About 1500 people to be stood down as Federal Group closes doors

In a heartbreaking decision, the doors to most hotels owned by the Federal Group have closed their doors.

MORE than 1500 employees are expected to be stood down from the Federal Group following the Prime Minister’s announcement to shut all bars, casinos, hotels, and restaurants.

Federal Group Corporate Affairs Executive General Manager Daniel Hanna said since the shock announcement they had worked on the implications for their business and people.

“We have operated in Tasmania through the pilot’s strike; through the global financial crisis; through recessions, fires, and floods,” Mr Hanna said.

“These are the worst circumstances we have faced as a society and a company since World War II.”

Mr Hanna said as of noon, the majority of the group’s businesses had closed their doors for the foreseeable future, impacting on the groups 1930 employees.

“These restrictions mean that we have been forced to close and there will be no work for any of them,” he said.

“We have no options available and we are therefore proposing to stand down most of our permanent employees and there will be no shifts available for casuals.

“We are consulting with our employees and a final decision will be made later today.

Closures and changes include:

• At Wrest Point, all gaming, restaurants and bars have closed. The hotel will remain open, with room service meals only.
• At Country Club, all gaming, restaurants, and bars have closed. The accommodation will remain open, with room service meals only. The golf course will also remain open.
• The Henry Jones Art Hotel and its restaurants will close, with bookings to be transferred to MACq 01.
• MACq 01 will remain open, however its restaurants are closed with room service meals only.
• Saffire will remain open with minimal staff however the restaurant is closed.
• 9/11 bottle shops will remain open.
• COPE Sensitive Freight will remain open.
• The Network Gaming business will close.
• The Waterfront Hotel at Bellerive is closed.
• The Derwent Tavern at Bridgewater is closed.
• The Claremont Hotel is closed.
• Hotel Tasmania in Launceston is closed.
• The Valern Hotel at Moonah is closed.
• The Brooker Inn at Lutana is closed.
• The Elwick Hotel in Glenorchy is closed.
• The Newstead Hotel is closed.
• Mackey’s Hotel at Latrobe is closed.
• Molly Malone’s in Devonport is closed.
• Furner’s Hotel at Ulverstone is closed.
• Hotel Federal at Wynyard is closed.

However, the likely outcome is that we will not have work for more than 1500 of our Tasmanian employees.

“The people affected will live in every community in our state.”

Mr Hanna said they would do everything possible to support their employees through this difficult time and to assist in understanding the support packages being made available at both levels of government.

“As you can see our company – the state’s largest private sector employer and largest investor in tourism and hospitality – has been decimated by these announcements,” he said.

Mr Hanna said though times were tough now, the state, and Federal Group, would come back from this.

“It’s hard to see right now but we must draw on the optimism that people in our industry and state are renowned for,” he said.