It is that time of year when many Jamaicans are hoping to receive extra cash on their December salaries in the form of a Christmas gift from employers. However, in the wake of destructive Hurricane Melissa, businesses are divided over the ‘bonus’ cash payments to staff this year.

Garnett Reid, president of the Small Business Association of Jamaica (SBAJ), told Observer Online that several member companies, including those in Kingston, have experienced a decline in sales following the Category 5 storm and have therefore opted not to pay Christmas bonuses or host holiday festivities for staff.

“The few small business operators that I speak with, they’re not paying out any bonus and they’re not having any parties. Because of Hurricane Melissa, they have to be rebuilding,” Reid said.

“Although the storm hit the west, it affected Kingston business people as well… there is a drop in sales by about 30-20 per cent,” he continued, adding “A number of businesses are not going to have a Merry Christmas; they’re either going to operate at a loss or break even because of Hurricane Melissa and therefore, it would be unreasonable for an employee to ask for a bonus at this time because we’re just not making any money.”

Reid, who is also the owner of Kingston-based Rent-A-Car Caribbean & Tours Limited, shared that he will not be making the extra cash payment to his staff this year, citing a significant drop in sales following the hurricane.

“My company, I’m not giving any bonus. My sales dropped by 30 per cent. We’re not doing any business at all. I am a car dealer. I provide transportation for the tourism and the taxi industry. I have several cancellations and when I asked why, they said that they are rebuilding their house first. We are in a crisis and it needs to be fixed,” he added.

While acknowledging that some large companies may be better positioned to absorb the impact of the hurricane, Reid said this is not the case for micro, small and medium-sized enterprises.

“They’re either going to operate at a loss or break even because of Hurricane Melissa and therefore it would be unreasonable for an employee to ask for a bonus at this time because we’re just not making any money,” he reiterated. “The impact of Hurricane Melissa is here and it’s here and alive and well. Some big businesses will do better, but the micro, small, and double small, it’s just going to break even. Hope to pay their bills.”

Reid also noted that the challenges facing small businesses will be further compounded by the pending seven per cent increase in electricity bills from the Jamaica Public Service Company (JPS).

“Small and medium-sized enterprises will be hurt by the electricity seven per cent interest rate. Electricity is one of the biggest inputs in operating a business. You’re going to need electricity for machinery, refrigerators, stoves, food, computers, and the list goes on. This seven per cent will have a great impact on the small and medium-sized enterprises,” he said.

Customers are expected to see the electricity cost increase reflected in their December bills. The rise stems from higher generation costs after Hurricane Melissa disrupted the natural gas supply, forcing JPS to rely on more expensive fuel. The hurricane also reduced electricity sales by approximately 30 per cent, further driving up Fuel and Independent Power Producer (IPP) charges.

Meanwhile, Krystel Robinson, manager of Crystal Vehicle Sales Limited, a used-car dealership in Kingston, confirmed that the company’s sales have been affected by Hurricane Melissa but declined to comment on whether Christmas bonuses would be paid.

“Our sales have been impacted and once the sales are impacted then it’s going to affect other areas with certain things that we do for Christmas,” Robinson said. “I can’t really divulge too much information in terms of what’s going on with us internally and what we’re doing with our staff internally for December but what I will say to you is that sales were impacted since Hurricane Melissa and that has shifted a lot of things; I can’t tell you exactly what we’re cutting back on but there have been cutbacks.”

In contrast, Linwell Hamilton, managing director of Auto Channel Limited, and Chay Lewis, director of CSL Auto Sales Limited, both confirmed that their companies would be paying Christmas bonuses this year.

“I don’t believe that the impact of Melissa would have affected many businesses in Kingston. I know that a number of businesses would have prepared hurricane relief. We did. But nonetheless, the staff here, some of them would have had family in the country. So, we wouldn’t stop the bonus that we would normally give,” Hamilton said.

He added that his company also distributed approximately 300 care packages, along with mattresses, tarpaulin and other items, to residents in St Elizabeth following the hurricane.

Lewis said: “For Christmas we always take care of our workers. They normally get a little bonus on their pay. Because of the hurricane, we might just do something a little special for them too.”

Several large companies, including Red Stripe and Fontana Pharmacy, have also confirmed that they intend to pay Christmas bonuses this year, noting that the payment is directly linked to performance.

“Yes. In keeping with our performance-based reward framework, Red Stripe’s bonus programme continues to operate as part of our normal annual cycle. Bonuses are tied to individual and company performance and are awarded based on the achievement of agreed-upon targets. This approach ensures fairness, consistency, and alignment across all departments,” said Judon Bowen, head of human resource management at Red Stripe, in an emailed response to Observer Online.

Bowen also noted that the company has taken deliberate steps to support employees affected by the hurricane, providing care packages, immediate relief supplies, and financial and psychosocial support to team members and their families who suffered personal loss.

Fontana Pharmacy’s chief executive officer, Anne Chang, said bonus payments would depend on sales performance in the coming weeks.

“It is our intention to pay Christmas bonuses but it will depend on sales over the next few weeks. That being said, we have helped our teams in the west affected by hurricane Melissa to recover by assisting them with multiple care packages and building materials,” Chang said.

Clifton Reader, vice-president of Moon Palace Jamaica in Ocho Rios, St Ann, confirmed that the hotel will also be paying bonuses and distributing Christmas packages this year.

“Employees have been able to get gratuities and we have something that we call gratuity bonus. They were just paid gratuity bonus and we will be paying bonus this year and we will be giving the traditional Christmas package, separate and apart from everything,” Reader said.

He was speaking at the recent launch of the Tourism Housing Assistance Recovery Programme (THARP) at the Jamaica Pegasus hotel.