Tower Isle Hotel v National Workers Union


Industrial Disputes Tribunal

Lynch, C.

No. 25 of 1977

Tower Isle Hotel
National Workers Union

Labour law - Collective agreement — Distribution of gratuities.




The Honourable Minister of Labour, by letter dated 8 th August 1977 in accordance with Section 11 of Labour Relations and Industrial Disputes Act, 1975 referred to the Industrial Disputes Tribunal for settlement, an industrial dispute between the EMPLOYER and the TRADE UNION.


The Terms of Reference to the Tribunal are as follows:

“To determine and settle the dispute between Tower Isle Hotel on the one hand and the National Workers Union on the other hand, as to whether or not the distribution of the gratuities has been conducted since its inception 15th January 1975, in contravention of the agreement made between the Staff Gratuity Committee and the Management of the Hotel.”


The division of the Tribunal selected in accordance with Section 8(2) of the Act was

Mr. Basil Lynch


The Employer was represented by-

Mr. H. St. C. Whitehorne (legal)

Mr. N. Brimo

Mrs. D. Fox


The Trade Union was represented by–

Senator Carlyle Dunkley

Mr. Lloyd Goodleigh

Mr. H. Reynolds

Mr. A: Bedasse

Mr. John Atkins

Several Worker/Delegates

Submissions and Sittings

Written briefs were submitted by the parties and oral submissions made at the four (4) sittings held on 8th, 16th, 25th August and 15th September 1977.


Resulting from negotiations during 1974 between the hotel Management on one hand and the Staff Gratuity Committee on the other hand, it was agreed that the current system of “tipping” should be terminated and that a “service charge” should be instituted instead. From this service charge, a pool of gratuities would be created from which both “front of house” and “back of house” staff would share in agreed proportions.


The Service Charge system was introduced with effect from 15th January and has been operated on the following basis: –

  • (i) A 10% service charge is added to each customer's bill (Room, Food and Beverages Sales) and placed in a common pool.


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