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Whitbread faces worker protests over plans to cut 1,500 jobs at Premier Inn, roughly 4% of its total workforce.

Members from the Unite Union also threaten Whitbread with employment tribunal claims for unfair dismissal over the said cuts and failure to properly consult with the staff on planned redundancy.

Premier Inn Job Cuts Amid Rising Profits

These cuts were part of Whitbread's plans to build more hotel rooms and shut down more than 200 of his chain restaurants.

Unite Union members claim that the 45-day consultation, as mandated by the law, was not conducted in a "genuine or meaningful way."

The Unite Union also claims that Whitbread did not consider alternatives to redundancy despite reporting a 36% rise in his company's profit.

The job cuts were first announced in April when Whitbread announced that his company's profits grew to £561 million ($713.02 million) while raising its final dividend for each share by 26% to 62.9p.

One of the union members has alleged that this practice was not new for the Premier Inn owner.

There were also allegations of underpaying his staff and refusing to provide sick pay to his workers.

Premier Inn Owner Whitbread's Defense

On the same day as the protest, Whitbread, who owned restaurant chains including Beefeater and Brewers Fayre, announced a 1% profit increase in three months until 30 May, which he attributed to the improved trade between the UK and Germany.

Whitbread further explained that the increase in profits for his businesses came from his hotel businesses, not his restaurant businesses. Hence, he does not accept nor recognize the union's claims.

Whitbread's representative said they had "a comprehensive and transparent collective consultation process."

Premier Inn's owner's representative also said, "The consultation process is still ongoing, and as part of this, we are seeking to find alternative opportunities wherever possible through the roles created by this program and our existing recruitment process, which makes approximately 15,000 hires each year."