Airline Closure to Also Affect Kaohsiung Hotel|遠航集團子企業經營 樺舍商旅傳年底關門

Far Eastern Air Transport announced without any prior warning on Dec. 12 that it was going to halt operations starting on Dec. 13. Previously, a subsidiary of the company had signed a 20-year contract with the Training and Employment Center of Kaohsiung City's Labor Affairs Bureau to operate a business hotel. The company notified the bureau on Dec. 12 that hotel operations would cease before the end of the year.

This is Huashe Hotel, a business hotel located in Kaohsiung. It was operating normally on Dec. 13. This hotel opened four years ago after a subsidiary of Far Eastern Air Transport and Kaohsiung City's Labor Affairs Bureau signed a 20-year retention of title contract to outsource construction, operations, and investment. On Dec. 12, the bureau received a notice of contract termination from the company saying that it would cease operations before the end of the year. The bureau believes this has something to do with the company's financial crisis.

The company hasn't notified us yet, and we are still working normally.

We're waiting for the company to notify us, because there is information going around and nothing is certain.

The hotel's employees said they've heard nothing about the imminent closure. Meanwhile, the bureau said it already sent personnel to the hotel to learn more about the situation. It will also require the company to pay severance if it dismisses a large number of employees. A failure to do so will result in a fine.

As of now, we have learned that they have 20 employees that work at Huashe Hotel. If the company fails to pay the necessary expenditures, we of course will handle the case in accordance with the Labor Standards Act. We will also assist employees to seek compensation in accordance with legal procedures.

The bureau adds that so far no hotel employees have applied for mediation with management. There are three domestic banks that have extended credit to the company. The largest creditor is Taiwan Cooperative Bank, which extended credit of NT$2.2 billion. The Financial Supervisory Commission says it is still trying to clarify the situation and it has no comment at present.









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