Labour Ministry to meet with Fernandes bakery over closure

The Labour Ministry is to meet this week with Fernandes Guyana Enterprise Inc over its sudden decision to close its bakery operations here.

General Manager of the Suriname-based company, Rogier Simson told the Sunday Stabroek that the closure of Fernandes Guyana Enterprise Inc is still under discussion with various stakeholders. Speaking on Wednesday, Simson explained, “As it currently stands, we unfortunately cannot give too much information as we are currently engaged in various stakeholders. We are still in the phase of hashing that out…it’s very important for us to maintain the confidentiality of our stakeholders before we talk further.”

At a visit to one of DemBakes’ locations on Church Road in Georgetown on Friday, the Sunday Stabroek spoke to an employee who confirmed the bakery’s shutdown, stating, “DemBakes isn’t functional right now,” though no further details were provided on the situation.

Minister of Labour, Joseph Hamilton, also confirmed the Ministry’s awareness of the closure and stated that a meeting with the company’s management is scheduled for this week to discuss the situation further. “Fernandes Guyana Enterprise Inc – received a letter from the company, and the Ministry will meet with the management next (this) week,” Hamilton told the Sunday Stabroek.

Fernandes Guyana Enterprise Inc. had officially informed its employees of the impending closure of its bakery operations, Demerara Bakery Inc., effective November 30, 2024. The company cited a combination of escalating operational costs and a severe shortage of labour as the primary reasons for discontinuing its bakery services.

In a formal notification sent to staff on October 31 and seen by Stabroek News, the company outlined the challenges it has faced, including rising costs of materials, resources, and labour, which have made it increasingly unfeasible to continue operations. The letter, which also included a redundancy notice for affected employees, emphasized that the decision was not taken lightly.

“The rising costs of resources, materials, labor, and operations, compounded by the continuous labor shortage, have made it impossible for the Company to maintain its bakery operations,” the letter stated.

The company has assured that employees affected by the closure will receive redundancy pay as per statutory requirements. These payments will include a month’s salary in lieu of notice, accrued leave days, and a redundancy allowance based on years of service. Redundancy payments will be made in installments, with the residual balance to be paid within seven working days following the bakery’s official closure.

To help with the transition, Fernandes Guyana Enterprise’s Human Resources Department has committed to assisting displaced employees in finding new employment opportunities. The company expressed its gratitude for the employees’ years of service, acknowledging the hardship the closure will bring to many. There has been no information on how many employees are affected.

The business was rebranded as Demerara Bakery in 2018.