A private member’s motion asking for a task force to be set up to investigate the distribution of gratuities in the tourism industry has been given full support in Parliament.
Members unanimously voted in favour of the proposal, which McKeeva Bush, MP for West Bay West, presented to the House on Thursday, 27 April.
In his motion, the independent legislator asked the government to set up the task force to scrutinise complaints stemming from the distribution of gratuities in the tourism industry.
This would be “particularly [for], but not limited to” the condominium sector and the results should be reported by 30 Sept., Bush read.
He told Parliament that he started his work life in the tourism industry and his mother had worked in that sector for 40 years, adding, “I know how important it is”.
Between 10% and 18% gratuity is being collected, he said, but often just a small part of that is given to staff.
He said he took the issue on in the past when he was minister of labour and then minister of tourism.
$30 million gratuity pool
MP for Bodden Town West Chris Saunders, who seconded the motion, said the issue is “near and dear” to him as his father also worked in the industry.
He estimated that the gratuity pool is in excess of $30 million a year, saying, “I don’t want people to think that we’re talking about small amounts.”
Saunders suggested that the organisations that deny staff their gratuities are the same ones that collect money for pensions and health insurance and do not pay it.
The task force could be used to look into those issues as well, the MP suggested.
He added that some problems in the Cayman Islands have been ignored for too long because they do not predominantly involve Caymanians.
Dwayne Seymour, Minister for Border Control and Labour, said a shared gratuities system, if properly implemented, can allow for the delivery of good service in the tourism sector.
“It promotes good service teamwork and provides an incentive for staff to consistently perform,” he told Parliament.
However, some businesses have been “cheating on the grats” by charging resort fees and short-changing the workers, Seymour added.
He said the Department of Labour and Pensions deals with the breaches they detect, however much more can be done legislatively to ensure workers get their gratuities.
“A fair and honestly administered gratuity system is vital for the success of the tourism and business industries as well as the workers themselves,” he said.
A ‘timely’ motion
Leader of the Opposition Roy McTaggert rose on behalf of his party to indicate his support for the “timely” motion, after hearing stories involving abuses of the system.
Kenneth Bryan, Minister for Tourism and Ports, said he had also received a number of complaints since the islands reopened after the borders had been closed due to the COVID-19 pandemic.
He said his ministry would fully support the labour ministry in resolving the matter.
Bernie Bush, Minister for Youth, Sports, Culture and Heritage, added that there is a culture in the way Caymanian tourism workers are being treated.
He said they’re being antagonised, short-changed on hours and being “pushed to the limits” so they will resign, and foreign workers can be brought in instead.
Part four of the Labour Act (2021 Revision) describes who should receive gratuities, how they should be distributed, the rate of gratuity and details of employer record-keeping.
It says all gratuities should be distributed twice monthly in accordance with a scheme approved by the director of labour or a formula prescribed by Cabinet.
Any employer who does not comply commits an offence and is liable on conviction to a fine up to $25,000 or 12 months in prison.
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