Almost 30,000 hospitality jobs at risk in Edinburgh due to coronavirus downturn

Almost 30,000 hospitality jobs in the Capital are at risk despite a major UK Government employment retention scheme, a union has warned.

The Lawnmarket, which would normally be filled with tourists, stands empty on March 30 during the coronavirus lockdown

With many businesses forced to close during the coronavirus pandemic, Chancellor Rishi Sunak has put in place multi-billion-pound measures to aim to safeguard jobs.

Latest figures suggest there are 28,500 jobs in Edinburgh tied to the hospitality sector - the third highest total in the UK.

The city’s business sector is already reeling after it was announce yesterday its International and Fringe festials will not take place for the first time in 70 years.

Unite the union today warned that some firms were already choosing to pay people off across the country instead of putting them on furlough.

An estimated two million people are employed in the UK’s hospitality trade, according to official figures.

Unite’s national officer for hospitality, Dave Turnbull, said: “These figures show just how many people rely on the hospitality industry for employment, and the severity of the dangers the coronavirus crisis poses to their livelihoods and the health of local economies in general.”

He warned that many workers in the sector are “never more than a pay cheque away from the breadline”.

Mr Turnbull said the union was already coming across examples of businesses which had decided to lay staff off rather than place them on furlough under the Government’s scheme.

And he said there was “no excuse for companies not to join the scheme and so protect their workforces”.

“For bosses that don’t rehire fired staff or refuse to sign up to the job retention scheme, Unite’s message is clear: We will expose you, we challenge your behaviour and we will take legal action for unfair dismissals.”

Hospitality trade association UKHospitality also urged employers to sign up to the wage-support scheme.

Its chief executive, Kate Nicholls, said that “not only will it safeguard jobs, it will also put the sector in a much stronger position to help rebuild the economy after the crisis has passed”.

‘We are doing everything we can to support you’

On March 20, Prime Minister Boris Johnson ordered all bars, clubs and restaurants to close across the UK as part of the introduction of social distancing measures to limit the spread of coronavirus.

A rescue package for businesses and workers was immediately announced, which included the promise of a wage-support scheme for workers across the UK.

A spokeswoman for the Scottish Government said it had so far delivered a £2.2 billion economic support package.

“For the hospitality and tourism sector that includes a full year’s non-domestic rates relief, £10,000 grants for small businesses in receipt of the Small Business Bonus Scheme or Rural Relief, and £25,000 grants for hospitality, leisure and retail properties with a rateable value between £18,000 and £51,000, including self-catering accommodation and caravans,” they added.

“We also opened a business support line to provide advice for those affected by the crisis.

“We need employers, trades unions and workers to work together to reach the right decisions on all workplace issues that arise throughout the coronavirus outbreak and ensure workers are treated fairly, and would encourage businesses to engage with the Job Retention Scheme rather than make staff redundant.

“The Edinburgh Festivals are hugely beneficial to all of Scotland – both economically and culturally – but our priority must be to protect people’s lives and do what is necessary to tackle the spread of the virus.”