Hilton Kuala Lumpur is the latest hotel to implement pay cuts and lay off staff in order to survive the economic fallout caused by the Covid-19 pandemic, reported The Star.
"A number of team members will regrettably be retrenched based on the Last In-First Out (LIFO) process," according to an internal letter sent to the hotel staff.
The hotel urged those who would be retrenched to apply for claims from the Employee Insurance System (EIS) through the Social Security Organisation (Socso).
Some staff will be placed under the employment retention programme (ERP) where government aid of RM600 per month would be provided through Socso for three months for those earning RM4,000 and below.
“In the event of unsuccessful applications, team members will be on unpaid leave," according to the hotel.
Other staff are retained with a salary cut of up to 50 percent.
“We are forced to make difficult decisions to ensure the continuity of the business and in order for the hotel to continue to operate,” it said.
Severe blow
There have been other casualties in the hospitality industry in the midst of the Covid-19 pandemic, which has seen countries around the world completely shutting down their borders, dealing a severe blow to the tourism industry.
Among others, G City Club Hotel, which manages the GTower Hotel in Kuala Lumpur, has also announced that they will be terminating its hotel operations.
On April 30, Syeun Hotel in Ipoh reportedly informed its staff that it would cease operation on May 31.
The 27-year-old hotel had faced difficulty in the last three years even before the movement control order (MCO) was enforced.
It was also reported that Tower Regency Hotel and Kinta Riverfront Hotel and Suites had ceased operations at the end of last month.
The Ramada Hotel in Malacca, which has been in operation for almost 40 years, will close down in July.
A survey conducted by Malaysian Association of Hotels (MAH) on April 16 showed about 15 percent of hotels might shut down their operation due to the Covid-19 pandemic. - Mkini
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