Citi hotels raise workers' wages

JAKARTA (JP): Several star-rated hotels in the capital have raised employees' salaries by between 5 percent and 15 percent despite lower occupancy levels, an hotel association official said over the weekend.

Trisno Tarmoedzi, chairman of the Hotels Human Resources Development Association, told the media Saturday that an association survey found 17 of 22 establishments, bearing from three to five stars, had increased salaries.

"So far, we have only surveyed 22 hotels, but I believe many others have followed this step (to raise salaries)," Trisno said.

Several factors may be responsible, he added.

"It could be either because the All-Indonesia Workers Association (SPSI) in those hotels were successful in defending the rights of the workers, or because the management of the hotels planned the hike way before the monetary crisis hit."

Another reason, he said, could be healthy profits of the company.

Salary increases, set at up to 6 percent annually, are also based on the annual workers' performance evaluations.

Commenting on low occupancy rates affecting most hotels in the city, Trisno said it was a nationwide problem.

"But it does not mean that because of the crisis the management is unable to improve the welfare of the workers.

"The hotels cannot use monetary woes as an excuse to avoid their obligation (to improve the welfare of employees)."

Most hotels have recorded accommodation downturns of 30 percent to 50 percent. Some hotels are reportedly running at 15 percent occupancy, he said.

"Therefore, the hotel must be innovative in creating new ideas to boost revenues."

Trisno, who is also the human resources director of Hotel Ciputra in West Jakarta, said his hotel opened a new cafe, Paparazzi, serving dishes priced between Rp 2,000 and Rp 6,000 each.

"We are getting Rp 800,000 net income daily from that cafe. This is just a simple way to cope with the crisis," he said.

Hotels would have to be more efficient, he said.

"Efficiency by cutting unnecessary budget spending and laying off some workers has to be done to cope with the crisis. It's part of the consequences."

Those laid off were usually interns or contract employees, he said.

Trisno refused to disclose the names of hotels in the survey as it was still ongoing.

"I know it is risky to increase the salaries in this condition. But this hike is badly needed by the employees. It is part of the management's responsibilities ... so I'm glad many hotels did it."

A wage increase is meant to boost the productivity of the employees and motivate them in serving guests better, he added.

Several representatives of five-star hotels in Jakarta told The Jakarta Post of increases in worker salaries.

Human resources director of Hotel Mulia Senayan in Central Jakarta, Evin Soehada, said the increase was based mainly on a general decision by its owner, the Mulia Group.

"Every year, we are committed to raising our workers' salaries. That is why this time, despite the crisis, we have increased it from between 5 percent and 15 percent, based on the job evaluation."

Although the increase was not commensurate with rising inflation, Evin said it was better than nothing..

An employee of Borobudur Intercontinental Hotel in Central Jakarta, Doddy, said a 15 percent raise was implemented on March 1.

"Before the renovation work on the Borobudur, we had about 1,200 employees. Now we only have 849 workers, and the increase is equally distributed," he said.

George Basuki from Grand Hyatt Hotel in Central Jakarta also confirmed a salary increase at the hotel.

"Business has been slow due to the crisis, but we're glad we can survive this," he said. (edt)