The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Workforce productivity in The Bahamas fell in five of the six years prior to Hurricane Dorian, it was revealed yesterday, with a Chamber executive saying reversing this must be “number one priority”.

Peter Goudie, head of The Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) labour division, told Tribune Business that improved productivity will entitle workers to higher wages, boost the competitiveness of their employers and wider economy, and reduce the cost of living at a critical time for the post-COVID rebound.

Disclosing that legislation to establish a National Productivity Council, which would advance these goals, is now before the Government for its assessment prior to going to Parliament, he added that “nothing but good will come from” this initiative.

Mr Goudie spoke out after The Bahamas’ Decent Work Country Programme 2021-2026 confirmed that workforce productivity had been slipping prior to the twin blows delivered by Hurricane Dorian and COVID-19.

“Although ILO (International Labour Organisation) estimates of labour productivity in The Bahamas compare favourably to other Caribbean countries, they fall well below the global average for high income economies,” the report said.

“Average output per worker is estimated at $31,000 for the Caribbean region as a whole for the period 2015-2019, compared to $56,400 for The Bahamas. However, average output per worker for the high-income group of countries, which includes The Bahamas, stands at $92,300 over the same period.”

It continued: “Moreover, growth in labour productivity in The Bahamas (measured as the growth rate of annual GDP per employed person) has been negative in five out of the previous six years to 2019, in sharp contrast to both the regional Caribbean and wider international positive trends.

“The combination of static or declining labour productivity, with high and increasing real wages, presents a significant competitiveness problem for business, with adverse impacts on job creation as employers seek to manage labour costs by reducing the number of employees.”

As to the causes, Decent Work Country Programme report added: “Most stakeholders agree that labour productivity deficits derive primarily from skills mismatches in the national labour force, including soft skills gaps.

“Other productivity factors include a lack of adequate ‘business education’ (business planning and financial management) among many micro, small and medium-sized enterprise (MSME) owners and managers, as well as the lack of resources and skills needed to digitalise business processes.

“These limitations also constitute significant risks to business continuity in the context of external shocks. In these contexts, the lack of adequate business and financial planning, as well as the limited integration of technology, leave many businesses without a viable path to continue operations, with associated adverse implications for broader economic resilience and job protection.”

Mr Goudie said the Chamber, trade unions and the Government were “certainly going to do a lot” when it came to implementing the strategy’s recommendations over the next five years. “We’re trying to get the National Productivity Council up and running,” he told Tribune Business. “To me that’s one of the number one priorities.

“If we improve our productivity, we reduce our cost of living, become more competitive and are better priced. People will also improve their skills and education. The legislation is before the Government; it’s up to them to move it. The minister [Keith Bell, minister of labour and Immigration] has it it. We’re very close. All the work has been done, all the studies have been done.”

Mr Goudie said that once the National Productivity Council legislation is enacted, a Bahamas delegation would visit the likes of Barbados to learn how it had implemented such a body and how it was working. “There’s no point in trying to reinvent the wheel,” he added.

“We have to increase skills to make people more productive. There’s nothing but good that will come from that, for business and workers. With more skills they can be paid more, and businesses are always complaining about people being unproductive, so let’s make them productive.

“If we can do half of what we have in that agenda, we’ll make a big impact. I hope we can do most, but if we do half it will be a big boost to the economy. We’re determined to do it, and can do as long as we work together,” Mr Goudie continued.

“I’m big on what we’re going to do. There’s a lot of good things in there and the ILO have put their weight behind it, which is huge. Their resources are ready to go.”