Govt plans increase to redundancy 'cap'

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Labour Department's Industrial Relations Unit has enjoyed an 89 per cent success rate in resolving trade disputes over the past 12 months, a Cabinet Minister said yestrerday.

Dion Foulkes, minister of labour, told the Senate during his contribution to the 2017-2018 Budget debate that the Industrial Relations Unit was charged with helping to settle all trade disputes in the Bahamas.

"Over the past 12 months, the unit has enjoyed an 89 per cent success rate in resolving trade disputes filed," he said. "Out of 2,349 disputes filed, 1,951 were successfully resolved.

"Additionally, public officers assigned to this unit are faced with members of the public that walk into our offices seeking advice, of which 94 per cent have been resolved without the filing of a trade dispute. This high success rate is a testament to the experience and skill of officers assigned to the unit, and highlights the tremendous effort of the staff and department to contributing to a smooth and stable industrial relations environment in the country."

Mr Foulkes added that the Minnis administration has pledged to remove the redundancy cap of 12 years for workers' compensation. "In this term in office we pledge to move the redundancy cap of 12 years for workers' compensation, and institute a new cap after consultation with the Tripartite Council," he said.

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 redundancy cap was a key contention between employers and the the trade unions when Employment Act reforms were introduced earlier this year under the Christie administration.

Mr Foulkes said the Government would also work with trade unions and employers to establish a redundancy fund, and empower the Industrial Tribunal to enforce its own decisions.

He reiterated that no labour certificates would be issued unless the Labour Department was confident there are no available Bahamians who meet the requirements for a specific job.

Comments

The_Oracle says...

Plenty talk about the good this administration will do, but no action yet,
and then this.
Dumb asses. Can no elected official get anything right?
Boat's sinking and they're walking around drilling holes!

Posted 28 June 2017, 3:14 p.m. Suggest removal

DDK says...

Too sad! Too disappointing! Too fooked up! (Thank you lkalikl)

Posted 28 June 2017, 4:34 p.m. Suggest removal

DDK says...

If the redundancy cap is increased further it may lead businesses to rethink encouraging employees to become long-term. Some sort of redundancy fund does seem to be a good idea. If a company finds itself experiencing hardships due, for example, to the continued economic down-turn, cut-backs may be the only means of survival; if the redundancy payments are too crippling it may result in closure and even more employees out of work. It is, of course, understood that no-one likes to lose their means of income, especially after many years of service.

Posted 28 June 2017, 3:27 p.m. Suggest removal

themessenger says...

This is nothing more than pandering to the Unions like the PLP before them with the idiots Obie Ferguson and Dion Foulkes leading the charge.
Bringing back a washed up political has been like Dion Foulkes to head Labor doesn't exactly instill any confidence in the private sector either. Any private employer who has had dealings with the labor board or industrial tribunal in the past could tell you how one sided the process is now. Short term renewable employment contracts will become the way of the future and anyone not already employed and seeking tenure in a job will be s@#t out of luck.
Very short sighted of the government and something that will surely come back to bite them on the ass.

Posted 28 June 2017, 4:14 p.m. Suggest removal

The_Oracle says...

A "redundancy fund" can only be funded by employers paying into it, or government taxing us more to fund it, or both.
Higher costs means less employment, less investment, higher burden on those left.
It is a vicious cycle they seem determined to see to it's inevitable end: Complete economic collapse.
Unions are nothing more than Government sanctioned pillaging of the working class.
Right alongside the Government.

Posted 28 June 2017, 5:57 p.m. Suggest removal

BMW says...

. All employers should start short term renewable employment contracts.

Posted 29 June 2017, 5:46 a.m. Suggest removal

themessenger says...

While revamping redundancy payments so heavily in favor of employees, the Union leaders and Minister of Labor should consider this.
As a private employer if I make an employee redundant or fire them, even for stealing, I am usually obliged,compliments of the Labor Board, to either give them the Golden Handshake, in a managers case 48 weeks pay, or consider reinstating them.
Why is there no protection in the labor laws for the employer and no penalties or rules for the employee? A manager can quit his employer in the middle of overseeing a large project giving no notice, leaving the employer hung out to dry without any penalties or compensation being awarded to the employer. This could result in the failure of the business venture and a serious financial loss to the employer.
This is currently is a one way street and a dead end for employers, so if the government intends to meddle with the current labor legislation them let any changes made reflect parity on both sides.

Posted 29 June 2017, 8:10 a.m. Suggest removal

DDK says...

Right on!

Posted 29 June 2017, 12:59 p.m. Suggest removal

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