A layoff letter sent to employees at Atrium (see Thursday paper) is just the tip of the iceberg. With most businesses having seen earnings nosedive since mid-March due to the COVID-19 crisis, meeting obligations at the end of last month was often already a challenge.
United Federation of the Windward Antilles (UFA) as the workers’ representative and others condemned this – what amounts to a – voluntary dismissal offer, particularly because government has announced a payroll subsidy of 80 per cent. Companies that qualify for such are obviously expected to keep their staff on.
Perhaps it has to do with concern that the related St. Maarten Support Relief Plan (SSRP) involves a grant request of NAf. 254 million from the Netherlands to cover the second quarter, on which the Kingdom Council of Ministers has not – at least yet – made any commitments. However, Finance Minister Ardwell Irion clearly stated on several occasions that they would start with the NAf. 50.2 million in post-Hurricane Irma liquidity support from 2018 and 2019 just received.
Under the circumstances, seeking contact with authorities, if needed via the St. Maarten Timeshare Association (SMTA) and/or the St. Maarten Hospitality and Trade Association (SHTA), before making such a drastic move might have been a more sensible approach. The same goes for consulting the labour union.
On the other hand, the dominant stayover tourism has been hit particularly hard and there is a lot of uncertainty regarding the immediate future, with holiday travel not expected to resume until much later this year. Nevertheless, talking usually remains the best way to resolve problems.
And there are possible alternatives such as massively enrolling affected resort personnel in another round of the Emergency Income Support and Training Programme (EISTP). Executed by St. Maarten Training Foundation (SMTA) and bankrolled from the Dutch-sponsored Trust Fund administered by the World Bank, this would allow them to upgrade their skills while getting a stipend, health insurance and a small transport allowance.
Speaking of dialogue, landlords and tenants who may not be able to meet the full rent will also have to seek agreement. Justice Minister Anna Richardson, when asked, indicated there could be no evictions during the state of emergency.
People tend to stereotype rental property owners as being rich, but the reality is that many regular working folks build or buy apartments when employed to secure a little income for their retirement. Some may have a related mortgage to contend with as well.
These are unprecedented times when mutual understanding and compromise grow in importance. It may be a cliché, but we are all in the same boat.
