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MEMORANDUM OF AGREEMENT
BETWEEN
THE GOVERNMENT OF ANTIGUA AND BARBUDA
AND
THE ANTIGUA HOTELS AND TOURIST ASSOCIATION
AND
THE ANTIGUA AND BARBUDA WORKERS UNION
AND
THE ANTIGUA PUBLIC UTILITIES AUTHORITY
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT (the “MOA”) is made this day of November 2008 by and between THE GOVERNMENT OF ANTIGUA AND BARBUDA (the “Government”), with its address at c/o Office of the Prime Minister, Queen Elizabeth Highway, St. John’s, Antigua of the FIRST PART, the ANTIGUA HOTEL AND TOURISM ASSOCIATION (HOTELS & TOURISM ASSOCIATION) (the “AHTA”) of Newgate Street, St. John’s, Antigua of the SECOND PART, THE ANTIGUA AND BARBUDA WORKERS UNION (the “ABWU”) of Newgate Street, St. John’s Antigua of the THIRD PART and the ANTIGUA PUBLIC UTILITIES AUTHORITY (the “APUA”)of Cassada Gardens, St. John’s, Antigua of the FOURTH PART.
PREAMBLE
WHEREAS, it is the policy of Government to promote, economic growth and development in Antigua and Barbuda to ensure the sustainable welfare of its citizens and residents;
AND WHEREAS, tourism is recognized by the Parties to be the engine of economic growth in Antigua and Barbuda, with the hotel sector being the largest contributor to the industry;
AND WHEREAS, the Parties are mindful of the global economic crisis and in particular the financial crisis in our two major source markets namely the United Kingdom and the United States, and the likely effect of this on our visitors arrivals and overall visitor expenditure;
AND WHEREAS, the cost per gallon of bunker sea oil (heavy fuel) used by the APUA to generate electricity has moved from US$3.27 in 2005 to US$11.54 in August 2008 resulting in a corresponding increase in the fuel variation charge;
AND WHEREAS, the unavoidable increase in the fuel variation charge has negatively impacted on operational costs;
AND WHEREAS the Parties are determined to avert and lessen the negative impact of the global crisis on the economy of Antigua and Barbuda and to enter into this MOA to set out their agreements and understanding with respect to the said crisis;
NOW, THEREFORE, the Parties hereby agree to establish an Emergency Economic Plan (EEP) for the hotel sector as follows:
EMERGENCY ECONOMIC PLAN FOR THE HOTEL SECTOR
1. DURATION
The duration of the EEP shall in the first instance be for a period of twelve (12) months and shall take effect in two phases:
PHASE ONE shall take effect from 1st November 2008 and shall end on the 30th April 2009.
PHASE TWO shall take effect from 1st May 2009 to 31st October 2009.
The terms set out below are in relation to phase one only.
The terms in relation to phase two shall be agreed upon no later than 28th February 2009.
The Parties shall meet on a monthly basis to monitor the implementation, operation and effectiveness of the EEP.
2. REVIEW COMMITTEE
There shall be a Review Committee which shall meet as often as required to keep the EEP under constant review and to make such decisions as may be necessary in furtherance of the EEP.
The Review Committee shall consist of the Minister of Finance, the Minister of Tourism, the Chairman of the AHTA, the General Secretary of the ABWU and the General Manager of the APUA.
3. THE TERMS
A. Scheduling of staff
The practice within some hotel properties of spreading a 24 hour shift over 5 days shall cease. A 24 hour shift for hotel workers shall be spread over no more than 3 days;
B. Negotiated wage increase
I. The negotiated increase in wages and salaries for hotel employees, will not be affected by this MOA.
II. Increases, as negotiated between the AHTA and the ABWU under the new collective bargaining agreement shall take effect on 1st January 2009 as agreed.
C. Contributory Pension Plan
The contributory pension plan due to take effect on 1st January 2009 will be deferred for 12 months.
D. Electricity Bills
I. There will be a 15% rebate on all electricity bills for the duration of this MOA provided that the bills are paid within the allotted 30 days.
II. Hotels with outstanding amounts owed to APUA shall be required to work out a moratorium for payment of these arrears.
III. This will take effect from 1st November 2008.
E. Diesel
For all hotel properties that operate generators in accordance with the Antigua Public Utilities Act (APUA) and remain open for business, there will be a waiver of customs duties for the purchase of diesel.
F. Capital Items
In order to assist in the improvement and refurbishment of properties and subject to the vetting of the Antigua and Barbuda Investment Authority, capital items will be exempt from the payment of customs duties.
G. Security Apparatus and Equipment
Subject to the approval of the Cabinet of Antigua and Barbuda all new security apparatus and equipment to be used for the enhancement of safety and security will be exempt from customs duties.
H. Antigua and Barbuda Sales Tax (ABST) on guest bill
The preferential rate of 10.5% applied to hotels under the ABST Act 2007, and paid by hotel guests will be extended for a period of 12 months from 29th January 2009 to 29th January 2010.
I. Marketing and Promotion
I. The Government through the Ministry of Tourism will work closely with the AHTA to develop joint marketing and promotion strategies.
II. The strategies, so developed, will be funded jointly from the Government and the AHTA in such proportions as the AHTA and the Government shall agree.
J. Maintain Regular Employment Levels
I. The AHTA undertakes to encourage its members to maintain the pre-existing levels of regular employment in the hotels during the period of this MOA.
II. Any contemplated retrenchment due to adverse financial circumstances, which would result in employment levels falling below the base year levels shall be discussed with the Review Committee and justified before any action is taken.
III. The base year shall be the comparable period during 2007/2008 winter season.
SIGNED BY:
………………………………………………
On Behalf of the
Government of Antigua & Barbuda
………………………………………………
On Behalf of the
Antigua Hotels & Tourist Association
…………………………………………….
On Behalf of the
Antigua & Barbuda Workers Union
……………………………………………….
On Behalf of the
Antigua Public Utilities Authority
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