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Credit union cuts off Club Land’Or

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Director of Labour said yesterday that while he had secured a “gentleman’s agreement” from Club Land’Or to pay outstanding sums owed to its employees, the deal will not be legally binding in the absence of a trade dispute beimng filed.

Robert Farquharson said that to-date no trade dispute has been filed on behalf of employees at the troubled property, which is in “serious financial straits” and owes staff wages for 22 weeks.

The Bahamas Hotel Catering and Allied Workers Union (BHCAWU), which represents Club Land’Or employees, normally assists members to file trade disputes against their hotel employer but has yet to do so.

The union’s general-secretary, Darren Woods, when contacted by Tribune Business yesterday, said he was unable to speak on the matter as he had been out of the Bahamas for several days, but assured he would look into it.

Mr Farquharson, meanwhile, told Tribune Business: “The Minister of Labour had asked me to intervene a few months ago in the situation at Club Land’Or. I had met with a number of employees on a number of occasions to try and resolve the situation.

“The employer is a non-Bahamian, and the company is in serious financial straits. The employees are legally represented by the Bahamas Hotel, Catering and Allied Workers Union. As a result of my intervention,  I was able to get a gentleman’s agreement from the general manager on behalf of the employer to pay certain outstanding moneys over a period of time.”

    Mr Farquharson added: “I encouraged, and strongly recommended, that the employees file a trade dispute in order for this to be legally biding. To date, none of them have filed an official trade dispute under Section 16 of the Industrial Relations Act.

“Once a trade dispute is filed it initiates the legal process. Any agreement that I would have encouraged the management to sign with the employees really is a gentleman’s agreement. I can confirm that the management has not lived up to that agreement because the employees are still owed large sums of money.

“In order for me to properly refer the matter to the Tribunal or refer the matter to the Supreme Court for arbitration, a trade dispute has to be filed and none of the employees have field a trade dispute to date,” he added.

“I think they are afraid that if they file a trade dispute they will lose their job. You can’t penalise people for exercising their rights under the law. I have intervened. I have met with employees and management. Management has made some commitment to us. They would have paid some of the outstanding monies, but based on information received up to last week they still have a number of months pay for these people.”

National Workers Cooperative Credit Union chief executive,  Alfred Poitier, told Tribune Business that the credit union no longer does business with Club Land’Or.

“We don’t do business with them any more. We don’t take deductions from Club Land’Or any more,” he said.

The small Paradise Island resort has between 40 to 60 staff members. Managers and staff claim they are owed 22 weeks pay.

During the two years that Club Land’Or was being actively marketed for sale, its price dropped from $43 million to $38 million.

It has long been regarded as a troubled property, and in 2012 managed to head-off a Supreme Court application by creditors to place it into receivership.

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