Yak & Yeti to bid adieu to staff

Kathmandu, February 6:

Management of the Hotel Yak & Yeti — which has not been operational for the past 46 days due to ‘conflict’ between employees and the management — has offered a package under Voluntary Retirement Scheme (VRS) to the permanent staff.

“The scheme to say ‘good bye’ to the permanent employees was deemed necessary as the hotel is not in a position to operate and incurring a huge loss for the past four months,” said Surendra Thakuri, the spokesperson of the hotel, talking to The Himalayan Times.

“The VRS is applicable ‘only’ for the permanent staff,” said Thakuri. The number fo permanent staff stands at 290, out of the total 500 hotel staff.

“The employees, who have worked ‘a-day-and-20-years’ are offered the VRS and they will be

paid handsome package,” said Thakuri terming it as a beneficial for the staff, “Even for a staff who has worked for two months only has been offered four months salary,” said Thakuri.

However, employees of the hotel, requesting anonymity said that VRS offer is yet to be studied and understood clearly by them. Birendra K Thakur, legal advisor of the hotel, said, “as the hotel is not in a position to operate under the existing situation due to huge losses, VRS may render some relief to both the employees and the management. This move will create sound environment for the management to operate the hotel on a partial basis, at least.”

From executive managers to lower level staff are eligible for the VRS, according to Thakuri.

He said that as the dialogue between the management and the employees still continues, revised VRS was announced to ‘bid adieu’ to some of the employees to ease overhead costs.”

He also informed that the management is ready to open up hotel at any point of time but the conflict be resolved at the earliest possible.

According to Thakuri, the hotel management distributes Rs 5 million as salary to its staff monthly.

“If at least 100 employees of the hotel are ready to go under VRS, 50 per cent management expenses will be reduced that will help start the hotel operations. The rest will be employed for the partial operations for the time being.”

He said that until December 23 the hotel had 40 per cent occupancy but registered ‘zero’ occupancy abruptly. The accumulated loss of the hotel of 46 days is difficult to estimate. Ho-wever, the losses from December 24-31, comes to be over Rs 35 million, according to Thakuri.

The hotel has an investment of about Rs 7 billion. The current situation has added more troubles to the hotels as the tourists turnout has declined.