The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Chamber of Commerce’s chairman yesterday expressed optimism that private sector representatives were making progress towards “a palatable conclusion” over the labour law reform controversy.

Gowon Bowe told Tribune Business that “cooler heads did prevail” among the Government and private sector when it came to discussing the latter’s fears that the proposed Employment Act and Industrial Relations Act changes would “cripple” and “bankrupt” many businesses.

The Chamber chairman said both sides had promised not to discuss any details publicly while negotiations were ongoing, but indicated that an outcome the Bahamian private sector can live with may be in reach as Parliamentary debate on the reforms halted.

Shane Gibson, minister of labour and national insurance, yesterday told the House of Assembly that negotiations over the private sector’s last-ditch efforts to mitigate what it perceives as the most damaging aspects of the reforms were likely to conclude swiftly.

He said Bahamian employers were to submit documents and recommendations to the Government by today, with the Christie administration seeking to conclude House debate on the Bills on Monday.

“They are awaiting certain things back from us,” Mr Bowe confirmed of the Government, “and we have future meetings set up. The process is proceeding.

“The cooler heads did prevail, and we have had very constructive meetings. There were effectively agreements to work together to come to common ground.”

He added: “They are asking on their end from us, and we are asking on our end from them. We’ve effectively set deadlines among us.

“Once each has met the deadlines to the other, I think there will be a palatable conclusion. As long as we’re talking, there’s progress being made.”

Mr Bowe acknowledged that the negotiations with the Government would not last “very much longer”, and added: “Both parties are being mature about it in a very strategic manner.”

Asked what he would say to reassure nervous employers, amid talk of initiating staff redundancies now to avoid the increased cost and bureaucratic burdens threatened by the Bills, Mr Bowe replied: “They should have confidence that previous outcomes with collaborative mechanisms, such as VAT, have been palatable, and hopefully that will be a predictor for what will come out of this discussion as well.”

Other private sector executives involved in the talks with the Government echoed Mr Bowe’s line that progress was being made, but also declined to go into specifics.

Robert Sands, the Bahamas Hotel and Restaurant Employers Association’s (BHREA) president, told Tribune Business: “We’re still working.

“I think the meetings we’ve been having, and continue to have, are all very productive. We’re still trading comments between the parties. I can’t say much more than that at this point in time.”

And Edison Sumner, the Chamber’s chief executive, added: “We’re still working through some details. Things are advancing. We’re pleased with what’s happening, but we’re not at the point where we can share information.”

Key among employer concerns is the 67 per cent, or two-thirds increase, in the Employment Act’s redundancy pay ‘cap’.

Line staff are currently entitled to a maximum 24 weeks or six months’ redundancy pay under the Employment Act, gaining two weeks for each year they have been employed up to the 12-year ‘cap’.

However, the Bill requires the ‘cap’ to be increased to 32 weeks (16 years) immediately upon enactment of the reforms. And, ultimately, the ‘cap’ for line staff redundancy pay is to be increased to 40 weeks some two years after the amendments are passed.

As for managerial staff, the existing 48 weeks (12 months/one year) redundancy pay maximum that they are due currently under the Employment Act is to be immediately increased to 64 weeks. Should the proposals pass, the ‘cap’ will ultimately be lifted to 80 weeks after two years.

The proposed reforms also impose bureaucratic notification requirements on Bahamian businesses, whenever they are considering redundancies, and a fine equivalent to 30 days’ extra pay for each terminated employee should these not be adhered to.

Employers will have to give relevant trade unions, or employee representatives, a “written statement” explaining the reasons for the redundancies and “facts” behind the move, along with the number and category of jobs impacted, and the timeframe over which the terminations will take place.

“Recognised” trade unions must be consulted “no later than six weeks” before the redundancies will occur in a bid to “mitigate” the impact, and determine the processes and procedures that will be used. The Minister of Labour must be given 30 days’ notice.

Meanwhile, the proposed reforms to section 51 of the Industrial Relations Act deem the terms and conditions of industrial agreements as automatically incorporated into individual workers’ contracts.

Other proposed amendments force employers to start collective bargaining talks within 45 days of receiving a trade union’s industrial agreement proposal.