By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

LABOUR director John Pinder said he has recommended to some major employers that they offer severance packages to furloughed workers who may need the assistance.

His comment came when he was contacted for a reaction to the government extending the state of emergency and Emergency Powers Order until May 23.

“I think it’s safe to say that this is a double-edged sword in that there are persons who will now be in extended furlough position who would like to receive severance pay, but the employer for the most part, especially those major employers feel as though they don’t want to get rid of their good staffers and they are not in the position to offer everybody a severance package,” Mr Pinder said. “So, they find themselves in a Catch 22.”

He estimates the unemployment rate is between 38 to 42 percent.

“Yes, people want to receive their severance pay and probably could make an investment and do something with it, but if this thing turns around sooner than we expect and you get rid of all your qualified staffers and those persons who could provide good service, now you find yourself in a position whereas you have to now find yourself new staff and retrain them.

“Even if the persons who you let go decide they want to find something else and they can’t find what they want and you have to bring them back, there is no guarantee persons on extended furlough will be rehired once the employer has to do that at the same position with the same salary with the same benefits. As long as you are on furlough, they still have their tenure. They still have the same positions and they still have the benefits that they were entitled to.”

In January Atlantis confirmed it had to place multiple workers back on temporary furlough due to “unfavourable occupancy forecasts” for January 2021.

The Paradise Island mega resort, in response to Tribune Business inquiries, said “the lack of adequate airlift” and surge in COVID-19 infections in key US source markets were “compounding factors” that had forced it to return some of the 2,500 staff it recalled for December’s opening to furlough status.

Last week, a group of Atlantis workers complained about the extended furlough and asked for their severance pay. Employers would normally be required to give workers a redundancy package after 12 weeks of not paying them a salary.

But the grace period letting businesses retain employees without paying them is a source of intense frustration to some even as others believe the provision is a boon to many people hoping to find their job still available when the pandemic wanes.

The temporary lay-off, or furlough period, during which companies can send employees home without paying full severance pay or other benefits expires some 30 days after the emergency powers end.

Mr Pinder continued: “But I believe it’s a double-edged sword so I have recommended to the major employers who can afford to invite persons to see how many of them really want the severance and where possible give it because some people may meet the retirement age now or some persons may find themselves in a position whereas they can’t go any longer.

“Where it’s possible I would like to see the employer reach out to those persons and try to offer some sort of assistance or whatever is necessary.”

Mr Pinder also said the government has had to be impartial about decisions as it relates to the Emergency Powers Orders.

“The impartiality comes where government has to protect the employees as it relates to them having a sure job when the economy opens again and it protects the employer by not having to sell assets or go into liquidation because they don’t have sufficient funds to pay all their workers, so I think it’s a Catch 22 for both sides.”