Mr. Rob Kelly:

It is great to be here and to add to what Dr. Curran said. It is great to have such an independent voice here speaking on behalf of the sector and through lived experience. You cannot argue with or beat that narrative, so I thank Dr. Curran. I thank the committee for inviting us here today to discuss the issues around recruitment in the hospitality sector.

As a trade union that organises workers in the hospitality and tourism sector, Unite has been concerned for a number of years about the low standards facing workers in the sector. We carried out a survey in 2020, the findings of which correlate with two other surveys, one by Dr. Curran and another by Fáilte Ireland, that revealed unacceptable levels of low pay, poor working conditions and a general lack respect in the sector for hospitality workers. This disrespect has, unfortunately, been highlighted by ill-informed commentary by employers' representatives who rather than address the low pay in the sector attempt to deflect to a disingenuous claim about social welfare rates, in respect of which Ireland is lowest in its EU peer group. In Unite's survey, 77.2% of respondents said that low pay was the biggest problem in the sector. In the recent research by Fáilte Ireland, 62% of respondents said better basic pay would make the sector more attractive to them.

Our concerns about the standards in the sector were also raised during our union’s campaign to stop tip theft. The fact that workers need to rely on tips from customers in the first place is indicative of wages not being sufficient for people to live on. The fact that some employers would confiscate those tips speaks to the levels of exploitation and disrespect that some workers face in the sector.

Unite believes that the crisis in recruitment in the sector has been exaggerated in some quarters in order to undermine conditions even further for workers and to resist wages increases in the face of rising inflation. In fact, the Nevin Economic Research Institute has challenged these claims by simply monitoring job websites where hundreds of positions were being filled in under two weeks. Notwithstanding this, we believe that low wages and precarious working conditions had an adverse effect on recruitment and retention in the sector for a number of years before the pandemic.

The gap between wages and living costs has been rising for decades. It is unrealistic and unsustainable for people to physically exist while working in low-paid sectors. In the first quarter of 2022, average rent in Ireland was at €1,567 per month. On the minimum wages that are on offer in the hospitality sector, someone would need to work 37.3 hours each week just to cover rent. We should not take for granted the living arrangements of workers. It is not the case that all workers have other supports, including family, or are sharing living costs with others. Full-time pay should be adequate for people to live independently. Hourly rates need to reflect the living wage. If it do not then it is in fact a non-living wage.

Low pay rates also have a negative impact on recruitment from other EU countries. Instead of increasing wages, employer groups are lobbying for work permits from outside the EU in order to pay minimum wages to economic migrants. This is a race to the bottom that has the effect of shrinking the local economy. Ireland has one of the cheapest labour costs in the EU. Average hourly costs, including wages and employers' contributions, are lower in Ireland than any of our EU peer group. While we have seen considerable State intervention in the sector over the years with tax reliefs, Government supports and the pandemic unemployment payment, PUP, during Covid, we have not seen that trickle down to workers' pay.

While low pay is a major factor in recruitment and retention, we highlight the following as other contributing factors. First, perceptions about the sector and who works in the sector are often misleading. It is viewed by many employers and media commentators as low-skilled, temporary and seasonal and a job for students or younger people. This is often used as an excuse for low wages and short-term hours and contracts. The majority of workers in the sector are full time. Ireland has high levels of educational achievement. This raises job expectations that often cannot be matched in the sector. Unite believes that all workers are skilled and that there are no unskilled workers.

Second, structural changes in the sector as a result of automation, particularly at the service end will erase and are already erasing job roles such as hotel receptionists. This can make the sector unattractive to anyone looking for a long-term career path.

Third, the participation of women in the economy is vital. Barriers must be removed in order that they can access the labour market on an equal footing. The first step should be to address the gender pay gap and make it a thing of the past. Access to affordable childcare and travel will also have a positive impact on the availability of people to participate in the labour market.

The fundamental problem in the sector is low pay. Increasing wages, including premium and Sunday rates, will have a positive effect on recruitment as well as the local economy. Conditions for workers in the sector need to be improved to ensure rights across the board to adequate breaks and rest periods, sick pay, holiday pay and full compliance with all other statutory rights for workers.

In addition to the above, what we believe will fundamentally change the position for workers in the sector is the establishment of full statutory collective bargaining rights and access rights for trade unions. The absence of collective bargaining and trade union access has an adverse effect on all workers, especially those in precarious and low-paid employment.