Barriers Aims and Ambitions

Barriers to Businesses Adopting Fair Work

The Inquiry group identified a number of challenges that impact the sector which are set out in Figure 32. These issues shape the context for improving fair work outcomes in hospitality. While some of the issues identified are linked to the current economic context, influenced by Brexit, Covid-19 and the cost crisis, others are longstanding structural issues within the sector. All are relevant when considering how to support improved fair work practice.

Figure 32 - Barriers to adopting fair work

Nature of the sector

• Diversity of businesses and business needs
• Seasonality
• Fluctuating demand.

Financial barriers (tight margins limiting investment):

• Supplier costs
• VAT
• Business rates
• Energy costs
• Debt repayment
• Cost of meeting other legislation (e.g. DRS)
• Other business investments (e.g. staff accommodation)
• Rising island and rural costs
• Some elements of fair work have upfront cost implications.

Practicalities of Hospitality

• Negative perceptions of the sector
• Cost of living crisis reducing customer demand / increasing customer expectations
• Limited trade union recognition
• Undesirable cultural norms
• Staff shortages, Nature of work-weekend /evenings
• Reliance on temporary / transient staff
• Loss of EU staff
• Dependent on other infrastructure (e.g. transport and housing)

Knowledge of and Buy-In to Fair Work

• What does fair work look like in practice across all dimensions?
• Which fair work elements are low cost to implement?
• Understanding what workers need / want - i.e. facilitation of workers’ voice
• Limited communication of the benefits of fair work
• Priorities of owners under certain ownership models

Capacity and Training: Small business do not have dedicated HR to pursue fair work, Role of, and access to, apprentices, Uptake of training, Senior managers and / or line manager understanding of fair work - training need, Lack of fair work support and advice, Employers’ ability to support and pay for training.

Aims and Ambitions for the Future

Despite the barriers outlined above, the Inquiry Group had strong ambitions for the sector which are set out in Figure 33. The Inquiry Group also recognised that by significantly embedding fair work that many of the long term aims and ambitions of employers and workers would also be achieved. For example, there was a strong desire to improve recruitment and retention and to improve the perception of the quality of work within hospitality amongst the wider public, both of which are supported by delivering fair work outcomes.

There was agreement amongst the Inquiry Group that it was also necessary to improve industrial relations and relations between employers and unions in the industry, recognising that issues often played out in the press as there was no effective industrial relations structures and no history of positive joint working in the industry. There was also a strong desire for existing career structures to be recognised and built upon.

Existing Hospitality Industry Aims and Ambitions:

• Industry better supported by housing and transport infrastructure
• Legislation that underpins effective standards in the industry
• Public recognises skills and career opportunities
• Better links to skills system (e.g. colleges and apprentices)
• Improved training (e.g. Line Managers)
• Businesses feel confident to manage workforce in line with good practice and fair work standards
• Businesses motivated and supported to deliver fair work for their workforce
• Workers’ health, mental health and wellbeing supported
• Workers empowered
• Technology and data harnessed

For Employers:

• Sustainable, productive and innovative businesses
• Improved recruitment and retention
• Challenge of poor practice and rights breaches
• Improved employer / trade union relations and increased collective bargaining
• Improved perceptions of work in the sector
• A diverse and inclusive sector
• Employers need better understood by Government

For Workers:

• Workers have regular and reliable hours and pay that provide an adequate standard of living to support them and their families
• Workers clear on their rights and able to access and enforce them
• Workers have been access to effective voice
• Workers able to influence practices and decisions at their workplace
• Work is undertaken in a healthy and safe environment
• Workers can access career progression opportunities within hospitality