HONTIVEROS CALLS FOR PROBE INTO LABOR IMPACT OF SOFITEL CLOSURE

Senator Risa Hontiveros is calling for an investigation into the labor policy implications arising from the impending closure of Sofitel Philippine Plaza, one of the country's most iconic hotels, set to cease operations on July 1, 2024.

Proposed Senate Resolution No. 1059 highlights the significance of conducting a Senate investigation to uphold labor laws and safeguard the rights of the workers involved. The inquiry aims to investigate the closure's legitimacy, the treatment of employees, and the potential impact on labor policies in the hospitality sector.

"The 1987 Philippine Constitution guarantees full protection to labor and the promotion of full employment and equality of employment opportunities. The permanent closure of Sofitel will affect its 500 employees, some of whom have already faced termination," the Resolution stated.

According to recent reports, Philippine Plaza Holdings Inc. (PPHI), the owner of the hotel currently managed by Accor S.A., had requested a 25-year extension of its lease from the Government Service Insurance System (GSIS).

However, on May 10, 2024, the hotel announced that it was closing down permanently, despite brisk business, citing risks flagged by safety auditors involving the age of the building as well as existing structural defects.

"The impending closure of Sofitel Philippine Plaza has raised significant concerns among its employees and their representatives. We call for greater transparency from PPHI and demand answers regarding the true reasons behind this decision."

To address growing concerns, the Department of Labor and Employment (DOLE), led by Secretary Bienvenido Laguesma, has already initiated hearings through the National Conciliation and Mediation Board (NCMB) to determine the nature of the closure and its implications for the hotel's workforce.

National Union of Workers in Hotel and Restaurant and Allied Industries (NUWHRAIN) SENTRO, representing two Sofitel union chapters, alongside the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco, and Allied Workers' Associations (IUF), has demanded greater transparency from PPHI.

They alleged the closure is a pretext to undermine union activities and questioned the legitimacy of the closure, citing inconsistencies between the hotel's stated safety concerns and its ongoing operations.

"We must listen to the employees' legitimate concerns. Hindi ito pwedeng isawalang-bahala lang," Hontiveros said.

"The closure of Sofitel Philippine Plaza is not just a business decision; it has far-reaching consequences for the lives of hundreds of employees and their families. We must ensure that the existing laws and policies are able to protect the rights and welfare of workers," she concluded.

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Note: Senate Resolution attached