Businesses in construction, retail and banking to downsize operations

The Barbados Workers’ Union (BWU) has painted a very bleak picture faced by a shrinking job market, warning that further  cuts are on the horizon across a range of sectors.

However, while calling for the “strengthening” of labour laws and a Government-backed work subsidy, the union’s General Secretary, Senator Toni Moore has hinted at possible “militant” action on the part of the union to help force change to what now seems to be growing unease in the labour relations climate.

During a media conference at the BWU’s Solidarity House headquarters on Thursday, Moore and her council members said companies were now using the dreaded COVID-19 pandemic as an excuse to send home workers, “unilaterally” cut wages and change terms of employment contracts and to “force” workers to sign new agreements.

Stating that the conversation about layoffs needed to be broadened beyond the island’s bread and butter tourism industry, Moore said the time had also come for deeper national discussions around labour-related challenges and for the “revisiting and upgrading” of the labour administration of the Labour Department.

Indicating there was a need for sustainable recovery and continuous training of the labour force, Moore said since June the BWU has been calling on Government to provide a wage subsidy for affected workers in the form of a loan that “employers would have to repay over time”.

This subsidy, she said, would be pegged at a percentage of the workers’ salary, allowing them to engage in training and other productive areas to make sure that businesses can come back “bigger and better”.

Deputy General Secretary of the BWU Dwaine Paul pointed to several sectors he said were in the process of restructuring their operations, adding that every sector was currently experiencing some form of industrial relations matter and in some cases “an industrial relations crisis”.

He said the construction, retail, banking and finance and aviation sectors were currently undergoing restructuring exercises that will see hundreds more workers joining the already massive unemployment line of an estimated 40,000.

In relation to construction, he named Jada Group and Preconco Limited as two of the major firms to reduce their workforce.

“This plays out for almost every major construction companies on the island,” said Paul, who added that despite the promises that construction would be one of the drivers of economic recovery, this is yet to materialise.

In relation to retail, he named the island’s largest supermarket chains – Massy Stores and Emerald City & AOne Supermarkets – as the two players seeking to reduce staff numbers.

He said while Massy Stores has already started the process, discussions were ongoing as they seek to send home more workers.

In the case of Emerald City and AOne, Paul said there were “a number of staff who had  not been reengaged” and the chain is seeking to reduce its staff complement “by almost 100 people”.

He argued that despite the long lines at those supermarkets, the operators were claiming that a part of the reason for the measure was their “inability to return to normal hours” and that with the lay-offs in the hotel sector “their customer base is down”.

The union official said duty-free stores were engaging staff to help them find “alternatives in terms of new work arrangements” in an attempt to keep as many of their staff engaged as possible.

As it relates to the financial and banking sector, Paul disclosed that at least two commercial banks – CIBC FirstCaribbean International Bank and Republic Bank – would be closing at least one branch each.

“Republic Bank, I must say has been placing all their staff [in other branches] that have been affected by the decision,” Paul disclosed. “We anticipate that the banking sector is poised to make further changes as its operations have obviously taken a significant hit in terms of deferred payments,” Paul added.

In relation to the aviation industry, the union official said in addition to the layoff of LIAT workers who are now collecting unemployment benefits, the staff numbers at American Airlines were to be adjusted downward.

“Coupled with that, we have adjustments coming from the different handling companies at the airport in response to the downturn in air traffic,” he added.

While Paul could not provide exact figures of how many workers would be affected in all the sectors, he said the union continued to engage the companies in discussion.

“In the midst of all of that we are still negotiating with companies and are achieving some levels of settlements or extensions to current collective agreements, thereby extending the protections and offerings to workers across Barbados,” he explained.

Moore, who stopped short of indicating if the BWU would be planning industrial action to force the changes required in the labour climate, indicated that “when we look at the period of major labour reform in Barbados it took place through a lot more militancy”.

“There may be a speculation that is what we are talking about and perhaps it is what will be necessary for some things,” she said.

“If the Barbados Workers’ Union finds itself in a position where we are constantly advancing things on behalf of workers and then time and the laze in the system prevent solutions coming and therefore denying workers justice, then we may very well have to consider not being as sophisticated a social partner as we have become,” she said.

She said others had a view that a lot of the reform that favours labour, came to Barbados at a time when the union played a more active role politically by pushing for decisions from the inside.

In any case, Moore said the BWU was currently weighing its options and it had already signalled to the labour department, adding that the challenges highlighted “cannot be resolved by the BWU treating to them on a case-by-case basis”.

“At a meeting towards the end of July with the Ministry of Labour we had cause to mention a number of the things you heard and some other gaps that we have observed, which in a sense have had the executive council of the BWU contemplating whether another kind of approach will be required by us” said Moore. (marlonmadden@barbadostoday.bb)