Up Front

Beach Hotel Struck

Beach Club Resorts representative, Mr.Ernest Smett (centre) and Padriac Liannane, the hotel's Generalmanager, in conference with NACE General Secretary Dr. Frank McField

The Beach Club Hoteland Dive Resort was hit by industrial unrest, on Wednesday December6, a mere week before the official start of the tourist season,when more than 20 of its employees picketed its West Bay Roadproperty.

The Hyatt Hotel, located obliquely opposite,had its fair share on Wednesday November 29 when six of its employeesstaged a similar exercise in protest of the dismissal of fellowwork-mate, Ms Dorline Welcome, who is also President of the Islands'sole trade union, the National Alliance for Cayman Islands (NACE).

Both entities were targeted in Wednesday's exercise, which beganat 7:00am, as NACE members, led by Ms Welcome, lent solidarityto Beach Club's employees.
The strike was called to protest the alleged unfair treatmentbeing meted out to Beach Club's employees, the majority of whomare Jamaicans, by management.

Amongst those allegations are gross underpayment (a cook's weeklywages, inclusive of gratuity, as low as CI$126), working beyondthe normal hours of duty without being paid overtime, and notbeing allowed to take occasional breaks.
It is also alleged that prospective employees are asked, duringthe recruitment process in Jamaica by a Beach Club principal,to pay US$1500 to secure the job and to finance their return airfare.This placement fee can either be paid up-front or in weekly instalmentsof CI$20, upon securing the job.

Several pay slips shown to Cayman Net News confirm a deductionof $20 "loan" payment.

Employees say it is also mandatory that they must purchase andhave return airline tickets, which must be updated whenever theirpermits expire and are usually sent a reminder as the time drawsnear. Failure to update these tickets, which are usually lodgedwith management, can result in the required amount being deducted.

"I took as much as a year and a half to pay off the palcementfee" one striking employee said.

Employees also charge that promises made during the recruitmentprocess of finding them accommodation were not kept, as they areleft to their own devices soon after their arrival here. One saidhe was put up at one of the company's two hotels for just twonights when he was hounded out on the instructions of its head,Mr Ernest Smatt, who is also a Jamaican.

Mr. Smatt is the principal of Cayman Resort Hotels, which operatesBeach Club and Spanish Bay Reef Resort.

Mr Smatt, who was at the scene of the protest, and he strenuouslydenied the allegation that prospective employees were asked topay US$1500 to get the job.
"No! no!" he said. "We do not do that. We havean employment agency that we use. We use them in Jamaica whenwe want to employ people. I used to do it years ago but the factof the matter is I don't have the time anymore to do that. Thefee that they are paying is to the employment agency."

He named International Employment Agency as the recruiter. Thiswas corroborated by company General Manager, Mr Padraic Linnanewho says that he has been in the company's employ four years.Employees, however, refute this, saying that it is closer to over10 years.

Mr. Linanne confirmed to Cayman Net News that they employ between90 and 120 persons depending on the season. Striking workers saythat the majority of staff are Jamaicans and that just four areCaymanians.

Mr Smatt said the agency operates at different points in Jamaica."They don't only hire people for me," he said. "Asfar as I know, they get jobs for people in the United States,"he added. He conceded that if clients "... don't have themoney, they're given time to pay over a period of time."

Several employees told Cayman Net News that Mr. Smatt himselfconducted the interviews in Jamaica for the Beach Club and SpanishBay Reef properties and that he owns the placement agency. Mr.Smatt denied that he was the owner.

One employee showed Cayman Net News a receipt dated 15th October1999, issued to him for payment of US$500 "re Grand Cayman."The receipt was issued by Water Sports Enterprises Ltd., a companyin Jamaica, said to be owned by Mr. Smatt.
Asked where the payment for recruitment is made, Mr. Smatt said:"I think they pay it over there; I don't know those details."

He subsequently refused to comment further. "I would notgive any statement concerning a sensitive issue," he said."I would refer you to the attorney for a comment becausethere has been some behaviour on the part of the Labour Department.It is going to be a legal issue," he remarked.

At the centre of the controversy, he said, was the Director ofthe Labour Department, Mr Dale Banks.

"The man can't turn to the manager of a hotel and say, 'youcome down to my office, now!' And he has been getting away withthat for the longest time. We never sought any legal advice; wecooperate with them 100 per cent," Mr Smatt said.

When contacted, Mr. Banks said that he could not comment at thistime because the matter is under investigation.

NACE General Secretary, Dr Frank McField, who was also at thescene said the protest action is to assist the Labour Board inobtaining information from Cayman Resort Hotels regarding inquiriesinto the practice of not paying overtime, paying insufficientgratuities and paying persons below what is considered acceptablein the tourism sector.

"For instance, paying a cook $126 per week, chefs $5 perhour, working people up to 75 - 80 hours per week and not payingovertime as prescribed by the Law."

He said that since April, NACE has apprised the Labour Board ofthese grievances in writing and through submission of relevantdocuments.

The union has also brought the matter to the attention of PoliceDepartment and members of the Government, "simply becausewe believe that ultimately the Immigration Department will haveto play a role to end this matter because if the employees arefired it means that they have to be replaced," Dr. McFieldsaid.

"The Labour Board has decided that it will, at this particularpoint, mount legal action as well, with regard to settling someof these issues," he added.

The workers, Dr. McField said, should be guaranteed "as muchas possible their rights under our Laws. And that is part of theobligation of the regulatory institutions of this country; whenthey are not seen to be doing so seem to be discriminating againsta Jamaican."

He added that "NACE feels the industrial action was necessarybecause there seems to have been a stagnation in terms of thisprocess going forward. The workers were very concerned and anxiousabout their situation; they felt that it had come to a point wheresome of them were being singled out for some type of retributionby management."

The action, he says is timely, given the presence of Mr. JohnWhite, head of the Overseas Territories of the Foreign and CommonwealthOffice, who is here on a four-day visit.

Asked whether he or his manager would meet with Dr. McField andthe Labour Department to discuss these issues, Mr. Smatt said:"I do not see a problem in sitting down with Mr McField....but we're not going to be intimidated by Mr. Banks down at theLabour office."

He referred any further questions to the company's attorney, MichaelAlberga, whose office confirmed that he was off the island.

Regarding the Hyatt issue, Dr. McField said that the matter isstill being pursued by the Labour Tribunal and that he would alsobe taking it up with some ministers of the government.

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