By NATARIO McKENZIE

Tribune Business

Reporter

nmckenzie@tribunemedia.net

THE hotel union’s president yesterday said she was “deeply concerned” over the fate of more than 2,000 Baha Mar workers, adding that the developer’s pledge to pay salaries and benefits for the next three weeks was “little to no consolation”.

Nicole Martin, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) head, said she was optimistic that Baha Mar would open, although it is unclear when.

“I think that the entire Baha Mar situation is unfortunate. Sending people home and guaranteeing their pay for three weeks is little to no consolation in the grand scheme of things,” said Ms Martin.

In a statement sent to the media on Monday, Sarkis Izmirlian, Baha Mar’s principal, said the developer will continue to operate for a period and fund payroll.

However, if it cannot achieve a solution with its Chinese partners within the next few weeks, Baha Mar “will have to make some extremely difficult decisions that would include workforce reduction”.

Mr Izmirlian stressed that Chapter 11 bankruptcy protection in the US courts is not a liquidation process, and the developer yesterday obtained approval to continue paying the salaries and benefits of its employees.

“If it gives the company the ability to restructure  its debt and do some things, then maybe it’s a good thing in the long run,” Ms Martin said.

“My problem is that it seems that we have very little protection against things like this. What if there was no Chapter 11 option? What would have happened? For me it is very concerning.

“I believe Baha Mar will open its doors. We need those doors to open. I hope that the law makers are taking notes, and that when we sit to negotiate investment opportunities we must consider everything because we’ve put so many eggs in this Baha Mar basket that it would be a travesty for the country if it fails. I’m hoping that this causes us to rethink our negotiating strategy going into talks with investors.”

More than 2,000  workers at the $3.5 billion Cable Beach development were on Monday told to stay at home and not report to work until further notice.

Mr Izmirlian blamed the resort’s financial troubles on “repeated delays by the general contractor”, China Construction America, and said filing for Chapter 11 bankruptcy “is the best path to provide the time to put in place a viable capital structure and working relationships to complete construction and successfully open Baha Mar.”

Ms Martin added: “The question is when it will open. For me, once it is opened, I believe the workers will need protection more than ever. Clearly you can’t take Baha Mar at its word.

“If the Prime Minister said a few weeks ago that things were headed in the right direction, and now they are saying they were blindsided, something isn’t right. This, for me, is very concerning but I’m still hopeful.”