The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Inagua’s largest employer has agreed to “advance payroll” to today to enable its 60-plus staff to acquire the building materials and other products they need to safeguard their properties and families from potentially devastating Hurricane Melissa.

Richard Ingraham, president of the Bahamas Industrial Manufacturers & Allied Workers Union (BIMAWU), which represents Morton Salt’s line staff, told Tribune Business that Jesus Rodriguez, the plant’s general manager has agreed to provide “credits” to workers who require them amid fears that Melissa’s anticipated heavy rainfall could disrupt salt harvesting for months.

Mr Ingraham said he is “very much concerned about the impact” from the storm, which is forecast to rapidly move through the southernmost Bahamas as anywhere from a Category One to Three hurricane on Wednesday, as any flooding in the salt ponds will set back production. Morton Salt suffered a similar effect from Tropical Storm Oscar, which later became Hurricane Oscar, last October, with harvesting disrupted until early 2025.

Tribune Business understands that Morton Salt shut down its Inagua plant on Saturday to prepare for Melissa, and Mr Ingraham confirmed he and others were set to “go to work” yesterday and “secure the plant”. He, however, thought it unlikely that Melissa will disrupt or damage Morton Salt’s previously announced plans to sell its Inagua operation to the Grand Bahama-based Lusca Group.

“Oh man, it’s a very bad impact,” the union chief said of the approaching storm. “The harvesting crew, there ain’t nothing they can do because the ponds are all already flooded with water, and persons are staying home right now because of the situation .” Inagua has already been receiving heavy rain showers prior to Melissa’s projected arrival.

“I’m very concerned about the impact,” Mr Ingraham reiterated. “I just wrote the manager [Mr Rodriguez] an e-mail last night asking him for some assistance from the company to at least assist us with building materials, nails, and purchasing all those things to protect our homes and families.

“His response was very much positive, and he’s going to advance payroll - to give us early payroll Monday - so everybody can go to the bank and get what they need for their families to equip themselves. We were actually asking for assistance. He said in there the company will probably credit in need of assistance. That’s the latest update. We’re quite satisfied for now with what’s been offered. We were not looking for much. We’re looking for a little help and support.”

Should salt harvesting and production be disrupted for any length of time, Mr Ingraham added: “In our industrial agreement, we’ll come together, the company and the union, and decide how best to find people work and how best they can fit in and make their eight hours.”

Confirming that the Inagua operation has enjoyed “a very good year” in terms of output, he added: “We had some little production challenges at the beginning, but we have gone since March/May to close to almost one million tons of salt. The production has been very good.

“We really hope this [Melissa] won’t delay the production too long. We’ll probably cap some of the rain water off and get the line right back to the consistency we want to make the salt. [After Oscar] they wanted to put us on three-day weeks, and we were able to persuade the company to allow us to stay on and work for 40-hour weeks.

“We’re hoping for the best and praying. It’s [Melissa] something we believe God will see us through.” Mr Ingraham said the storm, and whatever impact it makes, is unlikely to disrupt the Inagua plant’s proposed sale. 

“I would not think so,” he added. “I would hope It would not. I don’t think it will impact anything. Production is already high.” The two sides - Morton Salt and Lusca Group - are seeking to close the sale before year-end 2026. 

While some employees in Inagua and their union representatives have voiced concerns about becoming a standalone operation, and the rebranding to Salt Bahamas with the loss of the ‘Morton’ name, this is seen as opening up possibilities for expansion as it can sell to other customers beyond Morton. No longer will Inagua, and the island, be solely tied to supplying Morton Salt as it will remain the “anchor customer”.

Lusca Group is linked to the Liwathon Group, which has acquired and restarted operations at Grand Bahama’s former South Riding Point oil storage terminal.

Tribune Business research found that both Lusca Group and Liwathon’s Bahamas operation share the same phone number and Grand Bahama address, at 100 Grand Bahama Highway, East End, on their respective websites. The prospective Morton Bahamas purchaser’s website also referred to “strategic storage facilities in The Bahamas and Estonia” - the precise locations where Liwathon has assets.

“Morton Salt is excited to partner with the Lusca Group on the announced transaction. Inagua has long served an important role in helping Morton Salt meet its supply needs, and while the pending transaction will convert Morton Salt from owner to anchor customer, Inagua salt will remain a vital component of Morton Salt’s long-term supply mix,” Morton Salt promised.

“Equally, if not more important, we believe that capital investments required to expand the Inagua operation – and potentially develop other business opportunities on the island – will benefit our Inagua employees and the local community. Accordingly, Morton Salt believes the announced transaction offers a ‘win, win’ outcome for all stakeholders.”

It is understood that Morton Salt, and its US-headquartered owner, Stone Canyon Industry Holdings, were not actively seeking to sell the Inagua operation but, when Lusca Group came along, felt the offer was too good to pass up given the seeming benefits for itself, the buyer, employees and the island as a whole.

Morton Salt was also seeking to reduce the risk posed by the increased frequency and strength of hurricanes, plus heavy summer rainfalls, to its Inagua operation. Last year’s relatively modest storm and rainfall totally destroyed the salt brine at its 300,000 acre property, plus a lot of crystalliers, and halted and disrupted salt production for several months.

The Inagua operation generates between 750,000 and 900,000 tonnes of salt exports to Morton’ US operations per annum, depending on rainfall, storms and other weather-related events, and their increasing frequency and unpredictability meant the salt producer was becoming ever-conscious of this risk.

But, while Morton Salt was prepared to invest further capital in the Inagua operation, it is thought this outlay is out-paced and exceeded by what Lusca Group is planning. And not just for the salt operation, but for the rest of Inagua’s community from a development perspective. As a Bahamas-based operation, Lusca Group is seen as being able to bring more direct focus to the needs on Inagua.