Industrial action would be unwise

Mon, Sep 26th 2016, 11:30 AM


Former staff of Sandals Royal Bahamian Resort at Christ the King Church in Ridgeland Park collecting severance checks.

In 2013, the Bahamian economy did not grow. In 2014, it contracted by 0.52 percent. Last year it contracted by 1.67 percent. Our unemployment rate was last measured at 12.7 percent. The youth unemployment rate was 25.8 percent.

Sandals and the Bahamas Hotel Maintenance and Allied Workers Union (BHMAWU), the group representing workers at the hotel, have been at odds for years. A fight between the two over which union would represent workers at the resort went all the way to the Privy Council, with the BHMAWU winning the fight. Other matters between the resort and union are now before the courts.

The poor relationship between the union and hotel culminated in Sandals terminating 600 people from its New Providence property, paying them what was legally owed and shutting the property for refurbishments.

It was an aggressive move by the hotel. It was expensive, too. Sandals is now hiring new staff for its reopening.

The unions in the country consider the hotel's move the worst type of union busting. They have threatened industrial action. They have threatened to shut down the town. This is misguided.

In free enterprise societies, entrepreneurs hire staff to help them make profits. There are reasonable laws in place as to what must be paid to workers when businesses decide to end their employment. Companies cannot be forced to keep workers eternally. Sandals paid the workers what was owed to them.

The terminations were unfortunate. It would be more unfortunate, however, if the unions put more workers' jobs in jeopardy by striking. In this recession, many businesses are just holding on. The down times have been made worse by the Baha Mar bankruptcy. Bahamian companies provided goods and delivered services to the resort. They were not paid. That outstanding debt has taken some to the brink.

For some reason the relationship between Sandals and this union became toxic. The workers were terminated. The union pushed a private prosecution of Sandals' executives - a prosecution the attorney general controversially stopped. Government has a role to play in mediating relationships between big capital and big labor in our number one industry. But the government's efforts can only help if both parties are willing to compromise.

If Sandals and the union cannot come to a working relationship, if they will not allow the government to help mediate a middle ground, then the courts will have to settle the various disputes that exist, and those that will emerge.

That confused state of affairs would not be helped by a wider strike. Labor should be working with government to create policies that lead to more job creation and economic growth. These are not the times for more instability. The union leaders should realize that.

Brent Dean, Nassau Guardian Editor

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