Senator Risa Hontiveros on Friday sought for a Senate investigation on the impending closure of the Sofitel Philippine Plaza Hotel in Pasay City, which will affect 500 employees.
The iconic hotel will stop its operations on July 1, 2024.
In her proposed Senate Resolution No. 1059, Hontiveros said the closure has raised significant concerns among its employees and their representatives.
“We call for greater transparency from Philippine Plaza Holdings Inc. (PPHI), and demand answers regarding the true reasons behind this decision,” she said.
The senator cited recent reports saying that PPHI, the owner of the hotel currently managed by French multinational hospitality company 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.
It mentioned the risks flagged by safety auditors involving the age of the building as well as existing structural defects.
But the senator insisted that the closure of Sofitel Philippine Plaza is not just a business decision because 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 said.
Due to these concerns, she said the Senate intends to investigate the legitimacy of the closure, the treatment of employees in light of this development, and its potential impact on labor policies in the hospitality sector.
The probe will look into the upholding of labor laws and safeguarding the rights of the workers involved.
Earlier, the Department of Labor and Employment (DOLE) led by Secretary Bienvenido Laguesma had 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 this decision, citing inconsistencies between the hotel’s stated safety concerns and its ongoing operations.
