The Atlantis resort on Paradise Island.
By LEANDRA ROLLE
Tribune Staff Reporter
lrolle@tribunemedia.net
SEVEN hundred employees at Atlantis Resort on Paradise Island were laid off yesterday, a decision resort officials say was made due to COVID-19’s impact on travel and other economic uncertainties.
In a letter sent to staff, dated May 16, Atlantis’ president and managing director, Audrey Oswell said that while the decision to reduce its 7,300 strong workforce was a difficult one to make, it was necessary due to the losses the hotel had incurred from the pandemic.
And with COVID-19 continuing to impact travel worldwide, Ms Oswell said there is still uncertainty as to when the nation’s tourism industry will be able to fully recover from the pandemic – a situation she said had also factored into Atlantis’ decision to make workers redundant.
“We are collectively living through the worst pandemic of our lifetime, and as it began to unfold, global travel came to a standstill,” Ms Oswell wrote. “Our business suffered significant losses, and in response, we drastically cut costs that touched nearly every corner of Atlantis.
“While these actions were necessary, it became clear we had to go further when faced with two hard truths: We don’t know exactly when travel will return to normal business levels (and) when travel does return, it will be different for everyone.
“While we expect Atlantis to recover fully and business volumes continue to increase since reopening, the significant changes we will undergo are not temporary or short-lived. Because of this, we need to make fundamental shifts by reducing the size of our workforce around a more focused business strategy.
“Unfortunately, we have to part ways with team members that we respect and value. Out of 7,300 Atlantis team members, 700 of our colleagues will not be returning.”
The number affected is equivalent to almost 10 percent of the Paradise Island resort’s workforce.
The terminations, though unfortunate, will likely come as a welcome reprieve to some furloughed workers who have long been calling for their severance packages and benefits.
The government’s emergency orders suspend Employment Act provisions, which mandate that companies must pay full severance to workers who have been sent home for 90 days, until a month after these powers expire.
“I think there were a number of persons who wanted some finality to their relationship with Atlantis,” Tourism Minister Dionisio D’Aguilar told reporters after Atlantis’ announcement yesterday.
“...So, for those persons, I think they are delighted that that relationship has now been concretized but obviously, tourism has been substantially (and) negatively impacted by the coronavirus. A lot of companies started off by furloughing to mitigate the necessity to sever people, but Atlantis has now gotten itself into a position where it can sever people and pay them the monies they would’ve earned based on their years of experience… and for those who really hoped (to come) back, obviously it’s going to take a little bit longer for them to find employment.”
Despite the news, Mr D’Aguilar said officials still remain optimistic that the nation’s economy will improve as more people get vaccinated and become “emboldened” to travel.
“We’re expecting a quick rebound, maybe not to the levels of 2019 but nonetheless employment levels will begin to go back up,” he said.
As for how the Atlantis’ terminations have affected the nation’s unemployment figures, Labour Minister Dion Foulkes was unable to say yesterday.
However, he admitted there is much uncertainty “with respect to the unemployment situation in The Bahamas” right now, calling Atlantis’ decision to lay off staff as “unfortunate.”
He said the government is doing all it can to “ease the burden” on unemployed individuals and noted officials will re-assess several of its assistance programmes to determine whether it will be extended if things do not improve.
In the meantime, Mr Foulkes urged Bahamians not to lose hope, but instead to look to other working opportunities.
He said: “I would encourage all of the 700 members, families and employees affected today to number one: register with the Labour Department’s employment exchange. Every day, we have businesses that reach out to the exchange for new hires so there are opportunities within the economy, and I wish to encourage those persons affected today to register.
“Also, I wish to encourage those persons who are interested in business, whether it’s a small business or medium sized business or a large business no matter what the size, to talk to the Small Business Development Centre.
“Thousands of Bahamians have accessed the funding from the SBDC and are now running successful businesses. I know of some hotel workers who are operating businesses from their home and have been affected by the pandemic,” Mr Foulkes added.
The Labour Minister also pointed to the upcoming opening of Baha Mar’s beachfront water park, Baha Bay, and also, the Pointe for potential job opportunities
“There are two big prospects on the horizon now,” Mr Foulkes said. “The Pointe development which intends to hire some 500 to 600 permanent employees and also Baha Mar Bay. Their new development that they’re opening in a couple of months, I think they are aiming to hire some 700 employees, so I wish to encourage the 700 workers who are affected today to also access those opportunities.”
Asked if he was aware of any other hotel properties which intended to follow in Atlantis’ footsteps, Mr Foulkes replied: “No, the government has not received any indication of any resorts in New Providence or Grand Bahama or any other Family Islands of any intended terminations.”
Comments
enough 3 years, 5 months ago
Boy in capitalism the business always wins. So after the laws were basically changed to protect the hotels so that for more than a year they never made the employees they had on reduced pay redundant so that the hotel would not have to pay them out. They now turn around, as we are told tourism numbers are increasing, and make 700 people redundant.
Dawes 3 years, 5 months ago
Or they held out hope that things would get back to normal and they wouldn't have to let anyone go and have now realized that won't be happening for a long time so have let the people go.
JokeyJack 3 years, 5 months ago
Exactly. More emergency orders, less water park.
Proguing 3 years, 5 months ago
Hummm Atlantis has been losing tens of millions of dollars for over a year now. Not sure how this is a win...
GodSpeed 3 years, 5 months ago
Well who didn't see this coming? A business will act in the best interest of the business, it's up to the employee to save their salary and invest it wisely so that they can weather these kinds of events. At the end of the day it's just a job, it's not supposed to be forever.
JokeyJack 3 years, 5 months ago
People dont need jobs, they just need to wear their masks. 15 days to slow the spread, it's really that simple.
Sickened 3 years, 5 months ago
Most businesses have cut well over 10% of their staff in the last year - probably closer to 50% on average. Although 700 jobs is a big number to swallow, especially in the size economy we have, as a percentage it's not bad.
Godson 3 years, 5 months ago
I love you dearly Bahamas. But you will not get the blessings of The FATHER if it is the case that you have thrown out HIS Children; instead, you will inherit hardships like you are experiencing now. Why would He bless this House, that is, Our Country when the government and its agencies continue to alienate, ostracize, and persecute the faithful of The LORD who, for all intent and purposes, are the very inheritors of this Country? My father, Joseph McBain Johnson, was one of the few recruits who enlisted and went off to fight in World War I, yet, I am treated like a bastard.
proudloudandfnm 3 years, 5 months ago
So god mad at the entire planet?
Godson 3 years, 5 months ago
It is not a matter of "God being mad" to any degree with the planet, it is a matter of us as a country, led by sober and righteous leaders, being in a strategic position so as to be able to navigate and weather the storm of the Coronavirus; similar to Noah being singled out from the rest of the people in his day. Wisdom cannot be destroyed, however, many are denied its access.
We are getting the experience we deserve because we voted in the leaders that are there. Hence, what we are experiencing, is to the extent of their ability to lead. A leader can only take you as far as they themselves have gone.
ForeverDreamer 3 years, 5 months ago
Which leader was "right with god" in you estimation? Trying to understand by which measure do you hold a true leader at.
tribanon 3 years, 5 months ago
The curse of Minnis is upon us, and the worst is yet to come.
DDK 3 years, 5 months ago
What a horrible mess they have created. This renewing of dictatorial powers seems to have broken at least one more camel's back. Can't we lay off Minnis and his minions?
jujutreeclub 3 years, 5 months ago
I feel your pain Nick but BTC is calling your name.
bahamianson 3 years, 5 months ago
well, I hope you already sent the email before posting this. Now , every employee is scared to open his /her email.
DonAnthony 3 years, 5 months ago
I expect they will cut the unvaccinated first. Bahamas get vaccinated, it is the only way out of this crisis.
GodSpeed 3 years, 5 months ago
lol no thanks
tribanon 3 years, 5 months ago
Some in big pharma are now saying you might need a much more costly booster or two every 6 months or so. You had better get your order in while you still can. lol
carltonr61 3 years, 5 months ago
One FNM Hubert created Atlantis as another Hubert destroy it. A horrible sign, till November 2021,then till may 2022 to follow. Any child could read that script, Atlantis' big boys also.
TalRussell 3 years, 5 months ago
Is it turning out to be BIG MISTAKE to have a traveling medical doctor as the realm's prime minister - who has been mixing up the top-heavy portfolios for all and important things and matters to do with finance and COVID clinical, which is being directly conceived and run right out of and from the politically toxic propaganda section within the walls of the office of the prime minister (PTSOPM), yes?
proudloudandfnm 3 years, 5 months ago
With Nassau exploding in covid I doubt the cruise lines will homeport there anytime soon. But we're doing very well here in GB, come! We'd be happy for the business...
proudloudandfnm 3 years, 5 months ago
I see the terminally stupid are up in arms again. Blaming poor minnis for a global pandemic and their own refusal to vaccinate... Ah well. You can't fight stupid...
realityisnotPC 3 years, 5 months ago
Exactly! As if shedding 10% of their workforce constitutes the breaking of the camel's back...and as if the renewal of the emergency orders, rather than the ongoing pandemic, had anything to do with it. As you say, you can't fight stupid.
tribanon 3 years, 5 months ago
Minnis becoming PM back in May 2017 was the straw that broke the camel's back.
John 3 years, 5 months ago
ATLANTIS and many hotel properties, not only here but around the world, adopted a policy years ago where they regenerate their staff by terminating the older staff and bringing in new faces. The hotel industry is no longer one where you can retire in being a good bartender or waitress. Marketing data indicates that hotel guests want to see young and energetic faces and hotels comply to remain competitive. So they made 750 redundant today and gradually bring in new workers. A similar situation occurs in most of the retail stores around the country. But workers are hired on two, three or four year contracts. When their contracts expire they may be given the option to renew if their employment was favorable, but they must sign up as a new worker. So they are not entitled to long term benefits or other benefits.
ForeverDreamer 3 years, 5 months ago
This would make sense, if the labor cases by the Tribunal have not been in favor of employees who were essentially denied permanent status through contracts.
John 3 years, 5 months ago
It makes sense because the cases in which the Tribunal rules is an infinite amount compared to the number of people being terminated from their jobs
ForeverDreamer 3 years, 5 months ago
I have in my possession at least 5 judgements where in which the tribunal did not agree that renewing a contract made an employee "non-permanent" and termination pay had to be calculated in a permanent measurement and not on the contractual basis. So, unless you have other information, you may be assuming.
JohnQ 3 years, 5 months ago
Pretty simple.........with long term decreases in revenue, the entity must eventually make adjustments to remain solvent. Workforce restructuring is at the top of the list for an organization of this size. It is nothing personnel, just business.
When faced with a similar situation in own lives, every single one of us would eventually have to make changes that we would ordinarily prefer not to make.
TalRussell 3 years, 5 months ago
No shortage anti-government and business arguments, full conspiracies is forthcoming but rare to be treated to how to work at rebuilding improved, restructured tourism offering over the 3-5 years heavy lifting recovery will take, yes?
tribanon 3 years, 5 months ago
Wrong. Many have commented ad nauseam on this website about what they believe could and should be done to address the bigger issues facing our country today. You just happen to not be one of them. But your more subtle pro Minnis, pro FNM bias has not gone unnoticed by most of us.
TalRussell 3 years, 5 months ago
Right!! After COVID's curfews and business shutdowns began, now into its second year, the PopoulacesCommeners' has grown weary of the same repeated misleads and are left feeling like the officials in charge have no real grip as to how to respond to changing of lifestyles, times, yes?
Jetflt 3 years, 5 months ago
This is EXACTLY the result of more emergency orders instead of reopening the country to tourism. Make people sign up for a health visa, go get your test, upload the COVID test, pay for your health visa, wait on edge and hope you get your health visa in time, fly to the Bahamas, and on day 5 go get in line for yet another COVID test to get back into the U.S. And you wonder why tourist aren’t coming to the Bahamas?? I’ll tell you why.....it’s NOT worth it, it’s a total pain in the ass, and people don’t need to come to the Bahamas that badly!!! So keep requiring all this boo-sh-t, and see how fast tourism numbers rise. Trust me - there are more layoffs to come. You all ain’t seen nothin’ yet!!! Government at its finest!!!
proudloudandfnm 3 years, 5 months ago
Funny how no country where tourism is their main industry is seeing normal visitor numbers.... The FNM screwing up the entire world hey?
Damn man this aint rocket science. Until this virus is brought under control tourism will remain depressed globally. Period. End of discussion... Stop with the idiotic theories already.
tribanon 3 years, 5 months ago
Man, you sure are either ignorant or a blind die-hard supporter of Minnis no matter what. I'm inclined to believe you're the latter.
Florida right next door to us is still in the midst of an incredible bonanza tourism period that started last summer and may well go on for the next few years as they continue to eat our breakfast, lunch, dinner and dessert.
And it seems you're conveniently oblivious to the fact that several countries in the Caribbean like the Dominican Republic are also now seeing tourists in great numbers. You really need to pull that head of yours out of your _ _ _ !
Bobsyeruncle 3 years, 5 months ago
Florida right next door to us is still in the midst of an incredible bonanza tourism period that started last summer
According to Visit Florida, the number of tourists visiting Florida was down 60% in the 2nd quarter of 2020, down 33% in 3rd quarter and down 33% in 4th quarter. The number of Canadian visitors for the whole of 2020 was down by 65%..
For the 1st quarter of this year the number of overseas visitors to Florida was down 75%, and the number of Canadian visitors was down 97%. Personally, I wouldn't exactly call that a tourist bonanza.
Since you like to tell others how they conveniently like to ignore facts, might I suggest you practice what you preach.
tribanon 3 years, 5 months ago
Brookfield's bean counters have no doubt been told to sharpen their pencils and model cash flows, etc. under a worse case scenario where all but one or two of Atlantis's main hotel buildings are shutdown and at least two-thirds of its existing staff complement are laid-off by the end of this year at the latest.
It's no secret that Brookfield had been trying to off-load its entire Atlantis resort property for quite a few years before the Wuhan Virus came along, but those efforts did not meet with any great success beyond the sale of the Ocean Club and Hurricane Hole properties. The cash bleed out rate must now be such that more desperate measures need to be carefully considered.
And let's face it, what Minnis and D'Aguilar have done to make the Wuhan Virus so much more worse for our economy than it should have been does not exactly instill Brookfield's partners and managing directors with any great degree of confidence that the Bahamas will be seeing large numbers of tourists anytime in the foreseeable future.
John 3 years, 5 months ago
You started to make sense until you posted this crap. EVERYONE knows this corona virus are beyond the confines of Wu Haun. It is global. Whether man made or natural. And this virus was in The Bahamas before or around the same time it surfaced in China. Doctors were seeing patients with this ‘strange flu’ but they had no identity for it.
tribanon 3 years, 5 months ago
I will leave it for you to explain, if you so wish, why the economy of the Bahamas has fared so badly during the Wuhan Virus compared to many other tourism dependent states/nations in our region of the world, e.g. Florida, Dominican Republic, etc.
Alan1 3 years, 5 months ago
One of the main reasons the economy is so bad is because we have so few visitors. With all the difficult entry rules and the hassles to obtain a Health Visa people are travelling elsewhere where it is far easier to enter. There have been many complaints but the Tourism Minister refuses to ease up on the harsh rules. Soon we will not have an economy .
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