After mixed results with its introduction, many hotels are hoping the Federal Government’s JobKeeper program will be continued as the realities of resumed restricted trading set in.
Pubs across Australia are continuing to reawaken to increasing numbers of patrons, albeit at a staggered rate in different states as each jurisdiction determines its own approach to relaxing measures to stop the spread of COVID-19.
Despite being one of the earliest industries affected by the strategies, pub workers saw mixed results getting into the JobKeeper scheme; the AHA and TAA (Tourism Accommodation Australia) estimate in the region of 240,000 out of 250,000 workers employed by their members were stood down.
The gulf appears to be mostly related to challenges in securing the short-term funding required for payroll, atop the fact many workers were ruled ineligible, being casuals employed less than 12 months or hailing from overseas.
Since the start of June many venues have been able to accommodate up to 50 people per designated dining area, totalling significant numbers for larger sites, and the end of the first week’s trading has found gaming operations already attracting strong returning patronage.
But physically smaller venues are struggling to make ends meet while social distancing regulations remain, unable to provide multiple sections or hold large numbers with the mandated rule of four square metres per person.
As the Morrison government announced their plan to begin easing restrictions early, in late May, the AHA, TAA and ClubsNSW submitted their joint proposal to continue the lifeline JobKeeper funding for employees beyond the scheduled end date of 27 September until at least the end of the year, suggesting many in the industry would still be experiencing seriously depressed trading.
In the nearly three weeks that have followed, the reopening conditions have greatly suited some locations over others, and those favouring a strong gaming component over pubs relying more on food & bev.
This has effectively created a two-speed economy for the pub industry, with many regional and suburban pubs that pitch more toward families struggling to get profitable again, typically as a result of higher wage costs.
Beyond pubs, this can be seen in other facets of hospitality. Many restaurants and cafés have failed to reopen, and many that have are flagrantly ignoring the social distancing requirements, weighing the potential for consequence against the risk of continuing to lose money while being open.
It is likely that certain pubs will no longer need the wages support, while some – particularly those in areas heavily dependent on tourism – will continue to see revenue reduced by at least the 30 per cent dictated for JobKeeper eligibility, creating “immense pressure on hotels” to keep staff employed.
“If JobKeeper is not extended, many workers will be diverted from JobKeeper to JobSeeker as it will be impossible for employers to afford to retain them,” said the submission.
The government has acknowledged the shortfall in the total cost of the JobKeeper program against initial projections, but to date no indication has been given of extending the wage subsidies beyond 27 September.