Foreign Labour versus Bahamian Labour in The Bahamas

The imbalanced Bahamian labour market in The Bahamas

Foreign Labour vs. Bahamian Labour

By Jamal Moss

In the Bahamian labour market, a notable disparity exists between the wages and job opportunities available to foreign workers versus Bahamian nationals.  Foreign workers often occupy high-paying positions, while locals frequently find themselves in lower-paying roles or receiving significantly lower wages for similar job titles.

This imbalance can lead to economic inequality and social unrest, with Bahamians feeling marginalized in their own country.  Addressing this issue requires a multifaceted approach to ensure fair employment practices and opportunities for locals.

Possible Solutions

To address the misalignment between Bahamian labor market supply and demand, several measures can be implemented:

1. Skill Development and Training Initiatives: It is essential to develop targeted training programs that align with the qualifications needed for high-paying occupations in sectors such as tourism, finance, and technology.  By investing in skill development and certification programs, Bahamian workers can better meet the demands of these growth sectors.

2. Promoting Local Entrepreneurship: Encouraging local entrepreneurship can create more high-quality job opportunities for Bahamians.  Providing grants, low-interest loans, and business development services can support small and medium-sized enterprises (SMEs), fostering economic growth and technological advancement.  Jean-Pierre (2022) highlights the importance of such initiatives in boosting local employment and reducing social costs.

3. Policy Review and Reformation: Policies should be re-evaluated to prevent foreign labor from directly competing with local workers.  Setting parameters for the employment of Bahamians and implementing quotas for foreign workers in specific sectors can help balance the labor market.

4. Public-Private Partnerships: Developing partnerships between the government and private sector can enhance internship and apprenticeship programs.  These partnerships can provide on-the-job training for Bahamians, bridging the gap between education and employment, and improving access to better-paying jobs.

By implementing these strategies, The Bahamas can work towards creating a more equitable labor market, ensuring that Bahamian workers have fair opportunities and are better positioned to contribute to and benefit from the country's economic growth.

References

Jean-Pierre, M. (2022). The education system of The Bahamas: The first quarter of the twenty-first century. In The education systems of the Americas (pp. 91-117). Cham: Springer International

Source

The Bahamian Brain Drain - By Jamal Moss>>>

The Bahamas Brain Drain

The Bahamas needs to improve its educational system to mitigate the brain drain and improve human capital

By Jamal Moss

Nassau, The Bahamas

Employment and Labor Market in The Bahamas

The challenges of Bahamian labor markets comprise various complex issues that affect the strength of its economy.  This article delves into three critical issues: brain drain in The Bahamas, wage employment of foreign workers to Bahamian workers in quality jobs, and measures to build up the middle class in the wake of taxation and inflation.

Thus, these issues are noted, and corresponding gradual commonsense changes are suggested, considering the nature of the Bahamian labor market and possible directions for its development.  First, I wish to focus on the brain drain problem affecting The Bahamas and offer incremental solutions.

Brain Drain in the Bahamas

The Bahamas faces the challenge of brain drain where educated and profound personnel migrate from the country to other developed countries where they are well rewarded.  The issue deprives the government of human capital, which is crucial in the country’s development process.  This situation is critical since high levels of unemployment, particularly among our youthful population, compel such brains to migrate in search of opportunities elsewhere.

The Bahamas has to promote educational opportunities, provide favorable working conditions, improve job procurement services, and encourage those who left to return home.  Our island nation has to retain talented people and attract gifted individuals necessary for the country’s development.

Every year, an average of 5000 students leave high school, and university graduates get to seek higher education in other countries.  Hence, there are not enough jobs or poorly paid according to their education level waiting for them.  The Bahamas should advance educational rights, demonstrate employers’ benevolence, and augment job assistance.  The Bahamas has to keep the human capital and draw skilled people, which is essential for the country's progress.

Incremental Solutions

The Bahamas needs to improve its educational system to mitigate the brain drain and improve human capital.  Financing in higher education institutions and vocational training centers will help provide quality education and training (The Nassau Guardian, 2023).

Having linkages with other institutions worldwide for exchange programs can help learners gain international benchmarks and retain talent by providing the best learning environment within their country.  Such an approach will enhance the quality of learning and place the Bahamian qualifications in parity with the international standards, making Bahamian graduates more marketable within and outside The Bahamas.

It is significant to establish a favorable working atmosphere.  Enhancing working conditions and pay will make local markets for jobs more appealing.

Bonuses such as medical coverage, pension and perks etc increase morale and, thus, worker retention.  This helps in enhancing The Bahamas government guarantee its professionals have access to such crucial benefits (Watson & Gustave, 2022).

By these possible commonsense solutions, The Bahamas can increase the attractiveness and support of its labor force so that it would not be tempted to work in another country.  Focusing on the staff’s growth and encouraging them to participate in various courses and seminars is beneficial and results in a more devoted and loyal human capital.

Another essential strategy is enhancing employment placement services.  Improving job placement and career counselling services will be necessary to match those graduating with appropriate jobs within the country.

People can use technological advancements to develop a central database for employment vacancies.  Encouraging Bahamians living in other countries to return home, tax relief, relocation allowance, and preferential employment would enhance recruiting qualified staff.

Other convincing cases regarding people becoming returnees may also encourage others to do the same, ultimately benefiting the country’s talent pool and overall progress.  We cannot continue to allow our young fresh minds to slip through our hands so easily like sand.  We must be intentional in fixing this leak. 

Source

Foreign Labour versus Bahamian Labour in The Commonwealth of The Bahamas - By Jamal Moss>>>

...the paradox of the migrant and the missing Bahamian worker in The Bahamas

The Missing Bahamian

By Jones Bahamas:


Life as it is experienced at the street-corner level in today’s highly urban-Bahamas conjures up a medley of competing images.
 
At one extreme, there is that widely held assumption that daily life in most of our heartland communities is all about crime, hustling and other such acts of deviance.

At another remove, there is that other lived reality where daily life as experienced in all its rawness and has to do with village life; people bustling about engaged in this or that money-making enterprise.

There is that popularly held notion that life at the community level in some of our heartland-communities amounts to an ongoing struggle by one faction [the decent, law-abiding and penurious citizen] against another, [the law-breakers]: thus the current police-led thrust of Urban Renewal 2.0.

What is interesting about these perspectives has to do not only with how each has been constructed by this or that interest group; but by what each somehow or the other manages to neglect or elide.

Each misses the fact that daily life in our heart-land communities and for that matter throughout our nation is marbled through and through with foreign workers – whether at the elite level as they are to be found as advisors to government, consultants and managers in the hotels and banks.

Evidently, foreign workers – legal and illegal alike- are to be found wherever there is a need for skilled workers; thus all those electricians, plumbers, masons, cooks, nurses, teachers, security guards who are gainfully employed.

Interestingly, some of these people are savvy enough, hard-working enough and disciplined enough and honest enough to not only hold down a job, but also fit and proper enough to send remittances home to their families.

Missing from these serried ranks is an untold number of Bahamian men and women; people who would prefer hustling, drifting here, there, hither and yon armed with complaint piled upon complaint as to what they had expected this or that administration to do for them in exchange for their vote.

We sometimes wonder about why when the hard times fall – practically everyone with a voice blames someone or the other for the myriad of woes experienced either by themselves or others.

This blame-game is all for naught. When it comes to blame, there is enough of the stuff and more for all who would wish to play the game.

Now think – if you will – about this: If you want a really good tailor – there is a Haitian or Chinese who can and will accommodate you. The same principle applies if you are looking for a really good chef: here you can readily find one who is from Belgium, France or another such European country.

If you want a really good maid to live in and do your bidding, hire a woman from the Philippines – and the list goes on for any number of other jobs and occupations.

Sadly, missing from the list are so very many Bahamians who might – if only they were ready, able and willing – to man more of these jobs, some of which are fairly well-paying.

Call this – if you will – the paradox of the migrant and the missing Bahamian worker.

The migrant population in the Bahamas comprises mainly of Haitians who settle for work, while others are from Cuba and Jamaica. There is also inter-island migration, chiefly to New Providence and Grand Bahama islands.

We have a situation where the qualified, hard-working migrant gets both the job and the work; whereas his Bahamian counterpart oftentimes wants the job and the pay that it brings; but could care less about value delivered for money.

One of the more cruel jokes currently making its way around this island and perhaps also around this archipelago has to do with a Bahamian man and his wife [both unemployed] living off neighbors, family, friends and Social Service who – when interviewed by a news reporter- averred that they wanted jobs, not work.

Both were convinced that a government job was just the ticket they needed.

They wanted jobs, but were clearly not looking for work.

By stark contrast, there are thousands upon thousands of other people – some of them living and working as so-called ‘illegals’ – each and every day apply themselves to the task of earning their daily bread.

Today we look in not only on these people’s lives but also on those of some of our people who believe that the world owes them something.

The day of the free lunch – if they did not know it – is long gone.

15 August, 2012

Jones Bahamas

Caribbean Blog International

...at the end of the day, workers will be laid off if the Atlantis resort performs poorly... just like in 2008 with the onset of the global financial crisis

Politics and the Atlantis deal


By PACO NUNEZ
Tribune News Editor


As is to be expected at this advanced stage in the election cycle, every issue with potential political mileage is going to be spun for all it's worth.

Just so with the collapse of the Atlantis ownership transfer deal. Mr Christie says Mr Ingraham should have been more forthcoming about the details, Mr Ingraham says Mr Christie's poor decisions in office created the conditions that led to the deal in the first place, and Branville McCartney says both men knew the proposal was bad for Bahamians, but kept this information from the public.

And, in another clear indicator of the times, even while politicking their hearts out Messrs Christie and McCartney have both sought to give the impression they are the only straight talker; the one not using the failed deal as a political stick to beat the others with.

The PLP leader has provided us with perhaps the most amusing quote, a classic example of political doublespeak.

Berating the Prime Minister for "playing politics" as the deal collapsed, Mr Christie said: "Atlantis is the nation's single largest private employer and thousands of Bahamian jobs are at stake."

Then: "We're told he found out on Friday that the Brookfield deal was going under. Did he tell the people of the Bahamas? Did he call union leaders or meet with workers? Did he start reviewing options for moving forward? No."

Let's see if we can follow his logic. The issue is too sensitive and too important for the Prime Minister to continue with politics-as-usual. To prove this, Mr Christie tries to scare the hell out of everyone ("thousands of Bahamian jobs are at stake"), then uses his alarmist interpretation to criticise the behaviour of his political opponent.

A political jab, disguised as a warning about making political jabs. Did Mr Christie think no one would see through his crafty trick?

His version is alarmist and inflammatory, because anyone with the merest hint of business sense - and I'm sure that includes Mr Christie - knows two facts to be true.

The first is that there is nothing the government can do at this stage about the underlying factors: Kerzner's inability to pay its creditors and the decision of those creditors to call in their loans.

The DNA may well be right, the deal would not have been ideal for the Bahamas; nevertheless, it was the only one on the table. What should the government have done, allow the largest private sector employer in the country to go bankrupt? Stage a $2.3 billion bail-out?

Fact

The second, more important fact, is that contrary to Mr Christie's assertions, the failure of the Brookfield deal has in no way rewritten the future for Atlantis workers.

That's not to say everything will necessarily be fine in the long-run, only that the probability it will has not been improved or worsened by the collapse of the deal.

This is especially the case, as while the transaction was scuppered by two junior creditors, the major players were all onboard, meaning a revised proposal with relatively minor changes could see the deal resurrected soon.

So, at the end of the day, workers will be laid off if the resort performs poorly - just like in 2008 with the onset of the global financial crisis.

If Atlantis does well, people will keep their jobs. Simple as that.

Now, no one is naive enough to believe the going will be easy; the creditors will expect hefty profit margins. After all, they're in it to get their money back.

But an essential ingredient in this formula is the product, which attracts the guests in the first place, and the new owners will know an understaffed resort is the fastest route to falling standards.

So, is it merely a case of much ado about nothing? Not quite.

What all the political gauze of the last week or so has managed to do, is obscure the real lesson of this "crisis" - the extent to which the notion has become imbedded in our collective psyche that as goes Atlantis, so goes the Bahamas.

The anxiety unleashed by this turn of events exposed how inextricably intertwined our sense of national well-being has become with the fate of a single entity.

Even those violently opposed to the pink monstrosity across the bridge have been lulled over the years into the assumption of its permanence, its inevitability.

Leaving aside arguments about whether the nature of our economy would have allowed for any realistic alternative, can it be healthy for a society to pin all its hopes on a single business, the ultimate fate of which is decided beyond our shores?

Of course, this leads us into a consideration of what the Bahamas would be today if Sol Kerzner had never come here in the first place.

When 800 workers were laid off from Atlantis in 2008, there was widespread concern that it would spark a crime wave. What would the other 8,000 employees be doing right now if history had taken a different course?

What other cracks in our society have been papered over by the existence of a mega-resort which just as easily, might never have been?

* What do you think?

Email: pnunez@tribunemedia.net

January 23, 2012

tribune242

Caribbean Blog International

If workers are serious about their employment, they will think twice before being led astray by union leaders ...some of whom seem to have politics on their minds rather than the interest of the men and women whose best interests they claim to represent

WHOSE INTEREST DO UNION LEADERS REPRESENT?

tribune242 editorial




LOOKING over The Tribune's Labour files a few days ago we came across an interesting statement by hotel managerial union leader Obie Ferguson, who accused Freeport's Our Lucaya Beach resort of "union busting" by planning to lay off 50 managerial staff.

"Now the economy is showing signs of recovery," he told The Tribune, "I thought that now would be the time to do what should be done. Workers' rights are as important as profits. We will take the necessary poll and then do what we have to do."

Mr Ferguson made this statement in January last year at a time when in the estimation of every business person on the island - especially in Freeport -- the economy was looking even bleaker. And so we do not know how Mr Ferguson measures economic recovery. Maybe he had a glimpse of the hotel's financial statements and from that concluded that the hotel could support what he claimed "had to be done" and still keep its doors open.

At the time, Mr Ferguson was pressing Minister Dion Foulkes for permission for his union, which he said represented more than 100 of the resort's staff, to take a strike vote that would pave the way for disruptive action at the property.

Meanwhile, Nicole Martin, whose union represented the same hotel's line staff, was worried about increases she said were owed to the line staff under their industrial agreement. Earlier, the resort had announced that its Christmas season was not as good as hoped. It had told the union that since 2009 it was not in a financial position to meet those demands.

Earlier, it was acknowledged that the resort's owners, Hutchinson-Whampoa, had been subsidising the hotel's payroll. Prime Minister Ingraham had even praised the company for its supportive attitude towards the hotel and its staff during difficult financial times.

But Mr Ferguson must have had a vision. He saw things differently and thought it was time for some union muscle flexing.

When we read his statement, we could not help but think of the six blind men of Indostan who went to see an elephant. Although blind, and having to rely on touch alone, each had to "satisfy his mind" as to what an elephant looked like.

The first fell against the broad sturdy side of the elephant and decided it "is very like a wall." The second felt the tusk and decided it was like a "spear." And so on down the line -- the squirming trunk felt like a snake; the knee felt like a tree; the ear felt like a fan and the sixth was convinced that the swinging tail was "very like a rope".

And so the dispute began, each convinced as to what an elephant looked like and "though each was partly in the right... all were in the wrong!"

As none of them had seen the whole elephant, despite their arguing none of them knew what an elephant really looked like.

And so with these unionists, who although they never see the whole picture and do not know what obligations have to be met before salary increases can be considered, are always convinced that owners can and should meet their demands.

At present, Kerzner International is fighting to meet its financial obligations. It has a good management team that will do everything in its power to maintain staff levels and also meet its debts. Those debt obligations are extremely high. If they are not met, unless some agreement can be arrived at, the Kerzner team could lose its four-year management contract. And so, staff will have to be thankful for their jobs, and turn deaf ears to any demands that their union might tempt them to take during this difficult period. Even if they see every rooms filled to capacity every day of the year, unions nor staff can assume -- like the six blind men of Indostan -- that the hotel is making a handsome profit, and that there is any room for staff to make more.

We do not understand some of these union leaders. They complain that Freeport has no business and yet when organisations are trying to attract business, the union decides to demonstrate. For example, what possessed Freeport hotel workers to demonstrate at Grand Lucaya resort on the very day Vision Airlines and the Ministry of Tourism were hosting 80 travel agents and other tourism promoters from the United States? The visitors were invited there for a two-day familiarization trip in the hopes that they would recommend more visitors to fill the hotel. Imagine the very people who would benefit from a hotel full of guests, would decide instead to drive potential business away by demonstrations. Who can have sympathy for such short-sighted people?

And to add insult to injury their union leader had the nerve to pull another demonstration to complain that the 37 workers who scuttled an attempt to get more business for the hotel were fired.
Just where are these people coming from? From an outsider looking in, it seems that some unionists have a different agenda. Are they deliberately leading their members astray?

Who is going to sympathise with any worker who is going to undermine the efforts of people who are trying to bring more business to a resort to secure their jobs?

If workers are serious about their employment, they will think twice before being led astray by union leaders some of whom seem to have politics on their minds rather than the interest of the men and women whose best interests they claim to represent.

January 16, 2012

tribune242 editorial

Caribbean Blog International

As Labor Flexes its Muscles

The Bahama Journal Editorial


Today by way of this commentary, we wish to put in clearer perspective what we perceive as the political import of what seems to be an increased degree of restiveness on the part of so very many public sector workers.

On occasion, their main gripe seems to concern money. At other times, workers and their representatives seem to be preoccupied with matters germane to respect.

But no matter the reason or the season, the fact remains that, politicians always pay some kind of price whenever public sector workers become roiled and riled to that point where they say that, they are sick and tired of things as they are.

This is so because, unlike their counter-parts in the private sector, ministers cannot ignore the fact that when they step forward to bargain with workers, there is always some political element somewhere in the details.

That is why it is always so very instructive to understand the import of some of history's lessons.

We make this reference to the importance of history as we reflect on what is currently taking place on the industrial scene.

In a sense, what we are currently witness is a kind of macabre footnote to some of the demonstrations that took place in the late 90’s as the then governing Free National Movement faced the ire of a powerful cadre of workers.

It is to be noted that, today’s emerging labor situation seems eerily reminiscent of the situation and circumstances that existed in 1999, when the Free National Movement and its leadership found themselves challenged and openly disrespected by angry workers.

And so, with general elections on the horizon, it is anybody’s guess as to how things will pan out for either the governing Free National Movement or its political nemeses in the guise of the Progressive Liberal Party.

And for sure, even as we focus on the two major parties, we are acutely aware of the fact that, there are other forces – some of them allegedly and reputedly with deep pockets – who might yet have a decisively important impact on how things turn out.

In addition, there are other forces that seem poised to have some effect on the outcome of those contests whenever they take place. Here we reference, the role that might yet be played by workers in their guise as voters; and [yet again] as we have previously suggested, we have a background context where, for want of a more comprehensive understanding of what national development should be about; the Bahamian people and their leaders now wallow in a mire of despond.

And as they wallow, we have a situation on the ground where the hard men and women with guns in hand and murder in their hearts, are doing their thing.

We also know it for a fact that, history itself teaches that, workers can seat or unseat those in power.

Here we are quite certain that the power in this truism is not lost on either the governing Progressive Liberal Party or on its nemeses on the opposition side of the political street in The Bahamas.

As such, it should come as no surprise to any one that Bahamian workers are restive at this precise moment. This is surely due -in part at least- to the fact that workers are voters.

Evidently, too, with Christmas on its way; with a national economy that is in a parlous state; with utility bills as high as ever and with money as scarce as hen’s teeth; some of this nation’s workers are today as mad as hell.

Evidently, there is no telling how things will turn out for those who are governing and for those men and women who wish to take hold of the reins of power.

While general elections are still some ways off, the fact remains that workers know that – when the chips are down- they have a tremendous amount of power at their command.

Here we would advise all who would hear and all who would know that, they had better listen to the voice of the worker.

And while, we advise that those who lead and those who would lead should listen to the cries of the people; this is not to say that we are demanding anyone to yield to this or that insistent demand.

At the minimum, therefore, those who would take one position as opposed to another should explain themselves to the people.

Once this tack is taken, they can then let the chips fall where they may.
In the ultimate analysis, then, what makes this situation so very important is the fact that workers are voters. This means that whenever they wish, they can bring a government to grief and despair.

December 9th. 2010

The Bahama Journal Editorial

Bahamas Blog International

The essential differences between Messrs Hubert Ingraham and Perry Christie revealed

We Have No Choice?
by Simon


The House of Assembly debated a resolution on the Baha Mar deal recently. Unfortunately for the Perry Christie-led PLP, it has already lost the broader national debate on the proposed mega project.

This includes a haemorrhaging of goodwill from the PLP by many professionals and even many within the party who are flabbergasted and frustrated by Mr. Christie’s dissembling and series of incoherent statements on Baha Mar since its inception. Curiously, part of the story concerns – the BlackBerry.

Some weeks ago, Mr. Christie attempted to mock the Prime Minister for regularly checking his BlackBerry at a dinner attended by both leaders. Mr. Ingraham was monitoring any news of a settlement between Baha Mar and Scotiabank on an outstanding loan between the two entities.

The story reveals the essential differences between Messrs. Ingraham and Christie. Hubert Ingraham is a part of the Smartphone generation while his former law partner is a throwback to a bygone era, wedded to a model of economic development that is being assigned to the proverbial ash heap of history.

Mr. Ingraham’s use of the BlackBerry represents a forward-looking, tech-savvy style of leadership marked by a hands-on approach, timeliness and engagement. This is in marked contrast to Mr. Christie’s cavalier, late-again and disengaged style. The device that perhaps best represents his decision-making style is the telegraph, which in today’s world would be slow-moving, clunky and out-of-date.

But, the more defining difference between the men was revealed in one of the more shocking statements ever made by a Bahamian leader on a project as large and as involved as Baha Mar.

WE HAVE NO CHOICE?

On the eve of Mr. Ingraham’s departure for China, the Leader of the Opposition counselled the Prime Minister to take the Baha Mar deal as it was. His reckless advice: We have no choice! We have no choice?

One would have expected this to be the view of officials at Baha Mar, not of a former Prime Minister. Life is filled with choices, even in the most difficult circumstances.

It is clear that Mr. Christie would have headed to China on bended knee, as an agent for Baha Mar, representing narrow special interests rather than the broader Bahamian national interest.

Mr. Christie’s view that the country had no choice but to accept the Baha Mar deal as is, is the clearest insight yet into why he essentially gave away Bahamian treasure and land at Cable Beach which no Bahamian leader from the UBP, PLP or FNM ever did.

It explains the Great Mayaguana Land Give-Away in which beachfront property equivalent of the distance from the eastern end of New Providence to Lyford Cay was alienated to foreign interests.

It reveals why his party’s land policy has been disastrous for The Bahamas and why his talk of Bahamianization is mostly talk. It further demonstrates why Mr. Christie and the PLP are content to sell cheaply our national ambitions and dreams to foreign interests, often to the cheapest bidder, rather than genuinely empower Bahamians.

Thankfully, Mr. Ingraham disregarded Mr. Christie’s monstrously bad advice in his negotiations with the Chinese. He did so because he knows that The Bahamas indeed has a choice, indeed a number of choices, as we slowly recover from a global economic crisis.

HEAD-TO-HEAD

Rather than bended-knee, Mr. Ingraham went head-to-head with Chinese officials. Whereas Mr. Christie felt there was no choice than to accept $200 million dollars worth of contracts for Bahamians, Mr. Ingraham got that number doubled to $400 million. Those contracts will now include work on the Core Project which was not in the original deal.

In his Sunday press conference Mr. Ingraham noted that contracts will be awarded to large, medium, small scale and individual contractors. This is broad economic empowerment in fact, rather than just in talk.

Mr. Ingraham insisted on and got a sizable expansion of training opportunities for Bahamian workers and professionals. This dovetails with his administration’s revamping of the Bahamas Technical and Vocational Institute under revised legislation passed this year. It may also build on the National Retraining initiative launched last year.

The Prime Minister also suggested that there may have been some movement on phasing in the number of rooms at Baha Mar over a designated period of time.

Whatever the final outcome on this matter, it is clear that Mr. Ingraham went to China to negotiate a better deal for the country, as opposed to Mr. Christie who it appears may have gone simply for a signing ceremony and pomp in circumstances that would not have been as advantageous to The Bahamas.

WATERSHED

As noted previously in this column, the Baha Mar deal has been a watershed in terms of the vision and quality of governance demonstrated by Mr. Ingraham and the FNM in stark contrast to that of Mr. Christie and the PLP.

It must be a source of considerable angst for the latter, that the project they initiated has been re-negotiated on better terms and will be launched by an Ingraham-led FNM Government. History eclipses those who are irresolute, procrastinating and dithering when decisiveness is required.

The Bahamas deserves better than political, business or civic leaders telling us that we have no choice in charting our national destiny, despite the rough seas we are facing. This is the talk of those who are dragged along hopelessly by the stream events, rather than tacking and turning to navigate those events to one’s better advantage.

On Baha Mar and other foreign investment projects, Mr. Christie has shown that he is mastered and sidelined by events. Through painstaking negotiations Mr. Ingraham has shown that he knows how to shape events, even when presented with as problematic a deal as the initial one placed on the table by Baha Mar.

Mr. Christie’s declaration that the country had no choice on Baha Mar proved stunningly incorrect. It will prove to be one of the more disastrous pronouncements he has made in his long political career. It is a mistake the Bahamian people will clearly take into account as they make their choice at the next general election.

bahamapundit

Bahamas Blog International

Baha Mar project is good for The Bahamas

Forward with Baha Mar
The Bahama Journal Editorial



By way of this commentary, we reiterate a point previously made to the effect that this Baha Mar project is good for the Bahamas and that as such, its approval should be put on the fast track.

We base our conclusion in our conviction that –as designed- this project promises to double the marketing this country now enjoys.

This in turn, promises any number of ancillary benefits.

As Stephen Wrinkle, Bahamas Contractors Association underscores: "Remember what an impact we had when they built phase three of Atlantis. What they’re doing with Baha Mar is equal to all of the phases they did at Atlantis and they’re doing it one phase. This is a big deal…"

As regards the question concerning labor and its role in the realization of the Baha Mar project, Mr. Wrinkle said they were sorely needed.

Here Wrinkle notes that, “…They are calling for 8,000 workers out there; 4,000 workers have got to be found; we can’t provide 4,000 workers. We’d be hard pressed to provide half of that. On these big international projects it’s just a fact of life. We’ve sat at the table; the BCA has tried to represent the interests of Bahamian contractors and workers and we’ve had some success with Baha Mar; they’ve been receptive."

For our part, then, we are very optimistic concerning the goods that come packaged in with this initiative. And so today, we can go no further except to note that, Baha Mar is apparently well on its way to becoming a done deal; this because the current administration has apparently been satisfied with the outcome of prime minister Ingraham’s talks in Beijing on the matter in hand.

This is eminently good news for the Bahamian people.

We wish all well who worked so long and so hard to bring this matter to this state of high resolution. Parenthetically so to speak, this venture yet owes a debt of gratitude not only to the current administration; but also to its predecessor.

And so today we note that, time, reason and commonsense having been congealed into something akin to real understanding are apparently working their magic in a Bahamas where petulance, spite and nit-picking sometimes wreak havoc.

And for sure, as we have consistently lamented, these are surely some of the hardest days experienced by most Bahamians alive in what some of them might deem a ‘modern’ Bahamas.

It is just as true that, some of these Bahamians –having grown accustomed to relatively prosperous times – are beside themselves in distress.

While these hard times might well persist for an indefinite length of time, there is reason for some optimism as certain storm clouds recede; with some of these once shadowing the Baha Mar project with a veil of uncertainty.

Mercifully, things seem to be going in the right direction as the government now signals its intention to move forward with this singularly important venture.

Yet again, we reiterate that, we would very much like both the governing party and its Opposition to know that each has done itself a world of good by working together so as to bring about an optimal resolution as regards this Chinese funded initiative.

Incidentally, all of these groups and interests support the Baha Mar project and recognize the immediate and real benefits they will gain from its going forward.

Here we are also quite certain that, in the fullness of time, both parties would come to the conclusion that, each was guilty of making a mountain of a mole-hill as regards the Chinese request for thousands of expatriate workers who would assist in constructing the resort complex.

In this regard, we advise all and sundry that, this matter is not the biggest in the world and that, we all stand to gain tremendously once the Baha Mar project is off and running.

As we have previously suggested and explained, “…Let there be no mistake about the matter at hand – the Baha Mar project is a very big deal; it is not only a big deal to the investors who are putting their money on the line; but for sure, it is a huge deal for both the government and the people of The Bahamas.”

And we also went on to explain, “…“And here, let there be no mistake about another aspect of the matter involving this project – this project brings with it a large chance that – once completed – tens of thousands of Bahamians will benefit, either directly or indirectly…”

This remains our view.

November 17, 2010

The Bahama Journal Editorial

Bahamas Blog International

Sir Sol Kerzner - Kerzner International Chairman and CEO - has concerns about the terms of the Baha Mar deal

Kerzner concerned about terms of Baha Mar deal
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com


Kerzner International Chairman and CEO Sir Sol Kerzner has concerns about some of the terms of the $2.6 billion Baha Mar deal, Prime Minister Hubert Ingraham said yesterday.

Ingraham told reporters at a meet the press event that he met with Kerzner yesterday morning to discuss those concerns.

“There are some concerns on the part of Kerzner as to the extent to which Baha Mar is getting a deal from The Bahamas that is more favorable to them than Kerzner got,” Ingraham said.

“In 2003 when the government of the day signed an agreement for Kerzner to do its phase three, it agreed that nobody would get a better deal in The Bahamas for any development than Kerzner got.”

He added, “They are concerned about the extent to which they themselves had to pay huge sums of money for property to do their development and Baha Mar was given property at [concessionary] prices. Secondly, they were required to hire 70 percent (Bahamian) workers on their job, and only 30 percent foreigners and we are considering giving Baha Mar these 5,000 to 8,000 Chinese workers.”

Ingraham said Kerzner International officials will get back to the government on the extent to which they have justifiable reasons for their concerns.

“And we will review their concerns and make determinations, but in the meantime it will not interfere with our intention to approve the Baha Mar project by the end of this month,” he said.

Asked whether Kerzner International plans to pursue a phase four of its development, Ingraham said, “The reality is even if they had the money and even if they had the will, the desire, nobody would do a phase four at Atlantis if you’re going to put down on Cable Beach another 2,600 hotel rooms and all the facilities.

“The reality is that there is only one market. Nassau is only just one place and airlift and business and profitability and room rates and the whole host of things (come into play). So it isn’t likely that they are going to do another phase at the moment. That’s not likely.”

Ingraham said Kerzner told him yesterday that there is no truth to rumors that he is considering selling the Atlantis Resort on Paradise Island.

“He said absolutely not,” Ingraham said. “I believe him.”

11/15/2010

thenassauguardian

Bahamas Blog International

Bahamas Contractors' Association 'eagerly' awaiting word from the prime minister on his high-level meetings with the Chinese financiers of the $2.6 billion Baha Mar project

Contractors 'eagerly' awaiting word from PM on Baha Mar
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net


THE Bahamas Contractors' Association is "eagerly" awaiting word from the prime minister on his high-level meetings with the Chinese financiers of the $2.6 billion Baha Mar project.

Head of the association Stephen Wrinkle was hopeful that the matter would be discussed at length in the House of Assembly today. However a clerk in Parliament told The Tribune that the House of Assembly will not meet again until November 17.

"I guess everyone is eagerly awaiting his report. Once Cabinet is advised I would assume they would make their findings known in House of Assembly (today)," said BCA president Wrinkle yesterday.

The prime minister met with members of the BCA a day before he left for his official visit to China and took stock of their group's concerns, especially their push for increased Bahamian labour incorporated into Baha Mar, transfer of knowledge from skilled Chinese workers to Bahamian labourers and greater funding allocated to train locals working on the project.

"He took those along with him and hopefully he brings back good news," said Mr Wrinkle.

Mr Ingraham returned from his trip to China - after stopping in Barbados to attend the funeral of Prime Minister David Thompson - last Friday.

He has been quiet on what transpired during that trip.

However, Mr Wrinkle expects to hear positive news.

"We always expect to hear good news, we're hopeful, I know the prime minister and his delegation did his best to (negotiate) the best deal possible and whatever he's done, we'll take it and run with it," he said.

The Tribune understands that compromises "may have been reached" between Mr Ingraham and the Chinese over the concerns he has voiced about the level of Chinese labour participation in the Baha Mar project and the single phase of construction involved.

According to information reaching The Tribune last week, there were three "points of compromise" arrived at between Mr Ingraham during meetings with the China State Construction Company - the general contractor for the $2.6 billion Baha Mar resort development - and officials from the China Import Export Bank in Beijing.

One of these compromises is said to be that a larger quantity of construction work and related dollars will go to Bahamian contractors.

Two other negotiated points were that more funding - in the hundreds of millions of dollars - would be allocated towards the training of Bahamian workers and the transferring of skills/knowledge during the project and the proposal that while it would be built in one phase, the resort's six hotels would "open in phases."

November 10, 2010

tribune242

Bahamas Blog International

There is an extraordinary pool of Bahamian talent overseas waiting to be tapped

Bring Home Bahamian Talent
by Simon



The Bahamas has various agencies dedicated to attracting overseas investments, including the Bahamas Maritime Authority which recently opened its third overseas office. Today, the country enjoys one of the more successful international ship registries. That success is measured by both gross tonnage and attention to high international standards.

Our diplomatic missions also promote The Bahamas as an attractive destination for international business and foreign capital. However, the country’s lead investment arm is The Bahamas Investment Authority. Its website notes:

“The proactive economic growth and development policies of the government of the Bahamas are guided by The Bahamas Investment Authority (BIA), established to "cut red tape and lay out the red carpet" for investors. Operating from the Office of the Prime Minister, the BIA has been designated as a "one-stop shop" designed to simplify investing in The Bahamas.”

The attraction of such capital is essential to economic growth. So too is the cultivation of another source of capital. Just as foreign direct investment is critical to national development, so is tapping into a wealth of Bahamian talent overseas and the economic resources of this talent currently resident abroad.

A country’s success in the global commons and marketplace is dependent on attracting a dynamic mix of financial and human capital from around the world. There is the story, perhaps apocryphal, about an employee in one of the Rockefeller brother’s firms who stared through a window year after year, seemingly accomplishing very little.

Exasperated and envious at the high salary the apparent daydreamer drew, with nothing to show for it, some employees complained bitterly and often to Rockefeller. Fed up with the relentless carping, the business titan unleashed a furious response: “That man gave me an idea once that made me millions of dollars. I’m waiting for his second idea!”

ARDUOUS

The search for good international talent is arduous and highly competitive. Even more developed countries with large pools to draw on vigorously compete for world class human capital. So must a much smaller Bahamas.

The College of The Bahamas engaged an international educational search agency to coordinate its search for a new president. As is usual in such searches, the process has taken some time and is relatively expensive. This is typical in the global hunt for prime talent.

A friend of a friend runs an international search agency that helps high-tech firms to find senior executives. With only three successful placements a year she earns nearly a million dollars. But her work is considerably harder than one might think. Still, her fees are a proverbial drop in the bucket as the incoming talent may earn their new firms many times the expenses incurred in the scouting process.

Quality education remains one of our primary developmental challenges. This includes general retraining for current Bahamian workers. It also includes educating and getting high level professionals and entrepreneurs to remain at or return home. This is no easy challenge for various reasons. But it is getting easier.

Asked about the reasons for the success of the Union Army in the U.S. Civil War, Abraham Lincoln had a quick reply: leadership. He was referring to the strategic and tactical brilliance of Ulysses S. Grant, who Lincoln found after firing general after failed general.

Lincoln intuitively appreciated that all other things being relatively equal, superior human capital is indispensable for great success. This is certainly the case in terms of what The Bahamas will need if we wish to be a regional and global centre of excellence in various areas.

Even as we address our problems, we should celebrate our success, championing Bahamians of excellence who combine native wisdom and world class abilities to meet and surpass international standards.

CHAMPIONS

Many of these Bahamian champions have been contributing to national development for some time, while others have more recently returned home. And, there are yet others who need to be identified and actively recruited in our search for top-notch talent.

Ian Hepburn and his Providence Technologies offer first class information technology solutions. Providence became the first Bahamian-owned company to manage the Ministry of Tourism’s web presence and is also the first Microsoft Gold Certified Partner in the country.

Dwight Higgs and his 20-year-old company, Superior Maintenance, has provided general contracting and hotel maintenance for numerous projects at Atlantis. His firm managed the construction of St. Anselm’s Church in Fox Hill, which is one of the finest built churches in the country, combining world-class artistry in its design and construction. It is a thing of beauty.

In recognition of his superior work and extraordinary generosity, Roman Catholic Archbishop Patrick Pinder recently dedicated “Higgs Way” at the new Aquinas College in honour of Mr. Higgs. Aquinas is but one of the many projects he has brought to life with great passion and dedication.

Today, our wealth of Bahamian world-class talent like Ian Hepburn and Dwight Higgs is being boosted by Bahamian talent overseas now returning home to make a good living as well as a contribution to national development.

An educator, fluent in French, and with a law degree and considerable international experience, Mrs. Joy Jibrilu returned to The Bahamas to help the country attract foreign investment. By her example she may also help to attract similarly talented Bahamians with global exposure.

Like Mrs. Jibrilu, there is an extraordinary pool of Bahamian talent overseas waiting to be tapped. Therese Turner Jones, a senior official at the World Bank and Dr. Darien Davis of Middlebury College, a Latin American scholar fluent in Portuguese, are both internationally recognized in their respective fields.

NECESSITY

An increasing number of Bahamian professionals are returning home for a variety of reasons. Necessity also being the mother of reinvention, some have returned to The Bahamas to take advantage of opportunities not as easily found abroad following the global economic meltdown.

Opportunities abound for Bahamians with the skill sets, including language skills, necessary to fill prime vacancies in areas ranging from international banking to environmental management services to graphic design.

Still, while some Bahamians may return home permanently, others may choose to capitalize on various opportunities as consultants, though remaining abroad. Yet others are hungry for investment possibilities.

So, just as the country vigorously pursues foreign investment, it should also pursue Bahamian capital overseas, both financial and human. But this cannot be done on an ad hoc basis.

It must be a deliberate, consistent policy, including the creation of an international data bank of Bahamians overseas interested in investing their time, talent and resources in a Bahamian economy exploding with extraordinary potential, despite the current economic difficulties.

Such an idea, of course, is not new. Indeed, a number of efforts are being made in this direction by public officials and private groups. What may be required is heightened cooperation and a more vigorous marketing and recruitment programme geared towards this offshore Bahamian capital.

In a future column we will explore ways that we can repatriate some of this overseas Bahamian talent and treasure to a growing and globalized Bahamian economy with much of its dynamism and potential yet untapped.

November 09, 2010

bahamapundit

Bahamas Blog International

Hubert Ingraham versus Perry Christie - and the emerging Chinese superpower

Another Watershed for Ingraham & Christie
by Simon
bahamapundit


Hubert Ingraham arrived in China in a strong and enviable position. Much of this comes from the office he holds as Prime Minister of a strategically-located Bahamas with diverse and impressive assets relative to our size.

Moreover, a considerable amount of the Prime Minister’s strengthened position is rooted in his character and experience, including a combination of international experience and domestic credibility.

The posture with which Mr. Ingraham has travelled to the emerging Chinese superpower is in obvious and stark contrast to the posture with which former Prime Minister Perry Christie would have made this journey.

Mr. Christie would have gone in a considerably weaker position for reasons rooted in his political character, including an operating style marked by indecision and pandering.

Whereas Mr. Ingraham enters into a negotiation with some inscrutability and poker-faced, Mr. Christie is generally an easy mark, easy to read and easy to push over. Bahamians know that Mr. Ingraham will always drive a harder bargain while Mr. Christie is prone to give away the store.

Domestic Credibility: On the eve of his departure for China, Mr. Ingraham and his predecessor, Opposition Leader, Perry Christie each held a press conference. In tone and substance they were a study in contrast.

Mr. Ingraham noted that Baha Mar was among one of a wide range of issues on the agenda during his trip. The Leader of the Opposition’s press conference focused almost exclusively on Baha Mar, with little reference to various other bilateral matters. Yet, what they both said about Baha Mar was revealing.

WATERSHED

The debate over Baha Mar has been another watershed for these former law partners and cabinet colleagues. The current debate is etching into the national consciousness the essential differences between the men in terms of vision, character and governance.

In his brief statement at a press conference in which Dr. Bernard Nottage took the lead in outlining the PLP’s position on Baha Mar, Mr. Christie left little doubt that he would have headed to China mostly as the gushing representative of Baha Mar.

In one of the most disturbing public performances by someone who served as prime minister, Mr. Christie all but abandoned the national interest in the favour of a private interest. It is an interest that has repeatedly demonstrated that it lacked the vision, track record and wherewithal to redevelop Cable Beach. Indeed, Baha Mar has repeatedly failed to meet various deadlines over the course of several years.

Just in September, Mr. Sarkis Izmirlian, the Chairman and Chief Executive Officer of Baha Mar spoke at a 25th anniversary event marking the China State Construction and Engineering Company’s presence in the United States.

“As some of you may know, my family and I have a vision for the country of The Bahamas, and its huge potential for tourism. We were approached by the Bahamian Government to consider redeveloping a beautiful area of Nassau called Cable Beach.”

Mr. Izmirlian also spoke glowingly that a successful Baha Mar project would “showcase to the world China State’s ability to deliver an intricately designed, and complex, resort metropolis on a somewhat remote island in The Caribbean.”

So, what exactly is Mr. Izmirilian’s vision for The Bahamas, and when exactly did we outsource that vision to a private developer? And, when did New Providence become a “somewhat remote island in the Caribbean?”

Mr. Izmirlian may want to check this bit of condescension and take note that many Bahamians do not find his vision for Cable Beach in the country’s broader interest. But it is not primarily Mr. Izmirlian who the Bahamian people are questioning.

EQUITABLE DEAL

Bahamians continue to wonder why Mr. Christie and the PLP chose the family in question to redevelop one of the more valued tourism sites in the country. Whatever the reasons, the PLP cannot shirk responsibility for the fact that it is because of that choice that we are in the position we are today. Because of Baha Mar’s lack of resources, the company turned to China for financing.

The genesis and convoluted nature of the Baha Mar project rest with Mr. Christie. As the drama at Baha Mar continues to unfold, Mr. Christie and the PLP have delivered a series of mixed and often incoherent messages. This rambling has damaged their domestic credibility on Baha Mar and related matters.

While Mr. Ingraham has repeatedly stressed that his overriding concern is an equitable deal for The Bahamas, the PLP and Mr. Christie have shown divided loyalties on the Baha Mar project. Sometimes, their posturing and pandering has been comical.

Having agreed to Chinese workers building the new National Stadium and signalling that they would agree to a considerable Chinese presence to build Baha Mar, the PLP voted against allowing Chinese workers to construct the Gateway Road Project.

Never mind that there would be Bahamian workers on the road project and that the terms of the loan were quite generous. The PLP sought to score a political brownie point and ride a wave of hysteria about a Chinese takeover. Not only did most Bahamians see through such an obvious ploy, so did the Chinese Government.

In striking contrast, Ingraham has demonstrated to the Chinese that while he is prepared to do business with them, that it must be mutually beneficial to both countries. He has refrained from any China-bashing in order to pander to some elements of the populace. Undoubtedly, the Chinese have taken note.

The Chinese must also be bemused and amused by Mr. Christie’s chest-thumping on the National Stadium. The stadium is a typical gift of the Chinese Government after the launch of diplomatic relations with a developing country.

In this case, those relations were established during a previous Ingraham administration. Moreover, even after the offer of a national stadium, the Christie administration, in typical fashion, failed to get the construction started.

FAVOURABLE COMMENTARY

The Prime Minister’s tough pre-trip stance to the Chinese Government of what may be acceptable regarding Baha Mar has earned him favourable commentary in various quarters in the Caribbean. Most Bahamians are relieved that it is Mr. Ingraham and not Mr. Christie who has journeyed to China to negotiate on the country’s behalf.

International Experience: Mr. Ingraham’s domestic credibility boosts and mirrors his credibility with the Chinese Government. That credibility is reinforced by Mr. Ingraham’s decisiveness. Reportedly, the Chinese were as frustrated by Mr. Christie’s late-again manner as were the Bahamian people.

Mr. Ingraham appointed two senior figures as Bahamian Ambassador to China, including Sir Arthur Foulkes who was non-resident and former cabinet minister Elma Chase Campbell, the first resident Ambassador. While the PLP did eventually send a resident diplomat to China, it took a while and he was a relatively junior civil servant.

It is a no-brainer for the Chinese which Bahamian leader they trust to talk straight to them. It is the man and the leader of the party which, in 1997, inaugurated diplomatic relations with the most populous country on earth. It decidedly is not the leader of the party that was about to send an ambassador to Taiwan if it had won re-election.

The Chinese also respect seniority. This is the Prime Minister’s second official visit to China, his first having occurred 13 years ago. Mr. Ingraham’s international resume is extensive as a senior head of government in the Americas. He has served as Chairman of Caricom on various occasions, where he is the senior leader in the regional grouping.

Prime Minister Ingraham has overseen the bilateral interests of The Bahamas with three American Presidents from Bill Clinton to George W. Bush to Barack Obama. Recently, he was elected to chair the Boards of Governors of the International Monetary Fund and World Bank Group.
One of the press reports following Mr. Ingraham’s election noted: “The chairman’s country should also be in good standing in the international community, and the person selected to be chairman is expected to be widely respected among finance and development officials.”

The Chinese will have all of this information in their briefing notes on Mr. Ingraham as he and his delegation travel from Hong Kong to Beijing to Shanghai and are hosted at various meals.

They will find in Hubert Ingraham an appreciative guest. Yet, they will also discover, like Mr. Izmirlian, that the current Bahamian Prime Minister will not be swayed by pomp and circumstance or flattery and a few nice meals.

bahamapundit

Bahamas Blog International

Stephen Wrinkle, Bahamas Contractors Association (BCA) president said the Baha Mar project could drain the country of workers in a "New York minute", and leave Bahamian contractors "left on the side lines."

Fears Baha Mar could drain country of workers
By NOELLE NICOLLS
Tribune Staff Reporter
nnicolls@tribunemedia.net



If Baha Mar drains the labour pool of Bahamian workers then contractors will be left twiddling their thumbs, according to the Bahamas Contractors Association.

Stephen Wrinkle, BCA president said the project could drain the country of workers in a "New York minute", and leave Bahamian contractors "left on the side lines." It has happened before and it could happen again, he said. "(Atlantis) drained our labour pool and caused the labour rates to go up; the supply of skilled labour was at a bare minimum for local contractors. It was that experience that caused us to learn you cannot just take the labour. Otherwise what is the point of having Bahamian contractors. Why not just have a labour agent," said Mr Wrinkle.

The situation will not be different this time around unless the government requires Baha Mar to insert specific language in any final agreement mandating the participation of Bahamian contractors and funding to train Bahamians.

His comments came in the wake of Prime Minister Hubert Ingraham calling the labour component of Baha Mar "onerous, burdensome and unacceptable."

Baha Mar has requested work permits for 8150 foreign workers over the life span of the $2.6 billion project and pledged $60 million in the first instance for Bahamian contractors two work on phase one.

"There are very few contractors poised to participate in the scope of work. We are trying to press the point that they need to employ contractors who would be able to bring their crew and the full resources of the company to the project. Otherwise we are going to have a whole bunch of contractors standing around with no crew," said Mr Wrinkle.

In the long run, he said, the direct trickle down effect from employing Bahamian contractors will be significantly higher than with foreign contractors.

"They have no need to inject money into our local economy. Their priority is to take our labour. What we continue to say is this is the wrong approach, because all we are doing is providing maids and spades. That cannot work; our economy cannot work in a labour only supply environment. We need to see the mandatory inclusion and provision of Bahamian contractors rather than simply bringing in foreign contractors to suck up our labour supply," said Mr Wrinkle.

There were many lessons learned by the industry from the "Kerzner experience." Tribune sources say the number of Mexican and Filipino workers hired to build Atlantis reached the thousands, although Atlantis is often referenced as the poster child for employing Bahamian construction workers.

Mr Wrinkle said that is a fair assessment. It is a well known fact that the Bahamas does not have a sufficient number of workers to fill the labour needs of large foreign direct investment (FDI) projects like Atlantis and Baha Mar, he said.

Mr Wrinkle speculated that is why the Prime Minister "was hoping Baha Mar could be phased, so we wouldn't need that tremendous injection of foreign labour."

That is why it is important for the government to ensure the participation of Bahamian contractors and not just labourers on FDI projects, he said.

In the case of Atlantis, Mr Wrinkle said it was only because of the persistence of the BCA that Bahamian contractors got a piece of the Atlantis pie.

"It took us until phase three to have substantial participation on that project. We fought long and hard against Atlantis before we finally got a piece of the pie over there. It was not a gift. Mr Kerzner did not voluntarily employ Bahamians.

"At the end of the day we were successful at negotiating with them for the participation of Bahamian contractors," he said.

October 09, 2010

tribune242

Bahamas Blog International

Prime Minister Hubert Ingraham: It's not in our interest to have a Baha Mar - four years single-phased development

PM: BAHA MAR DEAL MUST CHANGE
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com



The government is unwilling to back down from its position that the plans for the $2.6 billion Baha Mar project at Cable Beach be adjusted in major ways, Prime Minister Hubert Ingraham said yesterday.

His strongest public comments to date on the controversial project came during a sitdown interview at the House of Assembly late yesterday afternoon.

Speaking of the financing being provided by the China Export-Import Bank, Ingraham said,"Attached to their funding are conditions that are onerous, burdensome and unacceptable insofar as the labor content is concerned and the government is therefore asking that some adjustment be made with respect to the labor content of the deal.

"...There are two things that stick in our claw and we want to be able to digest the project and it is difficult to digest it with these things sticking across here."

Apart from the labor issue, Ingraham referred to Baha Mar's plan to build the massive project at Cable Beach in one phase with a planned 2014 completion.

He said those are "major issues, like a big bone". The prime minister added,"It has to be fixed."

"To do the project in a one, single-phased development is not in our interest, and it's in our interest to have the development but not as a single-phased development. Regrettably, that is the position,"he said.

The prime minister was repetitive in many respects as he sought to stress the government's position on this matter.

"What is going to happen to the hundreds of people who are working in those towers that are going to be demolished(at the Wyndham)while it's going to take four years for the project to be completed?" he questioned.

"They are going to be twiddling their thumbs while foreign workers are constructing the place."

Baha Mar has requested 8,150 work permits for the project.

Ingraham said yesterday,"There is more than enough land between the Nassau Beach(Hotel)and the land owned by Baha Mar east of the Nassau Beach for them to construct their 1,000 room hotel, their casino and whatever else they want to construct and open it.

"And nothing prevents them from building the others at the same time. There's no need whatsoever for all to be built and opened at the same time. That is not in our interest. That may well be in the interest of the financiers, the construction company and the owners of the project, but what about our interest? It is not in our interest."

Ingraham said that given persistent criticisms in the media he has faced over the government's handling of the Baha Mar deal he thought it was important for him to "put his anchor down".

"And it is now down," he said.

The prime minister also said there are a number of conditions that Baha Mar must meet, noting that even if the government said yes to the project, it would not necessarily mean it would start tomorrow.

"I have told the Chinese State Construction Company on two occasions, the most recent of which was when we signed the loan for the Airport Gateway(last week), that it is next to impossible for The Bahamas to approve 8,000 or so Chinese workers constructing a resort in The Bahamas with no Bahamian workers on the site at the same time and no transfer of skills to Bahamians at the same time.

"And I've asked them to go back and review their proposition so that the Government of The Bahamas can take a decision, but it is not possible for a resort to be built in The Bahamas with exclusive foreign labor. That's not possible."

He added,"They are in America. They are building lots of things in the United States of America. They're not using all Chinese labor on those projects. I don't expect all Chinese labor to be used on a project in The Bahamas, period.

"This is my country and this is yours."

Ingraham said,"I'm not now putting to them a percentum. We told Kerzner 70 percent of the workers had to be Bahamian. At the airport where the Canadian company is building the new US Departure Terminal, 75 percent or so percent of the workers are Bahamians.

"We understand the nature and complexity of this project. We understand the finances being provided by the Chinese Export-Import Bank. So we accept that the percentum of labor is going to be higher on such a project than it would be on other projects, but we cannot accept a 100 percent foreign labor content on the project, that's not possible."

Regarding the timing of the approval process, he said,"I don't want to be pressured by anybody."

Ingraham then emphasized that he was "sick and tired"of certain stories related to Baha Mar that were "being peddled every day, putting in people's heads things that are not true."

"This was a deal structured by Baha Mar and the Chinese. That's fine. They have come to us. We're not rubber stamps. We have to have our input, our say, before we make a determination. I think the Bahamian people expect no less of me and the Government of The Bahamas,"he said.

"I spoke, I believe very clearly in the House the other day when I said that firstly we would not consider the resolution on the agenda of the House until we get written confirmation that Baha Mar has settled its loan with Scotia[bank], and that two, we would not deal with the matter of the resolution in the House before I go away(to China)on October 22.

"Nothing has transpired to change those two."

He added"I tried to deal with this before. I scheduled my time to deal with it on two occasions. I don't now want to be pressured by anybody as to when I would do so. When I was ready others were not. In due time I will and it will be announced. So there will be no surprise as to when it is going to be dealt with.

"...We have been more than willing to facilitate and accommodate Baha Mar. It is not our fault that it took all this time for them to come to terms about the loan. It is not our fault. We had two separate meetings of the House of Assembly scheduled for that purpose. They were not in a position to do so."

Asked whether he thought the decision by the Chinese partners to invest in Baha Mar was a vote of confidence in The Bahamas, Ingraham said,"If the Chinese didn't have confidence in The Bahamas they wouldn't even talk to Baha Mar. I wouldn't talk about invest, so the investment's in The Bahamas.

"And we are deeply appreciative for the Chinese willingness to invest that kind of money in The Bahamas. We are deeply appreciative and would wish for the project to go ahead.

"We know what the Chinese interest is in terms of what benefits they get out of the deal...There must be some interest on the part of The Bahamas and The Bahamas'interest is to maximize the benefits which may be derived for The Bahamas from this investment and to ensure that when the project is complete, that the project advances us, enhances our tourism and does not drag us down."

10/6/2010

thenassauguardian

Bahamas Blog International

Foreign Workers on Bahamian Construction Sites

Foreigners on Bahamian construction sites
tribune242 editorial



THE DEBATE on the number of Chinese to be employed on the construction of the Baha Mar Cable Beach project -- six hotels, about a 100,000-square foot casino, a 200,000 square-foot convention centre, 20-acre beach and pool, 18-hole golf course and a 60,000-square foot retail village with additional residential products -- is going to be interesting, if and when it takes place on the floor of the House.

The number of foreign workers required by the Chinese as part of the deal is unusually large. But it is well known that the Chinese do not approve foreign loans unless their workforce is employed as a major part of the loan project. In the case of Baha Mar -- valued at about $2.5 billion - $1.918,965,693 billion has been negotiated with the China Construction Company as primary contractors. With that financial outlay it is amazing that government was able to negotiate any Bahamian presence. As Mr Ingraham said in presenting his resolution for this project to the House "the foreign labour component intended during the construction for the resort exceeds levels ever experienced in the Bahamas and is beyond anything ever contemplated by my government."

Under the UBP, construction up to a certain value was reserved for Bahamian contractors. Over that value it was agreed that Bahamians did not yet have the expertise or equipment to handle very large jobs and so those were left to foreign contractors, such as McAlpine, Balfour Beatty and others. In the 1950s, said Mr Ingraham, the government permitted 25 per cent of the labour force in construction and/or the operation of tourism development to be foreign.

During the Pindling era, however, the foreign labour component increased and newspaper articles recorded protests, either by foreign workers complaining of working conditions, or Bahamians questioning their presence in the Bahamas. For example, in 1988, 600 angry Indians went on hunger strike on the construction site of the Crystal Palace Hotel, Cable Beach. They accused the foreign contractor, Balfour Beatty, of treating them as slaves. Earlier - in 1981 - the Construction and Civil Engineering Union picketed the construction site of government's $66.5 million Cable Beach Hotel. "They import Filipinos to shovel sand. You tell me no Bahamans can do that?" complained a Bahamian worker. There were 40 Filipinos on that job site.

But the 1990 demonstration to protest the employment of common labourers -- truck drivers for example -- from Brazil on government's $55 million Nassau International Airport expansion was particularly interesting. The ratio of foreigners to Bahamians was 70 per cent on that construction site with government having to pay a large penalty if the number of Bahamians went over the agreed 139 or 30 per cent of the total work force. This prompted the carrying of placards that read: "It's Better in the Bahamas for Brazilians!"

At one point during the contract there were more than 340 Brazilians at the construction site, bringing the Brazilian count to 71 per cent compared to the 139 Bahamians that the company had agreed to use during this period.

The Pindling government had agreed that for every five Bahamians hired by the Brazilian company over the agreed 139 Bahamian workers, the government would have to pay $88,000 or $17,000 for each worker.

In the House on April 30, 1990, then Opposition Leader Hubert Ingraham revealed that the Pindling government had also agreed to pay all of the Brazilian company's Customs and stamp duties, work permit fees for their workers, and building fees on mechanical and electrical permits. In addition government was to pay all public utility fees -- connections and the like -- except for the actual electrical consumption.

The FNM found it preposterous that government would be penalised if more than 139 Bahamians were hired at the airport. "It is incredible that the Government has agreed to pay extra monies for Bahamians to work in their own country," said the FNM.

When the Ingraham government came to power its policy on foreign labour was established on the resort properties of Kerzner International -- the ratio of Bahamians to non-Bahamians on that site was not to exceed 30 per cent foreign to 70 per cent Bahamian.

And now here were the Chinese financially backing the transformation of Cable Beach into a mega tourist resort and asking for 8,150 of their countrymen to be engaged on the "core project". The projection is that some 1,200 Bahamians will be engaged in construction of the non-core projects.

Because of the unusual request for foreign labour -- 71 per cent foreign to 29 per cent Bahamian -- Prime Minister Ingraham has brought the matter to the House to give the Opposition an opportunity to express the opinions of their constituents on the matter. Both sides have to determine - in the words of Mr Ingraham - "whether this invaluable benefit of skills transfer and improved exposure to new technologies can or will occur in a project where contact between Bahamians and foreign experts is likely to be limited." Bahamians also have to decide whether in these lean years this project, with its foreign labour, is what they believe will jump start their economy.

September 28, 2010

tribune242 editorial

Bahamas Blog International

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

Bahamas Blog International

Bahamian Contractors' Association fears inadequate funding for a national training programme to certify Bahamian construction workers for jobs on the Baha Mar project

Funding fears over Baha Mar construction training
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:



THE Bahamian Contractors' Association fears that a national training programme needed to certify construction workers for employment on the Baha Mar development will be impeded by inadequate funding.

The organisation is calling for a tangible commitment from the developers before work begins on the $2.6 billion Cable Beach redevelopment to fund the training programme - a joint venture of the association and trade school BTVI.

"While they (Baha Mar) appear to be genuinely interested in both the short and long term success of the project and the country, they have informed us that presently there is no funding allocated for any training of construction personnel," according to the BCA's position paper on the project, which was recently given to government and the developers.

"We find the fact that a $2.6 billion project is proceeding with no training programme, or responsibility for one, incomprehensible. They have assured us that under their Heads of Agreement (with the government) there is apparently no stipulation for this critical and necessary component," said the BCA, in part.

As a non-profit organisation that operates primarily on membership dues, the BCA cannot fund the initiative at BTVI, an institution that relies on government subsidies. So far, nearly 500 tradesmen and contractors have registered for enrolment at BTVI's training programme.

"One of the possibilities we have discussed with Baha Mar is collecting a percentage of every contract awarded to be allocated for the training of Bahamian workers."

The Baha Mar project has yet to be formally approved by government. A labour resolution on the thousands of work permits the developers are seeking in Chinese labour will be brought to Parliament next week.

The peak period for Baha Mar's construction is between month 24 and month 36 of the project, and at that time there also will be more than 2,500 Bahamian construction workers employed.

Total employment at the peak of the project will be close to 7,500 foreign and Bahamian workers. The China Export-Import Bank and China State Construction are Baha Mar's financing and equity/project manager partners.

September 04, 2010

tribune242

Bahamas Blog International

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

Bahamas Blog International