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BIU says beware of Elbow deal

with the BIU is no better than what other hotel workers will receive under the Haughton Award, a top union official said yesterday.

But in a letter to employees, hotel general manager Mr. Timothy Russell said Elbow Beach workers got more, including a new profit sharing plan.

Mr. Derrick Burgess, first vice-president of the Bermuda Industrial Union, said the 10.3 percent pay increase that took effect at Elbow Beach on Saturday "sounds good to anybody,'' but "it is no better than what the rest of them are getting.'' Confusion arose because Elbow Beach rejected the 1991 five percent pay increase from the Hobgood Award which other hotels accepted, Mr. Burgess said.

More recently, the Haughton Award, which Elbow Beach also rejected, provided for a two percent increase for 1992 and a three percent increase for 1993.

When Hobgood and Haughton are considered together, it is apparent workers at other HEB hotels will receive 10 percent more this year than they did in 1990, Mr. Burgess said.

At Elbow Beach, the ten percent pay hike "sounds good because they didn't get that money (the five percent hike) earlier,'' Mr. Burgess said.

However, Prof. Ronald Haughton's award in January said that although Elbow Beach did not pay a five percent increase in 1991, the hotel "gave the equivalent...in the form of increased gratuities.'' When it rejected the Hobgood increase, Elbow Beach increased the guest service charge by between $2 and $2.50 and split the proceeds among hotel workers.

Mr. Burgess described that as "stealing from the guests.'' He said he did not know offhand how much more money it meant in the pockets of Elbow Beach workers, but he said it would be much less than five percent.

The union vice-president also expressed skepticism over the new Elbow Beach profit sharing plan. "If they want to call it better on that basis they can, but it's not true,'' Mr. Burgess said.

Mr. John Jefferis, managing director of the hotel's development company, said in a news release yesterday the Elbow Beach "success programme'' has three components.

A 20 percent bonus for any gross profit over the previous year's result will be shared equally among all employees and paid quarterly, Mr. Jefferis said.

Further, a $20,000 bonus would be split among all staff for each quarter the Guest Satisfaction Index derived from comment cards hits 92 or higher.

Finally, days off and prizes would be awarded for perfect attendance.