NASSAU, BAHAMAS — Labour Minister Dion Foulkes said yesterday that given the current economic environment, he would not advise employees to push for redundancy, describing the issue as a “double-edged sword”.
Foulkes, who was speaking with reporters ahead of a Cabinet meeting yesterday, said: “That’s a double-edged sword. Many businesses temporarily laid off staff. If they offer redundancy or severance, their employment will be terminated and there would be no hope of them going back to work.
“The government is hopeful that the majority of persons laid off at Atlantis, Baha Mar and Sandals will return to work and will have gainful employment for years to come.
“I understand why some people want to be terminated, get a redundancy and get their severance pay, because the economic situation is so dire that people have to take care of their families. I get that, the government understands that, but there needs to be a balance.”
Foulkes noted that the Emergency Powers Order makes provision that redundancy not be paid until 30 days after the order ends, which is currently at the end of May; but that date has been extended several times since last year March.
“Certain companies are paying redundancy and terminating employees, but that isn’t something I would advise employees to advocate,” said Foulkes.
“It terminates their employment but this isn’t an environment where people want to be out for a job.”
Foulkes further noted: “We are actively working with the Ministry of Tourism and the Small Business Development Centre (SBDC) to ensure that jobs are available in the tourism sector and that Bahamian businessmen have the financial wherewithal and resources to engage in their new businesses.”
According to Foulkes, with many furloughed workers have returned to work and the unemployment rate has declined.
