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Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure SK-2020-45/1351 Updated – measures in Slovakia

Organisational changes and dismissals in Best Hotel Properties

Organizacne zmeny a prepustanie v Best Hotel Properties

Country Slovakia , applies regionally

    • – SK010 Bratislavský kraj
      – SK042 Košický kraj
Time period Temporary, 01 November 2020 – 31 December 2020
Context COVID-19
Type Company practices
Category Ensuring business continuity and support for essential services
– Other
Author Ludovit Cziria (IVPR) and Eurofound
Measure added 29 October 2020 (updated 14 May 2021)

Background information

To minimize the effects of the first wave of COVID-19 pandemic on the citizens, the government temporarily closed some facilities, including hotels and restaurants in mid March 2020. Though these limitations were released from June, the pandemic crisis had significant negative impact on tourism in Slovakia. Significant drop also concerned organisation of national or international conferences. The number of foreign visitors significantly decreased also in cities with tourist attractions, like in the capital Bratislava where several hotels were closed.      

Content of measure

Among hotels in Bratislava, suffering from missing guests, are luxury hotels Grand Hotel River Park, Hotel Sheraton and Hotel Crowne Plaza, belonging to the Best Hotel Properties (BHP) group. According to the Chair of BHP Board of Directors, in Bratislava region were by 90% less foreign visitors in 2020 than in the previous year. About 85% loss in revenue is reported in the above-mentioned hotels and similar loss is expected in the next eight months. On 4 September 2020, the BHP Company informed the government by an open letter, that also signed several other organisations operating in the HORECA sector, about unfavourable situation. It also came with proposals how to improve the business of hotels in cities and retain employment in them. However, BHP did not receive response.

To ensure further operation of the above-mentioned hotels, BHP management decided on implementation of internal organisational changes, including implementation of slim organisation. However, internal restructuring also included reduction of current staff. Proposed job cuts also concern BHP hotel Double Tree by Hilton in Kosice. In total, about 80 employees will be dismissed during the next months. BHP submitted the proposal of mass dismissals in these hotels to the local Office of Employment, Social Affairs and Family.

Updates

The following updates to this measure have been made after it came into effect.

13 May 2021

Dismissals ended by 31 December 2020.

Use of measure

Proposed job cuts also concern BHP hotel Double Tree by Hilton in Kosice. In total, about 80 employees will be dismissed during the next months. BHP submitted the proposal of mass dismissals in these hotels to the local Office of Employment, Social Affairs and Family.

Contents

  • Employment retention
  • Work organisation

Target groups

Workers Businesses Citizens
Employees in standard employment
Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
Companies

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Company level

Involvement

According to the available information, local trade union organisations are not present in these hotels and the decision was unilaterally taken by the management.   

Views and reactions

It was the decision of management to reduce labour costs in concerned hotels. Because of missing trade unions in these hotels, the view of trade unions is not applicable.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      I - Accommodation And Food Service Activities I55 Accommodation
      I56 Food and beverage service activities
    • Occupation (ISCO level 2)
      Hospitality, retail and other services managers
      Food preparation assistants

Sources

  • 28 September 2020: Bratislavske hotely musia hromadne prepustat (www.teraz.sk)

Citation

Eurofound (2020), Organisational changes and dismissals in Best Hotel Properties , measure SK-2020-45/1351 (measures in Slovakia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SK-2020-45_1351.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.