‘Everybody is in a state of shock’
The Hermitage Hotel in Aoraki/Mt Cook has proposed cutting all but eight of its 178 staff, essentially mothballing the operation indefinitely, and leaving some staff in a state of shock.
Staff were called to a meeting yesterday and have been given until Tuesday to submit on the proposal, to be confirmed next Friday.
General manager Jason Winter said there had not been any redundancies but the company was in talks with the team about various options and it would not be appropriate to comment further until a final decision was reached.
‘‘Like everybody else, we are looking at our business, we are looking at our staff, we are looking at the future viability of everything,’’ he said.
‘‘Under level four and level three we are not open to the public and like everybody else we are awaiting what the Government’s next moves are.’’
He said he was trying to do everything for his staff, particularly with many working on international work visas. ‘‘As immigration gives us a little bit more guidance on their position on visa holders, I think that is an area that will help make some decisions moving forward,’’ Winter said.
‘‘We had people from all over the world who got home before lockdown, we also had people who left thinking they were going to get a flight and couldn’t, and even though they were no longer employed we brought them back and have housed them and looked after them.’’
The Hermitage staff were mostly housed on site or in Twizel and were ‘‘100 per cent’’ allowed to stay there because the company made a commitment, he said.
A copy of the proposal, signed by Winter, was shared with Stuff by a staff member under condition of anonymity.
In it, Winter says he expects the company to be ‘‘significantly impacted for at least the next 6-18 months’’ and that its most optimistic estimate of reopening is October. The company proposes disestablishment of all but eight roles in maintenance, sales, marketing and reservations, HR and tenancy, and activities and retail.
All staff working in food and beverage, front office, housekeeping and accounts would be made redundant.
There are no opportunities for redeployment and though four weeks notice will be given, there is no redundancy pay entitlement and those living on the premises will be asked to leave by June 24, Winter says.
In his conclusion, Winter says: ‘‘No final decisions have been made, nor will be made, until we have had the opportunity to consult with the affected employees and their representatives to receive feedback on what is being proposed.’’
However, the staff member said the decision seemed to be written in black and white and staff were quickly getting a petition together within the two and half working day period allowed for response.
‘‘It is disastrous, everybody is in a
‘‘For years the company has been making millions of dollars ... Why can’t they lose a little, then gain again, and keep the loyal staff that have invested years?’’
state of shock,’’ they said.
‘‘Two people from Fiji have been with the company for about 10 years have been on a work visa and have nowhere to go.’’
They said the redundancy proposal came as a shock because the hotel had survived quiet winter seasons, and they were confident they could ride out the current crisis.
‘‘Before the lockdown, the general manager said the owners didn’t want to shut the hotel, they gave us false hope and now suddenly they are saying all the hospitality staff are gone,’’ they said.
‘‘All the people that have invested
10, 12, 15 years in this company, they are not getting any compensation.’’
According to the Ministry of Social Development’s database, Aoraki/Mt Cook Alpine Village Limited, which owns The Hermitage, received
$1,237,209.6 from the wage subsidy to pay 176 staff members.
Aoraki/Mount Cook Alpine Village is solely owned by Trojan Holdings, which is 100 per cent owned by former Queenstown mayor John Davies. Trojan Holdings also owns NZSki.
‘‘For years the company has been making millions of dollars ... Why can’t they lose a little, then gain again, and keep the loyal staff that have invested years?’’ the staff member said
‘‘The prime minister says be kind, be caring at this time. Under level three, how can they do this?’’
The original Hermitage was built in 1884, though floods and a fire have led to rebuilds over the years. The latest building was built in 1958 and has been extended several times.
Last week another major employer in the Mackenzie District, Nga¯ i Tahu Tourism, announced it would mothball its Tekapo-based Dark Sky Project and did not yet know if it would be able to reopen.
A Mackenzie District Council spokesperson said they had not officially heard of any redundancies at The Hermitage but it was offering support to those across the district with financial and emotional needs through the crisis.
Hermitage staff member