Top Biz News

Hotel workers want back pay

By Qian Yanfeng and Zhou Yan (China Daily)
Updated: 2009-12-04 07:56

Hotels in Shanghai’s high-end Xintiandi area. [China Daily]

Construction workers for the city's two unfinished premium hotels, which are partially backed by Dubai investors, are demanding overdue payments that they fear might evaporate amid widespread speculation over the financial crisis there.

Several representative workers who had worked on the twin hotels located in the city's high-end Xintiandi area visited the developer's office yesterday and demanded to be paid. Work has been suspended since the beginning of the year.

A China Daily reporter also went to the developer's office yesterday, but company officials asked the reporter to leave.

One hotel is run by the Dubai-based hotel operator Jumeirah that is rumored to have been hit by Dubai World's recent default on debt payments.

A worker from Shanghai No 4 Construction under Shanghai Construction Group, the project contractor, told China Daily yesterday that the developer, Shanghai Li Xing Hotel Company Ltd, had owed construction workers several hundred million yuan in salary since the project got stalled in the wake of the financial crisis, and that workers were getting more worried by the year end.

The man, who asked not to be identified, said those migrant workers are in desperate need of that money before they head home for Spring Festival.

Staff at Shanghai Li Xing refused to comment yesterday.

The Dubai crisis erupted last week when the emirate said its investment arm, Dubai World, would not be able to meet payments on time on some of its $59 billion debt.

That has caused wild speculation in the local press that Jumeirah, a member of Dubai Holding, which is one of the emirate's three flagship holding firms along with Dubai World, might have been hit by the debt default and that would cause further delay of the hotel project in Shanghai.

In a written reply to China Daily yesterday, Jumeirah Group said it is "not associated with Dubai World" and "continues to enjoy an excellent flow of business with high occupancy."

In connection with the hotel project, company officials said it "remain(s) fully committed to the project and continue(s) to work closely with the owner/developer on a timeline for the opening".