business@tribunemedia.net
TUESDAY, SEPTEMBER 14, 2021
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PM’s homes plan forgot ‘front door’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
FRANON WILSON
A PROMINENT developer yesterday warned that first-time Bahamian homeowners must be able to access “the front door” if the Prime Minister’s ambition of sparking a construction boom is to be realised. Franon Wilson, Arawak Homes president, told Tribune Business that the package of construction material and services-related tax breaks unveiled by Dr Hubert Minnis at the weekend will not yield maximum effect unless the two greatest
obstacles to home ownership are addressed. While affirming Arawak Homes’ “100 percent support” for anything that makes home ownership more affordable, Mr Wilson said the plan did not tackle the down payments and closing costs that purchasers are required to cover from their own savings and other financial resources. With vacant lot prices now often in excess of $100,000, he explained that the combination of bank down payment requirements, legal fees and, potentially, realtor commissions would require first-time buyers to come
up with a five-figure sum to close such deals prior to even beginning construction of their home. Many Bahamians lack such savings, having been sucked into pay cheque to pay cheque living, and will require several years to build-up the necessary resources. Added to this are high levels of existing consumer debt, which Mr Wilson said is the other greatest factor impeding the ability to qualify for a mortgage. “At the end of the day, it’s helping people get in the door,” the Arawak Homes chief told this newspaper. “If someone
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HUBERT MINNIS.
• Down payments, closing costs not tackled • Developer: Biggest ‘hurdle’ to owning home • Along with hefty consumer debt burdens
Bahamasair ‘eight’: Seek 10% pay rise in new industrial deal By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net EIGHT Bahamasair senior flight attendants have been told by a Supreme Court judge to seek the 10 percent pay increase they are demanding through a revised industrial agreement instead of litigation. Justice Indra Charles, in an August 16, 2021, verdict rejected the joint claim by Niquel Pinder, Sharmaine Barr, Tiffany Reid, Karen Cooper, Carla Sabala, Kendra Campbell-Darling, Cecilia Forbes-Jordan and Nedra Rogers that their employment contracts were breached because they did not receive a 10 percent salary raise when they
• Judge rejects flight attendants’ ‘promotion’ claim • Says only ‘assigned’ senior role if 50+ passengers • ‘Proper path is to lobby with union’ for revised terms were made senior flight attendants. However, Justice Charles found there was “no promotion” from junior to senior flight attendant allowed for in the wording of the 2013 industrial agreement between Bahamasair
and the Airport, Airline and Allied Workers Union (AAAWU), of which all eight were members. And the designation of “senior flight attendant” only arose, according to the agreement, when two or more worked the
same jet flight or an ATR flight carrying 50 or more passengers. Justice Charles added that the industrial agreement’s language confirmed that a flight attendant was “assigned”, and not promoted, to a senior position and was thus not entitled to the salary increase being sought. “If the plaintiffs are desirous of changing the present position, the proper procedure is to lobby with their union to negotiate a new industrial agreement with Bahamasair,” she ruled, finding in favour of the Government’s cashstrapped national flag carrier.
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No ‘radical changes’ for Budget following election By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A RISK management specialist yesterday said he does not foresee “radical changes” to the 2021-2022 Budget regardless of which political party wins Thursday’s general election because the fiscal dynamics have not changed. Hubert Edwards, principal of Next Level Solutions, a Bahamas-based corporate
governance and risk management consultancy, told Tribune Business that he expects The Bahamas “to limp into 2022 at pretty much the same rate” it has passed through this year given that COVID-19 and its high infection rates continue to bedevil this nation. Agreeing that the incoming administration will “have to grapple with” multiple issues, most linked to health and the economic/ fiscal state of The Bahamas,
he said it was unlikely that a Progressive Liberal Party (PLP) or Free National Movement (FNM) government would quickly to seek to pass a supplementary Budget upon taking office given that the revenue outlook will not drastically improve over the next nineand-a-half months. Implying that the next administration will have little flexibility or scope to adjust the Budget passed in June, Mr Edwards said
many campaign promises will “have to wait a year” for the 2022-2023 Budget to be crafted. “We already have a Budget,” he said. “In many instances there may be a reprioritising of things vis a vis what was promised on the campaign trail. We have to wait until Thursday night or Friday morning to see where we go in terms of the priorities of the country.
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Union leader predicts Morton Salt re-hiring By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A UNION leader yesterday predicted said Morton Salt might have to rehire some of the 24 workers it terminated last month on the basis that the salt harvester is now too “short staffed”. Jennifer Brown, president of the Bahamas Industrial, Manufacturers & Allied Workers Union (BIMAWU), told Tribune Business that the
Inagua-based operation’s workforce has dropped from 220 to around 80 over the past two years. Arguing that Morton Salt cannot continue operating efficiently at those numbers, she added: “The staff left behind after the redundancy is just doing the best they can.” Ms Brown said she feels that the persons released were not compensated fairly as “there was no severance pay”, only redundancy pay. “We have a contract, and if the company says redundancy then
the position cannot be filled, but from what’s going on out here, it’s like you are requiring one person to do two persons’ work right now,” she added. Complaining that the company is “very much short staffed”, Ms Brown added: “Because this new company took over, they just wanted to reduce the staff to see how much people they really needed. “I believe they might have to rehire a lot of persons. This is just from my general observation, because we used to have
over 200 employees, but now we don’t even have 80 yet they expect the work to get done. “It is near impossible to do the same level of work with less than half of the staff that Morton Salt was used to in the recent past, which is only part of the problem. The thing is the workers are not being compensated for the heavier workload. “Every department they let someone go and people have positions they need
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LEONARD SANDS
STEPHEN WRINKLE
Home owner tax breaks to aid 80% of new starts • Ex-BCA chief hails package, but ‘better late than never’ • Bahamas in ‘different place economically’ if done earlier • Warning that ‘multiple bridges to cross’ to achieve goal By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN ex-Bahamian Contractors Association (BCA) president yesterday hailed the Prime Minister’s home ownership tax breaks package for potentially boosting
80 percent of new construction starts, and said: “Better late than never.” Leonard Sands told Tribune Business that while Dr Hubert Minnis should have implemented such an initiative two to three years ago
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