His intervention reportedly caused hotel union officials, who met Thursday night with shop stewards, to put off plans to start strike action.
The Bahama Journal has learnt that the government has asked Bishop Neil Ellis and Archbishop Drexel Gomez to intervene in the matter.
In a memo to all managers Friday morning, Paul O’Neil, chief executive officer of Kerzner International, said that, “the union’s demands are still over the top, unaffordable and in some cases just plain unreasonable.”
“It has been reported in the media that Kerzner has seen record profits this year,” his memo said. “The fact of the matter is that even though we have been doing better than our previous year, we are still far behind our major competitors throughout the resort industry when we compare our operating margins.οΎ”
According to the memo, the association’s offer consists of a lump sum payment to be paid immediately to each employee. The offer includes an average of $300 for each tipped employee and $500 on average for each non-tipped employee.
In addition, it includes: additional raises of 3 percent in the third year of the contract and 3.5 percent in the fifth year of the contract for both tipped and non-tipped workers; improvement of 25 cents in the housekeeping gratuities in the second year of the contract, with a portion going toward the common pool, and another increase of 25 cents in the fourth year with a portion going to the common pool.
The memo continued that the offer includes improvement in the bellmen gratuities of 10 cents in and out for all group and convention guests in the second year, and another 10 cents in the four year.
It also said the association is offering improvements in the retirement provision, the night shift differential, the Employees’ Assistance Fund, the penthouse and villa gratuities, and accident leave.
“The economic offer, including gratuities is a very fair offer,” Mr. O’Neil’s memo said. “It should also be noted that because we have not raised our food and beverage prices for three years, we will be increasing them this year and naturally our food and beverage staff will benefit from increased gratuities.
“The people in the common pool as well as housekeeping and bellmen will of course also benefit each year from the increase in housekeeping and bell gratuities proposed on top of the economic offer on the table.
“The union can call for a strike. That is the union’s right, no matter how short sighted such a course of action might be. One thing that should be made clear is that the industry is at its limit and a strike will not change that.”
On Friday morning, Hotel Employers Association President J. Barrie Farrington said it was important that both sides put the issue behind them, as suppliers from international markets have started contacting hoteliers regarding the pending industrial action.
“A number of our hoteliers have reported to us that they have inquiries from suppliers – tour operators, travel agents, airlines – about the events that are occurring and the reports in the media,” Mr. Farrington told the Bahama Journal.
“Their concern is that they have clients booked into Nassau and Paradise Island and if there is the prospect of industrial action, then they envisage their clients being subjected to less than ideal conditions, which could be very dampening on a holiday experience which should be memorable for all the right reasons.”
He reiterated that even the very talk of a strike is bad news for the tourism industry.
“All of the reports given through the media have placed a cloud over the entire country,” Mr. Farrington told the Bahama Journal. “We think that it is time that we bring an end to this festering problem.”
On Thursday, General Secretary of the union Leo Douglas said the union was demanding mandatory gratuity for bellmen, a request he said the hotel employers had rejected.
“They are telling us that that it will be an extra cost on the guest,” Mr. Douglas said. “We have guaranteed tips for the maid, guaranteed tips for the food and beverage people. So the only thing left is guaranteed tips for the bellmen. So stop discriminating against the bellmen.”
He also said that the union was not overly concerned that some investors have reportedly told the government that they are considering canceling plans to invest in the tourism industry.
“In any country, you would find that there are labour matters,” Mr. Douglas said. “Every businessman understands that trade unions – just like the church – are a part of a society. So I am not the least bit concerned about that.
“If the government and the association are so concerned, tell them let’s get it on, let’s get this matter cleared up.”
By Candia Dames, The Bahama Journal
