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Roosevelt counsel opposes petition

The Express Tribune • • 1 min read

Roosevelt counsel opposes petition

The Express Tribune reported that legal counsel for Roosevelt Hotel has told the government its chances of succeeding with a petition against an arbitration award are only 1%, pushing Islamabad toward an amicable settlement. Three options were laid out: accepting the award at a cost of $11 million plus penalties of 15%, filing a District Court petition with the same 1% prospect and a possible extra fee if rejected, or negotiating a severance package with the hotel workers' union.

After the pandemic, the hotel reopened with approval in May 2023 under a Migrant Business Arrangement with New York City. New York City ended that arrangement effective June 30, 2025, following a change of government in the United States. The Hotel Trade Council then lodged a grievance alleging that Roosevelt Hotel Corporation, a PIA Investments subsidiary, had not reopened the hotel after the contract ended. On November 19, 2025 the impartial chairperson ruled against the company and ordered laid-off staff restored to the payroll from January 1, 2026.

PIA Holding Company proposed a hybrid course that pairs a District Court appeal against the award with talks with the union, and the case could be withdrawn if a settlement is reached. Any talks need Economic Coordination Committee (ECC) authorisation for their parameters, team and financial commitment, and the Attorney General's office has urged that negotiations be pursued to avoid costly litigation.

At a glance

  • Legal counsel puts the chance of success against the arbitration award at 1%.
  • Accepting the arbitration award would cost $11 million plus 15% penalties.
  • PIA Holding Company proposed a District Court appeal alongside talks with the union.
Sectors:Miscellaneous

Originally reported by The Express Tribune

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