The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

TRADE UNIONS  yesterday accused the Central Bank of breaking their collective bargaining agreement (CBA) and placing the employee pension plan in jeopardy, alleging that changes to the latter had cost some employees up to $30,000 annually.

Bahamas Communications and Public Managers Union (BCPMU) executives, together with Union of Central Bankers representatives, said said they would be taking legal action against the Central Bank’s Board of Directors for “unilaterally” altering the employee pension fund’s terms.

Union executives said yesterday that for 37 years, Central Bank employees have enjoyed a defined benefit pension plan, to which the staff contributes 5 per cent of their salaries.

“Over the past four years, the bank has attempted to alter the terms of this pension fund,” said BCPMU president, Richard Thompson. “Initially with the integration clause, then a proposed change from defined benefit to defined contribution and a myriad of changes to the existing defined benefit plan, before making final changes in December 2013.”

Mr Thompson said the Central Bank’s justification for the changes were financial constraints and the inability to maintain the status quo of the original pension arrangement.

He added that the bank’s decision had affected more than 200 employees, and alleged that some had lost up to $30,000 annually.

“We want justice for our members, and will not sit idly by and allow our members after contributing for 20, 30, 40 years, to retire from the bank without the benefits to which they are rightly entitled and become a burden on the social services system of the Bahamas,” Mr Thompson said. “The unions are united and prepared to take every action in pursuance of justice.

He added: “As a union, we call on the Government to accelerate its commitment to bring forth legislation for the protection of pensions. We want to put the citizens of the Bahamas on notice that this is a national issue, and that if the unions allow this capricious and irrational decision by the Bank to go unchallenged, then at the point of retirement some appointed Board members can simply, by the stroke of a pen, erase the benefits that you have contributed to for 20 to 40 years.”

Mr Thompson said the Board’s decision to implement the changes was never presented to the union for further consideration, suggesting the Central Bank had “already made up its mind to implement such changes without regards for the unions or the employees who contributed significantly to the plan”.

Attorney Alfred Sears QC said a writ has been filed, and will be served on the Central Bank shortly on behalf of the unions.

Mr Sears said: “We have reviewed the situation. We have given our legal advice that the Central Bank is in breach of the CBA (collective bargaining agreement), and we have been instructed to commence legal proceedings against the Central Bank.

“It is a critical expectation that the Bahamians that constitute the employees, and the members of these two unions, have been looking for it. They’re entitled to it. It’s the feeling of our clients that this is a national issue, because the pension of our employees is really a fundamental property interest, and there should be a national legislation to secure and protect the pension rights of Bahamian workers.”