The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A trade union leader believes the Bahamas’ redundancy laws leave the middle class “open to exploitation”, as she called for the Employment Act to be “revamped”.

Nelerene Harding, the Airport. Airline and Allied Workers Union (AAWU) president, told Tribune Business that the Act provides for line staff to receive a maximum six months’ redundancy pay after working for an employer for 12 years.

A managerial worker employed for the same duration would receive a maximum 12 months’ pay, and Ms Harding said longer-serving staff were especially penalised, as they were not entitled under statute to receive anything for those extra years.

Ms Harding’s comments came as the AAWU blasted American Eagle, now known as Envoy Air, for how it had handled the redundancies of 47 employees that are due to take effect on April 12.

Some of those employees will be allowed to reapply for their jobs at entry level, but Ms Harding said: “Ten days ago, American Eagle corporate management came here from Miami to tell the staff that they were making everyone in the customer service department redundant, which would have been 47 persons who work in that area.

“In addition to that, they are going to keep the persons that work in ramp services and operations, because they now have a license for a ground handling company, which initially they didn’t have,” added Ms Harding.

“They said that April 12 they are going to make everyone redundant. They will fire them but rehire them as new employees, where they will have to apply for their jobs and they will make $8.66 an hour which, when you total that up, is going to be $11,458 or $2 less than the minimum wage.

“Out of the 87 employees American Eagle has, only 12 of them are permanent employees; everyone else is working for 20 hours [per week]. They can opt to work up to 39 hours, but they guarantee you 20 hours as the maximum they will pay because they want to keep you as a part-time person.”

Ms Harding said employees had not seen a pay increase in six years, and called for the Bahamas’ redundancy laws to be revamped, given that some American Eagle employees have been with the company for 20 years.

“The law only speaks to paying you for a period of 12 years. Anything over that you get nothing for it,” she said.

“That needs to be revamped because, to me, it’s exploitation of the people. When you can work for a foreign investor for 20 years and you only pay them for 12 years, that is not fair.

“It’s exploitation of the middle class when you look at our redundancy laws. We have people who have been here for 20 years and, after 17 years, American Eagle put them on part time to work 20 hours.”

Ms Harding added: “When foreign investors come here we give them a lot of incentives to hire Bahamians but, at the end of the day, your labour means nothing because you suffer. After 20 years of service you are only going to get compensated for 12 years, which means that you have lost eight years.”

The Employment Act currently sets a 12-year limit, or ‘cap’, on the redundancy pay an employee is entitled to under statute law. Managerial staff receive one month’s salary for every year worked up to 12 years, giving them a maximum 13 months, once the one-month notice or payment in lieu of notice is accounted for.

Line staff can receive a maximum six months’ pay under the Employment Act if they have been with the same company for 12 years or more, plus another two weeks of ‘notice pay’.

Ms Harding said it was unfair for American Eagle to handle its Nassau-based employees in such a manner when this was a profitable route for the airline.

“Nassau is a profitable station. American Eagle has Fort Pierce and Fort Myers, which are two smaller airports, and just as Bahamasair has to go to Inagua and Mayagyaua, they have to fly there. They put Nassau in that pool because it is profitable and it makes their books look good,” Ms Harding said.

Attempts to reach American Eagle for comment were unsuccessful, with an automatic e-mail reply from the general manager, Erika Collie, confirming that she was out of office.

It appears that the lay-offs have been motivated by American Airlines’ desire to realise synergies and cost savings from the recent merger with US Airways.

A letter from Envoy that was sent to employees read: “As you are aware, Envoy must continue to adapt as our business and operational needs change, and unfortunately, this often creates a need for downsizing or the elimination of specific positions at the station.

“The company was recently notified that the above-the-wing work performed by Envoy on behalf of American Airlines in Nassau will be handled by US Airways.

“As a result, I regret to inform you that you are being laid off from your current job. The anticipated layoff date will be on or about April 15.

“The exact day will be communicated to you at a later time. By reason of redundancy, this letter serves as your statutory two weeks notice to this effect. You are required to work during your period of notice and you will be paid in relation to this period in the usual manner. Additionally, severance will be paid in accordance with the Bahamian Employment Act.”