About 150 restaurant employees who work in Old Town must re-apply for their jobs once a new operator takes over Plaza del Pasado's dozen shops, it was reported today.
New York-based Delaware North told the employees they will be terminated March 7, a day before Old Town Family Hospitality assumes operations of the money-losing restaurants and shops in the state park, The San Diego Union- Tribune reported.
Most of the 150 employees affected have union jobs. Under federal law, if Old Town Family Hospitality were to retain more than 50 percent of the union employees, the employees' current contract would have to remain in place.
Chula Vista restaurateur Chuck Ross, who controls Old Town Family, told the Union-Tribune that if the union contract were kept in place, it would cost his company an additional $3 an hour per employee.
"Our intention is to start over as nonunion, with a new staff for the new business we are opening," Ross told the newspaper. "With the economics of this deal, and the troubles this operation has had, it's not financially feasible to keep this as it is."
Since Delaware North took over control in 2005, Plaza del Pasado's revenues have fallen sharply. In fiscal year 2008 compared to fiscal year 2007, revenues dropped 18 percent to $7.53 million, according to the Union-Tribune.
The last fiscal year before Delaware North took over, Plaza del Pasado generated $22.23 million in revenue.
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