Union plans protest over Sanderson's £2.15 pay rate

The GMB union, which represents staff at London's Sanderson hotel, is planning a series of demonstrations against the hotel's new starting wage of £2.15.

It says waiting and bar staff have been forced to accept the new pay system because they are afraid of losing their jobs.

Martin Smith, organiser for the GMB London region said: "They're very, very unhappy. They're not inclined to complain because they're in fear of their jobs. So instead of putting their heads above the parapet, they've asked us to campaign on their behalf."

The union plans to start its activism next week by parking a skip directly outside the hotel's entrance with a banner reading: "Here's a tip from the GMB. Pay your staff a living wage."

Activists will hand out leaflets criticising the practice of using tips to top up basic pay which is below the minimum wage. The union hopes to gain publicity and support from guests, many of whom are celebrities.

But the hotel, where guests can pay up to £2,000 a night, has defended its new hourly starting rate.

Simon Wright, food and beverage manager, said that staff had had the opportunity to ask questions and now that they understood how the system works he said that the majority of staff had accepted the new pay system.

He claimed that a recent article in The Guardian newspaper criticising the new wages had in fact boosted staff morale. Some were disappointed that the hotel had been singled out for criticism, he said.

Wright said that the new working conditions, which replaced shifts, gave greater flexibility to his employees, many of whom were actors, musicians and models.

In the year to 31 Dec 1999, Ian Schrager Hotels, which operates the Sanderson, made a gross profit of £3.5m on a turnover of £4.7m.