Showing posts with label economic recovery Bahamas. Show all posts
Showing posts with label economic recovery Bahamas. Show all posts

Monday, January 16, 2012

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


About Unions and Leadership in The Bahamas


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

Monday, July 4, 2011

Bahamas Chamber of Commerce and Employers Confederation's (BCCEC) chairman Winston Rolle says: ...any increase in pump gasoline prices could not be coming at a worse time, since it could further depress prospects for a Bahamian economic recovery

Chamber chief: Gas mark-up increase 'very concerning'

By NEIL HARTNELL
Tribune Business Editor
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The Bahamas Chamber of Commerce and Employers Confederation's (BCCEC) newly-elected chairman has described as "very concerning" the impending mark-up increases for petroleum retailers, warning that it would hit consumers and increase "the cost of doing business".

While expressing sympathy for the plight of Bahamas Petroleum Retailers Association (BPRA) members, Winston Rolle indicated to Tribune Business that any increase in pump gasoline prices could not be coming at a worse time, since it could further depress prospects for a Bahamian economic recovery.

Responding to this newspaper's Friday report on the Government agreeing to an increase in the per gallon gasoline and diesel mark-ups for petroleum retailers, Mr Rolle said this would only further increase business and consumer costs at a time - the summer - when global oil prices traditionally peaked, compounding the effects.

"That's very concerning," Mr Rolle said of the Government's decision. "While I understand the plight of the operators and their profit margins, you can appreciate the impact that is going to have on the cost of doing business. With gasoline prices increasing, costs are going to go much higher."

Apart from Bahamian consumers, who will feel the impact in their bank balances and disposable income levels, others likely to be heavily impacted are transportation-dependent businesses such as taxi drivers, jitneys, tour operators and all companies that rely on making daily deliveries - such as wholesalers.

"What most persons had hoped, and I guess the Petroleum Retailers Association had hoped, was that the Government would relax some of their tax take and give them the spread they need," Mr Rolle added, "but not impact the overall cost to the consumer."

Earl Deveaux, minister of the environment, on Thursday last week indicated that the Government had agreed to lobbying by the BPRA and Marina Operators of the Bahamas (MoB) for an increase in the fixed margins they can charge per gallon of gas and diesel sold.

No details were provided, but there were indications the increase would take effect within the next month. The change is also likely to see an increase in the existing margins, which are $0.44 per gallon of gasoline and $0.19 per gallon of diesel, rather than a percentage increase that the BPRA and MoB had pushed for.

Whether the increases are of the amount sought by the BPRA is also unclear. Another unknown is whether the wholesale margin enjoyed by the oil companies, FOCOL, Esso and Texaco, which are currently pegged at $0.33 per gallon will also be increased. Noting that "we haven't really hit the summer months yet", a time when global oil prices traditionally peaked, Mr Rolle added: "It's very concerning because you're going to have an increase through the adjustment made by the Government and, on top of that, in the coming months we'll see another increase based on the cost of oil worldwide.

"We're very sympathetic and do not want to put anyone's business in jeopardy, but the hope would have been that the retailers and government worked out some middle of the road, where no one takes a substantial loss. Right now, all of this is going to fall on the consumer."

Given that almost two-thirds of Bahamian economic activity stems from consumer spending, that is worrying in and of itself.

One business executive, speaking to Tribune Business on condition of anonymity, agreed with Mr Rolle that the move would "increase the cost of living to the consumer", describing it as "just another band aid approach".

Ultimately, the source said, without fixing the existing pricing structure this situation would eventually arise again, with BPRA members clamouring for further margin increases further down the line. Gas margins were last increased under the first FNM government, the source said, yet almost 10 years later the Bahamas was here again, and with the same arguments being made.

Gas prices were already extremely high, and the Government's decision meant they were likely to go higher on the grounds that dealers needed more money.

"You have to go back and look at this system that doesn't make sense at all," the source said. "If you don't solve the problem correctly, in a couple of years you're going to do the same thing."

The solution, the source said, was for the Government to reduce its $1.06 per gallon tax, plus 7 per cent Stamp Duty on the cost of landed fuel, something it is unlikely to do when desperate for every cent of revenue. The other issue, they added, was the rents, royalties and franchise fees levied on the BPRA and its members by the oil companies. The source identified these and the Government taxes as the major problem, together with an over-supply of service stations.

"When you look at the amount of service stations per square mile in Nassau, you've got more than in Florida. Something's got to be fundamentally wrong there," the source said, suggesting there needed to be consolidation.

"For an island 21x7, we should not have so many service stations in close proximity. That's the only way to begin to drive costs down for Bahamian consumers."

Rick Lowe, a leading executive with the Nassau Institute economic think-tank, told Tribune Business the episode showed price controls "certainly belong in the dustbin of history. The market is the market, and you can restrict it, manipulate it and put people out of business, but sooner or later reality has to come".

July 04, 2011

tribune242