By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Freeport manufacturer last night said just three maintenance staff “withdrew” their labour over a new 12-hour shift system implemented to support the company’s expansion.

PharmaChem Technologies, in a statement, confirmed it had provided the trio with their legally-entitled severance pay and other benefits after they “repudiated” the new system that is intended to support the “start-up phase” of manufacturing further drugs to help combat HIV/AIDS and other infectious diseases.

Asserting its belief that the move has not breached employees’ contracts, or violated Bahamian labour laws, the company explained that the changes were needed after it “recently completed the construction of a new multi-product manufacturing facility” that will produce “the next generation of active pharmaceutical ingredients for products to fight the HIV/AIDS ‘war’ and other infectious diseases”.

It added: “The plant is now in the start-up phase of validating two new processes. As with most start-ups, we are experiencing significant technical, equipment and process delays which now require 24/7, 12-hour shift rotation support from the mechanical, electrical and instrumentation staff to ensure that we have adequate coverage to meet equipment challenges and on-going routine maintenance.

“It is not unusual for employees to be placed on 24/7 shift rotation. In fact, more than 50 percent of the present employee complement including production, quality control and utilities are currently working on the 12-hour shift rotation.” PharmaChem said it had begun speaking to those impacted employees, namely maintenance, electrical and instrument staff, almost a year in advance of the new system’s implementation.

“Prior to bringing online the new multi-purpose manufacturing plant, management sensitised the impacted employees about the need to realign its operations and began the transition process through a series of meetings and dialogue with its employees as far back as December 2021,” the company added.

“All employees whose work hours are being realigned will continue to be compensated in accordance with the labour laws of The Bahamas and their contract of employment. This transition does not involve any loss of benefits to the employees.

“Pursuant to the terms of the employment contracts, the company exercised its rights to vary the working hours of the employees to accord with its business needs at this time. Contrary to the assertion of some of the employees, PharmaChem Technologies is confident that it has not breached the contract of employment that it has with its employees,” it continued.

“However, there were employees who asserted that PharmaChem Technologies breached their employment contract, and who unequivocally stated that they would not work the new shift rotation and withdrew their services by refusing to report for the new shifts despite being requested to do so. As such, PharmaChem Technologies accepted their repudiation and decided to provide them with their severance entitlement.

“PharmaChem has a robust safety training programme and is proud of its safety record, having worked in excess of 990 consecutive days as of October 31, 2022, without a loss time accident. The safety procedures clearly describe conditions required to safely perform maintenance activities on mechanical, electrical and instrumentation fronts.

“With the new rotation there will be a minimum of 14 shift workers across the site during each shift to ensure adequate emergency response plus additional support as required.” Controversy surrounded the new shift system after representatives for the impacted workers alleged it could put impacted staff “at risk” and amount to a “unilateral variation” of their employment terms.

Obie Ferguson KC, the Trades Union Congress (TUC) president and labour attorney, in a November 11, 2022, letter warned Pharmachem that requiring one person to cover a 12-hour shift represented “a health and safety concern” and alleged it could lead to liability under the Health and Safety at Work Act.

Purporting to represent the electrical and instrument staff at the bulk manufacturer of pharmaceutical drugs, Mr Ferguson argued that the proposed shift system would lead to employees working more hours and less receiving less pay. 

Pharmachem is non-unionised, but Mr Ferguson alleged that the last paragraph of the firm’s October 28, 2022, letter to staff on the new rotation “implies that if persons refuse to adhere to this new shift arrangement, it means that they wish to leave the company, which is coercion. Clearly this cannot be tolerated in any circumstances”.

Setting out the alleged grievances over the October 28 letter, the TUC president said: “This letter amounts to unilateral variation of their individual contract of employment and exposes the company to both wrongful and unfair dismissal claims. Their contract of employment since 2005 requires them to work 40 hours per week pursuant to the law as provided for in the Employment Act 2001 without having to work on weekends consistent with the law.

“The proposed shift as provided for in the schedule the company has provided requires them to work 12-hour shifts per day, leading to 168 hours per normal month and working weekends and holidays. Further, for those months with five weeks, the hours can be as much as 228 hours (compared to 192 hours at the low-end). This is in stark comparison to the 160 hours they presently work.”

Mr Ferguson alleged that Pharmachem was seeking to “remove” better benefits from impacted staff “in that they will work more hours and obtain less pay, in that the excess overtime will only be paid at time-and-a-half and they will have to work weekends and holidays, thereby increasing the possibility of accidents”.

“The issue of a one-man shift covering 12 hours is a health and safety concern,” the TUC president asserted. “The electrician and instrumentation responsibilities put technicians at risk when working heights and working alone. To ignore technicians working without back-up or unable to require assistance of knowledgeable persons when needed can clearly put staff in extreme danger.

“The same goes for mechanics working in confined spaces and vessel entry jobs. The Health and Safety at Work Act in article 4 provides for the duties of employers to their employees, and article 6(5) provides for items and substances used with regards to safety and health.

“One man coverage of operations over 12 hours will lead to fatigue and increase the risk of accidents, particularly in the current environment, which will make the company liable under article 17 of the Health and Safety at Work Act Chapter 321C.”