CONFIRMED: 700 Workers Laid Off At Four Seasons Hotel Site
See Nation News story – Project On Hold
Our original story published 16 hours before the oldstream media…
Right Now – Consider It Only A Rumour, But From A Good Source
A source who has been proven 100% accurate with Barbados Free Press over the last year says that the developers of the Barbados Four Seasons project are going to lay off all their staff (local and foreign) tomorrow and pay everyone what is owed. The rumour also says that the developers “owe lots” to local suppliers and “will make an effort” to pay them off over the next few months.
Have BFP’s readers heard anything one way or the other?
Someone please give the developers a call and tell them that we’ve put this up. They can reach us through email (barbadosfreepress “AT” yahoo.com) or by posting in this story’s comments section.
Hmmmm…. didn’t we just see government officials struting around the project for a photo-op a few weeks ago?
Barbados Free Press 
WOW, I am shocked, actually heard about it a few hours ago but what I am shocked at is how the Gov’t was up and down on CBC everyday for 1wk breaking a nonstory into bits of junk now to hear that the project which promised no-layoffs are now in the dirt with everyone else…….who mask is next to fall….maybe Clico bds.
Bottom line the Gov’t needs to stop hiding up and come straight with the public on the economic status of our island state…where is the economic stimilus we needed since 2008 [hoping that 4seasons was a part of it]!!
What stimulus what. The government has not money. The previous government banrupted the country. Or so I have read. Was it here or over at BU?
To think that the economic fiasco would not affect ‘small potatoes’ Barbados was riduculous. I wonder if they were getting financing form the Bank of Antigua?
At least the locals will get unemployment benefits until they find something else.
Well BFP, if this is true, you should ask your source if the foreign labourers on that project (chinese, guyanese) can be expected to leave at once on the next available flight.
… but they are advertising for a Quantity Surveyor in today’s paper?
@Pat
What happen to you?
The grammatical mistakes in your post suggest you are either angry or you have surpassed your quota of single malt.
Pray for “small potatoes”Barbados.
@Hants
Pat is just giddy because Barack was in Ottawa today and bought a beaver tail at the Byward Market
@John…those are work permit ads…they don’t hire locally above support staff and laborers as far as I know.
After I saw how they removed all the mature trees from the beach, destroying, not only trees which were hundreds of years old but also the habitat of countless monkeys, birds, butterflies, and other wildlife I did not think much of them.
They made poor environmental/ecological decisions.
Why then are we surprised that poor financial decisions were also being made?
My grandmother used to say, “if you start wrong, you will end wrong”
But I am sorry for the workers who have been laid off, and for their families.
I hope that the company or the workers themselves have enough money left to repatriate the workers.
I hope that the taxpayers are not left holding the bag on this one.
UNFORTUNATELY this is just the tip of the iceberg, Expect the BDS unemployment figures to top 25% by July 2009. Barbados will experience > 5% negative growth in its GDP for 2009. These factors have the distinct possibility of putting us into an economic tail spin that can see our overall standard of living going back 15-20 years. Things are REAL BAD and the government knows this and they will try and create a number of distractions with the hope of keeping our minds off the real issues – One such deflection is the announcement that government is about to repurchase the BNB. Two simple questions: For what? With what?
You sound almost happy at the prospect of your dire baseless predictions coming true, Sad T S!
Juris: Actually I am not. I am very disheartened that we ALL seem to have our heads buried in the sand seemingly oblivious to fact that the world around us is economically coming to a screeching halt. The job that I am in allows me to assess the local and world economy in real time and my predictions above is likely to be the best case scenario. Bookmark them and let us revisit in December 2009. Hold on to your seat my brother for the nightmare of a ride has only just begun.
This has nothing to do with Government.It is an investors issue as far as I know.
There is a government apprenticeship programme attached to the project.
Either way there are al ot of upset people. It is an extremely sad situation.
Today’s paper says the GOB is trying to buy back BNB!!
Good luck to them.
The problem stems from the politicians’ need to rationalise takeovers of existing Barbadian businesses by using CSME to argue that the takeovers are indicative of free movement of capital around the region.
In reality the take overs to my mind are about myriad failed economic policies and existing investors “getting out”.
Instead of promoting long term sustainable economic growth we have had politicians who like to grandstand.
I am all for the inflow of capital into Barbados but I prefer to see that capital make something new, sustainable and useful.
It disturbs me when I see new capital buying existing infrastructure built up already by our sacrifices and then watch as the new owners benefit from those sacrifices and take profits outside.
Build something new, sacrifice with the rest of us and show us you merit becoming a part of us.
We do like new ventures.
700 on breadline, read today’s dead-tree edition of Nation
This is real serious business. I have had to watch up here in New York some of my co-workers getting laid off at the company I work for. This is one of the richest companies in the USA and it it is belt tightening. Having read a couple of posts on this blog it seems that because of partisan political leanings some persons are predicting with glee that unemployment figures in Barbados will reach 25% in 2009. These are serious times. You think trying to cause the government embarrassment will make Barbados any better or enable your party to win the next election? Be patriotic-think BARBADOS first.
Tony Hall says
“Be patriotic-think BARBADOS first.”
I agree.
I hope we all get through this recession without too much pain.
I guess my question was appropriate. Only the chinese workers are still there working!
Unfortunately the Government does not/cannot tell us like it really is. They know that there would be panic if the likely short/medium term economic future of the island is known by “the man in the street”. Things are bad and will get worse. I don’t know just how bad but I see serious economic stress and shortages in the future not far away. Not necessarily the fault of our Government but because the rest of the world is sliding down and we are too small to do anything to avoid following them. Talk about feeding ourselves is not a reality, there is not enough land and not enough effort to make it possible. How well we adapt to the lifestyle changes that will be necessary will determine how we come out the other side of this crisis. If we assume that it is all someone else’s fault as so many of us tend to do then we will not get very far. “The fault Dear Brutus, is not in the stars but in ourselves ….etc”
some of you guys understand but so many of you do not! So what if the Government is sugar coating the current economic crisis? Everyone has their own brains and can formulate their own point of views!
Where is Barbados’ main market for tourism and house purchases? The answer is the UK, what’s happening in the UK? The answer is economic melt down!
What does this mean? TROUBLE! We can’t possibly expect to survive this crisis without being hit ourselves as some of the other blogs have said… we haven’t seen anything yet, we are still in the good times at the moment!
In regards the Four Seasons project, I can’t help to think that this is a small blip in the grand scheme of things. There has been huge investment into the project to date, surely there is no other alternative than to find a new investor to allow them to continue? Give them a few months and they will back up and running!
There is too much to lose especially when they must be reducing their building costs by at least 30-40% due to the reduced prices for building materials during this global economic crisis!
John
Is the government trying to buy all of the shares it previously held opr is it only buying those shares that will give it a controlling interest!! Where are they getting the money from?
Hants
February 20, 2009 at 3:23 am
@Pat
What happen to you?
The grammatical mistakes in your post suggest you are either angry or you have surpassed your quota of single malt.
Pray for “small potatoes”Barbados.
*****************************************
Sorry Hants. I noticed the errors after it was posted. There is no editing feature, I fear. I only had one McCallans, as I normally do.
@Sargeant
I watched it on TV. I wanted to go to the Hill, but I passed up that, skipped my yoga class and stayed home. It was blustery.
Thank God for the wise comments in this thread. I am here reading with amusement these postings.
As someone said we need to recognize that this is a WORLDWIDE economic problem and not a BARBADIAN problem. We here in Barbados are lucky that we have retained a strict monetary policy through successive governements. We are lucky that we did not play the PRIVATE financial markets like some of our other neighbours. What we are seeing unfolding worldwide is the failure of a rampant capitalist freemarket system (greed), categorized by a series of financial systems that the World’s business schools could not keep up with. And as a result the financial regulators were at a lost to control.
What President Obama and both sides of the US government are doing is a baby step to control the greed.
Someone spoke about the UK market, well the troubles we are seeing worldwide arguably can be traced to the meltdown in the USA. The largely underregulated US financial system with new financial instruments being created faster than you could say ‘crook’ attracted investors from all across the globe with their high, sometimes ridiculous rates of return. The US investors in turn created investment funds based on investments in ’emerging markets’ in Europe, Asia etc. What we are seeing here is the boilover of a great big melting pot.
If you build a house of cards and pull out certain cards it falls!!!! Luckily for us our public debt is with International public sector lending agencies and local banks and investors.
What I will say is that our main tourism competitors (Caribbean as a region), countries such as Dubai and some of the countries in Asia, have also taken major hits. In some cases their tourism plant is grinding to a halt.
We need to stop acting like ‘Oh my God, it is so sad’ and use these blogs to spread some good news about Barbados and the rest of the Caribbean. We still have a relative level of financial stability.
If I were planning a vacation now, unless I am totally cheap I want to go somewhere with financial stability. Where the hotel is less likely to go into receivership while I am staying there. Where no one is trying to cut my throat for US$ on an ongoing basis. No one knows what the future holds, but we are nearly 2 years (yes 2 years, it started with the mortgage meltdown) into this crisis and no major job cuts here in Barbados and most of the Caribbean. Who knows how much longer the ride will be? On that I agree, but the stimulus package in the US with some good regulation like we are now seeing (eg. Madoff and Stanford) can turn around this crap THEY started.
A certain friend of mine works for Cinnamon 88, the developers, and the people who had company cars have been told they can keep their company car for one more month, its all over folks, the property will be auctioned off eventually if no other investor comes forward which is highly unlikely, Black Best construction are going to feel the pinch more than the other construction companies as the Four Seasons project was the only one that had work for them, more news to develop as time goes on folks…
Who owns BNB? Who will receive cash for that company?
Is it not subsidiary of a CLICO subsididary?
😉
@SBD
• Who owns BNB? Who will receive cash for that company?
Is it not subsidiary of a CLICO subsididary?
************************************************
But if the T&T Gov’t acquired RBTT as part of its bail out package of CL the funds would go to the T&T Govt.
Hey I’m just guessing
http://www.thestar.com/article/587600#Comments
We ALL know that it is a WORLDWIDE economic problem, however, I have a problem with those in authority encouraging fellow Bajans to go out and spend their money like there is no tomorrow. This is VERY irresponsible. I also have a problem with those in authority lying (forget the euphemism) about the state of the key engine of the economy – tourism, telling the public that numbers are only down by 4% compared to 2008. This is what is referred to as cooking of the numbers. There is NO HOTEL that has fallen off by >10%, as a matter of fact on average the numbers in the hotel sector are down by 30-40% across the board – and the only reasons why these numbers are no worse is because most of the tourist that are here booked 8-12 months ago and they would be penalised if they were to cancel at the last minute. The summer looks bleak, there are few hotel bookings after April 2009. It must also be noted that for the tourist that are here the average spend is down by 40% – i.e. the tourist are buying a cheaper bottle of wine with their dinner, they are less likely to go on a catamaran, submarine or island safari tour.
I AM CERTAINLY NOT happy to report this state of affairs like some are suggesting; however, I do believe that the public should be fully aware of what is happening out there. For Christ sake belt tightening should be the order of the day for ALL Bajans – we must put off that cruise this year or that trip to Europe or buying the car of our dreams or building that house in the heights/ terraces or sending our kid to that Ivy League university. These are by no means a must in that there are alternatives that are likely to cost us a lot less.
Government in the generic sense – not referring to a BLP or DLP administration – has a vested interest to keep us living beyond our means in that if we collectively tightened our belts Government’s tax revenue – especially VAT and import duties – will take a serious blow.
My predictions in a previous post were based on the fact that we are likely to see a significant fall of in other areas of our economy such as construction, manufacturing, off-shore financial, sports tourism, crop-over, and music and entertainment industry.
We Bajans have been traditionally a very parsimonious people where we hardly spent a bad cent. We need to return to those days of yesteryear if we going to successfully survive the economic tsunami that is heading our way. Those who continue to live as though there is no tomorrow is going to pay in a way that could lead to the economic ruin to you and your most loved ones.
DDE
The majority shares in BNB are owned by the Republic Bank Limited of Trinidad and Tobago.
RBTT was just taken over by RBC.
http://www.rbtt.com/applicationloader.asp?app=newsarticles&cmd=view&articleid=638
Is RBL of Trinidad and Tobago the same as RBTT?
If it is, why would RBTT, and by extension RBC, want to divest itself of shares in BNB?
Wasn’t BNB making terrific profits after it was sold to RBTT?
In fact, didn’t it become an overnight sensation?
From which sector is/was BNB generating these humongous profits?
Why does the PM believe that shares in the BNB would even be for sale?
I don’t know how many shares the GOB wants to buy (article says GOB looking to reclaim majority shares) but I think I would like some of the answers to the above questions before I support (or don’t) the GOB buying back shares in the BNB.
Like you I am wondering from where the GOB will be getting the funds … and also what the price per share of such a successful enterprise would be.
I can’t see these shares being sold for chicken feed.
from cbc.bb
“One source revealed however that the Royal Bank of Scotland and Iceland-owned Kaupthing Singer & Friedlander, which together had been in discussion with the developers on loan financing for a major part of the US$200 million project, had been experiencing some challenges as a result of the global economic turmoil, and that might be one of the reasons for the shutdown. ”
Interesting.
We ALL know that it is a WORLDWIDE economic problem, however, I have a problem with those in authority encouraging fellow Bajans to go out and spend their money like there is no tomorrow. This is VERY irresponsible. I also have a problem with those in authority lying (forget the euphemism) about the state of the key engine of the economy – tourism, telling the public that numbers are only down by 4% compared to 2008. This is what is referred to as cooking of the numbers. There is NO HOTEL that has fallen off by >10%, as a matter of fact on average the numbers in the hotel sector are down by 30-40% across the board – and the only reasons why these numbers are no worse is because most of the tourist that are here booked 8-12 months ago and they would be penalised if they were to cancel at the last minute. The summer looks bleak, there are few hotel bookings after April 2009. It must also be noted that for the tourist that are here the average spend is down by 40% – i.e. the tourist are buying a cheaper bottle of wine with their dinner, they are less likely to go on a catamaran, submarine or island safari tour.
I AM CERTAINLY NOT happy to report this state of affairs like some are suggesting; however, I do believe that the public should be fully aware of what is happening out there. For Christ sake belt tightening should be the order of the day for ALL Bajans – we must put off that cruise this year or that trip to Europe or buying the car of our dreams or building that house in the heights/ terraces or sending our kid to that Ivy League university. These are by no means a must in that there are alternatives that are likely to cost us a lot less.
Government in the generic sense – not referring to a BLP or DLP administration – has a vested interest to keep us living beyond our means in that if we collectively tightened our belts Government’s tax revenue – especially VAT and import duties – will take a serious blow.
I must also note that my predictions in a previous post were based on the fact that we are likely to see a significant fall of in other areas of our economy such as construction, manufacturing, off-shore financial, sports tourism, crop-over, and music and entertainment industry.
We Bajans have been traditionally a very parsimonious people where we hardly spent a bad cent. We need to return to those days of yesteryear if we going to successfully survive the economic tsunami that is heading our way. Those who continue to live as though there is no tomorrow is going to pay in a way that could lead to the economic ruin to you and your most loved ones.
Sorry for the repost, just getting accustomed to the new config.
See what I mean?
Gloom and Doom!
The summer is bleak for EVERY tourism destination around the world. But, we can promote our little rocks (the Caribbean) and encourage the people who WILL travel to come here.
I agree that we in Barbados live too ‘high on the hog’ In fact I believe we are gettign just like the execs on Wall Street.
Please! you pay people top dollar to work on a construction project and you give them a company car too. No use some of the top dollar to go buy a car!!!!
A hotel manager/owner can drive a Toyota/Hyundai/Suzuki, they drive in some cases better than the BMW/Mercedes Benz/Lexus. Cheaper too. Less maintenance costs. Less stress, look at their faces.
We need to re-engineer our thinking. Look at ways to make savings not just in the short term but the long term. People are still booking cruises. Cruise lines program their ship schedules for years not months. The reason is the cruise lines generate their own economies of scale for themselves.
Cost cutting and re-engineering can be applied in all sectors, without human or environmental harm. But you know what? To do so would cause the ‘big shot’ to lose 1% of his income. So her prefers to cut 50% of a ‘small man’s’ income.
Anybody else see the similarity to Wall Street?
Let’s use these blogs to constructively educate not destructively pontificate!!!!
Also interesting is CBC’s description “some challenges”.
Who writes this stuff?
Both banks involved are effectively bust.
… now Cinnamon says it is starting back in a week. The ad for the Quantity Surveyor remains in the paper of today.
They say they stopped to conduct a strategic review.
Couldn’t this have been done while the project was ongoing, or indeed, was it since they are starting back in a week.
I am left wondering whether Cinnamon extracted some concession out of Government and if they did what it was.
…. kind of like how employees extract concessions by calling a wildcat strike, …. only with roles reversed.
Why are they trying to get financing from “troubled” Banks?
They need to look elsewhere.
@ John,
An undertaking of this magnitude needs solid financing from private individuals and commercial Banks.
Hopefully they will find a solution.
Government can’t save this project and they probably already gave all the concessions available under the laws of Barbados.
Agree. Barbados NEEDS this project to succeed.
This project probably typifies everything which has been going wrong with our tourism development.
Only 6 weeks ago Cinnamon 88 were ststing 20/29 villas were sold.
But now they stop work for a re-assessment!
They have from the outset rode roughshod over our planning, employment and environmental regulations.
Made a fool of any government or union attempts to enforce proper practice.
And now we have the new administration attempting to accommodate them even further.
Let’s get real. These multi-million condominium/villa developments are destined to be white elephants in the new economic reality unfolding.
These previously arrogant developers should not expect a bail-out from the people they previously summarily dismissed.
Property speculation is a risky two-way street, if you win its very big, if you bet wrong there is always someone ready to pay to pick up the pieces, and it should never be the taxpayer.
Paradise could never end right ’cause it start wrong.
@ Straight talk
There is another problem.
The value of the Villas were probably based on the Real Estate market a year ago.
Unless Barbados is different from most other countries property values should drop 20 to 40 %..
Then the profitability of a new hotel might take a longer time than expected.
I am just a layman “with rumshop talk” so others may have a better take on how things really are.
I am still hoping that the project starts up soon so those 800 workers can get back to work.
Hants:
I know you mean well, and you wish the very best for us, but just once in a while a dose of reality does bring people to their senses and bring about solutions to problems previously ignored.
The sky really is falling this time round, and no amount of comforting platitudes will help when the unprepared confront the inevitable.
This revaluation is only in its infancy.
The majority of financial institutions with any exposure to derivatives face an yawning chasm of US$170 trillion of improperly secured debt.
People should know the truth, if only to minimise their own liability, and help them plan.
Lying to protect the very system that got us into this mess is no longer an option.
Give us the awful truth and we will deal with it.
Keep on lying and we will deal with you
@ Straight talk
I expect to see a scaled down version of the project.
We will know in a couple weeks.
I hope that now Four Seasons Hotel has been bailed out that Thompson included a clause in his bailout contract-that no Guyanese are to be employed on that project. Employment should be for Bajans in these tough times.
You wrote “you pay people top dollar to work on a construction project and you give them a company car too. ”
Exactly.
And the Four Seasons project is on one of the best served bus routes in Barbados.
Why can’t the “executives” catch the bus?
The problem is that every two bit so called executive thinks that he “deserves” a company car. And executives of small companies (globally speaking) think that they deserve a jet.
I surprised that none of the executives have yet demanded the keys to the kingdom of heaven as part of their “compensation package”
Stupseeeee!!!!!!!!!!!!!!!!!
Too many people too full of themselves.
Has Four Seasons been bailed out?
When?
By whom?
How much?
Pure Bajan, why are you targeting just Guyanese? What about all foreign workers including Chinese, Jamaicans, Venezuelans, Englishmen, Vincentians, Austrailians, among others? Woul;d you like the Brittons, the US and other developed countries send Bajans packing because in these hard times the jobs are for their own citizens? Stop being selfish. Everyone has to live. In the good times, these people contributed to your countires economy, now you want them out. Do you know how many businesses are owned by these various nationalities that employ Bajans? I trust that Guyanese people do not meet out the same inhumane treatment to Bajans when the scales tilt on the other side! Remember the world is round – each of us have our turns. It may not be you, but your son, daughter or grandchild going to another country for employment.
What about the Chinese? The Guyanese are our brothers and sisters while the Chinese are our distant cousins.
How could the previous Government have bankrupted the country when the reason that the country is capable of staying economically afloat at this time is primarily as a direct result of the sound macro economic policies pursued by the BLP?
Had it not been for the $2.6 billion in foreign reserves left by the BLP, this country would have been on the economic brink by now.
Ask yourself. Could a country be bankrupt yet its Finance Minister can find $20 million to give to the Barbados Turf Club as a tax right off? DLP Parliamentarians have all purchased big rides – Benz, Jaguar and the likes in just one year of being in office.
Our country is Bankrupt yet within twenty four hours of the Government of Trinidad taking over the assets of Clico the Barbados Government can roll out more than $10 million (unsecured if you please) to prop up Clico Bds. Even though the head of Clico has said that he did not ask for any assistance from Government.
This country is bankrupt yet every weekend this DLP Government can host big parties at Alaro Court fully paid for by the taxpayers. This country is bankrupt and your Government can now be looking to fork out over $400.000 million to throw in the hands of their lackeys on the Constituency Councils to advance the DLP’s “Fatted Calf” programme.
Pat, I encourage you don’t believe the nonsense you hear in the dark. Look around and see for yourself.
Folks, as fas as we’ve been informed, this project hit a temporary “bump” but will keep going on as most of the expensive villas have been already sold (US$20MM for the beachside ones and US$11MM for the second row ones!!) there is a complete change on the project management team and another company from UK is taking over to finalize it, bids for the centarl core building (hotel rooms) are out and deadlines have been set….
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It is interesting to note that up to this day, management has not said one word in english to any of the displaced workers on the status of this project. We have been treated with the utmost degree of disrespect and disregard. May God help them all.
Elise:
Forget Four Seasons.
The banks gone bust.
The managers gone home.
The rest is swept under the carpet for now.
As someone that loved this beach when it was Cunard’s Paradise Beach Club, I am most anxious to know. Has ANY further building been done at the Four Seasons since last February? Or is the site just abandoned?