The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

LABOUR Minister Shane Gibson said yesterday he was “extremely disappointed” that more than 300 former City Market employees had not yet received their severance packages.

“I am extremely disappointed that to date we have not had that matter resolved,” he said.

“We met with the principals of City Markets and also workers’ representatives. Based on the meetings we had, I thought this matter would have been resolved by now. They had appointed someone independent to go in there and try and get the matter behind them. We had made certain commitments in terms of seeing what we could do to move the matter ahead, and I am very disappointed that the matter wasn’t dealt with.”

Former City Markets chief inventory control officer, and spokesman for the former workers, Whanslaw Turnquest, told Tribune Business: “I am very concerned that the severance matter hasn’t been dealt with as yet. The court had awarded $2.8 million, but that judgement has not been executed.

“We keep hearing that the deal has been closed but no one has been paid any money. We are about to go into 2013 and these people haven’t received any money as yet. You have over 300-plus people who need their money. What took place is unlawful; eight months and no severance package. These people did not even receive a termination letter. They have lost faith in the justice system.”

City Markets principal, Mark Finlayson, recently told this newspaper that former City Markets employees had yet to receive their severance pay and benefits because the $3.5 million sale of the former supermarket chain’s leasehold interests has still to formally conclude.

Mr Finlayson, principal of City Markets’ 78 per cent majority shareholder, Trans-Island Traders, told this newspaper that the payment from Super Value owner, Rupert Roberts, was still held in an escrow account as attorneys for both sides continued to complete paperwork associated with the deal.

Mr Finlayson said he - and between 200-300 former City Markets staff - were together “stuck” in receiving what was owed to them until the deal closed and the escrowed payment was released. He blamed the delay on issues stemming from City Markets’ 2006-2010 ownership by BSL Holdings.