Showing posts with label Baha Mar Chinese workers. Show all posts
Showing posts with label Baha Mar Chinese workers. Show all posts

Friday, November 19, 2010

Sir Sol Kerzner says: The proposed deal between the Government of The Bahamas and Baha Mar violates previous agreements between the government and Kerzner International

Sol Kerzner hits out on Baha Mar
By BRENT DEAN
The Nassau Guardian
Deputy News Editor
brentldean@nasguard.com


Says Baha Mar deal violates agreements made with his company


The proposed deal between the Government of The Bahamas and Baha Mar violates previous agreements between the government and Kerzner International, charged Sir Sol Kerzner yesterday.

“Baha Mar proposes employing thousands of foreign Chinese workers, which would represent far more than 30 percent of the total labor force.

Approval of this arrangement by government would be a clear breach of an investment agreement with a developer that has become its largest private employer, and an investor who took a risk on The Bahamas when its economy was struggling far more than it is today,” said Sir Sol Kerzner, chairman and chief executive officer of Kerzner International in a statement.

The House of Assembly is scheduled to conclude debate on the Baha Mar resolution today. The company is seeking 8,150 work permits for Chinese workers to help construct the $2.6 billion resort. The government is seeking the blessing of the House as it grants the work permits. The opposition has said it supports the deal.

In previous heads of agreements between Kerzner and the government, it pledged to grant Kerzner most favored nation status, meaning no investor would be granted concessions greater than Kerzner.

However, in a rare public statement, Kerzner, who is the largest private sector employer in the country, said Baha Mar is being granted much more than his company received.

“When we made our largest single investment of approximately $1 billion for Phase III, we did so based on a heads of agreement signed with the PLP government in 2003. Among the many requirements that government imposed on Kerzner under this and prior agreements was a strict rule that at least 70 percent of the total construction labor force would be Bahamian,” said Kerzner.

“As was the case with the two previous agreements with government, our 2003 agreement included a most favored nation provision that assured Kerzner that our investments would be protected from subsequent investors receiving more favorable terms. These agreements represented a solemn promise by The Bahamas to us that any subsequent investor would only compete against us on a level playing field.”

Prime Minister Hubert Ingraham said on Sunday that the Baha Mar deal would be approved by the end of the month. It is unclear if Kerzner’s intervention will have any effect on that pronouncement.

Yesterday Baha Mar was not pleased with Kerzner’s public intervention.

“We are not going to comment on Mr. Kerzner’s public relations statement. The Baha Mar project has been well vetted with the public, the government and its investors. We are happy the Baha Mar resolution is being debated in Parliament today,” said the company in response to Kerzner.

Kerzner International said it intends to discuss with the government how to address its concerns. As a result of the deal, Baha Mar is to receive on the labor and land components of the proposed deal, Kerzner can argue it is entitled to the same.

The government is transfering 265 acres of public land at Cable Beach to Baha Mar as a part of the deal.

Kerzner International emphasized that the heads of agreement for each of the three phases of development on Paradise Island required that at least 70 percent of the total construction labor force had to be Bahamian.

Bahamian labor is more expensive than labor from countries such as China and Mexico.

The company and its chairman argued that the deal Baha Mar is to receive “would represent a material breach” of its agreement with the government.

“When Kerzner first invested in The Bahamas by acquiring what is now the Coral and Beach Towers out of bankruptcy in May 1994, we made our investment on the basis of agreements with the government that gave us contractual assurances regarding our investment. Although we were confident in our abilities to re-establish the Bahamian tourism industry at that time, we did so in the face of truly dire economic conditions,” said Kerzner in his remarks.

“Accordingly, we insisted upon most favored nation treatment, which would ensure that no subsequent investor would be given advantages that we never enjoyed. Since our first investment, we have always found government – irrespective of the party in office – to be a faithful partner who has justified our initial and subsequent confidence in The Bahamas as an investor. We have invested more than $2.3 billion over the course of our build-out of the three phases of Atlantis, increasing our room count from approximately 1,100 in 1994 to over 4,000 today.

“We have grown the Bahamian workforce from approximately 1,200 employees when we commenced operations in 1994 to nearly 8,000 full-time employees today, not to mention the indirect employment that our investment has generated in the community. Furthermore, we have spent millions on training programs to develop and improve the skills and professionalism of our work force, which has allowed Atlantis to be rated among the top resorts in the world.”

Both the governing Free National Movement and opposition Progressive Liberal Party support the Baha Mar deal.

11/18/2010

thenassauguardian

Tuesday, September 21, 2010

Chinese Criminals to Work on The Baha Mar Project: Embassy of the People's Republic of China in Nassau Responds to Allegations

Speculation that Chinese criminals may work on Baha Mar 'baseless'
By MEGAN REYNOLDS
Tribune Staff Reporter
mreynolds@tribunemedia.net:


SPECULATION that thousands of Chinese criminals will be brought in to build Baha Mar have been called baseless allegations by the Embassy of the People's Republic of China in Nassau.

Concerns raised in the local press suggested the Chinese government has chosen convicts from its overcrowded prisons to work on foreign projects and may do the same when they bring in 8,150 workers to construct Baha Mar.

Editorial writers called on government to exercise due diligence in vetting their work permits if the foreign labour is approved as concerns stemmed from an article published in a Canadian newspaper, The Globe and Mail, which reported that China "has devised a novel strategy to relieve pressure on its overcrowded prisons: Use convicts as labourers on overseas projects in the developing world." It gave as example projects in Sri Lanka, the Maldives and Africa where Chinese labour was used.

But the suggestion that The People's Republic of China may use the $2.6 billion Baha Mar project to export criminals to the Bahamas provoked a clear clarification of the facts from the Chinese embassy.

Liu Liqun, second secretary and press officer at the Embassy of the People's Republic of China, said that the allegations are unfounded.

"The Chinese Embassy fully respects each and every view expressed surrounding the Baha Mar project," he stated.

"However, such groundless accusations, which insult not only China, but also those countries having cooperation with us, go beyond tolerance."

Mr Liqun said that the Chinese contractors who have been working tirelessly on the Bahamas National Stadium project, "are disciplined and diligent, winning full respect and high praises from the Bahamian society."

PLP MP Fred Mitchell suggested the reason for speculation over the integrity of Chinese workers could stem from the FNM government's failure to be clear with the public on the issue.

He said: "The government is not exercising any leadership with this project and I think it's deliberate because they want to scuttle the project and that lets in speculation about this or that.

"I think some of the criticism has been exaggerated, but each view should be seriously considered by the authorities to see whether or not it is possible to deal with the concerns.

"However they seem to have the country flailing around wildly without any sense of direction."

A labour resolution tabled by Prime Minister Hubert Ingraham in the House of Assembly has paved the way for the approval of work permits for the 8,150 Chinese workers and parliamentarians are expected to debate and vote on the resolution this Wednesday or Thursday.

The ratio of foreign workers to Bahamian employees at Baha Mar is expected to be 71 per cent foreign to 29 per cent Bahamian during the construction phase as agreed in the partnership deal between Baha Mar, the China Export-Import Bank and China State Construction.

Mr Mitchell said the anticipated parliamentary vote is ludicrous as it is the government's responsibility to decide whether the Chinese employees should be permitted to work at Baha Mar or not.

"What business is it of ours to ask Parliament whether or not the government should grant work permits?" he asked.

"I think the whole notion is ludicrous.

"The Prime Minister is looking for political cover because he's afraid to make the decision."

Baha Mar estimates it will take around five years to build six hotels with around 3,500 rooms and condominiums, a 100,000 sq ft casino, 200,000 sq ft of convention facilities, a 20-acre beach and pool experience, an 18-hole golf course and a 60,000 sq ft retail village in Cable Beach.

The project is expected to inject an estimated $1 billion into the Bahamas Gross Domestic Product (GDP) and create almost 11,000 permanent jobs for Bahamians.

September 20, 2010

tribune242

Friday, September 10, 2010

Baha Mar deciding factors

The deciding factors for Baha Mar
tribune242 editorial


IT IS understandable why former Prime Minister Perry Christie was still haggling over the BahaMar deal up to two days before the 2007 election, which he lost.

Not only was he concerned about whether the developer had enough finances to see the project through, but he certainly did not want the "secret" clauses involving prime land in the agreement to be exposed on the floor of the House. Just before an election an admission that government was prepared to transfer 264,965 acres of public land on Cable Beach to a foreign investor could have scuttled his election.

Likewise, Prime Minister Ingraham is taking no chances in the new Baha Mar deal with a new partner. The request for work permits for foreign labourers -- 8,150 with the peak number at any given time being 5,000 -- is unprecedented. This is one decision that his government is not going to make alone. The Bahamian people -- through their duly elected representatives -- will now have to join government in saying aye or nay to the $2.5 billion project.

If either of these proposals -- the land deal or the labour request -- had been presented to the Bahamian people in 2007, there would have been a loud bellow: "Hell, no!"

But times have changed. Too many Bahamians are jobless. In 2007 no one could predict the world's economic collapse. Today suffering from that collapse, Bahamians need jobs. They have to educate their children and pay their bills. And so they will probably agree to the project provided all foreign workers on completion of their work are repatriated. Also if the developers do not live up to their agreement, all public land will revert to the government.

We certainly understand the position of the Chinese. Wherever they do similar projects, they use their own material and labour. Not only do they understand what they are dealing with and know how to cost it, but it is their money, and their policy is to invest it in their people. And so the concessions that they are now prepared to make to Bahamians from their point of view would be a considerable bending of their own rules to accommodate Bahamians.

It is said that all Chinese workers, 8,150 of them, will be engaged on Baha Mar's "Core" projects, while some 1,200 Bahamians will be employed in the non-"Core" projects. Mr Ingraham said that the Baha Mar principals are in discussion with their Chinese partners to also engage Bahamian contractors in a number of "trade packages" related to the Core project, totalling about $40 million. It is expected that this might engage about 3,300 Bahamians at the height of construction of the Core projects.

Mr Ingraham said that in the 1950s the law and the government permitted as high as 25 per cent of the labour force in construction and/or operation of tourism development to be foreign. Beginning in the 1980s, said Mr Ingraham, the practice evolved where large foreign components were engaged in the construction of hotels, and a smaller number of foreigners were allowed to work in the hotel upon completion.

He reminded House members of the substantial foreign work force engaged to construct the Crystal Palace Resort and Casino, the Wyndham Crystal Palace Resort and the US Departure Terminal at the then Nassau International Airport. He said at those two projects there were Indians, Brazilians and other foreigners who far outnumbered the Bahamian work force.

When in 1992 his party became the government, it was decided to discontinue the PLP employment practices. In 1993, he said, on agreeing the terms of the redevelopment of Kerzner's Paradise Island, "notwithstanding the demonstrable need for the engagement of large numbers of expatriate experts and labour for the timely completion of the project," the ratio of Bahamians to non-Bahamians on the construction site was not to exceed 30 per cent foreign to 70 per cent Bahamian, increasing on the required Bahamian component above the 1954 statutory base of 25 per cent.

However, he pointed out that when the PLP succeeded his government, they did not adhere to this employment ratio on the construction of the Bimini Bay resort at North Bimini. As a result, foreign workers, mainly Mexican, far exceeded the number of Bahamians engaged on that project.

And now they are faced with the Baha Mar project: a 71 per cent foreign work force to a 29 per cent Bahamian work force.

The legislators now have to decide on behalf of their constituents: Will this revive employment and will the transfer of technology and skills to the Bahamian work force make this project not only viable, but also attractive?

This will be debated and decided in the House on Wednesday or Thursday, September 22 and 23.

In the meantime Baha Mar has to satisfy the Scotia Bank loan before it can conclude a deal with the Chinese bank. And so the two deciding factors- the Bahamian people on the one side, and Scotia Bank on the other before Baha Mar and their Chinese partners can turn the first sod of Bahamian soil.

September 09, 2010

tribune242 editorial

Thursday, September 9, 2010

Baha Mar Chairman and CEO Sarkis Izmirlian Allays Foreign Worker Fears

Baha Mar Chief Allays Foreign Worker Fears
By IANTHIA SMITH


Clearing the air on the foreign labour component of his multi-billion dollar proposed hotel project, Baha Mar Chairman and CEO Sarkis Izmirlian claimed the situation is not as bad as it looks, as thousands of Chinese workers will not be in the country long.

In fact, Mr. Izmirlian said the whole labour issue surrounding Baha Mar has been totally misconstrued.

"It’s true that at the peak of construction we are going to have about 4,950 expat workers in The Bahamas, but that is only for a period of six months," he explained when he appeared as a guest on the Love 97/JCN weekly talk show "Jones and Co with host Wendall Jones on Sunday.

"Construction [will last for] four years. During the four years, the average number of expat workers is only going to be 1,700. So it is much lower than the numbers that are being put out there. But the best part is when construction is over and the expats go home, we are going to create 6,500 full-time high paying Bahamian jobs."

Initial reports indicated that the Chinese government proposed to hire 3,300 Bahamians during the construction phase of the Cable Beach project and 5,000 to 8,000 Chinese workers.

Government officials said this translates into five Chinese workers to every three Bahamian workers.

Recently commenting on the disparity, National Security Minister Tommy Turnquest said never has any government policy allowed a ratio of non-Bahamian to Bahamian workers on construction projects of this magnitude.

But according to Mr. Izmirlian, the plan is to create 4,000 Bahamian jobs during construction.

"When you compare the number of expats, the number of Bahamian jobs and the economic impact during construction it is really as not as it has been described in the press," he said.

The government is expected to bring a resolution to parliament tomorrow to determine the number of Chinese labourers required for the project, a move former Cabinet minister Pierre Dupuch calls "illegal."

He claims it usurps the constitutional power given to the government.

But the number of Chinese labourers is not the only issue Baha Mar officials face.

Whether the project moves ahead is contingent on Baha Mar resolving its debt with Scotiabank.

Baha Mar owes the bank some $200 million.

On Sunday, Mr. Izmirlian moved to allay any fears of his company’s inability to satisfy the debt.

"We’re committed to finding a solution with the bank. We are committed to moving this project forward for me, my family and for the benefit of The Bahamas. I don’t see that as a hindrance," he said.

"Again, it takes a little bit of time, but I think we’ve reached a point where we are ready. The government is ready to bring this to parliament. We’re ready to start construction, so hopefully over the next few weeks, we should be done."

When asked if he thinks the project has become political, Mr. Izmirlian said, "any project of this size would be."

"I hope that we can put the politics behind us because to me the message from the Bahamian people is loud and clear – they want to move on. They need jobs. The country needs it," he said.

"I can’t think of a downside to this project. It’s great to create a small hotel here in The Bahamas, but when you have this level of unemployment, this many children coming out of school each year, you need a big bang. You don’t need a promise of the future. You need it today."

Officials from the National Congress of Trade Unions of the Bahamas (NCTUB) recently threw their support behind the development, claiming they are satisfied the controversial project is in the country’s best interest.

NCTUB President John Pinder said his union also supports the number of foreign workers being drafted as, "we do not have the skill set to do this project on our own."

Mr. Izmirlian accepts that more training is needed.

In fact, he said very early after construction starts, Baha Mar will work with the various unions, the Bahamas Technical and Vocational Institute (BTVI) and other schools to train Bahamians.

"We need to give them the skills so that when the hotel opens, they are ready to start," he said.

"It’s going to be a challenge to train people, but our goal is to train, train and train."

Baha Mar is projected to generate almost $15 billion in GDP, with more than 8,100 direct and indirect jobs, totaling in excess of $7 billion in wages over a 20-year period.

September 7th, 2010

jonesbahamas

Friday, September 3, 2010

The National Congress of Trade Unions of The Bahamas (NCTUB) endorses the multi-billion dollar Baha Mar project

UNIONS ENDORSE BAHA MAR
By KRYSTEL ROLLE
Guardian Staff Reporter
krystel@nasguard.com:



Reversing its stance on the controversial Chinese labor issue surrounding the multi-billion dollar Baha Mar project, the National Congress of Trade Unions of The Bahamas(NCTUB)yesterday endorsed the project, saying the benefits outweigh any difficulties the union had.

Initially NCTUB threatened to hold massive demonstrations if the government approved Baha Mar's bid to bring in approximately 5,000 Chinese workers the mega resort says it needs during the project's construction phase.

However, during a news conference yesterday, NCTUB President John Pinder acknowledged that The Bahamas does not have the capacity nor the skill set to construct the project without the help of foreign aid.

"After further consultations with Baha Mar officials we got all of the concerns we had addressed and we're satisfied that this project is in the best interest of this country,"he said during the news conference which was held at the Bahamas Public Service Union headquarters on Wulff Road."We are further satisfied that we do not have the skill set to do this project all on our own."

Pinder said the issue with work permits can be a serious revenue generator for the government.

"It's proposed that Baha mar may ask for as much as 5,000 work permits, but at no time will there be 5,000 Chinese workers,"Pinder said."We are told that they will maximize the use of Bahamian workers qualified to work on this project and the semi-skilled persons. We have asked that these positions be made known to us so persons could apply for various positions."

"Work permits will cost Baha Mar an average of$5,000 per work permit... we believe this is a golden opportunity for the government to raise some revenue to be able to ensure that unions are able to get some sort of increase for our membership,"he continued.

The union also hopes that the government would consider using a percentage of the $5 million it stands to bring in from work permit fees to expand and redevelop the Bahamas Technical and Vocational Institute(BTVI).

Pinder said the key to the union's endorsement was the assurance by Baha Mar officials that Bahamian workers will receive first preference during and after the construction, and that Baha Mar will train Bahamians in some of the more modern techniques that are currently not widely used in the country.

NCTUB Assistant General Secretary Jennifer Isaacs-Dotson said the union in conjunction with the Ministry of Education, BTVI and The College of The Bahamas would ensure that workers receive on-the-job-training.

She said the union would be working closely with Baha Mar personnel to hack out the details of the training exercise.

"Our main job is to ensure that workers receive cross training. This is a good opportunity to train our workers,"Dotson said."Every time a large project comes, we say we don't have the skilled workers. I think it's now time to put our money where our mouth is."

Dotson added that the union's initial concerns also had to do with the lack of consultation both the previous Christie administration and the current Ingraham administration had with the union on the project.

"We need to be involved more at the ground level,"she said, adding that the union will be present on the day the government brings the issue to Parliament.

Leader of Government Business in the House of Assembly Tommy Turnquest confirmed that the Ingraham administration intends to bring the labor resolution to Parliament on September 8. Turnquest said the MPs would be allowed to express their views on the labor issue before the government makes a final determination.

If a majority of MPs take issue with that component, he said the government would have to take that into consideration prior to making its decision.

Pinder said the union is hoping that the government and the official opposition will give the necessary approval for the project.

Turnquest said publicly that at the height of construction Baha Mar could have up to 8,000 foreign workers on the project.

Dotson said it would also be the union's job to protect the rights of the Chinese workers. Yesterday the union pledged to make every effort to do that if the work permits are granted.

Baha Mar has said that out of the 10,000 proposed construction jobs the project will create, at least 3,300 will be set aside for Bahamians. Eight thousand permanent jobs are also projected once the resort is completed.

The proposed Cable Beach development would be financed by the Export-Import Bank of China and constructed by the China State Construction Engineering Corporation.

If the project receives Bahamas government approval, Baha Mar's first course of action would be to award nearly$60 million of construction contracts to six Bahamian contractors, representing early infrastructure works needed to prepare the site, Baha Mar's Chairman and Chief Executive Officer Sarkis Izmirlian said in a press statement last month.

9/2/2010

thenassauguardian