While the Novel Coronavirus (COVID-19) pandemic continues to disrupt the worldwide economy, Swiss Inn Nexus Hotel has decided on a 40pc cut of employee wages this month.

The management of the Hotel made the wage cut based on the new workplace protocol that was drafted and issued by the Ministry of Labour & Social Affairs. The protocol was ratified after the Ministry, employers and worker confederations signed onto the tripartite document a month ago.

The hotel industry is among those that have been hit hardest by the effects of COVID-19. In the capital, 88pc of the hotels have closed their doors fully or partially, while room occupancy rates have sharply declined to below two percent.

In its letter that was posted on the notice board on April 28, 2020, the management announced a minimum 10pc cut to wages for employees that earn up to 3,000 Br each month and a maximum 40pc cut for workers earning over 20,001 Br each month.

Before reaching the decision, the management held a series of meetings with the employees and their representatives twice a week for a month, according to Haileleul Yilma, operational director at the Hotel, which is located in front of Anbessa City Bus Service Enterprise on Jacros Street.

“We've also given the employees a chance to come up with a proposal for the revision of their salaries," he said. "But since they didn't come up with one, we passed our decision."

The Hotel also consulted the city's Labour & Social Affairs Bureau about the decision, according to Haileleul, who added that the experts from the Office gave a two-day briefing to employee representatives from the different departments about the protocol.

"Then we posted the decision on the notice board," he said.

The Hotel, which has 250 employees, is operating at only 10pc of its capacity with the swimming pool, bar and restaurant closed. Its room occupancy rate has also fallen sharply with just 10 to 13 rooms occupied out of a total of 151.

Out of total employees, 105 have taken their annual leave, while the remaining are on duty. Some of the employees, those who used their annual leave earlier this year, decided to use their leave from next year.