Hotel sales depend on the development of the global crisis

A meeting of the Management, the union, the Workers’ Council, and the employees of Sunčani Hvar was held today in Hvar, prompted by a letter from the CEO Jacques Bourgeois announcing a reduction in the number of employees from 415 to less than 300, the sale of non-essential real estate for the company’s core business, and the cessation of all capital investments.

The closed meeting lasted two hours, during which the CEO attempted to explain to the employees that this was a necessary reduction in the workforce, or voluntary termination of contracts. The letter offered employees three options for the reduction of the workforce – voluntary leave for personal reasons while retaining employment, but temporarily without pay; early retirement with a supplement to the difference until full pension; and voluntary termination of employment with severance pay.

In response to a journalist’s question about whether the sale of the core capital, i.e., the hotel, would follow the reduction in the number of employees and the already announced sale of the Hvar city café, Jacques Bourgeois replied that the development and impact of the global economic crisis would dictate not only the decision to reduce the workforce but also the disposal of part of the capital that is not crucial for the core business of Sunčani Hvar. He added that they are considering which hotel is a candidate for such a possibility, that is not tied to the core business of the company and is not part of the core assets. He stated that no decision would be made without the consent of the Croatian Privatization Fund.

Representatives of the Union and the Workers’ Council did not wish to make statements, which was also declined by the workers, some of whom expressed concern for their future. The Hvar SDP also held a press conference today, which, in an open letter to the government, among other things, seeks an answer to the question of who among all those involved in the story of Sunčani Hvar – the government, “ORCO Group”, the City of Hvar, or Sunčani Hvar – is responsible for the current situation, as stated by the branch secretary Ivan Buzolić, these questions trouble the entire Hvar. They also demand that details about the relationship between the government and the “ORCO Group”, presented as a public-private partnership, be publicly disclosed, as he stated, it seems that the government has actually transferred ownership to “ORCO”. (Hina)