The recent labour unrest at the government high school projects is, regrettably, probably a sign of the economic times we are currently living in and which are likely to get worse before they get better (assuming they do get better).
And it doesn’t take a rocket scientist to predict that the fundamental core of any and all such disputes is going to be the comparative treatment of Caymanian workers as compared to those foreign workers here on work permits.
Indeed, the potential for such clashes are inherent in the work permit system and are thus inevitable in a declining economy when employers are faced with the loss of what could be a considerable investment in foreign workers in the shape of work permit fees and recruitment/relocation costs.
It goes without saying that employers who find themselves in such a situation will give more than a passing thought to how to preserve that investment and this is another one of the easily foreseeable consequences of the gradual escalation of permit fees that have come to represent a significant investment on the part of employers and a major source of revenue for the government.
It is possibly too early to say whether the comparatively recent development of specialised labour sub-contracting firms has added to the current problems.
Certainly, the growth of such a practice in the Turks and Caicos Islands led to no end of labour disputes and allegations of preferential treatment, no doubt exacerbated by the fact that a good number of such firms were owned by government ministers or their business associates.
One consequence of this practice has got to be a certain degree of wage inflation, because in order to cover costs and make money the labour contractor has to charge significantly more than the going wage rate for the job – in some cases we are led to believe amounts that exceed the normal wage rate by one or more orders of magnitude.
Yes, this system saves the employer having to make a long-term commitment to workers who may be needed for an uncertain length of time and thus some expense but the fact remains that there is a “middleman” involved who must be paid – and, in the case of a government project, the ones paying are the Cayman Islands taxpayers.
We remain unconvinced therefore of the financial benefit to the country resulting from this practice unless, of course, it is part and parcel of the “trickle down” economic policy adopted by the last administration and which thus far seems to be the major policy plank of the current government.
We agree whole-heartedly that the rights of individual employees need to be protected. And we also agree that, all other things being equal, a qualified Caymanian should be given preference for a specific job, for many good and valid public interest reasons.
However, being ‘Caymanian’ does not entitle anyone to a job for which they are ill-suited. As we have said before, Caymanians have to compete in today’s world on the basis of qualifications, merit and experience, not entitlement or birthright.
The exact circumstances of the current dispute are somewhat vague, with conflicting claims being made as to whether Caymanians are being laid off the job sites in preference to retaining foreign workers.
Clearly, it is too late to change the underlying system that led to this situation but certainly the government must now not only step in to broker or enforce an equitable solution but it must also be seen to be doing so.
All too often in the past when disputes have arisen between private parties where the government should have taken a firm stand there has been considerable procrastination, trying to be all things to all men, presumably to avoid upsetting potential voters and/or influential party supporters.
Again, the dynamics at work in the current situation are as yet unclear, but it is something this newspaper will be keeping a close eye on as matters develop.
It goes without saying that the situation is highly stressful for the Caymanian families involved or otherwise affected by the possible loss of jobs and income in these already perilous economic times.
Perhaps it will be possible to remedy the situation once and for all now the government is able to borrow some additional funds -- but until that time we hope that everyone will be sensitive to the needs of local workers and their families. |