Two of the island’s corporate representative organisations are warning the country to brace for more job losses in the private sector if business activity does not pick up quickly.
Chairman of the Barbados Private Sector Association (BPSA) Edward Clarke has cautioned that the country can expect companies to take some drastic measures to remain in business, including layoffs, if economic activity does not improve in the next few weeks.
He warned that with revenue having dried up in some cases and being “very poor” in others, businesses will do what they have to do to survive.
Clarke said while some people have gone back to work in a number of businesses which were allowed to reopen, things could take a turn for the worse if revenue remains dormant or non-existent resulting in more job losses.
“What is being assessed now is what will happen if business does not pick up in the next couple weeks, next few weeks. Revenue is going to drive the decision-making. Unless businesses have revenue to support the organisational structure and staffing structure they will have to make decisions,” Clarke told Barbados TODAY this afternoon.
“Once they follow the due process, you would expect people would have to make decisions for the survival of their businesses,” he added.
The private sector spokesman said he hopes things would change for the better sooner than later and that Government would expand the opening hours of business and allow more retailers to resume operations where practicable.
Clarke is also calling for the reopening of some restaurants in the near future while acknowledging that all this hinges on the health protocol and the continuing “good outcome” of the COVID management.
“But things are slow and we are having to manage the situation day by day and hopefully things will improve…but right now it is not a good situation for businesses in Barbados at this time…very weak performance overall. Many businesses have to make some serious decisions in the next few weeks, if things don’t change,” he reiterated.
And President of the Barbados Chamber of Commerce and Industry (BCCI) Trisha Tannis is also expecting more people to go home in the coming weeks and months.
But while she anticipates additional layoffs, she is urging business leaders and owners to ensure they follow due process as provided for in the Employment Rights Act.
“I would take the opportunity to encourage the members of the private sector, where they are contemplating or in the process of laying off, to remember to ensure they follow due process where the labour representative is concerned and the Labour Office as well,” the BCCI president told Barbados TODAY.
The business sector leader disclosed that the Chamber has been getting complaints that some employers were “progressing with certain actions without due process. And I would just like to take the opportunity to remind the private sector to follow the appropriate protocol.”
Tannis also warned that she expected the current bleak business conditions to continue until year-end especially if tourism remains in the doldrums.
She noted that a series of major festivals which would have boosted tourism have been cancelled for this year including the United Nations’ Conference on Trade and Development (UNCTAD) Conference slated for October.
“Obviously the spinnoff and trickle down benefits to the economy are going to be missed. So it remains to be seen how long…how deep, this is going to be. But we may be in for a bit of a long haul. It may not be before 2021 before we begin to see some recovery,” the Chamber head declared.
“I do think there is going to be a bit of a contraction for a while. As you know, the employment levels are very high and traffic flows are still very sedate,” Tannis stated.
“It is good to be able to reopen…that helps. But traffic will still be significantly down versus the prior years. I think it will be a slow and gradual climb, hopefully back to some level of buoyancy, but that timeline is likely to be protracted,” she said.
Meanwhile, Government and other members of the Social Partnership are consulting on a plan proposed by Prime Minister Mia Mottley that is designed to give the political directorate more elbow room to help the economy rebound from the effect of the COVID-19 pandemic.
The Prime Minister has proposed what was initially termed a “forced savings plan” now known as a National Meeting Turn that offers “National Pandemic Solidarity Bonds” as part payment for salaries.
The bonds are to be redeemed at the end of four years at high interest rates but can be cashed in at financial institutions before the maturity date.
emmanueljoseph@barbadostoday.bb
