The Tribune

* Warns total losses more with managers

* Says resort indicated just 25% occupancy

* Labour chief confirms termination plans

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The hotel union's president yesterday said "about 50" of his members are likely to be terminated by the Ocean Club as the resort right-sizes ahead of dismal occupancy levels forecast for the New Year.

Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union's (BHCAWU) president, told Tribune Business the Four Seasons-branded Paradise Island resort had informed it just prior to Christmas that it was anticipating occupancy levels of just 25 percent "going well into the New Year".

John Conway, the Ocean Club's general manager, was said to not be at work yesterday and was unavailable for comment, but Mr Woods said the number of permanent terminations would be more than 50 as managerial posts were likely to be impacted too.

The terminations, which are taking place even though the Employment Act's redundancy provisions are suspended due to the Government's COVID-19 emergency powers regulations in a bid to preserve jobs, were confirmed by John Pinder, director of labour, who said the resort had informed the Government as required by law.

Mr Woods, who said Atlantis was the only unionised hotel yet to terminate significant numbers of workers in COVID-19's wake, said of the Ocean Club's move: "We're on top of that. They had sent us a note, and we're now trying to get the amount of persons, their names and their entitlements.

"We got the note just before the holidays, and they were to follow up with communications to those persons affected so they know what their entitlements are. It's apparently taking effect today. They said they have to move immediately."

Mr Woods said the Ocean Club, which is owned by Access Industries, the conglomerate controlled by Ukrainian-born billionaire Len Blavatnik, had "indicated they are going to move ahead with" the redundancies despite the Government's suspension of Employment Act provisions giving them the option of furloughing staff temporarily.

"It's not limited to one department," the hotel union chief added. "It's a mixture of managers and employees. We won't know how many managers, but we're looking at about 50 persons from the bargaining unit.

"They've [the Ocean Club] indicated that because of COVID-19 they will not be able to sustain the amount of employees they have as they're forecasting about 25 percent occupancies going well into the New Year. They'll not be able to maintain in terms of employees. This is the latest hotel to do something."

Mr Woods, estimating that the high-end resort has about 300 staff, acknowledged that the Christmas/New Year period was among the worst periods for workers to lose their jobs especially with the resort and wider tourism industry starting to re-open following the COVID-19 induced shutdown.

The Ocean Club's move exposes the ongoing fragility and vulnerability of the hotel/tourism sector as it continues to rebound. The hotel union chief, though, said some terminated workers may be happy to get their severance pay and benefits in a lump sum given that they will likely have been furloughed and only receiving the $100 weekly government unemployment benefits.

Mr Woods also acknowledged that, with thousands of hotel industry workers still waiting to be recalled by other properties, the prospects of the terminated Ocean Club workers quickly finding jobs elsewhere in the sector were likely to be more limited than normal.

There were suggestions that up to 30 Ocean Club workers received their termination notices yesterday, with more to follow over the rest of the week, as Mr Pinder confirmed that the resort had notified the Department of Labour of its plans in advance.

"We were informed about the terminations. I think they're supposed to start today [yesterday] or the end of the week," he said. "Most of them have to do with the way the guests used to book their private accommodation in villas. The way business will be done in the future, there's not that same one-on-one touch with the guests that there used to be. That ain't happening no more.

"They're [the Ocean Club] not able to maintain that level of staff, so they have to make some persons redundant. Most of those persons are due to retire in any event. Everybody is preparing for what they consider the new normal, and the hotels are readjusting themselves to come back in full force and figure out what they're going to be."