Former employees of the Hotel Tower expressed relief and elation as a court last week ordered the payment of over $10 million in wages, salaries and severance owed to them after the hotel abruptly closed last year.
“The Father don’t sleep, so we expected it but didn’t believe it would be so soon. I am happy plus thankful,” a former housekeeper at the now newly sold hotel told Stabroek News.
Attorney Nadia Samuels who represented the former Ministry of Labour in leading a defence for the 19 owed workers, stated that so thankful were the workers that upon the handing down of the decision by Magistrate Dylon Bess, they simultaneously shouted, “Thank You.”
Samuels stated that Hotel Tower Ltd closed its doors in May 2014 without paying its employees termination benefits due to them and the employees complained to the then Ministry of Labour. Charges were filed in October 2014.
The claim was in relation to failure by the Hotel Tower to give notice of termination, pay severance allowance, pay sum in lieu of notice of termination as is required by law and grant leave with pay and pay the entire amount of wages owed, contrary to Section 19 of the Labour Act.
The trial commenced on March 2, this year and continued into June with evidence from the former employees being led in court.
At the close of the prosecution’s case in June, Hotel Tower’s attorney Marcel Bobb made written no-case submissions to the effect that a case was not made out by the prosecution for his client to answer. The Ministry of Labour responded and the court subsequently held in favour of the ministry.
Hotel Tower was called upon to lead a defence but after a few hearings failed to produce any witnesses. As such the ministry made an application for the court to deliver a decision.
It was at this point that the court enquired as to whether the hotel was sold as was carried in media and it was confirmed.
On Monday October 5, 2015, Magistrate Bess gave his decision, finding that the case put forward by the prosecution was unchallenged and that the defendant Hotel Tower Ltd was guilty on each of the charges laid by the former Ministry of Labour.
Magistrate Bess ordered that the hotel be fined accordingly, under the three pieces of legislation, and ordered the hotel to pay the sums of money outlined in all of charges.
The hotel has been granted a stay of execution for three months to pay the amounts owed.
The magistrate’s decision saw also jubilation from Samuels, Minister within the Ministry of Social Protection Simona Broomes, who has responsibility for labour and President of the Clerical and Commercial Workers Union Sherwood Clarke.
Broomes thanked the Labour Department’s staff, especially Samuels, the Deputy Chief Labour Officer. “I think Nadia Samuels has a passion for the Department of Labour and what she is doing. This was her first trial…and I think it’s commendable that it’s a victory for the workers,” Broomes told Stabroek News.
She asked workers countrywide to look at the case as a positive example and one that the ministry promises to build on. She said she was overwhelmed with joy when she saw how the employees’ faces “lit up” when the ruling was made.
“It is something to send a strong signal to employers out there also…,” she said, adding that government will put different measures in place to ensure workers’ rights are not trampled on.
She informed that management of Hotel Tower is still to visit the ministry to state when they will begin payment and how they will pay the monies.
The CCWU President for his part echoed gratitude to the attorney and the Department of Labour.
“We won the case. I feel so delighted. This was a challenge for the union. We were in the forefront fighting and as the President I ensured I was integrally a part and I am happy and we celebrated the victory. It is a message that unions should not give up on their workers. Fight to the end because you will get a just reward,” he stated.
The repossessed hotel was sold a few months ago but it is unclear who the buyer of the hotel is, although Clarke said he understands that the person has a “close alliance” with the previous owners. The owners of the hotel at the time it closed were West Demerara businessman Salim Azeez, US-based businessman James Manbahal, Varendra Shiwratan and Bharti Persaud Misir.
An advertisement in Kaieteur News last month listed the hotel for sale with a Harry & Son Realty as its agent.
Hotel Tower first opened its doors in 1866 on the site of the present Guyana Post Office. In 1910, it was re-sited to its present location under expatriate ownership. In 1946, the property was acquired by a Guyanese/ Barbadian family, the Humphreys, along with 50 other shareholders and re-named Hotel Tower Ltd. Though the next 50 years comprised troughs and peaks, the hotel’s ideal downtown location made it attractive to its guests.
In 1966, on the occasion of the hotel’s Golden Anniversary, a commemorative stamp was struck in its honour. After that its fortunes began to decline.
The owners persevered, however, and in 1988 it immersed itself in further debt to finance the upgrading of the facility to a five-star hotel.
The upgrading plans included the establishment of the Emerald Tower Rainforest Lodge at Madewini. That initiative failed to bail out the hotel.
The investment decision was taken when the economy was booming but the momentum was not maintained and the occupancy level fell in the face of political turmoil. As a result, the lack of returns did not allow for money to be reinvested because it was diverted to paying crippling debt.
The establishment went into receivership to the Bank of Nova Scotia on April 12, 1999. The bank appointed Chartered Accountant Christopher Ram as Receiver/Manager of Hotel Tower.
Even as efforts were made to turn the fortunes of the hotel around and to find a buyer, business continued to decline, with the average monthly room occupancy dipping to approximately 25 per cent of total market share. In mid-2003, the Bank of Nova Scotia ceased its receivership hold on Hotel Tower Ltd in an equity transaction which saw a local investor group with businessmen RL Singh, Amarnauth Muneshwer and Ashoka Singh of Canada emerge as the new majority shareholders. Some of the small shareholders who were originally with the hotel had retained their business interest while Humphrey opted to sell his 60 per cent stake in the business.
The hotel was again sold in February 2009 to Canal Hospitality Inc, a business partnership headed by Azeez. The entire hotel was completely remodeled. A new bar, nightclub and gym were among the features added.
From then on, until it closed its doors again last year the hotel has had persistent financial problems.
Currently rehabilitative and cleaning works are ongoing at the establishment.
