By: Dr. Charalampos (Babis) Giousmpasoglou, Bournemouth University Business School.
The UK hospitality industry, despite its critical role in the national economy and job creation, has long grappled with significant challenges regarding employee working conditions. Issues such as low wages, precarious contracts, and high turnover rates create an environment that can exploit rather than empower the workforce. Recent studies emphasise that enhancing working conditions is vital for both the well-being of hospitality employees and the industry’s long-term sustainability. This article explores these challenges and the proposed Fair and Decent Work Agenda (FDWA), a strategic approach to creating a fairer, more humane hospitality industry in the UK.
The State of Working Conditions
Hospitality in the UK is marked by structural issues that have gone unaddressed for years. Most prominent among these issues are low pay, high job insecurity, and long working hours with minimal benefits. Several studies identify that the industry is characterised by a disproportionately high number of migrant workers, many of whom endure unstable income and insufficient protection under current employment laws. The COVID-19 pandemic exacerbated these vulnerabilities, pushing many workers into even more precarious positions without fair compensation.
Moreover, there is an evident imbalance in power dynamics, as employers often leverage zero-hour contracts, creating a situation where employees remain at their mercy regarding hours and pay. Flexible schedules often translate to extended and erratic work hours, undermining employees’ ability to maintain a work-life balance. These conditions lead to increased stress and mental health concerns among workers, creating a negative cycle where job satisfaction remains low, and turnover rates high.
Worker exploitation and substandard working conditions are most prevalent at the lower end of the hospitality sector, particularly in small, independent, and family-owned businesses, as well as in the gig economy. This segment includes roles such as delivery drivers, spa and wellness specialists, and kitchen staff in ‘dark kitchens’ that serve exclusively online orders. These positions often lack job security, fair wages, and basic employee protections, creating a challenging work environment with limited oversight and regulation.
The Fair and Decent Work Agenda (FDWA)
The Fair and Decent Work Agenda is grounded in principles established by the International Labour Organisation’s Decent Work Agenda, promoting equity, security, and human dignity in employment. This approach emphasises the need for fair wages, reasonable work hours, job security, and opportunities for advancement, aligning closely with the United Nations’ Sustainable Development Goals. Implementing this agenda within the UK hospitality industry could transform the workforce’s experience by ensuring fair treatment and contributing to the industry’s broader reputation and sustainability.
The FDWA advocates for collaboration among stakeholders – including government bodies, industry leaders, and labour unions – to foster meaningful, enforceable improvements. By setting an industry standard for fair work, the agenda aims to benefit not only employees but also the businesses that rely on their hard work and dedication.
Key Components of the FDWA Implementation
The key components of implementing the FDWA in the UK hospitality industry include, but are not limited to, the following:
- Guaranteeing a Living Wage: Unlike the national minimum wage, a living wage accounts for regional cost variations, ensuring that employees and workers can meet their basic needs without financial stress. For businesses, offering a living wage could reduce turnover and boost employee morale, creating a more committed and productive workforce.
- Enhancing Job Security: Reducing the industry’s dependence on zero-hour contracts and temporary roles is crucial. Hospitality businesses should offer stable, permanent contracts that guarantee a minimum number of hours, allowing employees to plan for their futures with a sense of security.
- Improving Working Conditions: Addressing excessive work hours and inadequate breaks is essential to creating a safe and humane work environment. Policies and best practices promoting diversity, inclusion, and non-discriminatory practices will foster a welcoming atmosphere for employees, irrespective of their background or nationality.
- Promoting Work-Life Balance: Hospitality jobs are known for their demands, but introducing flexible scheduling and adequate rest periods can alleviate some of the pressures. Businesses might also consider offering family-friendly policies, such as childcare support or more predictable shifts, to help employees balance work with personal responsibilities.
- Training and Development Opportunities for All: Investing in employee skills benefits both the worker and the employer. Training programs that address health and safety, customer service, and management skills can enable employees to advance within the industry, fostering loyalty and enhancing overall service quality.
- Strengthening Worker Representation: Supporting the formation of trade unions and worker councils gives employees a voice in workplace decisions. When employees have input into their working conditions, they experience greater job satisfaction and are more engaged.
- Enforcing Compliance with Labour Laws: Government intervention, such as rigorous enforcement of labour laws, is critical for maintaining FDWA standards. Raising the minimum wage, monitoring compliance with health and safety regulations, and offering incentives for businesses that adopt fair practices are powerful tools for effecting change.
- Raising Public Awareness: Educating the public on the importance of fair work practices in the hospitality industry can drive consumer demand for ethically operated businesses. When customers choose to support establishments with transparent and fair practices, they create a ripple effect, encouraging others to adopt similar standards. Additionally, NGOs like the Fair Work Convention in Scotland, and the Institute of Hospitality, can serve as influential advocates, acting as pressure groups that shape policy and support the broader implementation of the FDWA.
Addressing Precarity and Exploitation
The FDWA is particularly vital in countering the precarity that plagues much of the UK’s hospitality workforce. Precarity in this context refers to unstable, poorly compensated work that lacks fundamental protections and benefits. A significant portion of the workforce, especially migrant and part-time employees, operates within this precarious framework, leaving them vulnerable to exploitation. A recent study shows that these workers often face barriers in asserting their rights due to immigration status and a lack of awareness about legal protections.
The existence of modern slavery within hospitality further highlights the need for ethical reforms. Many hospitality establishments, especially those with complex supply chains, have been found non-compliant with modern slavery legislation. The Business and Human Rights Resource Centre review in 2019 found that only 25% of surveyed hotel companies met minimum requirements for transparency regarding supply chain risks. Implementing FDWA can close such gaps, creating an environment where workers are free from exploitation and empowered to pursue their careers with dignity.
The Road Ahead for Hospitality
Adopting a Fair and Decent Work Agenda is not merely an ethical imperative; it’s a practical necessity for the UK hospitality industry. Research shows that FDWA’s core principles such as equity, security, and human dignity, are essential to creating a sustainable workforce. When employees feel respected and valued, they are more likely to remain loyal to their employers, reducing turnover costs and enhancing service quality. Moreover, a socially sustainable hospitality industry can attract a more skilled workforce, improving the sector’s resilience in an increasingly competitive marketplace.
Implementing the FDWA will undoubtedly require collaboration and commitment from all industry stakeholders. Government bodies must enforce labour laws more rigorously, and businesses need to adopt inclusive policies that prioritise employee welfare. At the same time, consumers play a role by supporting businesses that commit to fair practices, thereby incentivising the entire sector to adopt FDWA standards.
Conclusion
For the UK hospitality industry, adopting a Fair and Decent Work Agenda could be transformative. Improved working conditions, a living wage, and enhanced job security can help create a fairer, more humane industry that respects its workforce’s contributions. Moving forward, industry leaders, policymakers, and consumers must recognise the value of fair work practices in sustaining a robust, ethical, and competitive hospitality sector. Embracing the FDWA can mark the beginning of a new era for the UK hospitality industry, one where workers’ rights are respected, businesses thrive, and the industry’s reputation flourishes.
