CEBU, Philippines — At least 300 workers stand to lose their jobs as Big Hotel is closing its operations to comply with the closure order earlier issued by the Mandaue City government.
The president of Cenore Corporation, Roderick Ngo, said the company decided to shut down the operations of Big Hotel three months from yesterday.
"You've probably waited to see the day that Cenore will 'throw in the towel' and the many employees and their families will troop to your fold to beg for jobs to feed their children," Ngo wrote in a letter addressed to Mayor Luigi Quisumbing.
Ngo said the members of the board of Cenore Corporation have nothing to discuss on the new terms demanded by the city government of its lease contract for the lot where Big Hotel stands.
"After yesterday's (March 7) board meeting, Cenore has decided instead that it will direct the hotel management operator Travelbee Management Corporation to close the operations of Big Hotel effective three months from today," said Ngo.
P3M Daily Losses
According to Ngo, the hotel management had been bleeding at least P3 million every day since the city government served the notice last week.
"On the business sense, Cenore believes that the bleeding from Travelbee's hotel operations of Big Hotel has to be stopped, taking into account the cancellations of hotel bookings, programs and events, and recorded daily loss of P3,000,000 caused by the Notice of Closure and the news about hotel closure," he said.
He explained that it would take three months before the complete shutdown because of certain legal processes that the management needs to comply under the law. Under the Labor Code, the management is obligated to give a 30-day notice to its employees.
The hotel also needs time to prepare the separation pay of the workers as well as the payment of supplies, utilities and other payables.
Despite the company’s decision, Ngo insisted that their lease contract of the lot is legal and valid.
"This is not an easy decision for the business of Cenore... This is how we put the business equation on the underlying dispute that our business has been sadly dragged," he said.
"It is both legally binding and morally upright that Cenore will defend this matter when the day comes that this will rest in the appropriate forum," he added.
The corporation subleased the property from Katumanan Hardware which has original lease contract with the city government during the administration of then mayor Jonas Cortes.
The present city administration has questioned the agreement because it did not have the authority from the City Council.
Surprised
Lawyer Elaine Bathan, Quisumbing’s chief of staff, said they were surprised by the decision of Cenore Corporation to shut down Big Hotel operations and to end its use of the lot.
"While our aim was to correct the illegal deed of assignment as mandated by the Commission on Audit, Cenore has chosen to disregard it. Nonetheless, we respect their decision," said Bathan.
She said the city will now repossess the lot and the warehouse and extend whatever assistance to the hotel for a smooth turnover.
"We remain grateful to other business establishments of the city who follow the rule of law and are not swayed by unscrupulous businessmen and politicians," Bathan added. — FPL (FREEMAN)