Employment and Industrial Relations in the Hotels and Restaurants
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Traditionally the sector is characterised by many micro and small companies. These are seldom member of an employers’ association. As for the rest of the sector it is significant that the number of large businesses seem to increase on the expense of small family-owned businesses. The organisation density is much higher among large companies and they cover around 70% of all employees in the sector. On the union side hotels and restaurants has traditionally been a sector with low union density, which also should be seen in the light of the significant use of seasonal and part time workers.
1. Key developments and trends in the Hotels and Restaurants: trends, employment and working conditions
1.1 Please provide information on key trends in Hotels and Restaurants
A brief description of any significant shifts within the last four years affecting the Hotels and Restaurants sector, for example:
- The impact of the crisis on the sector
- Main drivers of change
- If there are specific developments affecting the following subsectors in terms of economic activity and employment, please add the information according to the following classification:
- Hotels and other short stay accommodations
- Restaurants, bars and cafes
- Catering and canteens
It is significant that the number of employees has been steadily increasing from 2001 – 2008 with 1% to 2% every year in the sector of hotels and restaurants – while the development of the number of companies stalled in 2008, i.e. the first half year of the economic crisis. As seen in other sectors with a majority of micro companies, it seems that the fewer employees in the companies the larger are the decline in the number of companies seen in relation to 2007. It could be due to mergers between micro and small companies, but it could also mean – as in restaurants, bars and cafés – that many micro companies have closed or gone bankrupt.(Source: Statistics Denmark and Kent Wickstrøm Jensen: Små og mellemstore virksomheder i tal in Cesfo Årsrapport 2010).
In total 20,133 people are employed at hotels, conference centers, resorts, camping sites and hostels in Denmark. In just one year – from 2008 to 2009 – the number of employees fell by 10.3% and thus has experienced a much larger decline in employment than most other professions. Staff reduction is primarily done by not reoccupying the vacant positions, hiring fewer seasonal employees and casual workers, and number of hours has cut for the hourly paid. Companies have largely sought to retain the important key employees. As a consequence, the number of young people (16-29 years) declined by 15.9% from 2008 to 2009. The profession is still characterized by a very high percentage of young people, and roughly half of those employed in the industry are under 30 years of age. The industry has always had a preponderance of female employees, but right now the share is smaller than normal. An important explanation is that companies have reduced the use of seasonal employees and reserve waiters. Women still represent 53.9% of those employed in the industry. (Source: HORESTA: Beskæftigelsen i hotelerhvervet, 2010)
For the first time in 10 years the restaurant, café, bar and canteen industry in 2009 experienced a decrease in the number of employees, which decreased from 70,292 in 2008 to 64,427 in 2009, representing a reduction of 8.3%. The decrease in employment has largely occurred among the younger employees. Restaurant industry employment represented a decrease of 13.1%. The significant decrease among younger employees may be linked with the job which young people typically assumed, as many of the younger staff members work as part-time or seasonal employees. Evidence suggests that particularly this type of employees that the restaurants have chosen to cut down during the crisis in order to retain key employees, because the number of working hours in the industry has not changed significantly compared with the decrease in employment. (Source: HORESTA: Beskæftigelsen i restauranterhvervet, 2010)
1.2. Please provide information on the views of the major social partner organisations (trade unions and employer organisations) on trends and changes in the Hotels and Restaurants sector.
1 July 2011 the Association for the hotel, restaurant and tourism industry in Denmark (HORESTA) formally left the employers’ association within retail and commerce, the Danish Chamber of Commerce (Dansk Erhverv) with the aim to create an independent organisation representing organisations and companies within the ‘experience and adventure economy’, i.e. tourism, hotels and restaurants only. HORESTA wants to collect synergy in a ‘House of Tourism’ with among others the Danish Travel Agency Association, who is also member of Dansk Erhverv. HORESTA has strengthened the employer activities of the organisation which is a mixed association and will also strengthen, and put more focus on, the training and further training activities. With regard to the economy the expectations to 2011 is a moderate increase in turn-over after being hit hard by the crisis.
The social partner on the employees’ side, the United Federation of Danish Workers (3F) has chosen not to answer the question.
1.3 Please provide the absolute number and shares of employment for the following indicators for the NACE code I (Accommodation and food service activities) in 2010 (if not available the most recent year with data available)
Most recent data are from 2009
- Share of employment of the HORECA sector as compared to the national economy
Total employment in HORECA is 84,560 persons. Total employment in national economy is 2,831,120 (i.e. a share of 3.0%).
- Total employment in the sector and percentage of employees, employers, self employed and family workers
Number of self-employed and spouses: 9,285 (11.0% of total employment in the sector). Self-employed without spouses: 8,890 (10.5%) Statistics Denmark does not operate with the category ‘employer’. (‘Top executives’ are 1,220 – but they normally count as employees. The problem in this case is that big hotels and restaurant chains are represented by top managers rather than owners).
Number of employees: 75,275 (89% of total employment in the sector)
- Number and share of temporary employees
No data available
- Number and share of workers in part time employment
Latest data: 1.1.2008: 41,302 working part-time, i.e. 44.6% of the employment in HORECA
- Number and share of female workers in employment
45,612 (53.9%)
- Number and share of foreign workers in employment
Immigrants and descendants from western and non-western countries: 6,593 (7.8%)
1.4 With regard to the following employment and working conditions, could you provide relevant information on the main issues and developments since 2006
The aim is to provide a general picture of the key issues with regard employment and working conditions in the Hotels and Restaurants sector in your country
- Undeclared work
According to a recent report on undeclared work in Denmark, Danskerne og det sorte arbejde, publ. 2010 by Rockwool Fondens Forskningsenhed, (EN: ’The Danes and Undeclared Work’ published 2010 by The Rockwool Fund’s Research Unit – English Summery
Horeca is the only sector where it is equally likely that a man and a woman are ‘moonlighting’. For both men and women approximately 30% of the interviewed had performed undeclared work during the last 12 months. This is the highest percentage concerning women regarding sector, while men are mainly moonlighting in the construction sector. According to the report, which is published on a regular basis, the level of undeclared work has not changed much since the middle of the 1990ies.
Source: http://rff.dk/files/RFF-site/Publikations%20upload/Newsletters/Dansk/nyedsbrev%20juni%202010.PDF
- Youth employment and conditions for young people in the sector
| Years of age | - 15 | 16 - 19 | 20 - 24 | 25 - 29 | Total 16 - 29 |
|---|---|---|---|---|---|
| Number of employees | |||||
| 2006 | 3 039 | 16 612 | 17 220 | 11 062 | 44 894 |
| 2007 | 3 510 | 18 624 | 18 017 | 10 878 | 47 519 |
| 2008 | 3 800 | 20 021 | 18 507 | 10 536 | 49 064 |
| 2009 | 4 862 | 17 750 | 15 665 | 8 927 | 42 342 |
Source: Statistics Denmark, Statistikbanken, Beskæftigede personer RAS9.
As seen in table 1 youth employment in general decreased significantly in the year of crisis 2009. However, the increase in the number of young people up to 15 years of age in 2009 suggests that some job functions have moved to this group from the group of, possibly, 16 – 19 years of age.
- Seasonal work and working hours
No data available
- Qualifications and Skills development
According to a report (Analysis of the present and future demands to the competencies of the employees and need for continuing vocational training.) from 2007 ordered by the committee for further training within the hotel and restaurant industry the numbers of graduates to the industry is growing among gastronomes (chefs, cooks, sandwich makers, etc.) (The committee for further training in the kitchen, hotel, restaurant, confectioner and meat sectors (no abbreviation) in Danish: Efteruddannelsesudvalget for Køkken, Hotel, Restaurant, Konditor og Kødbranchen) while the waiters have experienced a small decline in number of graduates and receptionists are unchanged. The report from 2007 points at the need for more and better focused vocational training; while it seems that further training courses meet the demands in relation to competence and innovation. However, while the industry is growing steadily (also world wide) the intake of new trainees is all in all unchanged during the last decade. It is recommended to make the training more attractive.
Name of the committee: The committee for further training in the kitchen, hotel, restaurant, confectioner and meat sectors (no abbreviation). In Danish: Efteruddannelsesudvalget for Køkken, Hotel, Restaurant, Konditor og Kødbranchen
Report: Analyse af hotel- og restaurantbranchens nuværende og fremtidige krav til medarbejderkompetencer og deraf afledte behov for efteruddannelse af AMU-målgruppen
(EN: Analysis of the present and future demands to the competencies of the employees and need for continuing vocational training)
The social partners sitting on the industrial committee for vocational training in hotels and restaurants have introduced more innovative skills as part of the training such as relevant IT knowledge for all levels of employees, ecology, food and health, chef and manager at the same time, and not the least social skills, language and focus on domain specific and front-line oriented activities because the consumers/guests/tourists of today see a visit to a restaurant or a hotel as an event rather than just a visit. This in particular imposes requirements to an up-to-date vocational training in theory and practice within the industry of hotels and restaurants.
The stagnant intake of trainees is partly due to the presence of many students in front-line occupations such as waiters and receptionists. The students typically work as part-time, temporary and seasonal workers and with that they contribute to a numerical flexibility that is needed by the employers in the high season.
- Health and safety
Depending of job function the industry of hotels and restaurants suffers from a great variety of health and safety problems. This could be ergonomic or psychosocial problems stemming from long and changing working hours, problems connected to smoke and alcohol, or problems related to heavy lifts, walking several kilometres a day and/or monotonous jobs. The incidents of cancer related to passive smoking have been fewer after the abolishing by law of smoking in public places, hereunder hotels and restaurants.
http://forsiden.3f.dk/article/20060921/LONARB11/60921020?profile=2473
- Others
| Number of employees | 0 | 1 - 9 | 10 - 19 | 20 - 49 | 50 - 99 | 100+ |
| Number of companies | 5 927 | 6 646 | 564 | 259 | 60 | 38 |
Source: Statistics Denmark. Generel Firmastatistik
As seen in table 2 the sector in Denmark is dominated by micro companies.
2. Industrial relations structures in the sector
2.1 Please provide details on the structure of trade union representation in the hotels and restaurants sector.
- The name of each relevant trade union active at national level in the sector and their overall number of members within the sector.
United Federation of Danish Workers (Fagligt Fælles Forbund, 3F) is the only trade union in the sector. However, 3F has no data regarding membership in the sector
- Total number of members of trade unions in the sector, the membership share (%) among the employees in the sector (e.g. 20% of employees in the sectors are members of trade unions), which occupations and which employees – according to company size?? – are typically covered.
No data available
2.2 Please provide information on the structure of employer organisations in the hotels and restaurants sector.
- The name of each relevant employer organisation active in the sector at national level, overall number of members in terms of companies and number of employees working in member companies.
- The total number of companies members of employers organisations in the sector (if available), the membership share (%) among all the companies, excluded companies with no employees and the self employed (e.g. 30% of companies in the sector are members of employers organisations) and breakdown by company size: micro companies 1-9 employees, small size companies 10-49 employees, medium size companies 50-249 and more than 250 employees, excluded companies with no employees and the self employed (e.g. 20% of companies between 1 and 9 employees are members of employers organisations in the country)
HORESTA is the national trade and employer association for the hotel, restaurant and tourism industry in Denmark with 2,100 members. That is 15.6% of all companies in the sector, including companies with no employees. Deducting these companies (5,927) because they by nature are not member of an employers’ organisation the calculation results in 24.7%.
Furthermore the members employ around 70% of the employees working in the hotel and restaurants (Source: HORESTA.dk).
There is no exact information about number of members broken down by company size. However, the trend is that small companies for instance pizzerias, cafés and bars are not members of HORESTA but have a trade association of their own (DRC), which on the other hand do not engage in collective bargaining. Besides, according to HORESTA, there is a tendency that the companies (or units) are getting bigger. Among the members of HORESTA more companies are part of chains and managed by a daily executive manager. Traditionally family owned businesses are fewer.
- Are self-employed in the sector organised? If so, please develop on the key aspects (nature, coverage, role in collective bargaining).
For an employer to be member of an employer organisation requires that he or she has employees in the enterprise. Thus, a self-employed without employees cannot be member of an employer organisation. Self-employed with employees can be member of an employer organisation because the organisation can represent the employer in collective bargaining with the union of the employees. In this case there is no distinction in Denmark in the definition between ‘self-employed with employees’ and ‘employer’. (example: family owned companies - as LEGO).
2.3 Please provide information on the structure of collective bargaining in the hotels and restaurants sector.
- At what level are collective agreements in the hotels and restaurants sector concluded (company and/or sectoral level)?
Sectoral level followed by company level
- At national level, which trade unions and employers organisations are involved in the negotiations of collective agreements?
3F and HORESTA
- Estimate the coverage rate of collective bargaining in terms of a) companies and b) employees.
HORESTA covers 24.7% of companies with employees in the sector. It is not possible to estimate the number of single-employers with a company agreement in the sector. That is, at least 25% of the companies are covered by a collective agreement.
In terms of employees the percentage is between 70-80%. HORESTAs members cover 70% of the employees in the sector and since all employees are covered whether member of a union or not, the agreement coverage is at least 70%. Company agreements may cover another 10%. It is difficult to estimate more precise.
3F has no estimate on the percentage of the coverage rate of collective bargaining.
- Is there a practice of extending sectoral agreements to employers who are not affiliated to the signatory employer associations?
No
2.4 Is there a forum for social dialogue dealing with matters of the Hotels and Restaurants sector? (Bi-partite and/or tripartite social dialogue at national or regional level?). What are the aims of these bodies? Specify which unions and/or employers’ organisations are involved.
3F and HORESTA are informed and consulted about matters concerning the sector. They are also members of statutory bi-partite bodies within the sector concerning vocational training and further training (vocational training committees, faglige udvalg) and health and safety (occupational health and safety councils, branchearbejdsmiljøråd, BAR) in the sector.
2.5 Summarise about the incidence of industrial action in the past four years within the hotels and restaurants sector (increase or decrease, nature of industrial action, the main reasons for conflict and main outcomes)
| 2006 | 2007 | 2008 | 2009 | |
|---|---|---|---|---|
| Number of work stoppages | 7 | 4 | 1 | 3 |
| Number of workers involved | 979 | 479 | 21 | 206 |
| Number of working days lost | 600 | 0 | 0 | 100 |
Source: Statistics Denmark. Statistikbanken.dk. Arbejdsstandsninger
As seen in table 3, hotels and restaurants are not the most strikebound sector in Denmark. Data on the main reasons for conflict are not available.
3. Contribution of collective bargaining, social dialogue and social partners to addressing the challenges facing the Hotels and restaurants sector
3.1 Please indicate whether collective bargaining / social dialogue at national sectoral level, has contributed to address the challenges facing the hotels and restaurant sector since 2006. Has collective bargaining / social dialogue introduced specific clauses/instruments/initiatives to address these challenges? Please illustrate the most important of such clauses/instruments/initiatives and include a brief assessment of their impact. If there are relevant clauses/instruments/initiatives at regional or company level (bigger companies) covering a large share of employees, could you please add the same information for those agreements?
3.1. 1 Include clauses/instruments/initiatives for the following issues:
- Agreements on working time and minimum wages
Agreements on working time are laid down in the sectoral collective agreement in the area, the Main Agreement between Horesta and 3F, which covers the whole hotel and restaurant sector. There is no official, fixed minimum wage neither based in collective agreements nor in legislation in Denmark. Wages are mainly negotiated at company level.
- Improvement of gender equality (including improvement of work-life balance arrangements);
No particular initiatives concerning gender equality in hotels and restaurants in collective bargaining. The sectoral collective agreement does not deal with improvement of gender equality.
- Improvement of access to career development/lifelong learning/qualifications in the sector.
The collective agreement encourages to further training in the sector. Furthermore, the social partners are highly involved in vocational training and continuing vocational training in the sector at bipartite and tripartite level. This has among other things resulted in new educations and occupations in the sector, for instance service economists, focus on the experience and adventure segment and a new bachelor degree within hotel management
The social partners participate in bipartite committees settled by legislation concerning vocational training. They form and decide the relevant vocational training in all sectors. The relevant vocational training and vocational committees in Horace are: The vocational training committee concerning training as gastronomes<http://www.khru.dk/index.php?id=8>; the vocational training committee concerning training as receptionist<http://www.khru.dk/index.php?id=53>; and the vocational training committee concerning training as a waiter<http://www.khru.dk/index.php?id=52>. Furthermore the social partners in Horeca have established a secretariat<http://www.khru.dk/index.php?id=100> (Køkken-, Hotel- og Restaurant fagenes Uddannelsessekretariat - The Kitchen, Hotel and Restaurant Education Secretariat) to administer vocational training, and continuing vocational training within the different
- Addressing risk factors at work, including health risks, ergonomics, violence and harassment;
Latest official initiative is a report from 2002 ordered by Horesta and the union RBF, which is now amalgamated with 3F. The occupational health and safety council for the Service sector (BAR Service og tjenesteydelser) of which 3F and Horesta are members has issued different pamphlets about health risks and ergonomics among other things in sector, and a special pamphlet concerning the health and safety rules concerning young people – herunder in particular those under 15 years of age that has part time work in the sector after school.
- Measures dealing with migration (including any agreements on ethical recruitment; measures for the better integration of migrant workers, etc.);
None specifically for this sector
- Measures with the aim to tackle undeclared work in the sector
The fairplay-campaign starting 2004 is a campaign with the aim to prevent and reveal social fraud and tax fiddle, of which undeclared work is a part. Razzias in certain sectors are frequent – the most visited are construction sites and restaurants, pizzerias and cafés (and agriculture). Undeclared work is known to be frequent in hotels and restaurants, but for some reason hotels are not visited to the same degree as restaurants. The fairplay campaign is cooperation between the National Directorate of Labour, the Police, the Regional food control authority, the Municipalities' social services department, the Danish Immigration Service and the Tax authorise. The trade union movement has its own 'undeclared work patrol', in some cases supported by the employers’ organisations that see undeclared work (and social dumping) as a threat to their members. If measured by how many people are caught, the campaign is overall successful.
Source: http://www.skm.dk/presse/kampagner/fairplay/fairplay-kampagnen.html
- Improvement of the working conditions of seasonal workers
No data available
- Promotion of employment for young workers
3F and Horesta are promoting different occupations through internet advertising. It is mostly the occupations within the gastronomic field that are promoted. However, the promotion campaigns are mostly directed at bringing more young people into training in occupations of the sector.
- Other measures with regard employment and working conditions (if relevant)
No
3.1.2 Illustrate the most important of such clauses/instruments/initiatives and include a brief assessment of their impact
Those mentioned are all important initiatives/instruments/clauses. If one area should be emphasised it could the focus on increases qualifications and skills in the sector. Education of core employees is a good way to anticipate restructurings and closures and will make the industry more attractive to young people.
The social partners participate in bipartite committees settled by legislation concerning vocational training. They form and decide the relevant vocational training in all sectors. The relevant vocational training and vocational committees in Horeca are: The vocational training committee concerning training as gastronomes<http://www.khru.dk/index.php?id=8>; the vocational training committee concerning training as receptionist<http://www.khru.dk/index.php?id=53>; and the vocational training committee concerning training as a waiter<http://www.khru.dk/index.php?id=52>. Furthermore the social partners in Horeca have established a secretariat<http://www.khru.dk/index.php?id=100> (Køkken-, Hotel- og Restaurant fagenes Uddannelsessekretariat - The Kitchen, Hotel and Restaurant Education Secretatiat) to administer vocational training, and continuing vocational training within the different
3.2 Please indicate whether there are specific unions’ initiatives to address the challenges facing the hotels and restaurant sector since 2006. Please illustrate the most important of these initiatives.
Basically 3F offers support via the home page (www.3f.dk) and in the local clubs covering the bullet points below. As seen in 3.1.1. some of the initiatives are taken in cooperation with the employers.
3.2.1 Include initiatives for the following issues:
- Improvement of gender equality (including improvement of work-life balance arrangements);
This is not high on the agenda regarding hotels and restaurants
- Improvement of access to career development/lifelong learning/qualifications in the sector.
3F gives specific information on the home page about vocational training, competence funds and possibilities for further training and changing career within hotels and restaurants
- Addressing risk factors at work, including health risks, ergonomics, violence and harassment;
3F takes part in tripartite cooperation in this field
- Measures dealing with migration (including ethical recruitment; measures for the better integration of migrant workers, etc.);
3F works actively for better working conditions for migrant workers. After the EU-enlargement 2004 this work is basically directed towards workers from Poland and the Baltic countries that come to Denmark to find jobs. In several known cases brought forward by 3F the Eastern European workers are underpaid and live under bad conditions. However, these efforts are not isolated to hotels and restaurants alone.
- Measures with the aim to tackle undeclared work in the sector
3F has their own ‘patrol’ that is trying through various measures to detect undeclared/illegal work. However, these efforts are taken place in more sectors; hotels and restaurants is not the only one.
- Improvement of the working conditions of seasonal workers
No specific data
- Promotion of employment for young workers
3F actively promote employment possibilities (in particular regarding training in the sector). Alone and in bipartite/tripartite cooperation.
- Other measures with regard employment and working conditions (if relevant)
3.2.2 Illustrate the most important of such initiatives and include a brief assessment of their impact
3F’s information campaign about the career potential in the industry for young people is important, as well as 3F’s activities to detect illegal work or work under the limits of Danish collective agreement.
3.3 Please indicate whether there are specific employer organisations’ initiatives to address the challenges facing the hotels and restaurant sector since 2006. Please illustrate the most important of these initiatives.
HORESTA takes part in many of the initiatives mentioned in the bullet points below, but seldom alone or by own initiative alone. There is a great tradition in Denmark for bipartite and tripartite cooperation. Seen in this perspective it does not make real sense to answer the bullet points below. The answer is given in 3.1.1.
3.3.1 Include initiatives for the following issues:
- Improvement of gender equality (including improvement of work-life balance arrangements);
- Improvement of access to career development/lifelong learning/qualifications in the sector.
- Addressing risk factors at work, including health risks, ergonomics, violence and harassment;
- Measures dealing with migration (including ethical recruitment; measures for the better integration of migrant workers, etc.);
- Measures with the aim to tackle undeclared work in the sector
- Improvement of the working conditions of seasonal workers
- Promotion of employment for young workers
- Other measures with regard employment and working conditions (if relevant)
3.3.2 Illustrate the most important of such initiatives and include a brief assessment of their impact
4. Commentary
The hotels and restaurant sector was badly hit by the economic crisis. Many small or new businesses closed. On the other hand there seems to be serious initiatives among the social partners and in the industry of course, to improve working conditions and not the least educational levels. The number of core employees measured in relation to seasonal workers is relatively high, according to the organisations, which makes the sector more stable. During the crisis it was mainly the number of flexible, seasonal workers that was cut down.
Carsten Jørgensen, FAOS, University of Copenhagen
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