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‘Bring hotels under Factories Act’

Special Correspondent


Sector now under Shops and Establishments Act

Need for consolidation of workers stressed


Bangalore: The hotel industry should be brought under the ambit of the Factories Act, and a national commission should be set up to study the plight of workers in the hospitality industry, the Hotel Employees Federation of India (HEFOI) has demanded.

Speaking at a national convention of the federation here on Monday, Franklyn D’Souza, HEFOI general secretary, said the Labour Ministry had “hoodwinked the trade unions” by giving them the impression that it was on the verge of making an amendment to this effect, but had finally buckled under pressure from the powerful lobby of hoteliers. This had left the industry under the Shops and Establishments Act.

N. Vasudevan, federation president, also demanded that a service charge of 10 per cent be introduced and the money be passed on to workers. Such a system, he said, was being followed in countries such as Nepal, Malaysia and the Philippines.

Stressing the need for greater consolidation of hotel workers, Mr. Vasudevan said that the hospitality industry is seeing a boom, with tourism growth pegged between 20 and 25 per cent. “While the hospitality industry is flourishing with multinational brands too becoming important players in the country, workers are increasingly being pushed towards greater disorganisation.”

Christopher Fonseca, vice-president of the federation, from Goa, said a large number of trainees were being employed by hotels to work close to 12 hours a day and were paid no more than a paltry sum as stipend. They often substituted for regular workers.

Only collective efforts could counter the powerful hospitality industry lobby, said Mr. D’Souza, citing the success of the workers of the Palace on Wheels in Rajasthan as an example. He said 3,000 employees of the luxury train had struck work, opposing the bid to privatise it, though it has been making a profit. They had succeeded in blocking the move, he added.

The federation has decided to observe International Tourism Day on September 17 as Hotel Workers’ Demands Day.

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