Wages council abolition and small hotels

Abstract

Reports on a project measuring the impact of the abolition of minimum rates of pay on pay rates and the methods used to determine pay in the hotel sector. Places emphasis on differences between small independently managed hotels and hotels operated as part of a nationwide chain. Following abolition, rates of pay have been found to have declined throughout the industry with the rate of decline more appreciable in small rather than group‐ operated hotels. Illustrates that the pay policy of small hotels was heavily influenced by the former statutory requirements and that as a result of their withdrawal, pay rates have fallen. Reports that a relationship between the criteria used to determine pay and pay outcomes also seems to exist. Also notes that group hotels take into account a wider range of factors than small hotels which place greater emphasis on internal considerations. Concludes that size and ownership of establishment as a structural characteristic impacts on pay levels and pay policy within the hotel sector.

Citation

Radiven, N., Radiven, N. and Lucas, R. (1996), "Wages council abolition and small hotels", International Journal of Contemporary Hospitality Management, Vol. 8 No. 5, pp. 10-14. https://doi.org/10.1108/09596119610126086