The Philippine Amusement and Gaming Corporation (PAGCOR) has encountered obstacles in its bid to lay off 665 workers from New Coast Hotel Manila amid the transfer of casino operations to the hotel’s owner. The Governance Commission for Government-Owned or Controlled Corporations (GCG) has intervened to temporarily halt the layoffs, citing the absence of an approved redundancy plan.
Regulatory Challenge and Workforce Impact:
PAGCOR’s move to privatize its self-run casinos has raised concerns over workforce implications. The attempt to lay off employees at New Coast Hotel Manila has been met with resistance, highlighting the complexities involved in transitioning casino operations to private entities.
Town Hall Meeting Fallout:
The affected workers were informed of the impending layoffs during a town hall meeting led by PAGCOR Chairman and CEO Alejandro Tengco in December. This communication sparked uncertainties among employees, with some reportedly receiving severance pay in anticipation of the workforce reduction.
Intervention by GCG:
The Governance Commission for Government-Owned or Controlled Corporations has intervened, asserting that the redundancy plan proposed by PAGCOR has not received approval. This intervention serves as a temporary reprieve for the employees, emphasizing the need for a comprehensive and approved plan before any layoffs can proceed.
Collaboration with International Entertainment Corp (IEC):
PAGCOR’s collaboration with Hong Kong-listed IEC, the owner of New Coast Hotel Manila, adds a layer of complexity to the situation. The fate of the affected employees remains uncertain, as it is unclear whether IEC plans to re-employ them or implement its own workforce strategy.
Future of New Coast Hotel Manila’s Casino Operations:
With IEC expressing plans to take full control of the casino operations and develop an integrated resort, the future of New Coast Hotel Manila’s gaming landscape remains in flux. The ongoing negotiations and regulatory scrutiny underscore the intricate nature of privatizing casino operations in the Philippines.
Senator Raffy Tulfo’s Insight:
Senator Raffy Tulfo has shed light on the regulatory process, emphasizing that any layoffs require approval from the GCG. Tulfo’s statement serves as a reminder that adherence to regulatory procedures is crucial in navigating the privatization process without infringing on the rights of affected workers.
PAGCOR’s Privatization Timeline:
PAGCOR Chairman and CEO Alejandro Tengco’s goal of completing the privatization of all 41 self-run casinos by 2028 reflects the broader strategy of restructuring the gaming industry in the Philippines. The New Coast Hotel Manila case serves as a litmus test for PAGCOR’s ability to execute this ambitious privatization plan.
The developments surrounding the attempted layoffs at New Coast Hotel Manila underscore the challenges and intricacies associated with PAGCOR’s broader objective of privatizing its self-run casinos. Regulatory interventions, negotiations with private entities, and the uncertain fate of affected employees create a complex landscape that demands careful consideration and adherence to established procedures. As the Philippines moves towards a restructured gaming industry, the New Coast Hotel Manila case serves as a microcosm of the hurdles and opportunities inherent in such a transformative process.