MANILA: The management and the labor unions of the Sofitel Philippine Plaza Hotel in Pasay City have agreed to settle their labor dispute after the closure of the establishment amid safety concerns, the Department of Labor and Employment (DOLE) said on Wednesday.
In a news release, the DOLE said the National Union of Workers in Hotel, Restaurant and Allied Industries (NUWHRAIN) – Philippine Plaza Chapter (rank-and-file Union), Philippine Plaza Supervisor’s Chapter (supervisory workers’ union) and the Philippine Plaza Holdings, Inc. (management) signed a two-page settlement agreement at the agency’s main office in Intramuros, Manila on Tuesday.
Under the agreement, the parties have agreed on separation packages for those regular employees who will avail of the separation packages, as well as for those who choose to stay in the country and wait for its reopening.
For workers (rank-and-file) who signify acceptance of the separation package not later than July 5, a separation package under the following terms
and conditions will be given – an increase of PHP1,000 in the monthly salary effective Jan. 1, 2023 to Dec. 31, 2023 and an additional PHP1,000 increase effective Jan. 1, 2024 to June 30, 2024.
As for the supervisory employees, the separation package includes an increase of PHP1,000 in the monthly salary effective July 1, 2022 to June 30, 2023 and an additional PHP1,000 increase effective July 1, 2023 to June 30, 2024.
The agreement also provided for a ‘separation pay computed at 100 percent to 115 percent of adjusted basic monthly salary per year of service; appreciation bonus of PHP10,000 per covered employee; and payment of the separation package and accrued benefits not later than July 10, 2024.”
On the other hand, for employees who did not accept the separation package, the employment relationship shall be deemed suspended for the duration of the closure of the establishment.
The ‘no work, no pay’ principle will apply to these employees and their benefits shall likewise be suspended.
However, the ho
tel’s two employee unions shall continue to exist.
The agreement also stated that if the hotel re-opens under the same company, the management shall inform the workers who did not accept the separation package of the re-opening of the hotel within 15 days before the scheduled date of the re-opening.
‘Within 15 days from actual re-opening, the employees concerned may report to work, and the Hotel shall accept them back, under the same terms and conditions in the applicable CBA (collective bargaining agreement). Thereupon, the employment relationship shall resume,’ it said.
As for the representation status of the two unions in case of the hotel’s re-opening under the same company, the rank-and-file union will be recognized as the bargaining agent and administrator of the remaining part of the CBA.
The rank-and-file union’s CBA will expire on Dec. 31, 2024.
‘If the re-opening takes place within the freedom period or thereafter, the parties shall commence negotiations, unless the representation status of the
union is questioned by another union. If the re-opening takes place after Dec. 31, 2024, the union and the Hotel shall commence negotiations in accordance with the Labor Code,’ the settlement added.
A freedom period refers to the last 60 days of a CBA. During this period, both employers and labor unions have the option to serve a notice for terminating or amending the existing CBA.
As for supervisory employees whose CBA expired on June 30, 2022, the supervisory union shall be recognized and the negotiation for a new CBA may commence, based on the Labor Code.
The DOLE and National Conciliation and Mediation Board (NCMB) will closely monitor the compliance with the terms and conditions of this settlement agreement.
‘In view of the foregoing agreement, the Notices of Strike are settled and conciliation proceedings terminated,’ the agreement said.
Source: Philippines News Agency