By RASHAD ROLLE

Tribune Senior Reporter

rrolle@tribunemedia.net

JOHN Bull has made 103 employees - 15 percent of its staff - redundant as the COVID-19 crisis continues to ravage businesses around the country.

In April, the leading luxury goods retailer announced it would temporarily lay off all of its team members but pay each employee 50 percent of their salary as an ex gratia payment while maintaining their employment benefits.

Now the prolonged pandemic crisis, heightened by the renewed closure of the country’s borders to commercial flights from most countries, is forcing the company to make another drastic move, according to Inga Bowleg, director of business development at the John Bull Group of Companies.

“Despite every effort to secure employment for each of our team members throughout this pandemic, the economic fallout has been greater than we could have ever imagined,” she said in a statement yesterday.

“‘Unprecedented times’ is a term that is being used globally to describe the past few months and for John Bull it succinctly sums up what we are currently experiencing in the business. Going into this pandemic, we stood firm by our commitment to always put our team first and promised that we would assist in mitigating the financial impact as much as and as long as corporately possible. Delivering on our word, John Bull’s team members were extended full salary throughout the first few weeks of the Emergency Powers (COVID 19) Orders 2020 during a time when all of the company’s locations were closed.

“This scenario was not sustainable and in the ensuing weeks the company eventually extended ex gratia payments to each employee representing up to 50 percent of their salary. As the economic downturn continues with the announcement of delayed cruise ship arrivals to the port of Nassau along with uncertain reopening dates for local resorts, some very tough decisions are necessary to secure the company if we intend to have a future in retail beyond our 91 year legacy. We had hoped to be in a position to retain all of our staff but given the current and foreseeable future state of affairs it is impossible.

“With over 60 percent of our locations still closed for business and a devastating blow to the company’s revenue it is with a heavy heart and great regret that we must now move to reducing our staff complement by 15 percent. This action is extremely difficult however very necessary in order for John Bull to continue to be able to function now, as well as on the other side of this pandemic, by way of a healthy employer and place of empowerment. We remain hopeful and prayerful that things will turnaround sooner rather than later to avoid continued economic fallout for our company and nation.”

Labour Director John Pinder said he is not surprised by the retailer’s move.

“Ain’ no tourists coming in, people ain’ making no money, so that’s what’s happening all around The Bahamas and the world,” he said.

By law, employers have 12 weeks to mull the furlough of workers, but the government has extended that period so businesses can keep employees on rather than terminate their employment and provide severance packages. Mr Pinder said the grace period, which expires at the end of this month, will be extended for a further 60 days. 

“We are hoping employers could take advantage of the layoff position where necessary,” he said.