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Anger over workers' pay scheme

A new pay scheme designed to put to pressure on employees at Meyer Travel Agency to match their commission sales with their salary, has invoked the wrath of Bermuda Industrial Union (BIU) President Derrick Burgess.

And the union chief said the pay scheme, which involves employees paying back lost commissions, is an underhanded way of trying to force out its workers.

The Royal Gazette understands that Meyer Travel Agency has started a new scheme that has some of its 40-plus travel agents working to make commissions that cover the cost of a weekly salary. According to the union boss, if they fall short, they must dig deep in their pockets to pay the company back. “They are changing the terms and conditions of employment,” he said. “Now the employees will not get regular paycheques, instead they must work towards commission.”

Mr. Burgess continued: “Let's say they are given a $1,000 paycheque over a period of two weeks. If they make $500 in commission for that period, then the onus is on them to pay back Meyer $500 of lost commission. Anyone can see what management is trying to do. They are trying to push its workers out.”

Mr. Burgess said that with travel not at its peak of late, the employees should be given severance pay for the pay cuts that will be happening.

“If they are going to be making less money, then they are entitled to something,” Mr. Burgess said. “With the downturn in travel, there is no guarantee that they are going to make the commissions.” Last night an employee with the company, who declined to be named, confirmed the new scheme, saying that firm president Henry Hayward was being unfair to its workers.

She noted that there was always a commission programme in place, and agents were guaranteed their commission at the end of the year, but this plan has become more “cut throat”.

“Yes, some of the workers are up in arms,” she said. “Once upon a time I would be guaranteed $1,000 plus my commission per month - but now if I don't do any work, I don't get paid. It wasn't like this before. We're going to be fighting against each other in the workplace to make sales - because our livelihood is on the line.” Mr. Burgess said “regrettably”, the employees at Meyer were not unionised, but he said that he would stay on top of the situation to ensure that the concerned workers are treated fairly. “They are in a situation where they can't do any better,” he said. “I will stay on top of it as much as I can. These people have no recourse, but I am trying to highlight it to the public.” Efforts to contact Mr. Hayward were unsuccessful.