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A Hereford Beefstouw

Collective agreement

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Collective agreement

Dear guest

The negotiations with 3F regarding the renewal of the parties' collective agreement have now concluded, and unfortunately, an agreement was not reached this time. Despite this, it is important for us to emphasize that our restaurants will continue to remain open as usual. 

The absolute main stumbling block in the negotiations is a showdown with the current wage system, where unskilled waiters coming in off the street – completely without experience – are entitled to the same minimum wage as a skilled waiter with nearly 4 years of vocational training – and on top of that, a higher minimum wage than our skilled chefs and receptionists. 

We want a collective agreement. But it must support the development of the industry, not limit it. An industrial conflict is therefore being initiated in accordance with the ground rules that follow from the Danish model. We expect the conflict to take place without inconvenience to our guests, and we and our many talented employees will, as always, be ready to provide our guests with service at the same high level that we always strive for!

Please read below for further comments:

We support the Danish model—but only 10% of the restaurants in Denmark are covered by a collective bargaining agreement

As has appeared in the press, we have in recent months been in negotiations with 3F regarding the renewal of our collective agreement, but we must conclude that unfortunately it is not possible this time to make ends meet.

We are strong supporters of the Danish model, but while the labor market and the industry have evolved rapidly, the collective bargaining agreement has remained stagnant in key areas, and unfortunately, there is no willingness among 3F’s negotiators to bring about the renewal and development that we believe is necessary. Perhaps this is also why only 10% of restaurants in Denmark are covered by a collective bargaining agreement.

It almost goes without saying that it is difficult to compete with the 90% in the market who operate their restaurants without a collective bargaining agreement, and that this situation of unfair competition is not sustainable if we are to survive as a business, now and in the future.

A showdown with an unfair wage system where unskilled waiters receive the same pay as skilled ones

That being said, one of the biggest sticking points keeping us from reaching an agreement with 3F is the design of the collective agreement's current wage system. A wage system where, for example, an 18-year-old student coming straight in off the street with no serving experience at all must be paid the exact same minimum wage as a skilled waiter who has completed an apprenticeship lasting nearly 4 years. A minimum wage that, on top of that, is significantly higher than the agreement's minimum wage for both skilled chefs and skilled receptionists.

It is a mystery to us that 3F wants to stick to this wage system, and that is, among other things, what we neither can nor will be a part of anymore.

On the contrary, we see it as both logical and fair to have a wage system where minimum wages are differentiated based on education and experience, which gives young people an incentive to improve their skills and pursue a vocational education.

No social dumping and no wage cuts

3F is running a press campaign claiming that we want to wage-dump and drastically cut employees' pay. It goes without saying that in an industry screaming for labor, we would not succeed in worsening the conditions for our employees. Nor do we want to! On the contrary, with a new collective agreement, we want to make ourselves—and ideally the entire industry—more attractive as a workplace and career path.

None of our employees will therefore take a pay cut. All our employees are guaranteed to continue with the salaries they have today, and our proposal to reorganize the salary system in a new collective agreement therefore has nothing to do with wage dumping.

More flexibility for the individual employee

Furthermore, we are experiencing an increasing need to accommodate employees' desires for work schedule arrangements tailored to the individual employee's needs. The collective agreement does not allow for this. Some need to pick up children, some want to go to yoga every Thursday, some would like to work every weekend, others would like to have every weekend off, etc. etc. We would like to be able to accommodate this flexibility to a greater extent in order to attract and retain talented employees.

That is how we want to run our businesses in the future, and that is how we believe development in the industry is created, as well as an increased desire, for both current and future generations, to pursue a career and work in our fantastic industry.

Why is it 3F's members who are being locked out?

We have received questions about why it is only the employees who are organized in 3F that we are locking out. The simple answer is that since 3F is the union we have a collective agreement with, it is this union's members who must be locked out. That is how the rules for establishing a conflict determine it.

We hope with this response to dispel the major misunderstanding that we are in any way opposed to our employees being organized in 3F, and that they are therefore the exact ones we are locking out. Because we are not. We never have been, nor will we be in the future.

On the contrary. We have freedom of association in Denmark, and we both celebrate and safeguard it!

What does it mean for our guests?

To our guests who might be concerned about whether booked events can be held, we can reassure you that we expect the conflict to take place without any inconvenience to our guests. We, and our many skilled employees, will therefore also during this period be completely ready to provide the same quality and high level of service for which we have always been known.

We hope that with the above information we have provided more clarity on the facts of the situation, and we and our many motivated employees look forward to continuing to do our utmost to create the best experiences for you in our restaurants.

Best regards

Aage Damgaard ApS