The Hand Picked Hotel Group has informed its 1,000-strong workforce across 21 UK locations, including five in the Channel Islands, that they face temporary pay reductions due to declining demand in the hospitality sector.
The announcement comes at a particularly sensitive time, following an intensive holiday period. “We have just had to work really hard and endless hours over Christmas and they do this,” said one Jersey-based employee, who spoke to the BBC on condition of anonymity. “Some staff are talking about walking out because of it.”
Scale of the Cuts
The hotel group plans to reduce payroll hours by up to 12.5% across its properties, with the situation to be reviewed weekly based on individual hotel and departmental needs. This follows earlier redundancies announced in Guernsey before Christmas.
Operational Changes
Staff report significant operational adjustments:
Reduced bar operating hours, now only open evenings
Limited service opportunities
Weekly review of staffing needs
According to the Jersey staff member, recent communications with senior management highlighted financial challenges: “There was a call with the CEO and owner a couple of weeks ago and they talked about how much money the hotels have lost and they can’t keep losing.”
Company Response
The Hand Picked Group defended its decision, citing “challenging market headwinds and reduced guest demand” as key factors. They emphasized that the cuts would not affect the £3 per-hour pay rise implemented across all hotels in 2022.
The company outlined its ongoing commitment to staff through:
Increased training opportunities
Greater flexibility in working hours
Accommodation for those seeking fewer unsocial hours
Looking Forward
The group maintains it “remains committed to our people and to delivering the best possible service to our guests” despite operating in what it describes as a “challenging economic environment, with ongoing rising costs and lower consumer confidence.”
The temporary nature of the cuts has been emphasized, with management promising regular reviews of the situation. However, the timing of the announcement, following the busy Christmas period, has created significant tension among the workforce.
