The poster child of bad
business in the Bahamas

By CHESTER ROBARDS

Business Reporter

crobards@tribunemedia.net

THE WORLD - well not all of it - seemed to learn a valuable lesson when the financial capital of the US came crashing down at the end of the summer in 2008, followed by other global financial leaders in the months after.

Heads of giant banks with billions in assets were forced to grovel before the people (via the US Congress) for public money, flying down to Washington in their private jets to put forth their best case. When they arrived, congressmen lambasted them for their abject insensitivity and outright indifference to the times.

At the time, gas prices had spiked to some of their highest levels ever, however, these multi-millionaires did not feel the pinch as they jetted off to ask the country for billions of dollars to save their cash cows.

Wanting to appease the "public" in their second attempt to retrieve government funding, they drove down to Washington in fuel efficient cars and were successful in acquiring the money. (Sparing the gory details of the pecuniary blood bath still taking place on Wall Street, we will fast forward).

This year those once groveling heads of international banks will see larger bonuses than they saw during the Bull year they experienced in 2007.

As the rest of America struggles to put the pieces back together after a housing market, financial market and, inevitably, job market collapse, the banking boys sit atop their thrones still smiling down while dabbing their brows gently with tax-payer dollars exclaiming only "Phew!"

Not such a different story almost 2,000 miles away on what used to be bustling Bay Street - bustling with business that is.

I defy Bahamians to take a walk down their city centre and tell me what they see. A mass of empty store-fronts are spreading like a plague through their city.

As the Government and private sector seek to revitalise one of the most sorry, but busy cruise ports (and making statutory headway), the global economic condition is systematically killing the city's cornerstone.

And the people are forced to die with it.

As Bahamians stroll their city centre they might notice a familiar store. I remember it as a boy. It once resembled a mineral pyrite (fool's gold) mine shaft, and was called Solomon's Mines as it still is today. I remember my excitement walking into the store, with its cool exterior and muted lighting. I was awestruck at every visit.

The store's facade has since changed drastically, as has its ownership. Once owned by the Solomon family, the large retailer of mostly fine jewellery was one of Bay Street's finest stores and set the pace for retailers to come.

Now, owned an operated by the Finlayson family, brown paper sheets fill the store's windows and several of its locations are closed. Solomon's Mines has seemingly fallen victim to the times, its once unshakeable greatness razed to its foundation.

Solomon's Mines has become the poster child of bad business in the Bahamas.

With present employees starved of their pay cheques for five months and laid-off staff six months short of severance pay, the business is now a pin-up girl for the labour department. A sexy example of exactly what the department was built to defend against, yet as close as they claim to be to the situation, not much seems to be getting done.

The question on everyone's mind is how long do we let these people starve?

Laid off employees have recompense through the newly-established unemployment fund. But what of the workers? Director of Labour, Harcourt Brown, naively or just insensitively commented that staff are "prepared to stick with the company," and that it "speaks volumes to their commitment and dedication."

"The company has the best interest of the workers at mind, and it is only fair now that their welfare be taken into account," said Mr Brown.

"It could be a tedious process, and the company has stated publicly that they are financially challenged."

President of Solomon's Mines, Mark Finlayson, did state publicly during the beginning of the summer that the company was facing financial hardship in the wake of the global economic crisis. But the story of tough financial times were not recently borne of a bad economy, as staff and valued Tribune242.com readers would later reveal. It was lamented earlier, "how long do WE" let these people starve, insofar as OUR elected officials have been mum on the fate of the individuals still employed with Solomon's Mines.

With the economy and employment still a shambles and no sign of a quick recovery, it is no stretch of the imagination to understand why the employees of Solomon's Mines are holding on to the frayed rope of a dead-end (payroll deficient) employer.

Minister of Labour, Dion Foulkes, told The Tribune on several occasions that the situation at Solomon's Mines was being investigated by the Labour Department, which he has direct responsibility for. However, employees tell a different story.

According to them, no Labour investigators have come through the store's doors on their behalf. And with management on edge over its current situation, employees say they are afraid to go to the Labour board for fear of retribution, ie, being fired.

Followers of the Solomon's Mines story have unearthed what they claim is a wealth of information on the executive make-up of the company, revealing what they allege are horrid stories of vindictive managers, insensitive bosses and a company structure that makes it almost untouchable.

While workers in bad standing with their bankers, landlords and food bills struggle to put their lives together with no idea of when the next dollar will trickle in despite working daily, it is said that their bosses continue to enjoy the high life.

Employees claimed that higher ups in the company would leave to go on trips, hopping on a luxury yacht destined for some festival on some island.

"Another holiday weekend and some of us cannot even buy groceries. We haven't seen a dollar and they are off," said one employee.

King Solomon's Mines is a 19th century novel of a quest for treasure at too high a cost - a pyrrhic victory. African tribal leaders portrayed in the novel were cruel rulers, merciless to their own kind and relentless in their iron-fisted rule.

If adapted to modern times, Bay Street could be an apt setting for such a book and with the title already emblazoned on the storefront and the characters set in place, our Solomon's Mines would write itself perfectly - replete with indifferent bad guys and hapless victims.

And where is the white knight in this story ... the man behind the company who regally and seemingly rightfully holds the title of "Sir", Garrett (Tiger) Finlayson.

Readers

What comes along with representing the high court of the Queen? Tribune242.com readers ask these very questions and rightly so:

"I have to ask where is the compassion in all of this. Surely Sir Garrett Finlayson, his wife and family must be aware of the pressure they have put on their workers by failing to pay them, yet they live in their luxury glass houses as if no one can touch them and damn right no one has," posted on The Tribune website by "What a mess."

"I understand this has been going on since April. Both the Minister and Director of Labour should resign their posts for allowing this situation to develop to this point. Certainly if the shoe were on the other foot things would have been much different, but what else can one expect and with all the back scratching in this country. I'm surprised this story even made it to the papers. What a mess."

Many readers have expressed their disappointment in Mr Foulkes and Mr Brown, calling for them both to resign their positions. However, the answer is not as simple as getting rid of the men responsible for the fair treatment of Bahamian employees.

I said to a good friend the other day: "I'm full of great intentions, but much more full of inaction." Shamefully that is true in some instances, but I was then reminded of how much it applies to many of our elected officials.

In the eight months since this story came to my desk, I have spoken to Mr Foulkes several times about the fate of Solomon's Mines employees, and his answer has always been "we're looking into it".

How long can a business be allowed to run without paying their workers before action is taken by the Labour Department?

Mr Brown said to Tribune Business that he could not say how long a company is allowed to carry on with business without paying its staff, and suggested it was evaluated on a case-by-case basis.

With a barren job market just outside Solomon's Mines' door, employees say they cannot consider leaving without first securing another job.

Solomon's Mines is being represented in several labour disputes and a suit filed by the National Insurance Board by their lawyer, PLP Senator Jerome Fitzgerald, who is also vying for the position of deputy leader of the PLP.

I don't know that this association will get Mr Fitzgerald any brownie points with "Joe Public", but it is said that he is a great friend of Mark Finlayson.

Issue

Again Tribune readers were eager to have their say on this issue. "EyeKnowWhatsUp" posted: "Fitzgerald is Mark Finlayson's personal friend. They go to Europe for a 'boys trip' almost annually. Do you think he is going to do a thing to get the staff paid?? Couldn't it possibly mean that they would be short a man at the next all boys retreat in Europe next year? He spoke like a TRUE politician ... all smoke and mirrors, no substance! Quit playing games..."

The public seems to have had enough of the treatment of Solomon's Mines' staff and are speaking out against it.

Now we wait to see if the politicians and Finlaysons will begin to feel the same.

As Solomon's Mines employees are being evicted from their homes and served with bank notices for loan payment arrears, their privileged bosses claim to be looking for a solution to their financial conundrum. We'll see how far that goes!

Published On:Monday, October 19, 2009