Surcharges on public holidays criticised

The Perc waitress Willow Duffy delivers a coffee and hot cross bun to a customer yesterday. Photo...
The Perc waitress Willow Duffy delivers a coffee and hot cross bun to a customer yesterday. Photo by Craig Baxter.
A Dunedin cafe owner has labelled surcharges on public holidays "greedy" while confusion over Easter Sunday's status led another Dunedin cafe to accidentally levy a surcharge for part of yesterday.

And Invercargill's farmers' market closed yesterday after a warning from the Department of Labour, NZPA reported.

Farmers' Market New Zealand chairman Chris Fortune disputed farmers' markets could not trade, saying the markets were allowed to trade based on "the department's very own regulations and rules".

Labour Department communications adviser Colin Patterson said farmers' markets did not necessarily break the law, but it depended on individual circumstances.

Since the Holidays Amendment Act 2004, many eateries have levied customers on public holidays, citing the generous provisions for staff on public holidays.

Workers are entitled to time and a-half wage rates, plus a day-in-lieu.

Sarah Henderson, who has owned The Perc, in Stuart St, Dunedin, for three years, said the overheads argument did not wash.

"I just think it's unfair and greedy," she said.

Surcharges had annoyed Miss Henderson as a customer before she entered the hospitality trade, so she did not charge them herself.

Increased trade on public holidays more than made up for the extra wage bill.

On public holidays, many people had "cabin fever", wanting an outing, and often spent an extended amount of time - and money - in cafes.

Nova Cafe manager Paula Denton disagreed, saying Nova could not open without a surcharge.

Nova's 15% surcharge applied on Good Friday, and today, Easter Monday.

Easter had not been particularly busy for Nova, with many people out of town, she said.

Miss Denton had reduced her surcharge this year from the 20% she charged previous years, due to the recession, and to keep in line with other eateries.

With a 20% surcharge, the restaurant had been able to break even with the bigger wage bill.

Paasha Turkish Cafe owner Paul Martin charged 10% extra on public holidays.

It was not because of the time and a-half wages, but the fact workers also got the day-in-lieu, significantly adding to overheads, Mr Martin said.

While restricted trade rules applied yesterday, Easter Sunday is not an official public holiday, and employers do not need to pay staff extra or give a day-in-lieu.

One central city Dunedin cafe was carrying a 20% surcharge yesterday morning, but it was lifted just before lunch after an inquiry by the Otago Daily Times.

The owner, who refused to be named, said she was confused about Easter Sunday, despite having been in the hospitality trade several years, and had thought it was a public holiday.

Otago Chamber of Commerce chief executive John Christie said he would not be surprised to see surcharges go.

Some eateries were already bucking the trend, not passing the wage rates on to customers.

Competition meant once a few businesses dropped the charge, pressure went on others to follow.

In the end, it depended how much businesses wanted the custom, Mr Christie said.

No rules dictated businesses could not levy customers on Easter Sunday, and an argument could be made that employers might have paid higher wages yesterday because of the long weekend, even though it was not a public holiday.

Of farmers' markets, Mr Christie said he thought most people would consider such trade a reasonable public holiday activity, so an exemption could apply.

However, he was wary of doing away with all trade restrictions, saying the law was in place to honour Easter's significance as a religious holiday.

Only three and a-half restricted trade days remained in New Zealand, without which trading would occur every single day, he said.

Yesterday, 19 of 23 retailers throughout New Zealand visited by the Department of Labour checking compliance with the rules were open and trading.

The two visited in the South Island were open and trading.

Mr Patterson declined to reveal the identities of the retailers, as inspectors were to file reports before decisions would be made on legal action.

eileen.goodwin@odt.co.nz

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