Fife hospitality jobs could be at risk despite employment retention scheme

With many hospitality businesses forced to close during the coronavirus pandemic, Chancellor Rishi Sunak has put in place multi-billion-pound measures to aim to safeguard jobs.

Latest figures suggest there are 8125 jobs in the Kingdom tied to the hospitality sector.

Unite the union warned some firms were already choosing to pay people off across the country instead of putting them on furlough.

People working in restaurants, bars and hotels face uncertainty and unemployment despite a major Government jobs retention scheme, a trade union has warned.

An estimated two million people are employed in the UK’s hospitality trade, according to official figures.

Unite’s national officer for hospitality, Dave Turnbull, said: “These figures show just how many people rely on the hospitality industry for employment, and the severity of the dangers the coronavirus crisis poses to their livelihoods and the health of local economies in general.”

He warned that many workers in the sector are “never more than a pay cheque away from the breadline”.

Mr Turnbull said the union was already coming across examples of businesses which had decided to lay staff off rather than place them on furlough under the Government’s scheme.

And he said there was “no excuse for companies not to join the scheme and so protect their workforces”.

“For bosses that don’t rehire fired staff or refuse to sign up to the job retention scheme, Unite’s message is clear: We will expose you, we challenge your behaviour and we will take legal action for unfair dismissals.”

Hospitality trade association UKHospitality also urged employers to sign up to the wage-support scheme.

Its chief executive, Kate Nicholls, said that “not only will it safeguard jobs, it will also put the sector in a much stronger position to help rebuild the economy after the crisis has passed”.

On March 20, Prime Minister Boris Johnson ordered all bars, clubs and restaurants to close across the UK as part of the introduction of social distancing measures to limit the spread of coronavirus.

A rescue package for businesses and workers was immediately announced, which included the promise of a wage-support scheme for workers across the UK.

Hospitality, retail and leisure sectors in England were given a business rates holiday, while in Scotland extra funding was promised under the Barnett formula.

A Scottish Government spokeswoman said it had so far delivered a £2.2bn economic support package.

She said: "For the hospitality and tourism sector that includes a full year's non-domestic rates relief, £10,000 grants for small businesses in receipt of the Small Business Bonus Scheme or Rural Relief, and £25,000 grants for hospitality, leisure and retail properties with a rateable value between £18,000 and £51,000, including self catering accommodation and caravans.

"We also opened a business support line to provide advice for those affected by the crisis.

"We need employers, trades unions and workers to work together to reach the right decisions on all workplace issues that arise throughout the coronavirus outbreak and ensure workers are treated fairly, and would encourage businesses to engage with the Job Retention Scheme rather than make staff redundant.”