BajaNomad - Living The Good Life?

Living The Good Life?

Bajahowodd - 10-27-2011 at 12:46 PM

I recently read an article from the October 10th edition of the Gringo Gazette that managed to both sadden and anger me. Inasmuch as I do not subscribe to the on line edition of Gringo Gazette, I will recount the highlights (lowlights).

The article dealt with the plight of hotels maids specifically, but the subject also applies to many other workers at the luxury hotels one finds in the Los Cabos area, such as waitstaff and bellmen.

It seems that most, but not all hotels engage these workers on 28 day contracts, which they renew subject to performance. By using these temporary contracts. the employers avoid having to pay any benefits, including making payments into the Mexican version of Social Security.

In addition, most of these same hotels add a service charge onto the daily charges in the range of $4-$5 per day. So, in effect even though you might already be paying anywhere from $150-$500 per day for your room, you are, in effect paying more than the daily wage of the workers in the resort with the added service charge.

A hotel maid typically is assigned about 13 rooms to clean per day. Thus, the service charge obtained for 13 rooms pays the hotel something between $52 to $65 per day. That maid, in accordance with the Baja region minimum wage earns $5.60 per day.

Coincidentally, a couple of days after reading this article, I engaged a waitress in a conversation while attending a function at the convention center on the grounds of the Sheraton Hotel.

I started to conversation by inquiring if she was ill or tired, as she was leaning on the wall at the time. The conversation evolved into a discussion that paralleled the article I was quoting.

I don't know how much she may have embellished her conversation, but she did tell me that she was very tired, as she had to work long hours, and claimed that under her contract, she could earn no additional pay for extra time.

She mentioned that she had lost a very good job that she held for 9 years at an upscale in-town restaurant when it closed for lack of business. She was the cashier there and claimed she earned a good living as a company employee. She didn't mention the name of the restaurant, but some hints led me to consider that it may have been La Casa Country, which by my calculations was in business about 9 years.

And, for anyone who has familiarity with the Sheraton property, she told me that the waiters in their two upscale restaurants, Pithayas, and De Cortez were the only people among the waitstaff, maids, bell staff, Etc. who were employees of Sheraton. Everyone else is on a 28 day contract.

One last note. She told me that the waitstaff, if asked by a guest, if the tip is included, when being served a drink, or whatever, they are to respond in the affirmative or risk being terminated.

So, fundamentally, not only are the resort hotel adding a daily service charge to the quoted room rate, but they are also suppressing the ability for the workers to obtain additional tips.

As I mentioned, I cannot vouch for complete accuracy in what this waitress told me, but it certainly tends to support much of what the GG article stated.

Enjoy your vacation!

sancho - 10-27-2011 at 01:06 PM

Quote:

Originally posted by Bajahowodd
That maid, in accordance with the Baja region minimum wage earns $5.60 per day.

I'm not a Resort Hotel vacationer, but that wage
is something that will stay on my conscience.
I suppose the Tourist Industry does support
some locals, but sometimes not to the degree any Tourist
should be proud of
and these resorts charge what, maybe $7+ for a poolside fruit c-cktail, but according to Wingnut they don't
make jack?????

[Edited on 10-31-2011 by sancho]

BajaBlanca - 10-27-2011 at 04:54 PM

hard to live on that low of a salary ....

norte - 10-27-2011 at 05:00 PM

And how many gringo's or Nomads have stated that they financially support Baja. I guess maybe they support the wealthy few!

MitchMan - 10-27-2011 at 05:53 PM

Two words: collective bargaining.

Woooosh - 10-27-2011 at 06:49 PM

Quote:

Originally posted by BajaBlanca
hard to live on that low of a salary ....

almost all of Mexico does. :?:

krafty - 10-27-2011 at 07:43 PM

We have stayed at these places just a handful of times, and we always tip the maids on a daily basis.

Phil S - 10-28-2011 at 09:13 AM

I've been told that as long as there are more unemployed workers who will work for slave wages, there will always be 'slave workers'. Anyone know the unemployment rate in Cabo & San Jose del Cabo now that tourism has fallen something like 37%???

mtgoat666 - 10-28-2011 at 09:42 AM

Quote:

Originally posted by Bajahowodd
.. the plight of hotels maids specifically, but the subject also applies to many other workers at the luxury hotels one finds in the Los Cabos area, such as waitstaff and bellmen.

#Occupy-Cabo!

the excesses of capitalism are world-wide.

shame on Sheraton,... but is to be expected.

Perhaps Paris Hilton will take up the cause of oppressed maids in her family's hotels?

desertcpl - 10-28-2011 at 10:20 AM

I think its disgusting, I also am not a Resort person, but we all know that the costs of going to places like Cabo is very expensive, room rates, meals, drinks and about anything else

I feel really sorry for these workers, there is no reason in the world why they cant make a decent living,

MitchMan - 10-28-2011 at 11:17 AM

Glad to see that many here are horrified and appalled at the insanely low income of the hotel maids in Cabo which are due in large part to the legal abuse (28 day employment contracts and super low minimum wage) and the bullying policy of being fired if accepting a tip and prevailing employment market that the maids find themselves in.

I can see that some here are raising an eyebrow at the disparity of high prices of accomodations and services in Cabo, yet labor is so dirt cheap while the principle (or principal, either will work here) expense of the serivce industry is labor itself.

Something that most people do not understand about a market economy is that there is no guarantee that the forces of supply and demand in any way guarantee a livable wage in Cabo or in the USA. Also, most people do not understand that in the classic economics of a market economy that cost and price of a given product or service most often do not have a direct relationship. That is, just because a product or service is cheap to produce doesn't mean that the price will be low also. Cost and price are often not connected and do not correlate. Price is determined by the market, not by the cost.

Finally, the other thing that most people do not realize is that a market economy always yields a disparity in income and wealth. That is the nature of a market economy. Always has been. We just become horrified when we all too seldomly learn instances of specific circumstances.... like this one. If we were to open our eyes more, we would see many more instances all around us.

[Edited on 10-28-2011 by MitchMan]

Bajahowodd - 10-28-2011 at 04:25 PM

Quote:

Originally posted by Phil S
I've been told that as long as there are more unemployed workers who will work for slave wages, there will always be 'slave workers'. Anyone know the unemployment rate in Cabo & San Jose del Cabo now that tourism has fallen something like 37%???

I recently read that the Los Cabos area occupancy rate is up somewhat from its low. Now in the low 60's% area. But, it is very uneven, with some resorts doing almost full house business, while others are sucking wind.

As for Krafty's comment, one insidious result of the service charge is that these resort operators originally implemented the service charge under the guise that too many guests were stiffing their workers.

If you happen to be staying at a resort hotel, if you really want to ensure that a hard working maid or waiter really gets rewarded for good service, pay them directly in cash.

Just for informational purposes, check this exhibit out.

http://www.wageindicator.org/main/minimum-wages/mexico

jakecard - 10-28-2011 at 04:42 PM

These numbers put a lot of things into perspective.

http://www.wageindicator.org/main/minimum-wages/mexico

Thank you, Bajahowodd.

Jake

Barry A. - 10-28-2011 at 04:49 PM

Quote:

Originally posted by Bajahowodd

Quote:

My brother-in-law, who has owned several hotels in San Diego, says that you must average about 70% occupancy to turn a profit-------the hotel business is very competitive, and they operate on very thin margins, so to keep their prices low and attract clients they cut expenses where they can.

Barry

motoged - 10-28-2011 at 05:06 PM

Quote:

Originally posted by desertcpl
....I feel really sorry for these workers, there is no reason in the world why they cant make a decent living,

Are you sympathetic to this issue or are you simply ignorant of the reality? The initial post clearly indicated several reasons they can't make a good living....could you on $6/day? There is a rather complex series of issues on the go here....but clearly the economy in general limits opportunities, as well as does education, corruption, etc....

Really....think about it. :light:

Phil S - 10-29-2011 at 07:42 AM

After reading all these comments, I'm wondering how many of you that are upset about the low wages of the maids, bother to walk into the hotel resort lobby and say, "I'm considering staying at your resort/motel. But first I want to know how much you pay an hour to your maids.??????
I know that when I inquire I ask, what is your best rate based on the following clubs I belong to. i.e. AARP. TripleA. etc,etc. I can't remember in any of the hundreds of motels/resorts I've been to, that I've heard other people checking in who have asked that question, "how much do you pay your maids"? Like said earlier. It's supply & demand. If there are large numbers of people who are willing to work for peanuts, there will always be people who will hire them. O;.K. Now. It's time for those who support Union involvement to correct this problem.???? AND NOW, what if they are organized, get higher wages, and guess what? You will start paying higher daily room rates. So, who is really right in this quest for "fairness" in wages?

Barry A. - 10-29-2011 at 09:10 AM

My brother-in-law built, and owned the Mission Valley Hilton (originally the DOUBLETREE) in San Diego. He ran a non-union shop for years. Then the Union reps came in and tried to organize the hotel workers, and tried, and tried, and tried----FOR ABOUT 2 YEARS------hasseling everybody in the process big-time. In the end, the employees voted to stay non-union, but my brother-in-law was so disalusioned, tired, disgusted at the Union tactics and what it cost to fight them, that he said to heck with it----sold the building and the business----and went on to other things.

After he got over the trauma, he did buy another Mission Valley Hotel and runs it to this day, as a non-union shop. We will see how long THAT lasts.

Barry

Bajatripper - 10-29-2011 at 09:58 AM

Quote:

Originally posted by Bajahowodd
That maid, in accordance with the Baja region minimum wage earns $5.60 per day.

Although I'm sure that the maids is such resorts aren't paid much, I wonder if this statement is true. While I don't dispute that $5.60 is the minimum wage in this area of the country, I have farmer friends who can't pay even Oaxaquitos (the euphemism in Mexico for the person who just fell off the turnip truck) that amount to pick their crops for five hours a day. They have to pay double or more to get people into their fields.

Something this summation left out that I have come across in other resources is the psychological damage done to people who work all day surrounded in the opulence that is the resort tourist industry and then go home to their hovels at night.

Overall, this is a fine example of why this industry (resort tourism) is not good for a region. Sure, it leaves a trickle of income with the locals, but most of the earnings are repatriated out of the country. Then there's the environmental damage that is done to a destination, the loss of access to beaches for the locals, the social upheavel, the squalour these resorts cause as people flood to the region from poorer regions of Mexico to a place where the infrastructure improvements NEVER take locals into account, etc. etc.

Your tourist dollars go a lot further in helping locals if they are spent in small, locally-owned-and-operated businesses at vacation destinations. But, of course, one can't expect the comfort and luxury offered at places such as Los Cabos. What a shame that some require that to enjoy their vacation time.

desertcpl - 10-29-2011 at 11:17 AM

Quote:

Originally posted by motoged

Quote:

Originally posted by desertcpl
....I feel really sorry for these workers, there is no reason in the world why they cant make a decent living,

JERK
apparently you cant read either :lol:

bajacalifornian - 10-29-2011 at 02:41 PM

January 1st, 2011
■Área geográfica A: 59.82 pesos
■Área geográfica B: 58.13 pesos
■Área geográfica C: 56.70 pesos

Recordamos que la zona geográfica A se compone, entre otros lugares, de:
■

istrito Federal y su Área Metropolitana
■Baja California
■Baja California Sur
■Acapulco
■Ciudad Juarez
■Nogales
■Matamoros
■Coatzacoalcos

I don´t believe the above needs translation,
I´ve lived in Baja for eleven years, I’m 22 years of age, several friends of mine work for resorts in Cabo San Lucas and San Jose del Cabo, and I have no idea where this information is coming from but can assure anyone it is complete nonsense. As I´ve posted above, the legal minimum wage as of 2011 is 59.82 pesos. The only reason any of my friends work at these resorts under minimum wage is because of the wonderful tips they receive, they tell me that it estimates to two dollars per drink, but have encountered very generous, or (drunk) tourists that leave up to 100 dollars or greater. My best guess is that the lady you conversed with was selling a story to make out with a better tip. You have thousands of people going through Cabo a week, especially knowing that Cabo is a time shared community, of at least 70% mentality of a party scenario, you’re at the resort having fun, getting drunk the people working there are usually making it a lot easier to have a good time, take this combination and I dare you to say they are not making an extra couple of bucks from all the happy campers. Based on a personal experience I was once at the resort Marquis in Cabo they were selling 1000 dollar popsicles and the tips the waiters were receiving were crazy. On the other hand you have got to take into consideration that food and utilities do not cost the same as the States.

Son of bajacalifornian,
Bradley J.S. Petersen

Bajahowodd - 10-29-2011 at 04:04 PM

Two observations.

First, if you want to take issue with the Gringo Gazette, be my guest. However, the woman I spoke to corroborated the idea that the resort owners were dodging benefits and social security payments by putting their help on 28 day contracts.

Second, as for wonderful tips, if these folks are told to say that the tip is already included,....

I noted from the beginning that it was most, but not all resorts.

That said, given the wage list for various jobs, is it any wonder why people risk life and limb to cross the border to El Norte?

I do not support the political right in the US, but, when they complain that the Mexican government is complicit in encouraging illegal immigration, one might just consider the paltry wages that are paid as mimimum by law.

Phil S - 10-30-2011 at 01:47 PM

I've become friends with many Mexicans (Baja) after spending the last 25 winters in Baja. Non that I've met "like it the way it is". Most 'wish' to improve their way of life. Most learning it from working with Americans who winter down there. Take away the American 'tourist', go back 50 years to Cabo & other cities up north, and you have ton's of fewer Mexican workers/residents. Many coming to the Baja for work after the Americans discovered Baja's climate & fishing sources.!! I can only imagine what their (at the time they moved to Baja) living conditioins were like, but probably wasn't much of an existence. Tar paper shacks maybe? One room cement block houses (casa's) Perhaps blue tarp homes. What were they doing at the time? Working on ranches? Working in agriculture? Sweeping streets.? Were talking about a 'poor' population that is very 'migrant' i.e.
traveling from 'picking location to picking location'. I don't think anyone blames them for trying to improve their way of life. But isn't the poor versus the 'rich' of Mexican population part of the problem? Doesn't the Mexican Gov't have much to do with keeping the poor "poor"? We're not talking about a 'little' social issue here. We're talking about a third world country with a too many children being born in the poor sections with very little encouragement to have either one or two kids. (help me out here. I hope that I'm right about this. And I haven't forgotten that this is a Catholic religion country) But aren't we still living in 'modern times' versus the older days when you would have as many children as you could afford. I'm hoping the 'modern today generation Mexican uses some restraint is consciously striving to 'hold down the population' of their country. Egads. Where the heck am I going with this??? I think I'd better end it now before someone tells me I don't know what the heck I'm talking about. Meow!!1

Bajahowodd - 10-30-2011 at 01:54 PM

"But isn't the poor versus the 'rich' of Mexican population part of the problem? Doesn't the Mexican Gov't have much to do with keeping the poor "poor"?"

Spot on. In my opinion, it was the decades of PRI rule that allowed, or even promoted it. PAN likely came to power based on a platform of encouraging the wealthy to create jobs. Looks like after two terms, the PRI might get back into power.

Of course, conditions that encouraged the vast disparity between wealth and poverty were somewhat different, say 30 years ago.

But in recent times, just like in so much of the industrialized world, including the US, government has come to be run by an oligarchy of wealthy businessmen and bankers.

These oligarchs have little interest in creating jobs in the absence of demand. They would rather hold onto their money. A vicious cycle.

Wingnut - 10-31-2011 at 12:33 PM

This just shows how little most people know about businesses they have never been a part of. I have over 40 years in the Hospitality business as a Director of Finance or Controller, mostly in hotels including lots of the biggies. These businesses do not make as much profit as you may think. Barry A is right when he says the % of occupancy will decide your profitability depending on how tight your run the business. Since 2006, the recession has hit the industry very hard and hotels today are run on the minimum to keep operating. Over the last several years, benefits costs (especially medical) are rising faster than average rates. Many employess, including management, have received few wage increases and quite a number of positions have been eliminated or consolidated to save costs. A typical full service hotel usually has payroll costs of between 40% to 48% of its revenues. Maids and dishwashers or stewards are usually the least higher salaries if you except the tip credited waiters and waitresses. Maids typically earn between $8.00 to $11.00 in non union hotels in the states. Adjust that level for Mexico's income levels and a $5.00 an hour maids job in Los Cabos is not bad at all.

Now regarding contracts, consider this. Benefits run around 32 to 38 percent of wages. Since benefits are not covered under any government requirement that does not concern taxes or overtime, all benefits are paid at the company's preference. Generally, annual reviews are made of the competition and how many and how much is determined by competition. In the US, with all the problems with illegal hiring being highlighted, it has become very difficult to hire maids in almost all localities. Hotels being hammered from the recession are hiring more "Contract" employees than ever. Why, because they are saving the 30%+ costs on benefits. These employees are hired by a service which pays them directly and the hotel is billed at a rate per hour, yes usually higher than it's own employees. But they pay no benefits. Considering that in the US, it's due to limitations due to hiring illegal immigrants, it's more than probable that some hotels are using "Contracts" in Mexico after their occupancies have taken such a huge loss during the recession. So lets look at why this is not such a bad thing for the employees.

The hotel, if it did not hire Contracted employees would have constant problems in keeping all of it's employees working. If one maid does 13 rooms, you woul d have how many maids needed daily? With occupancy varying from 20% to 50% you would have a lot of people with few hours to earn a living. The hotel would not be able to keep hiring and laying off employees. People would just not keep coming back. However, with monthly forecasting, they would be able to determine how many shifts are needed with the occupancy ups and downs and by offering a 28 day contract, the employee is guaranteed work. I am sure the contract pays even if the occupancy drops. This saves the hotel tons of money on benefits and insures it has enough people to work. I would think that most of the hotels in Cabo would use a combination of Contract and regular employees, retaining those who have proven their work and are properly trained. See my follow up on profits.

jakecard - 10-31-2011 at 01:00 PM

Wingnut, the figure Bajahowodd reported reading was $5.60 per day, not $5.00 per hour.

Still have the same opinion?

Jake

Wingnut - 10-31-2011 at 01:08 PM

Most hotels are not that profitable when you consider the immense costs in running these operations. That is why management companies have such a high profile in running the hotel for the actual owners. Through combined purchasing and common operational expertise, they can run a hotel more efficiantly than stand alone ownership. In the States, hotels profits run the gamet. The average full service hotel is going to see profits of 20% to 30% before taxes and fixed charges. This is referred to as the Gross Operating Profit which most management companies are judged on. The Net Operating Profit, (after ownerships costs such as taxes, insurance and other costs including depreciation and asset purchases), will vary from less than 10% to 15%. During the recession, many hotels were running at losses, some even at the GOP level as business just dried up. Owners were required to put in large capital outlays to keep the operations going. A number went into foreclosure.

Hotels are run like most other businesses, to stay profitable they do what they have to and no employees are guaranteed work or income. Being a very labor intense business, decisions are made on how to stay profitable. Most company's, including the Sheraton, do the best they can for their employees, because if they don't the employees can create a disaster in service related problems and their guests won't return. But they can not make guarantees they can't keep. And if you think this isn't tough enough, add another layer with union representation and you might as well close the doors. Unions are effective only in market areas where business stays constant, like New York or Las Vegas. Although due to the recession, even these high revenue cities are having problems.

Most people are not used to tipping the maids when they travel, but wait staff is almost universally tipped except in those all inclusive places. Most company's have policies regarding not allowing the employee to "ask" for a gratuity. In some places an automatic gratuity is posted to the bill. Most hotels require the bill to be presented to guest without a tip, and the guest determines the amount depending on how they view their service. No hotel wants any employee asking for a tip. So I can see how the Sheraton won't allow it. It is considered grounds for termination, but usually is only enforced after several violations. No hotel wants to get a reputation for hounding guests for "tips". I am not up to date on Mexico's rules of taxation on earnings or other employment issues, but I would think they are similar to the US.

Whenever I travel to Mexico and Cabo especially, I stay in locally owned and run hotels and always tip if it is not added to the bill. I always leave something for the maid at the end of the stay, regardless of the billing because I know that it's one of the hardest jobs in the industry. (If anyone disputes that, then they have never tried it and I challenge you to attempt it). Additionally, I usually eat and drink in local businesses and always tip accordingly.

Tourism brings huge dollars and employment to Los Cabos and quite a number of hard working Mexican's work in the industry and provide a good life for themselves and their families. No their economy is not what the US's is, but barring the recession, it creates enough economy to support all those resorts in and around Cabo, quite a number of which are locally owned. Right now, Los Cabos is just getting by, just like most of America is due to the insane inablility of our political leaders to solve problems. So if you care about the Mexican workers, go local and tip well. I guarantee they need it and appreciate it.

Wingnut - 10-31-2011 at 01:21 PM

Jakecard, I must have misread his comment, but even so, the $5.60 per day earnings are a factor of Mexico's economy and their government. If they don't value their citizen's livelihood then you can not expect the businesses to do so. All I am saying is that there is probably more issues with the overall business that caused them to do Contracts versus hiring employees with benefits. No matter whether they offer benefits or not, if Mexico requires a "retirement or social security tax", using contracts could be voiding that requirement and I doubt that Mexico would let it go on very long. Even US companies in business must follow Mexico rules. So if Contracts were being used, I doubt that the taxation for social security is being not paid because the government would raise hell. Most likely it's just benefits like medical, vacation and other such costs. You can't get away from paying taxes. If the Mexican's social security is optional, then they wouldn't pay it, but I know it is required of any business and even if they use Contracts, they still have to pay the tax.

jakecard - 10-31-2011 at 01:43 PM

Wingnut wrote: "If they don't value their citizen's livelihood then you can not expect the businesses to do so."

Why not?

Jake

Wingnut - 10-31-2011 at 01:48 PM

Jakecard, because that would be living in Utopia. While businesses have to compete in the same marketplace, they would soon go out of business if they did not stay comparable and then who would help the poor worker? Come on, socialism and communism are lost causes. Nice if they would work, but they are not feasible unless freedoms are lost. Take your pick.

Bajahowodd - 10-31-2011 at 04:22 PM

Methinks Wingnut spends way too much time watching Fox News.

"Whenever I travel to Mexico and Cabo especially, I stay in locally owned and run hotels"

And, where might they be?? My experience over three decades is that in the Los Cabos area, you can stay at a multi-national corporation owned hotel or one that may be owned by an Ex-pat, who is not Mexican.

All this said, I have to go back to my post that when resort operators get away with charging anywhere from $150 to $1,000 per night, it is reprehensible that they would screw their workers by using short term contracts. Dignity, for God sake. At least allow these folks to feel that they are part of a team, as opposed to worrying every four weeks if they will be terminated. It's a bullying technique that also allows these resort operators to shirk their social responsibility.

shari - 10-31-2011 at 05:20 PM

Quote:

Originally posted by Phil S
And I haven't forgotten that this is a Catholic religion country) But aren't we still living in 'modern times' versus the older days when you would have as many children as you could afford. I'm hoping the 'modern today generation Mexican uses some restraint is consciously striving to 'hold down the population' of their country.

The old custom of having lots of kids is changing today in Mexico as families can no longer afford to feed,clothe and school lots of kids...before they didnt have to pay for much and now they do. I was surprised and pleased at the campaign at hospitals to encourage birth control.

When Sirena had her baby, the doctors were strongly suggesting and convincing the new moms to allow the doctor to insert a little tube in the new mother's arms containing birth control for up to 3 years...great idea I thought. We saw a few farm worker moms giving birth who were under 20 years old and already had 3 little kids.

the practise of hiring and firing workers in a short term, or hiring contract workers is very common here too so they dont have to pay any health insurance and other benefits...sad but true.