THE Bahamas Union of Teachers is accused of not paying hundreds of retirees monies owed them for payment of retirement benefits and payment of their money to the pension trust.

It is believed that some retirees are owed more than $7,000, which includes interest over seven years.

Averell Mortimer and Frances Friend, former area vice presidents of the BUT in Grand Bahama; and Jacob Rolle, former chairman of BUT Central and North Andros district, are claiming more than 400 retired members are owed money from the union.

They accused BUT of allegedly circumventing the authority of the annual general meeting, which they said passed a resolution at its 2008 meeting instructing the union to pay each retiree $1,000.

The union was also reportedly instructed to deduct $8 per month from members’ dues into a pension fund.

Mr Mortimer said they have written letters requesting assistance from the Department of Labour and the Minister of Education to help resolve this long-standing issue that spans some 13 years. He confirmed they have received letters of acknowledgement from both government agencies.

When contacted by The Tribune yesterday, Director of Labour Robert Farquharson said the Department of Labour is of the view that the dispute is an internal matter between members and the union, thus the agency cannot get involved. He stated that the issue would have to be resolved in the court.

When contacted yesterday about the allegations, BUT president Belinda Wilson declined to comment.

In a press statement issued to The Tribune, the disgruntled group alleged some retirees were still paying dues after 40 years of service when the union’s constitution indicates dues would not be deducted after 40 years of service.

“Some members are owed in excess of $7,000,” the group claimed.

According to the statement, after 2019 many members would have contributed more than $1,000.

The former executives stated at the 2015 annual general meeting, the union was instructed to pay the funds collected from members to the BUT Pension Company Ltd, commonly called the Pensions Trust.

The BUT Pension Plan Company Ltd is registered under the Companies Act 1992.

Since 2015, the pension trust reportedly paid five percent interest on deposits. It was claimed that BUT now owes five percent interest compounded for seven years to those retirees owed the $1,000, plus the deduction beyond $1,000 after 2019.

“Some retirees have died and are still owed funds,” the retirees claim. “We are seeking ministerial intervention in this matter.”

Mr Mortimer said he finds it egregious that the union has reportedly asked retirees to accept $500 as a final payment for their pension money.

He claims the union is trying to shortchange retirees.

“This is less than half of what is owed to the retirees,” the statement said.

The former executive also said: “It is our belief that the Ministry of Labour can put an end to these appalling acts against the mandate of its AGM, the Industrial Relations Act, and its membership. It is our hope that some action will be taken to resolve these issues through the powers of the Ministry of Labour and the Ministry of Education.”

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