Workers call for employment retention amid reported Sofitel 'rehab,' hotel reiterates closure

MANILA, Philippines — Workers of Sofitel Philippine Plaza Manila on Monday called on holding company Philippine Plaza Holdings Inc. (PPHI) to retain their employment after the reported “rehabilitation” of the 51-year-old hotel.

In a press conference on Monday, the National Union of Workers in Hotel, Restaurant & Allied Industries (NUWHRAIN) appealed to the PPHI to honor the collective bargaining agreement and to acknowledge the unionization of the hotel’s workers.

“Gusto po namin-- gusto ng mga manggagawa sa Sofitel po ay wala po sanang termination. Dapat po continuous ang employment without [the] loss of seniority rights and benefits under the collective bargaining agreement…Willing po kami maghintay 'pag nagbukas 'po yung Sofitel ulit. Willing po kami maghintay,” Nestor Cabada, NUWHRAIN president for Rank&File said in a the press conference.

(What we want-- what the workers at Sofitel want, is no termination. Employment should be continuous without [the] loss of seniority rights and benefits under the collective bargaining agreement. We are willing to wait until Sofitel reopens. We are willing to wait.)

“Lahat po ng benepisyo 'pag nagbalik po kami ay ibibigay at saka po ay i-acknowledge nila na 'yung mga workers ay unionized at may union existing. 'Yun lamang po, napakaliit po ng aming hinihingi,” he added.

(All the benefits will be provided when we return, and they should acknowledge that the workers are unionized and that a union exists. That is all we ask for, which is a very small request.)

On May 10, Sofitel announced that it would close and cease operations on July 1, 2024. Its last day of operations will be on June 30, 2024.

Despite the union’s claim that Sofitel will be rehabilitated starting July 1, PPHI President Esteban Peña Sy clarified that the said hotel will not be rehabilitated but instead will close permanently.

“The speculation that the hotel will not cease operations on July 1 but will just undergo some renovations is totally wrong. The owners of the hotel are responsible investors, and they consider human life to be the number one concern,” Sy said in a Viber message to Philstar.com.

“Since it is the advice of experts that the 50-year-old hotel is not safe for its guests and employees, the owners have made the painful decision to close it down, even though the hotel is having its historical best business performance in its 48 years of operation since last year,” he added.

Sy also said that there is no certainty about the future of the hotel.

“Since we do not own the land on which Sofitel Philippine Plaza is located, we are uncertain of the future of the hotel. We cannot make any commitment on something that we are not sure or we are not in control,” Sy said.

The land occupied by the hotel is owned by the state-run Government Service Insurance System (GSIS). 

On June 14, 2023, the GSIS and Sofitel amended its contract of lease which is said to be valid until June 26, 2041.

NUWHRAIN also claimed that there has been a “union–busting” by Sofitel’s management which has been denied by Sy.

He denied that they are firing union members and emphasized that the hotel would close and cease its operations due to “safety concerns.”

“The painful decision was made after getting advices from independent and internationally recognized safety consultant firms, and the Occupational Safety and Health Center of the Department of Labor and Employment,” Sy said.

“We are offering separation packages to ALL employees of the hotel, whether they are union members or non-unionized staff,” he added.