Labour Minister Vincent Peet, who has for weeks mediated the tedious negotiations between the Hotel Union and the Hotel Employers’ Association, told parliamentarians that the contract is expected to be signed on Friday.
The Minister, obviously relieved that the dispute has come to en end, said that the healing process between the two groups can finally begin.
Deemed perhaps the most difficult industrial negotiation in recent history, the Labour Minister had been meeting with both sides almost on a daily basis for the past two months urging them to bring the matter to a close.
Minister Peet said that the multimillion-dollar agreement makes provisions for an 8 1/2 percent increase per worker over five years plus two lump sum payments – one in the second year of the deal, the other in the fourth year.
The union had asked for a 12 percent salary increase over four years, but the association initially offered 6 1/2 percent, creating tension between the two sides.
After much pressure, the union finally accepted the 8 1/2 percent increase.
In year one, non-tipped hotel employees will receive a payment of $500, with tipped workers receiving $400.
According to Minister Peet, during the second year of the contract, the housekeeping gratuity will be increased by 25 cents. Meantime, there will be a 10 cents tip increase for bell services workers in groups and conventions.
Minister Peet said: “For year three, there will be a four percent increase in salaries and in year four, there will be a lump sum payment of $400 per employee in addition to a further 25 cents increase in gratuities for Housekeeping employees and an additional 15 cents increase for bell services employees, groups and conventions.”
There will also be an additional four and a half percent salary increase in year five.
According to the Minister the new industrial agreement also offers a number of other benefits, including an improved leave for an accident on the job from 12 weeks with full pay to 18 weeks with full pay. This will increase to 20 weeks in 2007.
The agreement, which affects about 6,000 workers at 11 properties on Paradise Island and New Providence, also provides room for further increases in the remaining years of the contract.
Minister Peet said provisions have also been included for improving the training and education of employees and a commitment to improve productivity standards for all employees and managers.
The road to reaching the agreement has been a long and tortuous one, highlighted by threats of industrial action, a strike vote taken last month and a go-slow called toward the end of December. The go-slow affected three hotels and occurred during the state visit of South African President Thabo Mbeki.
The Journal had also learnt that some potential investors in discussion with the government had indicated that they were reconsidering their investment in light of the industrial unrest in the hotel sector.
Commending the parties involved, Minister Peet applauded Association President J. Barrie Farrington for his leadership and the compromises made.
He also recognized Hotel Union President Pat Bain, whose task, he said, was extremely difficult, as he provided leadership and took some bold steps to make the agreement possible.
Minister Peet added: I must equally commend our Prime Minister for the personal interest he has shown and the time he has spent with all the parties to ensure that we arrive at an agreement that was fair and in the best interest of all the parties concerned and The Bahamas.
Prime Minister Christie was forced to enter the talks after efforts to conclude the agreement failed. His intervention reportedly caused hotel union officials to eventually put off plans to start strike action last month.
The details of the industrial agreement were revealed after House Members spent much of the morning session paying tribute to former parliamentarian, the late James Shepherd, who was buried last week.
One of the founding fathers of the Free National Movement (FNM), Mr. Shepherd was heralded by both government and opposition members as a pioneer, a freedom fighter, one who epitomized courage and “one of the most sincere politicians who never asked for anything in return.”
By Macushla Pinder, The Bahama Journal
