SINGAPORE: 42 people were retrenched after SHATEC scaled down operations in a “business containment exercise”, said the training centre on Thursday (Jul 3). 

SHATEC, formerly known as the Singapore Hotel Association Training and Education Centre, was set up in 1983 by the Singapore Hotel Association to train those entering Singapore’s hospitality industry. 

In response to questions about reports of the school closing down, chairman of SHATEC’s board Loh Lik Peng stopped short of confirming the news, but said on Tuesday that it was “in the early stages of reviewing its long-term plans”.

The SHATEC building in Bukit Batok is up for sale as part of its asset management strategy, he said. 

Real estate group CBRE, which is overseeing the sale, said the building was put up for sale in May. Priced at approximately S$18 million (US$14 million), its lease ends in 2051, and the building is still on the market, it told CNA. 

SHATEC will continue to fulfill continuing education and training courses that it has committed to and focus on teaching the last batch of pre-employment training students until March 2026 or the committed end date, whichever is later, the school said in a joint statement with the Food, Drinks and Allied Workers Union (FDAWU) on Thursday. 

The “business containment exercise”, which took effect in April, resulted in a scaling down of operations while the school reviews its long-term plans, said Mr Loh and FDAWU general secretary Sankaradass S/O S Chami in the statement on Thursday. 

The decision was made by the school’s board after “careful consideration and thorough evaluation of its current operation’s commercial viability”, and this will allow SHATEC to strategise its future direction, read the joint statement. 

When asked about the “business containment exercise”, Mr Loh told CNA that Shatec is “right sizing” its operations to meet its current business needs. 

“It’s a normal business decision to ensure the business’ sustainability,” he said. 

SHATEC’s board will announce its plans in the following months, Mr Loh added. 

“We are 100 per cent committed to ensure we do the very best for our students and staff so this is the priority,” he told CNA. 

SHATEC provided advance notice to FDAWU about the retrenchments, and the union has been working with the training centre’s management to assist affected staff, the statement said. 

The school has also consulted with FDAWU to ensure that fair compensation packages are extended to the 42 affected staff members.

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