hopefully stays open.

ShamoBuc

melekalikimaka wrote: »

wages are too high in this country, fair play yo hotel, needs to be done, we need to reduce cost of living and this is a good start, hope for follow

please remind those people who now have less money in their pockets that the cost of living has come down

melekalikimaka

ShamoBuc wrote: »

please remind those people who now have less money in their pockets that the cost of living has come down

it doesnt happen over night

tman

orourkeda wrote: »

nice paradox

Seems more like an oxymoron to me...

challengemaster

melekalikimaka wrote: »

it doesnt happen

FYP mele

Bullseye1

melekalikimaka wrote: »

wages are too high in this country, fair play yo hotel, needs to be done, we need to reduce cost of living and this is a good start, hope for follow

Can we expect the government to replicate this by reducing VAT/Duty on products such as petrol.

I agree we need to start reducing our costs but the government needs to take a lead. You cannot expect people to take a wage reduction and expect the same levels of tax, and for them to be able live on reduced wages when fuel and food costs are going up.

yosemite_sam

flynnlives wrote: »

WRONG!

many hotels are in NAMA which is artifically propping up the price of residential and commercial property.

Whilst NAMA is in existence we will be in recession, FG or whoever will have to dispose of all the rubbish on their books before there will ever be a bottoming out of the market. I am looking forward to pickup houses at their real market value when it starts, come on AJ push the button

Dempo1

Yep here we go, I predicted this on other threads and of course was shouted down by those who just want, cuts, cuts and more cuts. It is not at all surprising this particular hotel was the first.

I think most reasonable employees in every sector understood cuts in wages but has predicted employers will now target anyone currently on minimum rates despite the mantra about this new lower rate being applicable to "New Contracts". I doubt this chance "O Callaghan" will get a way with it but it certainly won't stop him and other unscrupulous employers with Brass Necks chancing their arms.

When will employers get it, the Minimum rate has little if any impact on the bottom line, the Hotel sector in particular is in ****e and certainly not because of its employee's

Its a ****ing disgrace! Just like the sub contractor and major developers, employee's are getting shafted left right and center and the Hotel sector being the worst offenders.

phasers

melekalikimaka wrote: »

it doesnt happen over night

It doesn't happen at all! The price of pretty much everything has gone up recently, have you been food shopping lately? Put petrol in a car? Paid a phone bill?

yosemite_sam

ShamoBuc wrote: »

please remind those people who now have less money in their pockets that the cost of living has come down

Reality is beginning to bite, imagine this place in 4 years time when another 14 billion euro is taken out of the economy. It will be like famine times, if you have any sense you'll all move to the coast at least there will be fish there to live on

JuliusCaesar

melekalikimaka wrote: »

wages are too high in this country, fair play yo hotel, needs to be done, we need to reduce cost of living and this is a good start, hope for follow

And while we're waiting for prices to come down but already have pay cuts - what will we live on in the interim?

Princess Consuela Bananahammock

jimmycrackcorm wrote: »

Do you even have an idea how many hotels have either closed down or are on their last legs propped up by receivers and banks? It's a dose of realism. If people don't like it then let the hotels close down instead and the workers swap their pay for the dole.

Ironically an improvement for the workers....

I'm gonna be cynical and put this down to crass profiteering. Any evidence to suggest OC hotels are "on thier last legs propped up by the receivers"?

Also, if they were, and the work is simply not there, they'd be more likely to reduce hours or ask for voluntary redundancies before engaging in shotgun tactics.

They cut the minimum wage but haven't reduced the cost of living?

God, dontcha just love this country?

ejmaztec

Deleted User wrote: »

They cut the minimum wage but haven't reduced the cost of living?

God, dontcha just love this country?

Yes, all of our incomes have dropped like a brick, but the greedy bastards providing us with goods and services haven't dropped their prices much, if any.

They might get the message when customers can't afford to use them and their businesses fold through lack of support.

ejmaztec

ejmaztec wrote: »

Yes, all of our incomes have dropped like a brick, but the greedy bastards providing us with goods and services haven't dropped their prices much, if any.

They might get the message when customers can't afford to use them and their businesses fold through lack of support.

Actually I can see Lidl, Aldi and Tesco being the only supermarkets that last.

ShamoBuc

ejmaztec wrote: »

Yes, all of our incomes have dropped like a brick, but the greedy bastards providing us with goods and services haven't dropped their prices much, if any.

They might get the message when customers can't afford to use them and their businesses fold through lack of support.

So our wages go down, we don't/can't buy the produce, they lose their jobs/company..... and this changes the cost of living how exactly

Sonnenblumen

JuliusCaesar wrote: »

And while we're waiting for prices to come down but already have pay cuts - what will we live on in the interim?

Shakespear.

ShamoBuc

yosemite_sam wrote: »

Reality is beginning to bite, imagine this place in 4 years time when another 14 billion euro is taken out of the economy. It will be like famine times, if you have any sense you'll all move to the coast at least there will be fish there to live on

and when the fish are gone....

phasers

Deleted User wrote: »

Actually I can see Lidl, Aldi and Tesco being the only supermarkets that last.

Tesco is the worst offender for price hikes.

Dunnes > Tesco

Dempo1

Atlantic Dawn wrote: »

Great to see an FF supporter still gets value from his donations.

Took the words right out of my mouth

Gingersnaps

Dempo1 wrote: »

Yep here we go, I predicted this on other threads and of course was shouted down by those who just want, cuts, cuts and more cuts. It is not at all surprising this particular hotel was the first.

I think most reasonable employees in every sector understood cuts in wages but has predicted employers will now target anyone currently on minimum rates despite the mantra about this new lower rate being applicable to "New Contracts". I doubt this chance "O Callaghan" will get a way with it but it certainly won't stop him and other unscrupulous employers with Brass Necks chancing their arms.

When will employers get it, the Minimum rate has little if any impact on the bottom line, the Hotel sector in particular is in ****e and certainly not because of its employee's

Its a ****ing disgrace! Just like the sub contractor and major developers, employee's are getting shafted left right and center and the Hotel sector being the worst offenders.

Totally agree. When the cut in minimum pay was introduced, Brian Lenihan said it was a way to create jobs. How many jobs has this created. I would guess None. Just the same jobs with more profits for employers.

galwayrush

There are many weeks when i would love to be able to draw the minimun wage, as self employed, i can only take what's in the kitty, no work, or some client does not pay i get zero.

phasers

phasers wrote: »

Tesco is the worst offender for price hikes.

Dunnes > Tesco

Even on their own brand stuff? I find if you shop between the three I mentioned, you can save a lot of money.

Princess Consuela Bananahammock

ShamoBuc wrote: »

So our wages go down, we don't/can't buy the produce, they lose their jobs/company..... and this changes the cost of living how exactly

Businesses have to reduce prices in order to sell. In theory, anyway. Pity the hotel never thought of this...

Gingersnaps wrote: »

Totally agree. When the cut in minimum pay was introduced, Brian Lenihan said it was a way to create jobs. How many jobs has this created. I would guess None. Just the same jobs with more profits for employers.

... pity Brian didn't think of it either (or chose not to, in keeping with his poredecessors).

Dempo1

chillywilly wrote: »

two options

1. Hotel closes due to high costs and low income, staff lose their jobs.
2. Hotel staff take pay cut and keep their job, hotel hopefully stays open.

A rather simplistic view on what is actually happening in this sector.

Hotels generally are and have been trading at substantial losses and for quite some time. Toxic hotels under receivership or within NAMA are essentially being kept open because of substantial Tax Breaks which only remain in place if the Hotels remain open and trading. In the mean time these Hotels "run by so called management companies" have one agenda only, REVENUE, to pay day to day costs. To generate revenue they have massively reduced prices and therefore profits, in addition services and standards have been curtailed. Cheap rooms are great however ancillary services such as Restaurants, Health centers, amenities have essentially ceased to function. In reality the Kindest and in essence the cheapest thing to do is close these hotels immediately. I sympathies for the staff but sadly through the entire process of keeping loss making hotels functioning, staff and suppliers are being squeezed continuously.

Not a week goes by when another hotel or two is put into receivership. Just recently the Bay view in Killybegs shut its doors with not notice to staff, the diamond coast hotel in sligo called a creditors meeting and just yesterday my own suspicions were confirmed when Carton House (who have been advertising like it was the end of the world for the past 12 months, is in danger of loosing day to day support by its banks.

In the midlands alone i can name 10 hotels and various golf resorts in Receivership and have been so for quite some time. When is this madness going to stop!

ShamoBuc

Ikky Poo2 wrote: »

Businesses have to reduce prices in order to sell. In theory, anyway. Pity the hotel never thought of this...


QUOTE]

I understand that bit!

Wilser1

Dempo1 wrote: »

Took the words right out of my mouth

Noel O'callaghan owns the Davenport Hotel as well as a few others. He donates large amounts of money to Fine Gael and Fianna Fáil. He is paying for influence on Govt policy's like reducing low paid workers wages.

This move is disgraceful and immoral.

If you are going to stay in a hotel Ireland do it ethically and use www.fairhotels.ie to book your stay.

This type of behaviour will be oh so common when we have a blueshirt Govt.

ScouseMouse

Dempo1 wrote: »

Yep here we go, I predicted this on other threads and of course was shouted down by those who just want, cuts, cuts and more cuts. It is not at all surprising this particular hotel was the first.

I think most reasonable employees in every sector understood cuts in wages but has predicted employers will now target anyone currently on minimum rates despite the mantra about this new lower rate being applicable to "New Contracts". I doubt this chance "O Callaghan" will get a way with it but it certainly won't stop him and other unscrupulous employers with Brass Necks chancing their arms.

When will employers get it, the Minimum rate has little if any impact on the bottom line, the Hotel sector in particular is in ****e and certainly not because of its employee's

Its a ****ing disgrace! Just like the sub contractor and major developers, employee's are getting shafted left right and center and the Hotel sector being the worst offenders.

So just lay the staff off as its unviable to pay them, get the remaining staff - who want to work- to take up the slack. Job security is obviously not a consideration for the strikers.

phasers

superscouse wrote: »

So just lay the staff off as its unviable to pay them, get the remaining staff - who want to work- to take up the slack. Job security is obviously not a consideration for the strikers.

So the other staff have to do more work for less money. Totally fair.

challengemaster

phasers wrote: »

It doesn't happen at all! The price of pretty much everything has gone up recently, have you been food shopping lately? Put petrol in a car? Paid a phone bill?

S'all related tbh. Every time the government hikes the price of petrol, it impacts on every other form of goods we buy, because we're an import country, it ALL has to be transported here, and then around the country.

Price of fuel goes up -> cost of shipping goes up -> cost of goods go up

Which is why anyone who thinks the cost of things is going to fall unless petrol prices fall drastically is completely dreaming.

For anyone that cares - breakdown of fuel prices from pumps.ie

Petrol
Current average petrol price: 144.9
Current Vat: 25.15c/litre
Fixed Duty: 59.622c/litre
Government take: 84.77c/litre
Cost before tax & duty: 60.13c/litre
Retailer & distributor margin (est): 11c/litre
Base petrol price (est): 49.13

Diesel
Current average diesel price: 139.9
Current Vat: 24.28c/litre
Fixed Duty: 48.57c/litre
Government take: 72.85c/litre
Cost before tax & duty: 67.05c/litre
Retailer & distributor margin (est): 11c/litre
Base diesel price (est): 56.05

ScouseMouse

phasers wrote: »

So the other staff have to do more work for less money. Totally fair.

I dont know what you do for a living, but most people I know have to work harder these day - me included. Up from 60 to 80 hours a week. I am self employed, no strikes or dole for me !

And as I read the OP, the rest of the staff HAVE signed new contracts.

Princess Consuela Bananahammock

superscouse wrote: »

So just lay the staff off as its unviable to pay them, get the remaining staff - who want to work- to take up the slack. Job security is obviously not a consideration for the strikers.

superscouse wrote: »

I dont know what you do for a living, but most people I know have to work harder these day - me included. Up from 60 to 80 hours a week. I am self employed, no strikes or dole for me !

And as I read the OP, the rest of the staff HAVE signed new contracts.

Again, what eveidence is there to suggest OC hotels are hard up? If they are, why not reduce prices in order to generate more business? WHy did they not ask for voluntary redundancies?

Of course the staff signed new contracts - their employer threatens to fire you if they didn't. Job security is worth feck all when your employer hands you a contract while making threats at the same time.