By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Trade union leaders yesterday voiced fears that the Melia Nassau Beach’s two-year closure will have a “catastrophic” impact on the 200-300 employees who will be terminated from March 1.

Obie Ferguson, president of the Bahamas Managerial Association (BHMA), which represents the resort’s middle managers, told Tribune Business that the impact will be especially dire because those affected will not have received full pay for an entire year due to the COVID-19 pandemic.

“It’s going to catastrophic in the sense that mortgages have to be paid for homes, car payments and school fees; just your regular maintenance for you as a person and your immediate family,” Mr Ferguson said.

“It’s catastrophic because there’s no source of income. For they have not been paid their full pay since March 2020, and that definitely creates a serious, serious economic, social and psychological impact on those workers.

“After three months in arrears on your mortgage the bank can move in and repossess your home, and most mortgages run between 20 and 30 years. It has far-reaching, serious consequences for the average Bahamian worker.”

Mr Ferguson disclosed that the Melia Nassau Beach Resort had informed him yesterday that all terminated staff will receive due severance pay and associated benefits in their bank accounts by March 4, 2021, but swiftly added that the hotel by law needed to do more than merely inform the union of what is happening.

He pointed to the Employment Act changes passed by the Christie administration in 2017, which require employers to meet with the union and go through “a selection process” to determine who will be terminated and who can be retained when 20 or more workers are released.

“I just want to ensure the procedures for redundancy have been complied with,” Mr Ferguson said. “What I’m saying is you cannot just write a letter and say that with effect from March 1 everyone will be made redundant and paid out.

“The point I’m making is that you have to meet with the union, consult with the union, the selection process has to be done. There’s a whole bunch of things you have to do. You cannot just dictate a letter to the union or the president of the union. It’s a partnership deal. You cannot be a dictator in a matter of this nature; it’s not going to work. There’s a process mandated by law you must follow.”

Mr Ferguson said the Employment Act changes mandate that persons placed on furlough, or moved to full termination, must be “given first preference” when the resort re-opens and begins re-hiring workers. This was something, though, that Baha Mar president, Graeme Davis, declined to commit to when questioned by Tribune Business yesterday (see other article on Page 1B).

Darrin Woods, president of the Bahamas Hotel, Catering and Allied Workers Union (BHCAWU), which represents Melia line staff, said that while the resort’s two-year closure until Spring 2023 was “a major body blow again” for the impacted workers and wider tourism industry it at least gave staff “a sense of closure” following 11 months of uncertainty about when the property will re-open.

He acknowledged, though, that it will be difficult for his members - who he estimated as numbering between 170 to 220 - to find new jobs in a hotel and tourism industry where they are competing with thousands for scarce employment opportunities as a result of COVID-19’s devastating impact on the sector.

Daniel Lozano, the Melia Nassau Beach’s general manager, told staff in a letter yesterday: “As the global travel industry continues to evolve, a decision has been reached to cease the operation of Melia Nassau Beach on March 1, 2021, and complete a renovation of the resort over the next 24 months.

“It is our hope that with the extended closure of the resort and undertaking a renovation, we are setting the stage for a successful opening of a brand new resort, one that will promote the much-needed economic relief and stability upon which we all depend.”

Acknowledging that the impact on employees was “the toughest part of the decision”, Mr Lozano added: “We look forward to the day when we unveil a new resort to distinguished and valued guests from all over the world, furthering the long-term economic health and prosperity of The Bahamas.

“A new and improved resort is another step toward exceeding global expectations for a successful revitalisation of international travel to The Bahamas.” He said existing staff “will be invited to apply, and will be given every consideration and opportunity for employment” once the Melia re-opens in Spring 2023.