BCCI refutes claim that NUPW members are being taken advantage of

The Barbados Chamber of Commerce and Industry has refuted a claim that NUPW members are being taken advantage of by the membership of the BCCI or the Barbados Private Sector Association (BPSA).

The following is a complete statement from the BCCI:

In an article carried in the Nation newspaper on Sunday 23rd May certain comments attributed to the leadership of the National Union of Public Workers (NUPW), suggested that NUPW Members have been taken advantage of by large commercial interests for too long and further stated that people must be put before profits.

Whilst the BCCI shares the deep sense of concern felt by the NUPW we stoutly refute any claim or insinuation that NUPW members or any other members of the public, are being taken advantage of by the membership of the BCCI or the Barbados Private Sector Association (BPSA).

The global increases in commodity prices for several finished goods and raw material inputs is a sobering reminder of the vulnerability of small economies like Barbados who import over 90 per cent of what is consumed locally. We also highlight, that whilst the reported comments focused on food prices, the issue is actually broader as a wide range of imported goods and raw materials in every sector will be impacted.

It has been recognized and published in local reports by the Central Bank, and international publications by the International Monetary Fund (IMF) and the United Nations Conference on Trade and Development (UNCTAD) that the reduced global supply of key goods caused prices to rise considerably over the last year. This is acutely so in the price increases for soybean and corn which rose by as much as 50 per cent or more as key value chain manufacturing inputs.

Indeed, it was recognized by the Governor of the Central Bank, that international food prices are at their highest since June 2014. The UNCTAD report also highlighted the impact of the unprecedented global container shortage and its impact on freight cost globally. The report further says that the impact on freight rates has been greatest on trade routes to developing regions such as the Caribbean.

In addition to the above, the Barbados Port Inc. (BPI) has also given notice to local shipping companies of increases in the Stevedoring Levy and Crane Hire Fees from July 2021 which will impact every container off-loaded at the port. In light of these factors, it is unrealistic to ask businesses to fully absorb the significant level of the pending increases in the cost of goods and port charges.

We however highlight that previous increases are already being absorbed partially by the businesses and that importers actively seek out more cost effective source markets in order to mitigate price hikes wherever possible. We holistically reject the insinuation that a ‘pure profit motive’ has taken centre stage, as affected members report operating on minimal margins in an attempt to maintain competitiveness and price tolerance in the Barbados market. Barbados is not immune to global shocks, and therefore educating the Barbadian public of the pending inflation is imperative as we all share the burden of managing this economy.

In February of this year, retailers and distributors within the Barbados Chamber of Commerce and Industry’s (BCCI) membership pledged to maintain price margins for personal protective equipment (PPE) and a basket of basic food items during the period of the “national pause” as COVID-19 continues to impact consumers and the local economy.

The retailers and distributors, however, did cite that the ability to maintain a pricing regime for consumers during this current period would be impacted by both local and international supplier price increases.

The BCCI reassures the public of Barbados that its members are fully conscious of the harsh economic environment we all face, and as socially responsible Barbadians, will continue to responsibly balance their ability to absorb the increased cost against the need to keep their businesses viable and maintain employment at stable levels.