The Fairmont Norfolk hotel based in Nairobi has closed indefinitely dismissing all its employees following a pay cut dispute that has been sparked by the coronavirus pandemic.
The country manager Mr Morad said the Nairobi outlet together the Mara had been closed because of the reduced business that had made it hard to meet employee pay demand due to coronavirus pandemic.
“Due to the uncertainty of when and how the global pandemic impact will result in the business picking up in the near future, we are left with no option but to close down the business indefinitely,” Mr Morad said in a memo.
The Norfolk employees had refused to remain on unpaid leave and instead demanded a 50 percent pay, triggering the closure. The employees objected the Norfolk’s decision to go back to its initial deal that had promised them half-pay in April and May and a new deal from June.
“Demands by the employees at this time and given the current financial constraints, are out of reach of the company…It is, therefore, the decision of the management to terminate the service of all employees due to frustration by way of mutual separation,” Fairmount Norfolk said in a note on Wednesday.
Most hotels in the country which rely on tourism, events, and conferences have closed down their businesses following the measures put in place by the government to curb the spread of the virus.