SA HOSPITALITY IN THE SPOTLIGHT AMID DEPT. OF LABOUR AND EMPLOYMENT INSPECTION BLITZ

By Ml. Luqman Skink, INX Prime News and Current Affairs Editor

The South African hospitality sector is in the spotlight again after a four-day inspection blitz conducted by the Department of Labour and Employment at up-market restaurants in the Sandton and Menlyn shopping malls.

The crisis was sparked by a social media post by a former waitress who complained about ill-treatment and unfair labour practices at the swanky Menlyn Mall restaurant, Babel. In the resultant public outrage, it became evident that restaurant staff were employed without receiving a basic salary but were paid through tips left by patrons. It also emerged that deductions were made by restaurant owners for breakages, shrinkage, and various other misdemeanors. The young lady in the clip bemoaned the fact that all she earned sometimes after an extremely long shift was a paltry R100.

The Department of Labour and Employment, accompanied by the SAPS and Immigration, then paid a visit to the establishment where they found numerous violations of the basic conditions of employment, undocumented foreign nationals, and that some health and safety regulations had been ignored. The Babel Restaurant manager was fined R10,000, while the chef and two others were charged for being in the country illegally. At the Sandton City Tang Restaurant, four undocumented workers alongside a human resource manager from the Tang restaurant were arrested.

RASA: Labour Department Blitz is Unfair Labour Practice

Wendy Alberts, CEO of the Restaurant Association of South Africa, said the industry has always been a respectful entity and one that makes considerable effort to be compliant and adhere to the law. She said it is concerning that this is the level things had to get to in auditing compliance.

She acknowledged that the mentioned restaurants were not compliant and did not follow the law. However, the chaos that followed traumatized restaurant staff, patrons, and led to turmoil in the sector. Alberts pointed out that while it is good that these conversations about workers' rights and compliance are happening, restaurant owners still feel targeted.

“What I really want to understand is why can we not have a dignified meeting where an appointment is made, an inspector in uniform comes to the establishment, the paperwork is examined, and a proper audit is done. Instead, we have this behavior that is also tantamount to unfair labour practice.”

Bargaining Council Agreement on Commissioned Work

Referring to a bargaining council agreement allowing commission waiters to work in the industry, provided the commission is not less than the minimum wage, Alberts mentioned that the viral video has led to misunderstandings.

She explained that there is a need for an educational process from the department regarding the interpretation of contractual agreements that staff enter into. On the topic of minimum wage, Alberts said that it is not true that workers in the restaurant industry earn less than the basic minimum wage.

“There are many different ways to pay the minimum wage in our industry. In the collective agreements made by the industry, and voted for by the majority of restaurant staff, waiters and waitresses can earn commission over and above their tips.”

Minimum Wage Clarification

Alberts emphasized that the notion of restaurant workers earning less than the minimum wage is misleading. She expressed disappointment at the distortions and sensationalism surrounding the viral video, stressing the importance of a respectful relationship between the industry and the Department of Labour, with open lines of communication so staff can report unfair labour practices.

“The restaurant industry is built on integrity; it costs millions to open a restaurant... but we need to be an industry that is respected. If we had these relationships, we would not find ourselves in the situation of these raids. While we are not against audits, they need to be done in a dignified way where our staff are protected, our patrons respected, and the economy considered.”

Is this an unfair targeting of the hospitality industry? And how should foreign nationals, who form a vital part of the industry, be regulated? Share your comments below.