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Hilton Axe for Rogue Agencies

By Alan Lodge , 15-Nov-2007

Related topics: Business

Hotel giant to review its policy on agencies after investigation reveals housekeeping staff were paid less than the national minimum wage.

HILTON Hotels has cancelled its contracts with three unnamed agencies and is reviewing its staff-sourcing processes after an investigation uncovered illegal practices among some contract staff suppliers.

The investigation, led by campaign group West London Citizens, revealed that agencies providing housekeeping staff to some Hilton hotels were failing to meet minimum wage regulations by paying per room cleaned, at a rate below the minimum wage.

 

Robin Derrett, vice president of human resources at Hilton, said: "They weren`t abiding by best practice, basic minimums or our contracts, so we terminated those contracts."

 

The company has also introduced an addendum to its contracts, outlining how it expects agencies to act in managing staff in line with best practice.

 

Hilton is currently reconsidering its use of agencies. Mr Derrett said: "Ultimately we are looking at how we can bring more labour in-house, so we have more control of staff.

 

"To do that we need to be more able at recruiting in the volumes that the agencies do and for that we are looking at a centralised function.

 

"We will still use agencies to cover peaks in volume, but we are reviewing those few hotels where the housekeeping is effectively outsourced to agencies."

 

Mr Derrett refused to divulge the names of the agencies involved.

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