Although Chief Executive Officer of Atlantic Hotels (AHI) Winston Brassington has said that control over hiring for the construction of the Marriott Hotel was a concession to the contractor for a lower cost, this is not reflected in their contract that was made public by the government.
In the wake of criticism of the exclusion of Guyanese workers on the Marriott Hotel construction site in the months since construction began, Brassington recently told the Government Information Agency (GINA) that contractor Shanghai Construction Group (SCG) initially bid US$65M but it was able to lower the cost to US$51M with the condition that it be able to control who they employ on the site.
Shanghai Construction Group indicated that it had examined the level of skills available for the project as well as the levels of productivity, and Brassington noted that while the company was asked to employ locals, it was obvious that if the construction was to be completed within the specified time, it must have the flexibility of the inputs.
Brassington also said that there would be no language barrier issues to contend with as would be the case if the workers were Guyanese. The issue of productivity and communication would be a cause for concern, he told GINA, while also saying the lack of specialised skill needed for the tasks needs to be recognised.
Brassington’s comments have generated a backlash, particularly in the labour fraternity and political parties, who have cited a lack of respect for Guyanese workers and for Guyana’s sovereignty. A number of pickets have also started outside the construction site at Kingston and the opposition parliamentary parties are preparing to mount a series of measures aimed at seeking a reversal of the position taken by AHI and the government with regard to Guyanese workers.
There was a new sub clause addressing foreign staff and labour added to the original contract for the construction of the hotel. It said: “The Contractor may import any personnel who are necessary for the execution of the works.
The Contractor shall provide the Employer with all requisite documentation that will be needed in order for the required visas and work permits…Payroll taxes and NIS will be payable by all employees in accordance with the Laws of Guyana.”
But despite Brassington’s explanations, the Memoran-dum of Understanding (MOU) between Shanghai Construction Group (Trinidad and Tobago) and Atlantic Hotels Inc does not give any indication of a reduction of cost as a result of the use of non-Guyanese labour. It said that SCG had submitted a tender of US$65 million on May 3, 2011 and this tender was considered by AHI to be above budget. The document said that SCG was allowed to submit an alternative design provided that such design met the full requirements of Marriott International design standards.
The MOU said that SCG on May 19, 2011 submitted a revised tender proposal for the design and construction of the hotel at a price of US$51 million. It said that this figure did not include the cost of the Promenade and Boardwalk, certification costs and the costs of PAYE taxes, health charges, NIS contributions, work permits and visa fees required by law. It said that this price of US$51 million was still above the budget of US$41 million and was not fully acceptable to AHI.
The MOU also noted that given the outcome of the revised pricing, AHI was confronted with a shortfall in its financing which was based on revenue projections. It said that increased revenue streams from the introduction of a casino and lower interest rates and more optimal financing terms were identified to bridge the financial gap.
Meanwhile, the Invest-ment Agreement between the Government of Guyana and Atlantic Hotels Inc. said that the entity should create employment for 100 persons “as specified in the business proposal” and that “as far as possible the enterprise should seek to employ citizens of Guyana with the first preference being given to residents in the region where the project is located.” It did not specify whether this was during the construction phase or when the hotel and its connected facilities are in operation.
The agreement between the Government of Guyana and Atlantic Hotels Inc for the establishment of the Marriott Hotel with an entertainment complex inclusive of promenade, casino, nightclub and restaurant, is worded differently with regard to the employment of Guyanese. It said that AHI should endeavour to hire and train local staff of more than 100 persons and provide managerial leadership for the operations of the facility subject to the Marriott associated agreement.
It also said that the developer shall be permitted to employ non-Guyanese personnel in accordance with the terms and conditions of the Marriott Agreements, in the managerial, technical and professional areas and these employees shall be subject to the employment and general laws of Guyana.
