By TANEKA THOMPSON
Tribune News Editor
tmthompson@tribunemedia.net
THE expatriate staff at Baha Mar’s Grand Hyatt hotel are set to be pulled out of this country this week following a decision by the government not to pay the mega resort’s non-Bahamian employees on payday last week, The Tribune understands.
According to a well-placed source, officials from the Grand Hyatt informed resort representatives on Friday about the impending move. It is unclear how many workers will be moved, but it is expected they will be transferred to other Hyatt properties around the world.
Observers see this as a possible precursor to the Hyatt or other brand partners leaving Baha Mar completely as the resort undergoes Chapter 11 bankruptcy proceedings in the US and awaits the outcome of a winding up petition filed against it by the Christie administration.
It is understood that the staff transfer jeopardizes Baha Mar’s ability to open quickly if the property were able to come to an out of court agreement with its Chinese stakeholders. As The Tribune’s source put it, “Once these guys (Hyatt employees) are gone, it will be hard to get them back.”
A request for comment from representatives of the Grand Hyatt were not returned up to press time. This comes after the government’s decision last week to not pay the nearly $1.8 million salary bill for Baha Mar’s expatriate employees.
The Tribune understands that many of Baha Mar’s expatriate workers left high paying jobs in other jurisdictions to come to this country. Some observers fear that them leaving would have a trickle down effect on the real estate market, among other areas.
Meanwhile, Free National Movement (FNM) Deputy Leader Peter Turnquest yesterday blasted the Christie administration for its “discriminatory” decision not to pay Baha Mar’s foreign employees their salaries.
In early July, the government announced that it would pay Bahamian employees at the resort for one month, stating that the decision was a bid to block the more than 2,400 workers from being used as pawns in the resort’s Chapter 11 bankruptcy filing.
The resort’s Bahamian workers are paid bi-weekly. The Tribune understands the government has paid Bahamian workers for three pay periods so far.
Baha Mar’s expat workers are paid monthly and had received their last salary payment shortly before the resort filed for bankruptcy on June 29.
“I think that the government is under (obligation) to pay the salaries, to pay only the Bahamian workers versus the foreigners amounts to discrimination,” Mr Turnquest said when contacted for comment. “Both Bahamians and foreigners are responsible for maintaining that operation, so it is unfair for one (group) of employees to be paid and not the other.
“This is the difficulty in the government having decided to get involved in that process in the first place.
“It (Baha Mar) is a private entity that ought to be made responsible for its employees.”
Mr Turnquest, shadow minister of finance, added: “Again, what are you saying to the international community? You are setting a state sponsored discrimination regime.”
Mr Turnquest agreed with comments from other observers that not paying the salaries of Baha Mar’s foreign workers could have knock on effects for the economy, particularly the high-end rental market and niche businesses catering to those with more disposable income.
“Let’s face it, the expat community tends to spend more . . .it will have the effect on restaurants and other businesses, it is going to also mean an increase in vacancy of rental units which will have an effect on the real estate markets, at least in the short-term,” he said.
In a letter to staff last Wednesday, Baha Mar executive Magdalena Hamya criticised the government for not planning to also pay the resort’s non-Bahamian employees, saying this decision sends a terrible message to the resort’s non-Bahamian workers.
“The unfairness of the government’s refusal is underscored by the fact that the government has already processed two payroll cycles for our Bahamian citizens and requested details required to process the third cycle,” Ms Hamya, Baha Mar’s vice-president of human resources, wrote.
“This is a terrible message the government is now sending to our non-Bahamian citizens. We acknowledge the irony that you came to the Bahamas based on the government’s stringent review of your qualifications in granting you a work permit,” she continued.
“It is very distressing for us to contemplate that the government of the Bahamas finds it acceptable to leave you without salaries that you have already earned.”
The resort pointed out that arrangements in a US Delaware Bankruptcy Court last month would have allowed its developer to pay all employees if the Bahamas Supreme Court approved its Chapter 11 process.
In those court documents, it was also revealed that arrangements were also made to eventually lay off most of the resort’s staff if efforts to restructure its affairs were not successful in a short period of time.
Meanwhile, the status of negotiations over Baha Mar are unclear. When contacted yesterday, Attorney General Allyson Maynard-Gibson would not reveal if talks in Beijing are continuing.
“I don’t want to add anything other than what our lawyer said to the court last week,” she said when asked about the issue.
However, she added that it is “preferable that the matter be resolved by agreement between the parties” and that everybody would like to see the site remobilised and operated.
Last Friday, the Supreme Court adjourned a hearing into the government’s winding up petition until August 19.
That same day, in a statement, Mrs Maynard-Gibson said that as of 6pm last Thursday agents for Baha Mar, the China Export and Import Bank and China State Construction reported that “progress was being made on an out of court settlement.”
Comments
Bahamian_in_London 9 years, 3 months ago
What a ridiculous situation. Sarkis was willing to put another $70m in to the development to make sure everyone got paid, but the PLP intervened and prevented this so 'employees could not be used as pawns'.
Then they decide to not pay the expats, resulting in one of the brands leaving - the others will no doubt soon follow. By the time we get to the 19th August liquidation hearings, there will be nothing but a shell left to liquidate - all the operating contracts will have disappeared and it will take another 2 years to find new operators.
Well done Christie, you and your team of incompetents have single handedly destroyed any chance of Baha Mar opening in the near term and no doubt dissuaded any foreigner from making a substantial investment in the Bahamas for the next decade.
jackbnimble 9 years, 3 months ago
Yep. The Government is clearly on a mission to frustrate and shut Sarkis out. Make room for the Chinese, baby. Dey comin'!!!!
ObserverOfChaos 9 years, 3 months ago
Guess when a politician (aka Perry) is paid $1 Million dollars to side with the chinese it causes all types of problems....so now we just sit back and watch the whole nation implode.....good luck Bahamas!
stislez 9 years, 3 months ago
Another form of racism! shame on perry dem jed.....dey wan make it seem like dey checkin fa us ya, by tryna say dey onli ga pay bahamians. If dem man dem gat work permit an dey workin, why da f une wan pay dem..........
My2cents 9 years, 3 months ago
It's greed, not racism. If it were not, no amount of money would have caused them to side with the Chinese.
TalRussell 9 years, 3 months ago
Finally, Minnis has found his election platform to campaign on come the 2017 General - the red party will take up the fight to force taxpayers, to pay all da salaries of out work permit holders.
Nope, you couldn't possibly make this stuff up, but it sure as hell seems to have sparked a much need fire in their flames less red torch extinguished by PM Christie, since 2012.
Honestman 9 years, 3 months ago
I would hate to have your job Tal. It must be like being a criminal defence lawyer when you know your client is guilty. Why don't you just hand back the yellow shirt, the microwave and come join the true Bahamians who just want to see corrupt politicians of all persuasions kicked out on their a**?
PKMShack 9 years, 3 months ago
but yet they can put Bahamians in their place, and from any other example Baha mar will only last a few weeks. Not that we don't have qualified workers, we just don't conduct good business on a small scale. not mentioning a mega business. For those who don't like the comment name me a well ran Bahamian business other than the PLP....LOL who are in the business to destroy
birdiestrachan 9 years, 3 months ago
The bottom line is the Bahamas Government can not afford to pay these salaries. They should be very careful with paying any salaries at all. they are setting a dangerous precedent. Where will it end and how will it end.?
newcitizen 9 years, 3 months ago
There was financing set up to pay the employees through the Chapter 11 filing, but instead the government blocked that so that they could use the employees as their own pawns.
They should not be paying anyone's salaries. What a waste of our money.
themessenger 9 years, 3 months ago
Birdie is that really you? You actually disagree with something your beloved PLP have done?? Are you beginning to see the light and unshackle yourself from the rail of the S.S. PLP before she makes her final plunge into the abyss?The terrible tragedy of this shipwreck won't be the drowning of the fat rats on board but the Titanic consequences for the rest of Bahamians who were abandoned at sea and left to sink or swim by the corruption, greed & incompetence of our so called leaders.
newcitizen 9 years, 3 months ago
Birdie's comments all day have been well reasoned. Tal's gone off the deep end and Birdie is making sense. What's happening?
jackbnimble 9 years, 3 months ago
The Government is using money owed to Bahamar. They can afford it.
BahamaPundit 9 years, 3 months ago
It appears by not paying "Non Bahamians," they are also not paying spouses of Bahamians who have a Spousal Permit. This is causing harm to Bahamians married to these spouses. Does anyone have any information on this?
ohdrap4 9 years, 3 months ago
i do not have any info on this. however, in the past, where spousal permits did not even exist, many bahamians and their children suffered by virtue of their non-bahamian parent not being able to obtain a permit. any similar situation would not surprise me.
Right242 9 years, 3 months ago
You reap what you sow, Mitchell. This is the beginning of the end for the Bahamas. Unfortunately, its the citizens that are paying the price. No expats will ever want to come work in the Bahamas again. And we all know that most Bahamians are either unqualified or simply do not have the work ethic as expats.
TalRussell 9 years, 3 months ago
Comrades, how close to declaring Baha Mar, the new "over da hill" of Cable Beach? It done looking all fenced-in depressed and may just stay that way. How long before the Shanty Towns residents, be’s "movin on up" new digs?"
So what, if it ain’t on da east side island, still makes for a great location to house a “co-op” of Shanty Towns, completes with they’s own private “dock,” built by better salaried sweat expats, stretching clear out to touch the insides da mouth da Atlantic Ocean.
…..///https://www.youtube.com/watch?v=L09qnRfZY-k
MonkeeDoo 9 years, 3 months ago
We all have a good time posting shit here but guess what, these incompetent bastards do not read the Tribune, much less the comments. Somehow we need to share the top brass PLP cells and e-mails and find an app that can send these posts straight to them. Or just create yahoo accounts with these pseudonyms They still think the people love them. Not that the people's love got them elected - Bran's stupidity did that. Nincompoop !!! Anyone got one for PGC WWW, Minion, Fweddy. Post it ! Birdie ? Comrade Tal ? Any other yella bellied sapsuckers ?
Wideawake 9 years, 3 months ago
Bran's ego, as well as his stupidity, and the stupidity of all those who wasted their vote by voting DNA, which let the moribund PLP back in with all their old crew of grabacious has-beens.
Rontom 9 years, 3 months ago
Clearly, the plp understood the not-too-subtle hint by Sarkis about 'the Bahamian people will decide' at the polls... Guaranteed, they are working on campaign finance reform but know that it will hurt them too...and doubly know that whatever is given to the plp to campaign with, could be matched and doubled to be given to the fnm. The fireworks have just begun.
OMG 9 years, 3 months ago
Whilst the Government set a new and unsustainable standard by paying redundant employees the decision to exclude expats staggers belief. Imagine if the situation was eversed, all hell would break loose with charges of discrimination and the usual whites oppressing the black worker All this added to our roving ambassador going on about insulting the "office" of the prime minister Disgraceful to say these things in public however your personal feeling.
Stapedius 9 years, 3 months ago
Never should've started down the road of paying in the first place. Again, we end up with the 'too big to fail scenario,' and the government is forced to bail out. My impression is that the project hired too fast and there wei a lot of people milling around doing nothing. I know of a few personally who spent their days literally doing nothing. The hotel was not complete so their training could not be completed. Anyway, let's hold hands and sing cumbaya so we can find a solution.
Mayaguana34 9 years, 3 months ago
Moody's arrives next week and Standard and Poor's should be posting soon - CRedit down grades inevitable - This could be the beginning of the perfect storm - Clearly the Government will force Sarkis out by any means necessary
Sickened 9 years, 3 months ago
The PLP aren't just forcing Sarkis out, they are also pushing a very large percentage of the middle class out. And unfortunately, the middle class that remain in The Bahamas will eventually end up either in the upper class or sadly in the lower class. We must keep an eye on Puerto Rico as I fear that our economy is only a few years behind theirs.
Rontom 9 years, 3 months ago
Actually, for the very same reasons you have detailed will the plp want Sarkis to reopen Bahamar as given the scenario of forcing him out only further delays this project by months potentially years...This is a game of Chicken (played by the PLP) and Game Theory (played masterfully by Sarkis).
The sad thing about it is, downgrade is inevitable; our government looks weak and tribal; our country suffers the kind of economic downward spiral that wont be so easily recovered from: mass unemployment; more taxes on those left with a job; increase cost of living; and unstable government. Yes, PLP--the very thing you say you are fighting for comes directly from you own doing. But I am reminded of an old quote from a 50s Mummy movie-- The Evil That Man Has Brought Has Power To Destroy Itself...
Sign in to comment
OpenID