By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Ministry of Labour was yesterday working with Cavalier Construction to ensure the 54 employees it terminated last week receive all the severance pay and benefits due to them under the law.

Dion Foulkes, minister of labour, said his ministry was informed about the 64 year-old construction company's closure last week. "First of all I want to confirm that Cavalier Construction gave notice to me last week pursuant to law that they were closing their operation, which also includes the Bobcat operation, and that affected some 54 employees," he added.

"The Department of Labour and a team of our officers, we are working with Cavalier to ensure that the benefits under the law are given to all 54 employees. This is a very sad time for those employees and their families.

"I would encourage all of the employees to register with the Department of Labour," Mr Foulkes continued. "There are many construction job opportunities that are available in the Family Islands and in Nassau. So if they can register with us I am sure that some of them will find alternate employment.

"Also, I would like to encourage them to avail themselves of the unemployment benefit, which is a relief they can get for the next few weeks so they can continue to meet their commitments."

Cavalier, in its promised statement after this newspaper revealed its permanent closure and the termination of all staff, admitted it had effectively been "cut out of the market" by the growing tendency of developers/investors to rely on construction management firms to oversee their projects.

These firms, Cavalier explained, tended to divide the construction work into "smaller packages" and then share it among multiple contractors and sub-contractors who often performed specialised tasks. As a result, the Bahamian construction market had shifted away from relying on one general contractor to perform all the necessary work.

Cavalier's statement revealed that its business had been declining for several years as a result, leaving it unable to sustain its large workforce and high overhead costs. It cited a "significantly reduced turnover/workload" as the primary factor behind the decision to close its doors for good, and blamed its inability to restructure/downsize on the Employment Act's prohibitive redundancy costs.

Cavalier Construction was founded in 1956 by the late Godfrey Lightbourn and Eugene Pyfrom, who were 50/50 partners. They sold the business in the early 2000s to a management-led buyout, which was headed by late managing director, Richard Wilson.

Among Cavalier's major jobs in The Bahamas have been Albany, Bayroc, the Atlantis Convention Centre, Caves Point and the Nassau Straw Market.