By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Hotel Corporation’s chairman yesterday attacked “some parasitic” union leaders, arguing that their “extortionate, outrageous and crippling methods” pose a threat to The Bahamas’ economic welfare.

Attorney Michael Scott, addressing the Andros Business Outlook conference, said the issue had caused him considerable “angst and concern” as a result of his dealings with trade unions and their representatives in negotiating voluntary separation packages (VSEPs) for Grand Lucayan staff.

Mr Scott, who chairs the Government-owned special purpose vehicle (SPV) that owns the Freeport-based resort, called for “a sea change in union practices” due to what he considered their excessive and unreasonable financial demands in those talks.

“There is a growing danger to investors; not just foreign but Bahamians as well,” he said. “This element doesn’t distinguish between the source of money or the developer, and that is we have got to come to grips with unions in this country.

“I faced this headwind when we were looking after the voluntary separation payments at the hotel in Grand Bahama, because what we wanted to do in anticipation of the sale that’s happening is reduce the bloated staff component which was there previously.”

Mr Scott added: “We had been held to ransom for some extortionate demands. You see it now playing out every day. It’s playing out with Atlantis, and it’s gotten so bad in Inagua that the employers are now threatening to shut down the plant and Inagua suffers, if that’s what happens with Morton Salt.

“In my respectful opinion you cannot solve 21st century problems with 19th century solutions, particularly with some of these parasitic union leaders - most of whom I have found to be in positions of extreme conflict of interest. They claim to be trying to get the greatest settlement they can get for their union members, but on the other hand they are acting as lawyers.

“I had that case in Freeport with two; with Obie Ferguson and Pleasant Bridgewater. There were these hypocritical protestations of making sure their members were treated fairly, but after the deal was finally cut they didn’t hesitate to ring me and make sure I collect their 10 per cent. I had to tell one of them, in particular, that I was not an accounts receivable clerk for his union.”

Mr Ferguson yesterday refuted Mr Scott’s allegations (see Page 3B), and denied that he received any money for representing the 91 Grand Lucayan managerial workers in the VSEP negotiations beyond what they paid in union dues. Ms Bridgewater did not respond to Tribune Business’s calls seeking comment.

The Grand Lucayan Board, headed by Mr Scott, had wanted to pay the 164 line staff union members some $1.4m, but they ultimately received $3.4m. As for the managers, they eventually received $4.4m - some $700,000 of which came from an annuity - even though the Board had only offered $3.1m-$3.2m.

The VSEP exercise has now slashed the staff costs incurred by the Government in operating the Grand Lucayan by more than halving the workforce to around 200 employees as it awaits a completed sale to the ITM Group/Royal Caribbean.

Mr Scott, meanwhile, called for a “new model” relative to investor and employee relations. “We need a new model for a new century,” he argued. “The kind of progressive, as opposed to regressive, philosophy in terms of investors and developers with staff they are going to take on.

“We must get our developers and resort developers, in particular, to commit to modern day technical training and immersion. If Ritz-Carlton wants to come to The Bahamas we should get them to commit to posting Bahamians in other Ritz-Carlton operations in other countries, that’s how you learn.

“The rest of the world doesn’t revolve around The Bahamas. We are a part of a new global matrix,” said Mr Scott. “We have also got to start a practice where we get employers and operators to commit to allocating a certain amount of their net profit to a fund which will be distributed to employees on the basis of merit. That is a 21st century model that should be followed.”