BEC to Govt: Give us enough notice for wage hikes, legal changes

Recent wage hikes and the introduction of paternity leave have been rolled out too quickly for businesses to absorb without strain, the Barbados Employers’ Confederation claimed on Monday, as it urged better planning around labour reforms. 

BEC Executive Director Sheena Mayers-Granville told Barbados TODAY that while employers were not inherently opposed to improving worker benefits, the speed at which policies are being implemented was creating logistical and financial strain.

Leading her concerns was the recent trajectory of the minimum wage, which saw increases last year and again in January. Mayers-Granville noted that the primary friction point for the private sector was the “sudden implementation” of these policies.

“One of the things we have consistently advocated for is adequate notice for changes in legislation, changes in wage policy, because employers need time to adjust and adapt,” Mayers-Granville said.

Beyond the direct cost of labour, businesses face technical hurdles when policies change abruptly, she said. “Many persons have computerised systems that need to be changed. Even when we’re changing Social Security rates or tax rates, employers need time to ensure that they can adjust their systems adequately.”

The BEC executive director also warned that wage growth must be viewed through a “360-degree” lens that includes productivity.

“Cost of living is a factor, but we also have to look at productivity improvements… workers need to earn wages, but we also need businesses to grow to be able to sustain wage growth,” she said.

Turning to the newly legislated paternity leave, Mayers-Granville revealed that the BEC was an active participant in the committee that recommended the move but its support was contingent on the long-term health of the National Insurance and Social Security Service (NISSS).

“Our major concern lay in NIS’s ability to manage that,” she told Barbados TODAY. “Our major recommendation was that we should have an actuarial study on the impact before the implementation.”

While expressing satisfaction that the study was conducted, Mayers-Granville noted that the rollout of the legislation last year still lacked sufficient “lead time” to properly brief employers on the new requirements. Despite the short notice, the BEC has since embarked on an education campaign to ensure member compliance, she added.

The BEC head highlighted that the new legislation provided a level of financial relief for some. Prior to the law, many “proactive” employers offered paternity leave as a private benefit, bearing 100 per cent of the cost.

“Paternity leave is actually covered through NIS now… so having some of that being carried through NIS is a plus for those employers who were proactive in providing paternity leave,” Mayers-Granville said.

While the shift helps balance the costs for some, the BEC head said the ultimate goal remains ensuring the social security scheme is “positioned [so] that it can manage the social protection items that we would want as our society develops”.

The BEC is expected to return to the issue on Wednesday, focusing specifically on the intersection of pay and productivity in the economy.

 

(RR)