Catering firms must tackle low pay

09 February 2000
Catering firms must tackle low pay

Contract catering companies are "living on another planet" when it comes to paying their staff decent wages, according to Linda Halliday, chief executive of Halliday Catering Services.

Speaking at the launch of the British Hospitality Association's Contract Catering Survey 2000 at Hotelympia today, Halliday called for the major companies to agree to raise wages above the mandatory £3.60-an-hour minimum, in order to attract more staff into contract catering.

"I suspect that few of our clients pay their staff £3.60 an hour, we need to convince the them that if they want good staff, they need to pay for it. It's up to all of us, we need to do it," she said.

Robyn Jones, managing director of Charlton House Catering Services, said that despite the introduction of the minimum wage, pay was in fact being driven down. Caterers needed to increase wages to attract the desired calibre of staff, she added.

While agreeing that the current minimum wage of £3.60 an hour was too low, other contract caterers argued that to increase it would threaten their competitiveness.

Tim West, chief executive of Elior UK, said : "I think it is dreadful that £3.60 an hour can be considered suitable to survive on. I would be happy to put it up to £5, but it is about market forces."

William McCall, chief executive of Aramark, said: "I would like to pay more money. It's a competitive thing. It's a challenge but not a straight-forward one."

After the debate, Halliday said: "I think the contract catering companies are living on another planet."

The Hotelympia exhibition is being held this week at London's Earls Court.

by Christina Golding

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