The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Past and present Bahamian Contractors Association (BCA) presidents yesterday differed over whether construction is suffering an increase in skilled labour shortages post-COVID as one branded such arguments “a cop out”.

Stephen Wrinkle told Tribune Business there has been an “extremely noticeable” shortage of skilled tradespersons in recent months due to many persons exiting the industry or retiring during the pandemic and its aftermath. Asserting that this has created “a substantial gap”, he added that the sector was facing the same difficulties as agriculture where no one is “picking up the tools and working” after “the older ones die out”.

However, Leonard Sands, the current BCA president, said he “refutes and denies” the existence of labour and skills gaps in the absence of solid empirical evidence. While major construction projects, such as the new US embassy, may require certifications that Bahamian workers simply cannot access or obtain, he warned against making blanket statements about shortages given that “thousands” of construction workers remain unemployed.

Turning to the Dorian-ravaged islands of Abaco and Grand Bahama, which are still in rebuilding mode three days’ later, Mr Sands said these locations were experiencing a housing - as opposed to labour - shortage. While there was “an abundance” of work, contractors and developers were struggling to attract skilled tradespersons due to the lack of available rental accommodation at competitive prices.

As a result, he warned that The Bahamas was in danger of “repeating the same cycle” of illegal housing communities (shanty towns) that Abaco saw pre-Dorian with Pigeon Pea and the Mudd as persons working on that island would build such structures for their families.

Construction labour issues have arisen just days after the Government gave the go-ahead for an Inter-American Development (IDB) financed project that aims “to identify skills needs and implement a talent pipeline that closes skills gaps in strategic sectors”.

Carl Oliver, a Ministry of Finance official, writing on behalf of financial secretary Simon Wilson, detailed in an August 25, 2022, letter to Daniela Carrera Marquis, the IDB’s Bahamas representative, that the multilateral lender will conduct a survey to identify employer labour demands and areas where there are skills gaps, identifying their causes and a strategy to address them, as well as develop “an action plan to develop human capital in strategic productive sectors”.

With the Bahamian economy expected to return to pre-COVID output/growth levels by end-2023, inflation and global economic developments permitting, the IDB warned in accompanying documents: “This economic recovery, however, may not translate into an equitable rebound of the labour market.

“Structural changes in the labour market due to the pandemic may have permanently affected the demand of certain occupations and skills, and some workers may find limited opportunities for reemployment. Before the pandemic, significant gaps between the skills of the workforce and the current and future needs of the labour market had led to an uneven dependence of foreign talent and skills, creating tensions between labour and Immigration policies.

“Moreover, low local returns to skills stimulate outbound migration. Approximately two-thirds of Bahamians with a tertiary education degree migrate to the US, Canada or Europe. To the extent that the pandemic may lead to structural changes in the labour market, making some occupations and skills redundant, these mismatches can persist or even become more pronounced.”

Mr Wrinkle yesterday backed the IDB’s assessment, telling this newspaper: “Skilled workers are a big problem for us. A lot of people left the industry during COVID, and a lot of older skilled workers retired out. We’re left with a substantial gap in skilled tradespeople. And if we can’t get get skilled tradespeople, we cannot do the job properly.

“That’s why we have to bring people in. It’s a Catch-22. We’ve got a serious gap in trades in this country.” Such trades include masons, carpenters, plumbers and welders, and Mr Wrinkle added that it had been “a big problem for a while” with an “extremely noticeable” worsening following the COVID-19 pandemic.

“The big projects here hire every available skilled tradesman they can find on the island and bring new ones in,” he said. “It sucks up our tradesmen and it’s a loss-loss. Our population has migrated away from the construction trades and skill sets. Our pool has been reduced. Once the old ones die out, there’s a gap like in farming.

“It’s a huge hindrance to all contractors. I don’t know if you can put a monetary value on it except it does impact your schedule because you lack productivity. If you have to stop a job to train people on the job, it’s going to be a hindrance. They need you to train them, and don’t come with any skills or any tools. Basic math skills are often absent. It’s a very difficult business, very difficult industry, especially for Bahamian contractors. We don’t have any alternative.”

Mr Wrinkle renewed calls that major developers be mandated to provide the necessary construction trades training in their Heads of Agreement with the Government. However, Mr Sands argued that labour and skills shortages should not be the focus - especially in the Dorian reconstruction zones.

“I think it’s hard for anyone to prove that statement,” he added of the gap concerns. “How would you determine a labour shortage? What metrics are you using? To just say there’s a labour shortage, I refute that, I deny that, and I would ask anyone to prove that. That’s an easy cop out for persons to say there’s a labour shortage. You have to be specific.

“If you put out an advert for building a property in this country, and said you need someone to supply your labour needs, you’ll have 1,000 persons knocking on your door... We have to be careful when we talk about labour shortages in The Bahamas. There are projects going on across the length and breadth of The Bahamas where there are no shortages. And there are thousands of people unemployed in the construction sector looking for work. Tell them there are shortages.”

Turning to the Dorian hit islands, Mr Sands added: “I’ve spoken to some persons on the ground in Abaco and Grand Bahama, and they will tell you there’s a housing shortage. They want to hire tradespeople like carpenters but there’s no place for them to live, so that creates a labour shortage. It’s not really a labour shortage in cases where there’s an abundance of work. It’s a housing crisis.”

Such a “crisis”, he added, could result in the creation of new, illegal structures and communities mirroring those that existed pre-Dorian as workers needed to find somewhere for their families while they earned an income to support them.

The IDB, meanwhile, warned: “Labour demand in The Bahamas will also be affected by global trends, such as digital transformation and climate change. While the adoption of new digital technologies can increase productivity and competitiveness, it can also reduce the demand for workers, particularly of those whose skills are substitutes of digital technologies.

“Environmental policies, such as transition to cleaner technologies and adaptation to extreme weather events, as well as emerging sectors such as the renewable energy sector also have the potential to change the demand for skills. If adequate reskilling or upskilling policies are not implemented, the adoption of digital and/or cleaner technologies can have a negative impact on many workers.

“The Bahamas requires an agenda to reskill dislocated workers, train those that may be affected by digital change and create a pool of talent to support the diversification agenda. This will have to be implemented efficiently, ensuring quality and relevance. The fiscal space has been eroded, limiting the room for social services.”