By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
THE Chamber of Commerce’s labour head yesterday said he did “not understand the rationale” for raising work permit fees, amid warnings it will not reduce Bahamian unemployment.
Peter Goudie, head of the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) employment and labour division, told Tribune Business that the organisation had requested the Government’s “position paper” on the issue and would seek to develop its own by today. “I can tell you we have requested a copy of the position paper from the Government yesterday [Monday],” he told Tribune Business. “We are waiting for that position paper because we don’t understand what the rationale is, and we’re going to form a position paper tonight or first thing in the morning, and deal with it.”
Mr Goudie spoke out after Brent Symonette, minister of financial services, trade and industry and Immigration, revealed the planned work permit fee increase - the first for a decade - in the House of Assembly on Monday.
“We will be making an official announcement coming July 1,” Mr Symonette said. “Immigration fees will increase. These have not been increased since 2008. We will publish a full listing of those fees. I will say that one of the areas affected is the lowest level, which has been $1,000 for a work permit. That will be going to $2,000 for a work permit.”
Mr Goudie said the 100 per cent increase, or doubling of costs, would impact foreign workers typically hired for jobs Bahamians do not want to perform, such as maids, gardeners, handymen, labourers and landscapers.
None of the other proposed increases, which may take effect from the 2018-2019 fiscal year, were disclosed. However, there were warnings that an increase in work permit fees could negatively impact small and medium-sized enterprises (SMEs) by pricing skilled expatriate workers beyond their reach, while the move would do little to improve jobs prospects for Bahamians.
Robert Myers, an Organisation for Responsible Governance (ORG) principal, told Tribune Business he was “a bit disappointed” to hear the Government’s plans as it threatened to impose further costs and bureaucracy on the private sector.
“It’s not what I was expecting to hear,” he told Tribune Business. “What the private sector and foreign direct investors are looking to hear about is a reduction in the cost and ease of doing business that encourages us to invest more in the country.”
Mr Myers said businesses also wanted to see a cut in the fiscal deficit and national debt that was achieved through spending reductions and controls, rather than any revenue-raising measures that “further burden the private sector and make us regionally less competitive”.
“By increasing work permit fees you actually hurt SMEs, as they are less able to afford the type of employee they need to expand their business,” he told Tribune Business. “That hits GDP. Increasing work permit fees is going to slow growth and not reduce unemployment.
“The reason you bring in expatriates is because you don’t have the skill set required available locally.... Doubling work permit fees is not going to help the uneducated get a job, and it’s a bit naive to think it will. It’s not going to make foreign direct investors want to come to the Bahamas. It’s not going to help our level of competitiveness.
“The Government ought to be focused on the right thing, and what they promised they would do, but raising work permit fees is not the best way to improve the economy of the Bahamas. It may be one way, but has the potential to do more damage than good,” Mr Myers continued.
“If a business can’t find a Bahamian to do it, and you create prohibitions to bringing in expatriates to do it, they don’t grow. If one expatriate worker means you also hire four Bahamians, that’s a win.”
Mr Myers, whose businesses rely on just 2-3 per cent expatriate labour, added that the proposed work permit fee increases could send “the wrong message” to a Bahamian private sector in desperate need of further pro-growth signals from the Minnis administration.
He suggested they would be more palatable if the funds collected were used to improve the education system, and train Bahamians so that businesses have a ready-made workforce.
“If you told me that the Immigration Department and Ministry of Education were actively collaborating on this, so that the additional fees from work permits go to workforce development, vocational education, improving apprenticeship programmes and the education system, so the private sector has more capable people, we would applaud,” Mr Myers told Tribune Business. “But the right hand doesn’t seem to be talking to the left.’
Comments
John 6 years ago
If Brent Symonette has his way and doubles the work permit fees for gardeners and maids, this will be the final straw that makes his FNM Government obsolete. How can this man say in one breath that these are jobs Bahamians are not willing to do and then doubles the price. Then government says it wants to increase food production but increase the cost of labor at the stroke of the pen? Of course unconscionable and outrageous permit fees will also lead to more illegal employment. Symonette not only seems not to have a moral compass when dealing with immigration issues, but the FNM seems to have no direction in how to accomplishing its most simple goals. You tell people in the country to get regularised and Bahamians to regularised their workers with immigration, then you double the cost? On the lowest earning immigrants? Shame ‘ Mr. Born with a silver spoon in your teeths’
TheMadHatter 6 years ago
Brent is correct.
I disagree these are jobs Bahamians dont want to do. The fact is that many prefer to hire foreigners not just because they are cheaper - but because then they can be threatened with deportation if they dont cower like a dog.
This is big time in medical areas as well, not just maids and gardeners.
OldFort2012 6 years ago
I would much rather pay $2k for someone who is going to actually work than pay nothing for someone who is going to stand around pretending to work. Ever had anything actually done to a finish by a Bahamian? Enough said.
joeblow 6 years ago
I am convinced that once a person becomes a MP they have to leave their common sense in a safety deposit box until they are removed from office.
The government specializes in penalizing the law abiding while granting grand concessions and enabling law breakers!
TheMadHatter 6 years ago
OldFort - that's exactly my point. When people hire Bahamians they pay them "nothing" then complain when they get nothing in return.
How many times have you heard stories of foreigners coming in, getting paid big bucks WITH car and housing allowance and school fee assistance etc. But if you're a Bahamian you're just supposed to be happy living on $250/week and "Thank God for life."
Bahamians are basically suffering under genocide in more than one way.
ohdrap4 6 years ago
And then, outside the financial services, there are work permit holders who are actually underpaid, as the cost of the permit is deducted from their salary. i once witnessed that as a foreign worker left and the Bahamian replacement was paid the same salary plus the cost of work permit. But, for the most part, the foreigners come to work on time, actually do their work and of their slacker colleagues.
joeblow 6 years ago
An honest, hard-working punctual Bahamian who keeps their word is an exceedingly rare find! Few who find a good one will not treat them properly, BECAUSE they are so hard to find! Interestingly though, the slackers want to be paid like a 'real" worker!
bogart 6 years ago
Supply and Demand
If you have a glut of cheap labour illegal or not, living under threat of deportation, inhuman slave conditions, children born but not yet 18 years to apply for citizenship getting FREE edication in govt schools, FREE clinic, depending on work permit legal or not for shelter food ,....and worker dependent on the employer as they cannot just switch the permit ....and surviving in one of the 11 shantytowns where conditions are basocally unlivable then you will expect your worker to work like superman, 10 hrs, plant 2 acres per hr, smiling yess sir, and wanting to do ...more to maintain themseleves.... until they get straight On the other side os the Bahamian worker who lives paying light bill, water bill rent, fast food where the basic expenses warrant minimum wage...now in all fairness yo the Bahamian who do not want to pergorm such jobs as maids and gatdeners etc as is commonly stated...?.....well who in this world would to work under similar conditions as the aforementioned?until the kids are 18yrs... Now with similar maids jobs, handymen, landscapers available in the large multinational hotel chains following the laws, decent stanndards and livable wage standards there are no vacancies. Very few would not want to have productivity using slave labour...Bahamians should try going into some of these shantytowns and witness the inhuman conditions.?despite the fact the inhabitants come out nicely dressed for work
John 6 years ago
‘Bahamians should try going into some of these shantytowns and witness the inhuman conditions.’ There are Bahamians living in far worse conditions than in the shantytowns. Some without light and water and in houses where most of the roof has caved in and the floor is non existent. And at least one good stripe in the PLP’s cap is they were successful in assisting many of these people.
joeblow 6 years ago
A sense of entitlement has reduced too many people to such a state of passivity that they become useless to themselves and others. The governments job is to provide opportunities-- people have an obligation to help themselves when such opportunities are provided.
John 6 years ago
Then some will say this can be considered discrimination against Haitians, since they make up the bulk of the maids and gardeners work force. Others say some employers will just pass the increase on to the workers putting them in a greater disposition. So Minnis’ can of open corned beef may not have been a corny joke after all. Looks like when this government finish with Bahamians they will not be able to afford a can of corned beef.
birdiestrachan 6 years ago
Truth be told if these small companies mom and pop business can not find qualified persons to work for them; Who will OBAN find. The top paying jobs will go to foreigners who will also receive tax breaks and the labor class jobs will go to Bahamians who will pay the taxes.
These small business who claim they can not find qualified Bahamians to work for them never mention what positions they would like to fill, Now remember the Wash house man could not find Bahamians to manage his wash houses.
birdiestrachan 6 years ago
What kind of business does Mr: Myers have"?? He always has a problem with work permit fees.
TheMadHatter 6 years ago
Illegals need to be kicked out and Bahamians need to be taxed $25/month for every child being more than 2 per family. Failure to pay means ya TV gets cut off.
bogart 6 years ago
Laws need to be enforced das all.......den da national passtime of sweetheartin gon stop....an plenty wemmen needs to stop being so fool thinkin all these wutless no good men wid sugga on dey tongue gon seriously tek care a yall after dey pull back on dey pants.....and de some wutless men wants to go an sex da wife when she done smell an know what gone on an wan say no...!! Laws need to be enforced, thats all.
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