07142020 BUSINESS, WOMAN AND HEALTH

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business@tribunemedia.net

TUESDAY, JULY 14, 2020

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Pawn shops see business pick-up By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net PAWN shops yesterday said they were starting to see a business uptick as jobless Bahamians seek to unload gold and electronic goods for much-needed cash.

Philippa Major, general manager of Cashwiz, told Tribune Business: “Business is coming in a little bit faster now because a lot of people still aren’t working and they really need the cash. I would say that business is picking up. “A lot of people are having to leave stuff. I would say that persons that had things here before the pandemic, before the lockdown and the curfew, now that we have reopened and they are not back to work they don’t have the funds to come back to us and pick their things back up, so they are having to let them go. “That stuff we have to re-sell. For the most part

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September eyed for temporary lay-off time extension By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net GOVERNMENT and private sector officials yesterday confirmed there is “much talk” about extending the temporary lay-off period to end-September to ease job pressures. John Pinder, pictured, the director of labour, and Peter Goudie, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) labour specialist, both told Tribune Business an extension

of the so-called “grace period” was being eyed to ease the burden on hardpressed businesses and keep employees in jobs. Mr Pinder said many companies appeared to be waiting until this month’s end, which is when the current temporary furlough period expires, before making decisions on whether they will move to permanent worker terminations. “A lot of people are waiting until the end of the grace

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Cable warily eyes $300m preference debt maturity By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net CABLE Bahamas is warily eyeing the need to repay more than $300m in preference share debt over a five-year period from 2023 to 2027, its top executive said yesterday. Franklyn Butler, the BISX-listed communications provider’s president and chief executive, told Tribune Business that the ongoing COVID-19 uncertainty could impact its plans to repay investors as it mulls how to best use the $301.5m proceeds from Summit Broadband’s sale. With Cable Bahamas’ decision to yesterday terminate 87 staff likely to attract scrutiny given perceptions it is cash-rich, having received these funds prior to the pandemic taking hold, Mr Butler pointed to its substantial preference share debt as one medium and long-term factor in play. Reiterating that

“prudence is the name of the game”, he said Cable Bahamas’ management and board were waiting for signs of an economic turnaround - and to determine where the country and its economy “land” before deciding how the balance of the Summit Broadband proceeds will be employed. Pledging that Cable Bahamas and its Aliv mobile affiliate will seek to exploit “all and any upside” opportunities created by the COVID-19 pandemic, Mr Butler also revealed that it is aiming to “launch a couple of solutions” for the Bahamian communications market within the next few months. While declining to go into detail, he disclosed that these will be cloud-based products and services targeted at the increasing number of Bahamians now working from home as a result of the COVID-19 crisis.

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Cable slashes 87 in ‘right-size to survive’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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ABLE Bahamas’ top executive yesterday admitted that hopes the COVID-19 crisis would “be short term” have been dashed as it permanently terminated 87 staff. Franklyn Butler, its president and chief executive, told Tribune Business that the pandemic’s “harsh reality” meant the BISXlisted communications provider had no choice but to “right-size to survive” given “growing” challenges in collecting revenues due from customers. The move, which cuts the combined workforce at Cable Bahamas and its Aliv mobile affiliate by 11.5 percent, is effectively turning the 96 temporary lay-offs unveiled in early April when COVID-19 first struck into permanent separations.

• BISX-listed provider, Aliv cut 11.5% of workforce • Group facing ‘growing’ challenges over revenue • Atlantis delay further raises COVID uncertainty

FRANKLYN BUTLER The terminations, 60 of which fall on the Cable Bahamas side, and the remaining 27 at Aliv, largely involve those already furloughed. Cable Bahamas’ workforce will drop from 574 to 514, a 10.5 percent drop, while Aliv’s is to reduce from 181 to 154 - a 15 percent drop. Combined, staffing levels will fall from

755 to 668, with more than one in ten workers affected. Revealing that COVID19 has had its most significant impact on Cable Bahamas’ largest clients, namely hotels and other businesses in the tourism/hospitality sector, Mr Butler said the approaching end-July deadline at which furloughed workers either have to be re-engaged or permanently separated had influenced the timing. While there were no plans for further permanent terminations, he added that the BISX-listed communications provider will constantly monitor the situation and further downsizing may be possible if the economic crisis unleashed by COVID-19 is “further

protracted” and there is no recovery. Describing the situation as “fluid”, Mr Butler said he was especially “sensitive” to the fact that the terminated workers will find it hard to obtain new jobs in a labour market suffering from a huge over-supply of available workers as a result of an unemployment rate estimated to be between 30 percent to 40 percent. And, while declining to provide figures on the extent of Cable Bahamas’ revenue decline and accounts receivables increase, he said the communications provider was enduring the same COVID-induced challenges as other “utilities” such

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QC: Abaco marina ruling ‘another nail in the coffin’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN OUTSPOKEN QC yesterday slammed a Court of Appeal verdict involving an Abaco marina development as “another nail in the coffin of public interest litigation”. Fred Smith QC, the Callenders & Co attorney and partner, told Tribune Business the decision upholding the Supreme Court’s verdict that Responsible Development for Abaco (RDA) must pay $250,000 as security for costs to the government and Winding Bay-based Abaco Club was effectively denying his client their rights. He argued that the imposition of such “financial roadblocks” meant “the door is being slammed shut” on the ability of Bahamian citizens, residents and nonprofit organisations, many of whom lack substantial financial resources, to “have their grievances heard” and potentially redressed by the

• ‘Door slammed shut’ on public interest case • Says ‘financial roadblocks’ deny local rights • Govt, Abaco Club’s $250k ‘security’ upheld

FRED SMITH QC court system. Mr Smith said his clients now planned to directly appeal Justice Petra HannaWeekes’ November 2017 “security for costs” order to the Privy Council after the Court of Appeal’s refused to grant permission for this to happen in yesterday’s verdict. The judgment, written by appeal court president, Sir Michael Barnett, declined

to grant “leave to appeal” to the UK-based Privy Council, the highest court in the Bahamian judicial system, on the basis that the case raised no issues of legal or general public importance. But Mr Smith blasted: “This is yet another nail in the coffin of public interest litigation. It is shocking that even though the government did not oppose the application for leave, the Court of Appeal nevertheless refused permission when only the developer was objecting to going to the Privy Council. “This is a case of supreme public importance to public interest litigation launched by grassroots non-profit organisations in The Bahamas, citizens and residents who are challenging a simple consultation process

regarding the imposition by central government of development without proper consultation.” RDA had previously launched Judicial Review proceedings opposing The Abaco Club’s plans to construct a 44-slip dock at Little Harbour, along with a supplies shop, private restaurant, 6,000 square foot covered car park, generator, desalination plant and waste treatment facility. The proposed development will measure 320 feet across the outside piers, 210 feet between the two parallel main piers, and will extend 270 feet into Little Harbour, with the intent for it to accommodate boats up to 60 feet. However, RDA fears if the project goes ahead it

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