By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Talks on extending maternity leave are not targeting 18 weeks, the Bahamas Chamber of Commerce’s labour division chief disclosed yesterday, adding that a final decision is some way off.

Peter Goudie, who represents the private sector on the National Tripartite Council, the body that resolves all labour-related matters in The Bahamas, told Tribune Business that discussions were focused on increasing maternity leave from the current 12 weeks to 14 weeks initially, then to 16 weeks.

However, he warned that talks are only in the “initial stages” and “there’s a lot that’s got to be considered” before any reforms are introduced. Among the key issues to be decided are who pays for any extended maternity leave, and how much, Mr Goudie added, suggesting that the financial burden would not be borne by employers but, rather, the already-struggling National Insurance Board (NIB).

With NIB contribution rates already being increased to ensure predictions that its $1.4bn reserve fund will be exhausted come 2029 do not become reality, he questioned whether a further raise will be necessary to fund extended maternity leave.

And, with the National Health Insurance (NHI) Bill debated in the House of Assembly last week paving the way for the scheme to be financed by both employers and the self-employed, Mr Goudie said companies which are already “very stressed” by the ever-increasing cost of doing business in The Bahamas are likely to face yet another financial burden.

As a result, he warned that the ever-increasing expense burden could drive more Bahamian businesses “from the formal into the informal economy” where operators frequently pay no VAT, Business Licence fees, NIB contributions or any other taxes to the Government.

Noting that extended maternity leave will impact micro, small and medium-sized (MSME) businesses the most, as they simply lack the staff to fully cover for absentees, Mr Goudie told Tribune Business: “We’re not looking at 18 weeks. We’re maybe looking at 14 weeks, and eventually 16 weeks. Eighteen weeks isn’t standard at all, but we are looking at 14 initially, and then 16.”

This contradicts Sharon Martin, the Tripartite Council’s chair, who last week said 18 weeks “is at least standard”, but Mr Goudie said he was confident in his numbers and would not “get into an argument”. He added: “We’re also looking at paternity leave, but all this has got to be discussed with NIB because they’re the ones who are going to be paying for this.

“Effectively, it’s not going to be the employers who are going to be paying for it. It’s going to be NIB. The point is that NIB is struggling. We have to look at who is paying for what because NIB contributions will have to be increased to pay for this, and we have NHI talking about increasing funding. Who’s going to pay for that?

“The employers are going to have to pay for that, and so are the employees,” Mr Goudie added. “They keep coming up with this wonderful stuff, and it is wonderful stuff, but somebody has got to pay for it and somebody has got to pay NIB contributions. If you’re going to increase maternity leave, and introduce paternity leave, I have no problem with it but somebody has got to pay for it.

“It’s up for discussion, and then we have to consult with employers, consult with NIB. There’s whole bunch of things to be considered here. I know Pia Glover-Rolle [minister of labour and the public service] wants us to do this, but geez, we have to figure out who’s going to pay for it, when and the rest of it. There’s a lot that’s got to be considered before we introduce it.”

Asked what employers are most concerned about, Mr Goudie replied: “Cost. Period. We’re talking about cost because NIB contributions are going to have to go up, NHI is going to look for contributions. We’re worried about costs. I don’t care what BPL says: Their rates have increased and the cost of doing business is increasing, not decreasing.

“We’re very stressed. The question is how many can afford it. I’ll throw you one other nugget out there. If we keep increasing the cost of doing business, we start driving the formal economy into the informal economy and, if we do that, then less people are paying into NIB and everything else. 

“If you keep doing it you are going to drive the formal economy into the informal economy and we are going to reduce the tax contributions. It’s simple. It’s really simple.” Businesses yesterday also warned that extending maternity leave beyond the current 12 weeks may prompt some employers to hire women who are past child-bearing age.

Small business proprietors, in particular, voiced concern over the cost of temporary hires to fill the void as well as training and paying for at least one-third of that time off. Robert Nabb, Chappies Pharmacy & Drug Store’s proprietor, said while he does see a need for maternity leave to be extended, as a small business owner he knows the strain that would bring. 

“Larger businesses might be able to absorb the manpower, the shortage kind of thing, but in a small business where you’re hiring less than ten people and you have someone going out on maternity that puts a strain on the business in that you have to then maybe hire someone temporarily,” Mr Nabb added. “They’re not sure how the operation operates, and what it does. 

“I think in our case it would make us less likely to hire younger people. Because, obviously, older people are less likely to be going on maternity leave. Someone in their mid to late-thirties are pretty much finished with that stage of their life.

“Whereas someone in their twenties, you can’t expect them not to start a family. And so the small businesses, you’re going to be a little less likely to hire younger people because you’re concerned about maternity leave and extended maternity leave on a frequent basis.”

Cheryl Cambridge, owner of Cheryl’s Bahamas Taxi & Tours, added that The Bahamas cannot handle extended maternity leave, suggesting even 12 weeks is too much. She, too, added that companies would probably hire women who do not want children or those of an age where it is less likely they will become pregnant.

Ms Cambridge said she cannot afford to pay employees on extended maternity leave, and hiring a temporary worker could very well lead to a permanent position for that person, putting the new mother’s job at risk if they “end up working better than the person that went on maternity leave”.

Noting that she is both a mother and a grandmother, Ms Cambridge stood firm on her belief that maternity leave may not be the best idea for The Bahamas. However, she acknowledged that some women who experience health-related issues due to pregnancies could benefit from an extension. 

“I think 20 weeks would be ridiculous,” Mr Nabb added. “I think 18 weeks would also be a strain on a small business. Sixteen weeks is four months. In a business like ours, to have someone out for four months, we probably can make it but we would have to hire someone on a temporary situation.

“And to train them and to teach them the things they need to know, by the time they have grasped that, the person is ready to come back. So it is a challenge. It will be very challenging for especially small businesses.”

Mr Nabb added that larger companies have begun sub-contracting workers, such as janitorial services, as a way to avoid labour concerns

Taking the opposite approach, Peter Roker, operator of Roker’s Gas Station, added: “At some point in our lives, in our society, we have to come to grips with what’s important.” Mr Roker supports extended maternity leave, and said 95 percent of mothers, including new mothers, must work out of necessity, but he sees the value in providing them with ample time to bond and nurture their newborn. 

“A big, big, big factor is nowadays, through necessity, most mothers work. I think that extra time, say another six or eight weeks, would allow them to bring that child to a higher level of independence, and therefore, I think it’s worth doing it,” Mr Roker said. “I really think it’s a good idea. I would say at least 20 weeks.”

He added that “the cost of something is the cost of something”, said but society must “understand what’s more important”. Mr Roker said even if he must hire another employee to fill the gap, he may very well end up with a worker he would like to keep along with the new mother. 

“Another thing I don’t think anyone is really looking at is it is immensely important for that child to be breastfed,” he said. “In my opinion,  breastfeeding is not only a good idea, but it might be the most essential thing in raising a child because the mother has all of the things in her, all of the things that ward off disease and difficulties, and also the bonding.... The bonding becomes so important because of the closeness of that child to the mother, not only to get the milk, but to feel that warmth.”