CHICAGO — In response to COVID-19, Hyatt Corporation has announced a number of new business measures to support employees while protecting the company’s long-term prospects.
These measures include suspending the operation of some hotels and implementing temporary furloughs. The company has also introduced pay and work reductions for all corporate employees globally, spanning all levels and responsibility, from April 1 to May 31.
“With our colleagues’ well-being in mind, we considered various options before arriving at the decision to furlough colleagues. By taking this action, Hyatt corporate colleagues’ eligibility for healthcare and other benefits will not change, and colleagues may also file for unemployment benefits during this period. For colleagues on a Hyatt healthcare plan who have been furloughed, Hyatt is actively taking steps to protect and fund benefit coverage (including employee-benefit premiums) for up to two months. Temporarily furloughed colleagues will be eligible for unemployment benefits and will be encouraged to use PTO days to cover pay during the furlough period,” reads a statement from the company.
President & CEO Mark Hoplamazian and chairman of the board Tom Pritzker are both forgoing 100 per cent of their salaries, and Hyatt’s senior-leadership team is taking a salary cut of 50 per cent through the end of May. The company is also in the process of setting up a global Hyatt Care Fund, which will be seeded by 100-per-cent of the Hyatt leadership team’s salary reductions as an initial contribution. The proceeds of this fund will be distributed to employees with the most pressing financial needs due to loss of income.
“Our ultimate goal is to emerge in a position of strength coming out of this crisis, with our world-class teams as intact as possible across the global Hyatt family. It’s only by the strength of our workforce that we can be ready when the hospitality industry rebounds,” the release states.