But union members must now meet to ratify the tentative agreement.
Union President Pat Bain is expected to take details of the proposed contract to members Tuesday night for ratification and the government expects the long-delayed agreement to be signed on Thursday.
The union had asked for a 12 percent salary increase over four years, but the association had initially offered 6 1/2 percent, creating tension between the two sides
After much pressure from Prime Minister Perry Christie and Labour Minister Vincent Peet to bring the matter to an end, the union has agreed to accept an 8 1/2 percent increase plus two lump sum payments – one in the second year of the deal and one in the fourth year.
The Housekeeping gratuity will also be increased by 25 cents.
The Journal has learnt from sources that the impact to the employers would be a 24 percent increase in the present salary bill over five years.
The agreement affects about 6,000 workers at 11 hotel properties on Paradise Island and New Providence.
Minister Peet, who was meeting with both sides over the weekend, remained tight-lipped on the agreement, reiterating that all parties have agreed not to release any information on the deal until it has been signed.
He told the Journal only that “significant movement” had been made in reaching an agreement, but refused to comment further.
Sources close to the negotiations provided details to the Journal, insisting that publishing them would not hurt the process.
The road to reaching an agreement has been a long and torturous 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.
Several weeks ago, the Hotel Employers Association announced in a press statement that it had made its final offer.
In a release on December 20, the association said, “There is no doubt that the union’s inflexibility on critical issues is what has brought our country to this point of no return.”
That release also said, “The association and the rest of the country have grown tired of these constant threats. We’ve all seen the dark clouds of a strike build on the horizon for some time, but now the union and the country will have to wait to witness how much damage will result and for how long.”
Since then, association members have been pushed closer and closer to agreeing to what the union was asking for.
With a gag order put in place two weeks ago by Minister Peet, both sides remain quiet on the new deal.
The Labour Minister has been meeting with both sides almost on a daily basis for the past two months urging them to bring the matter to a close.
The association and the government had warned that even talk of a strike was bad for the country’s economy.
The Journal had also reported 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.
Last month, Minister Peet said, “There are substantial investors who have expressed an interest in The Bahamas, in fact, some of whom are now negotiating Heads of Agreement to open large touristic properties in The Bahamas and they are watching the scene to see whether we are as stable as we have been known to be and whether their investments will be safe and secure.”
The agreement comes as parliamentarians prepare to return to the lower chamber on Wednesday following a few weeks of holiday recess.
Members of Parliament expect the Labour Minister to make a communication Wednesday regarding the status of the talks.
The Bahama Journal
