BECon Annual General Meeting

The Annual General Meeting of Bahamas Employers Confederation is being scheduled for the 27th of September, 2001. In addition to the election of Officers and Directors, as the first meeting of members since the formulation of the draft Strategic Plan in July of this year, there are several important decisions that need to be made at this meeting.

Members will be asked to approve the draft Strategic Plan as the Strategic Plan to be used by BECon during the ensuing year. Members will also be asked to approve the incorporation of Bahamas Employers Confederation as a Non-Profit Company under the Companies Act, 1992. If the resolution to incorporate BECon is carried, a further resolution will be made that BECon operate as far as practical under the terms and conditions specified in the draft Memorandum and Articles of Association as though the incorporation of BECon has taken place.

The draft Strategic Plan and draft constitutional documents of BECon are available on BECon's web site or copies can be obtained by calling BECon's office.

A separate notice will be sent to members giving the time and place of the meeting. All members are strongly urged to attend this very important general meeting of BECon.

IMF Urges Careful Analysis of Labour Bills

The Executive Board of the International Monetary Fund (IMF) in a report dated the 14th of August, 2001, emphasized the need to analyze carefully the implications of the draft labour legislation that has been submitted to parliament so as to avoid a significant increase in labour costs that could have an adverse impact on external competitiveness. They highlighted the need to preserve flexibility with regard to part-time and temporary employment, and reduce rigidities in labor arrangements.

The Directors observed that sustaining a strong performance in tourism and other key sectors depended crucially on containing labour costs and raising labour productivity through continued emphasis on education and training. The Directors also stressed to government the need for adherence to a prudent wage policy to maintain fiscal discipline and avoid parallel wage pressures in the private sector that could affect competitiveness.

As part of its assessment, the Executive Directors commended the authorities for their continued adherence to sound macroeconomic policies, which had contributed to a sustained economic recovery led by substantial inflows of private investment, a decline in unemployment, and an improvement in the country's social indicators. Directors noted that the main challenge for the period ahead was to build on these accomplishments by maintaining a prudent fiscal stance, enhancing competitiveness, and pressing ahead with pending structural reforms.

The complete report is available from the International Monetary Fund's web site at www.imf.org/external/np/sec/pn/2001/pn0189.htm

Proposed Standard Hours of Work

The June 29th, 2001 draft of the Employment Act reduces the Standard Hours of Work from 48 hours over six days exclusive of meal periods to 40 hours over five days inclusive of meal periods.

By including the meal periods into the standard hours, employers will be required to pay for this unproductive time. For those employers providing a 30 minute meal period, the meal periods amount to 6.67% of the Standard Hours of Work. For those employers providing a one hour meal period, the percentage of unproductive meal period time jumps to 14.29%.

Based on actual time worked, the work week is being reduced between 21.9% for those with a 30 minute meal break to 27.1% for those with a one hour meal break. [To go from 37.5 hours to 48 hours represents 28%, to go from 35 hours to 48 hours represents 37%.] In order to maintain the same amount of productivity, labour costs would increase by as much as 63.75%, (this is based on a salaried employee who works 48 productive hours over six days and is provided with a one hour meal break per day).

In order to assist employers in determining the impact of the proposed Standard Hours of Work to their company, two templates have been created using Microsoft Excel, one for hourly paid staff and another for salaried staff. Both of these templates are available at BECon's web site.

BECon Working Group Update

Individuals from BECon's Working Group have started to contact members as a follow up to the member services survey faxed out last week. It is hoped that within the next few days all members will have been contacted. For those of you who have already faxed to BECon the completed survey - thank you; and for those of you who haven't yet done so, please complete and return the survey to BECon so your views will be incorporated into the final results.

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