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‘Majority’ of furloughed hospitality staff could only be receiving 60% of wages with tronc not counted

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Further concerns have been raised surrounding tronc payments not being included in the government’s Coronavirus Job Retention Scheme, with new research showing that the ‘majority’ of hospitality staff on furlough are only receiving up to 60% of their normal monthly wage.

New figures from Fourth revealed that tronc payments make up on average more than 25% of hospitality workers’ basic pay, with 60% of those questioned receiving tronc payments during 2019.

The data analysing results from over 120,000 workers across 200 companies in the restaurant, bar, hotel and QSR industries, in a variety of roles both back of house and front of house.

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The findings mean that the majority of furloughed hospitality workers are earning significantly less than 80% of their normal earnings.

Because they no longer receive the average addition of 25% Tronc to their monthly pay, they are in fact only receiving 60% of their usual wage.

With the government expected to scale back its level of support for furloughed workers over the coming months, this percentage could fall further.

The data also reveals that on average, Tronc makes up a higher percentage of the basic pay for salaried workers (28%), than those paid on an hourly basis (24%).

Further to this, the data set only includes Tronc payments made digitally, and not cash tips.

Kate Nicholls, CEO, UKHospitality: “The Job Retention Scheme has been a vital lifeline for employees and employers – providing an income while allowing businesses to retain their valued workforce. It is time for an approach that is #Fair4Hospitality employees – with access to their full earnings under furlough and extension of full furlough until their employer is back to full service.”

James England, senior vice president at Fourth, said: “In addition to graphically illustrating what an important component Tronc is for many hospitality workers’ pay, these findings also demonstrate why a tapering off of support could really hurt the finances of hospitality workers as many of those furloughed aren’t receiving 80% but more like 60% of their normal earnings.”

Tags : coronavirusCoronavirus Job Retention SchemeFourthhotelsHRMARKET DATAstaffworkers
Zoe Monk

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