ATLANTIS AXE FALLS ON 700: Resort confirms ‘difficult but necessary’ decision to make staff redundant

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

SEVEN hundred employees at Atlantis Resort on Paradise Island were laid off yesterday, a decision resort officials say was made due to COVID-19’s impact on travel and other economic uncertainties.

In a letter sent to staff, dated May 16, Atlantis’ president and managing director, Audrey Oswell said that while the decision to reduce its 7,300 strong workforce was a difficult one to make, it was necessary due to the losses the hotel had incurred from the pandemic.

And with COVID-19 continuing to impact travel worldwide, Ms Oswell said there is still uncertainty as to when the nation’s tourism industry will be able to fully recover from the pandemic – a situation she said had also factored into Atlantis’ decision to make workers redundant.

“We are collectively living through the worst pandemic of our lifetime, and as it began to unfold, global travel came to a standstill,” Ms Oswell wrote. “Our business suffered significant losses, and in response, we drastically cut costs that touched nearly every corner of Atlantis.

“While these actions were necessary, it became clear we had to go further when faced with two hard truths: We don’t know exactly when travel will return to normal business levels (and) when travel does return, it will be different for everyone.

“While we expect Atlantis to recover fully and business volumes continue to increase since reopening, the significant changes we will undergo are not temporary or short-lived. Because of this, we need to make fundamental shifts by reducing the size of our workforce around a more focused business strategy.

“Unfortunately, we have to part ways with team members that we respect and value. Out of 7,300 Atlantis team members, 700 of our colleagues will not be returning.”

The number affected is equivalent to almost 10 percent of the Paradise Island resort’s workforce.

The terminations, though unfortunate, will likely come as a welcome reprieve to some furloughed workers who have long been calling for their severance packages and benefits.

The government’s emergency orders suspend Employment Act provisions, which mandate that companies must pay full severance to workers who have been sent home for 90 days, until a month after these powers expire.

“I think there were a number of persons who wanted some finality to their relationship with Atlantis,” Tourism Minister Dionisio D’Aguilar told reporters after Atlantis’ announcement yesterday.

“...So, for those persons, I think they are delighted that that relationship has now been concretized but obviously, tourism has been substantially (and) negatively impacted by the coronavirus. A lot of companies started off by furloughing to mitigate the necessity to sever people, but Atlantis has now gotten itself into a position where it can sever people and pay them the monies they would’ve earned based on their years of experience… and for those who really hoped (to come) back, obviously it’s going to take a little bit longer for them to find employment.”

Despite the news, Mr D’Aguilar said officials still remain optimistic that the nation’s economy will improve as more people get vaccinated and become “emboldened” to travel.

“We’re expecting a quick rebound, maybe not to the levels of 2019 but nonetheless employment levels will begin to go back up,” he said.

As for how the Atlantis’ terminations have affected the nation’s unemployment figures, Labour Minister Dion Foulkes was unable to say yesterday.

However, he admitted there is much uncertainty “with respect to the unemployment situation in The Bahamas” right now, calling Atlantis’ decision to lay off staff as “unfortunate.”

He said the government is doing all it can to “ease the burden” on unemployed individuals and noted officials will re-assess several of its assistance programmes to determine whether it will be extended if things do not improve.

In the meantime, Mr Foulkes urged Bahamians not to lose hope, but instead to look to other working opportunities.

He said: “I would encourage all of the 700 members, families and employees affected today to number one: register with the Labour Department’s employment exchange. Every day, we have businesses that reach out to the exchange for new hires so there are opportunities within the economy, and I wish to encourage those persons affected today to register.

“Also, I wish to encourage those persons who are interested in business, whether it’s a small business or medium sized business or a large business no matter what the size, to talk to the Small Business Development Centre.

“Thousands of Bahamians have accessed the funding from the SBDC and are now running successful businesses. I know of some hotel workers who are operating businesses from their home and have been affected by the pandemic,” Mr Foulkes added.

The Labour Minister also pointed to the upcoming opening of Baha Mar’s beachfront water park, Baha Bay, and also, the Pointe for potential job opportunities

“There are two big prospects on the horizon now,” Mr Foulkes said. “The Pointe development which intends to hire some 500 to 600 permanent employees and also Baha Mar Bay. Their new development that they’re opening in a couple of months, I think they are aiming to hire some 700 employees, so I wish to encourage the 700 workers who are affected today to also access those opportunities.”

Asked if he was aware of any other hotel properties which intended to follow in Atlantis’ footsteps, Mr Foulkes replied: “No, the government has not received any indication of any resorts in New Providence or Grand Bahama or any other Family Islands of any intended terminations.”