Immigration Minister David Burch says controversial plans to issue expats with ID cards will go ahead in the New Year amid complaints construction firms are flouting work permit rules.

Bermudians in the credit crunch-hit industry claim non-Bermudians are getting jobs ahead of them even without work permits.

Sources say foreigners are arriving on the Island with a work permit allowing them to work for one company — but when that firm's work dries up they end up getting employment elsewhere in Bermuda, without getting a new work permit.

Others are hired to work in one trade, but end up working in another without permission, according to sources.

Employing illegal foreigners is said to be attractive because they complain less, accept lower wages and worse working conditions, and don't incur insurance and pension costs.

And as construction work becomes increasingly hard to find, tensions between Bermudians and non-Bermudians are approaching boiling point, according to sources.

Last November, Sen. Burch announced guest workers would be issued with ID cards so inspectors could visit sites and check people have the right to work there.

The plan received strong criticism, with Shadow Finance Minister Bob Richards claiming it "smacks very heavily of Nazi Germany" — but Sen. Burch has now told The Royal Gazette it remains on the agenda.

He said the initiative would start being phased in during the first quarter of 2010, warning: "Many guest workers in the construction industry are going to have to go home."

Former Construction Association of Bermuda president Alex DeCouto, the caucus chairman for Bermuda Democratic Alliance, predicted more Bermudians would get laid off as the economic downturn continues.

"The Minister for Immigration has indicated that Bermudians should come first in the workplace wherever possible. The Alliance certainly does not have a problem with that," he said in a statement.

"Bermuda is unique in that often in uncertain economic times Bermudians fare better than other nationals in their own countries since guest workers often feel the brunt of a down turn first in Bermuda.

"However there is no doubt that as the construction industry begins to slow down and major building contracts come to an end Bermudians will be laid off.

"The fact is Bermudians are being laid off in the construction industry now and we believe there are many more lay offs coming. For the first time in a generation, we are seeing that there is true competition for jobs amongst Bermudians in the construction industry.

"However sometimes non-Bermudians on work permits do get seconded from one employer to another. Government seconding Eddie Henri from BCM McAlpine to oversee the courthouse building is an example."

Shadow Works and Engineering Minister Patricia Gordon-Pamplin, who has been talking with people in the industry, said: "It appears that some employers are exploiting foreign workers by allowing conditions that are ultra vires their immigration permits.

"Immigration inspectors might have found their work easier had the Government been more proactive in implementing whistleblower legislation.

"Because of the tension that exists between foreign workers and locals, locals just might be willing to point out illegal utilisation of workers if they didn't have a fear of retaliation by their employers. I think this is the place to start."

United Bermuda Party candidate Tillman Darrell said he knows many out-of-work construction workers who have joined gangs after seeing their jobs taken by foreigners.

"I have seen," he said. "These guys that don't have jobs, they think they might as well join the gangs."