Bob Richards On Job Losses
Reacting to the news yesterday of 150 job losses, Shadow Minister of Finance Bob Richards said, “The latest news of job losses in Bermuda forms yet another data point in the declining trend in employment and opportunity available on our island.”
“The Citi Hedge Fund Services’ announcement is evidence that our problems are Bermuda-specific because these job losses are not layoffs as a result of downsizing. The company is not reducing jobs, merely moving them to be more efficient. The job losses to Bermuda are job gains for the United States and Canada.”
“So, let’s be very clear: This is not a global recession issue, it is an issue of Bermuda having become uncompetitive; an observation we have made repeatedly.”
“Moreover, the Bermudians who do not move with the company will face the daunting prospect of searching for a new job in a very difficult environment,” said Mr Richards.
Yesterday Citi Hedge Fund Services confirmed they will move approximately 100 jobs from Bermuda to North America, with the company citing the need “to consolidate Citi’s support functions, reduce overall expenses and create operating efficiencies.”
In addition, Willowbank Hotel in Sandys Parish confirmed yesterday that they will be closing its doors after 51 years in business, and 46 employees both part-time and full time will lose their jobs at the end of November 2011.
Mr Richards said, “The Willowbank closure evidences well-known structural problems in our tourism hospitality sector – from marketing and pricing to investment value. It is a very sad conclusion to an old and familiar landmark.”
“Meanwhile, the Government will have dwindling resources to assist the growing numbers of Bermudians out of work because of reckless spending when the economy was buoyant.”
“Central to the OBA’s plan to get Bermuda working again is to make it more competitive. One aspect of the plan targets rules and bureaucracy that have made us increasingly uncompetitive in the international market place.”
“The transfer of jobs from Bermuda to the States by Citi Fund simply underlines the critical need for these reforms to begin yesterday,” concluded Mr Richards.
On a serious note, I think Bobby thnks Bermudians are dumb or something. Citi Group is not moving all the jobs t othe US and Canada. Only a few jobs are being offered over seas in order to show good faith. Bobby, go back and read up on the story again mate. Aren’t you the shadow Finance Minister anyway? Why are you talking about an issue that should be addresed by another shadow minister?
You are PLP in panic mode. PLP time would be better spent trying to right the wrongs they have done to our brothers and sistaas.
Actually, no i’m not. I just see his view as the OBA in hunt and kill mode. He discredits the OBA by making un-sound statements.
You would do well not to attack the messenger….and wake up to the fact that Bermuda is dying. Every year for the past 4 years less and less people are working in Bermuda and less and less Bermudians are working in Bermuda. Put down your crack pipe, wake up and do something to turn this thing around!!
That is my problem with the oba. They are like chicken little, the skynis always falling. The issue that because ofnthe cost ofmliving in Bermuda it is cost effective formthose jobs to be stateside. With the tax haven getting ready to be an electioneering platform the companies knows that the loop holes will be closed sooner than later!
Another PLP in panic mode. Put down the koolaid, get off your high and try to bring back hope to our children, many of which have been institutionalized by the PLP into a state of permanent underclass. You should be ashamed! No wonder IB is leaving Bermuda!
Sad thing is, right now, the sky actually is falling
Fact of the matter is that it is VERY expensive to do business in Bermuda. Folks, read page 29 of todays paper and lets have a meaningful discussion about this.
CEOs of Catlin and Hiscox have stated that it is expensive to do business here. Hiscox CEO Charles Dupplin stated:
“When you take on a junior accountant, it’s much more expensive to do it here, than in London, and more expensive again than Lisbon, where we also have an office,” Mr Dupplin said. “Bermuda is three to four times more expensive than Lisbon.”
He conceded that “if a loaf of bread costs $7 in A1 and 59p in Tesco’s in London, then of course, you have to pay people differently”
He added: “The cost of employing people here makes it difficult for me to justify to my own board, if we needed ten more staff, that they should be taken on in Bermuda.”
Like most businesses, the bottom line is cost. So what can be done to drive down costs?? Have greedy landlords lower their rents?? Nope, according to some people need high rents to pay mortgages.
ask Grocers to lower profits to make groceries cheaper? Nope that will never happen…
The Bermudians people/businesses who are exploiting IB to make a profit, play a role making IB leave.
Its much easier to blame immigration policies and Government, but yet I guarantee people will overlook what these CEOs are saying and but the blame on Government. The cost of living here is not just too high for locals but for particular expats and who is to blame for that?
SO, we do nothing? Let the market naturally re-adjust and people (Bermudians) suffer in the interim?
OK, got it.
The purpose of my post was to sow that there are other factors at work that do not make bermuda an attactive place to do business not just ‘term limits’.. As many seem to believe.
Businesses and local people really need to re-evaluate strategy.. i.e. Decrease their profit margins to cut down on costs..
Will Marketplace suffer if the decrease their profit margins slightly? Will landlords who own their homes mortgage free lower rents to make things more affordable for EVERYONE, not just Bermudians? Its sacrifices like that people need to start thinking about.
My question to him is, Why did you come to Bermuda in the first place? You have made a lot of money being here and Bermuda did not get expensive over night nor did it get expensive since 1998. That CEO is talking about the cost to hiring, but what is his annual take and possible bonuses. Bottom Line is they just don’t want to hire. So save us the BS.
I agree with Jus’Askin’
All these CEO’s are soaking their companies with fat salaries and profits and blaming the Bermuda’s high cost to work and live here.
It may be cheaper to buy a loaf a bread in UK but there are taxes on salaries over there.
It’s sort of irrelevant, really. The ex-Citi employee on the radio said that this is a direct result of government attitudes to permits, ex-pats and IB in general.
The real question you should ask, is when are the PLP going to take their heads out of the sand and act. Our rudderless ship, our leaderless island is sinking fast and all we gt is Minister Wilson making beds at The Fairmont and “consulting” with the recently redundant. It’s not action.
Minister Minors – apologies. Either way, it’s an empty gesture and solves nothing.
??? Yes, the jobs are being moved. The Bermudians who hold those jobs are not.
Mr. Richards,
Your point may be valid however, you seem to make to want to make the people believe that if the UBP/OBA was in power, this would never happen?
The uncompetitive price structure in Bermuda didn’t come from specific policies, it comes from the fact of our location. Rents and wages are high, electricity and other items cost a fortune. Your answer seems to be “get rid of term limits” and this will stop. That is not true and you know that is the case.
Bob, instead of using events to place blame, how about you propose solutions that may actually change the game, unless your only solution is abolish term limits, which will not solve the problem.
This
No, however, what you can do is change the environment for things you can control such as, er let me see, residency, property purchasing, permits etc. You need to make it attractive.
I think if the UBP/OBA was in power, yes alot of what we are now seeing wouldn’t be happening. The PLP have spent so much money and expanded their workforce so greatly, they have to raise taxes just to keep afloat. This gets passed on in many ways and when it adds to increases operating costs for companies.
Also the PLP is very devisive and “anti white” “anti foreign” when you judge them by their statements and actions, these companies are hardly likely to feel welcome as a result.
The cost of doing business here is expensive.. point blank, 2 CEOs have stated this in todays paper. It is cheaper to hire persons and work in other jurisdictions than in Bermuda due to high costs. Rental and wages to be on pace with the high cost of living play a big role.
One CEO even used a comparison of bread prices between A1s and Tesco in London.
Why are you people ignoring this? Why are you not on businees owners and landlords to slightly decrease their profits/rents to make things a bit less expensive for IB employees?
taxes and taxes. Goverment sets the price, everyone else adjusts to suit. Will government reduce ARV’s etc? Problem is they spent money like drunken sailors when they inherited the nest egg the UBP left them with, now the bottle is drying up, no more kitty to raid. Will they cut their salaries, get rid of the dozen shiney blue cars lined outside of parliament?
BS, if that was the case why are so many people buying online and shipping items here rather than buying them in our stores. retail sales have plummeted but online sales keep increasing, store markups are disguisting.
You actually think if Govt reduced ARVs landlords would reduce their rents?? LOL
that’s the point, rents are so high, salaries high, taxes high, hence markup is high!
If Govt reduced taxes, then with some breathing room, business could then compete better with lower pricing. In doing so they could sell more product with the same profit and therefore make larger revenues.
Johnny you are so right – under a previous govt. we focused on IB and it worked and life was good for all. This drove up the cost of everything including wages and now that the world has changed we are left with a system noone can afford. as bad as these announced job loses are they are only the tip of the iceberg. How will we able to readjust our lifestyles and expectations after so many years of excesses. This is the question that must be answered. we have been living well beyond our needs and now that life style is no longer sustainable. as an example how many of us have a TV in almost every room? The average home has at least 3. Nobody needs three but we could afford it so we did and now we can’t afford it. Life as we knew it has changed and the sooner we accept that it will never be like it was the sooner we will be able to find solutions.
This recession will be medicine to cure a few of our ills. We will now know that Bermuda is not another world but totally intertwined with the rest of the world,
This entitlement mentality, that says some how, someone owes us a job, if for no good reason, just because we are Bermudian. I know that this is what the Government have been preaching for many years but they have lied to you, you should only get a job if you are the right one for it, whether you are a Bermudian or a foreigner.
Spending and saving habits will change. For years, we have lived beyond our means, spending more than we make and not saving a penny. The recession would not feel be so bad so soon if most of us had a years salary saved up to tap into. Unfortunately some of us are still in denial and have not changed our spending habits, just because we still have a job.
I am here to tell you all that you need to pay attention, because if history was to repeat itself and it usually does, we may be in for far worst than what we are seeing now. America is in a very similar situation as it was in, prior to the Great Depression. Around that time, the wealth of America was concentrated at the top and in the same or similar proportions. The top 1% owned and now owned 25% of the wealth and the top 25% owns 85 % of the wealth. So if they were to sink into another depression, were do you think that would leave those of us, who thinks our jobs are safe. Even if a second depression did not transpire, a double dip recession in America will send us in a tail spin.
The next to be fixed it this bad attitude, which is driven by the sense of entitlement. Those of us in the service industries that can’t change that rude behavior, will be weeded out. It just sickens me, when you enter an establishment, where they are supposed to be serving you with a smile and all you get is someone with an attitude, acting like they are doing you a favor. Those folks will not fare well in the new Bermuda to come.
The longer we take to change, the longer the recession will last. Right now the politicians are digging their heads deeper in the sand and not facing reality. Why do I say that, I say that because they are doing the total opposite, of what they should be doing. Instead of forcing employers to hire incompetent people, they need to open the market right up, which will force us to be the best we can be. Right now, a lot us cannot compete on the world stage, which is what we will need to be able to do, if we are to survive in the new Bermuda. They need to tell us that SOME of us, have not been good at what we do and have not been doing our best and if we are to make it in the new Bermuda, there are a lot of changes that we most make to our personal and professional lives.
I say, stop lying to the people, it will only make the medicine harder to take and prolong the ailment. I have no doubt that we will change but if we and the Government refuse to proactively change, then the market forces will effect changes like you never see them before and it will be on it’s terms, not yours.
Also, don’t let anyone fool you as to why all this is happening. While I do believe that we and the Government, have made it harder for ourselves by our wasteful spending habits, this would have hit and all we would be able to do, is to go for the ride. This was precipitated by greedy investors and an deregulated American financial system that allowed greed to reign unchecked. This correction was inevitable because nothing that was happening was sustainable. The right wing extremist would like us to believe that this was all the fault of the poor people living above their means and buying property in an highly inflated market, that was just the symptom, not the disease.
The disease is greed. they would like us to believe that this is capitalism, maybe, but capitalism without socialism is bound to fail. There must be balance and counter balance. Equilibrium is the name of the game in nature and when that’s out of whack, thing fall apart.
Well said. The best I have read for a long time.
Government needs to abandon the term limits NOW! That is NOW, not in six months, and not after pissing about doing a study. Do it NOW – it is within your power. Stop pissing about , get off you collective behinds and DO IT NOW!
Let the world know we are open for business. it is our only hope.
As a Government you are PATHETIC beyond all belief.
For clarification, and in case anyone doesn’t understand, NOW means immediately, straight away, at present. Not tomorrow, not next week, not next year, but NOW.
If further clarification is needed, then you should not be allowed to run a bath let alone a country.
Bob makes some good points, but there are a few factors here at play, cost of doing business in Bermuda and decline in overall revenue I am sure played a large part. What’s done is done by CITI but what is Bermuda going to do? The Government does not seem capable of managing our economic situation effectively at present. Has the PLP put forward any ideas or clear cut plans, or actually acted with regards to improving our environment for IB, lowering the cost of living, tourism and creating new Jobs?? I have not heard anything convincing yet and I do not continue to see any results, policies or strategies. Why? Because they have no clue what they are doing! I just cannot look to the future and say the PLP are the right party to take us into the future. They cannot even run a public transport system effectively. The next election will dictate if this Island has any possible chance to turn itself around or every Bermudian will watch their futures and their children’s futures fall apart. We need strong leadership and intelligent people running the show. The present government is far from that.
The OBA play a big part in lowering the cost of living.. they and their supporters own majority of businesses and properties.
FFS. The old argument. At leats you didn’t call them the 40 thieves.
I did not know the OBA owned businesses as a political party? Maybe they could help the cost of living if they were actually in power and able to make macroeconomic decisions. But that role is currently in the PLP’s hands. Why do things cost so much in Bermuda??? Well Duty on imported goods certainly helps at a consumer level, are there other ways to earn tax $$$, have we controlled inflation effectively over our extensive growth period. Why are greedy landlords not taxed on their rental incomes? It is all well and good asking business owners, but there has to be an economic strategy from the government to facilitate changes to the cost of living. This has to be universal so that the local business environment remains competitive. It would take allot of hard work and clear thinking. But as it stands, with the present government who has been in for 3 + terms now, we are nowhere near achieving a sustainable economic balance going forward.
I should have stated many of their supporters not the OBA, my mistake. I agree with your point that Gov’t should also provide an economic strategy that includes business owners and try to work in synch with each other to lower the cost of living a bit to make the island a bit more attractive for IB to transfer their operations here.
But I will always believe that shareholders play a large role of the big decisions of IB companies not the CEOs and employees that work here. Those shareholders just see financial reports and try to find ways to cut costs/expenditures.
I agree, but unfortunately capitalism is alive and well which means shareholders and businesses are greedy, and the rich stay rich while the middle class and poor will suffer.
It is the system we live in and I don’t see it changing anytime soon, so we have to adapt to make sure we get the most out of it for our people.
When all ya’ll decide to actually listen to Bob, it will be too late. Good luck to you.
This government does not do the “right” thing easily…if they did they would have made changes to term limits and spousal non bermudian homeownership long ago. To change they would have to admit they were wrong in the first place and they just do not do that easily , if at all. everything done by Minister Wilson while perhaps right thinking is too little too late. Citi is moving 105 jobs out of Bermuda out of 230!!! that is hardly “A few” jobs…its almost HALF of their workforce….wake up…the figures this week do not count the departures of people with little or no fanfare…The PLP spend much of their time and efforts pandering to their political base. We are all in the same boat and government is asking everyone to row while they are dragging our anchor….
Problems in BDA are: Employability gap due to poor education, Cost of doing business, 60-40 rule
Jobs in IB require skill and education/degrees that many Bermudians do not have. Education is key and particularly Math and Stats.
Cost of doing business is far too high and hiring an average skilled worker is far too expensive compared to most other places in the world. I could hire a fresh Phd for $80k in most places, while in BDA….well you know!!
60-40: You need to get rid of this, to attract investments coming in.
As i say again, alow Gambling, Developers in the island to start and help us build and bring back our economy, and we have no choice but to go this way. Forget about, this Christanity and people will go in debt, they are going in debt without the gambling. We have several properties just waiting for that moment. Lets go, lets get started, and PLP if you don’t jump to this, OBA will!
I don’t understand why there are so many blind to the fact that Bermuda’s economic crisis keeps getting worse because of Bermudian being replaced with workers coming from third world countries. Some may argue that these people help fuel our economy but this is not so. Instead they are being offered by agreements between landlords and business owners the lower priced apartments that Bermudians struggling with high rent should have. There are apartments that should be for one person but they have five foreign workers living in them making it even less that they have to spend in Bermuda. They don’t spend much on groceries because they take hundreds of fish out of our waters daily no matter if the fish are only a few months old or protected species like angel fish and eat them with rice from their country. This not only is not helping our economy but also ruining our environment. Worst of all almost every cent they make goes back to their country so their families can buy unnecessary things to flaunt. These people are not the poor people you see on T.V. those people do not leave the country and are looked down at by these ones.
Cheech is the funny one you are a dunce…
Steve Martin is a funny guy!
I would not know…
I have a very simple suggestion to make on this issue. Our Government (currently the PLP) should follow the example of the many companies who interview those of their staff members who decide to leave their employment. It’s called an “exit interview”! We should adopt the same policy with those international companies exiting Bermuda. Have someone interview their CEO’s to ask a simple question, “What are the factors that have caused you to decide to leave Bermuda?” This is not a job for the Colonel! Our Government should be listening carefully to these answers and taking whatever action is necessary to stop the outflow.
This task needs to be tackled immediately. In fact the question should be asked of every international company that has left Bermuda, or greatly reduced their staff size in the past 2 years. I suspect that the vast majority of companies have left for exactly the same reasons, and what we need is for our Government, whichever political party is in power, to actually listen and respond – urgently – otherwise it will be too late and our economy will be in freefall.
This suggestion is not intended to paint a negative picture, but rather, to have Government show that they are in tune with the problems facing these international companies and are willing to taken urgent action to get us through these very difficult times.
You can’t help but shake your head at the Johnny Guards of these blogs. They are truly clueless about how the world goes around.
Bermuda competes in the sea that is the rest of the world. Bermuda is not the only isolated settlement in the world. Everyone is part of the price spiral that has gone unchecked for years. The days of getting paid more for less are over. The days of shorter work weeks, & not getting paid for that day off, are here. The exception being if you work for government where the belief is still that money falls from the sky.
The days of multiple trips a year, a new car every few years, the latest cellphone, weekly trips to get the nails done, the latest & biggest home theatre system, children that you know you cannot afford etc. etc. are over. The dream years of Bermudians really believing that they are something special & entitled are over.
Bermuda has never had a high cost of living. Bermudians have a problem with the cost of living high.
Prices have already fallen. The value of real estate has fallen. People are upsidedown in their mortgages. Rents have fallen, especially top & middle markets to what they were 5 years ago. Many places sit empty with owners unable to meet mortgage payments.
Meanwhile we have a PLP Government, largly responsible for this sorry situation, which has no plan, no clue as to what to do.
nail…. hammer….
Clueless??? Obviously you missed the point I am trying make.
If a company could spend $1.5 million on wages and housing allowances in Europe for a staff of 20 why would they want to stay in bermuda if they would have to spend $3 million for the same amount of staff to live and work here?
If you are a major shareholder in that company what would suggest??
That is the point Im trying to make, it has nothing to do about the materialistic habits of SOME Bermudians.
FYI some of us who dont go on trips, dont have children, whom are educated professionals find the cost of living too high, so dont generalize about your experiences of the few… It makes me realize how out of touch with the average person some of you really are.
So Mr Burch, how’s that Term Limit thing working out for ya?
Mr. Richards…you are scoring no political points with the not already OBA converted with your nonsense rhetoric.
He is scoring points. Look at this: over 40 comments so far.
NEWS FLASH ……………. more jobs to go a caseis and up to 250 at HSBC. Bermuda you are now reaping what you sowed and the expats are laughing
Bob Richards is the canary in the mine. Bermudians are basically hard headed people anyway but their butts are soft. Quiet…ssshhhhhh…Can you hear the weaping and moaning??? More of that to come until we bounce the Progressive Loser Party back to the opposition. And this is coming from someone who has never voted for ANY party but PLP in the past (I am soooooo disgusted with these people). They’ll NEVA see another vote from me. Who is wit me on that tip??
@ VoT!!! Um wif you I voted for them three times… They will never ever get my vote again… and I can hardly wait for the day…. Throw them out people, allowing them to lose a few seats but stay in power would really be the death knell for Bermuda! Get Crakin eerybody!
Bob Richards like many if you posters are just a bunch of child minded people who take every opportunity to blame the PLP Government even when it is not a issue where the PLP is a fault. You do it to simple stir the pot in the hopes that people would vote OBA. But guess what? That’s not going to work.
Clearly the CEO’s explanation of what is the cause of this out weighs a employees rant on a talk show. That’s the bottom line, so all your spin is worthless. Instead of feeding off of misfortunes like this why not try to develop a plan of your own and stand by it?
And I am not “PLP in Panic” is that you new line when your empty of points? We are not panicking we are working on helping the people.