ERROR RG P4 11.12.1998 A story in yesterday's newspaper incorrectly referred to Bermuda Employers Council president Garry Madeiros as blaming unions for a stalemate in labour relations on the Island. Mr. Madeiros said yesterday he was referring to both management and labour when commenting that the "desire for change in industrial relations was not shared by enough people. And more importantly the value of trust was a major missing component.'' The Immigration Department has started demanding some employers hire a Bermudian understudy for a position before work permits are renewed, the head of the Island's largest business group charged yesterday.

Bermuda Employers' Council president Garry Madeiros warned that if the policy was widely applied to the 7,000 work permits currently in force it could drive small enterprises out of business.

"Through feedback from our members who are presently in discussions with Immigration, it appears that a number of work permits will not be renewed unless there is commitment by the employer to ensure that a Bermudian has been hired to understudy the work-permit holder,'' he said. "While this is not inappropriate in some cases, it could have major ramifications if this is the major thrust of a large number of work permit renewals.'' Labour Minister Paula Cox did not respond to telephone calls yesterday.

He said larger employers are in a position to absorb the cost of such training. However small and medium-sized businesses will not have the money to pay two people for the same job.

"The profit margins for many businesses are borderline, and any additional costs burdens could well see their demise,'' he said during a luncheon speech at the Hamilton Princess.

During his speech Mr. Madeiros said labour relations in Bermuda had not improved during his two-year tenure. He indirectly blamed unions for the stalemate.

"Although I endeavoured to influence industrial relations to the extent that confrontation could be a thing of the past and co-operation a thing of the future, I determined early on that the desire for change was not shared by enough people,'' he said. "And more importantly the value of trust was a major missing component.'' Mr. Madeiros called on the new PLP Government to introduce binding and speeded-up arbitration as the final step in grievance procedures under collective agreements. Disputes currently go to mediation before Government's labour relations officers.

"Consequently many grievances remain unresolved which is not conducive to good labour relations,'' he said.

He also called on Government to consolidate the current three labour relations acts into one to make the legislation less cumbersome and confusing. The costs of arbitration, which is currently paid for by Government, should also be shared with employers and trade unions, he suggested.

"I suggest that the sharing of costs will make the parties more responsible in trying to reach resolutions instead of conveniently relying on a third party to do so,'' he said.

He said consideration should be given to declaring the docks an essential industry to prevent strikes there from harming the economy. Lastly he made an appeal for Government to set an example by not paying striking workers during industrial action.

Mr. Madeiros was speaking during the annual general meeting of the BEC. He is also president and chief executive officer of Belco Holdings Ltd.

GARRY MADEIROS -- Small businesses would suffer.