Government sticks to its guns on controverial overtime issue
Minister of Labour, Home Affairs and Public Safety Randy Horton introduced the Employment Amendment Act 2004 for the second time in the House of Assembly last night.
He said when the Employment Act was enacted: ?It was a watershed, as it ensured fair and consistent standards of employment.
?On March 1, 2002, it was acknowledged by the then Minister Paula Cox that in all likelihood amendments would be needed to enhance the effectiveness and meet agreements between the principal partners: workers, employers and Government.?
A series of consultations took place between all sectors, he said: ?For the past two-and-a-half years the Department of Labour and Training has been monitoring how the Employment Act was implemented. There was extensive consultation with the Bermuda International Business Association (BIBA)... The Bermuda Employers Council (BEC) provided feedback and data about the number of hours that people work... We also appreciated the benefit of the long experience of the Unions.?
There were 14 amendments made to nine sections, and after consultation with the stakeholders, 13 of the 14 were agreed upon, he added.
?There was one exception the payment for overtime provision,? Mr. Horton noted. ?But the Labour Advisory Council (LAC) doesn?t say that there has to be agreement on everything.
?We must make sure we are aligned with international standards... The (Bermuda Industrial Union) BIU objected that current industry standards reflect historical imbalances... No one has a statutory definition of small businesses but the Commission for Unity and Racial Equality (CURE) stated a small business was less than 10 workers.
?Mr. Speaker, while employers agree there were exceptions to the provision, BIU was against any exemptions of a 40-hour week must be upheld in every instance. But on overtime rates we have relied on ILO (International Labour Organisation) guidelines.
?We had agreement on all but section nine. Over two years this proposed amendment had gone through several consultations. The Ministry?s policy cannot satisfy everyone.
The mutual agreement (between employers and workers) that overtime rate need not be paid is at the centre of this proposed amendment to remove the opt out clause.
BEC and Bermuda Trade Union Congress (BTUC) are opposed to the amendment. BIU supports it. BTUC said Government should not make overtime compulsory. BIU stood alone on advocating it. On the basis that this is appropriate international standard.
Mr. Horton said that, according to BEC, average work weeks vary widely from profession to profession. He cited, from BEC statistics, averages of 32-60 hours for hotel and restaurant workers, 34 to 60 hours for financial and insurance professionals, 42 to 48 hours for retail employees in the summer and 35 to 38 in winter, 50 hours for truckers and 50 to 70 hours for cleaning staff.
The first Employment Act was based on the law from Prince Edward Island, The Employers Standards Act 1992, he noted.
However in this bill, the working week is a mandatory 48 hours.
?Employers argue if we derive overtime provisions from Prince Edward Island then we should adopt a 48 hour week. We listened to their argument and therefore considered 48 hours as the basic work week,? Mr. Horton said.
?But in PEI, since the province is snowed under for much of the year, and many of the industries like agriculture and fishing come to a halt, there is a seasonal nature in the work.?
Comparatively, Mr. Horton said: ?Not one of the 13 surveyed Caribbean nations ratified section 37.
?In the European Community, the average working time of a seven day week, including overtime must not exceed 48 hours.?
While, the US Employment Act from 1938 stated 40 hours is the basic work week, beyond which is overtime.
Ringing gasps from the Opposition, Mr. Horton then said: ?My decision was influenced by the BIU.
?I hope that this discussion has made clear, I was instead guided by international standards which in this case is in agreement with the BIU!
?The cost of the payment of overtime will increase costs. But businesses in Bermuda are enterprising and will find ways to remain competitive.?
?Change Government,? Opposition Leader Grant Gibbons added.
?It will take a long time,? Mr. Horton replied, then continued: ?Wise employers really concerned about their staff?s loyalty will be careful not to hold overtime in retribution.
?Businesses will adjust... There is, we believe an underground drug economy, surely though no one suggests that is a good reason to rescind laws against it.
?We will remove the individual opt out. The BTUC recommended 37 hours.
?The key question is to what extent do we really value labour as a key input to the economy? As we look for efficiency is it appropriate for overtime to be the first line of attack? Why should the sacrifice of cutting costs be borne by the workers?
?Historically, the sacrifices of Bermudian workers have made this Island a magnet for so many to want to live. Do we as a society value the work of out workforce?
?The Social Agenda dictates we advance principles that work by compassionate and fair ways. Would we be happy to work 70 hours a week with no formal recognition of time and energy they inevitably must sacrifice?
?The workers of Bermuda deserve better and a Government of Bermuda should be counted on to better the circumstances overall.?
For more coverage of the debate on the Employment Act see page 6.
