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Underpayment of foreign staff commonplace in restaurants

In the overwhelming majority of cases, those doing the exploiting are the countrymen of their victims


Underpayment of foreign staff commonplace in restaurants
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By Anu Nousiainen
     
      Lawyer Matti Penttinen never went to the restaurant where the two Turkish chefs Alim Arslan and Alim Acar were working. He says he once looked at the menu from outside.
      Penttinen estimates that in the last twenty years or so he has handled between 150 and 200 similar cases that went to court. The great majority of Penttinen's foreign clients have been working in the cleaning sector or in the restaurant trade. In both of these branches, the existence of an "upstairs, downstairs" labour market is a commonplace.
     
What binds most or all of the cases together is that foreign workers are used as cheap labour: the employer discriminates against the employee with no language skills, who is often totally dependent upon the employer. Too long hours are worked for too little reward.
      "Often the victims are cooks or chefs, who slog away in the kitchen at the back of the restaurant, out of sight of the customers", explains Penttinen.
      Almost without exception, the employer facing charges is a countryman of the employee suffering discrimination.
     
The case of a group of Chinese stonecutters in Kalvola in 2001-2003 was exceptional, in that it was a Finnish company based in Iittala and run by Finns that was ordered to pay the employees compensation.
      The plight of the stonecutters, which gained national exposure after the Finnish Construction Trade Union dug in its heels and threatened limited industrial action, was also partially instrumental in getting an amendment written into the Penal Code.
      "In the event that the workplace discrimination places an applicant or employee in a materially inferior position by taking advantage of the applicant's or employee's economic or other straits, his or her dependent position, lack of understanding, thoughtlessness, or ignorance, the person found responsible shall be - where no other legislation mandates a more severe punishment - sentenced to fines or a prison term of up to a maximum of two years for the offence of extortionate workplace discrimination."
      [Unofficial Translation, 302/2004, Amendment to Ch. 47 of the Penal Code].
     
In the context of Penttinen's career, the case of Arslan and Acar does not come from the nastiest end of the shelf.
      "They were paid a reasonable wage, but the days were very long and they received nothing in the way of overtime and other statutory benefits. In the most egregious cases, the pay has been of the order of a hundred or two hundred euros a month", says Penttinen.
      "There were heaps of cases in the early 1990s, and those discriminated against were mainly Thais, masseurs and and cleaners mostly, who came from the poor regions of North-East Thailand. Now it seems to be mostly Turks."
      He guesses that the heavy sentences dished out to Asian offenders have prevented new cases, since the circles are small: Helsinki is just a big village, after all.
     
Chinese restaurateurs have also been caught and sentenced. Penttinen has handled cases where people have been put to work 12-14-hour days in the kitchen for next to no wages.
      "The employees are always at work and never even get to use the money. They have nothing to lean on except their employer."
      Nobody knows how many similar cases never get exposed because the foreign worker cannot, dare not, or is unwilling to do anything about the matter.
      "For many, a return to their country of origin may seem like a worse alternative than the prevailing situation", notes Penttinen.
     
Asian restaurant staff in particular often come to Finland through a third-party agent. The agent's fee is a hefty one, and money has to be borrowed or collected from within the family.
      Penttinen recalls an incident where Thais who had come to Finland were charged interest of 5 percent a month on loans, or an annual 60 percent. Under those circumstances, it is humanly impossible to stop work, even if the employee does actually recognise he is being royally shafted by the employer.
      The lawyer regards many of the cases he has seen as nothing short of trade in humans. "It would be rather naive to believe that all the cases out there come to the public eye."
     
Until recently, it has been more or less impossible to monitor the treatment of foreign workers. Last year the occupational safety districts got seven additional inspectors whose task was solely to concentrate on foreign labour: on work permits and working conditions.
      Inspections began in August 2005. They are carried out particularly on building sites, in restaurants and hotels, in cleaning and trucking firms, and in the metals branch.
      According to Toni Andersin, an inspector from Helsinki, the focus among restaurants has been on small ethnic establishments with generally no more than a dozen employees.
      Shortcomings have been found. Andersin says that underpaid staff are a common occurrence. "The salary is not always of the same order as that paid to Finns in the same position."
      After May 1st this year, it will become possible for labour to move freely to Finland from the new EU countries, when the two-year transition period comes to an end.
      Andersin says it is too early yet to say whether the problems will be exacerbated, but he notes that the matter is being followed with great interest.
     
The couple who were sentenced for discrimination in the case of Arslan and Acar will probably appeal the judgement to a higher court.
      Matti Penttinen has already filed his appeal: he believes the compensation paid out to the two men should have been greater.
     
Helsingin Sanomat / First published in print 19.3.2006

More on this subject:
 Starvation wages in a Helsinki kitchen

ANU NOUSIAINEN / Helsingin Sanomat
anu.nousiainen@hs.fi


  21.3.2006 - THIS WEEK

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