Negotiations between the Government and Hilton International Trinidad Limited over the future of the hotel are at an advanced stage, with line minister Saddam Hosein signalling that an announcement on the hotel’s future could come soon.
Speaking to Guardian Media yesterday, the Minister of Land and Legal Affairs, who also has responsibility for State-owned Evolving TecKnologies and Enterprise Development Company Limited (eTecK), said discussions were progressing but he declined to disclose details while negotiations remain ongoing.
“I think those negotiations are very advanced,” Hosein said. “Very soon we will be making certain announcements on the way forward.”
The talks come as more than 300 workers remain uncertain about their jobs after Hilton International Trinidad warned it could stop operating the landmark hotel on September 18, if a new lease agreement with eTecK is not finalised.
Hilton’s warning, contained in a letter to the Communications Workers’ Union (CWU), triggered concern among employees and prompted questions over the future of one of the country’s best-known hotels.
However, eTecK has maintained that neither the company nor the Government has decided to discontinue the hotel’s operations permanently.
Hosein said eTecK had responded immediately after Hilton issued what he described as a conditional letter and stressed that both parties have been engaged in intensive discussions.
“There has been a lot of strong negotiations on both ends, Hilton and also eTecK,” he said. “ETecK, being a State enterprise, has to protect the interests of the State.”
The minister also sought to clarify the relationship between the parties, saying Hilton employees are not employed by eTecK.
He explained that the hotel and the land are leased by the State to eTecK, which in turn subleases the property to Hilton. While eTecK controls the lease arrangement, Hilton is responsible for employing the staff and operating the hotel.
Hosein said legal issues surrounding that employment relationship formed part of the ongoing discussions.
“I wouldn’t want, as a line minister at this point, to comment on the details of those arrangements simply because I don’t want to prejudice the negotiations,” he said.
He added that the Government was working to protect both the national interest and the employees affected by the uncertainty.
Hosein also pointed to the deteriorating condition of the property, saying one of the biggest challenges facing it is the need for major maintenance and refurbishment.
He criticised the previous administration over its announced $400 million property improvement programme, saying no clear financing plan or implementation details were left behind.
“When I went in there I saw no details of that, how they’re going to fund it and so on,” he said.
The CWU has warned that Hilton's letter has created "considerable anxiety" among workers and questioned whether the company's correspondence satisfies the requirements of the Retrenchment and Severance Benefits Act.
Union secretary general Joanne Ogeer said employees are entitled to certainty, transparency and compliance with the law rather than speculation about their future.
