How the national minimun wage affects negatively life of workers in UK

March 22, 2019

Golden Papers

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Gate Gourmet is the world’s largest airline caterer operating in 5 continents, 26 countries, having 101 flight kitchens. Each year 200 million meals are served and according to the year 2007 2.5 billion CHF is recorded.

There are totally 250 airline customers and the company has world-class chefs who help in designing menus for the complete satisfaction of customers.

(a) Matter of concern

In the year 2005, Gate Gourmet handed over pink slips to 800 workers who are employed at Heathrow. These workers provide in-flight meals and employed by Gate Gourmet whose main client in UK is British Airways.

The grievance of catering assistants is that per annum salary is £12,000 whereas chauffeurs are earning  £16,000 which is more than catering assistants. The workers are of the opinion that these wages are very low as compared to other expensive cities in the world. The company is providing very low wages which is the cause of dissatisfaction for workers.  Further the management of the company is very harsh and rude with the workers in the course of execution of jobs.  The workers want re-engagement in jobs and an increase in wages and in order to put forth request to the management, the workers have collectively approached the customers, to sponsor and recommend Gate Gourmet to take care of employees as without workers catering company cannot  perform and run business.   There are many disputes between workers and the management of Gate Gourmet which have to be solved. According to the National Minimum Wage Act 1998, Chapter 39, Section 1 states that  workers are to be paid national minimum wage, Section 2 determines the hourly rate of remuneration, Section 3 states about exclusion of, and modifications for, certain classes of person, and Section 5 states about Low Pay Commission.

 (b) Ethical Concern

Workers work in companies for regular source of income in order to make a living which is the basic entitlement for any educated or skilled worker.  A worker receives remuneration based on education, experience and as per the terms and conditions of employment contract. Unfair dismissal, redundancy or wrongful dismissal strongly abuse the system of employment to a great extent leaving a huge negative impact on the young and energetic individuals who rely on monthly job income and in many workers around the world, depend on wages earned from companies whether on hourly basis or monthly basis.

Low wages, more working hours, harassment, ill-treatment, low incentives, and there are many other problems which are faced by workers in these days very silently, and no worker has a voice to raise against management due to the fear that the existing job would be lost and this problem is prevailing almost everywhere in the world whereas these problems must be solved, by recommending legal enactments which are the guidelines for workers to receive benefits from employment. Harmony between workers and management, appropriate communication and regular meetings with workers, are some of best possible means to receive feedback from the workers which is the absolute professional method of human resource management.

This is a moral issue, due to the fact that the workers when lose jobs, have to pass through a great disturbance by appealing to employment tribunals for receiving claims and also have to find employment which is again a time factor.  Further low wages and non-payment of regular wages, would still deteriorate the status of living for workers who live as immigrant workers or resident workers, who do not have any other source of income apart from regular job.

Good workers are the assets of a company and exploitation of workers for the growth and progress of a company is entertained and should not be used as a negative source. The workers have to discharge duties in a perfect manner, that it does not result in over exploitation and also to enable jobs are peaceful.  From a common employee perspective, the mindset of a worker would be to exercise duties quite diligently, honestly and with maximum efficiency and supporting this National Minimum Wage Act 1998 also recommends employers to adhere to the legal regulations laid down in several legal sections in Chapter 39 of National Minimum Wage Act 1998.

(c)Is it right or wrong to be given worker the national minimum wage whatever

their work?

It is in order to give entitlement for a worker to receive national minimum wages as specified in National Minimum Wage Act 1998 Section 1,2,3  which state about hourly rate can be determined by employer, and application of Section 3 who have not attained the age of 26  and apply rules of Low Pay Commission wherever required. Depending on the work load, hourly rate of wage can be fixed by employer which is acceptable under legal regulations of NMW Act 1998.
(d) Conclusion

National Minimum Wage Act 1998 is enacted in the interest of workers who are eligible to receive the minimum wage that is fixed by employer either hourly or monthly.  Further employees are also entitled to inspect records of wages and employers also must provide a statement of wages as a record evidence that workers are receiving the wages on a regular basis.

Gate Gourmet workers grievance was based on National Minimum Wage Act 1998 that workers are being paid very poor and demanded higher amount of wages.


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