Hotels workers across the Island today agreed to extend their wage freeze until June.

Wages were frozen last February due to poor occupancy rates, but the agreement was due to end next week. However, occupancy rates are even lower in 2009 than they were in 2008, falling from 59 percent to 51 percent.

As a result, the Hotel Employers of Bermuda wrote to the Bermuda Industrial Union requesting the freeze stay in place.

This afternoon BIU President Chris Furbert told The Royal Gazette workers had agreed to extend the freeze until June. The announcement followed three meetings for hotel workers held across the Island today.

“They have agreed to the freeze until June, which is when the Government’s agreement to waive payroll tax for hotel workers ends,” Mr. Furbert said.

Last year the Government decided to help out the ailing industry, which has seen air arrivals plummet, by waiving payroll tax. This meant that although workers did not get a pay increase they did not have to pay the 4.75 payroll tax.

Mr. Furbert said the union will review the wage freeze and see if Government extends the payroll tax waiver in June before making any other decisions.

* See tomorrow’s Royal Gazette for the full story.