Cayman Airways'Entire Fleet Grounded
Quite an usual number of Teachersdid not show up to work yesterday. It was not that they took theday off - they simply could not get to work because, on tryingto return to their posts after taking a mid-term break off island-- they were stuck either in Miami, Tampa, Houston or Jamaicawith hundreds of others -- because of Cayman Airways' monumentalproblems over the weekend.

The Chief Operating Officer of the NationalFlag carrier apologised in a Press Release issued by the Airlinelast night by saying: "we realise we are losing credibilityand the goodwill of our customers, but we are continuing to pullout all the stops to get our operation back to normal. All threeof the Airline's planes are on the ground.

Compounding the Airline's woes, was the"unexpected mechanical problem on Saturday" when the737 equipment - VP-CKX - which has just returned from a "C"check in San Salvador, and was grounded here for three days beforebeing pressed into service. It took a lot of time to locate thenecessary the replacement part for VP-CKX, when it returned fromSan Salvador. The release issued did not indicate when this equipmentwill be air-worthy and be returned to service.

It is known that the 737's now in CAL'sfleet are not serviced with parts supplied directly from the manufacturer- Boeing - instead, reliance has to be in finding parts from eitherother 737 owners' inventory or cannibalized from similar equipmentwhich are being taken out of service because of their age, andreadily available spare parts.

The 727 sub-service contracted from FirstAir of Canada, was not available to pick up the slack caused bythis major disruption, because its lease arrangements only allowedfor one crew, therefore leaving the 727 equipment idle --whileit's Canadian crew enjoyed Cayman's Seven Mile Beach.

The release further stated that the airline"worked diligently with brokers and all other available sourcesthrough out the (last) weekend, to find sub-service for the cancelledflights. Unfortunately, over the weekend there was virtually nosub-service aircraft, or crews available to operate sub-serviceaircraft from Cayman Airways."

The airline's other two 727's are stillin San Salvador, one undergoing refurbishing to be a 'Quick Change'configuration from passenger to cargo carrier; and the other isundergoing a "C" check.

On hearing this news this evening, one frequentflyer who had to reroute his travel through Jamaica to get backto Cayman, wondered: "Instead of looking all over Americaand Canada to charter planes, did anybody think of trying AirJamaica?"

WhileCayman's Immigration debate rages - Bermudians bemoan their fate:

"SweepingChanges Proposed in Work Permit Shake-Up" - THEBERMUDA SUN

As the Issues surrounding Immigration continueto heat up locally -- on the other side of the Atlantic - Cayman'sSister Dependent Territory of Bermuda, which has an approximatepopulation of 70,000 with only 20 square miles of land, whichis one fifth the size of the 100 square miles making up the CaymanIslands, with an estimated population of 42,000- 45,000 -- ishaving an equally warm time dealing with their own issues of Immigration.

It is interesting to note that it was theBermudian Protection Law which launched the model of the CaymanianProtection Law and was introduced to the Legislative Assembly,it is believed by Mr. Benson Ebanks a former Member of the ExecutiveCouncil. Now both Territories - who still reports to Mother England,are in an irresolute state - because of impending changes in ImmigrationPolicies.

The following article excerpted from theWednesday 8 March edition of the Bermuda Sun, which quotes onit's front page 'It's the most unhappy people who most fear change'

The entire article follows:

"Six-year ceilings will be placedon work permits if planned changes to immigration policy becomelaw.

Employers could apply for three-yearextensions taking the limit to nine years, but they will be grantedonly in special circumstances.

Beyond nine years, an expatriate wouldhave to prove him or herself to be a 'key" employee and meetdemanding new standards.

The new rules would apply to those recruitedafter March 31, 2000, and there is no clear indication how currentwork permit holders may be affected.

The proposals are contained in a weightyMinistry of Labour, Home Affairs & Public Safety discussiondocument marked "private and confidential," and leakedto the Bermuda Sun ( 9 March 2000). It has been distributed tokey business groups for their feedback with a March 20 deadline.

Under the plan, a new sliding scale offees would be introduced, making employers pay more the longertheir expatriates remain on the payroll. In some cases, fees wouldincrease dramatically.

Speculation about revised Immigrationpolicy - some of it allegedly shaking the confidence of the businesssector -- has been rife since Labour Minister Paula Cox outlinedsome of the proposals at a meeting of the International CompaniesDivision (ICD) of the Chamber of Commerce in January.

The greatest area of concern for thebusiness community is proposed time limits on work permits.

The 57-page report suggests time limitswould apply only to occupations in the so-called 'limited category'- those in which at least 100 non-Bermudans are employed. Examplesinclude general managers, waiters, accountants, nurses, gardeners,teachers, computer programmers/analysts and lawyers.

Work permits will be issued for "no more than two three-year terms," deemed to be the middlepoint between "uneconomical short end" and the "sociallyunacceptable long end of the scale."

However, should the employer make a "strongenough case" because of a "genuine and real need"to extend an individual's permit, a period of three more yearscould be allowed, taking the maximum to nine years - but withno structure outlined for further renewal.

However, there is a special provisionwhich could override that clause, if the
employer can prove that the individual on the work permit is considered"key" to the business. To be considered "key",a permit holder must be:

-- a world-class practitioner, or
-- be among the few people skilled in their field in the world,or
-- be so integral to a firm that without them, Bermuda and
Bermudians would lose out, or
-- have business contacts critical to the firm's success, or
-- be a job creator and/or a trainer of Bermudians.

"This policy does not apply to thosepersons who are already on work permits unless they change theiremployer," the report says.

Renewal fees will be on a sliding scale,which could increase a three-year intervals. There is no proposedincrease for the first three years, but fees for renewal for yearsfour to six could see up to fivefold increases. And if the permitis renewed for years seven through nine, it is proposed that thefee be doubled and then doubled again for further renewals.

The purpose of this, the paper reads,is to discourage employers from hiring non-Bermudians for extendedperiods, to hire foreigners only where there is a genuine needand to link the value of that long-term employer with the costof retaining their expertise.

However, the graduated fee structuredoes not apply to the individual permit if the employer is activelytraining Bermudians or, if the work permit holder is under contractto train Bermudians. Also, the graduated fee structure does notapply if the individual is proven to be "key" to thebusiness.

Once an expatriate has reached the endof their term in Bermuda, in order for them to be eligible towork on the island again they must break all "ordinary residence"in the island.

That includes moving all personal belongingsout of the island, leaving their home and closing all personalbank accounts.

"A person who owns land in Bermudawill find it difficult to show that he or she has broken ordinaryresidence in Bermuda," the reports reads. "Such a landownerwill not be allowed to work in Bermuda again under immigrationcontrol until he or she has disposed of the property or can demonstratethat he or she has not been in possession of the property.

After two years off the island, the individualis then free to re-apply for work here.

The consultative report looks at manyother areas of Immigration policy, and proposes closer scrutinyof marriages between foreigners and Bermudians."

With this development, one can literallysay that businessmen on both sides of the sea that separates twoof the world' s best run Offshore Financial Centres - Bermudaand Cayman - are caught between a rock and another rock.

Blooming Caribbean Tax Havens such asthe British Virgin Islands, Nevis, Turks and Caicos and Anguillamust be beaming with their doors wide open, in an effort to snapup disenchanted investors who may be quite unhappy about the proposalsproffered for discussion by Bermudian and Caymanian Legislators.

Most likely, there may be other CaribbeanStates waiting in the wings to reap the windfall of investorsand professionals who may prefer to take their chances elsewherethan Bermuda and Cayman - than having to roll-over in any amountof years, whether it be five, six or nine years.

"TheKey to the Future"

'Vision 2008'National Strategic Plan could be put to use now as model

Thousands of hours were put in by hundredsof Private Sector volunteers and Civil Servants to create a planwhich could serve the Cayman Islands as a working model for itsfuture.

The plan contains a wealth of strategiesresearched, discussed, thrashed out, and agreed upon with KeyRecommendations developed from the 16 strategies discussed.

In many other jurisdictions, when an importantdocument such as the Vision 2008 was delivered to the Country,City or County Fathers, it was used as a 'working model' to introducechanges to 'test' if they are workable for the future target dateof incorporation (of the plan)

It is hoped that all of this valuable workwill not be left to languish, and that today's administrationand the new one in November will work towards getting some ifnot all of the recommendations suggested by a mix of individualsunselfishly - Caymanians and Expatriates - to come up with a documentwhich fosters 'good' order' and sensible development for all areasof Cayman's burgeoning community.

CAYMAN NET NEWS will highlight extracts from this valuable documentin future editions of this website.