Sun, union settle wage dispute

Johannesburg - JSE-listed hotel group Sun International [JSE:SUI] nd the SA Catering and Commercial Allied Workers' Union (Saccawu) have settled their wage dispute.

Sun International confirmed in a statement on Monday that an agreement had been signed late on Friday evening.

The two year wage agreement marked the end of a seven week strike.

The deal includes a wage increase in year one of 8.75% while in year two, the wage increase would be the consumer price index (CPI) as measured between July 1 2009 and April 30 2010 plus 1.75%, with a guaranteed minimum increase of 7.75%.

Sun International said that other issues agreed included the scope of the bargaining unit, averaging of hours of work and an increase to the night shift allowance from R2.30 to R3.00 per hour.

In addition, the agreement covered other improvements to employment conditions such as the home ownership scheme, educational assistance scheme and certain other allowances.

Sun International's chief executive, David Coutts-Trotter, said the company was pleased the dispute had been settled.

"Seen against the recession, the pressures on the hospitality and gaming industry, other increases in the market place and CPI, we believe the increase is a generous one.

"We are satisfied, therefore, with the agreement, which also covers improvements in other employee benefits."

The hotel group said normal operations had continued throughout the period of the strike, with only very limited disruption.

"But of course, industrial action always puts pressure on the business and has the potential to strain relationships.

"It is encouraging to note, then, that our concluding negotiations were handled in a professional and constructive fashion," Coutts-Trotter said.

He said the two-year duration of the agreement until 2011 would provide for a welcome period of stability without the pressure and potential conflict of annual wage negotiations, "something which will further promote sound workplace relations".

Saccawu could not immediately be reached for comment.

- Sapa