'Subcontracting by Stealth' in London's Hotels: Impacts and Implications for Labour Organising

Authors

  • Yara Evans
  • Jane Wills
  • Kavita Datta
  • Jo Herbert
  • Cathy McIlwaine
  • Jon May

DOI:

https://doi.org/10.25071/1705-1436.97

Abstract

This paper examines the dynamics of change in employment relations in London's hotels. The industry has traditionally used employment agencies to meet short-term labour shortages, but more recently it has turned to agency workers on a 'permanent' basis to cut costs. Drawing on survey data and in-depth interviews with hotel workers in London, we examine the effects of this on labour, documenting changes in pay, and terms and conditions of employment. Our research confirms a trend towards the casualisation of employment in hotels, and highlights the emergence of 'subcontracting by stealth', whereby increasing numbers of staff are employed by agencies with lower wages and poorer working conditions than in-house staff. Given low union-density in the sector, we argue that the Living Wage Campaign, which has been successfully implemented in other sectors of the London economy, might prove an effective means to counter the negative impacts of subcontracting on hotel workers.

References

Adam-Smith, D., Norris, G. and Williams, S. (2003) “Continuity or Change?” The implications of the National Minimum Wage for Work andEmployment in the Hospitality Industry”, Work, Employment andSociety, 17(1): 29-47. DOI: https://doi.org/10.1177/0950017003017001251

Allen, J. and Henry, N. (1997) “Ulrich Beck's Risk society at work: labour andemployment in the contract service industries”, Transactions of the Institute of British Geographers, 2(2): 180-196.

Arrowsmith, J. (2007) “Temporary Agency Work in Europe”, IRRU Briefing, Number 14, Warwick Business School, University of Warwick, 7-9.

Aslan, A. and Wood, R. (1993) “Trade Unions in the Hotel and Catering Industry: the views of hotel managers”, Employment Relations, 15(2):61-70. DOI: https://doi.org/10.1108/01425459310031831

Benyon, H., Grimshaw, D., Rubery, J. and Ward, K.G. (2002) Managing Employment Change, Oxford University Press: Oxford. DOI: https://doi.org/10.1093/acprof:oso/9780199248698.001.0001

Bernhardt, A., Dresser, L. and Hatton, E. (2003) “The Coffee Pot Wars: unionsand firm restructuring in the hotel industry”, in Appelbaum, E.

Bernhardt, A. and Murnane, R. (eds) Low-Wage America: how employersare reshaping opportunity at the workplace, Russel Sage: New York, 33-76.

Byrne, D. (1986) Waiting For Change? Working in hotel and catering, Low PayPamphlet No. 42, Low Pay Unit/GMB: London.

BHA (2006) Sector Profile, Hotels: Introduction, British Hospitality Association(www.bha.org.uk/hotels-profile.asp; accessed 20/10/2006).

Datamonitor (2005) Hotels and Motels in the United Kingdom: Industry Profile(www.datamonitor.com; accessed 20/10/2006).

Davidov, G. (2004) “Joint Employer Status in Triangular Employment Relationships”, British Journal of Industrial Relations, 42(4): 727-746. DOI: https://doi.org/10.1111/j.1467-8543.2004.00338.x

Deery, M. and Jago, L. (2002) “The Core and the Periphery: an examination of the flexible workforce model in the hotel industry”, HospitalityManagement, 21: 339-351. DOI: https://doi.org/10.1016/S0278-4319(02)00013-0

Evans, Y., Herbert, J., Datta, K., May, J., McIlwaine, C., and Wills, J. (2005)Making the City Work: Low Paid Employment in London, Department of Geography, Queen Mary, University of London(www.geog.qmul.ac.uk/globalcities/Report2.pdf).

Fine, J. (2005) “Community Unions and the Revival of the American Labor Movement”, Politics and Society, 33 (1): 153-199. DOI: https://doi.org/10.1177/0032329204272553

Fine, J. (2007) Worker Centres: organizing communities at the edge of the dream, Cornell University Press: Ithaca.

Forde, C. (2001) “Temporary Arrangements: the activities of employmentagencies in the UK”, Work, Employment and Society, 15(3): 631-644. DOI: https://doi.org/10.1177/09500170122119039

Forde, C. and Slater, G. (2005) “Agency Working in Britain: character, consequences and regulation”, British Journal of Industrial Relations, 43(2): 249-271. DOI: https://doi.org/10.1111/j.1467-8543.2005.00354.x

Forde, C. and Slater, G. (2006) “The Nature and Experience of Agency Working in Britain”, Personnel Review, 35(2): 141-157. DOI: https://doi.org/10.1108/00483480610645795

Freeman, R. (2005) “Fighting for other folks’ wages: the logic and illogic of living wage campaigns”, Industrial Relations, 44, 14-31 DOI: https://doi.org/10.1111/j.0019-8676.2004.00371.x

Gallie, D., White, M., Cheng, Y., Tomlison, M. (1998) Restructuring theEmployment Relationship, Clarendon: Oxford.

Goos, M. and Manning, A., (2003) “McJobs and Macjobs: the growing polarisation of jobs in the UK”, in Dickens, R., Gregg, P., andWadsworth, J. (eds) The Labour Market Under New Labour, PalgraveMacMillan: Basingstoke; 70-85. DOI: https://doi.org/10.1057/9780230598454_6

Gray, M. (2004) “The Social Construction of the Service Sector: institutionalstructures and labour market outcomes”, Geoforum, 35(1): 23-34. DOI: https://doi.org/10.1016/j.geoforum.2003.07.001

Hamnett, C. (1994) “Social Polarisation in Global Cities: theory and evidence”, Urban Studies, 31 (3): 401- 424. DOI: https://doi.org/10.1080/00420989420080401

Head, J. and Lucas, R. (2004) “Employee Relations in the Non-union Hotel Industry: a case of ‘determined opportunism’?”, Personnel Review, 33(6): 693-710. DOI: https://doi.org/10.1108/00483480410561565

Holgate, J. (2004) Black and Ethnic Minority Workers and Trade Unions, TUC:London.

Holgate, J. and Wills, J. (2007) “Organizing labor in London: Lessons from the campaign for a living wage”, in L. Turner and D. Cornfield (eds)Labour in the new urban battlegrounds: Local solidarity in a global economy, Cornell University Press: Ithaca, NY; (forthcoming).

Hotel and Training Catering Company (2007) Industry Statistics:(www.hctc.co.uk; accessed 05/04/2007).

IDS (2005) “Pay in Hotels: minimum wage has a growing impact in hotels”, Pay Report 943, IDS: East Sussex.

Keynote (2005) Hotels (www. keynote.co.uk/kn2kl/13522_04; accessed 01/09/2006).

Lai, P. and Baum, T. (2005) “Just-in-time Labour in the Hotel Sector: the role of agencies”, Employee Relations, 27 (1): 86-102. DOI: https://doi.org/10.1108/01425450510569328

Lucas, R. (1996) “Industrial Relations in Hotels and Catering: neglect and paradox?” British Journal of Industrial Relations, 34(2): 267-286. DOI: https://doi.org/10.1111/j.1467-8543.1996.tb00652.x

Luce, S. (2004) Fighting for a Living Wage, Cornell University Press: Ithaca, NY. DOI: https://doi.org/10.7591/9781501728280

Luce, S. (2005) “The Role of Community Involvement in Implementing LivingWage ordinances”, Industrial Relations, 44, 32-58. DOI: https://doi.org/10.1111/j.0019-8676.2004.00372.x

London Citizes (2006) Living Wage Campaign(www.livingwage.org.uk/campaign.html; accessed 01/09/2006).

McCaulay, I. and Wood, R. (1992) “Hotel and Catering Industry Employee’s Attitudes Towards Trade Unions”¸ Employee Relations, 14(3): 20-28. DOI: https://doi.org/10.1108/01425459210013878

McDowell, L. Batnitzky, A. and Dyer, S. (2007) “Division, Segmentation and Interpellation: the embodied labours of migrant workers in a Greater London hotel”, Economic Geography, 83, 1-25. DOI: https://doi.org/10.1111/j.1944-8287.2007.tb00331.x

May, J, Wills, J, Datta, K, Evans, Y, Herbert, J and McIlwaine, C (2007) ‘Keeping London working: global cities, the British state, andLondon’s new migrant division of labour’, Transactions of the Institute of British Geographers, 37 (2): 151-167. DOI: https://doi.org/10.1111/j.1475-5661.2007.00241.x

Neumark, D. and Adams, S. (2003) “Do Living Wages Reduce UrbanPoverty?” Journal of Human Resources, 38, 490-521. DOI: https://doi.org/10.3368/jhr.XXXVIII.3.490

Nolan, P. (2004) “Shaping the Future: the political economy of work andemployment”, Industrial Relations Journal, 35(5): 378-387. DOI: https://doi.org/10.1111/j.1468-2338.2004.00321.x

ONS (2004) Employment in Tourism-related industries, 1992-2002: AnnualAbstract of Statistics, Office of National Statistics, London(www.statistics.gov.uk; accessed 29/11/2006).

ONS (2005) Annual Survey of Hours and Earnings, Office of National Statistics, London (www.statistics.gov.uk/StatBase/Product.asp?vlnk=13101).

Peck, J. and Theodore, N. (1998) “The Business of Contingent Work: growthand restructuring in Chicago’s temporary employment industry”, Work, Employment and Society, 12, 655-74. DOI: https://doi.org/10.1177/0950017098124004

Peck, J. and Theodore, N. (2001) “Contingent Chicago: restructuring the spaces of temporary labour, International Journal of Urban and RegionalResearch”, 25, 471-96. DOI: https://doi.org/10.1111/1468-2427.00325

Peck, J. Theodore, N. and Ward, K. (2005) “Constructing Markets for Temporary Employment: employment liberalisation and the internationalization of the staffing industry”, Global Networks, 5, 3-26. DOI: https://doi.org/10.1111/j.1471-0374.2005.00105.x

Purcell, J., Purcell, K, and Tailby, S. (2004) “Temporary Work Agencies: here today, gone tomorrow?, British Journal of Industrial Relations, 24(4): 705-725. DOI: https://doi.org/10.1111/j.1467-8543.2004.00337.x

Riley, M. (1985) “Some Social and Historical Perspectives on Unionisation in the UK Hotel Industry”, International Journal of Hospitality Management,4(3): 99-104. DOI: https://doi.org/10.1016/0278-4319(85)90002-7

Radiven, N. and Lucas, R. (1997) “Abolition of Wages Councils and theIntroduction of a National Minimum Wage wWith Particular Reference to British Hotels”, International Journal of Hospitality andManagement, 16(4): 345-359. DOI: https://doi.org/10.1016/S0278-4319(97)00034-0

Sassen S. (1996) “New Employment Regimes in Cities: the impact on immigrant workers”, New Community, 22 (4): 579-594. DOI: https://doi.org/10.1080/1369183X.1996.9976561

Seifert, A. M. and Messing, K. (2006) “Cleaning Up After Globalization: anergonomic analysis of work activity of hotel cleaners”, Antipode, 38(3): 425-666. DOI: https://doi.org/10.1111/j.0066-4812.2006.00595.x

Smith, M. and Carroll, M. (2003) “Branch Report for Hotel and Restaurants in the UK”, in Klein Hesselink, J. (2004) EU Hotel and Restaurant Sector: work and employment conditions, unpublished, European Foundation for the Improvement of Living and Woking Conditions: Dublin.

Smith, P. and Morton, G. (2006)”Nine Years of New Labour: neoliberalismand worker’s rights”, British Journal of Industrial Relations, 44(3): 401-420. DOI: https://doi.org/10.1111/j.1467-8543.2006.00506.x

Standing, G. (1992) “Alternative Routes to Flexibility”, in Storper, M. and Scott, A. (eds) Pathways to Industrialization and Regional Development,Routledge: London.

Stanworth, C. and Druker, J. (2006) “Human Resource Solutions? Dimensions of Employer’s Use of Temporary Agency in Labour in the UK, Personnel Review (35(2):175-190. DOI: https://doi.org/10.1108/00483480610645812

Ward, K., Grimshaw, D., Rubery, J., and Beynon, H. (2001) “Dilemmas in the Management of Temporary Work Agency Staff”, Human ResourceManagement Journal, 11(4):3-21. DOI: https://doi.org/10.1111/j.1748-8583.2001.tb00048.x

Wells, M. (2000) “Unionisation and Immigrant Incorporation in San Francisco Hotels”, Social Problems, 47(2): 241-265. DOI: https://doi.org/10.1525/sp.2000.47.2.03x0290d

Wills, J. (2001) “Community Unionism and Trade Union Renewal in the UK:moving beyond the fragments at last?” Transactions of the Institute ofBritish Geographers, 26 (4): 465-483. DOI: https://doi.org/10.1111/1475-5661.00035

Wills, J. (2004) “Campaigning for low paid workers: the East London Communities Organisation (TELCO) Living Wage Campaign”, in (eds) Brown, W, Healy, G, Heery, E and Taylor, P, The Future of WorkerRepresentation, Oxford: Oxford University Press, 262-82.

Wills, J. (2005) “The Geography of Union Organising in Low-paid ServiceIndustries in the UK: lessons from the T&G's campaign to unionise theDorchester hotel”, London, Antipode, 37(1): 139-159. DOI: https://doi.org/10.1111/j.0066-4812.2005.00477.x

Wood, R. (1992) Working in Hotels and Catering, Routledge: London.

Wright, T. and Pollert, A. (2006) The Experience of Ethnic Minority Workers in the Hotel and Catering Industry: routes to support and advice on workplace problems, Research Paper, Working Lives Research Institute, London Metropolitan University: London

Downloads

Published

— Updated on 2007-03-01

Versions

  • 2007-03-01 (2)
  • (1)

How to Cite

Evans, Y., Wills, J., Datta, K., Herbert, J., McIlwaine, C., & May, J. (2007). ’Subcontracting by Stealth’ in London’s Hotels: Impacts and Implications for Labour Organising. Just Labour, 10. https://doi.org/10.25071/1705-1436.97

Issue

Section

Special Section