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Why tip to hotel workers could add to your food bill

NEWS
By Peter Muiruri | April 9th 2019
By Peter Muiruri | April 9th 2019
NEWS
Chris Musau, left, Chairman KAHC, and Albert Njeru the Secretary-General KUDHEIHA after signing a Comprehensive Bargaining Agreement

NAIROBI, KENYA: Unionisable hotel workers in Kenya will now earn a seven per cent service charge from sales and another 5.5 per cent on beverages as part of an official tip.

The introduction of the tip is among a raft of other benefits contained in a newly signed Comprehensive Bargaining Agreement (CBA) by two bodies representing players in the hotel industry.

The 2019-2020 CBA between the Kenya Association of Hotel keepers and Caterers and Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals, and Allied Workers will issue guidelines regarding terms and conditions of employment in the industry.

Some of the new terms of the agreement include a 10 per cent increase in general wages for 2019 and a further 8.5 per cent in 2020. This will make a total of 18.5 per cent wage increase in the next two years.

In addition, workers will now get a 10 per cent house allowance for 2019 and a further 8.5 per cent next year. 

"This is a formal tip that is shared equally across the board and improves the employee’s income and performance," said Chris Musau, KAHC chair.

Other benefits include a medical scheme, gratuity, leave allowance, travel allowance and welfare matters, for instance, when an employee loses a loved one. 

"An alternative dispute mechanism is enshrined in the CBA, which is the Joint Industrial Council and the Dispute Committee. These two bodies are tasked with the responsibility of investigating disputes and training both employers and employees on industrial relations," said Musau.

KUDHEIHA Secretary General,  Albert Njeru said the CBA ensures a sustainable atmosphere in the industry. 

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