“Europe has begun to mandate gender parity in businesses by way of quotas…”

— Emily Chang (Brotopia: Breaking up the Boys’ Club of Silicon Valley 2018)

The way forward

In 2011, I put forth a draft proposal to the newly installed Premier of Bermuda, Paula Cox, in my capacity as consultant to the Premier that if implemented by the Government would have resulted in the codification legislatively of a Bermuda-style affirmative-action policy designed to reserve a percentage of the annual procurement expenditure specifically for majority Black-owned businesses. Subsequently in 2018-19, a revised draft was submitted by me to a sub-committee set up by the Government that went nowhere.

As is the case now, the expenditure on procurement by the Government to source goods and services largely in the local economy was substantive. During most of the period from 2000 to 2007, the Government routinely spent just over $200 million per annum. A significant percentage of that, though, goes to consultants, etc.

By the 2017-18 fiscal year, that expenditure had declined to $150 million, which is still a significant outgoing in an economy the size of Bermuda’s. Notwithstanding the above, and although Black Bermudians comprised just under 60 per cent of the resident population circa 2020, close to 80 per cent of the contracts signed to provide goods and services to Bermuda’s government are still controlled by largely White-owned companies.

Despite the numbers in question and that we had a set of PLP governments during the period from 1998 to 2012 that were nominally committed to racial justice, there was no attempt beyond a somewhat capricious and desultory manner to alter the status quo in a systemic, sustainable and comprehensive way. The following proposals are drafted to address this public policy lacuna or gap.

There are two public policy structural goals in the area of race-specific remedies which are necessary to achieve equitable outcomes that require urgent addressing by our government and which will need codification in some instances — under law within an affirmative-action framework:

1, The implementation of a revised workforce equity Bill that is designed to remedy the racially discriminatory practices of previous decades that had the effect of disadvantaging qualified Black Bermudians with respect to hiring, promotions, salaries and benefits — and by doing so advance the goal of racial equity and racial inclusion within our private sector, especially at the corporate level. There is no need to reinvent the wheel here; only to identify the weaknesses in the draft Bill as identified.

2, Ensuring that the Government uses its legislative and regulatory powers to achieve the goal of racial equity and racial inclusion in order to achieve the same as articulated above. This set of proposals is designed to powerfully assist and facilitate the growth of a Black-dominated business sector consistent with the Government’s presumed racial justice objectives.

Background

Before addressing new proposals, let’s quickly address the legacy Bill under consideration. The most critical flaw of the “Workforce Equity Bill” proposed under former minister Wayne Perinchief and the lack of enough political support on the part of his ministerial colleagues was that the penalty provisions were deemed not robust enough to disincentivise racial bias — conscious or subconscious. It is recommended that this deficit be addressed under a revised Bill that would merge and contain the additional recommendations below.

Proposal I

This proposal in question would have mandates set aside for the identified category —majority Black Bermudian-owned businesses — and would increase the percentage of contracts to be set aside annually via a graduated scheme over a five-year period.

Commencing in 2021

• 2021 20 per cent of procurement budget would be set aside or reserved

• 2022 30 per cent

• 2024 50 per cent

For the purpose of the proposed legislation (definition):

• A Black Bermudian-owned business would be one that was majority owned by Black Bermudian status holders

• Moreover, the legislation would designate that for the purpose of the Act, the majority ownership would be one constituting no less than 80 per cent of the respective company. This would then provide for a minority of non-Black ownership as an option but representing no more than 20 per cent of the ownership

• In the fifth year, the scheme would top out at 50 per cent of the expenditure for that particular fiscal year

• In addition, the draft proposal also recommends a sunset clause that would see the legislation rescinded after 25 years

Proposal II

Notwithstanding the recommendation with respect to the procurement process, what can really accelerate growth and success in terms of effectiveness under a prospective affirmative-action framework is as follows (note this proposal would need to be fleshed out substantially):

This proposal would result in the Government mandating that every company which requires government approvals — regulatory or legal — for major projects such as construction or other forms of major development projects and domiciling on island would have to comply with and agree in return to affirmative-action-style goals set by the Government in the areas of employment, contractors/subcontractors, vendors, etc.

So, for example, if Company A wishes to establish a presence in Bermuda, which more than likely requires government/ministerial approvals, it would have to agree to comply with a prospective mandate to have 60 per cent of its workforce hires as qualified black Bermudians and, likewise, that its vendors supplying goods and services would be 50 per cent Black Bermudian-owned companies.

Note: there will be some critics that contend that some of this is being done already, but unless it is race-specific as opposed to being colour-blind in terms of its key criteria, it is not being done. The term “small business” can no longer be a proxy or substitute for the above. The 25-year sunset clause would be applied for this proposal as well.

In closing

Another supplemental proposal would have seen the mobilisation of the Government and/or agencies to offer the necessary support services to prospective Black businesses to ensure that these companies — particularly those in the small to medium-sized category and/or those that are new — are not being set up to fail, which could undermine public support for the programme.

BEDC

In this regard, the Bermuda Economic Development Corporation and other government and/or public agencies would be critical to the success of the programme and would have to be enlisted to provide support services that may be identified such as:

• Facilitating access to capital in partnership with financial institutions

In addition, the role of the Office of Project Management and Procurement would be critical in terms of facilitating a robust and comprehensive public-information campaign to ensure that there is sufficient public and business awareness about the programmes.

Summary

These are programmes that would require committed political support to be successful. The first step would be for the Government, once committed, to then make not only the moral (racial justice) case but also the economic case, as increasing research indicates that those economies characterised by inclusiveness do better than those that are not. In terms of racial inclusivity, Bermuda has not been a paragon of virtue.

One can make the case that our racial divide has been a drag on economic growth and has only reinforced income and wealth inequality, as the most lucrative sector of our economy has experienced significant growth — that being international business — but it is also one in which over the past four or more decades Black Bermudians represent a marginal presence. This reality in Bermuda powerfully intersects with and has exacerbated our pre-existing racial disparities.

The result has been a continuation of the underdevelopment of Black Bermudians, not only coming out of slavery but that which continued in the post-emancipation period throughout Bermuda and the British Empire. Let us address the long-neglected need for compensatory public policy remedies so that we can close this chapter of our history. This should be viewed as part of an overall reparations programme that is needed to repair and heal our social fabric as Bermudians.

• Rolfe Commissiong was the Progressive Labour Party MP for Pembroke South East (Constituency 21) between December 2012 and August 2020, and the former chairman of the joint select committee considering the establishment of a living wage