A stark divergence has emerged within Jamaica’s business community regarding the traditional Christmas bonus payments to employees, following the devastating impact of Hurricane Melissa. While major corporations maintain their bonus programs, numerous small and medium-sized enterprises (SMEs) are withholding these year-end payments due to severe financial strain caused by the Category 5 storm.
Garnett Reid, President of the Small Business Association of Jamaica (SBAJ), revealed that many member companies, including those in Kingston far from the storm’s direct path, have suffered sales declines of 20-30%. This economic pressure has forced them to cancel both cash bonuses and holiday festivities. Reid, who also owns Rent-A-Car Caribbean & Tours Limited, stated his own company would not issue bonuses after experiencing a 30% sales drop and numerous service cancellations as customers prioritize rebuilding efforts.
The challenges for SMEs are further compounded by an impending 7% electricity rate hike from Jamaica Public Service Company (JPS). This increase, resulting from Hurricane Melissa’s disruption to natural gas supplies and a 30% reduction in electricity sales, will significantly impact operational costs for businesses dependent on power for machinery, refrigeration, and computing.
Contrasting this outlook, several larger enterprises confirmed their commitment to maintaining performance-based bonus schemes. Red Stripe’s Head of Human Resource Management, Judon Bowen, emphasized their reward framework remains operational, with bonuses tied to individual and company performance targets. The brewery has additionally provided hurricane relief support to affected employees.
Similar commitments came from Fontana Pharmacy (contingent on final sales figures), Auto Channel Limited, and CSL Auto Sales Limited, whose directors noted their staff would receive bonuses alongside special hurricane relief efforts. Moon Palace Jamaica also confirmed bonus payments and traditional Christmas packages for employees.
This division highlights the uneven economic recovery across business sectors following natural disasters, with larger corporations demonstrating greater resilience while smaller businesses face existential challenges that force difficult decisions regarding employee compensation.