NASSAU, BAHAMAS — Morton Bahamas has warned of a possible shutdown of its Inagua operations as it moves to cut jobs and reduce employee benefits in a bid to slash costs after months of disrupted production.
“After weathering seven months of no production and another seven months of limited production without laying off a single employee or reducing community benefits, Morton Bahamas has reached the point where it can no longer avoid taking action to reduce its costs. The cost-reduction measures actioned by the company, including a reduction in jobs and the social benefits provided or funded by Morton Bahamas, are designed to give the Inagua business the best chance of remaining a viable operation. If these measures do not improve its competitive position, then Morton Bahamas will explore additional cost-reduction strategies, including a suspension or closure of the operation,” the company said in a statement.
Eyewitness News understands that under one option, up to 75 percent of the workforce could be made redundant with 45 days’ notice, leaving a small core team to maintain essential operations including pumping, fuelling, maintenance, and powerhouse functions. General store operations would also be reduced to two or three days per week.
A second option would retain all employees but reduce working hours to approximately 20 hours per week while maintaining benefits. However, this would significantly reduce take-home pay and still leave many workers facing financial strain. General store operations would also be scaled back under this arrangement.
Against that backdrop, Trade Union Congress President Obie Ferguson said workers have effectively been told that large-scale redundancies are likely unavoidable.
“I spoke to one of the principals and he indicated to me that they all will be made redundant,” Ferguson said. “However, they were given an option as to whether they can accept option one or option two.”
He warned that the situation highlights a serious gap in labour protections for workers in foreign-owned industries operating in the country.
“We must put in laws… when these companies go belly up, at least the Bahamians will get something for a reasonable period,” Ferguson said.
He added that many workers now face significant financial uncertainty.
“All those people now, they have mortgages, they have car payments to make, their medical coverage is coming to an end. So what are they now going to do?” he said.
Ferguson also described current redundancy provisions as inadequate and called for the establishment of a mandatory redundancy fund to better protect Bahamian workers.
The developments come against the backdrop of a previously announced acquisition. Last September, Lusca Group said its subsidiary, Grand Bahama Salt Company Ltd., had agreed to acquire 100 percent of the shares of Morton Bahamas Limited, operator of the major salt facility on Great Inagua—one of the largest such operations in North America.
The company at the time also disclosed plans to enter into a long-term supply agreement with Morton Salt USA to ensure continuity of production and exports, while committing to significant investment to improve efficiency, upgrade salt quality, expand capacity, and support on-island businesses and community development.
