BOSSES at a Glasgow bar are refusing to pay staff the real living wage - saying they have opted instead for a more ‘sustainable model’ that will increase the cash in employees' pockets.
Management at trendy Brel in Ashton Lane have reportedly cut rates of pay as the business shifts to the National Minimum Wage, claiming the move was needed to safeguard its future.
But union bosses have today hit back at the decision, branding it ‘morally reprehensible’ - and urged bosses to reverse the plans which has outraged workers.
The Glasgow Times understands a last-ditch attempt to resolve the dispute is taking place this afternoon held between Unite Hospitality and the company’s head of finance.
The popular bar bistro is owned by Glasgow entrepreneur Oli Norman, who is also the founder of exclusive deals and events company itison.
Currently, the national minimum wage in the UK – outside of London – is £10.18 for those under 23 and £10.42 for those over 23.
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The real living wage is £10.90 for everyone over the age of 18. It is classed as a different measure of pay and not a legal obligation.
Bryan Simpson, the union’s lead organiser told the Times that staff had been given ‘next to no notice’ about the changes to their income.
He said: “For such a profitable company to decide so suddenly to revoke its commitment to the real living wage is not just morally reprehensible, it may present a breach of contract and a failure to consult with staff.
“We will be meeting with Itison’s head of finance for a last-ditch attempt to resolve this dispute. We hope that he makes the right decision to invest in the workers who actually make the profits for his company by overturning this decision and paying them the wages they need to live.”
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Brel bosses however have hit back, saying that the decision to change how workers are paid will see their take-home earnings increase.
A spokesperson for Brel said: “Factually incorrect information has been circulated online including wildly inflated profit figures and suggestions of pay cuts. We want to clarify with the facts.
“The full front of house team at Brel, regardless of age, were paid an average of £13.14 per hour between the period of April – June 2023, following a change in pay structure.
“60% of our Brel team are under the age of 23 – and we opt to pay the same rate of pay, even though government guidelines would allow us to pay significantly less.
“These figures represent a substantial increase on take-home at the same time last year and are higher than the current rate of Real Living Wage at £10.90.
“As part of the change in pay structure, amidst well-documented cost increases across the supply chain, we elected to move away from the voluntary Real Living Wage in place of a more sustainable model.
“Extensive planning and forecasting was undertaken before implementing the changes to secure the long-term future of the business, and jobs of our incredible team.
“As part of this, we introduced a service charge, 100% of which is shared between the team. This has resulted in a substantial increase in monthly take-home alongside an industry-leading benefits package.
“As this is an ongoing grievance and we are committed to a fair appeal process, it would be inappropriate to comment further at this time.”
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