1st Aug 2008 - 00:00
Abstract
The Federation of Small Businesses (FSB) is backing the Government's announcement that restaurants and bars will no longer be able to pay below the minimum wage and make up the difference using tips.
A huge 99% of FSB members do not use tips to subsidise wages and 85% said they are in favour of legislation changing.
Members believe it will have a positive impact on their business.
John Wright, FSB National Chairman, commented on the announcement made: "Small restaurants want to do the best by their staff. They pay their staff a decent hourly rate. Tips are then an added extra."
Wright goes on to explain larger businesses motifs: "Big businesses have been using this loophole to keep costs down. This is abusing customer's trust who gives tips in good faith. It creates an unfair playing field and means small companies, who pay their staff a decent hourly rate and let them keep tips on top, simply cannot compete."
Weblink:
www.fsb.org.uk