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Contractors oppose strict permit policy

Small construction firms could be forced out of business if a strict ratio of work-permits to apprentices policy becomes the rule in Bermuda.

That is the concern of the Construction Association of Bermuda, which is questioning the policy shift and has taken out a half-page advertisement in today’s Royal Gazette to explain its own position.

Alex DeCouto, president of CAOB, said the organisation supported the idea of encouraging Bermudians into the construction sector but the idea of a strict ratio of work permits apprentices will cause problems, particularly for the smaller companies and firms.

The association points out that over-employment and the competition for skilled Bermudians has risen to such a high level that businesses at all levels are finding it difficult to keep hold of local staff and it views the ratio work permit/apprenticeship policy as flawed.

“It is the specific mechanics of using the ratio. We have been working with the Immigration Department and they have been consulting with us,” said Mr. DeCouto.

“We would like to think that is ongoing. Our recommendations to them were not to use a strict ratio because of those mechanics, because it will end up trapping a lot of smaller guys.

“The association is very supportive of encouraging more companies to train Bermudian apprentices and more companies do need to do that. But I think doing it this way is going to be detrimental overall, especially for small business.”

As an example he asked what would happen if a small business with a couple of expats and a couple of locals and one apprentice lost its apprentice because that person went to work for another company offering a little more money. Would the company then be obliged to lose one of its expat workers as a consequence?

If the answer is yes, then the possibility of some of Bermuda’s smaller construction firms struggling to operate and possibly closing down becomes real, Mr. DeCouto warns.

He has uncovered Government statistics that show there are more than 700 construction firms on the Island and of the 3,494 workforce, only 928 (26.5 percent) are non-Bermudian.

A similar one-for-one work permit/apprentice ratio to apply in the international business sector also appears to be on the cards according to an interview given by Premier Ewart Brown in the latest issue of Risk and Insurance magazine.

The Royal Gazette is currently seeking confirmation from the Premier’s office about those comments.

Mr. DeCouto said: “The idea that more needs to be done to encourage Bermudians into certain sectors is legitimate and there are ways to go about that.

“Looking at the Good Corporate Citizen programme; a company might be able, if they can’t find a Bermudian for a particular position, to do other things to contribute and have that recognised, whether it is a contribution to a scholarship or maybe a career fair — some less tangible ways that indicates they are doing their part.

“You have to recognise at some point that despite all these best efforts there is just a shortage, there are more jobs than locals.”

Companies are searching for apprentices but they are not easy to come by, Mr. DeCouto said.

“There are not a whole lot of people out there willing to start at the bottom of the tree. The infrastructure is there. If the Immigration Department says it is going to beef up this Good Corporate Citizen programme and you are going to see real benefits, if you qualify — by contributing to apprenticeship programmes or scholarships or whatever — there will be benefits to it. Companies will be lining up and saying ‘I’ll participate, I’ll have an apprentice or I’ll contribute to a scholarship programme or whatever’.”

That type of programme would be more feasible to create a real training process, he feels.

Mr. DeCouto added that the CAOB appreciated being consulted by the Immigration Ministry on issues such as the permit/apprentice ratio matter and hopes to continue working together towards improving opportunities for Bermudians in the industry.