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A flood of hotel industry redundancies By Milena Radoman

The SBM, the Fairmont, the Novotel: redundancies in the hospitality industry are multiplying.

227 voluntary departures and four forced social peace, management has decided not limit forced departures thanks to the extension of
redundancies: this is the final verdict of the to touch collective agreements. Hailed by the furlough, which allows us to have a more serene
redundancy scheme initiated by the Société authorities, the plan was also endorsed by the vision for the coming months, which seem very
des Bains de Mer (SBM) in October 2020. This unions. “It’s a great relief for everyone (…) The complicated,” Pierre-Louis Renou, CEO of the
restructuring was a first in the history of the contract is perfectly fulfilled,” commented Mikaël Fairmont Monte-Carlo told Monaco Info.
historic flagship of the Monégasque economy, Palmaro to the media, General Secretary of the
dating from 1863. It generated a social upheaval, Monégasque Union of Managers and Employees The unions are worried about the proliferation
relayed and publicised by the many associated of Monte-Carlo SBM. of redundancy plans in the hotel industry. The
demonstrations. It must be said that, originally, next establishment concerned is the Novotel,
the board of directors had left, in addition The Fairmont and Novotel also concerned where 13 to 14 positions are said to be affected.
to voluntary departures for employees aged 2020 was a dark year for the hotel industry “It is abnormal that companies receiving
over 57, out of 161 forced redundancies and but the 2021 financial year is also looking state support should implement social plan
renegotiations of collective agreements to save particularly difficult. “We are on the front line of measures. In this case, the government should
the company €25 million per year. In the end, as this international economic disaster, probably be entitled to claim back the money it gave to
Deputy SBM Chairman, Jean-Luc Biamonti, told the most affected sector in the world,” analyses save jobs,” the Monaco Union of Trade Unions
Monaco-Matin: “We have a lot more voluntary Jean-Luc Biamonti. The SBM is not the only one told Monaco-Matin. As part of the extension of
retirements than we estimated: 43% in the to initiate a redundancy plan to reduce its costs furlough until the end of June 2021, it is thus
hotel industry; 29% in gaming; and 28% in head and get through the crisis. In January, the four-star required that “in the event of the triggering of
offices and artistic direction.” The redundancy hotel managed by Accor, the Fairmont, announced a redundancy plan, the employer will suffer
plan represents a cost of €25 million for the a voluntary departure plan for 72 employees a penalty of 10% of remaining expenses (…).
company of 4,000 employees in 2021. This does out of the hotel’s 411 staff. The management Companies having made staff redundant or
not include the culling which has taken place of the establishment, one of the largest in the which recruit non-permanent staff (temporary
for temporary workers and those on short-term Principality with more than 600 rooms, finally workers or on short-term CDDs) will not be able
CDD contracts. The resulting savings are less approved the suppression of 53 positions out to obtain the benefit of furlough if the new recruit
important than expected (€18.5 million per of 411, including 47 voluntary departures, in the or permanent staff member is replacing similar
year instead of €25 million) but to preserve wake of the SBM’s measures.* “We were able to functions to those on furlough.”
*At the time of going to press, reclassification and support solutions were being studied.

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