BWU triumphs with the passing of the Controversial Labour Clauses (Concessions) Bill 2024

 

Background

According to a report from the Barbados Hotel and Tourism Association (BHTA) only 434 employees out of an industry total of 14,000 people are members of the Barbados Workers’ Union (BWU). The 434 union members constitute 3.1 % of the total workforce in the industry. A significant number of hotel workers are therefore not members of the BWU. 

On Wednesday, October 4, 2023, a planned Barbados Workers Union (BWU) tour to meet with tourism workers faced disruption when three rented tour buses were suddenly called away. Led by BWU General Secretary Toni Moore, around 50 union workers were commemorating the 82nd Founder’s Day celebration and using that occasion to recruit new members to the said union.

Despite the setback, the BWU workers proceeded using their own vehicles to continue their visit to the south coast hotels. During the tour, Moore highlighted challenges faced by industry workers, including short-term contracts and denied benefits such as service charges. The union remained determined to advocate for workers' rights, pressing forward with their tour despite the obstacles encountered earlier.

Bad Treatment of Workers

The ongoing accusations from the BWU against hotel management for mistreating workers ignited heated exchanges with the BHTA, prompting demands for the BWU to present supporting evidence for their claims.

However, facilitated discussions between the BWU and the BHTA, overseen by the Prime Minister and two other Government Ministers (The Minister of Labour and the Minister of Tourism) from September 13 to December 4, 2023, yielded insights. Only a minority of employees, representing 14% of BHTA's total membership, along with one non-member, filed complaints during these talks. This suggests that while grievances were raised, they were not widespread, indicating isolated issues rather than systemic mistreatment across the industry. This underscores the need to address specific concerns while recognizing the overall stability of labour relations within the sector.

BWU Rally

During a Rally on the brink of the winter tourist season on December 14, 2023, the BWU General Secretary made a significant announcement regarding impending legislation aimed at safeguarding workers within the hotel industry. Recognizing tourism as the cornerstone of the economy and workers as its vital support, the BWU was spearheading efforts to secure improved conditions for sector employees. General Secretary Toni Moore elucidated on what she termed a "national level agreement," intended to establish minimum standards for tourism businesses seeking concessions. She said that while final details were still under discussion, several contentious issues were under consideration, including meal allowances, service charges, uniforms, and seasonal contracts.

Moore also emphasized at the Rally that because of the pressing nature of the issue, the BWU was insisting that the legislative procedures guarantee a timely presentation to parliament by the end of January 2024. 

Consultation with Other Unions

The Labour Clauses (Concessions) Bill of 2024 sparked differing opinions among labour unions, with some expressing concerns over the lack of consultation during its drafting. While the National Union of Public Workers (NUPW) and the Congress of Trade Unions and Staff Associations of Barbados (CTUSAB) voiced reservations about the absence of broader consultation, the Barbados Workers’ Union (BWU) maintained its support for the bill. 

The BWU, considered the most representative union in the private sector, emphasized the necessity for reform, citing widespread injustices faced by workers. The bill, aimed at legislating standards for workers in the hotel sector, has stirred controversy, particularly regarding the suspension or revocation of concessions by the minister responsible for labour. Despite differing views, all parties recognize the importance of ensuring fairness and equity for workers in sectors benefiting from government concessions. Also after Unity Workers’ Union voiced concern that the Labour Clauses (Concessions) bill could not just address the concerns of workers in the hotel sector, the provisions in the bill were drafted to apply to all workers employed at businesses which enjoyed concession given to them by the Government. 

Consultation with the Private Sector

Just days before the passing of the Labour Clauses (Concessions) Bill 2024, reports emerged in the media revealing that The Barbados Private Sector Association (BPSA) had taken a decisive stance against the proposed legislation. The BPSA, representing various sectors of the island's economy, expressed firm opposition to the bill, emphasizing solidarity in their resistance to its passage in Parliament.

At an urgent meeting convened by the BPSA at the Lloyd Erskine Sandiford Centre on Wednesday 7 February 2024, over 200 members gathered to deliberate on the implications of the bill and to formulate a collective response. During the meeting, concerns were raised regarding the ambiguity of the legislation, potential penalties for grievances filed by employees, and inadequate consultation with trade unions.

Representatives from key sectors such as the Barbados Chamber of Commerce, the Small Business Association, and the Barbados Hotel and Tourism Association (BHTA) were among those present. The prevailing sentiment among attendees was one of frustration and concern, particularly regarding the perceived targeting of certain industries and the lack of comprehensive consultation prior to the bill's drafting.

As the debate surrounding the Labour Clauses (Concessions) Bill 2024 intensified, the private sector remained resolute in its stance, calling for further dialogue and amendments to address the multifaceted concerns raised by its members.

Controversial Bill Passed by Lower House

On February 13, 2024, the Labour Clauses (Concessions) Bill was passed by the lower house amidst Prime Minister Mia Amor Mottley's steadfast commitment to establishing minimum standards for worker treatment across various sectors, particularly in tourism. Addressing concerns about competitiveness, Mottley emphasized that decent work should not be sacrificed for business viability, dismissing notions that meeting minimum standards would make businesses uncompetitive. She highlighted the need for inclusive growth and fair conditions, emphasizing that the legislation aims to ensure fairness, transparency, and decent work for all employees in Barbados.

Under the new legislation employers benefiting from government concessions must ensure that the wages they pay and the working hours and conditions they provide are at least as favorable as those set by standards within their industry or sector. This requirement applies to any concessions they have received under applicable laws.

The legislation also provides for wages, working hours, and employment conditions to be determined through discussions or arbitration between associations representing employers and trade unions representing employees. These discussions will involve significant representation from both employers and employees in the specific trade, industry, or sector related to the concession.

Acknowledging challenges within the tourism industry, particularly regarding labour standards, Mottley reaffirmed the government's stance against exploitative practices and unfair treatment of workers. She stressed the importance of trust and inclusivity in fostering a conducive business environment. Additionally, Mottley dismissed allegations of a conflict of interest between herself and Barbados Workers' Union General Secretary, Back Bencher and Member of Parliament Toni Moore, emphasizing their shared commitment to labour interests and dismissing such claims as misogynistic. Ultimately, Mottley underscored the government's dedication to creating a fair and equitable business landscape, where tax concessions and decent work are not mutually exclusive but rather complementary aspects of sustainable economic development.

Description of the Act as articulated by the PM

The Prime Minister articulated the Labour Clauses (Concessions) Act 2024 as a piece of legislation which is aimed at: 

• Ensuring minimum standards for how workers are treated in Barbados, including those in the tourism sector.

• Preventing exploitation of labour by setting minimum standards for businesses receiving Government concessions.

• Promoting fairness, transparency, and decent work conditions for all employees.

• Establishing a framework to consult and settle minimum standards for different sectors.

• Addressing concerns about labour standards, particularly in the tourism industry.

• Upholding the interests of labour and fostering inclusive growth in the private sector.

• Promoting trust between the government, private sector, and employees.

• Dismissing conflicts of interest allegations and affirming alignment with labour interests.

• Encouraging businesses to treat their workers well, despite concerns about competitiveness.

• Sending a message that businesses should not rely on exploiting labour to remain competitive.

Furthermore, Mottley highlighted previous instances where ministers of tourism have had to address concerns regarding short-term contracts within hotels. She also mentioned the misuse of service charges, which were originally intended to regulate increases in employees' base pay. 

How the Labour Clauses (Concessions) 2024 Legislation Will Function

The Labour Clauses (Concessions) Act of 2024, characterized by the General Secretary of the BWU as a national-level agreement, aims to establish minimum standards for businesses in the tourism and other sectors to adhere to in order to qualify for concessions. While the final specifics of these minimum conditions are pending refinement, they are anticipated to encompass contentious topics such as meal allowances, service charges, uniforms, and seasonal contracts.

Under this legislation, companies receiving concessions or engaging in government contracts will be held accountable for treating their workers fairly. The national agreement is anticipated to closely mirror the BWU's collective agreement, albeit with certain distinctions. Notably, enforcement of these standards will not rely solely on the BWU's efforts, but will also involve monitoring by government bodies including the Labour Department, the Ministry of Labour, and the Ministry of Tourism. These entities will oversee the approval or rejection of concessions, ensuring compliance with established labour clauses and upholding fair treatment of employees within the covered industries.

Challenges and Conclusion

The successful enforcement of the Labour Clauses (Concessions) Act of 2024 confronts significant obstacles, notably the inadequate resources within the labour department and tourism sector to effectively monitor compliance with the legislation. Currently, the labour department grapples with a backlog of unresolved unfair dismissal cases, some lingering for more than six years, underscoring the strain on existing capacities. Addressing this issue requires the recruitment and training of additional personnel to oversee compliance, a task fraught with logistical and financial challenges.

The use of the term "substantial portion" if still a feature of the amended legislation marks a departure from the traditional requirement of having a majority, specifically 50% plus 1, for a union to be declared the workers' representative. There is no evidence that employer organizations in Barbados such as the Barbados Chamber of Commerce and Industry, The Barbados Manufacturing Association, The Small Business Association and the Barbados Employer’s Confederation represent a substantial portion of the employers engaged in the trade, industry or sector to which the concession relates. What then are the implications for this reality? 

While it is somewhat clear that this piece of legislation appear to be aimed at assisting the BWU and gaining a stronger foothold in the hotel industry and at the same time increasing its membership it is not likely to work. The legislation makes it mandatory for employers benefiting from government concession to abide by the wages, terms and conditions of the collective agreements between the Barbados Workers’ Union and respective employer groups, it cannot force workers to join the union. 

Moreover, concerns raised by Opposition Leader Ralph Thorne regarding the legal foundation of punitive powers attributed to ministers further complicate the implementation of the legislation. Thorne's questioning of whether concessions constitute property and the potential deprivation thereof under the law adds a layer of complexity. He cautions against encroaching on judicial powers and raises constitutional concerns about property rights. As efforts continue to safeguard workers' rights, it is imperative to navigate these challenges while upholding the rule of law and respecting the constitutional framework, particularly in relation to the property aspect of concessions. There is a possibility that the legality of this new piece of legislation will be challenged in the law courts.