"It's time the hotel industry lifted wages across the board," says Unite hotel organiser Daphna Whitmore.

Speaking at the annual hotel industry conference in May, she proposed that the large hotel chains agree to raise the wages above the minimum.

"If the major hotels signed up to a code to lift the rates it would prevent the sort of competition among hotels that has driven down wages," she said.

She was speaking as part of a panel on the problem of recruiting and retaining staff in the hospitality industry.

The panel included Peter Gee, general manager of Stamford Plaza hotel; Paul Richardson, vice president of Accor hotel and Andrew Shaw an employment lawyer from Lane Neave.

Several hundred people attended the conference, including hotel managers, academics, tourism industry staff and human resources managers.

Whitmore told the conference the key concerns of hotel workers were the low pay rates and the insecure hours.

"Unites success in ending youth rates and raising wages in the fast food sector means 16 year-olds in their first job earn above the minimum once they get some experience," she said.

Some hotels now pay less than KFC, Pizza Hutt and Starbucks. Hotels will need to pay start rates above the minimum to make the industry more attractive to job seekers.