BASSETERRE, St. Kitts, August 23, 2010 (PAM Secretariat) - “IT makes me nervous when considering that these workers may find themselves waiting for months and years on end, or possibly waiting in vain for their due severance payments as this Government may not be in the position financially to satisfy,” says Lindsay Grant.
Basseterre, St.Kitts (August 21st 2010):- Scores of workers on the C.A.P Industrial Site will find themselves among the growing numbers of unemployed persons in St.Kitts-Nevis as one of the largest factories on the Industrial Cite closes its doors in a few weeks.
Reed Data Services Ltd (RDS) will discontinue operations in St. Kitts by the end of the fourth quarter of 2010. This announcement was made in a release to the media which indicated that the tasks performed by the local RDS would become redundant as the company plans to transfer this work to a third party vendor. The move will bring an end to the local operations of RDS.
“I am saddened and disheartened by the pending closure of the Reed Data Services as it has provided employment for hundreds of our citizens and has been a major presence on the industrial park for almost 20 years,” said People’s Action Movement Leader Lindsay Grant. “I am further concerned about the scores of people especially poor young single mothers who are going to find themselves out of work facing an ever rising cost of living in these hard-hitting economic times,” the Opposition Party leader continued.
Grant went on to lament the current financial state of affairs of the country which is shouldering a massive $3 billion debt which has precipitated the hasty introduction of a 17% VAT tax on November 1st, the highest rate in the OECS. Considering the dire financial state of the country, he is unconvinced about the government’s ability to satisfy the severance payment requirements of the laid-off workers.
“We all are alarmed by the practically bankrupt state of affairs that this Labour government has led this country into and I am genuinely worried about the ability of our cash-strapped government to pay these workers their well-earned severance,” said the St.Kitts main Opposition Party Leader.
“I have seen so many instances over the past few years where companies and institutions close and workers wait months or years sometimes in vain for severance payments.
Grant made reference to the closure of the Central Marketing Corporation CEMACO which closed it’s doors in 2008 and left almost 50 workers jobless and unable to receive their due severance payments.
“Workers at Cemaco just a few years ago complained bitterly about being unable to collect their due severance payments. I am concerned that the Reed Data workers may find themselves in a similar position. How will these workers facing increased hardships possibly endure as they struggle to put food on the table with no job, a 17% VAT and quite possibly no severance payment?” Grant Continued.
The Severance Payment Fund was established by the Rt. Hon. Dr. Sir Kennedy Alphonse Simmonds-led PAM administration to compensate laid-off workers, mainly young poor women on the Industrial Site who were often single mothers and the bread winners of their family. The abrupt closure of the Curtis Mathis factory in the late 70’s under the then Labour administration, left hundreds of workers jobless. This inspired Sir Kennedy Simmonds and the People’s Action Movement administration after taking office in 1980, to establish the severance payment fund under the Protection of Employment act, a thoughtful and visionary decision that has positively impacted thousands up to this present day.
