The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The private sector is satisfied “for now” with the labour law reforms passed by Parliament, the Chamber’s chief executive yesterday confirming that “most of the sticking points” have been dealt with.

Edison Sumner told Tribune Business that most of the amendments proposed by the private sector to the original Employment Act and Industrial Relations Act changes had been included in the final Bills.

He added, though, that the Chamber was still having discussions on other reforms it is seeking, and will likely pursue this through the National Tripartite Council - the body created to resolve all labour-related matters via a consensual approach.

“We didn’t get everything we wanted, but we were satisfied we were able to come to some compromises with the other parties to the Tripartite Council, particularly on the Government side and the labour side,” Mr Sumner told Tribune Business.

“We were glad at least that most of the more sticking points were addressed and dealt with... Based on the proposed amendments and what we saw in the final Bills presented to Parliament, most of the issues were addressed to the private sector’s satisfaction.”

The initial versions of the Bills were viewed as potentially “crippling” for many Bahamian businesses, with the increased costs and bureaucracy stemming from them threatening to “bankrupt” many companies - especially small and medium-sized businesses.

Perceived as union-friendly, the legislation was also seen as an unwarranted interference with the ability of business owners to run their operations.

It prompted a week of agonised negotiations between the Government, private sector and trade unions in a bid to achieve greater balance with the reforms, forcing the Christie administration to halt the Bills’ second reading in the House of Assembly.

“One or two items did not get the support we’d liked, and there are a couple of matters we’d like to go back and address in the future,” Mr Sumner told Tribune Business, declining to identify what they were.

He added that these issues were being discussed internally at the Chamber, and said it was possible that “in the not too distant future” they would be brought to the National Tripartite Council for future consideration.

“We were pleased the Government showed at least a flexibility where they were prepared to listen to the views of private employers,” Mr Sumner told Tribune Business.

“Most of what we wanted, and the amendments proposed, most of it made it into the final Bills. It shows that we’re able to get much accomplished when we work together towards certain goals and objectives.

“We think where we ended up was a strong compromise to get to a position where we can move to the next phase.”

Employers obtained their key demand, which was to drop the proposed 67 per cent increase in the redundancy pay cap.

The revised Employment Act and Industrial Relations Act reforms completely dropped plans to alter the redundancy ‘cap’, deleting the clause dealing with this in the initial Bill in its entirety.

Line staff, 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’, will continue to receive such compensation.

Previous proposals to increase the ‘cap’ to 32 weeks (16 years) immediately, and 40 weeks after two years, have been scrapped.

And managerial staff will continue to receive the existing 48 weeks (12 months/one year) redundancy pay maximum that they are due under the Employment Act, rather than an immediate increase to 64 weeks, followed by 80 weeks after two years.

To balance the dropping of the redundancy ‘cap’ rise, the Government has made additional union-friendly reforms, with the changes allowing employees to obtain both redundancy pay and their non-contributory pension or gratuity.

The initial Employment Act draft required employees to choose one or the other, but now they can walk away with both - something permitted in the hotel industry for years, even though it is not law.

The Government has also agreed to another union demand by reducing the threshold for ‘agency shop’ from 60 per cent of workers voting in favour to 50 per cent plus one.