A DAY after the Sofitel Philippine Plaza Manila shut down, its management and the workers finally settled their weeks-long labor dispute, coming to terms before the Department of Labor and Employment (DOLE).
In a three-page Settlement Agreement dated July 2, the Philippine Plaza Holdings Inc., which represents management, and the National Union of Workers in Hotel, Restaurant, and Allied Industries (NUWHRAIN), which represent the workers, announced the terms and conditions that effectively ended the labor dispute.
“In the interest of industrial peace, the parties herein, NUWHRAIN-Philippine Plaza Chapter (Rank-and-File Union), Philippine Plaza Supervisor’s Chapter (Supervisory Union), and Philippine Plaza Holdings, Inc. (the Hotel) agreed to the following terms and conditions for the settlement of the instant labor dispute,” said the parties, including the DOLE.
“In view of the foregoing agreement, the Notices of Strike are settled and conciliation proceedings terminated,” they added.
Last July 1, Sofitel Philippine Plaza Manila closed its doors after more than four decades of operation in Pasay City.
The workers union, however, have insisted that Sofitel was not ceasing operations but was merely undergoing rehabilitation and renovation.
Under the Settlement Agreement, employees who shall accept the separation package shall be entitled to an adjustment in basic salary; separation pay computed at 100 percent to 115 percent of adjusted basic monthly salary per year of service; appreciation bonus of P10,000 per covered employee; and payment of the separation package and accrued benefits not later than July 10, 2024.
For those who will not accept the separation package, the agreement provides that the employment relationship shall be deemed suspended for the duration of the closure with the “no work, no pay” principle in effect.
And if the hotel re-opens under the same company, the pact states that the management should inform the workers who did not accept the separation package of the re-opening of the hotel within 15 days prior to the scheduled date of the re-opening, with the employment relationship immediately resuming.
As to the representation status of the two unions in case of the reopening of the hotel under the same company, the deal states that they will continue to be recognized and that their separate bargaining units shall be maintained.
For its part, the DOLE assured that it will closely monitor compliance with the terms and conditions of the settlement agreement.
An estimated 1,000 workers have been affected by the closure of Sofitel.
