The Restaurant Association, buoyed by a recent political victory, anticipates the imminent scrapping of fair pay legislation along with the reinstatement of 90-day trials by the National-led Government. However, Unite Union views this development in a less favourable light, viewing it as a regression.
Part of the National Party’s 100-day action plan, these changes have sparked some optimism within the restaurant industry. A post-election survey by the Restaurant Association revealed a promising outlook, with 80% of nearly 300 businesses expressing positivity about the potential impacts of this governmental change. However, Unite Union National Secretary, John Crocker, disparages such move and claims it could instigate a decline in standards.
According to Crocker, the hospitality sector is already saturated with cases of employment abuse. Acknowledging the need to rectify the rampant breaches in minimum standards is critical, he said. A reintroduction of 90-day trials is likely to exacerbate these issues, opening avenues for workers to be unfairly dismissed for flagging legal breaches, such as missing break periods.
Marisa Bidois, chief executive of the Restaurant Association, staunchly defends the employment trials. She argues they provide an opportunity for both employers and employees to ascertain fit. Moreover, according to Bidois, the trials offer a balanced risk distribution, which many business owners find appealing. Current legislation presents numerous challenges for them, she said.
With the restaurant industry grappling with various hardships, both finical and otherwise, over the past few years, Bidois stresses the need for owners to maintain optimistic prospects for the future. According to her, it is essential for growth and innovation within the sector.
However, Crocker counters this argument by stressing the importance of viewing fair pay not only as a cost but also as an investment. Higher minimum wages could potentially lead to increased customer base and a more robust economy.
Auckland restaurant The Conservatory’s owner, Tricky Hartley, believes that employers should be at liberty to determine the best choices for their staff and business without being burdened by bureaucratic red tape. He is of the opinion that a good employer will fairly remunerate their staff and that the majority of the industry does so.
Max Gordy, co-owner of Wellington Graze Winebar, agreed, emphasizing the importance of maintaining an open dialogue between employers and employees to foster a healthier workplace environment. He added that while his small business model allows for fair pay, larger businesses might find it more challenging.
