Hyatt Regency: An impending financial crisis?

On June 7th, the five-star Hyatt Regency in Mumbai issued a notice to its workers stating that it would temporarily suspend operations. This also means that its 300+ employees will not receive salaries Hyatt is up and running again.

This decision has ensued disillusionment and resentment among employees. As one of the employees expresses, “We were already working at a 50% pay cut since last year. For the last two months, we have not received our salaries ranging between Rs 16,000 to Rs 30,000. Now, the management says it will suspend our services completely. Even during the pandemic, we risked our lives and worked for them and this is how they are repaying us.”

Employees claimed they were not paid salaries for April and May, and that the notice has exacerbated their already-existing frustration. They also say that there was no prior communication regarding a potential suspension of services. Had they known, they would have planned accordingly.

Employees felt that this decision was unfair, and in retaliation, 193 workers resorted to the Industrial Court – a government judiciary corps that addresses employment-related matters and disputes – in Badra. This was followed by an order on Tuesday; the court will hear their concerns on June 28th.

The pandemic has left informal employees helpless and has wreaked havoc. Decisions like these amplify the uneasiness and perturbation experienced by workers in the informal sector.

An important question must be asked: Is this just the beginning of a crisis yet to come? There’s no question that the pandemic has left the hospitality sector across the globe in ruins. They are feeling the pinch and are tightening the belt. Employees are suffering as a result. As Times of India puts it, “The closure is the first visible sign of stress among prominent sign of stress among prominent chains in the hospitality sector in India’s financial capital”. How many more employees will be laid off? How many more employees will have their wages cut? Is a financial crisis looming? It remains to be seen...

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