Protestors Blockade Laguna Phuket

[george]

Protestors blockade Laguna Phuket

CHERNG TALAY, PHUKET: -- Disgruntled staff members at the up-market Laguna Phuket resort complex have abandoned their duties and blockaded the road entrances to the resort, causing disruption to operations and preventing access.

Protesters said they were angry they had received a bonus of two weeks’ pay for 2008, rather than the usual four weeks, and had been denied pay increases.

A written statement from the hotel union seen by the Gazette claimed that the various companies operating under the Laguna umbrella had all performed well in 2008 and that the company was secure, strong and among the leading tourism companies in Asia.

Natasha Eldred, Assistant Director of Marketing Communications at Laguna Phuket, said, “The hotels and business units at Laguna Phuket are experiencing disruptions to operations and the management are gravely concerned about the impact this action will have on Phuket’s already declining tourism business.”

According to a press release issued by Laguna Resorts & Hotels, the protest began yesterday afternoon with 150 to 200 employees, or about five percent of the total workforce, marching and assembling at the entrance to the resort complex.

Many of the protesters were still in uniform, while others were dressed casually.

One route into the resort was blockaded with a Laguna tour bus, preventing access by vehicles to parts of the complex.

Additional blockades were added overnight, “preventing arrivals and departures by guests, associates and residents,” according to a statement by Laguna Phuket.

“Laguna Resorts & Hotels Plc advises that the Phuket authorities are fully aware of the situation and that the Company has requested their full assistance to resolve the situation in a timely manner. Laguna Resorts & Hotels sincerely apologizes for the inconvenience caused to patrons and associates during this action,” Ms Eldred said.

-- Phuket Gazette 2009-02-06

[geoffphuket]

Another nail in the coffin for Phuket's tourism business. No doubt it'll prompt countless cancellations once the news gets around.

[Syl]

Fire all the protesters. It shouldn’t be to hard to find new employees.

Syl.

[CroBiker]

I'll never figure out this mob rule closing roads, airports, resorts etc...How they get away with this?

[Ping]

I don't know how the place stays in business. There never seem to be more than a mere smattering of guests around (for such a huge resort), and now it seems to be feeling the pinch.

[thaigerd]

I'll never figure out this mob rule closing roads, airports, resorts etc...How they get away with this?

I've got that "breaking news" today very early in the morning, so I went to see what is going on:

After 200meters I've got stopped from a security guard..........going back.

Could tell you many more stories what is going on here in Phuket............

A very big hotel/resort near the airport had to close for half a day because of the local taxi mafia, they just closed the road to access.............

I don't like to mention it but...........Muslim

Sorry,

Gerd

[LivinLOS]

Money gets tighter but Thais assumptions that ever greater numbers will always come is built into their business assumptions so that even failed poorly managed biz, will expand to profit over time. Well not for the next bit of time.

Didnt get a large bonus, and thats reason for a sit in.. In a year when the reason they didnt get a large bonus, is they closed the airport with (yeap you guessed it) another sit in.

the vague hope that a lack of customers might actually make them appreciate the people that support thier industries is probably too much to ask for.

[fiddlehead]

This is not good.

So, now the uneducated have realized how to get what they want:

Shut em down!

It works.

The police/army/authorities stand back and watch (let) it happen.

[ItsPhuketTownNotCity]

I don't know how the place stays in business. There never seem to be more than a mere smattering of guests around (for such a huge resort), and now it seems to be feeling the pinch.

And their near-empty buses continuously tear back and forth across Phuket Town at breakneck speeds. Very dangerous.

[slackula]

I'll never figure out this mob rule closing roads, airports, resorts etc...How they get away with this?

I guess the same way unions get away with picket lines in other parts of the world.

[PhuketBound]

unruly mob and picket lines, two very different things. Can't compare treason and labor strike.

[paulfromphuket]

Money gets tighter but Thais assumptions that ever greater numbers will always come is built into their business assumptions so that even failed poorly managed biz, will expand to profit over time. Well not for the next bit of time.

Didnt get a large bonus, and thats reason for a sit in.. In a year when the reason they didnt get a large bonus, is they closed the airport with (yeap you guessed it) another sit in.

the vague hope that a lack of customers might actually make them appreciate the people that support thier industries is probably too much to ask for.

I don't think it was Laguna hotel staff that closed the airports, they where too busy working 6 days a week 10 hour shifts for 6,000/10,000 baht a month.

No it was the BKK elite that supported PAD and some those are the owners of these resorts.

They now want to minimize the damage with pay cuts and layoffs of hard working staff to whom a two week bonus really makes a difference.

I live near Laguna and even sometimes have a drink at these places but paying 200 baht for a beer to a waiter thats paid about that for the day makes me uncomfortable.

I am with the workers on this one the big boys always try to screw the little ones.

I hear the Marriott is having a bonanza at Laguna's expense right now with guests diverted.

[slackula]

unruly mob and picket lines, two very different things. Can't compare treason and labor strike.

From the Phuket Gazette:

Members of the workers’ union are unhappy with the annual bonus that they received...

(bolded by me for the hard of hearing)

Since the topic of this thread is the Laguna protest and since that is a labour issue that is why I mentioned picket lines; I wasn't commenting on the airport closures as they are not relevant here.

But thanks for playing.

[cotambear]

They should welcome the pay cut as it will for them to rethink their lives and encourage them in to new careers, such as being a currency fx gambler like Soros. Why earn peanuts working for laguna when they could be earning billions? They are only poor because they want to be poor.

The income cut suggestion can never be appied to the owners of laguna and similar resorts, as they need to be `incentivised.`

How dare they stop work and disrupt traffic? That may damage tourism. When the thai elite do it, they do it selflessly to `defend democracy.`

[Syl]

A written statement from the hotel union seen by the Gazette claimed that the various companies operating under the Laguna umbrella had all performed well in 2008 and that the company was secure, strong and among the leading tourism companies in Asia.

I smell something!

[Bizz]

Another nail in the coffin for Phuket's tourism business. No doubt it'll prompt countless cancellations once the news gets around.

biting the hand that feeds you is not a very wise act bye bye laguna

[LivinLOS]

Money gets tighter but Thais assumptions that ever greater numbers will always come is built into their business assumptions so that even failed poorly managed biz, will expand to profit over time. Well not for the next bit of time.

Didnt get a large bonus, and thats reason for a sit in.. In a year when the reason they didnt get a large bonus, is they closed the airport with (yeap you guessed it) another sit in.

the vague hope that a lack of customers might actually make them appreciate the people that support thier industries is probably too much to ask for.

I don't think it was Laguna hotel staff that closed the airports, they where too busy working 6 days a week 10 hour shifts for 6,000/10,000 baht a month.

No it was the BKK elite that supported PAD and some those are the owners of these resorts.

They now want to minimize the damage with pay cuts and layoffs of hard working staff to whom a two week bonus really makes a difference.

I live near Laguna and even sometimes have a drink at these places but paying 200 baht for a beer to a waiter thats paid about that for the day makes me uncomfortable.

I am with the workers on this one the big boys always try to screw the little ones.

I hear the Marriott is having a bonanza at Laguna's expense right now with guests diverted.

Sorry but the sheeple were all in support.. Everyone in their we love the king yellow.. Phuket airport closed.. Etc.. A protest can only exist because it is tolerated, tolerated by society, and tolerated by the administration of that society.

When the PAD closed the airport (main or local) the local business owners that live off this tourist industry, from hotel owners to small market stall owners should have been in instant reaction, and gone and made their disapproval felt, that support would have allowed the police to act. But no they wouldn't stick their neck out for what was essentially farang inconvenience. They wore their colors and now they are feeling the repercussion of their own actions. I have zero sympathy for such short sighted actions. When Thais now make faces, asking for higher prices, saying how bad business is I remind them who damaged the industry.

As said already, you dont bite the hand that feeds.

[geriatrickid]

C'mon guys, do your homework. The workers are right, Laguna Resorts & Hotels Public Company Limited has been making substantive profits. I would go further to say that the results are the envy of many western multinationals. Look at the financials;

Market Cap 115.7M Total Revenue 8.4B EBITDA 2.8B DILUTED EPS 11.28 Return On Asset7.38 Return On Equity13.67

Laguna Resorts & Hotels Public Co. Ltd. reported earnings results for the third quarter ended September 30, 2008. For the quarter, the company reported total revenue increased by THB 139 million as compared to the prior year mainly due to the revenue from hotel operations decreased by THB 50 million mainly comprising a decrease in revenue of THB 70 million of the Laguna Phuket operations resulting from lower occupancies by 15% as compared to the same period last year. This was offset by an increase in revenue of THB 20 million for merchandise sales operations. The company reported net profit of THB 88 million, which was THB 13 million higher when compared to the prior year.

Laguna Resorts & Hotels Public Company Limited, operates four hotels, including Dusit Laguna Resort, Laguna Beach Resort, Sheraton Grande Laguna Phuket, and Banyan Tree Phuket in Phuket province; and Banyan Tree Bangkok hotel in Bangkok, Thailand. The company also engages in the operation of Laguna Phuket Golf Club; sale of merchandise; office and resort rental; property development; and sale of holiday club membership activities. The company, formerly known as Thai Wah Resorts Development Company Limited, was founded in 1983 and is based in Bangkok, Thailand. Laguna Resorts & Hotels Public Co. Ltd. operates as a subsidiary of Banyan Tree Holdings Limited.

Now if you are still reading the name Banyan should jolt you. It's a Singapore based company. The BOD is a who's Who of well connected Singapore citizens and well placed Bangkok hi so.

Ho Kwon Ping, Michael Ayling, Surapon Suprtya . Banyan Tree Holdings Limited

Kwan Cho Ho Laguna Resorts & Hotels Public Co. Ltd. --

Vudhiphol Suryibhivadh . Bangkok Ranch Public Co. Ltd.

Ahh what's the catch you say? I liked this part in respect to the financial analysts statements;

Year over year, Laguna Resorts & Hotels Public Co. Ltd. has been able to grow revenues from 6.0B to 7.0B. Most impressively, the company has been able to reduce the percentage of sales devoted to income tax expense from 3.81% to 2.70%. This was a driver that led to a bottom line growth from 1.1B to 1.3B.

Say, wasn't Mr. Thaksin accused of massaging tax payments? I wonder if these well placed folks with no relationship to Thaksin will ever suffer the same fate?

BTW have a look at the financial statement. Biggest revenues is sale from merchandise. That to me says that the condo developments are doing well.

And the financials also reported a decrease of 15% just prior to the airport seizure, so the next report will be even more interesting.

Even more inetresting is the amount of money Banyan is pouring into Laos and Vietnam.

Edited February 8, 2009 by geriatrickid

[LivinLOS]

And your data includes occupancy for Dec and Jan does it ??

[saneroad]

Today's update (as of 10.20 am)

IT WAS agreed at talks late on Saturday that Laguna Phuket would be allowed to reopen from 2am on Sunday, Phuketwan has learned.

The reopening of roads actually took place around midnight.

But it is understood that talks are taking place today about a new dispute involving the potential closure of one of Laguna Phuket's resorts for up to a month.

Protesters blocked all roads into the six-resort complex after a dispute over pay and bonuses spread onto the roads about 1pm on Friday.

The arrangement for the protesters to cease their action was reached after talks between the unions, the Governor, Dr Preecha Ruangjan, Phuket Police Chief Major General Apirak Hongtong and Laguna Phuket management.

The agreement required no commitment from Laguna Phuket, Phuketwan was told. An official statement is expected on Sunday.

The protest left most of the resorts with far fewer staff than normal. One resort had begun to have incoming guests taken to accommodation outside Laguna Phuket.

The dispute is unprecedented and an indication of the difficulties being faced on all sides as the island enters a lengthy period of economic uncertainty, brought on by the world economic downturn.

Full story:

Talks 'Bring End' to Laguna Protest

Also, the update from Banyan Tree, where the dispute is ongoing...

Laguna Dispute Latest: Banyan Tree Shuts out Staff

Phuketwan will be updating this throughout the day....

[geriatrickid]

And your data includes occupancy for Dec and Jan does it ??

No. As I wrote, Occupancy number was Q3. I am sure the decrease will be worse for Q4, but occupancy is not as critical for Laguna as it is for a regular hotel operation. I know where you are going and are thinking the occupancy rate will probably decrease even more in Q4. I agree and it would be devastating for a basic resort operation. However, Laguna is diversified, so it can balance occupancy drops. I believe the business model has moved into the stage where the resorts are structured in a large part for time share and the sale of individual units. Holiday home management with emphasis on development and sales with ancilliary services (e..g. golf course, shops). The hotels are anchors that bring in the guests. Guests like what they see and buy a unit through Laguna. The hoels are there to make money obviously, but like those hotels that have several floors dedicated to condos with full service amenities, they can take a hit. It seems to be working well enough to deliver a nice profit. The guys running the operation are sharp and experienced real estate investors.

You can verify data and info for yourself. All public info as per Thai Stock Exchange Filings. However, the key is Banyan which holds over 40% alone. Banyan is into real estate development and makes its money that way. Have a look at the Thai companies with interests. Looks to me like a who's who of Bangkok based movers and shakers.

http://www.set.or.th/set/companyprofile.do...&country=US

Edited February 8, 2009 by geriatrickid

[HorseDoctor]

I live about 4 k NE of Laguna and at 3 PM I left to head into Cherng Telay , the village near Laguna The road into Cherng Telay was closed and traffic was stopped , Police in the road were very aggressive, even trying to stop me from turning around. A.ter about 20 minutes waiting I did and headed toward Thalang , Tried to cross the main route that goes to the airport ( 402 ? ) and that too was closed , this is about 10 k from Laguna. I have no idea if this was related to the Laguna protest but it was an incredible logjam and was very badly handled by police.

[paulfromphuket]

I live about 4 k NE of Laguna and at 3 PM I left to head into Cherng Telay , the village near Laguna The road into Cherng Telay was closed and traffic was stopped , Police in the road were very aggressive, even trying to stop me from turning around. A.ter about 20 minutes waiting I did and headed toward Thalang , Tried to cross the main route that goes to the airport ( 402 ? ) and that too was closed , this is about 10 k from Laguna. I have no idea if this was related to the Laguna protest but it was an incredible logjam and was very badly handled by police.

I have heard some rumors that there's been some mass layoffs, so maybe things are escalating i am going to go to Layan with my dogs soon and will drive via Laguna to see whats happening will lets you all know the news.

it also could just be another VIP sultan of bruni for example.

[george]

Lions gone, smiles back in at Laguna resort complex

PHUKET: -- Laguna Resorts & Hotels Plc has confirmed to the Gazette that as of 2:00am today the "illegal assembly" blockading the roads into its Laguna Phuket resort complex dispersed and that all resort entrance roads are now fully open.

The six Laguna Phuket hotels are rapidly returning to normal operations.

In an official statement, a spokesperson wrote: "During the afternoon of Thursday, February 5, an illegal assembly of approximately 150 staff, representing less than 5% of the resort's total employment of over 4,000, started blocking the roads. This action resulted from several Laguna Phuket hotel unions not accepting the year-end bonus awarded to employees.

"The award of a two-week bonus by the company reflected the downturn in the tourism industry in Phuket and the rest of Thailand in the second half of 2008 following the closures of the Phuket and Bangkok airports, as well as the global economic downturn.

"Because the unions did not follow grievance procedures prescribed by Labour Court regulations, and committed potentially criminal offenses by blocking public roads and infringing on private property, Laguna management had no choice but to consider the union disruption as an illegal assembly."

Management of Laguna Phuket reported the violations to the Phuket police and the provincial government, and requested their urgent assistance in re-establishing access to the blockaded roads for Laguna Phuket staff, resort guests, suppliers, Laguna residents and other users of the roads.

That such assistance was provided was immediately evident early this morning to Gazette reporters who surveyed the area and found a remarkable return to order and tranquility.

Gone were the boom boxes of the protesters and the traffic jams created by their barricades. Back were the smiles of staff, residents and guests, many of whom were out jogging. And back on the links were the caddies assisting the usual heavy Sunday morning regiments of golfers.

One local resident told the Gazette that she had been outraged by the "base-and-drum torture" that had been meted out by the protesters non-stop for two days aboard a "hi-tech, James Bond like" sound truck.

An Australian tourist said, "The whole thing came in like a lion two days after we arrived here, and this morning it left like a lamb. Now it looks just as though nothing ever happened. But, you know, it's a beautiful place and we'll be back again next year – for sure."

-- Phuket Gazette 2009-02-08

[paulfromphuket]

well as far as the lambs go there were about 30 protesters camping out at the lake near the laguna beach as i walked my dogs tonite but the word is that those that participated in the dispute have been fired.

Is'nt Laguna a major TV sponser so whats really going on?

Thanks george!

[paulfromphuket]

[

"Because the unions did not follow grievance procedures prescribed by Labour Court regulations, and committed potentially criminal offenses by blocking public roads and infringing on private property, Laguna management had no choice but to consider the union disruption as an illegal assembly."

Management of Laguna Phuket reported the violations to the Phuket police and the provincial government, and requested their urgent assistance in re-establishing access to the blockaded roads for Laguna Phuket staff, resort guests, suppliers, Laguna residents and other users of the roads.

That such assistance was provided was immediately evident early this morning to Gazette reporters who surveyed the area and found a remarkable return to order and tranquility.

-- Phuket Gazette 2009-02-08

Don't we all wish the Laguna management had complained about the airport closures and the occupation of the government house!

things would have been resolved so much faster.

[LivinLOS]

I wonder how much the complaint process cost ??

Thai police.. The best police force money can buy.

[paulfromphuket]

I wonder how much the complaint process cost ??

Thai police.. The best police force money can buy.

in most countries disputes on private property are not in the jurisdiction of the police!!!!

this is Thailand!

[geriatrickid]

Considering the past troubles with hiring and retaining quality staff at the major hotels, the willingness of Laguna management to let the dispute to go this far suggests that the occupancy rates will continue to deteriorate and that staff can be shed. Correct me if I am wrong, but if employees are terminated for "illegal" behaviour with cause, then the severance pay provisions of the Labour code/Act do not apply. Getting rid of the workers this way saves the company some money, doesn't it?

[Syl]

Considering the past troubles with hiring and retaining quality staff at the major hotels, the willingness of Laguna management to let the dispute to go this far suggests that the occupancy rates will continue to deteriorate and that staff can be shed. Correct me if I am wrong, but if employees are terminated for "illegal" behaviour with cause, then the severance pay provisions of the Labour code/Act do not apply. Getting rid of the workers this way saves the company some money, doesn't it?

geriatrickid, I think that you got that right. And who needs to keep greedy staff that are rebellious against their employers. I think the management have weeded out the trouble makers and made the necessary staff cutbacks in one feel swoop.

Syl