FRIDAY, SEPTEMBER 9, 2016
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Unions warned: Shed ‘old world mentality’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Stronger labour laws ‘diminish’ need for unions
Bahamian trade unions were yesterday urged to shed their “old world mentality”, a former Chamber chairman arguing that their value to worker protection had “diminished” due to stronger labour laws. Robert Myers, now a principal with the newly-formed civil society group, Organisation for Responsible Governance (ORG), called on unions to focus more on providing “added value” for their members. Rather than disrupting commerce with strikes, or threats of industrial action, and pushing
Ex-Chamber chief: Become ‘labour co-operatives’ Calls on unions to ‘add value’ for members for worker benefits that businesses will struggle to sustain, Mr Myers told Tribune Business
that Bahamian trade unions should restructure themselves into “labour cooperatives”. “The benefit of unions over the decades has diminished as the labour laws have improved,” Mr Myers told Tribune Business. “The better the Fair Labour Standards, the less need for unions. Unions were there to protect the worker, but that’s what the Fair Labour Standards are for.” Much of the Fair Labour Standards Act was incorporated into the current Employment Act when it was repealed, with the latter coming into effect in 2001. The latter legislation has See pg b5
Bahamas First has unveiled a 94 per cent year-over-year increase in first half profits, although this was driven largely by a $4 million gain in the value of its investment holdings. The property and casualty insurer saw the unrealised gain in the value of its investment holdings, in both equity and debt securities, jump by 1,648 per cent to $4.264 million at end-June 2016 compared to just $243,946 the year before. The investments that drove the increase were not disclosed in Bahamas First’s report to shareholders, and this also masked a 10 per cent year-over-year fall in its net underwriting income. This figure, which measures the performance of Bahamas First’s core insurance operations, fell to $11.446 million as at end-June 2016, compared to $12.658 million the year before - a more than $1.2 million decline. The fall resulted from a combi-
Driven by $4m gain in investment holding value But underwriting income falls 10% year-on-year Net claims rose 6% due to motor account nation of lower gross written premiums, which represents Bahamas First’s top-line revenues, and a 6 per cent increase in net claims incurred. Ian Fair, Bahamas First Holdings’ chairman, told shareholders: “Investment income during 2016 has exceeded both budget and prior year by significant amounts as a result of the sharp uplift in the value of our equity and international bond holdings, resulting in an unrealised gain of $4.3 million.” Besides the increase in the See pg b6
$1m cargo carrier ‘makes some waves’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A Bahamian-owned cargo airline yesterday said it had “made some waves” since getting approval to enter the Florida market in January, and is now leveraging technology to expand its $1 million investment. Captain Christopher King, Junkanoo Air’s president, said the two-plane carrier was using its Bahamian knowledge and certifications to further its “competitive edge” over rivals. Apart from being authorised to transport hazardous materials, Junkanoo Air is employing the Internet and a planned electronic tracking system to attract customers to its service. “We want to take back some of the flights from foreign carriers,” Captain King told Tribune Business. “We’re open to offering our clients a little more than they can right now. “We have a competitive edge on our rivals. We have a more technically advanced system. Our clients are able to book cargo flights through the website, and are developing a live tracking system for customers to follow their shipments right through to Nassau, like UPS. That will give them more confidence in our ability.” Captain King added that his fledgling airline also planned to connect Nassau and the Family Islands, tak-
Junkanoo Air leverages technology to gain edge Plans cargo tracking system for clients Start-up aims for further expansion ing goods both ways. In particular, he emphasised that Junkanoo Air was offering to bring straw work and carvings from the Family Islands to Nassau and international markets, thereby enabling the Bahamian crafts industry’s growth. “In the not too distant future, we hope to acquire larger aircraft,” Captain King added, “something that can go the distance, take goods out of the country to nations such as Haiti and the Dominican Republic, and bring goods out. You have a lot of different nationalities here that want to send goods back to their families.” Junkanoo Air, which operates two Chieftain Navahoe aircraft, has been operational for just over one year. Yet its business received a major boost to its expansion plans in January, when the US Federal See pg b6
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
The Government was yesterday urged by a former Contractors Association president to develop measures that will stop Bahamians “getting left holding the bag over and over again” on troubled foreign direct investment (FDI) projects. Stephen Wrinkle told Tribune Business that the construction industry, and wider Bahamian private sector, could not afford a future repeat of what happened in the Baha Mar impasse. Calling on the Government not to pass up the opportunity, the ex-Bahamian Contractors Association (BCA) chief said the construction industry had not only performed as requested, but effectively carried Baha Mar financially for 1518 months as a result of not being paid. See pg b4
Baha Mar and VAT ‘sucked’ $700$900m from the economy ‘Welcome Xmas present’ if some recovered Myers: Better if creditor process ‘more transparent’ But praises Govt for payout deal ‘if it’s done and fair’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Robert Myers
Bahamas First in 94% Don’t leave Bahamians first half profits jump ‘holding the bag’ again By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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Govt urged: Use Baha Mar for policy changes But ex-BCA chief adds: ‘We got swing by Chinese’ Warns of ‘Herculean effort’ to finish Baha Mar
Stephen Wrinkle
Baha Mar and Value-Added Tax (VAT) have collectively “sucked” between $700-$900 million out of the Bahamian economy since 2015, a local businessman estimated yesterday, amid expectations that some funds may now be recovered. Robert Myers told Tribune Business that while he would have liked “more transparency” in relation to the Baha Mar claims process, and a broader committee to oversee it, the Government deserved some credit for getting the Chinese to finance the payouts. He added that “assuming” the payouts actually happened, and were done fairly, Bahamian businesses and the wider economy might recover at least some of the money that had been “lost” since January 1, 2015. Central Bank data shows that some $600 million in VAT revenues were collected by the Government in the first 11 months of the 2015-2016 fiscal year, coming on top of $182 million that was realised during the first five months of the 2015 calendar year. Although the combined $782 million is a gross figure, and some of this sum will have been either ‘netted-off’ or returned as VAT refunds and credits, Mr Myers estimated that with Baha Mar debts to Bahamian creditors ranging from $100-$160 million, between $700-$900 million had been removed from the Bahamian economy since New Year’s Day 2015. “Baha Mar sucked that money out of the economy. It’s tens of million, and possibly multiple tens of millions, but that money has gone,” Mr Myers told Tribune Business. “When you consider that, on top of the VAT money, there’s probably been $700$900 million taken out of the economy See pg B7