Leofoo files notice for mass layoff at Westin Taipei

By Crystal Hsu  /  Staff reporter

Fri, Nov 02, 2018 - Page 12

Westin Taipei (台北威斯汀六福皇宮), the flagship property of Leofoo Tourism Group (六福旅遊集團) that is due to cease operations next month, yesterday said it has filed a mass layoff notice for 303 employees.

The hotel on Wednesday filed the notice with labor authorities, detailing its severance and compensation plans, as its lease with Cathay Life Insurance Co (國泰人壽) is to expire on Dec. 31.

The two sides decided to terminate the contract after Leofoo rejected rent increases, Leofoo chairwoman Lulu Chuang (莊豐如) said in April.

The company is to offer severance pay to Westin employees who are unable to find new positions in the group, in compliance with labor protection rules, the hotel said, adding that it would issue pension payments for employees who are qualified to retire.

The hotel is helping employees transfer to other facilities under the same brand or provide referrals for them to work at other hotels, it said.

The group would give those employees priority considerations when it finds a new site for Westin Taipei, it said.

The effort has produced little progress with rents for commercial space rising, Chuang said earlier.

The company is to distribute year-end bonuses for employees who would work until the last day, it said.

The upscale facility on Taipei’s Nanjing E Road generated nearly 40 percent of the group’s revenue last year, but has been unable to turn a profit due to sharp competition and a heavy cost burden.