Citi hotels raise workers' wages

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)