PHILIPSBURG--The former owners of Pelican Resort Club have filed a mass dismissal request for the 183 workers, after the company and union hit a deadlock in their talks.
Labour Mediator Derrick Holiday confirmed last night that the talks had ended on Monday as the union and company failed to see eye-to-eye on who currently employs the workers. Workers Institute for Organised Labour (WIFOL) President Theophilus Thompson is sticking to the union's position that the workers now are employed by the new company, while management says they are employed by the old company.
Both WIFOL and Pelican met with workers yesterday. Thompson said during the meeting with the workers last night that he was waiting to see what government's move would be on this apparent mass dismissal request, as WIFOL had not been apprised of it officially. "It is all in the hands of government now," Thompson said.
One worker told The Daily Herald that management had scheduled separate meetings for each department on Tuesday. However, all workers showed up to the first meeting called, as they did not want to be divided and ruled.
The workers said the new Pelican company's General Manager Jules James, a United People's (UP) party Member of Parliament, and his assistant had updated them on developments at this meeting and had told them that they had to sign a contract or they would be out of jobs. The workers said they had been told that the dismissal request had been filed, but none of the employees had signed anything.
Holiday said the new owners had indicated that the old owners no longer had any jurisdiction in the running of the Pelican operations as of December 17, the day after the building was auctioned to its lender.
Thompson contends that by virtue of this statement the workers are under the employ of the new company. WIFOL contends that the workers have been functioning under the new owners since December 17.
One of the issues raised last night was the fact that the management team of the old company is now working for the new company. This is said to be one of the reasons the management had been unable access the old company's accounts earlier this month to pay the workers their December salaries, as they were no longer working for the old company.
James was called for an update on Tuesday afternoon. He said he would return a call to this newspaper, but hadn't done so up to press time.
In a statement issued last night the new owner Royal Resorts Caribbean Chief Executive Officer Richard Corso said he was shocked that the company and union had been unable to reach an agreement. He said the two parties had had two dozen meetings and labour mediation had been sought at one point.
Corso said "the prospective management company" originally had proposed six-month labour contracts for all workers with no trial period and all wages and positions remaining the same as with the previous employer.
Thompson said he had rejected this offer, as it placed the workers in insecure employment. A 12-month contract with a continuation of wages and positions was offered, but was turned down by the union.
Corso said a final proposal had been made by management to provide immediate permanent employment to the 182 workers on a 60-day trial period with their wages and positions remaining the same. He said management had "voluntarily offered to limit the maximum number of employees who could be released during the trial period to 50" and said this meant that "nearly" three of every four workers "were guaranteed permanent employment and the number could have been even higher."
Corso: "I am utterly disappointed and even shocked by the position of WIFOL. The prospective new owner would have been within its rights to have finalised the sale, shut the resort down, and avoided all these challenges. Instead, the prospective owner chose to take a very socially responsible position and offer a job to every single one of the 182 people currently employed with Pelican.
"I believe the offer was very generous for a new company facing an uncertain economic future. To offer more guarantees would very likely be unsustainable for the business. The actions of Mr. Thompson have sent the prospective new owners of Pelican Resort a strong negative message about the viability of business here in St. Maarten.
"The prospective new owner is currently unable to enter into contracts, including those for sales and marketing, until it is the rightful owner and future operations are certain. The sales and marketing company this week shut its doors, leaving 23 workers without a job. It was simple economics but painful nonetheless.
"The team of sales workers, most of whom have been together for many years at Pelican, shed heartfelt tears and shared hugs as they comforted each other in this difficult time. The sales company had no source of revenue and could no longer remain in operation."
The company has asked government to expedite its request for a licence.
Thompson had claimed in the past that a 10-year concession request and a transfer tax waiver also had been requested, but Deputy Prime Minister Theo Heyliger said last week that he had not received any "official" request for a concession.
Corso said workers had been informed about the dismissal request and updated on the current status. He said "many workers were surprised and stated Mr. Thompson had never told them about these offers."
Corso said Royal Resorts operated 10 resorts and most of the workers were unionised. "We have full support for every worker's right to unionise and we have harmonious relationships with our unions' members and representatives. Both workers and management must have realistic expectations and work for the overall good of everyone involved."
He said everything possible should be done to ensure the continuity and sustainability of jobs. "Disruption or closure of the resort will be very, very damaging to the reputation of St. Maarten, timeshare, and almost every person who calls this country their home."
He said Pelican brought more than US $1 million into the local economy every week . "... In light of the surprising challenges and adversities that have emerged for the prospective new owner to operate the resort after it takes possession, the prospective new owner is doubtful whether or not it will be economically viable, or even possible, to operate the resort after it takes possession," Corso said.
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