On February 23, 2023, the Fair Labor Platform presented the results of a baseline study examining wages and working conditions in hotels. The study marked the first phase in a project that aims to promote living wages in Georgia and address the issue of low wages that have plagued the labor market.
The baseline study was based on interviews with 30 workers at high-end hotels in Tbilisi, as well as an analysis of data submitted by 214 hotel workers through the Platform’s Wage Theft Calculator. The study also examined labor inspectorate reports and public job vacancies posted by hotels.
The big picture findings were grim: Monthly salaries for the workers we interviewed ranged from 740₾ to 1,450₾, with a median of 910₾. The median salary for hotel workers who used the Wage Theft Calculator was 930.50₾. Both median figures fall far short of Georgia’s estimated living wage of 1,770₾ per month.
In addition, 89.7% of the hotel workers who used our Wage Theft Calculator reported at least 1 form of wage theft, meaning most workers are not taking home all of the money they are legally entitled to.
Approximately 83% of workers we interviewed said their salaries did not adequately cover their living expenses. Yet 90% also said that this job was their main source of income, with most working around 46 hours per week in their jobs. Health insurance coverage was also limited: Over 26% said it wasn’t covered, and another 1/3 said they “didn’t know.”
Wage Theft in Focus
The most common form of wage theft amongst the 214 hotel workers who used the Wage Theft Calculator was off-the-clock work – defined as mandatory work that is not counted as part of normal working hours. Nearly 73% reported at least one form of unpaid off-the clock work, with arriving early or staying late to perform necessary job functions being most common.
Unpaid overtime was reported by about 40% of Wage Theft Calculator users, but 86% said that their employment contract did not specify a specific pay rate for overtime work – which is required by law.
Violations of paid leave time were also rampant, with 56.2% getting less vacation time than they were entitled to. Of that cohort, 38% said they received no paid leave time at all. Finally, 55.2% of users whose employer collected tips said the gratuities were not passed onto them. The average amount reported lost by this group was 236₾ per month.
The Platform did not publish a full report on the study, but more detailed data and analysis can be found here (interviews) and here (Wage Theft Calculator). In the coming year, the Platform hopes to build on the study by working with hotels and staff to encourage better wages and working conditions in the industry.
The project was funded by the Friedrich Ebert Foundation. For more about our work on the living wage, see here.
