BWU, Government advisor defend hotel worker initiative

Barbados’ largest private sector trade union and Special Envoy to the Prime Minister Professor Avinash Persaud have slammed suggestions that a government-sponsored proposal to place laid off hotel employees back into the workforce was an underhanded attempt to swindle the workers of impending severance payments.

In a statement released over the weekend, the Barbados Workers’ Union (BWU) described as “misguided”, the claim from Opposition Senator Caswell Franklyn, contending that the union had already been assured that no such fallout would result.

The programme, which was announced last Thursday, would allow hotel employees to be re-engaged by their employers with monetary assistance from the Government. Barbados TODAY understands that the arrangement will last for at least six months, during which hotel workers could possibly face a salary cut of approximately 20 pecent.

“We are trying to move away from the idea of simply extending unemployment benefits, funding people to stay at home, funding people to do nothing. We don’t want a zombie economy. We want an active economy where people can go back to work,” Professor Persaud explained at the time.

The following day, in another section of the media, Franklyn, who also heads the Unity Workers’ Union, advised workers to reject the proposal.

Pointing to recent amendments to the Severance Payments Act that reduce the timeframe for filing a claim from one year to four weeks after 22 weeks of unemployment, he argued that unless the four-week period was extended, longstanding workers, in particular, would be at risk of losing large severance payouts.

When asked to respond to the claims, Persaud stressed that  workers would be “far better off financially and psychologically” if they signed on to Government’s programme than waiting at home for severance.

“The status quo would see workers potentially waiting long for contested severance payments, creeping casualization at work, the underfunding of the NIS system, and a broken economy impossible to put back together. This plan aims to get people back to work in decent, long-term jobs and pay, to make their social contributions, keep their existing rights, and do this without being dependent on when tourism comes back,” the economic advisor contended.

“If people want to rely on existing arrangements, they can do so. Most I have spoken to want more a decent job and pay and more certainty and security in their lives, which is what this plan tries to deliver.”

The BWU, which endorsed the Government’s wage subsidy programme declared that there is a “clear understanding” that potential severance payments will “in no way be compromised” by the agreement.

In fact, the union contended that after learning of the new programme, some workers who previously lodged severance claims sought to withdraw them in favour of the extended programme.

“Anyone who took time to follow the labour crisis knows that the workers and serious representatives are fighting for the security of work, while ensuring the entitlement to severance,” the union’s statement declared.

“The BWU is unapologetic in declaring that speaking on behalf of workers who need the weekly protection of some income, its Executive Council has sought to extend the social welfare provisions with a benefit payout of 80 per cent of weekly earnings. There is the clear understanding that severance is in no way compromised by this arrangement,” the correspondence added. (kareemsmith@barbadostoday.bb)