Labor Cost Management Let Us

¶ … Labor Cost Management

Let us discuss about how the profitability of the food and beverage operations at 'The Tenney' and 'Melancon Convention Center and Hotel' can be achieved. This can be achieved only by firstly raising the customer attendance and secondly by cutting costs. While the fixed costs involved in the operation cannot be curtailed, the variable costs can be cut down. Some of the frills that are not customer attractions can be got rid of. However the major cost that can be cut is by removing wage cost and employee costs. Labor costs are consistent and will keep on rising. The problem will then be reduced to how a labor intensive operation like the food and beverage department can be made cost effective. Full-service hotels must meet the food and beverage needs of their guests. The community residents and others are also likely to consider a hotel along with its restaurant and want to have a new and very specific dining experience. This means that the food and beverage operations are important but must be done with minimum costs. We may see that as the volume of the guests increase there will be a corresponding increase in the food and beverage operations calling for very specialized management of these operations. (Ninemeier; Perdue, 2004)

To remove the labor costs means to remove some or most of the labor in some way or other. Today there are requirements from the side of the labor and the management that some how tend to redefine employee relationship. There thus ought to be a newer definition of employee relationship. Legally it is a contract that creates rights and obligations for both the employee and the employer. Thus from a national point-of-view the employment relationship as seen by the state is the frame through which the workers gain rights and benefits and these are brought about by the legislation of labor laws that gives such employee benefits as social security pension and also provide for protection and creating balanced employers' rights and equitable obligations. (ILO Report, 2006)

In reality the global opportunities are now making employees seek independence. While on one hand the employers look out for more flexibility and accommodative modes of production from employees while on the other hand the collective representation and bargaining power of employees post globalization is wanting. Added to that, the casual labor, seasonal employment and specific purpose contract-based employment have come in vogue. The boundary between the traditional employer and the employee is slowly getting blurred. (Dundon; Rollinson, 2004) This may not be so in the food and beverages section, but youth look to better jobs and employment in other areas and systems. Those who are then available are costly.

In such a scenario, the following are the facts: