UTSC’s student union-owned restaurant is set to close Feb. 6. Bluff’s, located in the Student Centre basement, has been used for dining, social events, and pub nights.

On Monday, Scarborough Campus Student Union president Zuhair Syed sent an e-mail to all UTSC students announcing the closure “due to severe financial difficulties.”

Since opening in 2004, an annual $140,000 has been given to Bluff’s by the Council on Student Services. But this year the annual sum dried up in five months, as did a $30,000 emergency bailout from the SCSU.

“In light of the financial situation, everything’s getting cut back,” said Hamze Khan, a student representative on the CoSS. “This isn’t great, but perhaps we can change Bluff’s into something more worthwhile.”

Food and beverage manager Zalia Conde was fired on Monday, and all other employees were told they would be made redundant as of the Feb. 6 closing.

“It’s very, very depressing for everyone here,” said one manager at Bluff’s, who only agreed to speak anonymously.

“I believe it’s a problem with the Scarborough Campus Students’ Union who’s giving themselves pay raises instead of helping Bluff’s out to keep us open.”

The manager was referring to raises in executive salaries approved last year, which totalled $63,000. In the union’s defence, Syed said that the executive was one of the lowest paid in Canada at the time.

Bluff’s, which facilitates 150 people and can be opened to a hall and performing stage, was subject to a heated debate over Halal food options in 2007 which made national headlines. The restaurant generates approximately $1,400 daily and employs around fifteen people, thirteen of them students.

SCSU denied The Varsity access to Bluff’s financial records.

“I think [the closure] was a means of retaliation by the SCSU. The staff at Bluff’s had brought forth a Ministry of Labour claim against them for not paying us wages. Our staff had to go approximately the whole month of December without getting paid,” said Shanique Edwards, a UTSC student and manager at Bluff’s for two years.

“They investigated, then the SCSU then decided to close down Bluff’s. I think it was a cover-up by the SCSU because of funds that were missing from Bluff’s.”

“Nothing had to do with the Ministry of Labour issue,” said Syed. “That was a completely detached issue which was dealt with separately.”

Syed said the ministry has acknowledged that the case is closed.

As of 2009, Bluff’s had been trying to raise profit by expanding hours and catering. They also cut inventory and made more from scratch.

“We tried to lower the cost of renting space so we could get more events. Many more were booked for the upcoming year,” said Edwards.

Prior to public announcement, all staff were asked to work for the last two weeks for a severance payment based on typical earnings.

“We were given hush money,” said Edwards. “Between $50-$100 for us not to say anything to anybody about what they’re doing. Only two or three took it, the ones that actually had families… We didn’t get anything.”

“I was very shook by the fact that I had to lay off staff that have families,” said Syed, who insisted that everything took place under Ministry of Labour guidelines and legal counsel. “Unfortunately, because of the nature of the business operations and the fact that we had no money left, we had no choice.”

Syed confirmed that students who re-apply for a future SCSU restaurant role will be given special consideration.

Edwards questioned the legality of the decisions, and said the Board of Directors was not notified, thus violating the SCSU constitution.

Syed said the Board was notified in January of Bluff’s possibly closing and that he was given authority to make the decision with the help of several key executives. The Board meets tomorrow to “assess the actions taken and move forward with the decision.”

“It really is a power trip. If you look at the dynamics of how that office has been working, they’ve been firing people and putting in their friends,” said Edwards. “You’ll see it more often in the coming months.”

Syed noted that another $140,000 is available from the CSS for next year and said he is optimistic for an improved student-run restaurant, hopefully before the semester concludes.

With files from Karen K. Ho