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British Columbia

Whistler hotel banquet workers to be repaid $85K in tips

The Fairmont Chateau Whistler hotel has volunteered to repay $85,000 in gratuities to about 60 banquet workers that was previously given to managers, according to the workers' union.

Union says money was unfairly given to catering sales managers

The Fairmont Chateau Whistler has agreed to pay servers about $85,000 in tips that previously went to managers, says the workers' union. (Radio-Canada)

Banquet workers at the Fairmont Chateau Whistler are getting a hefty tip-out, after management agreed to repay a portion of gratuities.

According to theUnited Food and Commercial Workers local1518, the hotel has agreed to repay approximately $85,000 in tips to about 60 workers in the banquet department.

"They're ecstatic. This is a lot of money," saidKate Milberry, press secretary with the union.

"Some workers are getting close to $3,000in wrongfully withheld tips."

Staff said under a previous tipping structure, 20 per cent of gratuities were distributed to catering sales managers.

A change to the Employment Standards Act in B.C. in spring of 2019 made it illegal for employers to take any tips, except in cases where theyperformexactly the same job as the staff.

"We're talking about precarious workers, part-time workers, students and sometimes workers who have to hold two jobs," saidMilberry.

According toMilberry, the employees had repeatedlyraised the issue with management before seeking help from the union in 2018, whichthen filed two complaints with the Employment Standards Branch.

"As a result of our looking into the issue and then the Employment Standards Branch starting an investigation,Fairmont voluntarily decided to repay $85,000in withheld gratuities," saidMilberry

Voluntary tip-out

In a letter sent to staff,Fairmont management said it agreedto make the retroactive gratuity paymentswhich have been reviewed and approved by the Employment Standards Branch.

"Even though gratuities were never decreased or withheld, thehotel voluntarily decided to make retroactive payments to employees," the hotel toldCBC News in a e-mailed statement.

"The hotel's gratuity distribution systemhas always been and remains completely transparent and fully compliant with theEmployment Standards Act."

The hotel also says it has made adjustments to the banquet staff's contracts to comply with changes to the Employment Standards Act in May 2019.

Milberryacknowledged thatFairmont was not found guilty of violating the Employment Act or disciplined, but rather volunteered to pay the money.

"They haven't been ordered to do so but I think it indicates that the workers were, in fact, correct in their allegation that these were their gratuities that they deserved," she said.

With files from Nikita Nayak