You can now listen to Antigua News articles!
The tension between the Antiguan and Barbudan government and Sandals Grande Antigua has escalated to a fever pitch.
Prime Minister Gaston Browne, undeterred and resolute, has started discussions with CARICOM to comment on what he characterizes as “malpractices” involving the Sandals resort chain.
Browne tells Antigua.news that he has engaged in discussions with regional leaders to bring this pressing issue to the forefront of the CARICOM agenda.
His intention is not just to highlight these concerns but to rally collective action against the resort chain, underscoring the need for a united front among Caribbean nations when dealing with such significant matters involving major stakeholders in the tourism sector.
The ABLP government, according to PM Browne is firmly committed to advocating for a more equitable framework that benefits all stakeholders involved, including staff and other local citizens and residents, businesses, and governmental entities.
He articulated his determination to fight “tooth and nail” against Sandals, emphasizing that the government will not back down until satisfactory resolutions are achieved that hold the resort chain accountable.
This arises in the wake of a serious issue flagged by assessments from the Inland Revenue Department, which alleges that Sandals owes an estimated EC $27 million in back taxes.
The Prime Minister contends that instead of addressing this obligation, the resort has opted to engage in legal manoeuvres in an attempt to frustrate the process.
The situation escalated last week when the Antiguan government made the pivotal decision to terminate an agreement that previously allowed Sandals to deduct certain marketing expenses from the room price, and to pay the ABST on the bet amount, as a concession. However, the government observed that no specific Antigua Sandals ads were promoted.
This move signifies a stark shift in the government’s stance toward the resort and brings to light the complexities involved in negotiations with large entities in the tourism sector, where local economies are highly dependent on their operations.
As the disagreement intensifies, it has transformed into a legal battle, with Sandals weeks ago taking the dispute to the court.
PM Browne indicated Sandals is the party that took this matter public instead of negotiating an amicable settlement.
This development raises questions about the longer-term implications for the tourism industry in Antigua and Barbuda, as well as the potential precedent it could set for future dealings with significant players in the local economy.
Prime Minister Browne expressed his willingness to maintain open lines of communication with Sandals, highlighting the importance of dialogue in resolving disputes.
His readiness to engage directly with the resort indicates an understanding that while firm stances are necessary, constructive dialogue may also pave the way for a mutually beneficial resolution.
This ongoing saga not only underscores the complex relationship between government authorities and large corporations but also reflects broader themes of economic fairness, accountability, and the rights of Caribbean nations to assert their interests in a globalized economy.
As this situation unfolds, the eyes of the Caribbean community will undoubtedly be focused on both the actions of the Antiguan government and the responses from Sandals.
“If they want to resolve the issues amicably through dialogue we are available for dialogue to resolve the issue equitably,” he told Antigua.news.
But he said, “the reality is, Sandals is operating like bandits refusing to leave the crumbs on the table for the government and the staff. My government is prepared to fight Sandals tooth and nail until we get a more equitable framework that is fair to all stakeholders”.
“For sure we will be outlawing their no tip policy and hold the companies that own the hotels responsible for the payment of severance and other staff benefits in the event of sale or liquidation.
“In addition, I am dead serious about compulsory acquiring the hotel in the public interest, if they spitefully put the workers out of work by locking down the hotel for any extended period. They closed Sandals in the Bahamas for over six months because the government is seeking to collect over $30M in assessed taxes,” he said.
To address similar issues, Browne announced plans to propose amendments to the Companies Act to protect workers in the event a company goes into liquidation.
He pointed out that Sandals separates the ownership of physical assets from the management entity, Dickenson Bay Management Limited, which employs the staff.
Browne argued that this structure could leave employees without severance compensation if Sandals were to go into liquidation.
Additionally, Browne signaled his intention to introduce legislation preventing hotels from withholding employee tips.
Sandals Grande Antigua has declined to comment on the Prime Minister’s statements.
Good job Prime Minister Brown, St Lucia Prime Minister should do the same because sandals is a crook company