Workers get loaned cash back
RESTAURANT chain Tomahawk Steakhouse has paid back controversial loans it received from furloughed workers - adding an extra 20% as a ‘thank you’ to staff.
The firm was criticised by union leaders after it asked its 500 furloughed staff to loan the company part of their wages to help it weather the pandemic.
The chain - which started in North Yorkshire but now has restaurants in Newcastle, Jesmond, Ponteland and Durham - secured voluntary agreements from staff which saw them contribute around 10% of their wages to cover their pension and National Insurance contributions.
Now, however, the firm has repaid the loans while also adding an extra 20% as a thank you.
A spokeswoman for Tomahawk Steakhouse said: “As part of the voluntary agreement signed by all of our staff, we promised any monies loaned would be returned as soon as we were financially able. Following the Budget announcement last week, we are delighted to have been able to swiftly honour that promise this week.
“All staff have now received the loaned amount, along with an additional 20%, as a thank you for supporting the business at this critical time.”
In the original request letter to staff, who work across 12 restaurants, Tomahawk Steakhouse said it had a “short-term cash flow issue and it requires your help and support”. The company later said all 500 had agreed to the loans.
The GMB, which claimed staff had
been ‘bullied’ into lending the money, said the money should never have been deducted in the first place.
Neil Derrick, GMB regional secretary, said: “This was always an outrageous exploitation of both the furlough scheme and low-paid, young workers.
“The cash should never have been taken in the first place as no employee can afford a further reduction in their take-home pay - especially when it is to cover their employer’s own obligations. Tomahawk’s bullying behaviour was rightly condemned across the board.
“Their U-turn is a massive win for workers. Let’s hope this abuse of the furlough scheme is over and not repeated elsewhere.”
The original letter from Tomahawk Steakhouse to its staff said: “The company has supported you so far with placing you on furlough (where possible) so you still receive around 80% of your wages and we can retain you in the company.
“Now we respectfully ask, in these difficult times, for you to support us by agreeing to pay your own employer’s National Insurance/pension contributions by way of a voluntary ‘loan’ to the company while we are in lockdown.”
Tomahawk had rejected claims staff had been bullied into making payments, saying: “At no point has Tomahawk Steakhouse ever suggested staff would be sacked if they did not sign a loan agreement.
“We have faced a challenging year and our priority throughout has been to protect our people and our business.”
FURLOUGHED
STAFF ARE REIMBURSED – AND GIVEN 20% BONUS