Economic Outlook & Labour Legislation Survey

Detailed Findings on Section Addressing
Impact of Recently Enacted Labour Legislation

Prepared by the Nassau Tourism & Development Board for
The Coalition of Private Sector Organizations
July, 2002

I. Background

This report is based on a survey of businesses conducted during the month of June by the Coalition of Private Sector Organizations, an umbrella group of private sector organizations.

This report provides details of business responses with regard to those questions addressing the labour legislation. The results allow us to begin to measure the initial impact of the legislation, as businesses are now able to begin measuring the actual impact as the practicality of the law takes effect.

II. Detailed Findings - Initial Impact of Labour Legislation

1. Standard Hours of Work

Businesses Which Are Impacted Respond in Different Ways

• 41% of businesses affected by new 44 hour work week
• 12% employing additional employees to reduce overtime costs
• 20% report that employees are earning less pay as a result of the reduced hours

Those Impacted Have Seen Labour Costs Increase an Average of 10.2%

• 9% report that all of the increased costs are being passed on to customers
• 18% indicate that part of the increased costs are being passed on to customers

Some Employers Report Negative Impact on Employee Morale and Productivity

• 38% state employee morale and productivity has decreased since the laws became effective
• 5% report an increase in morale and productivity

2. Sick Leave

Just Over Four Out of Ten Employers Affected by New Sick Leave Provisions

• 41% see cost increase; 5% report significant increase

Sick Leave Policy Still Abused by Many Employees; Number of Companies Reporting Abuse Declines

• 39% of Employers Are Experiencing Abuse by Employees of Sick Leave
• Percentage Drops from 55% Who Reported Abuse Last August

3. Vacation Leave

Three Out of Ten Employers Experience Increased Costs for Vacation Leave

• 30% report cost increases, 9% indicate the increases are significant

4. Maternity Leave

• Changes in Maternity Leave Affect 41% of Employers

5. Redundancy Payments

Most Employers Concerned About New Liability Which Redundancy Provision Forces

• 77% of employers report increased labour costs, 31% cite the increase as significant, resulting from liability requirements for accounting and auditing purposes

6. Termination of Employment

More Than Two Out of Three Employers Report Increased Costs Due to Termination Provision

• 69% of employers cite increased costs, 27% stating significant increased costs

7. Minimum Wage

• 25% of Employers Affected by Minimum Wage

8. Overall Impact of Labour Legislation

More Than Nine Out of Ten Employers Report That Labour Legislation Has Had a Negative Impact on the Economy

• 71% Indicate It Has Had a Negative Impact
• 22% Report a Significant Negative Impact on The Economy

III. CONCLUSIONS

Based upon a review and analysis of the survey findings in these areas, The Coalition of Private Sector Organizations offers the following conclusions:

1. The recently enacted labour legislation has had a negative impact on the overall economy - adding to business operating costs, and consequentially increasing the overall cost of doing business and the cost of living for consumers.

2. Careful consideration should be given by policy makers of the impact this legislation has had on the economy and measures which might be considered to mitigate the negative impact.

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