Hotel Miramar ceasing operations at end of October; 108 employees to be laid off

SINGAPORE: Hotel Miramar Singapore will cease business operations at the end of October, it was announced on Friday (Aug 29), a move that would see 108 employees laid off.

"This difficult decision was made after careful and comprehensive evaluation of the hotel's long-term business outlook," the hotel and the Food, Drinks and Allied Workers Union (FDAWU) said in a joint statement.

In making the decision to cease operations, the hotel had engaged early with the union and demonstrated "exceptional responsibility and commitment to supporting affected employees and ensuring they are treated with fairness, dignity, and respect", added both parties.

They said that the hotel would provide fair retrenchment packages in line with the collective agreement and unionised norms.

The retrenchment package will also be extended to employees under the re-employment scheme, with additional payouts provided to recognise long-serving employees.

"It has also agreed with the union to provide ex-gratia payment to employees with less than two years of service," said the statement.

The union said it is working closely with the hotel to support affected employees in securing new job opportunities.

These include connecting them to the labour movement's network, such as NTUC's Employment and Employability Institute (e2i). Affected employees who are Singaporeans or permanent residents can tap on e2i’s job matching services, career coaching and skills upgrading advisory.

Hotel Miramar Singapore managing director Ken Lim said: "We are especially thankful for our long-serving colleagues, many of whom have devoted decades of their lives to the hotel, with some serving for as long as 55 years.

"These individuals form the very backbone of Hotel Miramar Singapore, and we are deeply appreciative of their service and unwavering loyalty.

"In this context, we have worked closely with the FDAWU in a spirit of partnership, ensuring that the interests and well-being of our employees remain central in every move we make."

According to website Roots.gov.sg, the hotel along Havelock Road was opened in 1971. It was one of the many properties established around the outlying city area during the hotel construction boom of the late 1960s and 1970s.

FDAWU general secretary Sankaradass S Chami said: "The union is sad that Hotel Miramar Singapore, one of our nation’s hospitality icons that has provided good jobs for many Singaporeans over the years, is ceasing operations.

"We are thankful that even at this hour, the management has gone above and beyond its collective agreement to support impacted employees, working closely with FDAWU to ensure that workers’ welfare is of utmost priority.

"In a time of economic uncertainty, the management has shown industry leadership, empathy, and exemplary conduct. This collaborative approach reflects the value of a strong labour-management relationship."

CNA has contacted Hotel Miramar for more information, including plans for the hotel site after the closure and how it will assist affected guests.