Mr. Richie Browne:

I thank the Chairman and members for the invitation to attend.

Unite the Union welcomes legislation to protect the interest of all workers, particularly those working in low-paid and precarious employment. The hospitality sector is one where low pay and job insecurity are major problems for workers. Covering the cost of accommodation in the current economic climate requires a sufficient regular income for most people. Unite the Union welcomed the passing of the Employment (Miscellaneous Provisions) Act 2018, which provides some protection to workers on low-hours contracts. However, we believe more needs be done in a legislative framework to protect workers from exploitation, particularly those working in precarious employment, including those working in the hospitality sector.

The nature of the hospitality sector reflects some of the worst employment conditions in the State. It is a sector that is largely characterised by precarious employment, low pay, insecure and unsociable hours, exploitation and sexual harassment. Many of those working in this sector are on short-term contracts and part-time hours and, as a consequence, many are not earning enough money to qualify for income tax.

This is an issue which is specific to the hospitality sector, and Unite the Union believes it is necessary to have robust legislation in place that will prevent an employer from withholding any part of a worker's wages, including any monetary gifts received as tips or gratuities.

Furthermore, we believe that workers should have a legal right to those tips and criminal sanctions should be in place for any employer who engages in fraudulently confiscating them for any reason, including using them to make up the contracted wages.

Tips are confiscated from workers in the hospitality sector for myriad reasons, including to make up for breakages, a slow night or till shortages. The gratuity paid by a customer to service staff is not intended for any of those purposes. Gratuities are gifts from customers to service staff and should be treated as such. Monetary gifts of this nature and size are not and should not be considered taxable income. There is no need for the involvement of Revenue. The system of tipping staff works without difficulty in the pub and bar trade, where neither employers nor Revenue collectors are involved in the transaction between their customers and lounge or floor staff.

Unite does not agree with the findings of the Low Pay Commission in the context of placing the protection of tips on a legislative footing and believes that the research conducted by the Low Pay Commission was insufficient. Unite wants to see the introduction of better rates of pay in the sector. However, the insecurity and part-time hours that are common mean that many workers inevitably rely on tips in order to make ends meet.

Unite supports the legislation drafted by Senator Gavan, namely, the National Minimum Wage (Protection of Employee Tips) Bill 2017. We feel that the Bill, situated in the framework of employment protection legislation, is adequate to give workers in the hospitality sector a right to tips and gratuities that they earn, is robust in terms of sanctions for rogue employers and provides a mandatory requirement for employers to display their policy publicly, making it transparent for staff and customers. A clear commitment put on display by management outlining its policy will send a clear message to customers, encourage good working practice and benefit those good employers who do not engage in stealing from their staff. The Minister’s proposal represents a step back from Senator Gavan's Bill. It does not ensure workers a legal right to tips or provide a criminal sanction for bad employers who steal from employees. The Senator's Bill has been passed in the Seanad and has completed Second Stage in the Dáil. Unite would like to see it progress further.