Companies which refuse to change discriminatory hiring and promotion habits could be hit with fines as Government puts teeth in laws recording race in workplaces.

The move comes after years of statistics showing blacks are still a minority in executive positions, down from 29 percent to 27 percent last year.

Community and Cultural Affairs Minister Wayne Perinchief said the legislation, which is likely in the next House of Assembly session, had been drawn up after consultation with major employer bodies.

And racial quotas have been ruled out said Mr. Perinchief who explained Government wasn't trying to be punitive.

n an exclusive interview with The Royal Gazette he said: "We recognise the dynamic make-up of the workforce. Quotas are unnecessary targets. They don't really work. We prefer other measures."

But he added: "We can no longer leave the issue of imbalance and under-representation of blacks in the workplace to good will.

"The Government has now shifted to legislating those same principles of workforce empowerment."

Currently employers of more than ten people fill out an annual survey on the racial, gender and nationality breakdown of their workforce, detailing the salary and promotion hierarchy.

If companies were doing badly they might get interviewed by the Commission for Unity and Racial Equality (CURE) ¿ but only if the company agreed.

But under the new law, affecting companies with 40 or more employees, bosses will have to root out areas which could have contributed to institutionalised racism and put forward programmes to iron out disparities.

Companies will not be sanctioned if their demographics stay the same ¿ but failure to prove they have even changed their human resource policies could lead to fines or even a board of enquiry.

CURE will make recommendations to companies having no success in changing their hiring and firing culture.

The new policy will be policed by a team of compliance officers who will also educate companies on improving employment practice.

"This gives CURE teeth," said Mr. Perinchief. "CURE has transitioned from being a policy making entity to one that includes enforcement."

However he added: "By the time this legislation comes into force companies should be compliant. So this won't bite you at all."

Asked about why the workplace demographics had not changed Mr. Perinchief said: "I believe there's an element of racism in the maintenance of the white male in middle and upper management."

He said companies formed habits by hiring white males in their own jurisdictions.

And when they moved to Bermuda it caused tension, particularly as companies often stayed for decades, despite the perception they were always on the move.

"It is no more than correct that they should have an influx of employees from the local population."

Government said a voluntary code of practice brought in ten years urged companies to have a diverse panel of recruiters but with no significant change in evidence, more needed to be done.

Employers often blamed Bermuda's education system on why they didn't hire more local blacks, claiming they lacked the skills sets, said Mr. Perinchief.

"That's partly true. We recognise our education system in the public school for the last 20 years has been somewhat deficient."

But he said that didn't explain why more blacks weren't hired after graduating from private schools.

There were more blacks entering accountancy said Mr. Perinchief but blacks also needed to think of international business as a career.

The Minister also said firms were hiring blacks from abroad, which at least helped changed the mindset within companies.

Human resources people were privately also complaining that there was residual racism in promotions, bonuses and pay for employees in similar jobs said Mr. Perinchief.

"These occurrences will be documented and subject to redress once we put this employment legislation in place. At the moment all we can do is ask for redress."

Sometimes unfairly treated employees were too frightened of possible sanctions to complain said Mr. Perinchief who said CURE could also help foreigners who were discriminated on the job.

"At the end of the day we will just have a healthier workplace."

Companies will be forced to communicate their plans to their employees but Government is not yet sure whether companies will be required to submit policies annually or upon request.

Government is also helping companies by putting a graduate registry online to make them aware of qualified Bermudians about to enter the job market said Mr. Perinchief who added that next month CURE will run race in the workforce workshops.