On Friday's newscast we told you about how the Papaya Export Company, Fruta Bomba, which is based in San Joaquin, Corozal, sent home 123 employees - half it staff in one day. The company is closing down it's Belize Operation because it's no longer profitable to for exporters to do business here.
Now, mass lay-offs are never pleasant for the employer and the employees who have dedicated their lives to a company, which in this instance, has been operating in Belize for 22 years. But, it's happening right now in Deputy Prime Minister Gaspar Vega's back yard, both as the Minister of Agriculture, and in the north, where he's viewed as the Ruling UDP Government's commander.
So, today, while we had the opportunity, we asked him to comment on the situation. As viewers will remember, inside information to 7News is that a contributing factor to the company's decision to pull out was the trade difficulties it was having with this Government Administration. We asked the Deputy Prime Minister about that, and here's what he had to say:
Daniel Ortiz
"What's your perspective on why the papaya company and the fruit packers are closing?"
Hon. Gaspar Vega, Minister of Agriculture
"I think they've been having some serious challenges. Since Hurricane Dean, I don't think they have been able to recuperate from that huge loss that they had at that time and it's not only them. We had other papaya groups in Blue Creek and in Shipyard and after that hurricane they tried and tried and eventually they got out of the business. Because it's a delicate business and yes we have one of the best papayas in the region, but it's too delicate and they haven't been able to withstand the losses that they had. As you may have heard, they have lost something like 15 million dollars and anybody would closed down if they can't get out of that deep hole."
Daniel Ortiz
"Wasn't there a specific issue with the government red taped the trade issues that they had to deal with? Wasn't that a contributing factor as to why the company was having some of the difficulties, specifically with your administration?"
Hon. Gaspar Vega, Minister of Agriculture
"I don't think so you know. At one time they had some claims that they were having difficulty with the permits for wells. Like we all know, if we make it too easy the same public criticize us. So, again, it's a balancing act. I don't think it was that difficult. We tried to facilitate and that's the only thing that I can recall of and I don't think the government at any one time was unfair to them. I don't know if we have the ability to just bring back another papaya plant or industry. Because as we all know one of the reasons why the people are leaving is because they are going to neighboring Guatemala where the labor is so much cheaper than here. That is one of our constant challenges with manufacturers in Belize, that our labor is a bit high, but we have to live with that."
Reporter
"The employees, workers who have been laid off, 123 went on Friday."
Hon. Gaspar Vega, Minister of Agriculture
"We are hoping that since the sugar crop is on right now that they would be able to get some employment from there, because most of them are laborers. For the long term we are hoping that they would be able to get stabilize in the sugar industry."
The Ministry of Labour has reported that it is giving advice to a number of the former Fruta Bomba employees. The Ministry is working closely with the Management to ensure that all legal requirements under redundancy is met, while making sure that the employees are paid their due wages and benefits.
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