As Bahamian workers adjust to the new 40-hour workweek, many are being urged to improve their level of performance within the new timeframe.
However, there is no guarantee that the reduced time will increase productivity in the work place, according to Bahamas Chamber of Commerce President Raymond Winder.
Consistent with the provisions of the Employment Act 2001, reduction of the workweek came into effect on February 1. Prior to that, the Government decided that it would be in the best interest of the country to move forward with the change.
Much concern was earlier expressed by employers about the timing of the law. The major concern was whether the economy could absorb such a move when the country is still recuperating from the effects of 9/11.
The reduced hours of work has left some employers within the private sector with the task of maintaining the present level of revenue while adjusting to less hours of worktime per employee.
Responding to conditions surrounding the new 40-hour workweek, Mr. Winder said the change could potentially be a disadvantage to employers who may encounter additional costs without incentives for productivity.
“There is no guarantee that because you converted from 44 to 40 hours, that there will be an increase in productivity,” the Chamber of Commerce president said.
“There is nothing to substantiate that. It is people’s attitude towards work that needs to be changed. And until that is changed, we will not be able to achieve the level of productivity we want to achieve.”
In an interview with The Guardian on Tuesday, Mr. Winder said that if with the movement of 44 to 40 work hours employees are motivated to get the same amount of work done within the new time period, then much could be gain from a productivity point of view.
“However, most organisations today don’t have an effective system in place where they can measure productivity properly,” he said. “It is going to be difficult to see whether we get the kind of return benefits expected.
“I believe that if this law was in place about three or four years ago when the economy was much more buoyant, then the private sector would have been in a better position to incorporate it and be able to integrate it into their system.”
Citing additional costs some organisations might face, Mr. Winder said one is higher levels of overtime. This could have a serious impact on struggling businesses as it would require more monies by employers to pay their staff.
With the reduction of working hours, more time is necessary to produce, especially if the overall success of that business depends on it. Consideration in hiring more staff may be another cost employers may have to face, but may not be able to afford.
Provisions of the Employment Act 2001, state the standard hours of work shall be eight hours a day, 40 hours per week, once the Act is fully implemented. The Employment Act 2001, was passed by Parliament on December 20, 2001 and enacted on January 1, 2002.
The Employment Act is silent on meal periods which are not included in the legal standard hours of work.
Traditionally, employees are entitled to a one-hour lunch period.
“I believe that those organisations that didn’t pay for a lunch period in the past should not be required to pay for lunch now. If you are not working, why should you be paid,” he said.
In a statement issued to The Guardian by the Bahamas Employers Confederation (BECon); “until the economy improves so that the reduction of work hours can more readily be absorbed in the economy, then there will be an increase in the cost of living in The Bahamas.”
Previous reports produced by BECon, show that reduction in the work week from 44 to 40 hours, was 9.09% loss in productivity.
Private sector organisations pay staff salaries based upon profit earnings. Therefore the private sector will be able to adjust long term but in short term, there will be problems when organisations experience revenue shortage because of the slow-down in the economy.
“The more there is a slow-down in the economy, the more this becomes a depressing issue for employers,” Mr. Winder said.
He said that with the passing of any law, it is important that attention be paid to its timing.
“Our economy is so volatile that any movement or severe hardship for employees and employers could have a tremendous effect,” he said. “When one puts down new laws, one has to put them in under an assumption that they will gradually phase into the economy, based on the state of the economy during that time.”
“It is important for us to ensure that private organisations survive the downturn of what we are currently going through. We don’t want just a few of them to survive because if the smaller organisations are put out of business, then that creates issues around competition.”
By Lisa Albury, The Nassau Guardian
