The Tribune

• Former restaurant breached law’s redundancy provisions

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Two former restaurant managers at the now-closed Luciano’s have been awarded a combined $74,000 after the Industrial Tribunal found their ex-employer in breach of the Employment Act’s redundancy provisions.

Both Peter Stuart, a manager, and Roosevelt Pollard, an assistant manager, alleged they had not received any redundancy pay as required by law when they were each terminated in March 2020 just as the COVID-19 pandemic took hold.

Indira Demeritte-Francis, the Industrial Tribunal president, ruled that in both cases Luciano’s, which was majority owned and operated by George Myers’ Myers Group via its Restaurant Services subsidiary, had violated the Employment Act’s redundancy provisions and was liable to pay compensation to both men.

“The respondent (Luciano’s), on making the applicant redundant, failed to make a payment of the redundancy pay to the applicant on or before the date of the employee’s redundancy, as required under Section 27B of the Employment (Amendment) Act 2017,” Mrs Demeritte-Francis wrote in her two separate rulings on the two cases.

“Pursuant to Section 27B (1), the Tribunal is of the view that it is a mandatory provision for payment of redundancy pay, and the respondent is in breach of their obligation to pay on or before the employee was made redundant by their own admission.”

The Industrial Tribunal president added that Viola Major, an attorney with Harry B Sands & Lobosky, who was representing Luciano’s, admitted that her client was liable for dismissing both men and their redundancy payouts, and was not disputing the sums they were claiming.

Stuart, who claimed to have been employed at Luciano’s from November 2004 on a $775 basic weekly wage, was awarded $39,000. Pollard, who alleged he was employed from June 2004 on a basic weekly wage of $675, received $35,100. Interest on both awards was set at ten percent until they were paid.

Luciano’s was among the first confirmed corporate casualties of the COVID-19 pandemic. In confirming its closure in May 2020, it warned that the virus will claim “more casualties” in the Bahamian dine-in restaurant industry after the pandemic put “the final nail in the coffin” for the business and its 72 employees.

Ash Henderson, marketing director for George Myers’ Restaurant Services Ltd, told Tribune Business via e-mailed replies at the time that maintaining profitability will be “extremely challenging” for the industry due to the COVID-19 health protocols that have reduced business volumes and revenues for an industry that traditionally operates on thin margins.

Speaking after the East Bay Street location’s permanent closure was confirmed, Mr Henderson said: “With the slim margins that the industry operates under, restaurants only survive by filling as many of their seats and tables as possible. If the reality of post-COVID-19 life is increased social distancing then it’s going to become extremely challenging to maintain profitability. I sadly expect to see more casualties in the industry.”

His comments provide an ominous warning of what may be to come for the sector whenever it emerges from the COVID-19 restrictions it is currently labouring under. Luciano’s, which opened in 2004 and could accommodate a maximum 200 guests, had been suffering “mounting losses” for the past “couple of years”.

Declining to comment on the extent of these losses, Mr Henderson added: “The restaurant industry is known to be extremely difficult. It’s challenging to manage food costs, labour costs and service quality, particularly with the notoriously slim margins that restaurants operate under.

“It’s a tough industry at the best of times, and these are certainly not the best of times. Considering the weekend lockdowns, and the fact people cannot dine in, operating a dine-in restaurant became a little more challenging.”

Restaurant Services, in announcing the closure, said: “After more than a decade serving the Bahamian community and visitors, the restaurant will be permanently closing its doors. Due to the current economic climate, the restaurant’s reliance on the tourist market and the economic uncertainty in the coming months, it is unable to continue as a viable business.

“Despite increased competition in the industry, and a shift in the customer base, Luciano’s management had remained committed to its staff despite mounting losses each month. The economic impact of COVID-19 was the final nail in the coffin, leaving no choice but to close and make its team redundant.

“The sad reality is that the restaurant industry operates on very slim margins, and Luciano’s was no exception. The owners and management team have been struggling to make ends meet for the last couple of years, and have exhausted every avenue to keep the restaurant open and to keep the team employed. Nobody could have predicted the effects from COVID- 19 on the economy and, sadly, the fall-out has necessitated the permanent closure of the restaurant.”

However, some former Luciano’s staff complained almost a year ago today about not receiving their due severance pay and other benefits amid threats of legal action. However, the sub-contractor that supplied Luciano’s labour needs described it as “a non-issue” that was to be dealt with in the coming weeks.

Luciano’s operated from property owned by the family of former Cabinet minister Brent Symonette, and was based in his childhood home.