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You can find the current article at its original source at https://www.theguardian.com/money/2018/jan/02/members-club-backed-by-lord-ashcroft-seeks-to-cut-staffs-basic-pay
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| Version 2 | Version 3 |
|---|---|
| Members’ club backed by Lord Ashcroft seeks to cut staff's basic pay | Members’ club backed by Lord Ashcroft seeks to cut staff's basic pay |
| (about 1 month later) | |
| Staff at an exclusive private members’ club co-owned by the Tory donor Lord Ashcroft have been asked to take a cut in their basic pay in return for a share of the service charge, in a move that could leave low-paid workers vulnerable while reducing the company’s tax payments. | Staff at an exclusive private members’ club co-owned by the Tory donor Lord Ashcroft have been asked to take a cut in their basic pay in return for a share of the service charge, in a move that could leave low-paid workers vulnerable while reducing the company’s tax payments. |
| Workers at the Devonshire Club in London, where members pay £2,400 a year for access to a 68-room boutique hotel, brasserie and champagne bar, were asked last month if they would take a formal pay cut that would reduce their earnings to the level of the legal minimum wage. | Workers at the Devonshire Club in London, where members pay £2,400 a year for access to a 68-room boutique hotel, brasserie and champagne bar, were asked last month if they would take a formal pay cut that would reduce their earnings to the level of the legal minimum wage. |
| They were promised that their total pay would be topped up to the current level using money from the service charges automatically added to customers’ bills and distributed via a system called a tronc. | They were promised that their total pay would be topped up to the current level using money from the service charges automatically added to customers’ bills and distributed via a system called a tronc. |
| The scheme would potentially cut the Devonshire Club’s tax bill as, unlike basic pay, national insurance payments are not levied on independently distributed tips. | The scheme would potentially cut the Devonshire Club’s tax bill as, unlike basic pay, national insurance payments are not levied on independently distributed tips. |
| Although staff will save on national insurance in the short term under the scheme, cutting their contributions will affect statutory protections such as redundancy pay, maternity or paternity pay, or the state pension. Money from a tronc also cannot be included in staff contracts, potentially leaving staff vulnerable to a pay cut. | Although staff will save on national insurance in the short term under the scheme, cutting their contributions will affect statutory protections such as redundancy pay, maternity or paternity pay, or the state pension. Money from a tronc also cannot be included in staff contracts, potentially leaving staff vulnerable to a pay cut. |
| A letter to staff from the company operating the tronc, WMT Troncmaster Services, promises a minimum amount every month but makes clear: “This amount is, of course, dependent on the amount of gratuities our customers pay and cannot be guaranteed.” | A letter to staff from the company operating the tronc, WMT Troncmaster Services, promises a minimum amount every month but makes clear: “This amount is, of course, dependent on the amount of gratuities our customers pay and cannot be guaranteed.” |
| One member of staff told the Guardian they felt they had been given little choice but to accept the change: “I’m pretty cross about it. If I go to a restaurant, have a good meal and give a tip, I don’t give it for the company to take that money out of salaries.” | One member of staff told the Guardian they felt they had been given little choice but to accept the change: “I’m pretty cross about it. If I go to a restaurant, have a good meal and give a tip, I don’t give it for the company to take that money out of salaries.” |
| WMT Troncmaster Services manages a similar scheme for Fortnum & Mason, uncovered in a Guardian exposé last year. It is understood that WMT works with more than 150 restaurants, including many with Michelin stars. | WMT Troncmaster Services manages a similar scheme for Fortnum & Mason, uncovered in a Guardian exposé last year. It is understood that WMT works with more than 150 restaurants, including many with Michelin stars. |
| Dave Turnbull, regional officer at the Unite union, said: “Since the introduction of the national living wage we have seen evidence of this model spreading rapidly across hotels and restaurants. HMRC seem oblivious to what is happening here.” | Dave Turnbull, regional officer at the Unite union, said: “Since the introduction of the national living wage we have seen evidence of this model spreading rapidly across hotels and restaurants. HMRC seem oblivious to what is happening here.” |
| The board of the Devonshire Club said in a statement: “In order to ensure impartiality and transparency we have engaged the services of an independent third party to manage our tronc. | The board of the Devonshire Club said in a statement: “In order to ensure impartiality and transparency we have engaged the services of an independent third party to manage our tronc. |
| “No member of staff is under any obligation to join. Employees have been given an option to join the tronc system as the system was not in place when the club opened.” | “No member of staff is under any obligation to join. Employees have been given an option to join the tronc system as the system was not in place when the club opened.” |
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