By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The informal economy and unsafe working conditions are “high on the agenda” for the National Tripartite Council, it was disclosed yesterday, as both private sector and unions agreed with some US concerns.

Peter Goudie, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) labour chief, and private sector Council representative, was united with Obie Ferguson KC, the Trades Union Congress president, as both agreed findings by the US government that this nation struggles to enforce the Health and Safety at Work Act have some merit.

The assertions, contained in the US State Department’s annual human rights review of The Bahamas, were accompanied by an estimate that the so-called “informal economy” - in which businesses operate in an unregulated environment with no protections, paying no taxes themselves or on their employees’ - accounts for between 10 percent to 12 percent of all economic activity in this nation.

Mr Goudie told Tribune Business that, while he has no supporting data, that estimate appears to be “on the low end” as he acknowledged that The Bahamas simply lacks enough trained inspectors - especially on the Family Islands - to enforce the law’s requirements when it comes to workplace safety.

“I don’t know that they do enough to enforce the minimum wage, and don’t forget we have a very large - and I would like this emphasised - we have a very large informal economy in this country where people are being employed but nobody is paying National Insurance Board (NIB) contributions for them. That’s a reality,” Mr Goudie said. “The National Tripartite Council is going to address that.”

The US Human Rights report on The Bahamas said: “The informal economy was estimated to represent 10-12 percent of the economy, primarily in the landscaping, construction and hotel industries. There was limited enforcement of labour laws in the informal sector.” To which Mr Goudie said of the percentage: “I actually think it’s higher but I have no evidence. My gut says that’s on the low end.

“On the occupational health and safety laws, the National Tripartite Council is address that through ILO (International Labour Organisation) certification, and we’re also going to add regulations for the Health and Safety at Work Act. That’s being addressed by the National Tripartite Council. That and the informal economy are big on our agenda.

“We’re aware of it. We’re trying to address it, and know there are not enough inspectors, but there are some at the Department of Labour and they do enforce some of it, but we need to broaden it. That needs to be addressed. Some of the stuff in Nassau is addressed, but not in the Family Islands, and I know a couple of establishments that are not in good shape,” Mr Goudie added.

“We have too many islands and not enough inspectors. We know that. Again, we are addressing the Health and Safety at Work Act at the National Tripartite Council and will do what we can to enforce it. It’s high on our agenda, very high on our agenda. It has to be addressed.”

Mr Goudie said workplace issues were more likely to be a problem for smaller firms, as opposed to their larger counterparts, as they simply lack the budgets and resources to focus on health and safety. “‘Mom and Pop’ shops, they’re not paying attention to that,” he added. “They cannot afford to. Let’s get serious. That’s where we are.”

The US State Department report said of The Bahamas: “The Government set occupational safety and health (OSH) standards appropriate to the main industries. Some workers in construction, agriculture, informal tourist operators, engineering and informal sectors endured hazardous conditions.

“These workers could not remove themselves from situations that endangered health or safety without jeopardy to their employment. The Government did not proactively identify unsafe conditions, but instead only responded to OSH complaints.

“Typically, persons who were unable to work because of hazardous conditions were protected from dismissal. However, there were no statutory provisions that guarantee paid leave.” 

As for enforcement, the US Human Rights report added: “The Government did not effectively enforce minimum wage, overtime and OSH laws. The Ministry of Labour was responsible for enforcing labour laws, including standards for minimum wage, work hours and OSH. Inspectors had the authority to make unannounced inspections and initiate sanctions, but infrequently conducted random site visits.

“Inspectors levied fines to enforce OSH standards and to investigate employee concerns and complaints. Penalties for violations of OSH, wage and work hour laws were commensurate with those for similar crimes such as fraud or negligence. Penalties were rarely applied against violators. The number of labour inspectors was not sufficient to enforce compliance.”

Mr Ferguson, the TUC president, joined Mr Goudie by agreeing that The Bahamas both lacks sufficient inspectors and does not fully enforce laws mandating workplace health and safety. “We don’t have the mechanisms in place to properly deal with these things,” he said. “We don’t have inspectors who are properly trained.”

The union chief said this left both employers and employees potentially exposed - the former to potential liability for workplace accidents and unsafe behaviour by staff, and the latter to an environment where their health and well-being could be in peril. He also questioned whether inspectors have the training and experience to fully investigate workplace accidents, determine the cause and recommend reforms.

“I’m going to make sure that becomes an issue on August 18 at 6pm,” Mr Ferguson said, referring to an upcoming meeting of the TUC and its affiliates, at which he intends for workplace safety to be on the agenda. “I’ll get a consensus from all of my colleagues and we’ll take a public position on that at that meeting.”

The US State Department report, meanwhile, said there was also a lack of inspectors to enforce Bahamian child labour laws and regulations. “The law prohibited the worst forms of child labour. The law prohibited the employment of children younger than 14 for industrial work and any work during school hours or between the hours of 8 pm and 6am,” the report said.

“Children aged 14-17 could work between the hours of 8pm and 6am but only in hotels, restaurants, food stores, general merchandise stores and gas stations. Children aged 14-17 could work outside school hours for not more than three hours on a school day, eight hours on a non-school day or 40 hours in a week.

“The Government did not publish a list of jobs considered dangerous, although it intervened when children worked in dangerous environments, such as selling peanuts at an intersection. The Government did not publish a list of light work activities permitted for children. Penalties were commensurate with those for analogous crimes but were never applied against violators,” the US report continued.

“There were no confirmed reports during the year of the worst forms of child labour. Incidents of child labour occurred in the informal sector. Children worked on family farms and as street vendors. The Ministry of Labour lacked sufficient inspectors to follow up on reports of child labour.”