No. 302, Oct. 28 - Nov. 3, 2004

SECCIÓN EN ESPAÑOL

LABOR



To read an article, click on the headline.

Massive victory for restaurant waiters

Are you (genetically) up to the job?

German industry chiefs moving to bar unions from boardrooms

 





Massive victory for restaurant waiters

By Helen Bamford

Oct. 23 — Restaurants throughout South Africa could be forced to improve the way they treat waiters and bar staff, following a Labor Court ruling in Cape Town.

For decades, waiters and bar staff have had to rely on tipping by customers for most if not all of their income and have worked under extremely uncertain conditions with little job security and barely any recourse to the law. But this could be set to change.

In a precedent-setting case, the Labor Court has ruled that waiters should be seen as permanent members of staff rather than “independent contractors” with no rights of employment.

The case involved two waiters at one of Cape Town’s former top restaurants, Vilamoura in Camps Bay which has since closed. They took the restaurant to the Commission for Conciliation Mediation and Arbitration (CCMA) after being dismissed without reason or procedure. The CCMA found in the waiters’ favor and granted them an award of $13, 400 each. When the restaurant appealed, the Labor Court upheld the CCMA ruling that the waiters be seen as permanent members of staff.

Sean de Waal, a former waiter with a law degree who assisted the two, said that the fact that the CCMA found that they were permanent employees of the restaurant could have far-reaching implications for the tens of thousands of waiters working in South Africa.

He said that up to now the law had ignored the industry, which was not regulated at all. This in spite of the fact that more and more people were taking up waitering as a full-time career.

“Waiters are often told: ‘If you don’t like it, there’s the door’ and there is no union representing their rights.”

Vilamoura closed at the end of May and was later ordered by the Cape High Court to vacate its Camps Bay premises following an application from its former landlord, Momentum Capital Asset Trust company, Xtraprops 66 (Pty) Ltd.

De Waal said waiters and bar staff were still owed more than $5,000 in gratuities by Vilamoura while all staff, including managers, were still owed salaries and retrenchment payouts.

He said auditors Deloitte and Touche in Johannesburg were handling the matter and were awaiting a scheme of arrangement to be drawn up by attorneys, but it had been dragging on for five months.

“Staff, especially kitchen staff who were paid only $100 to $130 a month and are now out of a job, are very unhappy with the slow progress.”

He said that Vilamoura, like most other restaurants, had deducted a percentage from waiters’ gratuities for bar staff wages and taken off money for “breakages,” in clear contravention of the Basic Conditions of Employment Act.

The gratuities went into Vilamoura’s bank account and were supposed to be paid out weekly but in the run-up to the closure, the money stopped being paid.

De Waal said that at Vilamoura waiters had been “paid” a commission on their sales of 2.5 percent minus VAT, effective to about 1.75 percent.

“Gratuities paid by customers on credit cards had 10 percent deducted for bar staff and between three percent and five percent taken for bank credit card charges. They also had to pay $2.50 every shift for ‘breakages’ regardless of whether they broke anything and if they did break anything they were again charged, not even at cost.”

In addition to this, waiters were required to buy their own uniforms which were changed at least once a year at a cost of around $50 per person.

A waitress in a prestigious CBD restaurant said the system of deductions was fairly standard in most restaurants in Cape Town.

She preferred not to be named for fear of being victimized at work but said she hoped the ruling would mean that more waiters stood up for their rights.

“It must be the only industry where business owners not only don’t have to pay their staff but where their waiters land up paying other staff members like the kitchen and bar staff.”

She said that even if you did not receive a tip, which happened with a lot of foreigners who come from countries where waiters were paid salaries, staff still had to pay their percentages.

De Waal said that traditionally waitering had been seen a part-time job, done by mainly white students who never regarded it as a long-term career.

“But more and more people are starting to make it a career, especially in Cape Town which is so tourist friendly.”

He said to have it regulated could only be to the benefit of both restaurant owners and their staff.

However, Fran Herschell, a human resources manager for the Ambassador Group, said the ruling might not necessarily set a precedent because waiters would still be regarded as permanent part-time employees as opposed to permanent full-time.

“It would mean they would be entitled to certain rights like being paid a salary and sick leave but not necessarily to benefits that full-time permanent employees enjoy such as medical aid and pension.”

But Neil Markovitz, the chairman of the Federated Hospitality Association (Fedhasa) in the Western Cape, said that the industry needed to start providing the correct platform to enable people to become full-time professional waiters.

“In doing so we will then see the benefits coming through and we’ll also be able to start achieving a more consistent level of service.”

Markovitz said waitering had always been regarded as very transient.

“But this has to change. The industry needs to start giving it a bit more respect and regarding it as a full-time profession.”

A report in the Sunday Times last month said waiters and barkeepers at certain upmarket Johannesburg restaurants take home more pay each month than some civil servants.

Source: Independent online (South Africa)

Are you (genetically) up to the job?

By Andreas Tzortzis

Oct. 25 — In a future where a person’s chance at getting sick can be read from their genes, German politicians are discussing how much of that information a potential employer has a right to know.

Advocates say the bill, which is still in discussion, clearly regulates how far employers are allowed to go in determining how genetically fit someone is for a job. In jobs such as construction or public transportation, the law would allow for genetic testing for symptoms of color blindness among other things, according to a report in the newsmagazine Der Spiegel.

“It sets the conditions for the type of tests that can be conducted,” Heinz Putzhammer, a representative of the Federation of German Trade Unions who worked on an early draft of the bill, told Deutsche Welle. “I think we’re on the right track because the limiting of genetic tests is in any case necessary in order to protect the person or the private sphere.”

But some fear that track could nevertheless lead to genetic discrimination. Testing for symptoms of a disease is just a few short steps away from tests that would help employers determine whether to hire someone based on their chance of developing a genetic disease, says Sue Mayer, director of the UK organization GeneWatch.

“I think you have to put it together,” Mayer told Deutsche Welle. “I can’t understand why you would want to do a genetic test for something symptomatic. It would raise the question ‘is this leading the way to something?’”

In addition, scientists say the tests currently on the market to determine common genetic diseases, such as diabetes or hypertension, are unreliable and probably never will be completely accurate. The chance of developing a sickness, such as heart disease, has a little to do with the genes a person has inherited and a lot to do with outside factors, such as whether the person smokes or is overweight.

“The main point with genetic tests is their interpretation. For most of the genetic tests it’s hard to interpret results,” Christian Kubisch, a geneticist at the University of Bonn, told Deutsche Welle. “It’s nearly ridiculous for a company to say we will test you for these diseases ... these kinds of tests are not good at the moment and probably never will be.”

Many countries have taken the step of outlawing access to genetic tests for employers and insurers outright. Beginning with France and Norway in 1994, Australia, Denmark, the Netherlands and Austria have passed laws that either severely limit or outright forbid the use of a person’s genetic information for anything other than medical or scientific purposes.

German opposition politicians said they want a similar law. Parliamentarian Hubert Hüppe, the deputy chair of the Ethics and Law in Modern Medicine commission in the German Bundestag, said that the results of genetic tests, no matter what type, belong in no one’s hands but the person tested.

“I’m in favor of a strict ban,” Hüppe, a member of the conservative Christian Democratic Union party, said in a Deutsche Welle interview. “I’m against any other party being able to use that information.”

The European Union weighed in on the discussion in the summer of 2003. In a 17-page opinion, the policy-initiating European Commission said a medical examination should only be conducted after an employer has decided on a job candidate.

Whether a person is fit for the job “can be fulfilled through medical examination but without performing genetic screening,” wrote the 12-member European Group on Ethics in Science and New Technologies. “Thus, employers should not in general perform genetic screening nor ask employees to undergo tests.”

Source: Deutsche Welle

German industry chiefs moving to bar unions from boardrooms

By David Gow

Brussels, Belgium, Oct. 25 — About 50 leading German business executives will this week draw up plans for radical changes to the system of co-determination which gives workers and unions seats in boardrooms. For decades the system has been seen as a boon for Europe’s biggest economy but is now derided by Michael Rogowski, president of the Confederation of German Industry, as “an error of history.”

Mitbestimmung (co-determination) is called a baneful influence by its critics, preventing the modernization of a floundering economy, discouraging foreign investors, cementing a rigid labor market and forcing a flight of capital.

But the system, introduced in the British zone of occupation after the war before going nationwide in 1976, has found staunch defenders in Chancellor Gerhard Schröder and Jürgen Schrempp, DaimlerChrysler chief executive, as well as the unions.

Schröder said last week he had always supported co-determination and that would remain the case. “It has strengthened, not weakened, Germany,” he said, echoing the words of his economics minister, Wolfgang Clement.

Schrempp told Stern magazine he had “very good experiences, all things considered” with the system, dealing over the past 20 years with very “competent” labor representatives who were closely bound up with the firm and its success. “In our case it works extraordinarily well.” Privately, British executives serving on German boards disagree.

The British originally imposed co-determination in the coal and steel industries, the industrial muscle behind Hitler’s military power, in an effort to prevent the rebirth of Nazi-style aggression. Giving workers equal places in the board room with capital would act as a brake on over-ambitious expansion.

The nationwide system imposed by Willy Brandt’s Social Democrat government gave workers and union representatives up to 10 seats on 20-strong supervisory boards which are designed to oversee the executive board in the development of company policy and strategy — including investment, rationalization, and closures. The chairman, normally representing investors, has the casting vote in the event of a deadlock.

Co-determination, its proponents say, has enabled German companies to manage change in an exemplary fashion through consensus. But critics argue that companies such as Opel, the carmaker shedding 10,000 jobs, and Karstadt, the retailer axing 5,500 posts, have been plunged into financial crisis because the supervisory board postponed radical surgery or enjoyed so cozy a relationship with the executive board that nothing ever happened.

Now Rogowski and officials in the German Federation of Employers in effect want to hand all decision-making powers to the executive board. Under the revised system being drawn up by their joint working group, all companies would be empowered to renegotiate co-determination arrangements.

If the “social partners” fail to agree, a draft paper leaked to Der Spiegel last week says that only a third, rather than a half, of all supervisory board seats would be reserved for worker representatives. In Anglo-Saxon-style firms with a single board, the worker representatives would be confined to a watered-down consultative council. In the coal and steel industries, co-determination would cease altogether.

Worker representatives, often including union leaders active in a particular sector such as transport or chemicals, are delegated but Rogowski’s plans would force a ballot of the entire workforce.

Dennis Snower, head of Kiel’s Institute for the World Economy, told a reporter from the Süddeutsche Zeitung last week that the system must be adapted to meet modern demands for entrepreneurial flexibility, especially among foreign investors.

The most telling business argument for change is that co-determination is an obstacle to cross-border mergers or, as in the case of Hoechst and Rhône-Poulenc (now Aventis), forces the transfer of the company headquarters outside Germany.

But EU company law reforms, in the making for 30 years, will enable transnational firms to offer shares to the German public, with little or no co-determination. So far, few British companies seem attracted by the idea, let alone by Mitbestimmung; their German rivals are much more interested.

Source: Guardian (UK)