Government Loan Demonstrates Commitment

Unprecedented times often call for unprecedented measures. The recent announcement by the
Minister of Finance regarding the Government providing loans to former Fairmont Southampton
employees once again demonstrates this Government’s ability to be adaptable, innovative and
progressive during these challenging economic times.

It is disappointing that Gencom, the owners of the landmark hotel, missed their payment
deadline leaving over 700 workers not only unemployed but consequently without proper
compensation. Whilst some may argue this matter should be left between the employer and
employees, upon hearing of the unique circumstances this Government could not, in good
conscience, stay silent, and therefore felt a responsibility to act.

It would be unsettling for this Government to watch this matter drawn out through arbitration,
legal proceedings and the like, for weeks and months while many of these employees have
healthcare costs, families to feed, and other obligations to meet today. Therefore, just as we did
with the Unemployment Benefit, amendments to the National Pension Scheme Act, and the
purchase of the claims of local subcontractors at Morgan’s Point this Government heard the call
of Bermudians and swiftly introduced measures to assist them in their time of need.
Our recent campaign and election victory were centered on a promise to keep Bermudians at
heart and that is exactly what we are doing.

Governing is about priorities and this Government will always put the people first. The workers
at Fairmont Southampton did nothing wrong and are to be commended for their years of service
and exemplary contribution to Bermuda’s tourism product.They are honest, hardworking people
who in the wake of being advised of their redundancy did not deserve to then have to ask,
march, and protest to receive their just compensation.

In December 2019, like many Bermudians, I was pleased to hear of Gencom’s acquisition of the
Fairmont Southampton and their commitment to a significant investment in the property. I further
understood the likelihood of redundancies given their plan to close the hotel to complete the
renovations but what is concerning is how Gencom, a company that completed over $7billion of
real estate transactions, had the financing to acquire the property and committed to invest into
the property could fail to meet its obligation to the people.

It is critical the public understands the mentioned interest free loans were disbursed equal to
amounts due to the employees and now having received the Government loans the employees
are required to make repayments to the Government once sums are paid by Gencom. It is also


important to note that this Government will continue to exhaust its measures and take the
necessary steps to ensure Gencom’s current obligation to employees are given the appropriate

Redundancies are extremely difficult for both the individuals and their families which is why I’m
proud of how quickly the Government worked to ensure the Fairmont Southampton employees
were paid as we are committed to protecting and upholding the rights of all the workers of

This Government has the challenge of maintaining fiscal prudence while ensuring our citizens
do not go without. Our Premier has stated that under his watch, no one will go hungry. We
realize that these loans, like all loans, come with inherent risks, but our Finance Minister has
constructed a deal to ensure the Government is repaid; and if not, other remedies will be
sought. At this time, however, it was the view of the Government that these workers be paid as
they have largely been without any income since March of this year. A government must have
financial responsibility as well as social responsibility, and I am confident we will achieve the
balance required for the betterment of Bermuda.

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Jache Adams
Constituency 19 - Pembroke West
Progressive Labour Party