Philippine Senator Miriam Defensor Santiago called for the country’s Senate to look into reports that about 100 employees of integrated resort City of Dreams Manila are to be suspended due to considerable profit loss.
Reportedly, Melco Crown Resorts Corporation, a Philippine subsidiary of gambling operator Melco Crown Entertainment Ltd., is planning to suspend its workers after losses widened during the second quarter of the year due to fewer gambling customers visiting its integrated resort, located in Manila’s Entertainment City, as well as higher costs.
According to the gambling company’s filings to the country’s Stock Exchange, comprehensive loss of more than PHP1.8 billion was reported in the three months ended June 30, 2015, up 27% as compared to the loss posted for the same period a year ago. Back in 2014, Melco Crown Resorts’ loss amounted to PHP1.43 billion.
Senator Santiago filed the so-called Senate Resolution 1520 urging the Philippine Senate to investigate the matter. The filing said that City of Dreams’ loss was mainly attributed to license fees and gaming taxes, depreciation and amortization, employee benefits expenses, as well as a number of other costs.
It seems that the gambling operator has promised to resume the employment of its suspended workers once the business conditions and its financial results improve. However, Senator Santiago expressed concerns that Melco Crown Resorts has created “a precedent” for other business owners to suspend employees when they find necessary and thus, violate their rights in a way.
According to her, it is the country’s government duty to protect workers and prevent them from falling victims to “abusive practices” from employers. Senator Santiago also said in her resolution that the Congress together with the Philippine Department of Labor and Employment and other related agencies must strengthen the current legislation and take due measures for the prevention of the “unwarranted suspension” of employees working in all business sectors.
City of Dreams Manila was not the only Philippine integrated resort to report poor financial results for the second quarter of the year. Resorts World Manila, operated by Travellers International Hotel Group Inc., posted a decline of 46.5% for the said period. Solaire Resort & Casino, the first of four integrated resorts in Entertainment City, saw a net loss for the three months ended June 30.
