Roberts Hawaii will lay off about 100 employees Saturday due to ongoing maintenance issues with the Ali’i Kai Catamaran and the Red Dolphin vessels, which both went out of service on July 4.
The company said on Friday that it is working to repair and reopen the Ali’i Kai Catamaran, but the Red Dolphin, which was doing business as the Waikiki Ocean Club, will remain shuttered.
While the Ali’i Kai has been operating successfully since 1983, the Waikiki Ocean Club has been plagued with troubles from its start as the failed KanDoo! Island catamaran. Roberts Hawaii entered into fierce competition in 2012 after getting outbid by California businessman Bob Norton, who invested $1.8 million to relaunch the KanDoo! Island catamaran as the Waikiki Ocean Club. Prices for Norton’s floating playground ran $89 for adults and $69 for youth.
After a battle for market share of Waikiki’s water activities, Roberts acquired the Waikiki Ocean Club for an unknown price in December 2013. Roberts eventually cut admission prices to $45 per adult and $35 per child, but even with the changes the attraction failed to attract enough business.
Layoffs related to the catamaran closures will take effect Saturday. However, Jason Young, assistant to the president of Roberts Hawaii, said that the company is working to relocate marine operations division employees to other divisions.
"We are hoping to retain as many of them as we can, and although the process just started this week, about 15 percent so far have been shifted to other Roberts Hawaii positions," Young said.
The company, which was started in 1941 in Hanepepe, Kauai, when Robert Iwamoto borrowed money to buy a single taxicab, has grown into a large tour and transportation company with 1,850 employees. Company spokeswoman Luly Unemori said affected employees have been invited to apply for other jobs in the company and that Roberts Hawaii is willing to retrain workers to meet current needs.
"So far every employee that has applied for a different job within the company has been accommodated," Unemori said.
Roberts Hawaii’s human resources team also is working to provide outplacement support and assistance to employees, she said.
"Eligible employees will receive severance and unemployment," Unemori said, adding that the company is hoping to soon resume Ali’i Kai operations.
