Comments that the World Cup will negatively effect the incomes of hospitality staff are unfounded, says Whale Cottage Portfolio owner Chris von Ulmenstein.

The hospitality industry has been accused that it will allegedly benefit from “…a get-rich-quick scheme at the expense of their hard-working employees…”  by a letter writer in the Cape Times.

As the owner of a number of guest houses in the Western Cape, I wish to point out the following:

1.   Many accommodation establishments have signed up with FIFA’s MATCH booking agency.  Rates for 2010 were set at a formula of the 2007 rate +16% inflation.  We all know that the inflation rate this year alone is 10 – 12%, which means that in 2010 all profit will have been eroded due to the rising costs of petrol, food, electricity, and interest rate increases.

2.   The World Cup event takes place in our winter months.  Traditionally many staff do not work in this period, and therefore do not earn an income.    In 2010 all willing and able staff will be employed, meaning that workers will generally be better off.

3.   As of 1 July, the Minimum Wage for the hospitality industry was increased to R 1,659.08 for small accommodation establishments, and to R 1, 849.65 for establishments with 10 staff or more, based on the formula of the inflation rate +2%.    Overtime must be compensated by extra time off or extra payment.

4.  The Department of Labour sends inspectors to establishments throughout our province, and checks payment records, and compliance with the other requirements of the Sectoral Determination governing our industry.

5.  The biggest constraint to the growth of our hospitality industry is the lack of supply of experienced and loyal staff.   If staff are prepared to work hard, to not have unrealistic expectations about their capabilities, are prepared to learn on the job, and to honour their employment contracts by giving notice instead of running away on payday, we will grow our businesses 

Chris von Ulmenstein

Whale Cottage Portfolio