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Massive gap between HEB and BIU

wrangle was laid shockingly bare yesterday.As the two parties fired broadsides across each others bows, it emerged at an industrial tribunal that some 30 issues were unresolved.

wrangle was laid shockingly bare yesterday.

As the two parties fired broadsides across each others bows, it emerged at an industrial tribunal that some 30 issues were unresolved.

These ranged from wage increases, tips, pensions, maternity and sick leave, to holiday entitlement, severance pay and even the definition of a part-time worker.

The Hotel Employers of Bermuda have tagged the BIU's pay demands excessive and out of line with other settlements on the Island.

The Bermuda Industrial Union, meanwhile, believe their members are fully entitled to a better deal -- and that the HEB can afford it.

Yesterday was the first day of an Essential Industries Disputes Settlement Board hearing into the contract tangle.

The two sides are working on a three-year contract, expiring in 1998.

For the most part, the board was faced with crossing a lengthy line of procedural hurdles.

The board's terms of reference -- subject to dispute in themselves -- are to settle the row between the union and the HEB's six largest properties -- Southampton Princess, Princess Hotel, Marriott's Castle Harbour Resort, Sonesta Beach, Belmont, and the Harmony Club.

On the five-person board are chairman and Boston arbitrator Mr. Arnold Zack, retired hotelier Mr. Gordon Asbury, and Senate President the Hon. Albert Jackson.

There are also two assessors -- regional vice-president of Princess Properties International Mr. Stephen Barker, and Grotto Bay Hotel's chief shop steward Mrs. Debra Tucker.

At the outset yesterday at Cathedral Hall, BIU president Mr. Ottiwell Simmons accused the hotel camp of violating the law.

He said the hearing's terms of reference should relate to all HEB members, including the 13 smaller properties which objected to signing the 1991 hotel award on the grounds that any deal with the BIU would bind them to the union forever.

Mr. Simmons said the union never recognised only six large hotels were involved in the dispute.

There was no registered union which looked after the interests of just these six properties.

"They are violating the law, and you are endorsing it,'' cried Mr. Simmons, referring to the hotel side and Mr. Zack.

Hotels lawyer Mr. Stephen Shawe went on to present his case, highlighting the yawning gap between the HEB and BIU.

Among issues in dispute are: Wage increases: The HEB propose one percent rises for live-in tipped and non-tipped employees in each of the three years of the contract, and two percent hikes for each year for live-out tipped and non-tipped workers; The BIU propose percentage increases of 7.5, 6.5 and 5.5 respectively in years one, two and three of the contract. These relate to all categories of employees.

In addition, the BIU propose extra pay for certain workers, including waiters and bartenders who handle the cash register.

Gratuities: The HEB propose increases of $11.70 (1995-6), $11.90 (1996-7), and $12.10 (1997-98) for guests under the Modified American Plan (MAP) scheme.

The hoteliers' planned hikes for group gratuities are $12.70, $12.90 and $13.10; The BIU propose MAP rises of $13.50, $14, and $14.50 for each year of the agreement, while its suggested group gratuity increases are $1 more than these.

Pensions: The HEB propose to bump up employer contributions to the Hotel Pension Fund to 35 cents per hour for each of the first three years, and 37 cents per hour for the beginning of year four.

Continued on page 3 Large gap seen between BIU and HEB The HEB also recommend boosting employees' contributions over the same period to 22 cents, 24 cents, 26 cents and 28 cents; The BIU propose employer contributions of 48 cents, 53 cents and 58 cents for each of the three years. It suggests employees contribute 20 cents for the same years.

Overtime: The BIU want overtime worked out on a daily basis, rather than a weekly one; The hotels reject this proposal.

Hours of work: The BIU want the normal work week cut from 40 hours to 35 hours, without salary reduction; The HEB reject this, saying it would amount to an automatic 12.5 percent labour cost increase.

Maternity leave: The HEB propose reducing the nine weeks entitlement to seven weeks; the BIU insist on no change.

Vacations: BIU want increases: The HEB do not.

Severance pay: The BIU propose changes to the current arrangement which would mean pay of two weeks per year for employees who have worked for six months to a year, and three weeks per year for those who have served over a year; The HEB oppose this; and Sick leave: The HEB propose a reduction in current sick leave, including a cut in the amount an employee can accumulate from 90 days to 70 days; The BIU want to expand entitlement.

Mr. Shawe pointed out there were other items unresolved, including a proposal by the BIU that each hotel make "every effort'' to provide a day care centre for employees.

The HEB, said Mr. Shawe, also wanted the union to share the cost of printing the Collective Bargaining Agreement booklets.

In a written submission to the board, Mr. Shawe stated that the BIU's proposed wage increases were excessive.

"They are far in excess of what the cost of living increases would justify and far exceed other settlements on the Island.'' In his opening arguments, Mr. Simmons said the BIU was very displeased that the efforts to conclude the contract had failed.

"Having said this, the union wants to make it clear that the HEB refused to pursue and continue discussions which may have resulted in a negotiated settlement.

"Hence, we are before you today with some 30 issues in dispute.'' Mr. Simmons went on to appeal to Mr. Zack to strike out a section of the previous Hobgood-Haughton contract awards.

These awards stated: " ... any amounts generated over and above by mandatory gratuity or service charge shall be treated as hotel income to be used in their discretion.'' Said Mr. Simmons: "The union is asking that your board rescind, reverse, discard or whatever word that means do away with that provision in the BIU/HEB collective bargaining agreement.

"Mr. chairman, this provision, is without question, in my opinion unethical and perhaps unlawful.'' The hearing was adjourned until 9 a.m. tomorrow.