The government is reviewing a proposal that would pay former City Market workers 50 percent of the benefits owed to them.
Labour and National Insurance Minister Shane Gibson confirmed outside the weekly cabinet meeting that a proposal was sent to his office from former employees.
However, a decision has not been made on the matter.
“They had sent us a proposal where they had asked us to look at paying out a portion of their benefits. I think it was somewhere in the neighborhood of 50 percent. We have not made a decision on that,” he shared.
While a decision on the matter has not been made, Gibson admitted that it would put the government in a “difficult” position.
“I don’t know if we should begin to set a precedent where we just decide to take on the responsibilities of the private sector in that way. So even though the decision hasn’t been made yet, that’s going to be a difficult one based on their requests,” he said.
“If we agree to this, essentially what you will be doing is taking on the responsibility of the former company who terminated their services.”
Just last month, more than two dozen former City Market employees protested outside of the House of Assembly over unpaid severance and pension funds.
Wanslaw Turnquest, a spokesperson for the employees, made the same request outside the House last year when he and around 30 workers confronted Gibson and Prime Minister Perry Christie.
At the time, the prime minister said he would do whatever is necessary to resolve the matter and if necessary would meet with Attorney General Allyson Maynard-Gibson to figure out a possible legal solution.
Guardian Business understands that $1.4 million was offered to the group of employees, but that offer was declined.
Turnquest said hundreds of former City Market employees are owed in excess of $3 million in severance pay alone, of which “one penny has not been paid”.
“The pension matter is a whole different situation,” he said. “The pension money should have been there the minute the company closed down. The Winn Dixie (the chain’s original owners) retirement account – that money should not have been touched. That money under law could not have been touched and now that account is empty. What happened to the money?”
In the past, Mark Finlayson, president of Bahamas Supermarkets Limited (BSL), said that former employees of City Market would receive severance pay once the Super Value deal was finalized, which was completed in June 2012.
Finlayson had insisted that BSL is not only working hard to ensure that the employees get their severance pay, but is also focused on trying to keep them employed.
As the severance scandal continues, government is attempting to introduce new legislation that would regulate and demand standards for pension funds.
By Scieska Adderley
Guardian Business Reporter