Ed Ball

Government has long been seen as a safe job for black Bermudians. In his latest report on the wealth gap between blacks and whites highlighted in a recent survey, Matthew Taylor asks: Is it time to get out of the comfort zone and seek far greater fortunes in international business?

Government's frustration over the lingering wealth disparities between the races is obvious but are its own hiring practices partly to blame?

While blacks traditionally might have seen the public sector as a safe and steady career with a clearly recognised promotion path, the big money in Bermuda is surely to be had in the private sector.

Yet the figures show Government continues to grow exponentially, taking much of the Bermudian workforce with it, leaving more gaps in international business to be largely filled with white foreigners.

That disparity could be one of the key reasons behind why whites earn, on average, 40 percent more than blacks.

Government's growth is indisputable. In 2000/01 Government employment stood at 4,627. Today it is 5,815, a rise of nearly 1,200 people or more than 25 percent in less than a decade.

In The Shift, a research document produced by the Bermuda Employer's Council (BEC), figures show that from 2000 to 2006, the national percentage of black Bermudians working dropped in absolute terms from 76 percent in 2000 to 69 percent in 2006, in tandem with an overall decline in the percentage of all Bermudians in the national workforce.

Yet there's been a consistent increase in the number of Bermudians working for the Government. Government has gone from employing 14.8 percent of the national workforce in 1981 to 17.1 percent in 2006.

Of the total of 2,212 Bermudians added to the workforce between 1981 and 2006, Government absorbed 43 percent, according to the BEC.

And 81 percent of public administration jobs are filled by black Bermudians, according to Government figures.

BEC researcher Larry Burchall wrote in The Shift: "The public administration employs black Bermudians in disproportion to the ratio of black Bermudians in the total national workforce, which results in fewer black Bermudians being available to the private sector and thus impacts the racial balance in the private sector."

A continuation of this trend will result in more non-Bermudians being imported to fill the gaps in the public sector, said the BEC.

Beyond the burgeoning public sector, the big question is why black Bermudians are opting heavily for Government jobs.

Bermuda Public Services Union head Ed Ball said some wanted to be career civil servants while others felt it was a better option than the private sector which was more arbitrary in its hiring, firing and promotion practices.

"Yes, blacks will come to Government, they will get guaranteed health insurance when they retire, they will have a defined benefit pension, one of the only remaining ones in Bermuda. The benefits and privileges are good," he said.

Advancement in the private sector might depend on whether a person plays golf or was similar in culture to the bosses, suspects Mr. Ball.

On the plus side he said the private sector will push those who have initiative, who are not whiners.

"Unfortunately there are a lot of people sometimes within Government who whine, they feel they are the only ones hard done by.

"In the real world you pick up the pieces to do what you've got to do in order to make it work. The private sector will reward those willing to do that it's called hard work."

Asked if Government needed to think about hiring more expats to leave a larger pool of Bermudians to have a go at getting the more lucrative private sector jobs, he said the opposite was needed with Government needing to up its pay rates to compete for local talent.

Government is already trying to bridge the pay gap by looking at pay grading said Mr. Ball.

At one point there were a lot of Bermudians leaving Government. Some were headhunted by the private sector for specific expertise. If Government wanted to keep the prisons, customs, Police and fire service fully staffed they had to pay competitive salaries with the private sector, said Mr. Ball.

"From Government's perspective they can't get enough Bermudians. That means you have to make the salaries competitive, have a training programme but also put down strict stipulations on persons coming in because you are investing so much money."

While recognising Government needed to be as efficient as it could Mr. Ball said a lot of services it offered would not be available to the Bermudian public if it was left to the private sector, which wasn't always as efficient as was commonly made out and also had to make a profit.

While a glance at the Budget book reveals Government offers some very attractive pay rates at the very top end Mr. Ball explained those picking up salaries of around $200,000 were the likes of Chief Justices, Financial Secretaries, the Deputy Governor, Magistrates and the Cabinet Secretary – in short, a very small group.

Permanent Secretaries, the top civil servants in each ministry, earn around $150,000 while the bulk of civil servants, said Mr. Ball, are earning between $50,000 to $66,000.

Bermuda Employers Council executive director Martin Law said he had urged the Commission for Unity and Racial Equality (CURE) to research the lure of Government to black Bermudians because it was such an important topic.

"On a personal level, I suspect that a lot of black Bermudians have a comfort level with Government as an employer that is not there in equal measure for the private sector.

"It is a situation that would benefit from further study."

CURE chairperson Michelle Scott said Government has long been known as the employer of choice for those seeking fair and secure wages and employment.

She said: "The international business sector is a relatively new industry in comparison to industries such as the civil service and hotels, where traditionally, blacks held most of the jobs.

"Blacks have consistently made progress in the civil service, successfully moving up the ladder to executive and senior management levels.

"In hotels, during the 80s when that industry was contributing the most income to Bermuda's economy, the union was there to protect and promote the interest of all Bermudians.

"Comparable structures and processes to protect and promote the interests of blacks and Bermudians in general, are not found in the international business industry."

She said Government has a wage structure that is documented and comparable across departments.

"Additionally, the educational qualifications needed for each job are detailed thereby lessening the risk of bias.

"Within the international companies sector, though job qualifications are shared, wages for each employee are only known to that employee.

"To reverse the trend of blacks in government, the international business sector must be seen as operating fairly with open policies, procedures and a structured and shared wage schedule for all positions within the company."

However Association of Bermuda International Business chief David Ezekiel said: "International business is a tremendous career for a young Bermudian to take, be they white or black."

Speaking after Government revealed whites were earning 40 percent more, on average, than blacks, he said: "The last thing that should happen is for anyone to see these numbers and get discouraged by them, that is the danger in reading into the numbers without doing a whole lot of study.

"Government is very appealing to many, but international business offers the chance to train or work in other domiciles the opportunities for young Bermudians are endless.

"I would encourage them to come in. I can assure them that the hiring and compensation structures are fair."

l Tomorrow: Bermuda's economic inequality is starkly illustrated in its capital where Front Street has long overshadowed the 'back of town'. However, help is on hand for businesses in North Hamilton as Economic Empowerment Zone Agency director Erica Smith explains.

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