Fedhasa explains its urgent bid to stop new restaurant pay rules

Fedhasa chairperson Rosemary Anderson says players in this industry don't have the ability to increase their margins, especially now.

According to Business Insider, from this week, all restaurants and fast-food outlets in South Africa face a costly set of new rules for staff remuneration, which includes December bonuses and weekly payments to clean uniforms.

This after the Department of Employment and Labour extended the main collective agreement of the newly formed Bargaining Council for the Fast Food, Restaurant, Catering and Allied Trades to all employers – including those who are not part of the bargaining council. All restaurants and fast food outlets have a month to register with the council.

Previously, restaurants were covered by the sectoral determination for the hospitality sector, which had far less tenuous requirements.

There is an urgent bid to stop new restaurant pay rules.

Federated Hospitality Association of South Africa (Fedhasa) chairperson Rosemary Anderson tells us more.

It's basically based on representation, you need to have 50 plus one representation in order for that to go through and we believe there isn't.

Rosemary Anderson, Chairperson - Fedhasa

WE have a very good relationship with the Department of Labour because we work together on education our members on the ground and in workshops and all that, so we quire quite easily able to talk to them.

Rosemary Anderson, Chairperson - Fedhasa

They said because the minister was persuaded by the registrar... The understand our explanations. They feel however, because it is has been signed into law by the minister, the only way we can deal with it is to go to the courts. They explained legally this is the only way until there is an amicable agreement and ... find clarity.

Rosemary Anderson, Chairperson - Fedhasa

There is a huge spectrum of the industry, they don't have the ability to increase their margins even more so by increasing these contributions.

Rosemary Anderson, Chairperson - Fedhasa

Listen below for the full interview...

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