Gastro-Short-Term Workers' Financial Assistance Advocated for by NGG Head
The catering and hotel industry in Germany, hit hard by the lockdown, is pleading for more financial support for employees forced into short-time work. As Guido Zeitler, chairman of Nahrung-Genuss-Gaststätten (NGG), put it, "Gifted industry with aid, but forgot about the employees."
The lockdown has forced hundreds of thousands of workers in the industry back into short-time work, with those in the low-wage sector feeling the brunt. Zeitler argues that employees in the industry also rely on tips, which have vanished during this crisis. Mini-jobbers, so far, have had no support.
The industry, which employs more than a million people, has already lost every sixth job since the spring. The closure of restaurants leaves workers perplexed. "Companies have invested in concepts, distances, ventilation, and glass walls to keep customers safe," Zeitler explained, "Yet lockdowns deprive both companies and employees of their livelihood."
Not only employees, but the aid measures should also extend to businesses. The economic impact of the shutdowns is likely to go beyond November, Zeitler warns, and calls for the aid to be prolonged.
The situation for large hotel companies, already struggling with a ban on private travel and reduced business trips, will worsen. "It's a de facto closure," Zeitler admits, as the occupancy rate drops. "Running a business economically isn't possible under these conditions."
Cross-country comparisons highlight different approaches to helping the catering and hotel industries cope with lockdowns during the pandemic. While Germany offers stronger support through the Kurzarbeitergeld system, other countries take varied approaches. Enhanced unemployment benefits, furlough schemes, and small business loans and grants have been key measures in the U.S., U.K., and India, respectively.
Digital transformation, with a shift towards cloud kitchens and contactless ordering, and technological innovation have also played a role in coping with the extended lockdowns. As countries grapple with the pandemic's impact, it seems that a combination of financial support, policy adjustments, and technological innovation will be essential to helping the hospitality sector weather this challenge.
The economic impact of the lockdown extends beyond just the industry; businesses in the catering and hotel sector, like many others, also require financial support. Not only employees in this industry are struggling, but the aid measures should also be extended to businesses for them to survive these challenging conditions.
