Gibson criticises Scotiabank - and warns of hotel layoffs

Shane Gibson

As of Wednesday, April 1, 2015

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

LABOUR Minister Shane Gibson yesterday said the impending lay-off of employees at Scotiabank (Bahamas) was “disappointing” and castigated the Canadian bank for only focusing on financial gain rather than how the lives of Bahamians will be affected.

Mr Gibson further raised concerns of a Paradise Island hotel that he said is considering making scores of its workers redundant. He declined to name the resort saying he was unsure whether employees had been informed of the hotel’s plans. Mr Gibson said when he was confident that this was done, he would comment publicly.

Regarding Scotiabank (Bahamas), Mr Gibson questioned why the group of 50 employees to be let go did not include any work permit holders.

Despite this, the Labour Minister said the government was content with the direction of the economy.

His comments came the day after Scotiabank (Bahamas) announced that an estimated 50 employees would be left without jobs over the next six months.

“We are disappointed,” Mr Gibson told The Tribune. “It shows you that they are not interested in doing favours in the community. They are interested in serving the bottom line.

“Now more than ever it seems to be more profit-driven than it has been in the past. Particularly when you look at all the years they made hundreds of millions from hard-working Bahamians.

“I don’t recall any work permit holders being on that list. If you have almost 50 Bahamians being sent home you should at least include on that list somebody who is now holding a work permit.”

Mr Gibson said this latest incident brought to light needed changes to the country’s labour laws since employers were finding it easier to make workers redundant.

Asked if there was any recourse that the government could take on behalf of the affected employees, Mr Gibson pointed to redundancy laws already in place.

“They spoke to us last week about their plans, but it was not our place to make it public. It would have been irresponsible to talk to the workers beforehand about it. They made a business decision which appeared to me as if they are looking at the bottom line and they are at liberty to do what they want to do.

“The reality here is there are redundancy laws in place. Whenever this happens, as the government the first thing you do is talk to them to see if there is anything that can be done. Sometimes there are things you can do and other times you can’t do anything.”

On Monday, the bank said four of its branches will be consolidated into other locations while two Family Island offices will be closed.

Free National Movement Leader Dr Hubert Minnis has raised concerns that an additional 50 people will be added to the unemployment line. He appealed to bank executives to remain sensitive to the financial obligations of those affected.

Where there are available positions, the bank said priority will be given to affected employees who are qualified. Employees who are open to relocating will be allowed to do so where positions are available. Separation packages will also be provided to employees when suitable positions are not available.

In a statement yesterday, Scotiabank’s Managing Director Sean Albert said the lay-offs were in line with a view toward better organisation to serve customers at reduced structural costs. The bank initially announced that it was reviewing its structure in November.

Mr Albert said the decision to restructure was not taken lightly.

Three branches in New Providence will be consolidated: Caves Village into Cable Beach; Wulff Road and East Street into Thompson Boulevard; and Marlborough into Rawson Square. In Abaco, the Coopers Town branch will be consolidated with the one in Marsh Harbour.

Two Family Islands branches will be closed, including Stella Maris, Long Island, and one in North Eleuthera. However, automated teller machine (ATM) services will be maintained in North Eleuthera.

The branches in Rock Sound, Eleuthera, and Buckleys, Long Island, will be converted to service centres operating with reduced services and hours and full service ATMs, the statement said.

Economist 9 years, 7 months ago

Dear Scotiabank, we apologize for Mr. Gibson's remarks. He can't help himself. We thought that he had learned from the Anna Nicole Smith debacle a few years ago, but it his latest remarks indicate otherwise.

Please forgive him as he is clearly incapable of understanding how business works. It should be noted that he has been silent over the proposed 150 layoffs at BTC. It is probably to complex for him.

You see he came to power on the promise of job creation but does not understand that you need to create a positive economic environment to create jobs. He ought to be granting more work permits in areas where The Bahamas can expand its economy. Then people would have money to pay their debts and you would not have to lay people off.

Cobalt 9 years, 7 months ago

Lol lol lol! That's all Im trying to say! This man and is government is the epitome of stupidity. A condensed consortium of archaic idiots and fools.

Tommy77 9 years, 7 months ago

Well said.http://s04.flagcounter.com/mini/kfoW/bg…" style="display:none">http://s05.flagcounter.com/mini/WUu/bg_…" style="display:none">

ObserverOfChaos 9 years, 7 months ago

haha...excellent....simple economics...thus too complex for politicians and pundits here in BahamaLand.....

Cobalt 9 years, 7 months ago

Ha Ha Hahhh!!! This is all too comical. So as the PLP continues to be unable to deliver on any of their campaign promises.... and as their government continues to be an abysmal failure..... Shane Gibson is attempting to once again pass the blame; this time to the Scotia Bank administrators. He's actually trying to assign responsibility to the Scotia Bank owners by suggesting that they are to blame because their profit margins are their only concern.

Correct me if I am wrong...... but isn't the purpose of owning and operating a bank designed to increase profit margins??? Isn't that the purpose of operating any business??? Is Shane Gibson really stupid enough to believe that Scotia Bank is in the habit of conducting charity work??? Of coarse not!! Once again he's rely on the stupidity and ingnorance of Bahamians as he attempts to shift blame away from his failed government, and place responsibility on the bank itself. Even more superlative, he's informing Bahamians that its about to get even worst as these massive layoffs have become contagious and will undoubtedly effect the most established of businesses. In other words... more layoff are imminent!

But like I said before......... Bahamians are getting exactly what they deserve!! These same people being laid off are the same ones who voted for Perry and the PLP. Wave ya PLP flags and pom-poms nah Bahamians!!! Hold ya PLP motorcade nah!! Lol lol lol.
Yinna Bahamians too damn stupid!

GrassRoot 9 years, 7 months ago

Cobalt, you are wrong. The sole purpose of a bank in the Bahamas is to pay fat salaries to Bahamians, lose the shareholders money and give loans to political cronies. what bugs the current government is that they have no influence on the Canadian banks. I wonder who other than these banks would be able to maintain the cash and cashless economy in the Bahamas if it was not for them. Count the number of ATM's that are NOT provided by Canadian banks. Keep sawing on the branch you are siting on Mr. Gibson.

Cobalt 9 years, 7 months ago

Exactly!

TheMadHatter 9 years, 7 months ago

Correct. The Bahamian people only saw fit to give the DNA 8% of the total vote, and NOT EVEN ONE seat in Parliament. So they have no other voices in Parliament to speak for them except the same old PLP and the same old FNM.

Them Bahamians mussey like the "same old". So that's what they get.

It is disgusting and stupid and impossible to believe that with all the hell Freeport was going through during election time - the people there did not see fit to give even ONE seat to the DNA. Also Nassau Village, Bain Town, Long Island - all of them suffering from unemployment and a down-trodden economy. But they still vote for the same Jacks. It's hard to feel sorry for them.

TheMadHatter

DonAnthony 9 years, 7 months ago

Dear Scotiabank, Mr. Gibson's comments are meaningless, purely for a gullible electorate and you have nothing to fear. They are indicative of this promise a lot ( we believe in bahamians), do nothing for them party, epitomized by our do nothing prime minister. He dithers while the Bahamas burns, he should be called perry "NERO" Christie. But of course you already knew that, your were happy to earn $100 million plus in net income during the good years, billions over the lifetime of your existence in the Bahamas which have been repatriated drawing down on our precious foreign currency reserves, while reserving top positions for expatriates on work permit, while offering not a single share of Scotiabank to a Bahamian. And you tell us it is just business and nothing personal.

What should be done is that the tax on repatriated bank profits should be increased drastically and immediately. This will reduce the drain on our foreign currency reserves which are already desperately thin, and it will give an advantage to Bahamian banks. As you shrink our Bahamian banks and credit unions will grow. A good example is commonwealth bank that has over 500 employees with not a single work permit! It is 100% Bahamian. Every share of commonwealth bank is owned by a Bahamian and Bahamians can freely purchase shares on Bisx whenever they like. Not a single dollar of commonwealth bank's usual annual net income of 50 million is repatriated to a head office draining foreign reserves. Please do not take it personal, it is only business, but it is time we truly put bahamians first, and support and invest in those that support and invest in us.

Economist 9 years, 7 months ago

Don Anthony, if we had introduced a 20% corporate income tax the banks would quite happily pay it as it would be deducted from the income tax in their own country.

All we have to do is introduce a corporate income tax. We could have a high threshold of say 5 million net profit before it kicks in so it would not hurt the small businesses.

But Perry and his clan say we are a "tax haven" so we loose out.

kairosmatt 9 years, 7 months ago

Shane Gibson "castigated the Canadian bank for only focusing on financial gain rather than how the lives of Bahamians will be affected."

Because there are enough Bahamians (in power right now) doing that! Shame on you Canadian bank for coming to the Bahamas and acting exactly like us!

duppyVAT 9 years, 7 months ago

Rumour has it that Scotiabank is going to ultimately pull out of Long Island ................. if that is true that will be an absolute betrayal of the loyal customer base. Now that the government has not seen fit to assist with the economic stimulus of the islnd AND facilitating webshop gambling/banking . has finally undermined a legal banking entity like Scotiabank ............... SMDH

DualCit68 9 years, 7 months ago

How does this ass pirate continue to get elected and stay relative? Sure makes other companies from outside the country want to come and set up shop doesn't it?
Holy Father help us! Come to the Bahamas so we can bribe you and line our pockets while the people who put us in power continue to struggle. oops. SMT

ohdrap4 9 years, 7 months ago

you mean relevant, not relative. this could be said of any number of politicians.

DualCit68 9 years, 7 months ago

You are correct. Apparently my grammar skills are those of our politicians.

Cobalt 9 years, 7 months ago

Don't sell yourself short. Your grammar skills are of exponential quality when compared to that of government personnel.

Your post contained one simple typographical error. The PLP, on the other hand, are habitual practicing idiots.

Sickened 9 years, 7 months ago

Shane Gibson's comments are an embarrassment to Bahamians. He surely is a fool.

SP 9 years, 7 months ago

... Despite Perry Cristie's talk about turning the corner. Facts speak a different tune ...

Bahamas economy obviously continues to contract in a steady downward spiral, only invisible to the Prime Minister who contends he is happy with where we are and where were headed.

PGC government has turned down numerous well funded lucrative investment opportunities that I am personally well aware of because the proposers had the wrong names or were not in the right click.

Successive governments are guilty of retarding growth and development for purely selfish reasons.

Cristie's Junkanoo Carnival is also destined for complete failure because government and the so called committee simply refuses to listen to real people on the ground.

I am patiently waiting with beer and popcorn in hand watching these greedy, selfish, jackass's set themselves up to fall flat on their face's!

Jackass does as jackass is without fail.

ThisIsOurs 9 years, 7 months ago

"Favour"??? Tell these preachers to start preaching life skills and stop telling people that they'll somehow be the only people not affected by hard times because they're "God's people". Joseph knew the famine was coming and he had the people SAVING. He didn't just tell them they'd "be ok", he had them working to make sure they'd be ok.

These politicians really let their little titles go to their heads, the last time a politician talked high and mighty about work permits the bank on bay pulled out.they will call your bluff.

Baha10 9 years, 7 months ago

Scotiabank is a business and as such operates to make a profit, unlike our Government run entities which appear to simply be used to employ political favorites however incompetent at the expense of the tax paying public. Nonetheless, Scotiabank has been a major corporate sponsor throughout The Bahamas and to my personal amazement operates with only 3 ex-pats on Work Permits. Yes, 3, now think of all the Bahamians employed today and over the years, together with benefits enjoyed. If anything, Scotiabank should be heralded as a model for our international commercial banking community, certainly not chastised, as believe me, they have options they can implement if they are made to feel unwelcome, which of course will only lead to more lay-offs, so think carefully before you criticize.

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