Hotel and gaming group Sun International on Monday called on South Africa Commercial, Catering and Allied Workers Union (Saccawu) to attend a high level meeting to try and
resolve issues and allegations raised in the union's memoranda, particularly concerning wages.

Sun said it had responded to the memoranda today, which were previously handed over to management representatives at both Sun City and the Wild Coast Sun on December 31.

Saccawu members have been on strike since December 4.

However the union claims that Sun International, led by its CEO David Coutts-Trotter, had not demonstrated any serious commitment towards finding an amicable settlement to the current dispute and strike.

The union is negotiating an across the board increase of 13%; payment of tips to employees; an end to averaging of working hours; a substantial increase in the proportion of core employees in all Units and departments; and a reasonable increase to the night shift allowance.

The hotel group said 50% of workers had already accepted Sun International's final wage offer, at 8%.

In its response to the memoranda, Sun International also defended its calling for the assistance of the SAPS to intervene in cases where striking workers were engaging in unlawful conduct, including assault, damage to property and issuing death threats to both the SAPS and to a member of the management team. In Cape Town, 36 workers were arrested.

CE David Coutts-Trotter said that of particular concern was the involvement of Saccawu shop stewards in the assault on a non-striking worker, which resulted in her hospitalisation.

"A fulltime shop steward has been implicated and is currently on bail pending a further appearance at the Goodwood Magistrate Court later this month.

"The company had had no choice but to call in the SAPS in order to protect its employees and its property," it said.

Sun International also defended its use of private security after it had experienced or had reported to it the burning of non-striking employees' houses and motor vehicles, assault on various non-striking employees, threatening phone calls to non-striking employees and their family members and breaking of windows with stones wrapped with threatening messages and
the involvement of various Saccawu shop stewards in unlawful conduct.

"The company had only resorted to the Labour Courts once during a month-long strike, in seeking an interdict to prevent this unlawful conduct.

"This is in contrast to accusations from Saccawu that the company was frequently bringing applications to the Labour Courts," Sun International said.

Other accusations against Sun International's management were not supported by any evidence at all, the group added.

Sun International defended its decision to deny the union permission to picket on its premises given the conduct by striking workers both in the previous 2006 strike and the current strike.

It said it was willing to discuss this further with the union.

"Most importantly, Saccawu appears not to have taken various financial and economic realities into account, most notably in considering that Sun International's final offer significantly exceeds current CPI and the increases granted to all other employees.

"It is a matter of public record that at the end of the financial year to June 2009, our revenues in South Africa were flat on last year and our headline earnings per share were down 16%, reflecting extremely tough trading conditions.

"At the end of the financial year, we said very clearly that subdued trading was expected to persist through the 2010 financial year as we anticipated little improvement in the current economic conditions," the group said.

"These trading conditions have persisted and for the quarter to end September 2009, revenue excluding our new Chile operation was 6% down on last year.

EBITDA for the latest quarter was down some 15% year on year and little improvement is expected in the next few months.

"This sharp decline has not been mitigated by an increase in sporting and other events in South Africa.

"In fact for the 2009 calendar year to date, both casino and hospitality revenues are below the same period last year.

"Our financial results bear testimony to the difficulties that the company has experienced due to the prevailing economic recession.

The leisure, hospitality and gambling industry, in line with most industries currently, is facing significant challenges.

"Against this background, various strategies implemented by the management of Sun International have meant that we have avoided any retrenchments.

This should be seen in light of the fact that in 2009, approximately 1 million jobs were lost in the formal sector countrywide," Sun International said.

The company said it was awaiting feedback from the union.

Source: AFP