The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The hotel union’s president says it is “diametrically opposed” to the industry’s proposal that tipped employees receive less than a full minimum wage increase, saying: “We’ve been taken for a ride for too long.”

Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) chief, told Tribune Business “it just cannot happen” after this newspaper reported that the hotel sector had “intervened” over the upcoming minimum wage rise.

Responding after employers effectively called for two minimum wage floors, with employees earning the bulk of their income from gratuities receiving less than the full planned rise, he questioned how the Government could discriminate between workers and/or industries and voiced doubt it will “go down that particular road”.

Pointing out that, unlike their employers, hotel workers cannot raise prices every time there is a cost increase, Mr Woods said his members were facing a continual squeeze due to the cost of living crisis sparked by surging US and global inflation, much of which is at 30-40 year highs. He backed the Davis administration’s decision to focus on developing a livable wage, arguing that The Bahamas has “to raise the bar” and lift more families out of poverty.

“I told someone that we are diametrically opposed to it,” the hotel union chief said of the employers’ minimum wage stance. “I’m trying to understand the mindset of some people. How could you tie the minimum wage to gratuities which fluctuate, and you have to go to someone else to get it? At the end of the day, that’s a no brainer; it cannot happen.”

Speaking as the Airport Authority last night warned it was bracing for potential industrial action across The Bahamas’ airport network, and had put contingencies in place to minimise any disruption to travel and airline service, Mr Woods suggested that the hotel industry’s gratuity-related minimum wage concerns were, to an extent, payback for its failure to negotiate a new industrial agreement and salary increases with the union for almost a decade.

“For us we see this as karma for some of them,” the union president added. “Had they done what they needed to do a long time ago, people would be further ahead in their wages. If the Government decides to increase the minimum wage to $250, $250 per week is what it is across the board. How can you discriminate against some people? It suggests just what they are thinking about.

“Now is the time for the employees to start benefiting from this industry. For too long we’ve been taken for granted, and for too long we’ve been taken for a ride. It’s [gratuities] are based on how many people come in, and if tourists come in in reduced numbers, how are we going to make up for the shortfall. The gratuity falls from a charge the employer sets. The worker gets a percentage, and the employer gets the lion’s share.

“This one won’t go down too well, that’s for sure. I’ve been getting messages that ‘you need to deal with this on our behalf’, or ‘you need to address this on our behalf’. I doubt very seriously that this government, this caring government, this government for the people, will go down that particular road I don’t see it happening.”

Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, last week said the industry’s position was justified by the “unique arrangement” in the industry where tipped workers receive “generous gratuities” on top of minimum wage base pay.

He was quick to emphasise that the sector was not “indifferent”, or opposed to, a minimum wage increase - especially for non-tipped employees earning the current $210 weekly floor. However, Mr Sands said the matter was “a pivotal, pivotal concern” that both the Government and National Tripartite Council should account for.

“Our hotel sector, we obviously pay minimum wage, but also create a significant amount of opportunities for gratuities.... We’re not indifferent to some type of minimum wage increase, obviously, but we believe the issue of gratuities should be a consideration in our sector,” the BHTA chief argued

Mr Sands joked with Michael Halkitis, minister of economic affairs, that “you’ll be creating some monsters there” should the Government give tipped employees the full minimum wage rise on top of the automatic 15 percent gratuity they earn from customers. Workers in the hotel industry, especially those such as restaurant waiters/servers and others in food and beverage, earned thousands of dollars in tips and gratuities that accounted for the majority of their annual take home pay pre-COVID.

“We accept there are circumstances where persons are only paid the minimum wage and no gratuity, and the level should increase for them, but possibly consideration should be given for those making minimum wage and also gratuities - a different level of increase. Hopefully, the National Tripartite Council will look at that,” Mr Sands told this newspaper later.

Mr Woods, though, said he was “not overly” concerned about the employer position unless the Government showed it was taking it seriously. “I’m concerned if the Government listens to it. That’s where the concern comes from,” he added. “The concern for us will come if the Government starts to meander, pander and entertain this kind of thinking.

“We’re talking about what’s best for Bahamians. It’s time for us in this country to reap the benefits of this country. They talk about the minimum wage and they talk about increases for employees. They say what they cannot give employees because of this or that, but if the cost of business rises they’re able to pass that on to their guests but don’t pass it on to the employees.

“They’re able to satisfy the shortfall but the employees can’t do that. Everything is going up. Everything is going up. Gas costs are going up, food costs are going up. Why is it always the employees who are the ones to suffer with costs? It’s the employer’s time now.”

Mr Woods backed the Government’s focus on introducing a livable wage, despite indications this will be a long-term project. Suggesting that the likes of domestic workers, gas station and food store employees will continue to “live below the poverty line” without such intervention, he added: “We have to raise the ring, we have to raise the bar so more people can support their families.”