IHG defends criticism over ‘backtracking’ on London living wage
InterContinental Hotels Group (IHG) has defended criticism by the Unite union, which has accused it of ‘backtracking’ on plans to implement the voluntary London Living Wage.
Campaigners demonstrated on Friday outside the annual general meeting of IHG as Unite accused the hotel group of ‘cheating its lowest paid workers out of over a year’s wages because of its broken living wage pledge’.
Unite says that, in 2012, IHG pledged to phase in the higher living wage rate to secure the contract as the official hotel provider for the London Olympics.
IHG has now said it won’t be ‘moving forward’ with implementing the London Living Wage.
Unite claims this decision has cost a full-time room attendant and others paid the national living wage £17,565 over the last six years.
Unite regional officer Dave Turnbull said: "Last year we protested at this same annual meeting over IHG’s broken promises to allow Unite access to its London properties and the living wage pledge. This led to a meeting with senior management and a promise to reconsider their position and to reconvene at a later date to agree a way forward. This never happened.
"A year later, there is still no union access agreement and IHG’s failure to keep its London living wage pledge has now cost its lowest paid workers a staggering £17,565 since 2012 – that’s more than a year’s wages for a worker on the national living wage.
"It is simply unacceptable that this hugely profitable company can blame the introduction of the national living wage and pension auto-enrolment to cheat low paid workers out of a year’s wages when its CEO is paid a jaw dropping £2.1m since starting in July 2017 – 130 times more than its lowest paid worker.
"IHG’s back-tracking on its promise is inexcusable given its latest quarterly report showing better than expected profits. According to IHG’s own figures, operating profits are up eight per cent to £544m.
"Unite is urging IHG to make good on its promises and live up to its commitments. It can start by signing up to a union access agreement to allow Unite into its hotels to talk about the benefits of trade union membership with staff, which is fully in line with the UN Global Compact guidelines."
An IHG spokesperson said: "IHG is focused on supporting London, and the rest of the UK, in being a great place to live and work. Over the past five years there have been several valuable changes to UK pay and benefits legislation, including the introduction of a National Living Wage, pension auto-enrolment, higher national insurance and the apprenticeship levy.
We won’t be moving forward with gaining the voluntary London Living Wage accreditation, but remain focused on hospitality as a great career, as well as the associated pay and benefits, to ensure we remain an employer of choice."
Lisa
Lisa joined Travel Weekly nearly 25 years ago as technology reporter and then sailed around the world for a couple of years as cruise correspondent, before becoming deputy editor. Now freelance, Lisa writes for various print and web publications, edits Corporate Traveller’s client magazine, Gateway, and works on the acclaimed Remembering Wildlife series of photography books, which raise awareness of nature’s most at-risk species and helps to fund their protection.
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