Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Fairmont Hotels and Resorts, a group that operates in the hotel and tourism sector, has announced that it has closed its subsidiary the Savoy Hotel in Westminster in London with the loss of approximately 500 jobs. The closure of the hotel and the job losses took effect from 15th December 2007. The hotel will close for an approximate period of sixteen months between December 2007 and April 2008 whilst it undergoes a refurbishment, yet the 500 employees working at the site have been subject to redundancy procedures and will have to re-apply for their positions when the hotel re-opens. UK Trade Unions have criticized the decision of the hotel management to make staff re-apply for their positions. Raj Gill, an official of the GMB union, stated that the decision of the hotel failed to recognize the loyalty and experience of its workers and was disrespectful to them. Mr. Gill also added that many of the affected workers may potentially find it hard to find alternative work.
Kiaran McDonald, the hotel's general manager, stated that the long length of the refurbishment of the hotel meant that staff would have to be reassessed when the hotel re-opens in 2009. He also stated that the hotel had tried to find jobs for the 500 employees affected by the closure, and that in 97 per cent of cases this had been successful.
Eurofound (2007), Savoy Hotel, Closure in United Kingdom, factsheet number 66136, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/66136.