Invercargill Licencing Trust faces staffing crisis

Wednesday, 16 June 2021

Invercargill Licencing Trust chief executive Chris Ramsay says the organisation is facing a short-term staffing crisis and it also needs to find 80 staff to work at the Langlands Hotel which will open in early 2022.

The Invercargill Licencing Trust is approaching a staffing crisis where it may have to close some of its restaurants for a day a week to give its current workers time off.

Chief executive Chris Ramsay said the organisation, which operates restaurants, bars, liquor outlets, hotels and motels, was facing two challenges - filling its current staffing shortage and finding another 80 staff to run the new Langlands Hotel when it opens early 2022.

The trust was now on the hunt for three qualified and skilled chefs and another three restaurant and bar duty managers, he said.

“We are fast approaching crisis point … unless we can find cover for some positions over the next few weeks we will be forced to review the trading hours of some of our restaurants … which may lead to some of them closing for a day in order to give existing staff a break.”

* Construction of Invercargill's $40 million hotel on schedule

* ILT rapidly rehiring staff as turnover improves

Invercargill Licencing Trust chief executive Chris Ramsay

Until the staffing gaps could be filled the rolling closures would remain in place on a quiet trading day of the week, he said.

The Southland Chamber of Commerce highlighted Southland's staffing shortage this week, with chief executive Sheree Carey saying businesses were crying out for staff across all industries, particularly given the migrant workforce tap had been “turned off”.

The chamber is leading a project aimed at attracting and retaining workers, with its first task to identify the industries with the biggest problems.

Ramsay said the trust’s immediate shortage of skilled chefs and duty managers had come at a time when its businesses were trading strongly.

The trust had a pool of talented staff it would normally redeploy to fill gaps, he said.

“But we are getting to a point where we don’t have the ability to share staff across different businesses, so we are actively advertising for cover for a range of positions and doing everything we can to fill the gaps.”

The lack of migrant workers had seen gaps filled in the hospitality industry by locals nationwide which had shrunk the pool of available talent, he said.

“Almost every industry in the country is saying exactly the same thing.”

There was also the “ripple effect”, given other industries were hunting for staff.

“We are losing some people to non-hospitality industries because of the appeal of more standard hours and-or more money.”

The trust’s remuneration for its workers was “ahead of industry, particularly at entry level’’, and it was advertising for staff across the country.

Looking ahead, the trust [which currently employs 650 staff] also has 80 jobs to fill at the Langlands Hotel, which includes three bars, a cafe and a restaurant, when it opens in about February 2022.

“We see this [staffing shortage] as being both a short and medium term issue,” Ramsay said.

“The biggest stress on the horizon is about finding 80 skilled people to deliver the quality of experience we want in a brand new hotel and food and beverage development.”

The trust laid off 87 staff soon after lockdown in 2020, at a time when financial forecasts were “doomsday”, but began rehiring in the winter to get numbers back to pre-Covid levels.

“We are now in an incredibly positive position [business wise]. In the main our Invercargill-based businesses are flying, are going off, so it’s a problem we didn’t anticipate having to face,” Ramsay said.