Some employees who were given notices to be retained on Aug. 11 were notified on Sept. 3 about the termination of their employment in 60 days, or on Nov. 3.
Last month, the hotel issued notices to about 70 of its employees whose employment contracts will expire on Oct. 4.
Palms Resort Saipan told the employees who were given 60-day notices on Sept. 3 that although the hotel initially sought to retain the services of about 50 employees after the closure of the hotel, its financial condition leaves it no choice but to terminate more employees.
“Since the announcement last month, the hotel management has tried to sustain operations and occupancy expectancy levels, but after all cost-cutting measures have been considered and implemented, the Palms Resort has suffered additional negative financial consequences with a substantial number of cancellations of reservations through Oct. 4,” the management stated.
Palms Resort said it is simply unable to retain the number of staff needed for maintenance and operations including engineering through Oct. 10 and beyond the planned 18-month renovation period.
Palms Resort said the second batch of termination has been “an unfortunate business necessity due to the economic and financial losses the hotel has suffered.”
Palms Resort assured the employees that it will help them find alternative employment, set up information forums to address questions on health care continuation, relocation, résumé writing and other concerns.
Some of the employees said they should not have been given “false hopes.”
“They gave us notices on Aug. 11 that we will be retained throughout the renovation period, but less than a month after, we are now suffering the same fate as the 70 of our co-employees who were given notices earlier,” said an employee who spoke on condition of anonymity.
Formerly known as Hotel Nikko, the Palms Resort Saipan is a 14-story hotel with 313 rooms which the United Micronesia Development Association acquired in Feb. 2008.
