UK catering firm cuts jobs, saying Covid-19 may mean no sport crowds until 2021
The world’s largest catering firm is to lay off casual staff after raising doubts over whether crowds will be able to fully return to sporting events such as Premier League football this year.
Boris Johnson said in July that he expected large-scale events to resume as early as 1 October, with the sport minister, Nigel Huddleston, saying he would be surprised if the “pretty firm” date was moved.
But Levy UK, which caters at Premier League football matches, cricket and horse racing as well as concerts and conferences, told part-time staff they might not be needed until next year.
The business, part of FTSE 100 firm Compass Group, wrote to casual workers to say they would be removed from furlough and that their services would no longer be required on 19 August, with payments ceasing a week later.
“It has become increasingly clear that concerts, sporting and other major events will only return in a ‘behind closed doors’ fashion at this stage,” the company said in an email to staff.
“The prospect of fully attended events is many months away and may only return in 2021.
“Therefore, we are giving you notice that we will be removing you from the government’s job retention scheme in two weeks’ time as we see no prospect of being able to offer you work at any of our venues.”
Levy UK provides catering at dozens of large venues such as the Tottenham Hotspur and Aston Villa football stadiums, the Edgbaston and Kia Oval cricket ground and the O2 Arena.
The company’s insight into the future plans of such venues indicates that hope of a return to sporting events and concerts with an audience before the end of the year may be fading.
In July, Johnson said: “From October, we intend to bring back audiences in stadia and allow conferences and other business events to recommence.”
“Again, these changes must be done in a Covid-secure way, subject to the successful outcome of pilots.”
The guidance has not changed since, although pilot events to test the feasibility of allowing spectators at sporting events were postponed indefinitely on 31 July.
Levy UK declined to say how many casual staff would be affected by the decision.
“The sports and leisure sector has been one of the most deeply impacted sectors as a result of the Covid-19 pandemic,” said a spokesperson.
“We have reviewed the likelihood of a return of sporting events, exhibitions and conferences on a site-by-site basis, working closely with our clients.
“With no catered sports or events taking place, or scheduled to do so for the foreseeable future, it is with deep regret that we have had to take the difficult decision to remove some of our casual workers from the furlough scheme.
“This is not a decision we have taken lightly, and we are working hard to redeploy teams where possible.”
The company, which topped up the wages of furloughed staff to 100%, said it will try to redeploy staff to elsewhere in Compass Group’s vast catering empire, which serves food at venues such as hospitals, schools and prisons.
About a third of those who received the email warning them of redundancy are understood to have been moved to other jobs already.
