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Home La Provincia

Ashotel’s wage hike in response to a multi-million Euro demand from trade unions – La Provincia

July 6, 2024
in La Provincia
Reading Time: 6 mins read
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Ashotel’s wage hike in response to a multi-million Euro demand from trade unions – La Provincia
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The 9% salary increase announced by the Hotel and Extrahotel Association of Tenerife, La Palma, La Gomera and El Hierro (Ashotel) aims to ensure “social peace” after the events of April 20, but will only be implemented if the unions withdraw a complaint that has been on the table for over a year regarding irregularities in the collective agreement. There are only three days left – next July 9 – for the hotel employer to face the start of the trial for this lawsuit brought forth by UGT and CCOO, which if ruled in favour of the unions, could entail an “astronomical” expense for the hospitality establishments in Santa Cruz de Tenerife. 

This Friday, the president of the employers’ association, Jorge Marichal, promised at a press conference to “double” the planned wage increase for this and next year (2024-2025) in the sector’s agreement – set at 4.5% – to reach a “more than considerable” 9% increase. 

Ashotel’s president linked this commitment to the massive protests against the tourism model on April 20, stating that this is a way to calm the waters. “We are not deaf or indifferent to April 20, and that is why we are here today making this proposal, which joins other initiatives already in progress,” highlighted Marichal. 

What he did not explain or even mention is that the entire Hospitality sector in the province has been facing a complaint against the collective agreement for over a year filed by CCOO and UGT, which could cost the sector millions for having “discriminated” against a portion of its employees since 1995.

“The employers wanted to take credit for being socially responsible by linking their proposal to April 20 when this is due to an unforeseen situation from a collective conflict,” Francisco González, UGT’s Deputy General and Labour Policy Secretary, points out, adding: “they want to portray themselves as the heroes of the story as if the script was not already written.” His words are echoed by the General Secretary of CCOO’s Services Federation, Borja Suárez, who denounces that Marichal is “lying to society” and trying to “use” the unions as “accomplices”.

A “botched” agreement

[–>

The reason for the complaint is a “botched” agreement that sought to freeze the seniority supplement but remained “dynamic”. In other words, it has varied according to the wage increases over all these years, but only for those who had it in their payroll before that date. “Those who negotiated at that time agreed to freeze it, but they did it in that way,” argues González, who insists that “the Supreme Court has already ruled that being dynamic, it must be paid to everyone.”

If the unions are successful, companies in the province’s sector would face a “multi-million Euro conflict,” as they would be required to pay the arrears to all personnel who have been working for more than six months. “Some people have estimated that they are owed 7,000 Euros, in other cases, the amount reaches 20,000,” highlights González, who already warns that “there will be a lot of workers” who will resort to filing a complaint. UGT estimates that this could amount to over 30 million Euros.

The trial will begin next Tuesday, July 9, and the unions have warned that they will not back down against the employers who have tied their commitment to them withdrawing the lawsuit. “The proposal is on the table, and we now trust that with the same loyalty that we have negotiated, they will act for a common goal: the social and labour peace that has truly always prevailed in our sector,” pointed out Marichal, indicating that the issue they are fighting for – seniority – was resolved 15 years ago.

However, both CCOO and UGT have unanimously agreed, as they have informed this newspaper, that they will not withdraw the lawsuit. “If there is no substantial wage increase proposal, we will not withdraw it,” González states. Their sentiments are confirmed by Suárez: “We will not withdraw the lawsuit, especially not with these practices.”

When they started negotiating, the initial purpose of the unions was indeed to withdraw the lawsuit, but only if they reached an agreement. This way they would achieve immediate effects for all workers. “It must be taken into account that the resolution of a trial like this can take between 2 or 3 years if it reaches the Supreme Court,” González points out. 

Over the past four months, the unions have been negotiating a wage increase precisely to avoid ending up in court. However, as Suárez asserts, since they have not even reached a preliminary agreement, they have decided to move forward. In fact, this latest proposal from Ashotel has not even reached the negotiation table, despite Marichal’s statements. 

For the General Secretary of the Federation of Services of CCOO, Ashotel’s proposal is inadequate. “The employers’ proposal is like a tip,” he emphasizes. In his view, it does not address the needs of the workers in the province, “many of whom are struggling with housing access or to afford basic products.” As Suárez explains, since a 4.5% increase is already set by the current agreement, Ashotel’s promise would only mean an additional 4.5% increase. In other words, “about €50 more for a salary of €1,300,” as Suárez points out.

UGT is more open to accepting a 9% salary increase, but insists that it cannot be the only improvement and describes Ashotel’s proposal as “deceptive.” UGT also advocates for increasing the benefits of the travel supplement to at least match what workers in the province of Las Palmas de Gran Canaria receive. “In Santa Cruz de Tenerife we have 48 days of vacation with a vacation fund of €300, while in Las Palmas it’s 48 days of vacation with a vacation fund of €1,440,” González explains.

Neither CCOO nor UGT dare to make a prediction about the possible judicial ruling, but they do not rule out the possibility that the lawyers will rule in their favour. “The trial will begin on Tuesday and if it is successful, it will be a substantial improvement for those who have been working in the hotel industry for more than six months,” Suárez points out.

[–>

All this commotion in the sector is happening while social groups are reorganizing to resume protests on the streets. This was announced by “Canarias tiene un límite” on their social media, who, without specifying a date for the new demonstration, have hinted that it will take place in touristic areas.

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