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Union maintains 15% entitlement for Melia gratuity

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A BAHAMAS Hotel Catering and Allied Workers Union (BHCAWU) executive confirmed that while the Meliá hotel was offering a nine per cent gratuity payment to employees for three months, the union was maintaining its position that the gratuity be calculated at 15 per cent up until a new deal is reached or a judge determines otherwise.

BHCAWU secretary general Darren Woods confirmed to Tribune Business yesterday that Melia employees had been offered a nine per cent gratuity payment, although he explained that this was not something that the union had negotiated or agreed to.

“I believe that it is because of the intervention of the minister that they decided to pay something to the employees at this time,” Mr Woods said. “It’s not something that the union would have sat down and negotiated or agreed with. Our position is that the 15 per cent should have been calculated up and until there is an agreement to change it or the court determines otherwise.

“They were offering nine per cent. If the court determines that they have to pay 15 per cent they would make up the balance and if the court determines that they are overpaid then they would reduce the employee’s pay by that amount. It’s something that the Minister of Labour would have sat down and tried to get them to pay the gratuity because the ministry is of the view that they should not hold anything.”

The union and Meliá are scheduled to return to court over the gratuity dispute on April 30.

“Our position is that we didn’t want to get involved and sign off on any agreement because we don’t know what amount of gratuities they are holding up to this point so we could not agree on anything. We could not agree for them to pay nine per cent when the employees are entitled to 15 per cent. That would be kind of acquiescing that they were right,” said Mr Woods.

The union executive said that he was not certain how many employees had accepted the offer. Calls to Labour Director Robert Farquharson were not returned up to press time yesterday.

The gratuity dispute arose last December when Meliá  officials announced a reduction in the standard 15 per cent gratuity rate because it was moving to an all-inclusive model, where food and amenities are covered in one price.

Baha Mar said it was forced to cease the normal gratuity payments at the Meliá but only after 10 months of failed negotiations to reach an agreement with the union on a new arrangement. The union filed a trade dispute with the Department of Labour after management at Baha Mar withheld gratuities from employees until the parties could negotiate a new gratuity rate.

The BHCAWU has said the union will not accept a reduction in gratuities because, in most cases, it represents the majority of the employees’ take-home pay.

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