Workers and hoteliers struck a preliminary deal over employment conditions on Friday, thus averting unrest ahead of the holiday season.
The deal was made during lengthy negotiations that started on Thursday afternoon and concluded in the early morning hours of Friday.
According to the labour ministry, industrial peace returned to the hotel industry after the sides accepted a proposal submitted by the minister to bridge their differences.
“The responsible stance displayed by the social partners paved the way for the renewal of the collective agreement for three years,” the ministry said.
Hotel workers had threatened to go on strike after employers refused to restore their rights in line with a 2013 agreement.
Unions said that while employees agreed three years ago to have their overall benefits trimmed by 15 per cent, compared with what they enjoyed until 2012, employers resorted to hiring staff on different terms based on personal contracts.
It is understood that the minister’s proposal did not include any pay increases but it restored other benefits like an increase in provident fund contributions from 3 per cent to 5 per cent, and bonuses.
The agreement must be ratified by the workers who are expected to hold district meetings next week.