Subcontractors at the Fairmont Southampton returned to work today after downing tools, according to the hotel’s owner.

A source told The Royal Gazette that plumbers and electricians walked off the redevelopment site this week owing to non-payment of wages.

A spokesman for Westend Properties saidthis afternoon: “We are aware of the concerns regarding subcontractor payments and are actively addressing the matter.”

The spokesman said the firm was “restructuring the payment administration and disbursement process, due to difficulties experienced by the general contractor in maintaining and providing the accounting records and supporting documentation required under its contract”.

He added: “Our priority is to ensure that subcontractors and contractors are paid accurately and on time, while maintaining the appropriate controls, documentation and accountability throughout the process.

“We are working diligently to implement a more direct and reliable payment structure to avoid further disruptions.

“As of this morning, the majority of payments to subcontractors have been made and they have returned to work at the Fairmont Southampton site today.”

Chris Furbert, the president of the Bermuda Industrial Union, said he was not aware of any work stoppage. The Electricity Supply Trade Union has been approached for comment.

The resort, which closed in 2020, is employing hundreds of local and foreign workers for its $550 million redevelopment, with the reopening expected next year.