MANILA, Philippines – Even though the retrenched workers of the closed five-star hotel Sofitel Philippine Plaza won in their fight for job security, most of them ended up accepting severance pay because of the need to provide for their families. According to a statement released on Thursday, August 15, from Solidarity Center Philippines, a non-profit organization supporting the unions of Sofitel, most union members have already accepted severance pay “due to intrusive pressure from management and their families’ financial needs.” Philippine Plaza Holdings Inc.
President Esteban Peña Sy said that 80% of its employees have already availed of the separation package as of Friday, August 16. The hotel closed on July 1, with management pointing to safety concerns in the decades-old building as the reason. Hotel structures like elevators, escalators, boilers, and transformers were beyond repair, and there were several incidents of small fires and gas leak.
In the weeks leading up to the closure, the two Sofitel unions demanded management to let them retain their employment and unions, as it appeared to them that the hotel would eventually reopen after renovations. Sofitel filed for permanent closure, but still eventually gave in to the workers’ demands in a settlement on July 2 – that workers who did not accept the separation package could come back to their jobs in the event the hotel reopens. In a Friday call with Rappler, Peña Sy said that he “cannot understand” the accusation from the unions that management was pressuring them to take the separation pay.
He said that the separation package was better than what was provided in both the Labor Code and their collective bargaining agreement (CBA). “The union leaders..
. are the ones who are pressuring their members not to accept our offer even though they would like it,” he said. Prior to closure, the hotel management held job fairs for their workers at the hotel.
Peña Sy said more than 300 establishments, such as hotels, restaurant chains, and corporate giants like Filinvest and SM sent representatives looking to hire the more than 1,000 retrenched workers. He also said many were hired on the spot. Sofitel management also tapped Go Negosyo and Department of Trade and Industry specialists to guide employees who were interested in becoming entrepreneurs, or wanted to be more competitive in applying for new jobs.
“We considered [the job fairs to be] very good for our employees who will be leaving us, and with the promise that in case we have a chance to reopen the hotel, all these employees will be given the first priority to be rehired,” said Peña Sy. But the unions said many did not qualify for the jobs, and some opportunities were “impractical.” The unions said majority of the offers were for contractual positions, with few managerial jobs.
Sofitel has two unions – one for rank-and-file workers, and another for supervisors under the National Union of Workers in Hotels, Restaurants and Allied Industries (NUWHRAIN). “Many workers are unqualified for these positions, and job opportunities outside Metro Manila are impractical,” said Benster Moleno, education and communications officer of the NUWHRAIN-Philippine Plaza Chapter (PPC). Solidarity Center Philippines said the union is exploring livelihood programs for its members while they look for other jobs.
Despite minority left behind, the unions continue their call for job security. “Our victory is in securing the future of the union. We were able to ensure the return of the remaining union members once the hotel reopens, and our negotiations for a new collective bargaining agreement will continue,” said Marco Jalandoni, NUWHRAIN secretary general.
NUWHRAIN-PPC president Nestor Cadaba added that the most difficult part of the current situation is figuring out how the union will survive until the hotel reopens. “But as we always say: even if there is only one of us standing, the union will remain and continue the fight. We will leave no one behind,” said Cadaba.
Sofitel’s uncertain future Peña Sy said that there was still no final decision on the possibility of reopening the iconic luxury hotel. The management’s consultants estimated a whopping $150 million (₱8.56 billion) to rehabilitate the hotel.
And even if investors were willing to shell out the amount, it would still take a few years for the hotel to bounce back to peak business. The land where Sofitel stands is leased from the Government Service Insurance System, with 17 years remaining in its contract with Philippine Plaza Holdings Inc. “Suppose we need four years to rehabilitate the hotel.
Then, the remaining time for operation will be 13 years...
[Then] you need a long time to regain the popularity, the business. Our general manager estimated that when you reopen the hotel, it may take four to five years before you can go back to the old days. There will be no more time for the owners to recover from their investments of such a huge amount,” he said.
“So it’s an uncertain future. We don’t know,” he added. Peña Sy also said that the hotel was looking to auction off its furniture by mid-October.
– Rappler.com $1 = ₱57.036.
