Statement on Condo Housekeepers

Statement made at the 25 October Press Briefing

By the Hon. Kurt Tibbetts, Leader of Government Business

Government Reinstates Prohibition on Janitorial Firms Providing Housekeeping Services to Tourism Properties and Some Staff Rehired

As the public will be aware, last month the Government was advised of allegations of staff layoffs and regulatory breaches at two local condominiums along Seven Mile Beach. The Government met with the affected employees on 14th September and received rather serious reports.

Consequently, on 17th September the Government commenced an investigation to determine whether any breaches of law occurred at Regal Beach Condominiums and Lacovia as alleged and secondly who authorised a change in policy in respect to the prohibition on janitorial firms providing housekeeping services at tourism properties.

In respect to the first matter, a joint task force representing the Department of Employment Relations, Department of Tourism, the National Pensions Office and the Health Insurance Commission conducted onsite investigations at the two properties. The investigations are ongoing and evidence has been submitted by regulators to the Legal Department for its consideration as to whether any laws were breached.

As to the second matter of who authorised a change in government policy, the Government has been advised that the Trade and Business Licensing Board had removed restrictions which barred janitorial firms from providing janitorial, house-keeping and related services to hotels, condominiums or tourists accommodations in the Islands. Cabinet was not consulted in the matter prior to the decision being taken. However, Cabinet has since consulted the Board and drafted directions which clearly restate its policy.

As a policy, the Government will not allow the outsourcing of housekeeping jobs to occur where we have willing and capable Caymanians doing these jobs. To that end, Directions are currently being drafted and will be issued to the Trade and Business Licensing Board to re-instate restrictions which prevented the outsourcing of housekeeping jobs in tourism properties.

This month, the Ministries of Tourism and Employment Relations have held discussions with representatives of both properties to advise them of the Government's position and to invite them to voluntarily revisit their earlier decisions to layoff staff. On 15th October, the Ministers of Tourism and Employment Relations also met with the staff of the two properties to apprise them of developments in the matter and to invite their feedback as to their future employment aims. The Government undertook to work with the Cayman Islands Tourism Association and other private sector representatives to facilitate their re-employment.

Yesterday, 24th October 2007, the Government was advised that Regal Beach Condominiums has reversed its decision to layoff housekeeping staff. Already two Caymanian employees have reportedly been rehired and there may be additional hires. The second property has not provided an update on its position. Also, as a result of the investigations, staff who were owed overtime have since obtained restitution as ordered by the Department of Employment Relations.

The Government recognizes that it owes a duty of care to those Caymanians who have dedicated their careers to serving in the tourism sector. We understand that when they do their jobs faithfully, we owe it to them to do our jobs in ensuring that they continue to have an opportunity to earn a living in this growing sector. We are also aware of the competitive pressures all businesses face and we are equally committed to working with them to achieve business objectives in a sustainable manner which protects the economic, social and environmental welfare of these islands.

However, we cannot and will not allow the most vulnerable employees to fall victim to corporate philosophies which are short sighted and ultimately jeopardise the very bottom line they seek to enhance. We wish to acknowledge the voluntary actions of Regal Beach Condominiums to reverse their decision and to begin to rehire some staff members. We are prepared to take action where compliance to policy cannot be achieved through voluntary terms. Directions will be issued to the Trade and Business Licensing Board to re-instate longstanding policies prohibiting outsourcing of housekeeping jobs at tourism properties to janitorial firms.