Several Fairmont Hamilton hotel workers will be $1,000 richer today in the first pay-out of a success sharing plan, while nearly 1,000 of their colleagues will also share in the $419,00 windfall.

Both Fairmont hotels have piloted the project in a partnership between the Bermuda Industrial Union (BIU) and the Hotel Employers of Bermuda (HEB).

And it is set to spread to Elbow Beach and Sonesta Beach Hotel and others in the HEB network.

Fairmont Southampton managing director Norman Mastalir said: "Fairmont Hotels in Bermuda is thrilled with the positive outcome of this plan.

"Our colleagues in both hotels have been focused on improving the performance for both their departments and the hotels and it's clearly paid off. Several people at Hamilton qualified for the maximum bonus."

The annual pay-out comes in pay-packets today and the Fairmont will continue the scheme next year.

Mr. Mastalir explained it was not a profit sharing arrangement.

"Most businesses hope to have a profit but with a gain sharing plan there has to be a gain - you have to do better than you did last year in your budget and create a more profitable organisation."

Employees will only get a pay out if financial gains exceed the hotel budget - 50 percent of those gains get given back to employees.

The individual pay out is based on a points system with rewards based on a combination of the hotel's financial performance and department performance. But Mr. Mastalir said it was not difficult to run.

Employees are told if the hotel and their department is on course for achieving its targets throughout the year.

Any employee not covered by another incentive plan and with at least three month's employment at the hotel can take part.

The deal has a cap of $1,000, the same figure will be held for next year.

But Mr. Mastalir explained this could lead to a possible $1 million pay-out if all 1,000 employees get the maximum. Alternatively not a cent could be paid out if the gains are not made.

"This programme allows employees to feel they have something to say and a part in the managing the hotel," said Mr. Mastalir.

"They feel valuable, they can make a contribution, that they make a difference."

Mr. Burgess called for all businesses to take this approach. He said: "We want this to catch like the 'flu through the whole country."

He said gain sharing improved staff morale and benefited the guests. "That's the objective to make sure the guests leave here with an experience they never had before so they come back."

Asked how savings were made, Mr. Mastalir gave the example of a house keeper who could identify avoidable losses.

"Are we losing towels, are we wasting soap are we putting things in the room that guests don't really use?" said Mr. Mastalir.

"Things they see everyday on their job. They can put up their hand and say 'I have an idea of how we can reduce this cost'. The employee would know uniquely because they are the ones there everyday delivering the service."

He said breakage of china and energy conservation were identified as problems at his hotel.

"Do we turn the lights off at all times when we leave the rooms and make sure the air conditioning is turned down. It's fairly simple things but a lot of times we don't do it.

"But with a thousand bedrooms in an operation all of those tiny things added up. Over 365 days they can make a significant difference if everybody is motivated to think about it."

Cooperation on the scheme started in 1999 between the BIU and the HEB.

HEB Executive Director John Harvey said: "Productivity is not a bad word, it's the way of the future."