Report of the employment conditions commission on the investigation into a sectoral determination for the forestry sector

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REPORT ON THE INVESTIGATION INTO A SECTORAL DETERMINATION FOR THE HOSPITALITY SECTOR-2010







INDEX



CHAPTER ONE: 2

CHAPTER THREE 13

CHAPTER FOUR 31

CHAPTER FIVE 33




CHAPTER ONE:


As directed by you, the Employment Conditions Commission (ECC) has pleasure in presenting you with a report on its investigation into the Hospitality Sector.

Background to the investigation


The current sectoral determination 14 for the Hospitality sector was published on 15 May 2007 and became effective from 1 July 2007. The wages component of the determination will lapse on 30 June 2010. The determination regulates conditions of employment and minimum wages to be paid in the hospitality sector. The wages were set in accordance with the number of employees an enterprise employs, where an enterprise with 10 or less employees pays 10% less than an enterprise with more employees. This approach was informed by the fact that the majority of employees in the hospitality sector are employed by small firms, i.e. those with 10 or less employees. The new minimum wages and the wage increase regime for the hospitality sector need to be in place by 1 July 2010.

Employers in the hospitality sector are to a very large extent organized in terms of the different fields in which they operate. Table 1 provides an overview of the range of organizations within the hospitality sector. As illustrated in the table, these organizations represent a reasonable profile of the main sub-sectors in the scope of coverage of the Sectoral Determination.

Table 1: overview of the range of organizations existing within the hospitality sector


Organisation

Sub-sector/description

Tourism Business Council SA

Umbrella body representing business sector in tourism on macro-issues;

Members include trade associations and individual businesses.



THETA

Training body for all sub-sectors related to tourism and hospitality, conservation, sport and recreation.

The Federated Hospitality Associations of South Africa (FEDHASA)

Hospitality trade association including, hotels, restaurants, caterers, self-catering, time-sharing, home hosting (B&B, guesthouses), suppliers, consultants and service providers to hospitality industry; conference venues, country clubs and taverns.

National Accommodation Association

Trade association for smaller establishments- 1-30 bedroom establishments.

1500 members



Bed & Breakfast Association of South Africa (BABASA)

Mostly Small, Micro and Medium Enterprises SMME’s including lodges, guest houses (1- 15 rooms), B&Bs (1-6 rooms) & caterers.

Mostly informal and “unregistered”, partnerships and “mom and pop” shops.



National Council for Tour Guides

Represents tour guides and adventure operators (e.g. bungee jumping etc.)

National Association of Catering Employers (NACE)

Employers organization in the catering industry

In the process of registering as an employers’ organization



South African Commercial and Catering Workers’ Union (SACCAWU)

Trade union

Hotels, restaurants, tourism, gambling.

Congress of South African Trade Unions (COSATU) affiliate


Hotel, Liquor, Catering &
Allied Workers Union (HOTELLICA)

Trade union representing hotel and catering employees.

National Council of Trade Unions (NACTU) affiliate



Commercial Catering, Accommodation Workers’ Union (CCRAWU)

Independent trade union- breakaway from South African Catering, Commercial and Allied Workers’ Union (SACCAWU) mainly hospitality sector


Terms of reference


The terms of reference for this investigation as published in the Government Gazette No. 32526 notice No. R.873 dated 25 August 2009 was as follows:

to review wages and the conditions of employment in the Hospitality Sector”.


Methodology


A four-phased project framework was developed for the investigation:

Phase One – Administrative aspects


A notice was published in the government gazette on 25 August 2009, inviting interested parties to make written representations within 30 days to the Director-General. In response to the notice, four (4) written submissions were received from the following organisations:

  1. SACCAWU;

  2. FEDHASA;

  3. Southern Sun; and

  4. Southern Midlands Tourism.

Phase Two – Consultation with stakeholders


Public hearings were scheduled across the country as set out in table 2 below.

A total of 28 public hearings were conducted, covering all nine provinces. There were almost three hearing sessions in each of the provinces. After the initial planned public hearings, site visits were conducted in certain workplaces, targeting specifically employees. This was due to the poor turnout of employees during the public hearings. Employee attendance was disappointing in most of the public hearings.

Table 2 below indicates places visited together with the attendance profile of stakeholders for each hearing.

Table 2: Public hearing schedule and attendance profile



Hospitality Public Hearings 2009

Province

Dates

Venues

Time

Employers

Employees

Eastern Cape

20/10/09

Mthata

10H00

17

15

21/10/09

East London

10H00

12

5

22/10/09

Port Elizabeth

10H00

0

3

Limpopo

20/10/09

Modimolle

10H00

10

11 

21/10/09

Polokwane

10H00

12

10

22/10/09

Tzaneen

10H00

16 



Western Cape

28/10/2009

Cape Town

10H00





29/10/2009

Beaufort West

10H00

13 



30/10/2009

George

10H00

6



Kwa-Zulu Natal

02/11/2009

Durban

10H00

4

5

03/11/2009

Richards Bay

10H00

10

4

04/11/2009

Newcastle

10H00

4

0

Mpumalanga

02/11/2009

Nelspruit

10H00

10 

5

03/11/2009

Witbank

10H00

13 



Northern Cape

09/11/2009

Kimberley

10H00

 7



10/11/2009

SpringBok

10H00

 14



11/11/2009

Upington

10H00

 5



North West

18/11/09

Brits

10H00

 8



19/11/09

Potchefstroom

10H00

 4



20/11/09

Christiana

10H00

 10



Gauteng South

18/11/09

Johannesburg

10H00

4

0


Gauteng North

 


17/11/09

Pretoria

10H00

2

0

18/11/09

 


Magaliesburg

 


10H00

 


8

 


5

 


Free State

23/11/09

Bloemfontein

10H00

18 

19 

24/11/09

Welkom

10H00



 13

25/11/09

Harrismith

10H00





As reflected in table 2 above, public hearings were not well attended, particularly in respect of employees’ representation. Subsequent to the public hearings, site visits were arranged where interviews in the form of a questionnaire administration were conducted. The questionnaire process yielded results, as the secretariat managed to visit workplaces and interviewed a total of 253 employees and 15 employers. Table 3 reflects the places visited and the number of employees and employers spoken to during the site visits.



Table 3: Questionnaire administration

Name of outlets.

No. of Employers

No. of employees.

BLOEMFONTEIN







Aloe Guest House

2

2

City Lodge

1

4

Palm lodge

2

4

Altair Guest House




8

Bloem spar

1

2

Formula one hotel




8

TOTAL




28

NELSPRUIT







La Roca guest house




2

Town lodge




6

Road lodge




5

Mugg and Bean




10

Panarotti restaurant




2

Bairoo restaurant




4

Milky lane




2

TOTAL




31

RUSTERNBURG







Sparkling Waters




11

Blue Hill guest house




2

Spur restaurant




18

Wimpy restaurant




4

Southern Sun hotel




12

Akwaba Lodge




6

Rustenburg Boutique




4

TOTAL




57

Pietermaritzburg/Durban







Nando’s




6

Ocean basket




5

Mugg and Bean




4

Rievere hotel




3

Albany Hotel




4

Palm breeze B& B




4

All Season B& B




4

Spur




5

Wimpy




4

TOTAL




39

Beaufort West/Cape town







Oasis hotel




2

Formula 1 Hotel




2

Beaufort manor




5

Steers




4

Daddy long legs

1

5

Harbour bridge hotel




6

Protea hotel




3

Southern Sun




4

KFC




12

Tree top guest house

1

3

TOTAL





46

PORT ELIZABETH







Avocet guest house

0

2

Formula one hotel

2

0

KFC (Heugh Road)

0

10

Nando’s

0

5

Kwadwesi Fish Tale

0

2

Admirality Guesthouse

1

2

Palm Beach Guesthouse

1

0

TOTAL

4

21










KIMBERLEY







Dulce café

1

3

John Dory

0

3

China restaurant

1

0

Protea hotel

0

1

Bench mark

0

12

Chicken licken

1

3

Road lodge

0

6

King pie

0

3

TOTAL

3

31




















Phase Three – ECC Process


During this stage the ECC considered the inputs received and made its recommendations as contained in this report.

Phase Four – Publication of the amended sectoral determination


This phase will see the publication of amendments to the sectoral determination, once you have considered the recommendations of the ECC.

Structure of the report


The report consists of the following chapters:

  • Chapter 1 of this report gives a background of the sector and the methodology utilized;

  • Chapter 2 of this report outlines the state of the hospitality sector;

  • Chapter 3 discusses the findings of the investigation and resultant proposals;

  • Chapter 4 discusses the proposals in light of the criteria that the ECC has to consider; and

  • Chapter 5 summarizes the recommendations of the ECC.

Chapter Two


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