As Anguilla observed the Labour Day holiday on Wednesday this week, Labour Commissioner, Mr.Russel Reid, took the opportunity to identify a number of problems impacting the local job market and some of the solutions that are needed to address the situation in the near future.
Mr. Reid’s observations were contained in his 2013 Labour Day address as follows:
It is my pleasure once again to address you on another Labour Day.
We do not need a rocket scientist to figure out that the ongoing global financial crisis has, and continues to negatively impact the Anguillan economy in many ways.
However, in my presentation this year I will focus on some inherent challenges and misconceptions within the local labour market and will give some suggestions on how we can address them in going forward.
Low productivity, a disorganized workforce, misconceptions about the role of the Department of Labour, the distribution of service charge in the tourism sector, conciliation/mediation procedures and the issuing of work permits are chief among some of the outstanding issues.
Low Productivity
Low productivity within the island’s workforce is a constant complaint by employers. We hear comments about workers such as:-
? They are not prepared to give a fair day’s work for a fair day’s pay.
? They demonstrate a lack of dedication and loyalty to their job.
? There is a high level of absenteeism and abuse of sick leave.
In today’s competitive business environment, employees must be cognizant of the fact that low productivity and efficiency levels can adversely affect a business and can jeopardize its survival. Employees must be accountable for their actions and decisions. Each individual must have a good work ethic that guides his or her productivity on the job, be team spirited, and demonstrate good time management.
In my humble opinion, low productivity cannot be blamed entirely on employees. Some of it results from the work environment and conditions, along with a number of other factors that define the work culture. Therefore, employers have to play their part by implementing changes in their business environment to improve the productivity of their workforce.
Disorganized Workforce
The lack of a trade union culture is also negatively affecting our labour market. The workforce still remains disorganized despite continuous encouragement over the years for them to come together. Workers are shooting themselves in the foot with this inaction. It is clearly not the responsibility of the Government to organize workers.
Trade unions are no longer viewed as a problem, as they have become sophisticated and enlightened to the fact that their role is not just about protecting the interests of members, but includes ensuring the survival of the company which pays them a cheque.
Trade unions also facilitate effective communication, in collective bargaining and negotiations between workers and management. In addition, they provide advice and support to ensure that differences of opinion do not result into major conflicts, which can result in an unstable industrial relations climate.
We have received reports that attempts are being made by workers, especially those in the tourism sector to organize themselves. We hope and trust that this new initiative will bear great success and that workers will be able to speak with one voice in negotiating with their employers. Additionally, the existence of a recognized trade union is a key component of the tripartite consultation process as mandated by the International Labour Organization (ILO). Tripartism builds social dialogue and general consensus among government, workers and employers, but most importantly it is critical for social and economic stability and progress.
Misconceptions about the role of the Department of Labour
In previous Labour Day addresses, public forums and other events, I have always taken the time to inform and educate audiences on the role and functions of the Department of Labour. Despite these interventions, many persons still have misconstrued ideas related to the existence of the Department. The Department of Labour is mandated to uphold the integrity of the laws and to ensure compliance with the current labour laws. We must operate within the confines of these laws. For example we cannot negotiate wages for employees nor demand an employer to hire an employee as some persons continue to believe. If at any time we deviate from the true applications of these laws, we could be liable and would be making a mockery of the labour administration function outlined in the ILO conventions.
The Distribution of Service Charge
The issue of Gratuities, popularly known as Service Charge, continues to be a contentious issue within the tourism sector. Although section 27 of the Fair Labour Standards Act provides for the collection of service charge by an establishment and its distribution by a Committee comprising employee and employer representatives, there are some vague rules on how that distribution should occur. The Act says that the total amount of gratuities accumulated over a period of four (4) weeks, less 5% to be retained by the employer to cover administrative expenses, shall be distributed among employees.
There are many concerns regarding this arrangement. It is believed that management representatives who are in positions of authority use their influence on how service charge is distributed, thus resulting in them receiving the lion share. Others share the opinion that the lower paid employees should get the higher rate of service charge as managers already receive higher salaries. Some persons have expressed the view that the rationale for the introduction of service charge in the law was to further compensate the lower level employees and those who interact more with the guests.
Clearly in going forward we need to address the issue of service charge to ensure more transparency, and a greater level of equity with regards to its distribution.
Conciliation/Mediation Procedures
We need to have some radical changes to the conciliation/mediation process as illustrated in Section 15 of the Labour Department Act. The said Act provides procedures for the investigation and settlement of disputes involving the Labour Commissioner, Minister of Labour, and the establishment of a Tribunal.
The majority of disputes are settled by the Department of Labour. However, where there are no settlements at the Department level, especially for matters of termination of employment, this process can be very time consuming, impractical and very expensive for Government.
Arguments are now being put forward for the establishment of an Industrial Labour Court to hear unresolved disputes from the Labour Commissioner. This proposal will remove the Minister of Labour from the process thereby freeing him/ her from any perceived conflict of political interference. Likewise, not involving the Tribunal will expedite the decision- making process especially for persons with claims of unfair termination of employment, and who are also seeking to be reinstated. Furthermore, it will alleviate the cost to Government to appoint a head of the Tribunal.
Issuing of work permits
In 2012, the Executive Council approved a moratorium on new work permits for certain category of jobs to ensure that job opportunities remain available for Belongers of Anguilla in light of the downturn in the economy. Some locals were able to benefit from this initiative. However, in going forward we need to revisit the process of issuing work permits in order to strike a balance between key work permit holders and the local labour force. We need to ponder on the following questions:
? Should a term limit policy for work permit holders be implemented?
? Should the approval of work permits be given to a Work Permit Board similar to what happens in Bermuda and the Cayman islands?
? Should the Minister of Labour continue to approve work permits taking into consideration political and other socio-economic implications?
? What jobs should be reserved for qualified Belongers of Anguilla?
Clearly there is a need for a national manpower planning and a human capital development programme for the island in order to mitigate any disconnect between the needs of the labour market, and the training opportunities being offered or pursued.
The Way Forward
These are challenging times for the labour market in Anguilla, and to survive in this competitive and financially strapped global market, we must address the issues and concerns mentioned above in a holistic and professional manner. All stakeholders have to position themselves in order to ensure our survival.
Several previous attempts have been made to enact new labour legislation, but to date none has been successful. However, the catalyst to us having any meaningful results whatsoever, lies first and foremost in the updating of the island’s labour laws and policies.
By now, you may be aware that Government has appointed the services of Mr. Clive Pegus, a national of Trinidad, and one of the top regional Labour Reform Consultants, to conduct a comprehensive review of our labour laws commencing this month. Mr. Pegus is expected to meet with many stakeholders to hear their concerns in order to produce a new Labour Code encompassing and protecting the interests of all stakeholders in accordance with fundamental principles and rights of work and Anguilla’s obligations under ILO conventions.
I have no doubt that as a people we can move this country forward by creating and sustaining a harmonious industrial relations environment that is beneficial to employees, employers and the nation on a whole.
On behalf of the management and staff of the Department of labour, I would like to wish all workers and employers a blessed Labour Day.
I thank you.
Russel Reid
Labour Commissioner
– Press Release
(Published without editing by The Anguillian newspaper.)
