The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Chamber of Commerce's chief executive yesterday said it was "not a great idea" for the Government to be talking about increasing the redundancy pay cap "so soon" after its predecessor abandoned similar plans.

Edison Sumner told Tribune Business that the private sector, workers and government needed to focus on 'bedding in' the recently passed changes to the Employment and Industrial Relations Acts, rather than revisit proposals that did not become law.

He warned that the Minnis administration's oft-repeated intention to re-open the redundancy 'cap' discussion threatened to "cause a stir", and any such move would be "resisted" by the private sector due to fears of a "devastating" impact on businesses and the economy.

"We cannot see where we will consider changing our position any time soon to consider lifting the cap on redundancy pay," Mr Sumner told Tribune Business. "We maintain that position today.

"If the Government sees a need to have it reviewed again, which we don't think is a great idea, as we just finished discussing the same situation a couple of months ago, it has to come back to the National Tripartite Council for further discussion."

Mr Sumner was responding after Dion Foulkes, minister of labour, this week reiterated that the Government wanted to restart talks with employers and the trade unions over the 12-month 'cap'.

He indicated that it was seeking to find a 'happy medium' acceptable to all parties, having made similar comments during his Labour Day address and Senate Budget debate contribution.

Mr Foulkes' remarks indicate that the Minnis administration intends to effectively pick up where the Christie government left off in terms of labour policy, the Minister having outlined an agenda that is strikingly similar.

It is now seeking to re-open issues dealt with just a couple of months prior to the May 10 general election, when private sector opposition forced the Christie government to drop union and labour-friendly plans to increase the redundancy pay 'cap' by two-thirds from its present level.

Mr Sumner yesterday conceded there was nothing to stop the Government, private sector or trade unions from picking up 'old' issues and bringing them back before the Tripartite Council for further discussion.

He suggested, though, that it would be unwise for the Minnis administration to revisit the redundancy pay 'cap' so soon after it was "taken off the table" by its predecessor.

Asked about the potential impact for individual businesses and the wider Bahamian economy if the Government forged ahead, Mr Sumner told Tribune Business: "I don't even want to get to that stage.

"If it comes up now, there's going to be some resistance to it. The impact could be devastating, especially for those involved in the hospitality industry, those engaged in shift workers and employers across the board - whether they're the biggest in the hospitality and retail space, right down to the smallest company.

"It could have an impact on the welfare of companies, and have spin-off effects on the economy generally," he added. "We would have raised these concerns before."

Mr Sumner said the Chamber's advocacy, aided by feedback from its members, specific industries and international bodies, ultimately proved persuasive enough for the Christie government to abandon any plans to lift the redundancy 'cap'.

"This is why we say that to come back with this just after passing the Employment and Industrial Relations Act amendments is a bit soon," the Chamber chief executive added, "and could cause a bit of a stir again."

Mr Sumner said the previous administration had eventually conceded that to lift the 'cap' "was not the right timing", but Mr Foulkes' comments showed it must be "pressing on the Government's mind".

At present, line staff remain entitled to a maximum 24 weeks or six months' redundancy pay, gaining two weeks for each year they have been employed up to the 12-year 'cap'. Managers remain at a maximum of 48 weeks, or one month for every year worked up to 12 years.

The Christie government's proposals had called for the 'cap' to be increased to 32 weeks (16 years) for line staff immediately upon enactment of the reforms.

Ultimately, the 'cap' for line staff redundancy pay was to be increased to 40 weeks some two years after the amendments were passed.

As for managerial staff, the existing 48 weeks (12 months/one year) redundancy pay maximum was to be immediately increased to 64 weeks. It was ultimately to be lifted to 80 weeks after two years.

The former administration backed off in the face of stiff private sector resistance. Peter Goudie, one of the Chamber's representatives on the Tripartite Council, yesterday confirmed the issue had yet to be discussed by the body or placed on the agenda ahead of its next meeting on August 3.

"It hasn't changed at all, I can assure you of that," Mr Goudie replied, when asked about the private sector's position.

The Chamber previously branded the proposed redundancy pay 'cap' increase in the Employment Act as "economically untenable", since they threatened to further deter job-creating investment and business expansion in a climate were the private sector is already bedevilled by uncertainty.

It wrote: "An increase in redundancy pay will result in significant cost increases for an employer. In this present uncertain economic climate, an employer cannot shoulder any additional financial burden. Moreover, the costs associated with the increase are not quantifiable.

"A business which remains open is one where employees remain employed. However, this recommendation threatens to cripple and/or bankrupt most businesses, especially small businesses, in the Bahamas, resulting in lay-offs and business closures."