A lock out
June 22nd, 2010 at 1:00 pm by David FarrarDarien Fenton blogs at Red Alert:
Today I went to support the locked out staff at Auckland’s 4.5 star hotel, the Rendezvous – that’s the staff who keep the hotel clean and help provide an enjoyable stay for hotel guests.
I have to say I don’t like employers locking out staff as a way to solve a pay dispute, just as I think strike action over pay disputes should be a last resort also.
From an employers point of view, there is even less reason to do a lock out. If one can’t settle a pay dispute, then the existing terms and conditions carry on. So locking staff out has a certain bullying factor to it.
This trans-national hotel chain is offering a measly pay increase of 1.5% from now (no backdating) for two years until 2012.
1.5% over two years isn’t a lot. However would have been useful for Darien to specify what their current rates are, so one can judge in context. Also of interest is how profitable that hotel is. If the hotel is losing money, then that might explain it.
The last pay increase was in January 2008 so the workers have already been 18 months without a pay increase. And there’s a catch. The employer wants the workers to give back one day’s sick-leave, to increase the costs of staff parking and remove a subsidy for health insurance. The Rendezvous says this is the final offer and the workers have been locked out from their jobs until they accept it.
As I said earlier, I don’t like employers who lock out staff to try and force them into accepting a pay offer. Again it would be useful to have more precise details of the “claw backs” such as how much sick leave is there currently, what is the current cost of staff parking and the current health insurance subsidy.
Look at these workers. Are they militants? Are they highly paid? I don’t think so. One housekeeper told me that she is expected to clean 18 rooms a day – an increase in 4 rooms since the Rendezvous took over the former Carlton Hotel. Isn’t this a productivity increase? Isn’t this supposed to deliver better wages?
I agree – greater productivity is what should lead to higher wages. Again, would be useful to have some stats on whether 18 rooms a day (I presume an eight hour day) is standard for the hospitality industry.
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- Air NZ lock out
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- Labour hating the Mad Butcher
June 22nd, 2010 at 1:24 pm
Don’t spoil a good story with the facts!
Vote:June 22nd, 2010 at 1:27 pm
well, i haven’t had a pay increase for 10 years. being self employed, you cannot just give yourself one year on year.
So, stiff bikkies to them.
Vote:June 22nd, 2010 at 1:27 pm
Some years ago The Cook was a room inspector at the then Carlton Hotel. Her job was to check up to make sure the slack arsed sluggards had done their jobs properly. There were only a very few reliable cleaners while most were sloppy to say the least. The biggest problem the hotel had was never knowing how many of these people would actually turn up for work each day.
If they are being offered 1.5% then it is highly likely they are worth no more than that. Maybe they could seek employment elsewhere.
Can’t quite see the point of a lock out though. Who is cleaning the rooms today? The Maitre de?
Vote:June 22nd, 2010 at 1:31 pm
FFS I’ve just noticed this bit of gratuitous nonsense:-
“….and help provide an enjoyable stay for hotel guests.”
Shitting dogs, you mean all the other hundreds of staff in the hotel DON’T help provide an enjoyable stay?
Vote:June 22nd, 2010 at 1:31 pm
I’d be interested why a lock out – seems a bit drastic, and can’t see the benefit for the hotel.
My guess is that this new chain has bought the hotel, done a benchmark, and decided that the staff in this hotel are paid more than elsewhere. They’re trying to get the terms and conditions in line with their competitors/other hotels elsewhere in the country. But that’s only a guess, and even if that were true, seems a pretty hard nosed way to go about it.
Are the hotel telling us anything about what they’re up to? I’m not sure I find Ms Fenton to be a reliable source unfortunately.
Vote:June 22nd, 2010 at 1:36 pm
Most cleaners (if they are resonably good) should clean a studio in 23mintues.Almost all hotels throughout the world have had a decrease in room rates of up to 30%.
Vote:In fact NZ hotels have amonst the cheapest hotel rates in the world.
While it would be great to pay wage increases,most hotels are struggling to break even let alone make a profit.
If I was a cleaner I think I would be happy to just have a job at the moment as we get 10-15 people in every day looking for work.
June 22nd, 2010 at 1:59 pm
David,
As I understand it there are printed rates in the document below the minimum wage, as they haven’t had a pay rise for 18 months and the minimum wage has caught up. So here we have a minimum wage employer locking out their staff for seeking a below inflation pay increase without cutbacks.
IMHO with the Rugby World Cup and 5.9% inflation looming, the workers deserve far more than that.
The managers are apparently doing the rooms – guests have said the rooms are looking tardy and unprofessional.
[DPF: As I hope was evident from my post, I'm pretty sympathetic to the staff. I just wat as many relevant facts as possible]
Vote:June 22nd, 2010 at 2:03 pm
Joe:
Vote:1. If there are rates below minimum wage, that is illegal. Evidence of this?
2. 5.9% inflation looming. Really? What evidence of that? The governor of the reserve bank should be getting sacked if that’s true.
3. I have no doubts that if the managers are doing the rooms, they’d be looking pretty shabby. Firstly, managers aren’t cleaners, whilst it’s a low skill job it does take some practice. Secondly, I assume there are a lot fewer managers than there are cleaners. Having said that, I’m sure even when the cleaners were doing the job you could find guests who have said the rooms looked unprofessional (not sure how they look tardy). This anecdote has no value as it can’t be reasonably backed up, and ultimately it’s irrelevant to the discussion anyway.
June 22nd, 2010 at 2:10 pm
I weep for their plight, I truly do, but my god, doesn’t the SFWU have a decent photographer/choreographer for these events? Check out the last photo of a woman banging a hubcap with a twig I assume she’s torn off the trees behind her, beside a sign that says Pay Us What We’re Worth etc etc. Vandals are a dime a dozen. I’m receiving conflicting messages from that image.
“Can’t quite see the point of a lock out though. Who is cleaning the rooms today? The Maitre de?”
Industrial disputes often enter a Twilight Zone of reasoning.
Vote:June 22nd, 2010 at 2:15 pm
Its hard to get decent staff these days and if you pay peanuts you get monkeys.
Vote:
June 22nd, 2010 at 2:19 pm
18 rooms a day would be 4-5 hours and then, unless they are suites, still a bloody easy job.
Most hotels I’ve worked at would budget 12 minutes per standard room, 15-16 for large rooms, suites as long as 20 minutes.
I won’t comment on the skill levels required, it is bloody hard work and there are some very good people out there but will suggest that if the employees are doing a great job in a good time no reasonable employer would pay below premium rates simply because the “workers” never hesitate to leave with minimum notice whenever they see a new set-up emerge or find a place paying more.
Having had a pay decrease for the last two years (I’m self employed) due to the recession I have little sympathy with the demand for a higher rise and wonder if the lock-out was not prompted by a work-to-rule threat or similar.
Vote:June 22nd, 2010 at 2:25 pm
Oops.
Vote:June 22nd, 2010 at 2:25 pm
PaulL – I think you misunderstand the difference between printed and paid rates. If you have a employment agreement that states a minimum rate of say 12.55, and the minimum wage goes up to 12.75 the next April then the workers should be paid $12.75. For low paying employers this has the impact of flattening out the wage scale, so a document with printed rates below the current minimum is a good indication there are significant numbers of people on low wages. I thought that was the best way to address David’s question.
(please be clear the numbers above are a hypothetical example).
5.9% inflation is the Treasury forecast for the year to March 2011. Its not really Bollard’s fault – 2% of this is the increase in GST – somehow I doubt you are going to call for Mr Key to resign
Treasury is forecasting for the average wage to increase 2.6% that year – which again highlights that the workers at Rendezvous really deserve more.
Vote:June 22nd, 2010 at 2:31 pm
Obviously these folk are forced to work at gunpoint.
Vote:June 22nd, 2010 at 2:35 pm
I agree – greater productivity is what should lead to higher wages. Again, would be useful to have some stats on whether 18 rooms a day (I presume an eight hour day) is standard for the hospitality industry.
Productivity and wages are tightly linked, but not because unionists strike and employers lock their workers out. They are linked because employees seek employers who pay well, and employers must pay at or close to the going rate to keep their employees. That is: competition.
So how can stats help here? What statistic can give you an idea of whether the hotel is paying the going rate, taking account of conditions? How about just leaving it to the employer and employees to work it out?
It is ludicrous having hotel staff going on strike and the hotel responding with a lockout. Both parties have essentially unlimited alternatives in front of them. What each party is doing right now is beating the other side over he head the right to keep working with them.
Just. Go. Elsewhere.
Vote:June 22nd, 2010 at 3:07 pm
Oh, boo f-ing hoo. I have had a ten percent pay cut for the last year now – its just been restored – there is no prospect of my firm being able to pay even a 1.5% a salary increase until it STARTS TO MAKE SOME MONEY again. Why do the unions fail to understand this nexus?
Vote:June 22nd, 2010 at 3:27 pm
Why do the unions fail to understand this nexus?
So don’t we need to find out if the hotel is making money or not first?
Vote:June 22nd, 2010 at 3:31 pm
“So don’t we need to find out if the hotel is making money or not first?”
Nope entirely irrelevant. The hotel can either pay enough to attract workers or it cant. If it cant it goes out of business. If it can it should pay no more than is needed to attract and retain the desired workforce. At that point it doesnt matter a damn whether the hotel makes one or one trillion dollars.
Vote:June 22nd, 2010 at 4:00 pm
Stephen
>> Why do the unions fail to understand this nexus?
> So don’t we need to find out if the hotel is making money or not first?
Stephen how much do you make?
Oh I see. You’re doing quite well for yourself. Plainly that student you hired last Saturday to tidy up the garden ought to get an extra $5/hour. Sure they’ll work for less, but you can definitely afford the extra. In fact I think $7.50 extra would do nicely.
Let’s draft some legislation for force you to negotiate in good faith and share your income. That’ll fix things.
Vote:June 22nd, 2010 at 4:06 pm
a measly 1.5%? i bet if a dude on a million bucks a year got that sorta pay increase he would be speaking about the actual dollars.
Vote:June 22nd, 2010 at 4:19 pm
Joe:
If we’re including the GST increase in the inflation, would we also include the tax cuts in the pay rises that they receive this year? Just saying.
Is the underlying inflation really forecast to be 3.9%? That’s disgraceful – anyone would think that we’d gone and changed the Reserve Bank Act to allow that or something. Wonder who did that.
Understand your point on the printed rates and the minimum wage. I didn’t realise that was the mechanics of how the minimum wage worked – I thought it was just unlawful to offer pay rates below the minimum wage, not that you could offer whatever you wanted so long as you actually paid the minimum wage.
So your point is that at least some of these workers are already on the minimum wage, so it is unlikely that they are being paid substantially more than competing hotels. Unfortunately, the existence of a pay scale with some staff on minimum wage doesn’t tell us how many staff are in that situation. I assume there aren’t all that many people on the minimum wage here – I don’t see why the Hotel would lock staff out if they’re paid minimum wage – ultimately their pay rises are determined by the government anyway, so little to argue about. It isn’t like these staff can agree to be paid less than the minimum wage. Logically there must be a significant proportion of staff paid more than the minimum wage, either that or the Hotel management are completely off their rocker (which is also possible given they even though a lock out was a good idea in the first place).
Vote:June 22nd, 2010 at 4:34 pm
“…PaulL (3333) Says:
June 22nd, 2010 at 4:19 pm
Joe:
If we’re including the GST increase in the inflation, would we also include the tax cuts in the pay rises that they receive this ..”
(pssst..!…sshhh..!…they got s.f.a…eh…?..)
the rich did ok tho’….eh..?
it is national … after all…
..eh..?
phil(whoar.conz)
Vote:June 22nd, 2010 at 4:38 pm
Ben, Stephen makes a good point. I’m self employed but I have very little control in what I receive in an income over the year. Last year (June to may) income probably down $100,000, commodity prices drop, drought etc. This year it may be $200,000 the other way, who knows. But when my income drops some outgoings increase, they never seem to decrease. So I have to tighten the belt. I may not hire contractors for certain jobs, I may suspend repairs and maintenance, I try to save. The unions live in some fairy tale world where money just magically appears. Yes the workers should be paid what they are worth but never ending increases will eventually kill the very business they need to survive. There has to be sense on both sides.
Vote:June 22nd, 2010 at 4:40 pm
What the fuck is the point of joining a Union – they seem to keep the lowest paid on the lowest possible wage!
If I was in a union, and the best they could do is slightly over minimum wage – I’d be demanding a refund on my dues! What is their negotiating style? Half arsed threats of strike action?
Vote:June 22nd, 2010 at 4:43 pm
PhilU:
Don’t know why I bother, but anyway. What % tax cut did the low paid get? Better than, say 2%? I thought the analysis said that pretty much everyone except the rich with property would be better off after all the changes. If the GST increase is material, then the tax cut must also be material. Simple logic really, but I’m not surprised you can’t follow it.
Vote:June 22nd, 2010 at 4:47 pm
“..side show bob (2519) Says:
June 22nd, 2010 at 4:38 pm
Ben, Stephen makes a good point. I’m self employed but I have very little control in what I receive in an income over the year. Last year (June to may) income probably down $100,000, commodity prices drop, drought etc. This year it may be $200,000 the other way, who knows…”
this is the guy who has his financial-affairs ‘arranged’ into a trust….
this so he is eligible for ‘working for families’…
(this is a quote/sneer from him::
“i don’t need working for families…i just use it to pay my taxes..’…)
he also likes to kick sole-parents/benificiaries around..
urging/arguing their pittances should be cut/torn from them…
..the public face/a textbook/telling example of the greedy/fuck-everyone-else right….
..eh..?
phil(whoar.co.nz)
Vote:June 22nd, 2010 at 4:51 pm
if you insist paul..
a couple of bucks..?…gone before it arrived..?..eaten up by gst etc…etc….
strawman -argument from you..?
as per normal..?
phil(whoar.co.nz)
Vote:June 22nd, 2010 at 4:55 pm
and how about that sean….
most of his comments..over time..have been about him gloating about how rich he is…..
..how he loves paying minimum wage..
..driving suv’s over baby penguins…
and pearls of that ilk…
..now he is crying ..’poor me..!’..
wha’ happened..?
sweetpea…?
..are you just pulling it all out of yr arse…?
..and really you are just one of those young/sweaty act-oids….?
phil(whoar.co.nz)
Vote:June 22nd, 2010 at 4:59 pm
really..the story is about scumbag bosses….knowing they have a rightwing govt right behind them…
..just acting-out their ‘fuck-the-workers!’-fantasies..eh..?
..just business-as-usual really…
..eh..?
phil(whoar.co.nz)
Vote:June 22nd, 2010 at 5:00 pm
Phil, no answer then? How about I make it much clearer for you.
1. Is it true or false that, for someone on the minimum wage, that the GST increase is offset by other tax and benefit changes?
2. If, as I expect given all reporting on the topic, it is true that the rise is offset, for what reason do you think the increase in GST is a material impact on those on the minimum wage, but the offset of that increase is not?
I love the way some on the left love to talk percentages when it suits, and dollars when it suits. So a 2% increase in GST – that’s huge. A few dollars a week increase in pay, nothing. Pity they’re both the same number….
Vote:June 22nd, 2010 at 5:16 pm
are you a particularly obsesive virgo there..paul..?
..maybe with capricorn rising..?
..setting new benchmarks for ‘anal’..?..
..on a regular basis….?
..(please..!..list yr (current) obsessions/’tics’…eh..?..)
..it’s a couple of bucks..numbnuts…!
wtf are you on about there..?
…’strawman-paul’..?
..eh..?
phil(whoar.co.nz)
Vote:June 22nd, 2010 at 5:23 pm
No answer again Phil? Is it really so hard to say true or false? If you like you could put some dots in there too. So, perhaps:
…….true…………
Or, if you prefer
Vote:….
.. … …….. true…
….
….
June 22nd, 2010 at 5:43 pm
http://blog.labour.org.nz/index.php/2010/06/22/bed-making-challenge/#comments
Here is the best example of why these workers are not worthy of a payrise at all. It took 3 of them 1 minute and 50 seconds to make this small bed and look at their result? A bed that would unmake itself the moment you got in it.
Andretti above has explained it perfectly and is clearly involved in the industry. NZ hotels are among the cheapest in the world – I agree because I pay for them when I visit. I also agree that many are deteriorating due to lack of refits, clearly caused by cashflow difficulties. Workers cannot differentiate their inability to afford a night in a room they are cleaning, with the costs and falling revenues of hotels in the industry.
The Rendezvous Hotel can advertise itself as being 4.5 star all it likes. But it is not. You can pick a room up off wotif for $135-140 at the moment. That’s Bangkok pricing, without of course the friendly efficient service level.
Vote:June 22nd, 2010 at 6:03 pm
To all the wailing, gnashing of teeth, and obfuscations about “fair wages” and “what employers can afford” that inevitably accompany industrial action, I say BULLSH!T.
Employers hate unions because they have to negotiate wages with pro negotiators, instead of small weak poor people.
Union members hate employers because they own Mercs, Audis and nice houses.
But so what? Strikes and Lockouts are just wage negotiations with the kid gloves taken off. I LOL at anyone making it into a polemic against “the left” or “the right” or using it to prove their personal economic theories.
Vote:June 22nd, 2010 at 6:23 pm
Gee Philly are the bed sores giving you grief……eh ?
It must really get up your nose that Shyster Shonkey hasn’t closed the loop holes…….eh?
Shit it really must piss you off when we help ourselves to your “entitlements”……….eh?
Don’t you just love this socialism lark……….eh?????????????
Vote:June 22nd, 2010 at 7:17 pm
Look although i dont agree with the lockout,i also dont know of the history of this dispute.
Vote:Im telling you most large Hotels have shut up shop as far as spending goes.Most banks dont want to know about the hospo industry at the moment,every fixed cost has increased and room rates have gone down.This simply does not compute and places most operations at risk.
The customer who is king sees an oportunity to get a cheap room and rightly so will play hotels off against one another to get what they want.The consequense being capped wages and redundantcies..As far as the 2 months of the world cup goes it will be great to claw back some margin to offset the last 3 years of slack/no profits but in itself will not save the industry.
June 22nd, 2010 at 7:23 pm
gloat away..!..bloody-hands-bob…!
show the world what a total piece of crap you are…
..eh..?
you and yr greed/fuck-everyone-else…(plus in yr case..how u r making yr money…and fucking our environment at the same time)-driven politics..
..how many animals did you hurt/kill today..?
…bloody-hands-bob..?
..making blood-money from cruelty…..
does it smell rotten/bad..?
that blood-money…?
..or does the smell of the blood..
..just add a ‘spice’ for you..?
phil(whoar.co.nz)
Vote:June 22nd, 2010 at 10:24 pm
I asked about the 6th comment if the hotel made a profit last year and no one answered… Surely this is the most crucial fact..?
But basically all that was said is “Hooray for strikes”…
Vote: