Government Ministers of successive governments have become involved in the contract between Morton Salt and their employees. Politicians welcome the opportunity to promote themselves as protectors of the common man, and in the process intimidate the employer to enhance this image. The courts, the government, employers and employees all have roles to play and the governmentﾴs responsibility is to ensure an environment conducive to economic progress and living in peace.
Now that the staff at Morton Salt is again threatening strike action, the Minister of Immigration and Labour seems to believe it is his job to direct a settlement by Morton in an effort to pacify the unionised employees. Direct involvement by the Minister does not go unnoticed by investorsﾅBahamian and foreign alikeﾅwhen considering investment in this economy. Having established the laws on how business and employees should cooperate with each other, that is where the Ministerﾴs role in the process ends.
Their mutually agreed contract and the Employment Act must guide all parties involved. If either party is dissatisfied the employees can go on strike or the employer can lock them out. Sooner or later a compromise will be made, which may mean Morton will leave the country rather than have their internal affairs directed by government officials.
ﾷ Decisions, decisions.
When changes in operations are necessary to maintain profitability, all options are considered, particularly when alterations to personnel have to be made. Firing an employee for stealing or other serious breaches of contract presents no difficulty for employers, but when it comes to laying off productive personnel, cutting salaries or even reassigning employees, employers face many sleepless nights and exhaust every plausible means to keep the status quo. Companies lay people off when profits diminish. So to save the company and remaining jobs employers must sometimes terminate employees or cut wages to reduce costs.
Someone should remind the Ministry that a private company does not have access to the public purse. When government corporations need to pay bills they simply increase taxes or borrow beyond their capacity to repay, which they can do without reference to the compensation norms existing in the labour market. In the private sector, companies must find ways to stay afloat by cutting costs and increasing productivity or they must shut their doors. Would the Ministry prefer Morton Salt leave altogether?
ﾷ Contracts are sacred.
Employment contracts set out conditions, responsibilities and benefits. Most companies also provide an employee handbook, given on the first day of employment. So long as the contract meets or exceeds the requirements of laws of the Bahamas, once signed, it is binding on both employer and employee. No one is forced to sign a contract, therefore under our Constitution and the rule of law there is no need for government to be involved beyond the conciliation process, through the mechanisms provided for this purpose…the Labour Board and the Industrial Tribunal.
Prior to the enactment of recent labour legislation, the Nassau Institute warned against provisions in the labour law that gives government a management role in private companies. Regrettably this is now the case with the Morton Salt Company. The Minister should not be attempting to direct Morton Salt on what they should be doingﾅthat is a job for the parties to the contract and ultimately the courts to decide if necessary.
The business community and their representative, The Bahamas Chamber of Commerce, must continually remind government that the courts are there to settle disputes, not the Minister of Immigration and Labour.
ﾷ The country needs business
The Bahamas, like every other country, requires investors. Each fall there are between five and six thousand school leavers, most of whom will require jobs. Government interference and strong arm tactics on employers, effectively reduces incentives for new business and/or expansion of existing ones. Direct government involvement in labour disputes (other than the courts) is a disincentive for new business creation and thereby job opportunities for young adults will be lost.
The Nassau Institute recommends the Ministry of Labour refocus its attention to the impartial rule of law, remaining uninvolved in the settlement of differences between opposing parties. It should step back and not prejudice its impartiality any further.
ﾷ Donﾴt placate the few
The Bahamas is coming off ten years of sustained economic growth, after twenty years of stagnation. Wages rose to unprecedented levels as a consequence of the demand for labour created by large amounts of investment by foreigners and Bahamians alike.
The politicianﾴs desire to pacify the few sends a disquieting message to local and foreign business people. Centralised management and government intrusion has previously caused hardship for Bahamian workers, and it will do so again.
Please Mr. Minister, stop rubbing salt into the wounds that exist at Morton. Let them work their differences out by themselves.
The Nassau Institute
