The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamian resort industry is awaiting the government’s formal response to concerns that hotels will be forced to pay full termination pay to staff when the mandatory 90-day period expires.

Michael Reckley, executive vice president of the Bahamas Hotel and Restaurant Employers’ Association’s executive vice-president, confirmed to Tribune Business that the sector is seeking an extension to the 12-13 week period mandated by Employment Act reforms passed by the former Christie administration.

Once the 90-day threshold is passed, and National Insurance Board (NIB) payments come to an end, the Act requires employers to pay full severance pay to employees who have been temporarily laid-off or sent home for that period.

“We have brought to the government’s attention the lay-off question that you have raised,” Mr Reckey said. “It is the intention of our member hotels to give our employees a further extension of their lay-off, but we are awaiting the response to our request from the Government of The Bahamas.”

He added that the Bahamian hotel sector, and wider tourism industry, will only move towards re-opening once a “reasonable” number of visitors are guaranteed to return to The Bahamas following the global COVID-19 shutdown - a development likely to still be some months away. Most observers are predicting that the resort industry will not rebound before Thanksgiving/Christmas 2020 at the earliest, and maybe not until 2021.

“It is our view that during this pandemic period we can only work towards the opening of our hotels when a reasonable number of visitors seek to travel to our member properties,” Mr Reckley affirmed.

Tribune Business reported last week that 2,5600 employees are threatened with full termination unless the government extends the temporary lay-off period beyond 12-13 weeks. That timeframe will be reached in early to mid-June.

Peter Goudie, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) director responsible for labour relations, also confirmed it has asked the government to extend the timeframe to at least 26 weeks as was done for Abaco and Grand Bahama residents last year after Hurricane Dorian.