By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Minister of Labour yesterday argued that employer concerns over the proposed two-thirds increase in the redundancy pay ‘cap’ were misplaced, arguing that it would bring the Bahamas into line with the rest of the Caribbean.

Shane Gibson said the Government was not “reinventing the wheel” in its controversial labour reforms, and said regional comparisons suggest “something has to be wrong” with the current 12-year cap.

Addressing the House of Assembly during the second reading of the Employment Act and Industrial Relations Act amendments, Mr Gibson said: “That’s the one that really has the employers going.

“We checked around to see what people do in other countries with termination pay. In Jamaica, it’s capped at 20 years, and in Barbados it’s capped at 33 years. In Antigua, there is no cap.

“In the Bahamas, it is capped at 12 years. Something has to be wrong. What we sought to do is see what was happening in the region and not reinvent the wheel; to look at what is happening in the region and use the thresholds that currently exist,” added Mr Gibson.

“I have a meeting  tomorrow morning (today) with some employers where we will go over this to try and reach a compromise.”    

Key among employer concerns is the 67 per cent, or two-thirds increase, in the Employment Act’s redundancy pay ‘cap’.

Line staff are currently entitled to a maximum 24 weeks or six months’ redundancy pay under the Employment Act, gaining two weeks for each year they have been employed up to the 12-year ‘cap’.

However, the Bill requires the ‘cap’ to be increased to 32 weeks (16 years) immediately upon enactment of the reforms. And, ultimately, the ‘cap’ for line staff redundancy pay is to be increased to 40 weeks some two years after the amendments are passed.

As for managerial staff, the existing 48 weeks (12 months/one year) redundancy pay maximum that they are due currently under the Employment Act is to be immediately increased to 64 weeks. Should the proposals pass, the ‘cap’ will ultimately be lifted to 80 weeks after two years.

Among other amendments is the Employment Act’s definition of ‘employer’. “Right now, employer is not properly defined to make sure we know exactly who the employer is and who should be given recognition,” Mr Gibson said.

“We also will require employers to accept an employee’s request for the deduction of  trade union dues from the wages. This one is the most egregious and disgraceful ones.”

Mr Gibson said the latter reform stemmed from the dispute between the Meliá Nassau Beach and the Bahamas Hotel, Catering and Allied Workers Union (BHCAWU). The resort in 2015 said it was not obligated to provide administrative facilities for the payment of hotel union dues as there was no valid industrial agreement with the union.

“We amended the law to ensure that once recognition is given, the employer is obligated to deduct union dues and forward it on to the union,” said Mr Gibson.

He added that the Government does not want to discourage social dialogue on labour-related issues.

“The one thing we don’t want to do is discourage social dialogue. Whatever the Tripartite Council and social parties decide on, the Government doesn’t necessarily have to accept it, but they can recommend to the Government what they think the position should be and the Government would then exercise their discretion and determine what part of, if any, of the recommendations they would advance to legislation,” said Mr Gibson.