Minister of Labour Dion Foulkes. (File photo)
By KHRISNA RUSSELL
Tribune Chief Reporter
krussell@tribunemedia.net
LABOUR Minister Dion Foulkes says he doesn’t agree with the position that companies should offer employees redundancy packages as a form of assistance to struggling workers.
Last week, Labour Director John Pinder told The Tribune he has suggested to some employers the need to offer severance pay to workers who are experiencing hardship due to COVID-19.
However, yesterday outside Cabinet, Mr Foulkes said while he understood the reasoning behind the suggestion, it was not something he would advise, pointing to the current economic climate.
“That’s a double-edged sword,” the minister said when asked if he agreed with Mr Pinder’s position. “There are many businesses that have temporarily laid off their staff.
“If they offer redundancy or pay them out severance pay, their employment will be terminated and there is no hope of them going back to work.
“The government is hopeful that the persons that were laid off for example at Atlantis and Baha Mar and now at Sandals, the majority of those persons are coming back to work and they are able to have gainful employment for years to come.”
He continued: “Now I understand why some persons want to be terminated to get the redundancy pay because the economic situation is dire now and people have to take care of their families. I get that and the government understands that, but it has to be a balance.
“The (emergency) order makes provision for redundancy not to be paid outside of 30 days after the order ends. The current order ends at the end of May so we are not sure what’s going to happen after May, but at least until that period businesses will not be mandated to pay redundancies.
“Now certain companies are paying redundancies and terminating employees, but that isn’t something that I would advise for employers to advocate for because it terminates their employment, and I don’t think this is an environment where you would want to be without a job.”
Mr Foulkes also said it is difficult to accurately state the country’s current unemployment figure.
Mr Pinder has estimated the unemployment rate is between 38 to 42 percent.
“The workforce in The Bahamas is approximately 220,000 workers,” Mr Foulkes said. “The last unemployment assistance number was around 28,000 or 30,000 – the unemployment assistance programme that National Insurance does in terms of the assistance the government is giving it’s around 28,000 or 30,000 persons.
“Now if you figure that in terms of percentage it will come down to a low percentage compared to 220,000 workers but that is not the right way to do it because you have structural unemployment and there are a lot of other things that go into calculating what the unemployment rate is.
“But since the pandemic started, I am confident based on the evidence that we see in the economy that the unemployment rate has drastically come down because as you know everything was at a standstill and most of the businesses they put their workers on temporary layoffs.
“That has now changed. Most of the people are coming back to work so it’s very difficult to peg a percentage upon that.”
Comments
moncurcool 3 years, 8 months ago
Sometimes people need to listen to what they say so they don;'contradict themselves.
In one instance, the Minister says not wise to pay out redundancy because it is not good to not have a job in this environment. Then he comes back ad says that unemployment has drastically reduced? So which is it?
sheeprunner12 3 years, 8 months ago
Foulkes says IF you want to work ...... you can go back to (or find) work.
Is he serious????????
truetruebahamian 3 years, 8 months ago
Foulkes needs to wash and dry the fog off his spectacles!
ThisIsOurs 3 years, 8 months ago
"The last unemployment assistance number was around 28,000 or 30,000 – the unemployment assistance programme that National Insurance does in terms of the assistance the government is giving it’s around 28,000 or 30,000 persons."
I've never seen better spin doctors anywhere. How did they suddenly forget that unemployment assistance was target to hotel workers? That there was a defined benefit period and that there were rigid criteria in place for qualification?
ThisIsOurs 3 years, 8 months ago
I'm beginning to suspect that the emergency order has literally nothing to do with protecting our heslth. They are protecting big business. If the order expires and these companies have to pay severance, lots of companies could buckle. Noone running a healthy business plans to pay out their entire staff at one time
Dawes 3 years, 8 months ago
Agree, especially after the first lockdowns. Not sure people get that companies just don't have the money to pay out. They will then declare bankruptcy instead and the employees will be lucky to get what is due to them in a couple years. All that would mean is the economic recovery will be put off for longer as companies that are operating currently with 20% staff will not be operating at all.
tribanon 3 years, 8 months ago
Oh really? Then why hasn't government reduced the pay and benefits of any of the senior members of our grossly over-bloated civil work force, not to mention our worthless elected officials like himself? Why must businesses and employees in the private sector be the only ones to suffer great hardship?
Come on Foulkes. Tell us why government is so willing to continue borrowing like there's no tomorrow to pay the full salaries and benefits of many public sector employees making more than $50,000 a year, while doing so very little for existing and former private sector employees who are suffering extreme poverty?
Hoda 3 years, 8 months ago
Workers should be offered their severance packages. However, I don’t think it’s unfair to suggest they consider their employment prospects in this markets and what employable skills they have to compete in this market. Maybe they will invest, got back to school, start a business, pay some bills etc...
tribanon 3 years, 8 months ago
These private sector employees really don't need to worry. They should take a juicy severence package knowing that Minnis will put them all on the government payroll if they can somehow reassure him that they are registered to vote and will vote for the FNM candidate running in their constituency. LOL
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