The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A RECENT Supreme Court decision involving a group of former City Markets employees in Freeport has made the issue of severance pay for former Nassau staff a "moot point," according to an attorney involved in the matter.

Comments by City Markets' principal, Mark Finlayson, last week on the issue of employee compensation sparked concern from trade union officials looking to secure severance packages for the supermarket chain's former employees.

Mr Finlayson said the primary issue in the pending deal to sell the struggling supermarket chain to Super Value was saving jobs, telling Tribune Business that former employees who were able to secure employment with Super Value would not receive severance compensation, while those who did not would.

Trade union executives argued that the food store chain's former employees were all entitled to their severance packages, having been "effectively terminated" by the company. However, Mr Finlayson yesterday clarified his position, saying the company had merely "suspended" operations, meaning no severance pay was required

Attorney Stephen Turnquest, a partner in Callenders and Co, who is representing former City Markets' New Providence employees, said the April 13 judgment by Justice Hartman Longley effectively gave recognition to the fact that the employees had been terminated.

"It's not actually in favour of the Nassau employees, and they are actually going to have to issue their own separate writ, but in terms of whether they would be owed severance, that is now a moot point," Mr Turnquest said.

He added that apart from the judgment, the fact that the stores were closed, employees were not working and had not been paid in weeks supported the contention that they had been terminated.

Mr Turnquest said: "There is such a thing as repudiation of contract. When one side breaches a contract so fundamentally, the other side is entitled to say you are just terminating this contract, and the innocent party is entitled to say that they accept repudiation. One of the key terms of any contract is payment. If you haven't been paid, that is a fundamental breach."

Mr Turnquest added: "It's a moot point as a result of the decision in Freeport, but I have no doubt that the Nassau employees would end up with the same result even if they were to start their own action."

A group of Freeport-based former City Markets staff obtained a judgment "in default" against City Markets' operating parent, Bahamas Supermarkets (BSL), and its principal, Mark Finlayson. The judgment in default was rendered by Justice Hartman Longley on April 13, after a non-appearance was entered by representatives for Bahamas Supermarkets or its principal in relation to a writ filed on behalf of Victoria Allen, Charles Forbes, Emily Adderley, Karia Cooper, Nancy Evans, Andrew Major, Malissa Saunders, Mavie Grant, Idella Grant and Anishka Bartlett.

It was ordered that the plaintiffs recover damages against Bahamas Supermarkets. In an injunction issued by Justice Longley on April 17, it was ordered that Bahamas Supermarkets and Mr Finlayson either be restrained by injunction from disposing of funds from the pending sale involving the company, or its assets, in the amount of $189,117.20.

In a writ and statement of claim, filed on behalf of the former employees by Freeport-based attorney James Thompson back in February 2012, alleged that from August 2011, working hours at the supermarket chain's Eight Mile Rock and Lucaya stores were cut by up to 80-90 per cent.