The abrupt closure of two major companies has drawn sharp criticism from the island’s umbrella trade union body, which is demanding closer scrutiny of employer practices and stronger enforcement of labour laws to protect workers left suddenly jobless.
The shutdown of Standard Distributors Limited and Berger Paints Barbados Limited, has prompted the Congress of Trade Unions and Staff Associations of Barbados (CTUSAB) to raise concerns about the impact on employees and possible breaches of labour law.
General secretary Dennis De Peiza underscored the wider implications of the closures, particularly against the backdrop of current economic pressures.
“The recent closure of business operations by Standard Distributors Limited and the announcement that Berger Paints Barbados Limited will cease its operations on April 24 is a development that, in the current climate of escalating fuel prices, as triggered by the war in the Middle East, calls for careful monitoring.”
He told a press conference at CTUSAB’s headquarters that the developments were a threat to jobs and raised concerns about workers’ rights.
“At this stage, it can only be speculative as to the reasons why these businesses have ceased operations virtually under the cover of night. It may be that the decision is linked to the increased cost of doing business. If it is that the decision of the Government of Barbados to incrementally increase the minimum wage has played a part, the Congress can only scoff at the decision of the owners of the respective companies.”
“It is CTUSAB’s understanding that the closures were seemingly made without respect and regard to the requirements of the Employment Rights Act. If this information is accurate, then CTUSAB denounces this behaviour and action as a fundamental breach which cannot be allowed to go unnoticed,” De Peiza said.
The CTUSAB head stressed the need for stronger oversight and enforcement mechanisms to ensure compliance with the law.
“To bring a halt to this practice, there must be a review of the enforcement mechanism under the Employment Rights Act, for the purpose of ensuring compliance with the process where there is the intended closure of a business, which triggers redundancies.”
He outlined the required redundancy procedures, including formal notification to both employees and the chief labour officer.
De Peiza added that employers are also required to consult with employees or their representatives prior to any decision to close operations, describing it as troubling if that step was bypassed or done after the fact.
He further argued that employers must be held accountable where there is clear evidence of non-compliance.
“It is grossly unfair to workers that they are thrown on the breadline, and to find themselves at the mercy of the Unemployment Benefit Scheme, provided always that they qualify to receive unemployment benefits. CTUSAB is of the view that the non-compliance by some employers of the processes and procedures set out in the Employment Rights Act, when it comes to business closure, must now be an urgent agenda item for discussion at the level of the Social Partnership.”
“The unceremonious manner in which some companies are engaging in, as this relates to making employees redundant, is a practice that must be immediately halted. It is grossly unfair for an employer to summon an employee into a meeting at the start of a work week, to be informed that he/she will be made redundant at the end of this week. This is unconscionable behaviour which cannot be condoned,” he added.
De Peiza also pointed affected workers towards possible avenues for redress, while acknowledging delays in the system.
“In the hope of having redress at the level of the Employment Rights Tribunal. The problem here is the time which may elapse in having justice served, where there is evidence to support a claim of unfair dismissal of the employee.”
De Peiza suggested that if rising costs, including minimum wage adjustments, influenced the closures, alternative measures could have been explored to preserve jobs.
“I am sure that adjustments can be made. Any businessman who wants to keep the operation and sustain it at the level it’s going. You always have to make judgement calls, but one has to also understand that you can be able to manage that and still maintain the status quo. You might even ask an employee to take a small cut, if that has to happen. I’m sure a fellow would prefer to lose $5 than to go home and have nothing.”