College of Business Hospitality & Tourism Studies

Department of Management
HRM701: Industrial Relation: Theory and Practice
Major Assignment: Semester 1 2021- 25%

NOTE:

1. This Case Study Write-up is due on Sunday [23rd May, 2021] by 11.59pm.

2. The Write-up has a raw mark of 40 which will be converted to 25%. There are 7 questions altogether.

3. Only original work is to be submitted. Copied answers or responses will be given a zero.

4. The Case Study is to be done Individually and should be typed in Times New Romans with a font
size of 12 and 1.5-line spacing.

5. It must be uploaded on Moodle before Sunday [23rd May, 2021] by 11.59 pm.

6. Please ensure that your assignment is well presented.

7. Late assignments will carry a penalty of 10% per day, and it will not be accepted after the 10 day.
If you have a reasonable excuse for submitting your assignment late, get in touch with the
Lecturer before the due date, not after the due date in order for you to be given an extension.
Please manage your time effectively.

8. Students are required to think logically and critically relating to issues and then provide their
discussion. You need to practical in your thinking. You are allowed to make assumption and
provide argument from both end.
Case Study 1

Hotel workers in Fiji face redundancy due to lack of tourism business

Some Fijian hotels are expected to lay off more workers in the coming weeks due to lack of tourism business.
The Marriott Resort on Momi Bay and the Westin and Sheraton Resorts on Denarau Island in Nadi, the third
largest city on the western side of Viti Levu, Fiji's main island, are expected to make more than 900 workers
redundant by the end of August.

This has been confirmed by Fiji's National Union of Hotel and Catering Employees General Secretary Daniel
Urai on Monday. He said the resorts have been in constant discussions with the union regarding the future
of the workers for some time now.

Urai said the resorts have proposed to them that they are only looking to retain a handful of workers who will
be responsible for mending and carrying out maintenance on the properties during temporary closure. He
said the redundant workers will be given a redundancy package which is a week's pay for each year of service
they had served.

The resorts had earlier said that they have experienced a significant drop in demand which is likely to continue
for an uncertain duration as the prior levels of hospitality activities in Fiji is not expected to return until beyond
2021 following the implications of COVID-19.

They said that the resorts will reopen for hiring once business picks up and the opportunity presents itself.
For now, borders are closed and Fiji is just opening up for business in most hotels for locals. Fiji depends
heavily on its tourism market as a main money earner for the island nation and is eager to restart the travel
bubble between neighboring countries Australia and New Zealand as soon as that is possible

Questions

1. Do you think the reason provided for redundancy is justified? Yes/No, Why? [4 marks]

2. According to the article “resorts have been in constant discussions with the union regarding the future
of the workers for some time now”. Assume you the president for the trade union what would be
your response to this discussion. [5 marks]

3. Assume you are one of the employee made redundant and now the you have been informed that the
resort is opening soon and hiring new set of employees. What would be your course of action and
why? [5 marks]

4. Calculate the redundancy pay for the following

a. $150 per week = 12 years of employment

b. $2,500 per week = 7 ½ years of employment
c. 280 per week = 15 years of employment
[6 marks – 2 marks each)]
Case Study 2

Kokomo Private Island Former Workers Claim Unfair Dismissal

According to the notice of termination, the reason was on the basis of redundancy because of adverse
economic effects affecting the resort’s payroll.

Close to 60 employees from the Kokomo Private Island in Kadavu have claimed of unfair dismissal after
having their employment contracts terminated earlier this month. A barge belonging to the resort had
transported the terminated employees into Suva in groups since the end of last month.

According to the notice of termination, the reason was on the basis of redundancy because of adverse
economic effects affecting the resort’s payroll. A terminated employee, Viliame Ikatamata, who was a former
senior activities attendant, claimed that the resort failed to give the terminated staff members prior notice
about the planned redundancies and termination of employees.

“The problem was they did not give us prior notice for us to at least prepare ourselves for the consequences
of being unemployed,” he said.

“Some of us were just busy working when we were abruptly handed our notice of termination,
unprofessionally done and not following formal procedures.

“Some of the notices were just given when the barge to pick us up from the island was ready to leave for
Suva.

“Two staff that were currently on leave had their termination letters emailed to them.” Mr Ikatamata was part
of the third batch of terminated employees to arrive from the island on January 27. “There should have been
a grace period of one month or one week given to the workers to serve then they could be laid off by the
resort, at least for us to look for other employment opportunities elsewhere.”

He said he had signed his contract for two years ending this April and had just signed his contract renewal
for another two years last month before being terminated. The termination letter noted that the Ministry of
Employment, Productivity and Industrial Relations was notified of the issues faced by the resort and laying
off employees.

MINISTRY OF LABOUR

When asked on the issue, Permanent Secretary for the Ministry of Employment, Productivity and Industrial
Relations, Osea Cawaru said: “The Ministry has received the report of redundancy from the management of
Kokomo Private Island and we are currently investigating the matter as we speak.”

KOKOMO PRIVATE ISLAND RESORT

Kokomo Private Island general manager Martin Persson said the resort was going through a new phase of
business and resourcing requirements were reduced.
“Kokomo’s workforce over the past three to four years was at an augmented level to support the development,
construction and operation of the world-class 6-star resort, but with the construction nearing completion, the
operation now established and the resort moving into its next phase, the resourcing requirements have
reduced,” Mr. Persson said.

“We have provided some people with redundancy packages in addition to their entitlements. We have made
every effort to move staff into new roles where we can.” Mr. Persson said Kokomo had followed the right
procedures in notifying the Ministry of Employment, Productivity and Industrial Relations prior to carrying out
the redundancies.

He said the management had always valued and appreciated its entire staff and the important contributions
they had made to the resort. “Kokomo currently still employs 300 people and we look forward to continuing
to provide a world-class resort and highlighting the amazing experience of Fiji.”

Questions

1. As the industrial relation students, do you think the above case study is really the case of unfair
dismissal? Why and why not (students are required to read the provision for dismissal and
redundancy and relate to the situation while answering this question). [5 marks]

2. Assume you are the trade union leader representing the employees of Kokomo Private Island Resort.
What actions will you take to assist the employees and to reduce the impact of unemployment.
[5 marks]

3. Discuss the provision of redundancy accordingly to ERA 2007. All aspects of the provision should
be covered. All discussion should be in your own words. [10 marks]

All the best 