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"At a meeting of the Board of Directorsof Cayman Airways Ltd. held late yesterday evening, 16 March,2000 - the Board of Directors unanimously resolved to accept theresignation of the Company's President and Chief Executive Officer,Mr. Mark Winders.The decision is fully supported by the Shareholder,the Cayman Islands Govermnet" said Mrs. Sheridan Brooks-Hurst,Chairman of the Board in a Press Release received tonight at sixminutes before midnight.
The release continued: "At the samemeeting, it was unanimously resolved that Mr. Mike Adam, the currentExecutive Vice President and Chief Operations Officer be appointedto act in Mr. Winders' position until a substantive replacementcan be employed.
"Mr. Adam has in the past consistentlyacted in this capacity whenever Mr. Winders was on holiday orotherwise unable to perform his duties. The Board and Shareholderhas every confidence in his capabilities together with that ofhis Management Team and the committed and dedicated staff at CaymanAirways Ltd. to take us through these difficult, stressful andvery trying times " she said.
She added: "The Board of Directorsand the Honourable Minister for Aviation, Mr. Truman Bodden wouldlike to thank Mr. Winders for his services to Cayman Airways andto wish him success in his future endeavours."
"We would also like to assure the publicthat despite our recent problems we remain determined and committedto making Cayman Airways the type of airline that you, the peopleof the Cayman Islands can be proud of and we look forward to yourcontinued support and prayers" the Chairman concluded.
Mr. Winders' resignation came as a resultof intensive growing satisfaction among the staff of the airlinethey attributed to mis-management. Pilots supported by fight attendantsand other embers of staff met with the Mr. Truman Bodden, theChairman and Management yesterday afternoon. A showdown ensuedwhereby, Mr. Winders while attempting to address the gatheringand answer questions in a closed forum was jeered. Denied theopportunity to speak, he walked out of the meeting to applausefrom the assembled staff.
One of the most urgent issues facing Mr.Adam and his management team, is whether or not the airline couldbe viably sustained with the three aged 737-200 equipment in itsfleet. It is known that the Cayman Islands Pilots Association(CAPA) are greatly opposed to keeping this configuration of aircraft.
This turn of events, culminating with theresignation of Mr. Winders, puts the National Flag Carrier againin the highlight of main political arguments in the up-comingElection in November - as has been the case in many Electionspast .
In the Legislature last Wednesday, the Ministerfor Aviation stated to the assembled Members that he will "notchange the 737-200's - one which is nearly paid for, and the othertwo which are being purchased."
Meanwhile, two of the airline's three aircraftfleet, remain out of service - one undergoing a C-check and theother contracted to be refurbished so that it could be used asa combination freight and passenger carrier.
During their demonstration in front of theairline's Administration building last Wednesday, the airlinesPilots which have been sidelined form duty on "guaranteedpay" voiced their disapproval several times about the unreliabilityof the fleet's 737-200's.
CAYMAN NET NEWS will continue to monitor developments surroundingCayman Airways' and keep its followers informed.
Cable and Wirelessannounces reduction in Internet rates -
Spokesperson:"There's more to come"
In a Press Release received tonight, Cable& Wireless Cayman announced the latest phase in their ongoingplans to reduce the cost of Internet for their customers in theCayman Islands. This announcement comes at the same time the Companyhas also announced significant reductions in its Internet priceselsewhere in the Caribbean.
"The first phase of the plan is theremoval of the volume based billing for dial-up customers."the release said, and continued ... "As of April 1st dial-upcustomers will no longer be billed the Data Transfer charge theypay for over 2 Megabytes downloaded per hour." Dependingon how much is downloaded, this could transalate to a savingsanywhere from $5. to $7. a month to the average browser.
Cable & Wireless' General Manager, TimAdam explained the Company's reason for the reduction: "Thisphase of our plan to reduce the cost of the Internet to our Customerscame about as part of our 'We Hear You' campaign. We had manydial-up customer requests to remove the Volume-Based billing componentand we have responded."
"We are able to make this change nowbecause we anticipate the new Maya 1 international fibre opticcable system will be ready for service in June, which means thatwe will have easier access to more bandwidth to maintain excellentservice quality as our customers' Internet usage grows. In otherwords from the beginning of April our customers will already bereaping the benefits that our major investment in this new systemwill bring to the Cayman Islands."
"We are also currently reviewing thestructure of our dial-up Internet price packages and Cayman customerscan expect an announcement on this within the next few weeks,"concluded Mr. Adam.
Mrs. Rhonda Kelly, public relations spokespersonfor Cable and Wireless, confirmed that there will be even futher"positive news for Internet users in Cayman by the middleof April." There have been calls for the communications giant,who has an exclusive communications provider 25-year contractwith Goverment, to lower their rates.
Announcing the price reductions for theCaribbean Region, Chief Executive Officer of Cable & WirelessCAI, Mr. Odie Donald explained, "The Internet is the fastest-growingarea of communications today, and is now becoming an essentialpart of both business and home life, which allows our customersto keep in touch with friends, family and the world of informationin general."
The CEO also said that Cable & Wirelesswill be offering customers across the Caribbean an array of newproducts and services over the next 12 months and will continueto bring the latest technology to the Caribbean as it becomesavailable on the world market.
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BREAKINGNEWS: (4:45pm Thursday)
CaymanAirways' Managing Director "storms" out of meeting withMinister, Top Management and Employees Effortsto get an official confirmation that Mr. Mark Winders, who hasbeen under extreme pressure from the Airline's Pilots Associationand other staff members to resign, have been unsuccessful up tothe time this report was uploaded.
Asked if Mr. Winders has tenderedhis resignation, an airline administrator told CAYMAN NET NEWSthat the Airline's top Administrator "reported to work thismorning, and that there was no statement from the Minister responsiblefor Aviation, Mr. Truman Bodden, the Cayman Islands Pilots Associationor the management of the airline can make "at this time."
CAYMAN NETNEWS is on top ofthis story, and will bring
up-dates as they become available.
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Just how longis a piece of string? - It all depends ...
In response to a Directive beingconsidered by Government that Businesses may be required to submita 3-year plan of staffing requirements.
This was the view of a Caymanian businessman,following yesterday's "Talk Today" show -- a forum presentedon Radio Cayman and hosted by the station's Val Lichtenstein.This medium has undoubtedly become the focal point of many, whereintopical issues are aired.
Studio guests during the show were the Chairmanof the Immigration Board, Ms. Sharon Roulstone and Mr. O. C. Connor,the Chief Immigration Officer, who responded to questions andcomments posed by many callers in to the show.
These days, a considerable amount of discussionand time is being spent on the new directives for Immigrationmatters recently announced by the Hon. Chief Secretary, Mr. JamesRyan, particularly in connection with the granting of Work Permitsfor non-Caymanians.
It is a given - that should this territorywish to continue on its upward path of sustained economic growthfuelled by construction of homes, commercial buildings, condominiumsand hotels; as well as increased tourism and financial servicesmanagement - pillars of the country's 'success story' - and thepresent Government Administration's drive for Cayman to becomea formidable global player in the expanding internet trade transactionsof e-commerce, there will always be justifiable reasons to hireforeign workers.
The problem facing the country is not somuch how may workers are required - whether they are Caymaniansor non-Caymanians - but what or where are the overall developmentplans business plans for the country? And who is really responsiblefor drawing up those plans - the Central Planning Authority, whichseems to have developed an excellent service record and turn arounddecisions in connection with applications related to construction?Or is it the Immigration Department?
In practical terms, before any major constructionproject is considered and eventually started ... a considerableamount of expertise is required to draw up the working plans.It involves, architects and draftsmen, quantity surveyors, engineeringstudies, electrical, plumbing and landscaping drawings ... andin the case of a major development, where the environment, infrastructure,traffic flow and sewer requirements must be taken into consideration- an impact study is a necessity.
Who is responsible for contracting for theprovision of all these all these services before plans can beconsidered by the Central Planning Authority? The developer....investors who are prepared to risk their capital to reap a profit.
Therefore, when the question is posed, asit often is - "just who is Cayman being developed for?"- it begs a further question - "just who is responsible forthe overall development of Cayman?" The answer must be -the Elected Members of the Executive Council Government Administration,who are vested with the Authority given to them by their MLA peersand the electorate to pull together experienced teams who willprepare plans to meet the criteria required to build a sound society.
No one particular department of the Governmentshould dictate what is the margin for growth and the number ofpeople required in the labour pool. Conversely, other departmentsare giving approvals and passing plans for growth in tourism,financial services, retail trade, construction, education, e-commerceand other services - which will require a tremendous amount of"hands-on-deck " to carry the weight of growth.
In other words, what is required now - andsuch may not be possible in the short term, given the preparationsfor the election of a new Government in November is kicking intogear - is a commitment by those charged with the responsibilityof Administration, to requisition and draw up a proper set ofplans to ensure that the 'good ship Cayman' is being constructedsoundly to weather the journey which it faces in this new century.
The Government Administration of 1988-1992,which included former Managing Director of Cayman Airways, Mr.Norman Bodden with the portfolio of Tourism and Aviation, balanced,no ... rather 'managed' growth for the Cayman Islands with a sensiblemoratorium on the construction of Hotels along the now obviouslyimpacted Seven Mile Beach area. This was supplanted with the implementationof other plans which included the building of a sewer treatmentplant, of potable water distribution to most districts, and manyother initiatives which included sensible directives to Immigration,Central Planning and other essential services provided by Government.
The awesome task of long term Planning shouldcertainly be the purvey of team effort by those in authority,in partnership with the businesses who contribute to the Treasury'scoffers.
How much will a business grow in three years?Well ... how long is a piece of string? The local business climatewill accelerate or decrease depending on how competitive theycan be with places such as Miami - which do not have the heavyindirect taxation imposed and hefty salaries being paid - if onecan get the necessary help - to operate a business.
It may therefore be quite a tremendous burdenon this already weighted-down Immigration Department to tabulate,analyse and make decisions as to when and how the private sectorinvestor - any business operating today in the Cayman Islandstoday - can grow. This system is far more applicable to a societythat is under the control of undemocratic rule.
It is unreasonable to predict how many Caymanianscan be trained to take over certain positions if the climate remainsas it is. Skills which take five or more years to master cannotbe taught to novices in three years. Furthermore, as addressedpreviously, with Cayman's over-employment economy - more jobsthan there are people - employers are not on a level playing fieldwith Government who do not have to put in applications with theImmigration Board to hire anyone. ... in any category.
It is also a fact that most employers wouldmuch rather hire and train a Caymanian than bring in someone fromoverseas. Large companies like Caribbean Utilities and Cable andWireless have instituted training for mainly non-technical andengineering staff. Additionally, these companies and others dospend a considerable sum in sponsoring University degree scholarshipsin these fields as well as other requirements to fill severalposts right across Cayman's private sector in all fields.
The Cayman Islands Civil Service now hasa complement of almost 3,000 persons on its payroll - and thatis excluding statutory authorities like Civil Aviation, the PortAuthority - whose salaries must still come out of the Government.Cayman Airways is a separate entity owned by the Government, with310 employees and an annual subsidy in the range of $5 million.This figure represents one the highest ratios per capita comparedwith private sector hiring in the region.
Several attempts have been made in the pastto pull together the public and private sectors in an effort tohelp plan the Cayman Islands' stupendous growth and to take well-plannedsteps in order meet the demands brought on by such growth.
It is not practical to expect the 2000-plusTrade and Business License Holders to present 'business plans'related to immigration requirements. It would, however, be farmore prudent to immediately initiate, the convening of a StrategicGroup made up of private and public sector, to develop a viable,workable plan whereby these islands may continue to enjoy itssuccess story.
Trade &Business Licensing Board Issues Statement
The Board which meets separately from theImmigration Board, dealing with matters in connection with theLicensing of all Businesses, came under criticism by a Memberof the Legislature, during a sitting of the House towards theend of last month. In response to this allegation - which protectsMembers with immunity during debate - the TBLB have issued thefollowing:
"The February 28, publication ofthe Caymanian Compass included an article on MLA John D. JeffersonJr.'s contribution to the Throne Speech. In that account, he isreported as saying that applications before the Trade and BusinessLicensing Board were being delayed "because of personal differences,the Chairman, Deputy Chairman, or members might have toward aparticular applicant."
The article also records Mr. Jeffersonas expressing his concerns "that some members of the Boardwere involved in conflicts of interest."
After reading the report, the Board believesthat it is responsible to correct the inaccuracies in Mr. Jefferson'scomments.
First, the Board aims at all times tobe fair to all applicants, and to move matters along for decisionsas quickly as possible. There are times when applications aredelayed while the Board is waiting for requisite permission fromother statutory boards or for responses from applicants. We must,however, conduct business in the way proscribed by law; one reasonwhy members must exercise patience in certain cases is to ensureagainst "fronting."
Second, personal differences and otherconflicts of interest have not influenced the Board's decisionmaking since its members were first appointed in April 1998. Indeed,members agreed to adopt Standing Orders to deal specifically andexplicitly with conflicts of interest, and the Board consistentlyadheres to these procedures.
Third, when a member has a personal orfinancial interest in a matter that is before the Board, StandingOrders obligate the member to declare the conflict of interest.Furthermore, the member is required to leave the meeting roomuntil the Board has disposed with the matter. Let it also be emphasisedthat the member cannot participate in any discussions or any voteson the issue in question.
The Trade and Business Licensing Boardis serious about its responsibilities to the public, which itserves. Providing accurate information to the people of the CaymanIslands is, therefore, only an extension of its civic duties,which are performed out of loyalty. If Mr. Jefferson is trulysincere in addressing possible conflict of interest issues withinthe Board, the Board would urge him to present credible evidenceto the Chief Secretary and request a formal investigation."
As the public concerns increase mattersin connection with Immigration matters, there are also complaintsrising in connection with some decisions made by the TBLB.
No one can doubt that there is a lot of"fronting" - whereby Caymanians, those who have theright to own a businesses as they own 60 percent controlling sharesin the entity, have no restrictions - going on. That is, Caymaniansact as a front for the business.
This is not restricted to ordinary folk,many who have come to live here and achieved the Caymanian Status(sometimes referred to as paper Caymanians) - and even indigenous,true-born Caymanians are engaged in this arrangement.
Could thisbe stopped? Well ... "just how long is this piece of string?"
As long as there are laws which prevent-- or rather -- tempt good law-abiding citizens with no alternativebut to lie, whether it is on an Immigration or Business Licenseform as to only way to get around cumbersome statutory requirements,people will do so.
It is not an often addressed fact; however,it is known, while a fee may be paid to apply, and all the guidelinesare met including the requirement to advertise the fact that thenon-Caymanian will be submitted in connection with trying to geta 12-year Local Companies Control License, which is required fornon-Caymanians to do business, there is no guarantee that thelicense will be granted. Furthermore, many who did, in fact, gettheir LCCL, have found out at a later date that they were denieda Work Permit by the Immigration Board.
As suggested by many Managers of Human Resourcesfor several companies, it would be in the interest of all partiesif the Immigration and Licensing Boards would provide all individualapplicants, or others acting on their behalf, with some form ofmanual or instructions as to what are the specific requirementsand guidelines to be met before making applications to these powerfulbodies.
When possible, try calling in to the Immigrationbuilding in person to get a response to enquiries in connectionwith Trade and Business Licenses. On occasions, it has taken morethan four hours to get through on the telephone.
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More CaymanAirways Reports
There was no news to report - followingthe meeting - in a closed forum - between the Minister responsiblefor Aviation, the Hon. Truman Bodden, the Chairman and Board ofDirectors, Senior Management and employees of the National FlagCarrier yesterday afternoon (Wednesday 14 March). (see above Breaking News)
In an earlier statement read by the Ministerin the Legislature in response to questions raised by George TownMLA, Mr. Kurt Tibbetts., Mr. Bodden offered the following:
'With regards to the member's questionsCayman Airways response is as follows:
1) Management extended the checks onVP-CAL and VP-CKX and all possible extensions were utilized withthe expectation that the new (third) aircraft would be broughtinto service in advance of the required checks. Management couldnot predict the difficulties at Boeing Aircraft Corporation, whichdelayed the completion engineering work for the new aircraft orthe truckers strike in Florida which continues to delay the arrivalof the new seats.
2) First Air was the only sub-serviceoperator available that could provide weekend coverage. Managementfelt it was better to have an aircraft with one crew rather thannothing. First Air continues to seek an additional crew for theirsub-service operation.
3) The aircraft delays and the cost ofsub service coupled with the impact of the service problems willhave a significant impact on the carriers financial and cash position.Management remains optimistic that with its new schedule, incorporatingthe third aircraft and its passenger and cargo product improvementsthat the national carrier's financial viability will improve.
4) Some members of the Board recentlymet with the approximately 50 employees. Their issues have beenbrought to the Board and Executive Management's attention andare currently under review.
5) In terms of CAL's equipment, thereis no doubt new aircraft will potentially improve the carrier'scustomer service levels, but, as a cost that neither the airlinenor the Cayman Islands can afford. To obtain new aircraft, leasing3 new aircraft would add approximately US$6 million per annumto the carrier's expense with very little offset to fuel or maintenancecosts. In 1991,CAL sold two 727-200 jets which were being purchasedin the one year that CAL made a US$1 million profit. Today thecost to purchase one 737-600 is approximately US$40 million comparedto US$10 million to purchase a 737-200 similar to what the airlinecurrently operates. In 1991,CAL had three new Boeing 737-400's,one 737-300 and one 737-200 and had losses of nearly US$15 millionper annum and contingent liabilities of US$107 million. This nearlybankrupted the Cayman Islands. I will not cahange the 737-200's- one which is nearly paid for and the other two which are beingpurchased.
6) Cayman Airways is very hopeful thatwith the return of the first aircraft, VP-CAL and the third aircraftVP-CYB will be able to offer improved reliability with the newschedule. With the introduction of Business Class, improved seatpitch and a regular freighter schedule, coupled with an increasedfocus on quality customer service delivery the airline can repositionitself as an airline that Caymanians can be proud of."
The Management of Cayman Airways believethat they are making progress. There is no question that thisprogress involves change, which is creating a level of anxietyand resistance within the company. The Cayman Airways executiveteam is unified in their undertaking to improve the airline'sfinancial viability. They believe that their plan is working andthat their efforts need to be supported to move the national carrierforward. Change is difficult, uncomfortable but s we will allagree - necessary.
In this difficult period and especiallywith the next few weeks, the team work of CAL's staff, the supportof the members of this Honourable House and the support of thePublic are all equally necessary to move CAL, our National Carrierforward."
Airline's Boardof Directors and Pilots' Association issue separate statements.
Press Releasefrom the Cayman Airline Pilots' Association. (March 14, 2000 -9:42 a.m.)
"On behalf of Cayman Airline Pilots'Association (CAPA) and the dedicated employees of Cayman AirwaysLtd. (CAL), we would like to sincerely apologise to the valuedcustomers of CAL and the people of the Cayman Islands, for theinconveniences experienced in the recent past due to disruptionsin the CAL flight schedule.
A meeting held on Tuesday, March 14,2000, at the Cayman Airways Administration Building by a numberof employees of CAL was not organised by CAPA; however, a numberof its members were in attendance. Many of the employees of CALvented their frustrations and concerns at the continual disruptionsto the airline's flight schedule and its operations in general.CAPA also shares these frustrations and concerns and remains committedto finding a resolution to these problems.
We would also like to make it clear thatstatements made to the media by some of our members at the aforementionedmeeting, are fully endorsed by CAPA. It is the opinion of themembers of CAPA that the problems which have recently been thecause of CAL's operational difficulties could have been avoided,and that the management of CAL must accept responsibility andbe held accountable for its failure to anticipate and adequatelydeal with these problems.
CAPA remains committed to CAL and tocooperating with everyone involved in finding satisfactory solutionsto the current problems at CAL. The travelling public may restassured that the members of CAPA will continue to provide thehighest levels of safety and professionalism that they have cometo expect at CAL and we thank you for your continued support ofCAL during this period of difficulty."
(Signed) Perry Panton, President; JavierThompson, Secretary; Jeff Miller, Treasurer.
Statement fromChairman of the Board, of CAL, Mrs. Sheridan Brooks-Hurst (March15, 2000 2.59 p.m.)
"As a result of the Board of DirectorsMeeting yesterday, at which time the airline's recent problemsand the concerns of staff regarding management were discussedin depth, it was decided that the most appropriate and effectiveway of dealing with the issues raised was to arrange an open forumfor staff where their concerns can be raised to management inthe presence of the Board of Directors.
The forum is scheduled to take placetoday (March 15th) and all staff are being encouraged to attend.The forum will be restricted to staff, management, Board of Directorsand the Hon. Truman Bodden, Minister of Eduction, Aviation andPlanning.
A further statement will be issued, ifappropriate, after this meeting has been held."
AirJam to CAL'srescue
Air Jamaica which provides five flightsper week to Grand Cayman from Jamaica, were able to provide charterservices to its sister carrier Cayman Airways when the airlinewas experiencing massive equipment problems last weekend by arrangingtwo charters: one Houston-Cayman on Tuesday, March 14th, and Miami-Cayman,Monday, March 13th.
Air Jamaica was approached by the Managementof Cayman Airways for sub-lease, but "could not enter a longterm arrangement." confirmed a statement from Air Jamaica'sPublic Relations office in Kingston.
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