15 Hotels, 1200 Employees, 2 Join The Strike For Improved Wages
Only two employees of Pestana Hotel Group in Madeira have joined a strike demanding higher wages. According to Paulo Prada, an executive of Portugal’s largest hotel chain, this represents an extremely low participation rate among the approximately 1,200 employees across the group’s 15 hotels in Madeira and one in Porto Santo.
Prada confirmed that one worker from Pestana Casino Park and another from Pestana Carlton had joined the strike. “The participation rate is negligible,” he remarked, noting that the strike was expected to see minimal turnout.
Our expectation was always for very low engagement, and the initial hours confirm this
Paulo Prada, Pestana
Workers Call for €75 Monthly Pay Increase
The strike, organized to push for a €75 monthly salary increase for all employees starting in 2025, is scheduled to last three days - December 30, December 31, and January 1. While Prada acknowledged that participation could grow as the strike continues, he maintained that the group had anticipated only limited involvement.
“Our expectation was always for very low engagement, and the initial hours confirm this,” he said.
Pestana Claims Competitive Pay Practices
Prada emphasized in Diário de NotĂcias da Madeira that the Pestana Group offers salaries significantly higher than the regional and national minimum wage, which he estimated to be around €1,100 monthly (likely gross payment, including subsidies). Additionally, according to Pestana, most employees received 16 months of pay in 2024, including two bonus payments distributed in the spring and November.
“This additional compensation reflects our strong results from the prior year, which we share with our employees,” Prada explained. He expressed optimism that similar bonuses could be approved for 2025, depending on the company’s performance and board approval.
Immigrant Workers Do Not Dare Standing Up for Their Rights
One reason the strike has not gained much traction is that the tourism sector heavily depends on immigrant workers who are often unaware of their rights or too fearful of asserting them, given their already vulnerable position in society, unstable economic circumstances and commitments they have towards their families abroad.
Wage Dispute Unlikely to Escalate
Despite the labor action, Prada suggested that the company’s established pay practices, including above-average salaries and regular bonuses, could help mitigate unrest.
“I see no reason to deviate from our established approach of rewarding our staff for their contributions to our success,” he said.
Source: Diário de NotĂcias da Madeira
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