Today's Labour News

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TsogoBL Premium reports that municipalities charged full rates to Tsogo Sun Hotels even as hotels stood closed, with CEO Marcel von Aulock calling the lack of support a disgrace.  

Tsogo Sun group released its half-year results to the end of September on Friday in which it detailed the huge losses in revenue that resulted from hotels being shut during lockdown and with leisure travel restricted.  Even as some hotels stayed closed, there were fixed costs each month as buildings could not be left to “deteriorate” said Von Aulock.  While suppliers reduced bills, landlords of some hotels reduced or stopped taking rental and banks renegotiated debt terms, municipalities continued to charge 100% of the rates and taxes bills.  Twenty years ago municipal rates and taxes were “immaterial” to the hotel group’s operational costs, but as they have risen above inflation year after year, they were now “material” costs, Von Aulock pointed out.  What seemed unfair to him was that while municipal staff earned 100% of their salaries, his staff had to take large salary reductions or lose their income completely.  The group's half-year employment costs were down from R645m to R234m, revealing how badly hotel employees’ pockets were hit by lockdown.  Tsogo Sun also received R103m from the government’s temporary employment scheme to pay staff.  But it has warned that, as the employer/employee assistance scheme ends and with hotel occupancy levels unlikely to improve in the short term, it would have to consider more restructuring to cut jobs.

  • Read the full original of the report in the above regard by Katharine Child at BusinessLive (paywall access only)


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