The Peo and Sek trade unions representing workers in the hospitality industry, issued a joint statement today requesting the intervention of the Labour Minister regarding the mass layoffs at the City of Dreams Mediterranean resort in Limassol.
A total of 181 employees at the integrated casino resort in Limassol have been made redundant, the operator Melco confirmed this week.
In their announcement, the unions said, “We demand the immediate intervention of Minister of Labour, Mr Yiannis Panayiotou, who had committed on the day of the casino-resort’s inauguration to make efforts to resolve the issue.”
Last July, coinciding with the resort’s opening, trade unions held a protest outside City of Dreams Mediterranean accusing the company of not allowing syndicalists to access its workplaces.
Now, highlighting what they describe as a “new wave of massive layoffs of workers at the casino resort in Limassol,” the unions voiced their concerns about the “insecure work environment” within the establishment.
“The unions have been overwhelmed by workers’ complaints from both dismissed workers and workers who continue to work in insecure conditions as they do not know if the next day someone will knock on their door to serve them with a termination letter. Unfortunately, the absence of trade union protection leaves workers vulnerable and unprotected,” Sek and Peo said.
The unions also raised concerns about “the exploitation of workers” “and “the restriction of access to trade unionists” on the resort’s grounds, asserting that these issues are adversely affecting all employees. The resulting climate includes “job insecurity, workplace anxiety, intimidation, and the denial of fundamental freedoms, such as access to unrestricted access to labour information, as well as the threat of dismissal,” they said.
In conclusion, the unions affirmed their support for the dismissed employees and pledged to offer individual assistance as needed.
The company’s response
Melco recently issued a statement addressing the challenges City of Dreams Mediterranean faces, citing the ongoing conflict in Israel and Gaza as the cause.
It said that its business activities have been profoundly affected, with a substantial reduction in hotel occupancy and a decline in international visitors to the casino.
In the statement, the company explained, “The unforeseen and prolonged conflict in Israel has created significant challenges that have had a substantial impact on our business operations. Both hotel occupancy and casino visitation by foreign citizens have drastically decreased, forcing the company to make difficult decisions to restructure its operating costs to ensure its long-term sustainability.”
According to Melco, 130 staff members were made redundant and 51 employees on probation did not have their contracts extended.
“We deeply regret the adverse effects this will have on 130 employees, whose employment has been terminated as surplus, and 51 employees who were employed on a trial basis. We are committed to providing them with all possible support during this transitional period,” the company said.
Melco added that the rationale for the selection of individuals for termination was based on the principle of ending the employment of personnel who were most recently hired, in compliance with Cypriot labour laws.
The company noted that beyond its legal requirements, it would “offer impacted colleagues additional ex-gratia packages which are beyond the legal minimum and above industry practices.”
Furthermore, Melco said that it is in contact with other local and international companies to secure new jobs for the affected employees.
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