Abstract
Rates of pay in the hotel and catering industry are a contentious issue. The industry is traditionally labour intensive and labour costs form a significant proportion of the total running costs of an organisation. On the other hand, the industry has a reputation for low pay, and evidence suggests that pay in the industry consistently falls behind many other industries. Information about pay in the industry is however limited. Existing sources do not provide detailed data on the rates of pay for a range of employees in the hotel and catering industry. The aim of this research therefore, is to develop a comprehensive study of pay in the industry for particular grades of staff, and also to examine the factors that influence pay in the industry. A survey was conducted throughout Great Britain into rates of pay in the hotel sector, the restaurant sector, the industrial catering sector and the contract catering sector. Rates were found to be generally higher in the industrial catering sector, while the hotel and restaurant sectors tended to have very similar rates of pay. The traditionally female occupations in the industry, such as the room maid and the housekeeper are shown to have some of the lowest rates of pay, and some average rates of pay were below the legal minimum laid down by the Wages Council, The examination of determinants of pay in the industry demonstrates that pay for the unskilled grades of staff is influenced by factors such as the regional and locational situation of the hotel restaurant or unit. As there are variations of demand for labour and alternative job opportunities in different regions and locations around Great Britain, the average rate of pay for unskilled workers fluctuates. The pay of the skilled grades of staff was affected to a greater extent by factors such as the size or the price level of a unit. These factors are mainly indicative of the style of the operation and perhaps the level of skill demanded.