A move by Philippines gaming regulator PAGCOR to lay off 665 workers from New Coast Hotel Manila when it hands over control of casino operations to the hotel’s owner has been blocked.
According to local media outlet the Inquirer, the Governance Commission for Government-Owned or Controlled Corporations (GCG) has stepped in to temporarily prevent any layoffs because their redundancy plan has not yet been approved.
As previously reported by IAG, the affected workers were informed of the layoffs during a town hall meeting in December led by PAGCOR Chairman and CEO Alejandro Tengco, with some having already received severance pay in recent days.
It is unclear whether any of the employees will be re-employed by Hong Kong-listed International Entertainment Corp (IEC), which owns New Coast Hotel Manila and has been working with PAGCOR in recent years with a view to taking full control of the building’s casino. IEC has also announced plans to develop an integrated resort.
While PAGCOR has warned that layoffs are inevitable as it starts privatizing its self-run casinos, Senator Raffy Tulfo revealed late last week that any such layoffs would require GCG approval and that the GCG has not yet approved the New Coast layoffs. As such, PAGCOR is “prohibited … from firing New Coast employees while their redundancy plan has not been approved. Pending approval of the GCG, PAGCOR may not remove its employees,” Tulfo said.
He added that GCG is currently reviewing PAGCOR’s request and that additional documentation may be required before any such approval is granted.
PAGCOR Chairman and CEO Alejandro Tengco revealed late last year that he wants the Philippines gaming regulator to complete privatization of its 41 self-run casinos by 2028.
RelatedPosts
