Labour relations in Caribbean countries

Transcription

1 Labour-Management Relations Series No. 75 Labour relations in Caribbean countries Proceedings of a Tripartite Caribbean Seminar on Labour Relations (Castries, St. Lucia, 1-4 November 1988) Edited by Werner Bien k International Labour Office Geneva

2 Copyright International Labour Organisation 1990 First published 1990 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorisation, on condition that the source is indicated. For rights of reproduction or translation, application should be made to the Publications Branch (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland. The International Labour Office welcomes such applications. BLENK, W. ILO Labour relations in Caribbean countries. Proceedings of a Tripartite Caribbean Seminar on Labour Relations (Castries, St. Lucia, 1-4 November 1988). Geneva, International Labour Office, (Labour-Management Relations Series, No. 75) /Conference report/, /Labour relations/, /Antigua and Barbados/, /Bahamas/, /Barbados/, /Dominica/, /Grenada/, /Guyana/, /Jamaica/, /St. Lucia/, /Trinidad and Tobago/ ISBN ISSN ILO Cataloguing in Publication Data The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. A catalogue or list of new publications will be sent free of charge from the above address. Printed in Switzerland ART

3 Preface A seminar on labour relations in the Caribbean region took place in Castries, Saint Lucia, from 1 to 4 November Following a seminar held in Port-of-Spain in 1973, it was the second of this kind to be organised by the ILO in the Caribbean region. Twenty-two participants from Antigua and Barbuda, the Bahamas, Barbados, Dominica, Grenada, Guyana, Jamaica, Saint Lucia and Trinidad and Tobago, attended the seminar. Mr. Norman Semple participated as an observer from Caricom. Dr. Zin Henry and Mr. Astley Leslie, ILO regional adviser on labour administration, acted as consultants. The seminar was opened by the Honorable Romanus Lansiquot, Minister of Health, Housing and Labour, Saint Lucia. Remarks were then made by Mr. I. Chambers, the Director of the ILO Caribbean Office. The seminar was directed by Mr. Alan Gladstone, the Director of the ILO Industrial Relations and Labour Administration Department. He was assisted by Mr. Werner Blenk of the Labour Law and Labour Relations Branch.

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5 Contents Preface Opening remarks, Alan Gladstone, Director, Industrial Relations and Labour Administration Department, ILO 1 Labour relations in the Caribbean region: Background paper, Zin Henry, consultant 4 Labour relations in Antigua and Barbuda: A government view, M. Lewis, Deputy Labour Commissioner, Antigua and Barbuda 20 Labour relations in Antigua and Barbuda: An employers' view, H. Bass, Secretary, Antigua and Barbuda Employers' Federation 26 Labour relations in the Bahamas: A government view, Ch.H. Turnquest, Director of Labour, Ministry of Employment and Immigration 29 Labour relations in the Bahamas: A workers' view, J.E. Blatch, President, Bahamas Maritime Port and Allied Workers' Union 36 Labour Relations in the Bahamas: An employers' view, T.V. Arnett, past President of the Bahamas Employers' Confederation, Assistant Vice-President, Bacardi & Co. Ltd. 39 Labour relations in Barbados: A government view, M. Codrington, Labour Department 43 Labour relations in Barbados: A workers' view, A.M. Yearwood, Representative, Barbados Workers' Union 50 Labour relations in Dominica: A workers' view, LJ.B. Nicholas, General Secretary, Dominica Trade Union 54 Labour relations in Grenada: A government view, A. Newton, Deputy Labour Commissioner 56 Labour relations in Grenada: An employers' view, RA. Smith, Executive Director, Grenada Employers' Federation 63 Labour relations in Grenada: A workers' view, E. Bishop, Secretary and Treasurer, Grenada Trade Union Council 66 Labour relations in Guyana: A government view, M. Bascom, Deputy Chief Labour Officer, Ministry of Labour 69 Labour relations in Guyana: An employers' view, D.I. Yankana, Executive Director, The Consultative Association of Guyanese Industry Ltd. 75 Labour relations in Guyana: A workers' view, S.O. Felix, Vice-President, Guyana Trades Union Congress 80 Labour relations in Jamaica: A government view, L.R. Stewart, Acting Director, Industrial Relations, Ministry of Labour 83 v

6 LABOUR RELATIONS IN THE CARIBBEAN REGION Labour relations in Jamaica: An employers' view, S.G. Kirkaldy, Executive Director, Jamaica Employers' Federation 89 Labour relations in Saint Lucia: A joint country report, S. Vincent, Acting Labour Commissioner; F. Louisy, Director, Saint Lucia Employers' Federation; G. Louis, President, Saint Lucia Workers' Union 94 Labour relations in Trinidad and Tobago: A government view, G. Ramsubeik, Senior Labour Relations Officer, Ministry of Energy, Labour, Employment and Manpower Resources 99 Labour relations in the Caribbean region: Report on the seminar 107 List of participants 122

7 Opening remarks Alan Gladstone, Director, Industrial Relationsand Labour Administration Department, ILO Fifteen years ago the ILO held its last - and only - regional seminar on labour relations in Caribbean countries. At that seminar in March 1973 one of the conclusions was that "future seminars should be organised in the region to stimulate consideration of industrial relations questions". I regret that it has taken 15 years for the ILO in Geneva to follow up on that conclusion, but I know that both through the activities of our ILO Caribbean Labour Administration Centre (CLAC) - in the person of Astley Leslie - and, over a period of years, through the efforts of our former ILO regional adviser on labour relations, Norman Semple, labour relations matters in the region have had continuing attention from the ILO. In fact the present seminar is in a sense a follow-up to tripartite national seminars co-ordinated by Norman Semple which were held in Dominica, Grenada, Guyana, Jamaica and Saint Lucia in 1985 and These seminars were organised jointly by the respective governments and the ILO Caribbean Office. They were aimed at the examination of national industrial relations systems and practices. Now we're going multinational! And I welcome the presence here for this seminar of Mr. Leslie and Mr. Semple - although Norman no longer wears the ILO hat but rather that of Caricom. Labour relations, by their nature, are dynamic and changing - responding to economic developments that may be temporary or more structural; responding to political developments, as we see in the United Kingdom today where voluntarism is being eroded. And perhaps more important for our purposes, labour relations systems can change in response to a concerted willingness on the part of all the parties to seek ways of improving the system. It is particularly in this last regard - a concerted willingness to revise labour relations systems where this is patently necessary, a willingness of trade unions and employers as well as governments - that I hope there could be one result of this seminar. If participants, as a consequence of our discussion and of our mutual sharing of experiences and problems, can find the means to improve one or another aspect of the industrial relations systems of his or her country, or if they can, as a result of our discussion, find a better way to perform their own responsible jobs, then this exercise will have been worth the effort. As you know, the ILO has always had the promotion of sound industrial relations as a very major concern. But it isn't easy! We have to maintain a delicate balance between the espousal and promotion of universal principles on the one hand, and the great diversity of systems, methods and practices of industrial relations in the many member countries - a diversity based on historic, cultural, political and other differences. As far as universal principles are concerned, the ILO is committed to a certain number of these as laid down in international labour Conventions and 1

8 LABOUR RELA TIONS IN THE CARIBBEAN REGION Recommendations adopted through the joint efforts of governments, workers' representatives and employers' representatives. These, as you know, include freedom of association, promotion of collective bargaining, promotion of consultation and co-operation between employers' and workers' organisations and the public authorities, and the establishment of effective means for preventing and settling labour disputes, principally through voluntary conciliation and arbitration. With specific reference to the enterprise or workplace: recognition of the principle that no worker should be dismissed without valid reason; protection and facilities to be accorded workers' representatives in the enterprise, the promotion of labour-management consultation and co-operation and communications, as well as the establishment of effective grievance procedures, in the enterprise. I mentioned the question of balance between these universal values and industrial relations systems in various countries. Now, countries differ greatly in their approach to industrial relations but it is the consensus of the world community that ILO standards are sufficientlyflexibleso as not to contravene or frustrate national conditions, traditions and objectives. So, I would say that, contrary to what we hear in some quarters, there is no necessary contradiction between ILO standards - and particularly those in the industrial relations field - and the healthy evolution of sound industrial relations systems, and more generally, national economic development. Not only is there no contradiction; rather adherence to ILO standards can inspire constructive and positive development. And the ILO stands ready to assist its members in this task of developing sound industrial relations systems; which, of course, is one of the reasons for organising this seminar. I think that all of us recognise the importance of sound industrial relations in the process of development. I think we also recognise - as has been shown on so many occasions - that poor industrial relations, unbridled strike action or other acts of industrial unrest, trade union rivalry, and employer failure to treat with trade unions, all lead to turmoil in industrial relations and can actually destroy what might otherwise be good prospects for rapid economic development. This means, in my view, that we should constantly be re-examining our industrial relations systems with a view to having them contribute to national development while preserving basic principles of tripartism, equity and respect. No system of industrial relations, whether it be the product of a colonial heritage or otherwise, should be immune from critical re-examination and amelioration, through consideration of new approaches and even through "experimentation" of new approaches. And you - significant policy-makers, as you all are - are in a unique position to effectuate change. Now, you'll hear quite a bit in the next few days of practices and procedures in operation in various countries in many parts of the world. Here I hope I am not contradicting myself if I voice a caveat - a warning. Industrial relations systems are not transferable, are not transposable! Each system must be built on a certain, often distinct, history, culture and background, and in the context of certain political and economic realities. But the experiences of others in the industrial relations field can be instructive and at times specific practices or procedures, with appropriate modifications, may very well be incorporated into your own industrial relations systems. And, at a minimum, industrial relations discussions on a comparative basis 2

9 OPENING REMARKS can help us to appreciate or evaluate our own system better, and to understand why certain things may not be working properly. I think this seminar should be productive - and constructive - in this way. That's what I wanted to say about the background and purpose of this seminar. Now let me say a few words about the structure. After the general presentations, including the country presentations, which you see on the programme, we'll consider each of the five themes, with a brief introduction and then a free discussion which may, if you wish, be guided by a list of suggested points. These lists of points should in no way inhibit you from bringing up other significant points that you feel should be discussed. I think we should try to make our discussions problem-oriented, while at the same time sharing experiences - both good and bad. Above all, we should have a completely candid and frank discussion. We should welcome disagreement and a variety of views; and none of us should hesitate to be provocative. After our discussions, we shall try to pull together some of the main ideas, into an analytical summary on each of the points. I don't have to emphasise that this is a seminar - a sharing of views and opinions. We are not aiming at conclusions or recommendations in this forum. We just want to let the ideasflow.by the same token, you are not here as representatives or delegates, but as participants interested in making industrial relations work better. While we all come from a certain background - government, employers' circles, trade unions - and we can't divorce ourselves from this background, nevertheless we are here as individuals, speaking and discussing in our individual capacities. There will be no attribution, or record attributing views to particular participants, although I'm sure that, even if there were, this would not inhibit you. We would hope to prepare a publication in our Labour Management Relations Series, based on selected papers and a summary of discussions. Before I close, let me introduce you to my colleagues: Zin Henry and Astley Leslie you all know as leading figures in industrial relations practice, and in service in this field to the Caribbean community. As I mentioned earlier, Astley Leslie has for a number of years been the Director of the ILO's Caribbean Labour Administration Centre. Zin of course has had a variety of posts both in Trinidad and Tobago and with the International Labour Organisation; and my colleague from Geneva, Werner Blenk. Also Lucille Duprey from our Port-of-Spain office and Lucille Turner from the International Labour Office, Geneva. Both are here to help things run smoothly. Let me thank all of you who have prepared papers for this seminar, and particularly Zin Henry for having prepared the general background paper. Finally let me thank you, Mr. Minister, for being with us this morning, for addressing the participants and for opening the seminar. And let me thank you also, Mr. Minister, as well as your colleagues - and through you, the Government of Saint Lucia - for having accepted to host this seminar and for having done so much to ensure its proper organisation. 3

10 Labour relations in the Caribbean region: Background paper Zin Henry, consultant Introduction Until just over 25 years ago, all of the Caribbean countries dealt with in this paper were colonies with their constitutional status ranging from a British Crown Colony through different levels of representatives to full representative government. Beginning with Jamaica and Trinidad and Tobago in 1962 and followed by Barbados and Guyana in 1966, four of them had gained political independence by the end of the 1960s. After that, some eight others followed and so most of these territories are today independent countries. The period of independence obviously varies, some having already celebrated their twenty-fifth anniversary, others their twentieth and some yet to reach their tenth. However, this paper deals with all the territories summarily and the post-independence period of the region will be treated as embracing more or less the last 25 years. Trade unionism Compared with the first two decades following the Second World War, which saw a proliferation and multiplicity of trade unions emerging in Caribbean territories, the post-independence period was more one of consolidation during which considerable growth in membership, financial strength and bargaining power of trade unions took place. Since the early 1980s, however, mainly in consequence of the global recession which has had a severe and adverse impact on the region's economies and in turn upon levels of employment, there has been a marked decline in both union membership and bargaining power. In terms of organisational structure, there has been virtually no fundamental change from the early post-war period when most of the region's trade unions emerged as general or blanket unions which straddled a wide range of industrial spheres. Even the few unions which began in the earlier period as industrial unions have in fact departed from their original and industrial demarcations; they now cater for workers of all kinds, regardless of the industrial sphere of employment. Such has been the case, for example, with waterfront, sugar, petroleum and even bank workers' unions in several of the territories. Political unionism continues to be fairly well entrenched in Caribbean labour movements. In Jamaica, for example, the two largest trade unions still constitute the main electoral base for the ruling and the opposition party, each union being officially affiliated to its respective political party. A more recently formed University and Allied Workers' Union is affiliated to the Workers' Party of Jamaica. The Antigua 4

11 BACKGROUND PAPER Trades and Labour Union is still an official arm of the ruling Antigua Labour Party. The St. Kitts-Nevis Trades and Labour Union is officially affiliated to the erstwhile ruling but now opposition party and the Guyana Agricultural Workers' Union is an affiliate of one of the opposition parties in Parliament. Notwithstanding the continuing linkage between trade unions and politics, there has been a marked departure from the tradition of political unionism to business unionism and economic objectives. In general, and increasingly, Caribbean trade unions have become more dependent on their own bargaining strength than on political patronage for enhancing the welfare of workers; and this has been so even where the unions involved are in fact affihates of ruling parties. With the gaining of independence status by most of the territories, economic development has replaced the earlier political independence thrust and this has contributed considerably to the shift away from political to business unionism. Perhaps the most significant development in the Caribbean labour movement in the post-independence period has been the considerable growth in "white-collar" unionism. The earlier public service and professional associations, embracing teachers, nurses, doctors and other such groups which concentrated mainly on professional matters and on providing social benefits to their members, have adopted to varying degrees, more typical forms of industrial unionism. They are now more closely associated with the "blue-collar" labour movement, and in general are affiliates of national federations of trade unions in several countries where such federations exist. They engage in typical trade union activities, such as collective bargaining, industrial action, and protest demonstrations in pursuance of grievances. In fact, these "white-collar" workers' associations have been directly involved in several of the major disputes in the region over the past decade and often the employers involved are governments. For example, the Dominica Civil Service Association played a leading role in establishing the Committee for National Salvation which precipitated the industrial and political crisis of that country leading to the fall of the then Government. In Jamaica, the civil service, teachers', doctors' and nurses' associations have all been involved in major labour disputes with the Government as well as in actual industrial action. And, in Trinidad and Tobago, the Public Service Association is among the most militant unions frequently engaging in protest demonstrations and threats of industrial action. The banking industry is another area in which white-collar unionism has considerably developed. Active bank employees' unions now exist in several countries. In some cases, as in Trinidad and Tobago and in Grenada, bank workers form the core of white-collar unions which may or may not have representation in other spheres. In other countries, such as Jamaica, Guyana, Barbados, Dominica and St. Vincent, bank workers are organised as branches of general unions. In fact, there are very few countries in the region where bank employees' unions or branches of such unions do not exist. A similarly marked trend in white-collar unionism is to be found among supervisory and managerial personnel who are organised into staff associations in a number of enterprises. Although several of these associations remain unaffiliated to national labour movements, they nevertheless engage in standard trade union activities. 5

12 LABOUR RELATIONS IN THE CARIBBEAN REGION A factor which no doubt has been playing a significant role in the development of business as well as white-collar unionism in the region, is the extent of education and training to which workers and their organisations have been increasingly exposed over the past two decades. The post-independence period saw a major shift from predominantly ad hoc training courses and external study tours, which were provided mainly by the British and the United States labour movements to internal training programmes organised in the region. Starting with regular training programmes conducted by the Extramural Department of the University of the West Indies which began in the late 1950s, three permanent labour education institutions were established during the 1960s: the Trade Union Education Institute in Jamaica (1964), the Cipriani Labour College in Trinidad and Tobago (1966) and the Critchlow Labour College in Guyana. The Barbados Labour College was established during the following decade (1973) and the Butler Institute of Labour followed in Yet another permanent labour institute with main focus on research - the Joint Trade Union Research Development Centre - was established in 1984 in Jamaica. The International Labour Organisation (ILO), particularly since the establishment of its Caribbean Office in Port-of-Spain in 1969, has played no small part in the development of this educational and training thrust. It gave substantial technical assistance to the region's labour colleges in their formative years and has been bringing them all together periodically in conferences for exchanges of experience in, and co-ordination of, their work. In addition, since 1974 the ILO has been executing a continuous project in labour education financed mainly by the Danish International Development Agency (DANIDA), which is under the direction of a workers' education adviser attached to its Caribbean office. Under this project, the smaller eastern Caribbean territories, which have no permanent labour education institution, have had a considerable amount of on-the-spot educational and training activities. In addition, the ILO conducts from time to time seminars, workshops and symposiums in labour relations financed from its own budget. Education and training programmes, organised by the region's labour movements themselves, have also been taking place. The Oilfield Workers' Trade Union of Trinidad and Tobago and the Barbados Workers' Union have been frontrunners in this regard. The Caribbean Congress of Labour also organises and conducts a number of training programmes, usually with financial assistance from various sources. Newspapers published by a few of the larger unions in the region further contributed to the educational thrust which has gained momentum over the past two decades. Parallel to these developments there have been changes in the pattern of trade union leadership. The first generation leaders, considered by many as demagogic and messianic, have given way increasingly to a younger and more formally educated second or third generation leadership - a trend which is reflected in all aspects of labour management relations. At the same time, however, there has emerged a small minority of leaders whose behavioural pattern tends to be coloured by ideological militancy and who, to some extent, fuel a measure of adversarial and confrontational industrial relations in the region. There has also been a marked decline in leadership 6

13 BACKGROUND PAPER by middle-class intellectuals and professionals, with a corresponding increase of leadership rising through the ranks. Changes, commensurate with these post-independence developments, are not as much discernible in membership pattern which on the whole remains greatly tradition-bound. Fickle and transient organisational loyalty, low participation rates and minimal involvement in the internal affairs and the administration of unions continue to be marked membership features. Interest and momentum tend to sharpen in crisis situations, such as deadlocks in negotiation and industrial action. Other than check-off payments, as stipulated in collective agreements, the payment of union dues tends to be irregular and haphazard. Moreover, there is a high degree of delinquency in the payment of affiliation fees to national and regional federations. Rivalry and disunity continue to be fairly pronounced features of Caribbean labour movements. The structure of trade unions typical for the region, that is the general union, tends to heighten competition among organisations if only for reasons of financial strength and survival. However, overt conflict, which was widespread until the 1960s, has diminished considerably in several of the countries, mainly because of the introduction of legally stipulated procedures regarding the recognition of trade unions for representational purposes, which will be dealt with later. It would also appear that the extent of politically motivated rivalry, which dominated the scene in the pre-independence era, has diminished with the shift away from political towards business unionism. But despite these positive trends, a unified labour movement remains elusive in most of the countries of the region. As yet, there is no national federation of labour in some of them; for example, Jamaica, Barbados, Dominica, Antigua and the Bahamas. And where a national federation does exist, its effectiveness tends to be somewhat diminished, either because it does not embrace a sufficient number of unions, including some of the stronger ones, or there is more than one federation. The elusiveness of national unity in Caribbean labour movements is strikingly illustrated in the cases of Dominica and Trinidad and Tobago. In the former country, a Joint Trade Unions' Working Committee was set up in the early 1970s to bring about the formation of a national body which never materialised. In 1979, another Joint Trade Union Action Committee, including farmers, was established for the same purpose but without success. Again, in 1986, a Steering Committee was formed for the then immediate purpose of joint May Day celebrations and hopefully to bring about a unified national trade union body thereafter. That Committee in fact vanished after fulfilling its immediate objective and trade union rivalry continues to be dominant. In Trinidad and Tobago, the two national federations, which have been in existence for several years, have been discussing the question of unification almost continuously over a very long period. A Constitution for a unified body was drafted some time ago and several target dates have been set for bringing such a body into existence but the situation still remains unchanged. Some of the reasons which have been advanced for the failure of bringing about unified labour movements in the region have to do with elements like the ambitions of leaders, suspicion and lack of mutual trust among existing trade union leaders, union affiliation to opposing political parties, as well as to opposing international labour federations and differences in ideological orientation. 7

14 LABOUR RELATIONS IN THE CARIBBEAN REGION Employers' organisations Employers' organisations for the specific purpose of dealing with industrial relations and matters related thereto, which were first established in Jamaica and Trinidad and Tobago in the late 1950s and early 1960s, now exist in all countries of the region except the very small ones, such as Anguilla, the British Virgin Islands, Caymans, Turks and Caicos, St. Kitts and Montserrat. These organisations, where they exist, are affiliated to a regional body, the Caribbean Employers' Confederation. Functionally, these organisations may be classified into two broad categories: namely, those which concentrate mainly on providing advisory and consultative services to their affiliates, and those which, in addition to advisory services, actively engage in collective bargaining with trade unions on behalf of their affiliates. Both categories also engage to some extent in management training activities. The former type is frequently found in the larger territories, such as Jamaica, Guyana, and Trinidad and Tobago, while the latter is widespread in most of the smaller territories of the Windward and Leeward Islands. It is an unfortunate development that these employers' organisations are generally perceived by trade unions as being in opposition to them, with a mission not merely to protect employers' interest but also to thwart militant trade unionism. This perception tends to trigger off confrontation at the slightest irritation, in a situation which has surfaced somewhat dramatically in certain countries, particularly in current economic circumstances where the bargaining power of employers has become greatly strengthened, while that of labour has been considerably weakened. Unilateral actions by employers in matters of layoffs, retrenchment and changes in working conditions, without discussion or consultation with workers or their organisations, have become not uncommon experiences in a number of countries during recent years. Another trend which has become increasingly noticeable in the 1980s is the resurgence of other types of employers' organisations, particularly chambers of commerce, as the leading or at least dominant representatives of employers on industrial relations matters. Such types of employers' organisations, prior to the 1960s, performed the function of spokesmen for employers on all matters but essentially they were producers', manufacturers' and traders' organisations which focused mainly on technical, production and commercial interests. In fact, those very organisations were instrumental in bringing into being employers' associations to deal specifically and exclusively with industrial relations matters. But, as it has turned out in practice in a few countries, there is a tendency for this latter type of organisation to become overshadowed by the older types, such as chambers of commerce, in matters pertaining to industrial relations. The fact that chambers of commerce are less attuned and less sensitive to industrial relations issues sometimes militates against harmonious labour-management relations. This trend has surfaced more noticeably since the 1980s and it is no doubt related to the economic decline which has been evidenced since the turn of the decade. With declining profits, employers have become much more cost conscious and tend to focus attention on reducing labour costs. Top officials of chambers of commerce, and employers' organisations of that type, are employers themselves and not employees of the organisation as is the case with 8

15 BACKGROUND PAPER industrial relations-type associations. Therefore, the former tend to become more aggressive and abrasive in dealing with labour issues, especially those relating to labour costs. A final aspect of employers' organisations in the Caribbean which is worthy of note is that, while governments are the largest employers, state corporations and enterprises are not usually embraced in the region's employers' organisations. The voice of employers' organisations therefore reflects the views of private sector employers only, which - not infrequently - do not coincide with the views of governments as employers. This also complicates the situation in national tripartite forums dealing with industrial relations matters where government representatives are themselves chief executives of departments of government, state corporations and state enterprises. Trade union recognition and representative Recognition of trade unions in a Caribbean context may be dealt with at two levels - firstly, recognition as a legal entity (recognition by the State) and, secondly, recognition in terms of representativity. Regarding the first aspect, what is required in all Caribbean countries is that a union must be legally registered as a precondition for gaining representational status vis-à-vis the employer in an enterprise. In the vast majority of countries, the law requiring the registration of trade unions goes back to the 1930s and the 1940s without any substantial amendments since then. For example, any seven persons may still join together in registering a trade union in several of the countries, as was the case years ago. In this respect and others, there may be a need for revision of trade union legislation. The representativity of unions however has historically been a major source of industrial conflict and hostile industrial relations in Caribbean countries. Since the 1970s, the traditional volatility surrounding the question of recognition has subsided considerably. Legal procedures have been introduced in several territories which made for a more orderly processing of recognition claims and which established compulsory recognition of trade unions. Trinidad and Tobago has gone farthest in this regard. Under its Industrial Relations Act of 1972, trade union recognition has been removed from bilateral determination between employers and trade unions and placed under third party jurisdiction in the form of an independent Registration, Recognition and Certification Board, chaired by a neutral person. This has brought about a dramatic change from a situation where recognition issues had been one of the main sources of confrontation, including bitter strikes, to a very orderly and peaceful area of industrial relations in that country. A number of other Caribbean countries have also introduced legislation, relating to trade union recognition within the last two decades, although they have not gone as far as Trinidad and Tobago in establishing permanent independent bodies for determining recognition claims. In most cases, a poll system is used which is conducted by the Ministry of Labour to determine the validity of claims in terms of majority membership of the claimant union, as well as the nature and scope of the relevant bargaining unit. Where more than 50 per cent is reached at the polls, compulsory recognition is legally enforced. This applies, for example, in the Bahamas, Dominica 9

16 LABOUR RELATIONS IN THE CARIBBEAN REGION and Jamaica. In the latter country, where there is more than one claimant union, recognition may be granted to the union securing the highest number of votes provided it reaches a certain minimum percentage of the total votes. The polling system is also applied in other countries, even where there is no legislative requirement to that effect. In such cases, polling is done as a matter of custom and the results are generally respected by the parties as a matter of practice. In a few countries where recognition is granted on a voluntary basis, as in St. Vincent, polling is hardly ever used. With assistance from the Ministry or Department of Labour, recognition issues are eventually resolved. In Barbados, where the system is entirely voluntary, recognition issues have not caused any major confrontation since 1972 when there was a nine-week strike in pursuance of a recognition claim. The system of industrial relations, public policy and labour laws The traditionally voluntary system of industrial relations which Caribbean countries inherited from the British prototype, continues to dominate the contemporary scene. However, some post-independence trends involving a greater measure of legislative intervention into industrial relations have been in clear evidence. There is an increasing preoccupation of governments, with accelerating economic development and post-independence labour laws in general, to be oriented more towards socio-economic development objectives, compared with pre-independence labour laws which were of a more protective nature. A set of post-independence labour laws has been strongly oriented towards stabilising the industrial relations climate by way of regulating the collective bargaining process and by establishing disputes settlement procedures and machinery for minimising disruptive industrial action. Up to 1965, for example, the only aspect of trade disputes in which industrial action was legally proscribed throughout the region was that relating to essential services. Also, there was no legislative framework for collective bargaining. In Trinidad and Tobago, in 1965, an Industrial Stabilisation Act was enacted which introduced procedures in respect of the collective bargaining process, which virtually proscribed strikes for whatever cause. It also created a permanent industrial court - a superior court of record - for the peaceful resolution of all trade disputes. Antigua followed two years later by repealing its Arbitration and Enquiry Ordinance, which provided for voluntary arbitration, and by replacing it with a Trade Dispute (Arbitration and Settlement) Act under which the Minister of Labour is empowered, in his discretion, to submit trade disputes for compulsory arbitration. It also established a standing industrial court. In the following decade, an Industrial Relations Act was adopted in the Bahamas (1970) which was essentially based on the Trinidad and Tobago Industrial Stabilisation Act. In 1972, the latter piece of legislation was repealed and replaced by an Industrial Relations Act which, while relaxing the total prohibition of all strikes, nevertheless made industrial action illegal in respect of rights' disputes and placed procedural controls on interest disputes. A 1987 amendment to that Act provides for time-limits, after which industrial action in pursuance of an interest dispute is to be legally terminated. In 1975, followed Jamaica's Labour Relations and Industrial 10

17 BACKGROUND PAPER Disputes Act, which created a standing Industrial Disputes Tribunal for the adjudication of labour disputes and which, by an amendment in 1978, empowered the Minister of Labour to refer any dispute to the Tribunal if, in his opinion, the national interest was threatened or jeopardised. In the same year, an Industrial Relations Act, based to a large extent on the Trinidad and Tobago Industrial Relations Act, was adopted in Dominica, which also established a standing Industrial Relations Board and a tribunal for the peaceful settlement of labour disputes and set procedures relating to collective bargaining. Comprehensive Labour Codes, dealing with various aspects of industrial relations, have been enacted in Antigua and the British Virgin Islands and similar Codes have been drafted in St. Lucia and Grenada. Legislative intervention into the collective bargaining process has also taken place in recent years in Guyana and Barbados. These developments show a clear trend towards using labour legislation as an instrument in the promotion of economic development. Much legislative effort has, in the post-independence period, also been devoted to protection against termination of employment. Several Caribbean countries, including the smaller ones, now have legislation of this kind. There are, for example, the Employment Ordinance with provisions relating to redundancy benefits in Montserrat, the Protection of Employment Act of 1980 in St. Vincent, the Protection of Employment Act of 1977 in Dominica, the Termination of Employment Act of Jamaica and of Barbados, and the Retrenchment and Severance Benefits Act of 1985 in Trinidad and Tobago. Collective bargaining Except in the very small islands (such as Anguilla, Turks and Caicos, Cayman and the British Virgin Islands), collective bargaining is a widely established process through which terms and conditions of employment are determined in Caribbean countries. It is difficult to determine its extent precisely because there is no legal requirement in several of the countries for collective agreements to be registered; but an indication may be gleaned from the few countries where there is such a requirement. In Trinidad and Tobago, with a labour force of some 480,000, for example, employment terms and conditions of over 40 per cent of the employed workforce are directly regulated by approximately 450 collective agreements. In structural terms, bargaining at the enterprise or plant level is overwhelmingly the predominant pattern of the region. Industry-wide bargaining, involving separately owned enterprises in a given industry, is virtually non-existent. In the odd case where operations are decentralised in different plants, but owned by a single company, bargaining is done at the same time or almost simultaneously, culminating in almost identical collective agreements for the separate operational units. For example, this is the case in the Caribbean Glass Works Company Limited and the Caribbean Development Company Limited in Trinidad and Tobago; but this can hardly be regarded as industry-wide bargaining in the true sense. The dominance of enterprise-level bargaining is strikingly illustrated in Jamaica's bauxite and Trinidad and Tobago's petroleum industry. Although until recent years one union had recognition status in the different bauxite companies, 11

18 LABOUR RELATIONS IN THE CARIBBEAN REGION negotiations were nevertheless conducted separately with each company. Recently, more than one union has gained recognition in that industry. In the case of the petroleum industry of Trinidad and Togabo, however, where a single union continues to hold exclusive representation rights and where all the companies (with two exceptions) are owned by the Government, separate negotiations with the different employer entities still prevail. A notable departure from enterprise-level bargaining is to be found in Jamaica where there is a type of industry-wide bargaining under a mechanism, known as the joint industrial council, where several employers from the same industry and unions are represented. This mechanism, which has been traditional in Jamaica for many years, exists in industries such as sugar, shipping and contracting. However, there may be smaller enterprises in the same industry which are not part of a joint industrial council. It could also be argued that some measure of bargaining does in fact take pice at the national level in certain territories, where standing tripartite bodies exist and effectively operate. This is especially the case in Trinidad and Tobago since That country's tripartite body determines its own agenda and, while not originally intended to be a bargaining forum, its deliberations in fact involve a great deal of bargaining, resulting in the setting of national terms and conditions of employment, some of which are incorporated into labour laws. Bargaining which could be regarded as national, or perhaps industry-wide, occurs in the public sector in countries where collective agreements are negotiated between government authorities and one or more unions on behalf of several groups of public service employees. Until the early 1980s, for example, in Trinidad and Tobago the public service, teachers', postal service, prison service and police associations negotiated separately with the Government's chief personnel officers for their respective groups of employees. Since 1984, however, they have been negotiating together through a joint negotiating team. A similar, though less unified pattern, exists in Barbados, Saint Lucia, Bermuda and Antigua among other Caribbean countries. Centralised bargaining between Guyana's Ministry of Public Service and a number of public service unions dates back to In 1977, there was a change in bargaining with the Trades Union Congress. The law was amended accordingly in 1984, which will be discussed later. The tendency toward centralised public-sector bargaining is sectoral in nature, since it is limited to public sector employees. In Jamaica, however, separate bargaining between that country's Ministry of Public Service and the different public service associations prevails. Methods, practices and quality of collective bargaining vary in relation to the level of economic development in the various countries, differences in the bargaining strength of unions within a country and, often, the size of the enterprise. There are, however, some general features which are more or less typical throughout the region. For example, union proposals for revision and renewal of collective agreements tend to be very comprehensive, touching upon virtually all substantive clauses of the current or expired agreement. Employers, in turn, tend merely to offer defensive counter-proposals. The traditional practice of unions' proposals being highly inflated and beyond realistic expectation, continues to be fairly common, although somewhat reduced in recent years, no doubt because of the economic downturn. 12

19 BACKGROUND PAPER The traditional practice of large union negotiating teams also remains a conspicuous feature of collective bargaining in Caribbean countries. In respect of employers' negotiating teams, there is a marked shift away from leadership of negotiations by line management to professional leadership by personnel and industrial relations managers and/or consultants. In the Leeward and Windward Islands there is a practice of employers' teams being led by officials of employers' federations. As a consequence, negotiations tend to be rather tedious and lengthy exercises. Irrelevant issues arise and recriminations occur not infrequently, which may lead to side-tracking from the real issues. It is not unusual therefore that a relatively large proportion of contract negotiations is submitted to government ministries and departments of labour for conciliation after deadlocks, sometimes prematurely, have been reached. Usually, almost all the original union proposals and employers' counter-proposals are still unsettled when the dispute reaches the stage of third party interaction. Notwithstanding these weaknesses, there has been a marked improvement in the level of sophistication and the quality of bargaining in many of the countries of the region, at least in certain sectors. Several trade unions now come to the bargaining table better prepared with an armoury of research information. More educated leadership and growth in "white-collar" unionism over the past two decades have decreased the traditional bellicose and abusive behaviour of union negotiators and improved the quality of arguments proffered in support of negotiating positions. Collective bargaining in Caribbean countries on the whole remains within the framework of voluntarism. Caribbean legislators have rather attempted to restructure the industrial relations framework to varying degrees as regards orderly procedures for, and compulsory recognition of, trade unions, procedures for collective bargaining and a requirement to bargain in good faith, legal enforcement of collective agreements, compulsory arbitration where the voluntary system fails to resolve disputes and the setting up of permanent disputes' settlement machinery. There are, however, some exceptions where, intermittently, legislation has been used to determine wages and salaries; this will be dealt with later. In respect of the content of collective bargaining, there are virtually no legislative constraints except in respect of wages to some extent. The few laws on collective bargaining relate mainly to procedural aspects, but not to content or substance of bargaining. Some sections of the Industrial Relations Acts of Trinidad and Tobago, Dominica and Bahamas, for example, deal specifically with collective agreements but none of them carries stipulations in respect of content beyond prescribing minimum and maximum periods of an agreement and the requirement of a grievance procedure to be contained therein. In short, free collective bargaining is on the whole practised throughout the Caribbean region. Because of this freedom, bargaining takes place over a very wide range of subject matters pertaining to terms and conditions of employment. Nevertheless, negotiations not infrequently end in deadlock over the question as to whether a matter is bargainable or not. There is therefore a tendency towards long and comprehensive collective agreements with clauses spelling out many details. It is not uncommon to find agreements with some 50 clauses or more, covering preambles, regulatory procedures and rules, money 13

20 LABOUR RELA TIONS IN THE CARIBBEAN REGION matters, fringe benefits, grievance procedures and penalties, among other things. The average duration of collective agreements is two years. This is the pattern in Jamaica. Three-year agreements are also common in a number of countries and are in fact a legally stipulated minimum requirement in Trinidad and Tobago. Longer agreement periods are virtually non-existent, as are one-year contracts, although in Trinidad and Tobago there is a maximum period of five years prescribed by law. A noteworthy trend which has been progressively developing over the past two decades, is public sector collective bargaining in the real sense of the term. The traditional pattern has been that, while true collective bargaining existed in the majority of Caribbean countries for public sector employers in statutory corporations, state enterprises and central government's daily/weekly-paid categories, it was not the case in respect of central government's monthly-paid employees who are usually referred to as "civil servants". Associations representing this latter category would be consulted through mechanisms called "Whitley Councils", particularly in respect of salary revisions, but agreement was not a prerequisite for the implementation of new salary scales. More recently, however, these public service associations, having become increasingly fully-fledged trade unions and, being in closer association with general unions as well as being affiliated to national trade union congresses, have been engaging in true collective bargainig with terms and conditions of work being made subject to agreement. They also utilise the strike weapon to back up their negotiating positions. Such development is in evidence in, among others, Jamaica, Trinidad and Tobago, Bermuda and Dominica. Bilateral consultative and decision-making practices other than collective bargaining can play a significant role in labour-management relations, but by and large they are not put to effective use in most Caribbean countries. Standing arrangements for bilateral consultation between employers and trade unions at the enterprise or national level hardly exist. Bilateral meetings between labour and employers are usually connected with some form of negotiation or grievance. An encouraging development in this regard took place in In Jamaica, an industrial relations exhibition was mounted jointly by the Jamaica Employers' Federation and the Joint Trade Union Research Development Centre, in collaboration with the Norwegian Labour Movement. In Trinidad and Tobago a similar event took place, involving that country's Seamen and Waterfront Workers' Trade Union and companies where the union has bargaining rights. Needless to say, these events necessitated several preparatory meetings between the parties where neither negotiations nor grievances were involved. Wage determination and trends While the traditional pattern of freely negotiated wages between trade unions and employers remains fairly intact in the region, instances of intervention by government have taken place from time to time since the 1970s. Two main developments have no doubt contributed to this trend. The rise of oil prices in the 1970s and their fall in late 1986, as well as the global recession of the 1980s, had severely adverse effects on 14

21 BACKGROUND PAPER Caribbean economies. The oil price escalation of the 1970s considerably enhanced the Trinidad and Tobago economy, whereas all other Caribbean countries without oil production suffered immensely. The reverse of course occurred with the downward price development in the 1980s. The global recession of the 1980s however wreaked havoc on all alike. These developments had the effect of significantly influencing economic policies in general and wage trends in particular, and led to greater state intervention. In Jamaica, which was the first Caribbean country that had to resort to stand-by assistance from the International Monetary Fund, a system of wage guide-lines was introduced by the Government beginning in Although not made into law, a paper on wage guide-lines was issued by the Government in that year, stipulating levels and rates of wage increases over a three-year period not exceeding a maximum of J$10 per week or the amount of increase in cost of living, whichever was the smaller. In 1978, further guide-lines were given, this time expressed in percentage rather than monetary terms. The maximum was 15 per cent for 1978,10 per cent for 1979 and 10 per cent for Subsequent wage guide-lines have been issued since then coinciding with periods of stand-by agreements with the International Monetary Fund and ranging between 10 per cent and 15 per cent for the public and private sectors, respectively. Similar wage guide-lines have also been introduced and have served to effectively regulate public sector salaries in Dominica within the past decade. As in Jamaica, the guide-lines in Dominica coincided with stand-by agreements with the International Monetary Fund. These guide-lines, not being legally enforceable, have not been strictly adhered to in the private sector but they have nevertheless strongly influenced wage levels in that sector. In the final analysis, therefore, government intervention by way of wage guide-lines has been effectively regulating overall wage trends in these two countries over the past decade. The most stringent state intervention and control of wages in Caribbean countries is to be found in Guyana, where the public sector is overwhelmingly predominant and where wages are largely determined by government directives. Negotiations of some sort between the Government as an employer and trade unions do take place, but in reality those resemble more consultation than true collective bargaining since, in the final analysis, the wages and salaries are those unilaterally determined by the Government. A collective agreement which was negotiated about a decade ago between public sector unions and the Government as employer, and thus established certain levels of pay increases, was not fully implemented. The Government's attitude in this regard was successfully challenged in the High Court some years later, following which retroactive legislation was enacted to nullify the Court's decision. Further, as indicated earlier, the legislation which was enacted in 1984 empowered the Government to legally enter into agreements with the National Trades Union Congress regarding terms and conditions of public sector employees. Such agreements take precedence over any law, arbitrator's awards, contracts, or any collective agreements with an individual union. The law also provides for Presidential Orders setting pay levels for public sector employees. The constitutionality of this law was successfully challenged in the Appeal Court recently, but the Government has 15

22 LABOUR RELA TIONS IN THE CARIBBEAN REGION announced its intention to amend the Constitution which would nullify the Appeal Court's ruling. Less stringent methods of State determination of wages have been taking place in a few other countries. For example on more than one occasion in Barbados, after failure to reach agreement in negotiations with public service unions, the Government legislated pay increases for public sector employees. And on one occasion in Saint Lucia, in reaching agreement with the unions involved on pay increases for public sector employees, the Government determined that payment of those increases would be made at a future time when funds became available. But that future date was not honoured by the Government, which led to some measure of confrontation between the unions and the Government. A notable feature of wages in Trinidad and Tobago, not paralleled in other Caribbean countries, was the rapid if not dramatic rate at which wages and salaries increased between 1974 and 1981, on the basis of rising oil prices during that period. But with the plummeting of oil prices and the steep economic decline in recent years, a reversal of the wage trend occurred initially in the private sector, and it led to substantially lower wage increases, wage freeze and even rollbacks, including the removal of a cost-of-nviri^llowance which was applied throughout the private and public sectors. The government's offer of a six per cent pay rise for public sector employees in the context of a three-year agreement from 1985 to 1987, which public sector unions rejected, was recently withdrawn before a tribunal, where the dispute has been pending for some time. As a result, wage and salary levels for most public sector employees have remained at 1984 levels. In addition, exercising its authority under the Audit and Exchequer Ordinance, the Minister of Finance discontinued the payment of the cost-of-living allowance to public sector employees over a year ago. Notwithstanding these developments, however, the Government has not directly intervened in wage negotiations as has happened in the countries referred to above. The primary objective of minimum wage legislation is of course to protect workers, particularly non-unionised workers whose bargaining power may be too weak to command a fair and decent wage level. Some Caribbean countries, e.g. Jamaica and Dominica, have remodelled in the past decade their minimum wage laws to raise the level of minimum wages and of other standards. In some countries, for example in Trinidad and Tobago, the wage levels contained in the Minimum Wage Order have not been revised for a number of years. This may be regarded as an indirect method of legislative constraint upon wage trends, for some hold the view that minimum wages and standards, while being desirable and useful in protecting certain workers, tend also to exert a depressive influence on wage levels throughout the economy. In certain areas where minimum wages apply, some of the workers are in fact unionised and may, through collective bargaining, perhaps secure higher wage levels. Indexation as a method of regulating wage levels is hardly used in Caribbean countries. In Trinidad and Tobago, a practice of a cost-of-living allowance, beginning during the Second World War, has been continued up to now with a brief interruption in the 1960s. Employers and the Government have succeeded in the last few years in partially discontinuing this practice, but it still widely prevails. At any rate, it can hardly be regarded as true indexation since wages are usually determined for a three-year 16

23 BACKGROUND PAPER period independent of the retail price index and with annual increases. The cost-of-living allowance moves in relation to the retail price index and is paid in addition to, but independent of, negotiated wage levels. Labour disputes and settlement machinery Traditionally, the major source of disputes was disciplinary matters. Interest disputes arising out of negotiations for new terms and conditions of employment did frequently occur but compromises and settlement, often with third party assistance from Labour Departments, usually emerged. In recent years, however, and no doubt as a consequence of declining economic circumstances, contract negotiations and retrenchment have become major sources of disputes, not necessarily in numerical terms but as regards their difficulty and intractability. This new dispute trend is found most strikingly in the Trinidad and Tobago situation where the economic decline has been most precipitous and dramatic over the last five years or so. With the weakening of unions' bargaining power in such economic circumstances, employers in general have sought to make offers and counter-offers in negotiations tantamound to freezing and/or reducing subsisting terms and conditions. Unions, on the other hand, confronted with a face-losing position if they willingly accept, have had to seek third party adjudication of such disputes. All this has led to escalating confrontation on the labour-management scene, and to a new trend of lock-outs replacing strikes as a form of industrial action. And accompanying this new form of industrial action, a practice of offering employer-determined individual contracts to workers as a basis for continuing employment has also developed in certain quarters. The upshot is that collective bargaining has been seriously impaired in recent years, resulting in a substantial reduction in the number of collective agreements made through negotiations and/or conciliation. A spate of retrenchment disputes has also come about in recent years. The nature of such disputes varies but is mainly of three types - those concerning eligibility of the workers for severance benefits, be it in terms of a collective agreement, laws or long-standing practice, those concerning alleged victimisation and those relating to default of employers in paying severance benefits to workers. For example, in Trinidad and Tobago, since January 1985 when a retrenchment and severance benefits Law was enacted, some 350 such disputes have been reported to the Ministry of Labour. Similar dispute trends have been in evidence in other Caribbean countries, although not as pronounced as in Trinidad and Tobago, which is explainable by the fact that the economic decline in those territories has not been as precipitous, but more gradual over a long period, beginning in the 1970s when oil prices rose steeply. The Jamaican experience comes nearest to that of Trinidad and Tobago in this regard. And so it should not be surprising that among the more recent labour laws enacted in the region have been Redundancy Payments Acts or the Termination and Protection of Employment Acts. Many Caribbean countries now have a law of that kind. With regard to disputes settlement, there is usually no particular distinction made either in law or practice between types of dispute as well as methods and 17

24 LABOUR RELA TIONS IN THE CARIBBEAN REGION procedures for dealing with them, except in Trinidad and Tobago. The traditional voluntary anbd three-tiered process of a bilateral grievance procedure, followed by third party and government-provided conciliation and thereafter by voluntary arbitration, still prevails in most of the countries of the region. One exception exists in respect of essential service disputes, where industrial action is prohibited and arbitration is mandatory. Regarding other types of dispute, in certain countries such as Jamaica compulsory arbitration may be initiated by the Minister of Labour on the basis that the national interest is jeopardised or threatened. Trinidad and Tobago, as already indicated, is the only Caribbean country in which disputes are classified for procedural purposes. In respect of disputes over new or revised terms and conditions, commonly described as disputes over interests, certain procedures before industrial action is taken are prescribed by law. Industrial action may not be taken before the date on which the Minister is required, following conciliation, to declare a dispute unresolved. Nor is industrial action legally permissible more than seven days after the Minister was required to declare the dispute unresolved. If no action is taken within that prescribed period, the Minister is legally obliged to refer the dispute to the Industrial Courts, after which industrial action cannot be legally taken. Also, notice of intention to take industrial action is a legal requirement. On the other hand, in respect of disputes over rights, the Minister is obliged under the law to refer the matter for arbitration to the Industrial Court after the dispute has been declared unresolved. While prior notice to take industrial action is a practice in some of the other countries, it is a legal requirement only in Trinidad and Tobago. There is nowhere a legal requirement for a ballot to be taken before strike action. "Cooling off periods before strike action, which are fairly common in other countries, do not exist in the region except in Antigua where the Minister of Labour is empowered to institute such a period, not exceeding 60 days, if he considers the national interest to be in jeopardy. Disputes settlement machinery for the final determination of industrial disputes exists in two countries. Antigua and Trinidad and Tobago have Industrial Courts but there is a difference between them in terms of status. The latter is a superior court of record, which is more or less similar to the Supreme Court of the land, while the former is at a lower level. In Jamaica there is a permanent Industrial Disputes Tribunal, and in Dominica a permanent Industrial Relations Board, from which a tribunal is empanelled as the occasion arises. In the majority of countries, however, ad hoc arbitration panels are the norm. Two main problems are experienced in the operation of the permanent disputes settlement institutions. One is their failure to expeditiously dispose of disputes, thus resulting in substantial backlogs. The Trinidad and Tobago experience is by far the worst in this regard. The other problem is the not infrequent question of awards by Supreme and/or Appeal Courts on points of law. Workers' participation Institutionalised worker participation has been much talked about, but schemes to that end are more the exception than the rule. There was a major thrust to establish worker participation as a feature of industrial relations in Jamaica several years ago, 18

25 BACKGROUND PAPER but after a few years of preparatory work it dissipated without leaving behind any tangible result. Within the past year, a new development has emerged in Trinidad and Tobago, beginning with the placing of workers' representatives on boards of State enterprises and statutory corporations. This, however, has not spread to the private sector. Works councils and other bilateral committees operate in very few undertakings only. Tripartite mechanisms exist on a somewhat wider scale. As indicated earlier, Tripartite labour advisory bodies are incorporated in law in a number of territories. However, most of these bodies are not yet fully operational. Some have even fallen into disuse. Trinidad and Tobago's Industrial Relations Advisory Committee, which is provided for in that country's Industrial Relations Act of 1972, met periodically within the first two years but has never been convened thereafter. Since 1982, however, tripartism has gained considerable momentum in Trinidad and Tobago. The Standing Tripartite Body which was established in that year has dealt with several important industrial relations matters, such as the formulation of policies for the enactment of a Retrenchment and Severance Benefits Act in 1985, a comprehensive set of proposals for amendments to the Industrial Relations Act, a Tripartite Concordat, a Code of Industrial Relations Practice and the revision of the Shop (Hours of Opening) Ordinance. Two new tripartite fora at a higher level under the chairmanship of the Prime Minister - a National Planning Commission and a Joint Consultative Council - have been established, also within the past year. 19

26 Labour relations in Antigua and Barbuda: A government view Milton Lewis, Deputy Labour Commissioner, Antigua and Barbuda Introduction There are three main pieces of labour legislation governing industrial relations in the State: the Antigua Labour Code of 1975 (as amended); the Industrial Court Act of 1976 (as amended); and the Civil Service Act of The Labour Code and the Industrial Court Act have brought some changes to the industrial relations framework. The Labour Code has imposed minimum conditions on the conduct of industrial relations and establishes a system for compulsory recognition of trade unions by employers. The Industrial Court Act, on the other hand, has established a standing Industrial Court for compulsory arbitration of any grievance between employers and workers. Under the Industrial Court Act either party to the dispute or the Minister of Labour can refer a dispute to the Industrial Court, and once referred, all other negotiations, proceedings or attempts at voluntary settlement by any other body or authority are to forthwith cease to have effect for the purposes of that trade dispute. The Civil Service Act also brought significant changes for industrial relations in the public sector. Whereas previously terms and conditions of employment governing civil servants were unilaterally fixed by the Government, the Act now makes provision for prior consultation and negotiations between the Government and representatives of civil servants. The Act prevents civil servants' organisations from registering as a trade union. Problems of trade union membership, multiplicity and recognition Trade unions in Antigua belong to the general or blanket type. There are a number of staff unions/associations registered under the Labour Code but most of them seem unable to effectively represent their members in collective bargaining because they do not have full-time officers and their members operate from their workplaces. Since the abolition of the agency shop, the trade unions, especially the Antigua Workers' Union, have experienced a reduction in membership. Under the agency shop arrangement, members and also unaffiliated workers within a bargaining unit were required to pay regular union fees. Under the present system, unaffiliated workers are no longer required to pay regular union contributions but a negotiating fee of $50 E.C. to the bargaining agent in respect of every collective agreement negotiated by the union. This makes it much cheaper for a worker to be unaffiliated since a worker's regular union contribution is about $50 E.C. over the duration of a 20

27 ANTIGUA AND BARBUDA: A GOVERNMENT VIEW three-year collective agreement. The Antigua Workers' Union has complained that the new system not only discourages potential members but it also causes members to withdraw their membership in favour of the lower rate applicable to non-members. Multiplicity of trade union membership hardly occurs in Antigua. The law provides for a sole representation of workers within a particular bargaining unit and once a bargaining unit is determined there can be no encroachment by any other trade unions. Also, because of the general character of unions, a bargaining unit normally groups all workers, white-collar and bule-collar, below supervisory level leaving very little room for any other union to form another unit within the same establishment. Therefore, in most establishments there is only one union representing workers. There are no major recognition problems in Antigua. Under the Labour Code, employers are obliged to recognise a registered trade union upon certification of the union by the Labour Commissioner. The proceeding leading to certification is initiated by the union's filing a timely petition with the Labour Commissioner upon receiving at least 30 per cent of the support of the workers within the prospective bargaining unit. The petition is "timely" if it is made on behalf of a group of workers who are not currently represented by a registered trade union, or if so represented, when it is made 30 days before the expiry date of the collective agreement, if it is a one-year agreement; or 60 days before the expiry date, if it is a two-year agreement; or 90 days before the expiry date of the agreement, if it is a three-year agreement. Upon the receipt of a timely petition, the Labour Commissioner is required to conduct a secret ballot to determine whether or not the trade union has the majority support of the workers within the bargaining unit. If the trade union receives 51 per cent or more of the votes cast, the Labour Commissioner is required to certify the trade union as the sole bargaining agent of the workers within the bargaining unit. If the trade union receives 50 per cent or less of the votes cast, the Labour Commissioner will issue a certificate of non-union support and in this case the employer is not bound to treat with the union. Employers' organisation membership, structure and role In Antigua, there are a number of employers' organisations but only one, the Antigua Employers' Federation, concerns itself mainly with industrial relations matters. The Employers' Federation represents employers from various economic sectors on an individual basis. The membership of the association has experienced some growth in recent years rising from 52 in 1975 to about 98 members currently. The Federation gives advice to its members on industrial relation matters and represents them in negotiations and in grievance disputes. It also represents its members on the National Labour Board and the Minimum Wage Advisory Committee. 21

28 LABOUR RELA TIONS IN THE CARIBBEAN REGION Collective bargaining bodies and procedures, structure of bargaining Generally, collective bargaining is conducted at the enterprise level between the employer and one of the unions. In establishments with staff associations, the partners to negotiation are the staff associations and the respective employers. There are some exceptions as regards the level at which bargaining takes place. In the construction, hotel and shipping industries, there is a system of bargaining whereby the major employers' association in each of these sectors negotiates one collective agreement applicable to all its members. Invariably, it is the Union which initiates negotiations by making proposals to the employer who then puts forward counter proposals which usually offer less than what the union is claiming. Both sides, in the process of negotiations, are expected to make adjustments in search of a settlement. If the parties are unable to reach agreement on the issues either of them may refer the matter to the Labour Commissioner. The rules contained in the Labour Code for dealing with negotiations are the same as those for dispute settlement. They are explained below. Public sector bargaining Workers in the public sector are classified into two categories: established and non-established. Non-established employees are represented by one of the blanket-type unions and, as a consequence, practise industrial relations similar to those in the private sector. Established employees are civil servants and are governed by the Civil Service Act of The Act makes provision for civil servants to form associations which are required to register with the Chief Establishment Officer of the Establishment Department. Upon registration, Civil Servants' Associations shall be recognised by the Minister responsible for civil servants' affairs for the purpose of consultation and negotiation in respect of: (i) classification of officers; (ii) grievances; (iii) remuneration; and (iv) terms and conditions of employment. The Chief Establishment Officer is responsible for consultation and negotiation with recognised associations of civil servants on behalf of the Government. Where the Chief Establishment Officer consults and negotiates with associations of civil servants on any of the matters specified above and agreement is reached, it shall be recorded in writing and, with the approval of the Minister, shall be signed by the Chief Establishment Officer on behalf of the Minister and the recognised civil servants' association. Where no agreement is reached within 21 days or within such further period as may be agreed upon, either the Chief Establishment Officer or the recognised civil servants' association is required to report the matter to the the Minister and, on such report being made, a dispute is deemed to exist. In this case, the Minister shall refer the dispute for settlement to a special tribunal established under the Act, within 21 days from the date on which the dispute was reported to him. If the Minister fails to report the dispute within the prescribed period the recognised association that is a party to the dispute shall do so within 21 days from 22

29 ANTIGUA AND BARBUDA: A GOVERNMENT VIEW the date of the expiration of the 21 days. Under the Act, the special tribunal is authorised to hear and determine any dispute referred to it and to make any award on the dispute. The special tribunal shall comprise of the president of the Industrial Court as Chairman and two other members, each representing government and the recognised Civil Servants' Association. The award of the tribunal shall be binding of the parties. Scope and content of bargaining Most of the bargaining in Antigua covers workers below supervisory level. The Labour Code prohibits the inclusion of management, supervisory staff, confidential employees and security guards in the same bargaining unit as other employees. There is some bargaining among supervisory staff but management staff are yet to conclude collective agreement with their employers. The Labour Code, while providing for the right of all workers to form and associate with trade unions is not clear as to whether management staff can form into bargaining units and attempts by at least one of the management staff associations to form into bargaining unit have been opposed by their employers. Collective agreements cover a good deal of ground. Usually, they consist of general provisions defining the scope of application of the agreement, provisions defining respectively management and union rights, grievance procedures, hours of work, leaves, wages, etc. Wages and bonuses naturally form one of the main subjects in collective bargaining but in recent times, longer holidays and other leaves with pay and bonuses are increasingly being dealt with. Causes of disputes and trends in law and practice of dispute settlement The majority of disputes arise over disciplinary action by employers and on dismissals and severance pay. Disputes over recognition hardly occur since employers are bound to treat with the Union upon certification by the Labour Commissioner. Prior to 1975, all trade disputes were dealt with under the Trade Dispute (Arbitration and Settlement) Ordinance No. 13 of 1967 under which there was a standing industrial court for the purposes of hearing and determining trade disputes. In 1975, the Antigua Labour Code repealed the above Ordinance and established the following system for the settlement of trade disputes. Under the Labour Code, the Labour Commissioner is responsible to receive questions, complaints, petitions or notifications with respect to employer/employee relations in the State whether by notification from any party thereto or by any other means and he has to make every effort to dispose of the issue by voluntary adjustment or settlement. Within ten days after the existence of a trade dispute has come to his attention, if he has failed to achieve a voluntary adjustment or settlement, the Labour Commissioner is required to submit the matter to the Minister responsible for Labour. 23

30 LABO UR RELA TIONS IN THE CARIBBEAN REGION The Minister is also required to attempt a voluntary adjustment or settlement of the matter by taking whatever steps he deems appropriate. If after ten days he fails to achieve a voluntary adjustment or settlement, he may: (a) refer the matter back to the parties for private negotiations or resort to any machinery for resolving the issue which they have established; or (b) refer the matter to the proper authorities if he believes prosecution for the commission of an offence is indicated; or (c) refer the matter for formal handling to a decisional officer; or (d) refer the matter to the Arbitration Tribunal. A "decisional officer" is defined in the Code as a Hearing Officer, i.e. the Labour Commissioner or his appointee from the Labour Relations Service. A Hearing Officer has jurisdiction to hear and determine any question, petition, charge or complaint concerning severance pay, unfair dismissal, etc. Thus when the Minister refers a matter to a Hearing Officer, he is actually sending the matter back to the Labour Commissioner to be heard by him and for a binding decision to be given. Either party to a dispute decided by a Hearing Officer may appeal within five days to a Board of Review comprising a government representative as chairman and two other members each representing the employer and the employee. The Arbitration Tribunal has jurisdiction to hear trade disputes which have or may lead to an interruption of work and which had or are likely to have serious consequences on the country's economy. The Arbitration Tribunal has never been active but Hearing Officers have handed down a number of decisions until 1984 when the Minister of Labour has discontinued referring matters to them. In 1975, the Arbitration Act No. 12 was introduced with the view to accommodating arbitration by voluntary agreement. Under this Act a sole arbitrator or a panel of two arbitrators and an umpire may be appointed. Matters that have been sent back to the parties by the Minister are usually dealt with under this Act. The parties are required to pay the cost of arbitration and for this reason the parties hardly agree to its use. Only about six disputes have been handled thereunder since its enactment. In 1976, the Industrial Court was reintroduced by the Industrial Court Act to provide an alternative machinery for the hearing and determination of trade disputes. Either party to a trade dispute may refer a matter to the Industrial Court if within ten days the matter has come to the attention of the Labour Commissioner and he has failed to achieve a voluntary adjustment or settlement. The Minister of Labour may at any state refer a matter to the Industrial Court where the existence of the dispute has come to the attention of the Minister or the Labour Commissioner. As mentioned before once a matter has been referred to the Industrial Court all other attempts at voluntary settlement are to cease. The Industrial Court is now being used as the final arbiter of all unresolved disputes referred to the Labour Commissioner or the Minister. 24

31 ANTIGUA AND BARBUDA: A GOVERNMENT VIEW Workers' participation in decision-making in the enterprise Workers' participation in decision-making in the enterprise has not yet become an issue in Antigua. Neither the workers nor their organisations are demanding it and it seems it is not going to be an issue in the immediate future. The role of the State in industrial relations The Labour Code embodies the national policies underlying industrial relations in the State. The Labour Department is the government agency responsible for the administration of the Labour Code and as such plays an important role in the system of industrial relations in the State. In particular, the Labour Department: 1. Serves asa third party in the settlement of trade disputes. It is the Government's policy that employers and workers should be allowed to settle their grievances free of external interference but where they are unable to do so, they can approach the Labour Department for assistance. If necessary, the Labour Department will intervene directly if the continued existence of the dispute may harm the economy of the State. 2. Directs and carries out functions relating to the recognition and registration of trade unions. In order to promote equality of bargaining power between employees and their employers, the Labour Department provides machinery for the speedy resolution of any question concerning representation of employees by bargaining agents. The Labour Department is also responsible for the registration of trade unions and employers' organisations. 3. Enforces legal provisions governing working conditions, including safety, health and welfare by regularly inspecting all workplaces to ensure effective protection of workers, while engaged in their work. 4. Promotes and maintains regular dialogue with representatives of trade unions and employers' associations with a view to obtaining their contributions in the formulation of the Government's labour policy. Employers and workers contribute through their representatives on the National Labour Board, a tripartite body consisting of members from the Government, the employers and the employees, which is responsible for updating the law on industrial relations in the State. 25

32 Labour relations in Antigua and Barbuda: An employers' view Henderson Bass, Secretary, Antigua and Barbuda Employers' Federation The Antigua Employers' Federation was officially launched in December 1950 with membership comprising employers from the plantation and merchant sector. With the passing of time, membership has been expanded to include hotels, restaurants, airlines, banks and other establishments in the service sector. There are also a few members from the light manufacturing industry, as well as a few government statutory bodies. Applications for membership are processed through the Governing Committee which makes the decision. One of the problems faced is that many companies do not see the need for the Federation's services until the trade unions are at their doorsteps, or they are faced with a major trade dispute. Sometimes, even members lack commitment to support the organisation until there is a crisis. Another common problem is that the level of membership is dependent upon the stability of the market place. One example is that during the oil crisis many companies were forced to close operations which in turn had a negative impact on the Federation's membership. The Federation is administered by a Governing Committee of 11 elected representatives of member companies with a corresponding number of alternates. From this group, a Chairman and a Vice-Chairman are elected. The Office is administered by the secretary, an assistant, a clerk-typist, and a messenger, all appointed by the Governing Committee. The former director is presently functioning as a consultant. The Federation is financed through subscriptions by members which are paid on an annual basis. The Federation's role is to advise and represent its members in their industrial relations activities including negotiating collective agreements. Due to the Government's commitment to tripartism, the Federation is represented on numerous national boards and statutory bodies. There is also a close working relationship with organisations having similar goals. Collective bargaining Collective bargaining is well established in Antigua and Barbuda. The trade unions and the employers' federations are the two main bodies involved in the process. The trade unions also negotiate with the Government on behalf of its non-established workers. As a rule, the trade unions submit proposals to management either to establish a new agreement or to amend those which are in force at a given time. Collective bargaining allows for meetings to be held whereby positions are exchanged until a settlement is reached. Where difficulties arise, the Labour Commissioner is invited to intervene. On a few occasions the disputes reach the Industrial Court which 26

33 ANTIGUA AND BARBUDA: AN EMPLOYERS' VIEW issues a binding award. A cause of concern is the length of time involved in arriving at a settlement. Invariably, this is due to the unreasonable approach taken by the unions. Labour disputes and their settlement The trade unions tend to challenge every decision by management regardless of the circumstances or the evidence put forward to support the position taken by the employers. The traditional disputes over rights and interests continue to occur. However, there is a trend for disputes to arise in connection with suspensions, requests by management to sign absent forms, terminations of employment, lay-offs and claims for severance pay to be paid to workers at the time of retirement. The procedures for settling disputes allow for the matter to be raised at the shop level by the shop stewards or by union officials. Invariably, there is no settlement. Hence, the matter is referred to the Labour Commissioner for his assistance. Because efforts are made to accommodate all parties to the dispute in terms of the most convenient time for the meeting, it may take a long time before hearings are held. If the Labour Commissioner is unable to bring about a settlement, the matter is referred to the Minister of Labour who then will attempt to reach a settlement. Should he fail, he has a number of options. He could send the matter back to the shop level, refer it to a decisional officer (hearing officer) or to the Industrial Court. The process involving hearing officers has not been used for many years and, with the existence of the Industrial Court, it will probably not be used in the near future. Workers' participation The question of workers' participation in enterprises has never been addressed very seriously in Antigua and Barbuda. There are a few companies which venture into offering shares to their employees, and there are others, particularly in the manufacturing industry where small committees are set up mainly to discuss modes of production. The closest semblance of workers' participation is the existence of Joint Committees in some establishments, comprising representatives of management and workers. As a rule, discussions are held on general matters of interest to all parties at the enterprise level. However, matters of discipline and matters subject to negotiations are excluded. Unfortunately, these Committees do not function well due to a certain lack of interest. The role of the State in industrial relations The State has played a very significant role in the industrial relations process in Antigua and Barbuda, in particularas regards the establishment of the legal framework. The parties are provided with the facility of a Labour Department as a reference point whenever disputes arise. Assistance is granted through the conciliatory process, and there is a procedure involving a decisional officer with a 27

34 LABOUR RELATIONS IN THE CARIBBEAN REGION possibility of appeal to a board of review. Unfortunately, this process is no longer used. The Antigua Labour Code is a comprehensive compilation administered by the Labour Department. On top, there is the Industrial Court Act. With passing of time, there are a few areas which need to be reviewed and conflicting provisions need to be deleted, e.g. in the area of representation. Furthermore, the Labour Code should make reference to the Industrial Court Act. The Labour Department should be adequately staffed and there should be proper facilities, as well as regular training for its staff. 28

35 Labour relations in the Bahamas: A government view Ch. Hilton Turnquest, Director of Labour, Ministry of Employment and Immigration, Nassau, Bahamas The Government of the Bahamas, through its industrial relations policy, has as its basic aims: (i) the elimination of industrial strife; (ii) to bring about a reduction in the incidence of industrial conflict; (iii) the resolution of all trade/craft disputes registered or apprehended; and (iv) the promotion and maintenance of industrial peace through a policy of industrial democracy. The Government recognises that if the commitment to the democratic processes is to be meaningful, then employees are to be given effective participation in those decisions which affect their lives. The Government is cognisant of the fact that the interactions which occur at the workplace affect the physical and mental health of the worker, their relationships with their fellow workers as well as their supervisors, and last but not least, their material well-being. What people do at work has an impact on their degree of satisfaction depending, inter alia, on whether they see themselves as being involved positively in the work environment. The Government believes that workers have a substantial investment in the organisation for which they work, having invested the better part of their lives in giving good quality service, a service which is greater in value than the total capital outlay of the entrepreneur. The human element is of paramount importance to the enterprise and it is for this reason that the workers should have the right to participate in the decisions which affect their life-long investment. Industrial relations in the Bahamas have been influenced by the existence of legislation which regulates the interaction between worker and worker, and workers and employers, or the organisations representing them. Our system has continued to develop over the years and at this point in time the laws which regulate industrial relations are again under review. The various statutes which in historical order impacted upon industrial relations are: (i) the Combination Act which essentially outlawed the trade union movement, 1825; (ii) the Master and Servants Act which as its name implies, regulated the relationship between the Master and his servant, 1825; (iii) the Trade Unions Act, 1943; (iv) the Labour Board Act, 1946; (v) the Labour Minimum Wages Act, 1957; (vi) the Trade Union and Industrial Conciliation Act, This Act amended and codified the laws relating to trade unions and trade disputes. It provided for the appointment of a Labour Board and laid down its functions. It also established the Department of Labour. It also provided for the fixing of minimum wages for workmen, for the determination of wages and conditions of employment by agreement, for arbitration and for the prevention of settlement of trade disputes. It repealed the Labour Minimum Wages Act, the Trade Unions Act, the Combination of Workmen Act and the Conciliation Board Act of 1957; (vii) the 29

36 LABOUR RELATIONS IN THE CARIBBEAN REGION Contract of Services Act which applies specifically to domestics, casual labourers and gardeners, 1965; (viii) the Truck Act (wages, register, payments and deductions), 1965; (ix) the Recruiting of Workers Act, 1965; (x) the Employment of Children Prohibition Act, 1965; (xi) the Employment of Young Persons Act, 1965; (xii) the Workmen's Compensation Act, 1965; (xiii) the Apprenticeship Act, 1967; (xiv) the Industrial Relations Act, 1970 (including the Trade Union Regulations, 1971 and amendments carried out in 1979 and 1981); (xv) the Fair Labour Standards Act, 1970 and the Fair Labour Standards Exception Order, 1971; and (xvi) the Female Employees Grant of Maternity Leave Act, Contracts of employment are not always clear and precise, and much is left to inference. It is hoped that with the introduction of the Severance Payment Bill, the Unfair Dismissal Bill and the Amendment to the Industrial Relations Act, these defects will be remedied. In 1970, the Government passed the Industrial Relations Act and the Fair Labour Standards Act which complemented each other. The Fair Labour Standards Act provides for the establishment of minimum wage councils and all matters related thereto for standard hours of work, day-off, overtime, vacation with pay, public holidays, public holidays occurring during vacation, change of ownership of a business, and for labour inspection and matters connected therewith. The Industrial Relations Act, 1970 regulates the interactions between trade unions and employers, trade unions of employees and trade unions of employers. The Act makes provision for: (1) registration and control of trade/craft unions ((a) register of trade unions and provision relating to registration including grounds for refusing to register a trade/craft union; (b) unregistered unions are unlawful; (c) certification of the constitution of a trade/craft union; (d) misleading names of trade/craft unions; (e) regulations for registration, certificate of registration; (f) appeals against the decisions of the registrar; (g) void registration; (ft) cancellation of registration; (i) registered office of trade union; (J) change of name of a trade union; (k) dissolution; (7) supervision of ballots by Registrar and other matters incidental thereto including property, membership, annual returns, immunity, accounts, records and withholding effects of a trade union); (2) recognition of trade unions ((a) duty of employer to recognise a trade union of employees; (b) claim for recognition as the bargaining agent; (c) time within which a claim for recognition may be made; (d) adverse effects of employees because of trade union activity); (3) it provides for the registration of industrial agreements and supplemental industrial agreements; (4) it establishes of an industrial relations board for the settlement of disputes in essential services; (5) it provides for trade disputes procedures; (6) maintenance of law and order and the protection of private rights; (7) miscellaneous and general rules for the registration of trade unions of employees and employers including matters to be included in the constitution of the trade unions of employees and employers; and (8) picketing rules and a transitional period. The amendment carried out in 1979 made provisions for the following: (1) a Code of Industrial Relations Practice founded on the following main principles: (i) the employer and his employees have a common interest in the success of the undertaking; (ii) good industrial relations are the joint responsibility of management and employees and the trade unions representing them; (iii) collective bargaining, 30

37 BAHAMAS: A GOVERNMENT VIEW carried out in a reasonable and constructive manner between employers and representatives of trade unions, is the best method of conducting industrial relations; (2) good human relations between employers and employees are essential to good industrial relations: (i) spells out the responsibilities of management, the responsibilities of trade unions of employees as well as the responsibilities of trade unions of employers; (ii) employment policies, the planning and use of manpower, recruitment and selection, training payment system, status and security of employees, reduction of workforce, working conditions, communication and consultation; (iii) outlines the responsibilities and obligations of the individual employee; (iv) collective bargaining, bargaining units, recognition, claim for recognition, dual recognition, withdrawal of recognition, collective agreements; (v) employee representation at the place of work; (vi) grievance and dispute procedures, general and individual grievance procedures, collective disputes procedures; (vii) disciplinary procedures; (viii) arbitration tribunals; (3) it introduced rules on: (i) what constitutes a day; (ii) ballots for election of union officers, ballots for deciding on strike action; (iii) power of the registrar to hold election when trade unions fail to do so; (iv) reduction of the cooling-off period and the time during which certain information must be supplied in order to assist the Minister in determining a bargaining agent's status; (v) penalties for refusal to attend conciliation meeting; (vi) agency shop status; (vii) the interpretation of any provision of an industrial agreement. The 1981 Amendment gave the Minister further powers to refer unresolved trade disputes to an Arbitration Tribunal. In pursuing its industrial relations policy, the Government was extremely careful to ensure that the rights of all parties were preserved, that any aggrieved person could make adequate use of the dispute procedures laid down in section 67 of the Industrial Relations Act. This section permits either a trade union of an employer, a trade union of employee, or an employee to register a dispute with the Minister. Provision is made for conciliation, and where conciliation has not been successful the dispute may be referred to the Arbitration Tribunal for settlement if the dispute is in a non-essential service and to the Industrial Relations Board where the dispute is in an essential service. Disputes for the first ten months of 1988 fell into the following main categories: (i) wrongful dismissal - 373; (ii) failure to grant vacation with pay - 73; (iii) violation of an existing industrial agreement - 49; (iv) refusal to pay salary already earned - 31; (v) refusal to pay overtime - 16; (vi) wrongful suspension - 19; (vii) wrongful and unfair demotion - 2; (viii) change of pay period - 1; (ix) failure to give notice or pay in lieu thereof - 32; (x) terms and conditions of service - 19; (xi) holiday pay - 5; (xii) redundancy - 1; (xiii) severance pay - 15; (xiv) extended lay-off - 10; (xv) refusal to negotiate in good faith - 6; (xvi) refusal to pay sick leave in accordance with company rules - 2; (xvii) job discrimination and victimisation - 3; and (xviii) unfair dismisssal Section 39 of the Industrial Relations Act requires every employer to recognise as the bargaining agent for his employees a trade union of which more than 50 per cent of his employees in a bargaining unit of such employees are members in good standing, or in the event of there being more than one trade union claiming to have 31

38 LABOUR RELA TIONS IN THE CARIBBEAN REGION as members in good standing more than 50 per cent of such employees, that trade union which the Minister determines in accordance with subsection 5 of section 40 to be the union entitled to such recognition. After recognition has been obtained, the employer should treat and enter into negotiations with that trade union for the purposes of collective bargaining as well as for the settlement of trade disputes. It is an offence for an employer to refuse to treat or to enter into negotiations with that trade union and, if convicted, is subject to a fine of $5,000 or to imprisonment for a term of two years, or to both. To date, there has been one case brought before the courts under section 39 of the Industrial Relations Act. The case was initiated by the Bahamas Hotel Catering and Allied Workers Union against the management of the Cat Cay Club Limited for failing to treat or enter into negotiations. The union's case was that on 21 August 1987, the Minister responsible for Labour determined that the Bahamas Hotel Catering and Allied Workers' Union was entitled to be recognised as the bargaining agent for the non-management employees of the Cat Cay Club. On 7 September 1987, the union submitted its contractual proposals through the company's attorneys at which time a request for a meeting to discuss the proposals was made and 28 September 1987 was suggested as the proposed meeting date. No formal response either from Cat Cay Club Limited or its attorneys was received although it was mentioned during the course of informal conversation between the parties concerned. The union's position was that efforts continued up to and including 18 April 1988 and 9 May 1988 to arrange a meeting with Cat Cay Club Limited, but without success. The company's position was that they became aware of the Minister's determination in September 1987 and of the union's proposals at the end of September They argued that they had requested a ministerial review of the determination previously granted by the Minister, and that there was no intention by the company either to disregard the Minister's determination or to refuse to negotiate with the union. Counsel for the company asked the Court to take note of the fact that the complainant had not referred this matter to the Minister responsible for conciliation in accordance with section 67 of the Industrial Relations Act, Counsel also argued that changes in management at the club should be given consideration, as well as the fact that matters concerning staff had to be referred to the Board of Directors who were located outside of the Bahamas. The Court found that the parties concerned were under no legal obligation to report disputes to the Minister, and that a recognised agent may invoke the provisions of section 39 of the Industrial Relations Act, and institute proceedings in a court, that having regard to the fact that the defendant had queried the authority of the complainant, it was reasonable to conclude that the filing of a trade dispute would have served no useful purpose as the union may very well have been frustrated in its attempts to be recognised or to negotiate on behalf of its members. Having regard to the fact that the defendant refused to recognise the complainant as bargaining agent for the employees of the defendant's club, it is obvious that the defendant wilfully refused to enter into negotiations with the complainant during the specified period and that the complainant had made ample opportunity to enter into negotiations from 7 September 1987 to 9 May Hence, the defendant failed to act in good faith. 32

39 BAHAMAS: A GOVERNMENT VIEW In finding Cat Cay Club Limited guilty, the court was satisfied beyond reasonable doubt that the defendant wilfully refused to enter into negotiations with the complainant during the specified period and that there was no reasonable excuse for its failure to do so. For the purposes of recognition, the following steps should be followed: (i) the union should apply to the employer specifying the bargaining unit for which recognition is being sought; (ii) where the union satisfies the employer of its entitlement to recognition, the employer should voluntarily recognise the union as the bargaining agent for the unit as specified; (iii) where the employer rejects the claim for recognition, the union should be advised, the reason for the rejection should be stated and a copy provided to the Minister; (iv) the union may then request that the Minister determine the bargaining agent; (v) the Minister would obtain documentary proof of union membership and the number of persons employed by the employer, or failing to establish the support, he may order a representative count by secret ballot where one union is involved; (vi) in the event that there are two unions claiming recognition in addition to the above, the Minister would order that a poll be taken to determine which of the unions the employees wished to be their Bargaining Agent. Section 42 of the Industrial Relations Act prevents the employer from adversely affecting the employment of, or altering the position of an employee to his prejudice on account of trade union activities, in particular, in the following instances: (i) if he is an officer, delegate or member of a trade union; (ii) if he is entitled to the benefits of an agreement or award under the Industrial Relations Act; (iii) if he has appeared as a witness or has given evidence in a proceeding under the Industrial Relations Act; (iv) if he has absented himself from work without leave after he has made an application for leave for the purpose of carrying out urgent and necessary duties as an officer or delegate of a trade union in connection with a trade dispute with the said employer and such leave has been unreasonably refused. If an employer contravenes any of the above, upon conviction, he is liable to a fine not exceeding $500 or to six months' imprisonment, or to both. The court may also order that the employee be reimbursed any wages lost, and direct, if the case in the opinion of the court so requires, that the employee be reinstated in his former position or be employed in a similar position. When trade unions of employees claim recognition from employers, invariably the employers reject the claim on the grounds of lack of jurisdiction or because the trade union lacks in their view the support of a majority of employees in the bargaining unit for which the union sought recognition. The decision of the employer is based on the employees' response to the employer's questions as to their union membership. Employees, however, are afraid to tell their employers that they are members of a trade union as they fear that their services would be terminated or adversely affected. This is a real fear and in order to avoid any problems for the employees, the union advises its members not to tell the employers that they are union members. There are at present 43 registered trade/craft unions which comprise four employers' organisations and 39 employees' organisations, the largest of which is the Bahamas Hotel Catering and Allied Workers' Union. It is difficult for a trade union of employees to successfully conclude an industrial agreement with a single employer, 33

40 LABOUR RELA TIONS IN THE CARIBBEAN REGION but this difficulty is compounded when employers form an employers' organisation which tends to exert a tremendous amount of pressure on the bargaining agent. Although trade unions form themselves into councils of trade unions, or a congress of trade unions, the balance of power is not equally distributed in that the individual trade unions do not always represent workers which comprise the bargaining unit(s) within the trade union of employers. Public service bargaining agents as a general rule negotiate increases in wages and improved conditions of service. Public and private sector bargaining agents apart from being members of the same umbrella union organisation, have very little in common. While increased wages and salaries play a very important part in the negotiations of industrial agreements, they are not given the priority they once had, as trade unions in the Bahamas bargain also for increased benefits and better terms and conditions of service in general. Employees who have had their services terminated or have been dismissed otherwise usually submit a claim to their employer requesting compensation. At conciliation however, employers tend to question their legal obhgation to pay compensation in this regard. None the less, it has been accepted in practice that payments are made in respect of severance in instances where the services of an employee is terminated as a result of: (1) redundancy; and (2) accident or injury occurring in the job or in the course of one's employment, resulting in the employee not being able to continue performance. Presently there is no exact rule of thumb in determining the amount of any award with respect to severance payment. However it is accepted practice for an award to be based on a minimum of one week's wage for every completed year of service. Except in instances where an emplovee acts in gross breach of his contract of employment, the employer is obligated to give the employee reasonable notice that his service is to be terminated. There is a reciprocal obligation on the part of the employee to give his employer reasonable notice before he withdraws his services. The conciliation and arbitration services continue to be inundated with disputes in which employees claim that their services had been terminated summarily. The requisite notice period is usually established by the employer except in collective agreements where it is determined jointly. In the absence of an agreed notice period, employers and employees usually fall back on the common law practice of giving two weeks' notice prior to severing the relationship. An employer may dismiss his employee summarily, but he is required to make payments in lieu of notice (for the requisite notice period), provided that the employee's action did not violate or breach the terms and conditions of his contract of employment. Some arbitration awards have in certain cases granted one year's notice. At present, an employer is ot under any obligation to make any payment in lieu of notice of termination to an employee who is serving out a probationary period. There is a trend for employees to submit claims for ex gratia payment in settlement of industrial disputes. This is especially the case where the employment is terminated on the grounds of redundancy, closure, sales disposition and change of ownership of the establishment. Usually employees with long years of service tend to make a claim 34

41 BAHAMAS: A GOVERNMENT VIEW under this heading. Employers are not always willing to address themselves to this issue. If and when an ex gratia award is made at conciliation, it is usually made as a "without prejudice" offer of settlement, and not as an admission by the employer that he has violated the employee's contract of service. Generally, disputes are limited and few on the question relating to holiday and vacation leave. Existing statutes effectively govern this area and most employers tend to adhere to the rules. In addition to employees being granted permission to enjoy holidays, provisions exist both in law and in industrial agreements for persons who are required to work on holidays to be compensated above and beyond their normal remuneration. 35

42 Labour relations in the Bahamas: A workers'view James E. Blatch, President, Bahamas Maritime Port and Allied Workers' Union It would be true to say that labour relations in the Bahamas are not as good a they ought to be, or in fact, could be. The reasons for this unsatisfactory state of affairs are the following: (1) the poor quality of the present labour legislation; (2) the largest numbers of unionised workers are employed directly by the Government, or in state-owned corporations; (3) most businesses are small and individually or family-owned; and (4) a large number of businesses are foreign-owned and controlled. The most important pieces of legislation are the Industrial Relations Act and the Fair Labour Standards Act, which were passed in The Industrial Relations Act was amended in 1979 to provide for agency shop and arbitration tribunals. The fundamental questions of workers' rights and job protection are not addressed in the 1970 legislation, or the 1979 amendments, and this leaves workers at the mercy of common law, which gives the employer the right to dismiss an employee at any time and for no reason so long as reasonable notice is given. Many employers exercise this right, particularly when unions are attempting to organise a small business. There is no provision in law for severance and redundancy payments. The Government has recently submitted to unions, for discussion, draft Bills on Unfair Dismissals and on Severance payments and these bills when passed by Parliament will go a long way to rectify some of the present deficiencies. It is estimated that there are presently more than 26,000 unionised workers in the Bahamas. More than 14,000 of these workers are employed in the public service and state-owned corporations. In many instances, the Government uses its privileges under the essential services legislation and as the Crown to circumvent legitimate collective bargaining. Many owners of small family-owned businesses are often autocratic in dealing with employees and their unions. Many small businesses exhibit a definite anti-union bias, and this leads to problems in labour relations. The largest businesses are usually branches of transnational corporations, and major decisions affecting employees are made at corporate headquarters. This leads to all sorts of problems when dealing with industrial disputes and collective bargaining. The Industrial Relations Act mandates that unions must be either industrial unions or craft unions and a union can represent either one industry or one craft. The effect of this legislation is that there are more than 30 unions representing about 26,000 unionised workers. Consequently, may unions are small, poor and generally ineffective. As a matter of fact, the four largest trade unions have more than 65 per cent of the total unionised workers as members. The Government has rigidly enforced the divisions among trade unions and has refused to amend the Industrial Relations Act to allow for larger and more effective unions. 36

43 BAHAMAS: A WORKERS' VIEW The law states that once unions have the majority of workers organised in a particular industry, they are entitled to be recognised as the bargaining agent for those workers, but it does not give a time frame for the formalisation of the recognition by the employer. If the employer denies the union recognition, the Minister can determine that the union is the proper bargaining agent for the workers and issue a certificate of recognition to the union. Many Ministers have been loath to issue certificates of recognition and the employers have used a provision in the law which allows them to challenge the claim for recognition, one year after the union has made a claim for recognition. Collective bargaining practices in the Bahamas are fairly traditional. Most collective agreements have a provision whereby three months before the end of an existing agreement, the union will submit a new proposal for the following time period. Most agreements are for three years. Once the employer receives a new proposal from the union, the employer will submit a counter proposal and bargaining will begin. Should the negotiations reach an impasse, a request is made to the Department of Labour for the services of a conciliator. If conciliation is unable to resolve the outstanding issues, the union will usually resort to some form of industrial action. Alternatively the dispute may be referred to an arbitration tribunal for settlement. Unions that work in industries which are covered by the essential services provisions in the Industrial Relations Act will have the matters adjudicated by the Industrial Relations Board, a statutory body established by the Industrial Relations Act. The essential services provisions are often used by the Government to abort the collective bargaining process and to prevent the unions from taking industrial action. The major causes for disputes are: (a) attempts by unions to organise workers and gain recognition; (b) unilateral and arbitrary action by management, particularly in the areas of suspensions and terminations; and (c) attempts of unions to negotiate better wages and working conditions. Many disputes are settled at joint meetings between unions and management. When these attempts fail, there is use of conciliation, arbitration and, in the case of essential services, of the Industrial Relations Board. There are presently no schemes for worker participation in decision-making in public or private enterprises in the Bahamas. The main reason for this is the nature of ownership of businesses, described earlier in this paper. There have been numerous complaints by unions of what they perceive to be a pronounced bias by the State in favour of business and management. Since the State is the largest single employer of labour, the manner in which it deals with its employees often set the tone for the manner in which private employers deal with their employees, and since governments tend to use authoritarian methods in dealing with their servants, private employers attempt to do the same. The Industrial Relations Board is widely regarded as being so pro-government that unions which organise workers in essential services avoid the use of it as far as possible. Some unions have also complained that the Department of Labour seems to have bias towards the employer. The conciliation services of the Department of Labour and the arbitration services of the Ministry of Labour work reasonably well. The conciliation services are hampered by a shortage of staff, and arbitration is unnecessarily drawn out due to the 37

44 LABOUR RELA TIONS IN THE CARIBBEAN REGION practice of using lawyers as chairman and members of tribunals. The Government has so far refused to amend the law to allow unions to represent their members before arbitration tribunals. There is cause for some optimism that labour relations will improve in the near future. There is now regular consultation between the Ministry of Labour and the unions, particularly in the area of drafting new labour legislation and there is reason to believe that these consultations will produce a greater understanding of the roles that management and labour must play in producing an improved labour relations climate in the Bahamas. 38

45 Labour relations in the Bahamas: An employers' view T.V. Arne«, Past President, Bahamas Employers' Confederation, Assistant Vice-President, Bacardi & Co. Ltd. Promoting solidarity among employers, the safeguarding of employers' interests relating to labour legislation and public authority, to the relationship with international organisations on labour matters, to the relationship with trade and other business organisations in dealing with labour and social issues and the fostering of understanding for the views of those making up their membership, constitute the basic functions of employers' organisations and therefore of the Bahamas Employers' Confederation. Through co-ordinated efforts and a common approach on the part of employers, their views will be more readily heard at the appropriate levels and this will also result in minimising governmental intervention as regulatory or conciliatory agencies for the purpose of negotiating industrial agreements. The collective agreements concluded without such interventions could be quite effective. This underlines the need to structure and maintain the kind of organisation which projects solidarity, professionalism, mutual trust and respect for all concerned to ensure meaningful membership support. The structure should have the capacity and capability to communicate effectively, especially in those situations where information relevant to the issues at hand can be addressed with vigour and enthusiasm. The dynamic nature of the labour market problems demand instant action if the individual or group situation is to be challenged effectively. Some problems facing employers' organisations seem to stem from: (1) the failure of certain employers to appreciate that they all have in common employees drawn from the same labour market within the same society in which the same labour legislation applies to management and labour alike; (2) the fact that some employers refuse to accept that the trade union movement has a place in industry and commerce; this may be out of fear that it may become a challenge; (3) a misconception as regards mutual trust which tends to limit theflowof vital information and active involvement; (4) their public relations image which still portrays anti-union attitudes and which unions feel that employers' organisations are against them; (5) the proliferation of other service clubs which tend to be more socially prominent and therefore dwarf the traditionally low profile of employers' groups. So the more prestigious groups exhaust the time and energies of businessmen and employers; (6) the public authorities' stance. At conciliation and/or arbitration, labour believes that the machinery is geared in favour of the employer whilst the employer, on the other hand, believes that the machinery was designed to protect labour. It may be concluded that inadequate funding, crisis management, membership dilemma and poor communication are causes of stagnation and ineffectiveness of most of our employers' organisations. 39

46 LABOUR RELA TIONS IN THE CARIBBEAN REGION Labour dispute settlement Strikes and lock-outs are negative approaches to labour/management differences, and they may be regarded as the ultimate reasons in conflict situations. This traditional muscle flexing is giving way to other methods of peacefully resolving disputes. In addition to the variety of methods used in some countries, there are variations of each method. When conventional methods are without positive results, one party or the other must be innovative. Current disputes machinery provides for what is considered good management/labour relations, embodied in the Code of Industrial Relations Practice. This code establishes in a practical way how, through a proper personnel administration policy, the number of labour disputes may be minimised, and although the code imposes no legal obligations, agencies such as the Industrial Relations Board and Arbitration Tribunals are exhorted to recognise the possible effectiveness of the code when pursuing amicable solutions to a contentious matter. The principal aims of both trade unions of employees and employers are clearly presented. This being so, the stage is already set for the practice of trade unions and employers meeting for the purpose of reaching agreement on the issues controversial between them. This procedure - known as negotiation - is usually more effective without a third party's involvement. Conciliation/mediation is the stage where a third party enters the conflict. The conciliator/mediator, whether designated or selected, operates without authority to enforce agreement; he depends upon the ability to conduct the parties along a path of harmony and good will. Failure to get agreement by this approach within time and other constraints usually means that the unresolved matter is referred to another stage, i.e. in the Industrial Relations Board or the arbitration tribunal. If the case is referred to an Industrial Relations Board for arbitration, certain prescribed procedures are followed in pursuit of resolving the conflict hopefully in the interest of the parties and without harmful effect on the country as a whole. There appears to be an increasing number of disputes arising and in several instances the aggrieved parties resort to legal process, thus rendering the above procedures less effective. Collective bargaining practice Collective bargaining on behalf of employees in the workplace can only be undertaken after the employer has voluntarily recognised a trade union as the bargaining agent or, alternatively, the minister concerned has determined that a designated trade union is qualified to represent the employees in industrial relations matters. Employers find the determination approach somewhat disagreeable because the employer has little or no grounds on which to challenge the authenticity of the applicant union although he is a party to the intended relationship. In practice, this gives the union a leading edge which is used in some cases to intimidate, ridicule and embarrass the employer. Experience has shown that the employer, at this point, adopts an apathetic attitude which dampens the true spirit of tripartism and mutual respect never develops 40

47 BAHAMAS: AN EMPLOYERS' VIEW amongst the partners. Not even the Code of Industrial Practice, which is so desirable in the workplace, is heeded in the aftermath. By definition, collective bargaining in the enterprise means discussions by the agent on behalf of defined groups of employees, the result of which must adequately provide for all. It is recognised that the interests of employees making up the bargaining unit are best served if a substantial degree of common issues is addressed. This gives effectiveness to the scope and substance to industrial agreement. It must be conceded that fragmented labour does not achieve the "strength in unity" goal. However, it must also be noted that a national umbrella union has the potential of adversely affecting public interest and common good. Where such bodies exist, there should be proper representation and the interest of such bodies be recognised and considered as being an inherent part of the aggregate of both small and large groups. Sound judgement and the decision-making process must be weighed in the balance of national interest. Relevance and consistency ought to be the bench-mark of adopted procedures and that end is best served if industrial relations boards' and arbitration tribunals' decisions are made by as few as possible on an ongoing basis. Collective bargaining should include the active participation of elected union officers and not be left to professional negotiators who may be lacking specific knowledge and expertise. More often than not, the professionals could be motivated by their own selfish ambitions which might not go beyond the official signing of the accord and the professional's fees being paid. Since collective bargaining is expected to produce progressive socio-economic conditions for the working classes, factors such as procedure and substance of mutual concern should be pursued with sincerity, vigour and objectivity. Schemes for workers' participation No established scheme or common practice to promote worker's participation in decision-making in enterprises in the Bahamas has been developed. The traditional method of planning, organising and controlling from the top is still very much in evidence and, generally speaking, workers expect and accept decisions from the top. It is not uncommon to find that even at middle-management level there is the feeling and the expression of alienation or estrangement toward non-routine executive orders. This seems to to permeate the organisation from the top to the bottom in different forms. If viewed from the top, it might be found to be a veiled form of preserving status and authority. From the bottom, supervisors who feel left out or slighted by their immediate bosses will in a given situation assert instructions came from the top and reflect what the boss wants. Achieving workers' participation in decision-making is not a pressing issue among workers in the Bahamas, and therefore it does not appear to be forthcoming voluntarily because the average worker sees planning and problem-solving as management prerogatives. However, if such participation is to be developed, the innovation must be preceded by creating an awareness by humanising work or job content, getting rid of the myths and taboos perceived in the training or retraining 41

48 LABOUR RELA TIONS IN THE CARIBBEAN REGION context and improving human relations through effective communication at all levels. This can help to develop trust, mutual respect and expertise. The role of the State in industrial relations The State appears to place too much emphasis on its role in industrial relations. In recognising the importance of that role, it must be noted that the common thread within the political structure of developing countries is socio-economic well-being. As a function of the State, law and order must be established through legislation which ought to take into account traditional customs and practices as well as projections for national growth and development at a rate appropriate to the society. With proper legislation in place the State should give way to capital and labour so that a productive working relationship, geared to the socio-economic order, may develop. Too much state intervention can become disruptive to the extent that job creation and profitability, i.e. important elements of the private sector, no longer exist. 42

49 Labour relations in Barbados: A government view M. Codrington, Labour Department, Bridgetown Labour relations in Barbados, since the attainment of political independence in 1966, have remained relatively stable over the years. This has been due, no doubt, to the high degree of maturity shown by the leaders of both the workers and employers. Needless to say, there were times of conflict although relatively few in number which indeed disrupted the state of economy, but by and large, those conflicts were quickly resolved. This paper seeks to briefly outline the labour relations climate prevailing in Barbados at this time. Trade unions Trade unions in Barbados are governed by the Trade Union Act which, among other things, provides for compulsory registration within three months of their formation. There is however no provision dealing with a claim for recognition of trade unions. There are 23 registered trade unions. Of these, there are two major unions representing workers and one major union representing employers. Multiplicity of unions representing workers is not an immediate problem as this only occurs when Government has to bargain simultaneously with more than one union on behalf of teachers and civil servants. The trend remains that as new unions are formed they may try to infiltrate establishments which are already represented by other unions. The National Union of Public Workers, the Barbados Union of Teachers and the Barbados Secondary Teachers' Union represent the majority of unionised workers in the public sector including statutory corporations. The Barbados Workers Union, the most active trade union in the private sector, also represents workers in the public sector. The Barbados Employers' Confederation is the largest of the trade unions representing employers and its membership is drawn from a wide cross-section of agriculture, industry, commerce and services. The main functions of the Barbados Employers' Confederation are to deal with relations between employers and employees and to promote the interest of employers in Barbados by providing several professional services. The other trade unions representing employers are the Barbados Association of Medical Practitioners and the Sugar Producers Association of Barbados. 43

50 LABOUR RELA TIONS IN THE CARIBBEAN REGION Collective bargaining Collective bargaining is at the heart of industrial relations and is intended to foster and promote collective decision-making on matters affecting the relationship between management and labour. On receipt of a union's claim for recognition as the workers' accredited representative, the employer may request the Labour Department to conduct a survey to verify the claim. There are no special statutory provisions addressing the question of recognition, but the practice has been for the employer to grant recognition if more than 50 per cent of the workers are unionised. Bargaining in the majority of cases takes place at the enterprise or plant level. However there are instances where bargaining is industry-wide, e.g. in the hotel, sugar, supermarket, garment and beverage sectors. Agreements reached between the union and the various groups are binding on the individual members of the respective groups. However, companies that are not members of the group usually comply with the terms and conditions agreed upon for that particular industry. The Labour Department plays a conciliatory role when the parties fail to reach an agreement at domestic level, but because the industrial relation system is voluntary, it has no authority to subpoena any party to appear for a conciliation negotiation. It is expected that the parties bargain in good faith, but on occasions unions have expressed dissatisfaction with the amount and quality of the financial information provided by the companies with whom they were negotiating. Present-day employers' and workers' organisations are led by experienced and well-trained negotiators and the union's team normally include delegates from the workplace. Collective agreements are not registered nor do they have any status at law. They are not legally binding. However, over the years the gentleman's approach has worked well in the country. However, an individual employee can enforce the terms of a collective agreement in a court of law where such terms have been incorporated either expressly or tacitly into the individual's contract of employment. Collective agreements normally cover two main areas: procedural and substantive. Procedural clauses deal with matters such as the definition of the bargaining unit, the revision or termination of the agreement, grievance procedures, management's rights and union security. Substantive clauses include wages, shift and overtime rates, holiday with pay, hours of work, sick, injury and maternity leave and health and safety and welfare provisions. Recently, provisions like annual medical examination, trade union, educational leave, credit union deductions and protection of shop stewards have been finding their way into collective agreements, albeit with strong resistance from some employers. Recently, due to economic pressures, instead of pressing for high wage increases, have been concentrating on job security and precise job descriptions in addition to better safety, health and welfare provisions for their members. The economic downturn has caused many employers to press for "three-year" instead of "two-year" agreements. The Hotel and Sugar Associations, as well as the telephone company, presently have "three-year" agreements. Unions prefer "two-year" agreements because of economic uncertainties. 44

51 BARBADOS: A GOVERNMENT VIEW In the public sector, there are presently four unions which negotiate contracts with the Government. There is no trade union confederation in Barbados and the respective unions have not found it expedient to bargain jointly making it a tedious exercise when the Government has to negotiate with the different union separately. Wages are the main focus during these discussions. Union multiplicity creates a situation where one union could agree with the Government's offer while the other unions reject it. As a matter of fact the Government has legislated pay increases for civil servants after negotiations reached deadlock in 1976 and 1982 respectively. Other matters relating to terms and conditions of employment would be relegated to discussion during the period of the agreement. Until recently, salaries at most statutory corporations were on par with those practised in the public service. However some statutory corporations now pay higher salaries. Most statutory corporations or quasi-governmental organisations grant the same salary increases as those agreed for civil servants. Of late, the National Union of Public Workers has been negotiating with some statutory corporations separately, without a great deal of success. These corporations, which are answerable to the competent minister, may not be free to enter into "true" collective bargaining. Unions, in recent times, have been making inroads into areas of economic activity previously non-unionised, mainly white-collar sectors. The Central Bank, the Barbados National Bank and at least one insurance company are unionised. However, a staff association preceded the Union at the Central Bank. Minimum wages- legislation seeks to protect workers with little bargaining power. However, some employers use it as a standard wage, only increasing wages when the minimum wages are reviewed. Any inordinate delay in the revision causes workers to suffer undue hardship. A case in point is the hourly rate of $1.50 for domestic employees which was in existence since May The present Shop Assistants Order is effective from December Trends in labour disputes Among the primary statutory functions of the Chief Labour Officer, for which provision is made in Cap. 23 of the Labour Department Act, are to receive and investigate all representations whether of employers or employees, made to him concerning any business, trade, occupation or employment, with a view to the settlement of disputes and grievances and to conciliation. However, during the past five years, the principal actors on the industrial relations scene, have tended to adopt an adversary posture with regard to the settlement of labour disputes. This has resulted in workers challenging the right of management to terminate the contract of employment. Since there is no legislation against unfair dismissal at the moment in Barbados, the courts are often being called upon to decide whether dismissals are fair or not. Some of the disputes which are referred to the Labour Department by the Barbados Workers' Union, the Barbados Employers' Confederation and the National Union of Public Workers relate to the revision of collective Agreements and to terms and conditions included therein, as well as to dismissals and suspensions. 45

52 LABOUR RELA TIONS IN THE CARIBBEAN REGION Statistics compiled with regard to the disputes which were referred to the Labour Department during the last five years are as follows: cases; cases; cases; cases; and cases. These statistics show that the increase in the number of disputes over the periods mentioned above varied from 14.8 per cent in 1984 over 1983 to 9.7 per cent in 1985 over 1984 and 9.8 per cent in 1987 over There was a marked increase of 50 per cent for 1986 over The courts have tended to follow the Canadian example in preference to the English in cases of wrongful dismissals, and a trend is developing whereby the courts are being asked to consider awards of up to three years' pay in lieu of notice. As stated earlier, there is no legislation against unfair dismissal. It must also be pointed out that industrial relations are conducted on a free and voluntary basis, hence agreements reached in the private sector do not have the force of law, but are "agreements in principle" and observed as such. Therefore, when an employee gets aggrieved by being dismissed, he may refer the dispute for conciliation to the Labour Department, if he does not belong to a trade union, or if he does, his union could attempt to resolve it firstly at the domestic level. If no settlement is reached, he may have recourse to conciliation. Sometimes, disputes which are not settled by the Chief Labour Officer, e.g. in the sugar industry or the hotel industry or at the Barbados Port Authority, are referred to the Minister of Employment or to the Prime Minister, if no settlement can be reached by the Minister of Employment. Provision is made under the Trades Disputes (Arbitration and Enquiry) Act, Cap. 360, for the referral of disputes to arbitration but this method of settlement has not been used for over 30 years. The power for the establishment of a Board of Enquiry or arbitration tribunal resides in the Governor-General. The board shall consist of a Chairman and such other persons as the Governor-General thinks fit to appoint or may consist of one person appointed by him. Both parties must agree to arbitration. The decision of the arbitration tribunal is binding and has legal effect similar to that of a Court of law. Both parties must agree to the arbitration procedure. Workers' participation in decision-making in the enterprise Workers' participation is a new concept introduced into Barbados over the last two decades by the trade unions. Its primary aim is to allow for workers to become members of the board of directors at the workplace so that they will be directly involved in the decision-making process of the organisation. This scheme has not caught on very well in Barbados and there are only a few joint work councils or committees in some workplaces where decisions on the workers' welfare are made by the committee and submitted to Management for consideration. The Factories Act, Chapter 347, section 102 specifically states: 1. Every employer in a factory shall: (a) consult with his employees or their representatives for the purposes of developing measures to promote safety and health at such factory; and (b) make arrangements for the participation of the employees in the improvements and development of such measures. 46

53 BARBADOS: A GOVERNMENT VIEW 2. Consultation for the purposes of subsection (1) shall be effected as follows: (a) in factories where there are 50 or more persons employed, through meetings of safety committees consisting of representatives appointed by the employer and representatives appointed by the employees; and (b) in factories where there are less than 50 persons employed, and it is not practical to have a safety committee, through one or more safety delegates appointed by the employees. 3. Where there is a health and safety committee: (a) the health and safety committee must comprise an equal number of employers' and employees' representatives; (b) the employees' representatives shall be appointed through their trade union, if the employees are represented by a trade union; (c) the recommendations of the health and safety committee shall, if practicable, be implemented; (d) the employees' representatives shall be granted access to information relating to all workplace hazards and to all reports relating to the workplace environment; (e) the employees' representatives may conduct tests and take samples of hazardous material; and (f) no employee shall be dismissed or be disciplined in any manner by reason only of his requesting an inspection of his workplace by an inspector. Safety committees at workplaces are good tools but the primary objective of workers' participation is for the workers to have a seat on the board of directors and to be involved in the decision-making process of the company. Obviously, there will be resistance from the board of directors to such a move, since workers' participation means to a certain extent to allow a worker to be a part of the "inside operation" of the business. This, no doubt, will cause fear among directors that confidential information discussed at board meetings would eventually filter back to the union and thus used to the union's advantage. The directors themselves would have to be familiarised with this new concept of workers' participation, and to be made aware of the benefits that could be derived therefrom. Workers' participation may have a positive impact on the motivation of workers who in turn would positively become more motivated to work with better influence on productivity. The role of the State in industrial relations In Barbados the Ministry of Employment, Labour Relations and Community Development has the responsibility for the management of the Government's labour policy. It continuously monitors the industrial relations climate with a view to maintaining industrial harmony. Industrial relations in Barbados are conducted on a free and voluntary basis. The policy of the Government is to allow for the largest possible degree of self-government by the parties concerned. There is therefore no legislation governing the conduct of industrial relations, except for: (1) the Trade Disputes (Arbitration and Enquiry) Act of 1939 (Chapter 360) which provides for the establishment of an Arbitration Tribunal and a Board of Enquiry in connection with trade disputes and to make provisions for the settlement of such disputes and for the purpose of inquiring 47

54 LABOUR RELA TIONS IN THE CARIBBEAN REGION into the economic and industrial conditions in the country; (2) the Trade Union Act, Chapter 361 which gives effect to the Government's policy to promote effective organisation among workers and employers for the purpose of collective bargaining; and (3) the Better Security Act, 1920 (Chapter 160) which provides penalties for the wilful and malicious breaking of contracts by persons employed in the supply of water, gas and electricity and for breaches of contract involving injury to persons or property. The Ministry is responsible for formulating the Government's labour policy and it does so through its "technical arm", the Labour Department. The Labour Department is statutorily required to receive and investigate all representations whether of workers or of employers made to the Chief Labour Officer concerning business, trade, occupation or employment with a view to the settlement of disputes and grievances and of conciliation, especially regarding hours and conditions of work and regulation of wages and to report thereon to the Minister; it is also required of the Chief Labour Officer to advise the Government with regard to the betterment of industrial relations and generally on all labour matters, and also to ensure the due enforcement of labour legislation. The Labour Department, therefore, is the "watch-dog" for monitoring the daily activities occurring in the industrial relations field. In this context, the labour officers, in order to enforce labour legislation, are given powers of entry under the Labour Department Act, to inspect and examine at all reasonable times by day and night any premises or places liable to inspection, when they have reasonable cause to believe that any person is employed therein; require from any employer returns giving information as to the wages, hours and conditions of work of the employees employed by him; carry out any examination, test or inquiry which he may consider necessary in order to satisfy himself that the legal provisions are being strictly observed. The stability now prevailing in industrial relations is surely due to the high degree of maturity exercised by the employers' and workers' representatives. For how long this would continue is unclear since instances of "unauthorised work stoppages" engineered by the workers themselves to voice their dissatisfaction with either "long drawn out negotiations" or allegedly "wrongful dismissals", are very evidently on the increase. However, these "stoppages" are usually nipped in the bud when the union representing those workers meet and talk with the workers concerned, or when the Chief Labour Officer intervenes at the request of the parties concerned. Nevertheless, it is an area of concern to the Government and it is being monitored very closely. There is no industrial court or industrial tribunal in Barbados, as is the case in some of the other Caribbean countries, to deal with unfair dismissal cases or any other unfair labour practice. At this time, aggrieved workers can take legal action against their employers for "wrongful dismissal" under section 45 of the Severance Payments Act. A complaint may be lodged in the Magistrate's Court and obviously there is an element of cost attached to such suits. Many aggrieved workers are therefore not pursuing such a course of action because of the high legal fees that can be incurred - despite the fact that the worker might have a justifiable case. The establishment of an industrial court or tribunal might reduce costs for the worker and they might feel more at ease in lodging cases. The Government is looking at the need to introduce 48

55 BARBADOS: A GOVERNMENT VIEW legislation dealing with unfair dismissals and to strengthen wherever possible its existing labour legislation. Whether the voluntary system in industrial relations in Barbados will continue remains to be seen. This system, which has served Barbados well over the years, could very well continue into the twenty-first century, unless drastic changes or upheavals occur before then with a probable resulting move towards a more compulsory system, given neighbouring Caribbean experience, for example, in Trinidad and Tobago and Jamaica. Such a trend is likely to develop if there is a proliferation of trade unions within the same establishment thus making for increasingly conflicting union relationships. This may, of necessity, prompt a government to introduce legislation setting out guide-lines for the recognition of trade unions by the employers concerned. It might be forced to introduce more minimum wage legislation in specific sectors of employment, or to go further and introduce a national minimum wage in an attempt to control high levels of wage increases that the unions may be inclined to seek. The Government, therefore, through its Ministry of Employment and Labour Relations and the Labour Department, must continue to monitor the industrial relations scene and, wherever necessary, tighten its existing labour legislation or, if necessary, introduce additional pieces of legislation to correct any adverse changes in the system. 49

56 Labour relations in Barbados: A workers' view Annette M. Yearwood, Representative, Barbados Workers' Union The labour relations situation in Barbados has generally been satisfactory with employers and workers conducting their business freely. This situation was placed under some degree of stress because the global economic recession led to several closures of businesses and significant cuts in the operations of many others. This in turn has led to certain labour practices which have put strains on the relationship and has forced the Government either to be invited to participate more frequently than hitherto in the activities between management and labour, or without invitation, to intervene because it has felt that the national welfare was at stake. Problems of trade union membership, multiplicity and recognition In Barbados, there are a few cases of dual membership. These are to be found in the public sector. The absence of these in the private sector can be attributed to the dominance of one major private sector union which conducts negotiations with the two employers' organisations in the country. There are two other general workers' unions in the private sector, but membership of these is quite low. In the last two years or so there have been increasing reports of poaching. The trade unions which are involved in this practice attempt to gain recognition for workers who are already represented by another trade union. This type of behaviour if it continues, has the potential of creating jurisdictional disputes over recognition. There is no central trade union body and hence there is the likelihood of jurisdictional disputes. Although there is one main public sector union, a number of other unions and associations exist. However, areas of representation are fairly clearly defined. In addition to these, the major private sector union also has members in this sector. Matters of concern have recently arisen between the main public sector union and the major private sector union. The two main unions have experienced some instances of dual membership and jurisdictional problems have arisen. At the present time there is no law relating to the recognition of trade unions by employers. The established procedure, however, is that an employer would recognise the union if he is satisfied that the union has majority representation, i.e. 51 per cent or more. In order to satisfy himself, the employer is free to request the Labour Department of the Ministry of Labour to conduct a survey to determine the number of persons from his workforce, who at the date of the claim for recognition were members of the claiming union. Recently, employers have resorted to delaying tactics or other evasive measures in an effort to frustrate the union's efforts at gaining recognition. 50

57 BARBADOS: A WORKERS' VIEW Collective bargaining practices, bodies and procedures The industrial relations systems is modelled on "voluntarism", characterised by minimum state intervention. Employers and workers are allowed to conduct their business and settle differences freely. However, there have been attempts at removing or reducing this voluntary approach to labour relations but, despite these, it continues to determine industrial relations in Barbados. The private sector bodies involved in collective bargaining include two employers' organisations, the Barbados Sugar Industry Limited which represents employers in the sugar industry and the Barbados Employers Confederation representing employers in the commercial, manufacturing and service sectors. In the public sector, the organisation responsible for bargaining is the Establishments Division of the Public Service Ministry. In this area, there are two main trade unions, the National Union of Public Workers (NUPW) representing workers in the public sector and the Barbados Workers Union (BWU) representing workers both in the private and public sectors. In addition to these there are some craft unions, mainly teachers' unions, but their roles are limited. Additionally, there are associations representing workers in special areas. These associations cover professional categories like policemen, fire officers and prison officers. These workers are prohibited from striking and, as a result of this, their associations tend not not be too effective as bargaining bodies. Under collective bargaining, the unions submit proposals in relation to salary increases and conditions of service. Employers can also submit proposals but this is rarely done. The proposals of the unions are usually based on movements in the rate of inflation, productivity increases, the ability of a company to pay, comparable rates in other areas, number of persons employed, technology changes and any other element considered relevant. Procedures for the settlement of disputes are usually set out in collective agreements. The majority of agreements reached are for two years; however, in 1985, the major private sector union took a decision to extend the period of some agreements to three years in order to protect jobs and assist those companies which showed potential for recovery. Trends in and causes of labour disputes and practice of the settlement Some of the main problems confronting the management of labour relations in Barbados are: (1) the revision of collective agreements or the negotiating of first agreements - employers' attempt to use the current economic difficulties to press for minimum settlements or "give backs". If such action is accepted by the union, it will result in the erosion of hard-earned benefits of labour and be in conflict with the most fundamental objectives of the union; (2) tactics by employers to prevent or restrict employees from joining trade unions; (3) the suggestion that legislation should be introduced which makes it compulsory for an employer to recognise the union if it 51

58 LABOUR RELA TIONS IN THE CARIBBEAN REGION has majority representation. The BWU prefers a moreflexiblesystem to a legislated one, especially since there are instances where the union has achieved recognition with less than 50 per cent representation; (4) the practice of offering workers jobs only if they sign contracts of service offering themselves as independent contractors. The union feels this practice must cease since it is impossible for a worker who has no control over his/her working time and work methods to be an independent contractor; (5) the use of dismissals as a disciplinary tool without recourse to less punitive measures such as warnings and suspensions. Unfair dismissals have been the cause of some important strikes, as well as many court cases, since there is no legislation relating to unfair or wrongful dismissals; (6) the resorting to lay-offs or redundancy by some employers as first measures to cut cost. This affects the income security of workers and is a matter of concern for the union. Some agreements provide that the union should be notified in advance when these measures are to be adopted. However, they are still treated generally as management rights. A new trend in labour relations in Barbados is the increasing industrial activity in the public sector. Public sector unions have resorted to work stoppages and sick-outs to resist the Government's unilateral implementation of vital labour relations issues. For the settlement of disputes, arbitration is not a feature of industrial relations in Barbados. Collective agreements are reached generally between employers and unions. Some of the non-unionised establishments follow the settlements of the unionised sector. However, if agreements are not reached at the domestic level, either party can refer the matter to the Department of Labour for conciliation. In most cases, when a dispute reaches the Department of Labour a settlement is reached without further difficulties. In a few instances, disputes are referred to the Minister of Labour and sometimes the Prime Minister may intervene. However, whereas in the private sector one has recourse to the Department of Labour for conciliation in relation to negotiations for salary or wage increases, the public sector has no such facility. In the public sector, however, grievances relating to conditions of service may be referred to the Department of Labour. The system tends to be weak and ineffective as the Establishments Division conveys messages from the Minister of the Public Service and the Prime Minister's Office rather than act as a negotiating arm of the Government. This way of conducting industrial relations in the public sector is a threat to the future of collective bargaining. It also has implications for the private sector where employers may want to adopt the position that public sector relations should also apply in the public sector. There must therefore be a change in the operation of the Establishments Division if collective bargaining, the right of employees to voluntarily negotiate and settle matters with employers, is to continue. Scheme for workers' participation in decision-making in the enterprise Workers' participation in decision-making at the workplace became a serious topic of discussion in Barbados in the mid-1970s. A committee was set up by the Government in 1977 to examine the possibilities of establishing a model of worker 52

59 BARBADOS: A WORKERS' VIEW participation in Barbados and a study was presented in However, the committee soon became defunct and its work was left incomplete. There are at present no formal schemes for worker participation in decision-making in enterprises. A few work councils exist but these do not function effectively, since management is usually unwilling to convene the meetings called for by the rules of the councils. Furthermore, in many workplaces there is still the need for great emphasis on "bread and butter" issues. The role of the State in industrial relations In the past, the Government only intervened in the collective bargaining process if a dispute was perceived as hindering the administration's plans for economic development. However, this role has been transformed to one in which the Government plays an increasing role in shaping industrial relations practices and crucial industrial relations outcomes. One form of intervention is moral suasion. The Prime Minister or the Minister of Labour may make statements about the economy and the capacity of the country to absorb large wage increases or urge trade unions to be moderate in their demands in the national interest. A more direct form occurred during the early 1980s when the then government would resort to the unilateral implementation of public sector salaries when there was a breakdown in negotiations. The Government's influence is also felt in the kind of legislation it enacts such as the Severance Payments legislation and in its provision for unemployment benefits. However, there have also been attempts to introduce anti-labour legislation. In 1972, a white paper on industrial relations was formulated which was shelved after protest from the union. In 1978 a more stringent paper was introduced but was similarly withdrawn. Additionally, the emergency powers legislation of 1983, not only threatened the country as a whole but the labour movement in particular. This shows that the Government is not prepared to be an impartial umpire in a voluntary system partly because of the delicate state of the economy, high unemployment and deteriorating trade arrangements. The Government is forced to search for ways to cushion the economy against international recession and the local problems. This should, however, be done in conjunction with the parties to industrial relations. An agreement reached through negotiations is easier to honour than one by compulsory arbitration. The system of voluntarism has worked successfully. One has to add that the present administration has committed itself to the approach of voluntarism. It has lived up to this commitment, so far. One has to hope it continues to do so. In any event, the workers have made considerable gains through this approach in the attainment of their goals. Their representatives in the Barbados Workers Union will therefore work towards the maintenance of this system of labour management relations. 53

60 Labour relations in Dominica: A workers' view L.J.B. Nicholas, General Secretary, Dominica Trade Union Trade union membership has been declining in Dominica for the last two decades. The oil crisis of 1974 has had an adverse effect on small economies such as Dominica. Developing countries have had to suffer the full brunt of its impact which resulted in economic recession fostered by the high cost of imported goods, materials and services. This in turn brought about a contraction in industrial activities causing a constant rise in lay-offs, redundancies and retrenchments. The rise in unemployment and spiralling inflation provoked fear in the labour force and concomitant reluctance to join trade unions. As more workers became unemployed the trade unions became weaker both numerically and financially, causing a dislocation of "union muscle power". The Dominica Trade Union The Dominica Trade Union is the oldest union in Dominica, having been established on 11 January 1945 and registered on 31 December It is a general union which represents agricultural, industrial, clerical, domestic, waterfront and unskilled workers. In 1957 there were 6,943 members and by 1960 the total membership was approximately 9,000. In the 1960s, the port section seceded from the union and formed the Waterfront and Allied Workers Union (WAWU). This is a general union, too. In the same year the Dominica Amalgamated Workers Union (DAWU) was formed by Mr. Anthony Frederick Joseph, which is also a "blanket union". In the same year, the Civil Service Association (CSA) was formed as a general union. Teachers, nurses and certain public employees who previously belonged to the DTU were brought under that umbrella. As the labour force became smaller until the end of 1979, poaching was rampant on DTU membership. The vibrant DTU leaders left in search for greener pastures leaving behind a weak and complacent leadership. This enabled the three new unions to capture DTU's members, which explains the dramatic drop in the union's membership to this very day. In Dominica, unions enjoy a fairly good relationship with the Government and Employers' Federations on the basis of a fairly good Industrial Relations Act (although it could be further improved). The Industrial Relations Act, 1986 stipulates that if a trade union claims to have a majority at any workplace or bargaining unit, it may submit a claim to the employer to that effect. Where no industrial agreement is in force and no trade union is recognised as the bargaining agent for that unit the claim could be submitted at any time. Where there is one in force, submission cannot be made earlier than three months prior to the expiration of the term of that agreement. Where another trade union is recognised as the bargaining agent for the bargaining unit but both the union and employer fail to conclude an industrial 54

61 DOMINICA: A WORKERS' VIEW agreement in respect of the bargaining unit within 12 months from the date the trade union was recognised submission could be made from that time and until such an industrial agreement is concluded. According to section 23 of the Act, the employer must recognise a trade union claim for recognition within 14 days of the date on which he receives it provided no other union is recognised already for that bargaining unit. Collective bargaining practices, bodies and procedures Once a union is recognised by the employer as the bargaining agent, proposals for negotiations are drawn up by the union. The employer may or may not submit counter proposals. A date for the commencement of negotiation is set. Provisions for settling disputes within the unit are provided under the collective agreement in line with the Industrial Relations Act. The Arbitration Act, 1986, deals with general matters, umpires, conduct of proceedings, witnesses, costs, fees and interests, enforcement of awards, special cases, etc. Labour disputes Labour disputes are usually related to foreign company's policies, to their mode of operation and their negative concept of workers' democratic rights and freedoms. Government policies are designed to accommodate so-called investors who usually come in empty-handed. The Government provides factory shells and facilities for borrowing funds from local financial institutions. Workers' participation Presently, there are no schemes for workers' participation in decision-making in their enterprise. This was the case for the trade unions in 1979, but due to changes in the Government and due to economic recession and massive unemployment, the unions must now concentrate on regaining some territory. The role of the State The State has been playing a major role in industrial relations. However, its role is not always in the best interest of the workers. Most of the important ILO Conventions have not been ratified by the Government and because the Government has never attended any ILO Conferences, the workers have not been represented either. On the basis of the Industrial Relations Act, there is a fairly good relationship between the workers, employers and the Government. 55

62 Labour relations in Grenada: A government view A. Newton, Deputy Labour Commissioner Public policy in the area of labour relations has been based on the British system of "voluntarism". This principle means that although many areas of concern have been legislated upon by successive governments, labour relations parties are essentially free to conduct their relationship as they wish. A review of labour legislation from the earliest times reveals the usual development and evolution of workers' and trade unions' rights and collective bargaining procedures shared with most Commonwealth Caribbean States. After the abolition of slavery in 1838, the first attempt to regulate conditions of employment took place under the Masters and Servants Act of 1842 which is still on the Statute Books. Under the Act, the term "employer" was widely defined to include foremen, agents, clerks and any persons engaged in hiring, employing or superintending of servants. This definition, which included types of supervisory and technical persons who were commonly accorded their own union rights in these times, is a reflection of the conditions existing just after emancipation when distinctions of this sort, based upon the class divisions of the society, were more easily and strictly drawn. A contract, under section 2 of the Act, included any kind of arrangement or understanding on the subject of wages to which the parties had assented or by which they were mutually bound to each other or whereby either of them endeavoured to impose an obligation on the other of them; whether the agreement was written or oral and whether direct or indirect. The law also provides a minimum period of duration of a month in contracts where there was no express agreement as to duration. Contracts of service were terminable without notice by either party in cases of misconduct and ill usage, but there were penalties for the illegal dismissal of servants. The existing pattern of industrial relations in Grenada evolved during the 1950s and early 1960s. The early 1950 saw an expansion of the trade union movement and the establishment of the Grenada Trade Union Council. The Employers' Federation was founded in the early 1960s. In 1979 Grenada became a Member of the ILO. Trade union recognition and problems of union membership The right of workers to organise, to bargain and to act collectively is guaranteed. The People's Law No. 29 of 1979 (Compulsory Recognition of Trade Unions) sets out briefly the manner in which recognition is to be granted. It requires an employer to recognise and treat with a union of the workers' choice, once that union is issued with a certificate of recognition. However whether an employer has to recognise and treat with a trade union representing certain categories of workers, such as managerial employees is still a matter of practical concern. Although the Grenada Constitution entitles individuals to joining a union of their choice, as an ingredient of the right of 56

63 GRENADA: A GOVERNMENT VIEW association, the legislation does not entitle workers to have their employer recognise and treat with their freely chosen trade union. It is unfortunate to deny the recognition rights to any category of workers. Employers seem to be growing in strength and it is becoming somewhat conspicuous that some of them are anti-union and sometimes engage in unfair labour practices by using measures calculated to keep unions out of their enterprises. Workers tend to succumb because of the need to preserve their job. Most of the unions in Grenada are industry-based or general unions. Trade unions have limited or no control over temporary workers who are outside the union organisation. It follows that any increase of employees who are outside the control of unions relatively weakens their power. Younger workers tend to have a weak sense of attachment to unions and take less interest in union matters (except in the increase in wages) and this may also give impetus to undermining the existing system. The problem is how trade unions should act in response to growth, diversification and complication of industry and how they could maintain their countervailing power vis-à-vis management. It is now a settled practice under the People's Law No. 29 of 1979 to impose a duty on the employer to consult with unions which have been certified by the Minister with a view to establishing negotiations and consultation machinery. It would seem therefore that the role of unions with recognition problems is to campaign for more stringent labour legislation. The onus for correcting the situation as mentioned earlier appears to rest first with employers and employers' organisations and secondly with the Government. The role of employers' organisations in this regard should be to provide employers with expert advice on national labour policy, so as to ensure compliance with the provisions of the Trade Union Recognition Act. Scope and content of bargaining A union gains recognition through a ballot taken by the Ministry of Labour among the workers. Recognition means the right to represent workers in negotiations with employers concerning terms and conditions of employment or the termination of such employment on other matters incidental thereto. Collective bargaining issues are wide-ranging in scope. They include wages, allowances, bonuses, working hours, standards for dismissal, disciplinary action, personnel reshuffles, lay-offs, non-statutory compensation for job-related injuries or sickness, welfare, safety and health, union activities during working hours, check-offs, dispute settlement, industrial action, fringe benefits, etc. In general collective agreements are very comprehensive, covering almost all labour issues. Upon gaining Recognition, the union submits a Memorandum of Agreement to the employer and henceforth they meet to thrash out collective agreements. The signing of an agreement is no absolute guarantee that either party will scrupulously honour its conditions. Differences arise, circumstances change and so do managers and union officials and intentions that led to certain understandings are blurred by the passage of time. Although a collective agreement is not legally enforceable, any 57

64 LABOUR RELATIONS IN THE CARIBBEAN REGION breach of its provisions by either party is considered an act in bad faith and may be interpreted as a "breach" of the contract of employment. Managerial employees are given a contract of employment which incorporates a job description. In the event of differences over any issue, they tend to refer to the tenets of the collective agreement of lower-level workers only as a bottom line. Dispute settlement There are various categories of disputes which are of importance to Grenada. Interest disputes arise out of deadlocks in negotiations for collective agreements. They may relate also to the union membership to job security, wage increases, fringe benefits or other improvements in the terms of employment. Negotiations in these matters are usually based on give and take. The issues are usually amenable to compromise solutions and therefore lend themselves to conciliation. Grievance disputes arise from day-to-day grievances or complaints. They involve individual workers or a group of them. They usually contain the protest of workers against an act of management, e.g. dismissal of a worker which the union considers unjustified. The standards for settlement are to be found in collective agreements, employment contracts, work rules, in custom or law or in the intention of the parties at the time the agreement was concluded. Unfair labour practices arise from acts of interference with the right to organise. The most common practices are attempts by management to discriminate against workers for belonging to a trade union or for trade union activities and are directed, for example, against trade union officials, shop stewards in an undertaking, or workers who participated in a strike. The Department of Labour has always insisted that an employer must not destroy the mutual trust and confidence on which co-operation and good industrial relations rest, by giving unjustified warnings with a view to disheartening the worker and driving him out and deliberately singling out an employee for discriminatory treatment because of his trade union activities. Recognition disputes are disputes over the right of the trade unions to represent a particular category of workers. Where management refuses to recognise a trade union (which is in possession of a Certificate of Recognition) for the purpose of collective bargaining, the People's Law No. 29 of 1979 provides access to the court. However, the Department of Labour may intervene on an informal basis when the dispute is likely to lead to strike or lock-out. It may well be that the management of the enterprise dislikes trade unionism and therefore will refuse to deal with a union. The legislation presently in force requires an employer to recognise and treat with a union of the workers' choice, if that union represents the majority of workers in the workplace. The administration, implementation and interpretation of collective agreements raises questions of trust, honour and good faith and gives meaning to the negotiated contract. In Grenada, the law is that a collective agreement between a union and an employer is not enforceable in a court of law. Experience has shown that more often than not it is the employer, rather than the worker, who seeks to escape from the obligations of collective agreements. Relations at the workplace are 58

65 GRENADA: A GOVERNMENT VIEW governed by two sets of rules. One is labour law and the other is industrial relation practice. Traditionally, the law has left much of industrial relations to be governed not by the law itself but by practices. These practices are open-ended. They include the exhaustion of the grievance procedures as set out in the agreement, conciliation at the level of the Labour Commissioner, mediation by the Minister for Labour, and finally, the utilisation of voluntary arbitration. If the parties agree to employ these mechanisms, the need to engage in industrial action for the settlement of disputes maybe drastically reduced, since the arbitration awards may be seen as a quid pro quo for not striking or locking out. In Grenada, conciliation services are generally provided by the Government through the Department of Labour. The Labour Commissioner is designated as the authority responsible for providing conciliation services. This is on an entirely voluntary basis and it is offered to parties if they request it. When the parties do not appear to wish conciliation they may refer the dispute to the Labour Advisory Board. Arbitration is also voluntary and has been readily accepted as another method of settling disputes under governmental auspices. Disputes are voluntarily submitted to arbitration in which the award is binding in both parties. The arbitration procedure is carried out through the machinery provided by the Government in the trade unions and trade disputes tribunals. Generally it is left to the parties to choose in the particular circumstances of the dispute between conciliation or voluntary arbitration. Usually conciliation is selected where the element of give and take or compromise is important, whilst arbitration may be considered useful where it is difficult for the parties to abandon their positions and an independent award may also serve them as a face-saving settlement. A dispute is submitted to arbitration by the Minister of Labour who does so on the basis of the joint request by or consent of the differing parties. Most collective agreements provide for the submission of disputes to voluntary arbitration by the parties where Conciliation has failed to achieve a settlement. When the parties agree on arbitration, they are to refrain from strike or lock-out. Since voluntary arbitration is a deliberate choice by the parties concerned for the peaceful settlement of the disputes, it needs little encouragement or persuasion by the Department of Labour to obtain their agreement to abstain from industrial action. The Government sees arbitration as an effective measure of last resort, for settling labour disputes without recourse to strikes or lock-outs and for this reason voluntary arbitration has been encouraged as a matter of public policy mainly by giving it statutory force by making awards binding on the parties and providing machinery and facilities for arbitration. At present, conciliation is in crisis since disputants mainly apply it since it is enshrined in collective agreements. However, very often they have no will to compromise. It is argued that arbitration is costly and sometimes unaffordable. It seems therefore that there is need for effective labour legislation for the comprehensive settlement of disputes. 59

66 LABOUR RELATIONS IN THE CARIBBEAN REGION Workers' participation in decision-making It is right and proper that legislation should buttress industrial relations practices which promote the welfare of the worker and are not at the expense of the employer. Many para-statal enterprises have accepted the establishment of participative management at the enterprise and national levels and thus are taking a positive attitude to participation in management. Some unions tend to take a cautious attitude towards participation in view of the possibility that it could place the union in a subordinate position and weaken union functions. Generally, a significant number of workers consider it necessary to promote union participation in management including involvement in formulating management policies or plans. Others find it necessary to promote participation only when it is concerned with the problems which may affect working conditions. Only a few seem to be opposed to participation in decision-making because it brings about disadvantages to the union. Trade unions are not known to press in public for participation in the decision-making process. They have emphasised that they would work to strengthen the joint consultative system as far as basic management issues are concerned. Apart from participation through the joint consultation system, other forms are conceivable such as employee representation on boards of management. Participation may also be exercised by a "labour director" who is part of management itself. In view of the characteristics of Grenadian industrial relations, it is unlikey that this form will take root in Grenada. However, there are many examples of worker participation in decision-making laid down in collective agreements. Worker participation in decision-making is not well established yet as a system. Apart from the level of participation mentioned above, special committees may be set up at the shop-floor level to grapple with management problems and study management policies. There is also a need to strengthen consultation systems which promote good communication and understanding between labour and management on various issues. Finally it is extremely important for government, labour and management to deepen mutual understanding, to fulfil their respective responsibilities and thereby strive to build a wide national consensus as a basis for formulating policies. The role of the State Industrial relations with its focus on wages, employment dismissal, etc. have social and economic aspects and impact on national wealth. Therefore, co-operative and stable labour-management relations are a fundamental factor for the social and economic development of Grenada. There is a great concern for and much attention on planning for economic development in the island. Greater diversification of the economy through industrialisation, capital accumulation, investment inducement, progress in technology and transformation of the industrial structure, employment creation - all intended to reverse the high incidence of surplus labour - are widely articulated and have become matters of great urgency. The Government should continue with its social justice and welfare-oriented labour legislation which was 60

67 GRENADA: A GOVERNMENT VIEW pursued within the last decade (for example, by the replacement of the old type of Provident Fund by a law on a national insurance scheme (NIS)). With a view to safeguarding the public interest, it may be envisaged to impose statutory periods of notice as prerequisite to be observed by employers and workers in Essential Services before either may resort to industrial action in a bid to settle outstanding trade disputes. Neither the Government nor the general public are in favour of an unrestricted freedom of employers and trade unions to take industrial action in services designated as essential without being obliged to give prior notice. To further safeguard the wider public interest in disputes which may have an adverse impact on the community and on the national economy, the Government should require the disputing parties to "cool off' for some legally stipulated period while efforts are being made to achieve a voluntary adjustment of the dispute. If voluntary settlement is not obtainable, the Government should have the power to refer the matter for settlement by compulsory arbitration. In consultation with employers' and workers' organisations, the Government should provide, in circumstances where workers are poorly organised or are not organised at all, statutory machinery for socially acceptable minimum wages and related terms and conditions of employment. This takes into account that certain workers may not be able to bargain collectively with management and is a compensation for their lack of collective bargaining capacity by establishing minimum entitlements. Legislation should not be less advantageous than current practices. Another role of the Government is to implement legislative and social measures that will ensure the maintenance of industrial health and safety at the workplace. It is the duty of labour inspectors to monitor the standards which have been laid down. The Government is also responsible for introducing legislative and social policy measures aimed at ensuring fair labour practices and affording remedies to workers for wrongful and unfair dismissal, keeping wage settlements in line with productivity and engendering more responsible and productive work attitudes by workers. It is not disputed that employers engage in discriminatory employment practices. There are instances when discrimination against workers is based on political grounds or on trade union activism. It is always difficult to persuade employers to observe fair labour practices. The Government has to assess employers' and workers' organisations in training and developing capable industrial relations personnel, able to negotiate collective bargaining agreements with skill and responsibility, having in mind the best for theñrespective organisations and members without losing sight of the wider public interest. Governments should move swiftly to establish legislative and other safeguards against unfair labour practices practised by trade unions or employers. More particularly serious attention should be paid to the matter of job security. Legislative sanctions against giving at will, including the provision of certain remedies for unfair or wrongful dismissal, is a long-overdue governmental measure. The Government has been trying to promote the notion of "property in one's work" and is of the view that this "property" should be protected by law, thereby weakening the power which employers enjoy over workers in this respect. 61

68 LABOUR RELATIONS IN THE CARIBBEAN REGION In order to preserve good industrial relations and to keep the arms of the law out of their relationship, labour and management must themselves experiment with new techniques and new initiatives for minimising open conflict whilst ensuring that justice, fair play and equity prevail. Labour-management practitioners must begin to bring to bear a problem-solving approach to some of the difficulties which arise in industry. Some of the methods which can be used should include continuous bargaining during the life of an agreement, when specialised committees would meet to review actual or potential problems thus emphasising pre-crisis mediation as opposed to mediation after a deadlock has been reached. In addition, it would be useful for the parties to engage in round-table discussions on industrial relations issues. 62

69 Labour relations in Grenada: An employers' view RA Smith, Executive Director, Grenada Employers' Federation Labour relations in Grenada developed with the expansion of the trade union movement in the early 1950s followed by the establishment of the Grenada Employers' Federation in the early 1960s. In addition to the normal management and labour relationship, labour relations in Grenada were influenced in large measure by the identity of interest between the Government and trade unions when for many years, prior to 1979, the Prime Minister of the State was himself the president of one of the largest trade unions. This identity continued through the period. A pattern of labour relations evolved over those years under the Trade Disputes (Arbitration and Inquiry) Ordinance No. 5 of 1943, the Trade Union and Trade Disputes Act No. 20 of 1951, the Essential Services Ordinance No. 11 of 1966, the Trade Unions and Trade Disputes (Amendment) Act No. 20 of 1968, the Protection of Wages Act No. 179 of 1973 and the Essential Services Act No. 16 of With the advent of the People's Revolutionary Government ( ) some additional pieces of Legislation were added under what was called "People's Law": the Trade Union Recognition Law No. 29 of 1979, the Trade Union Recognition (Amendment) Law No. 1 of 1982 and the Maternity Leave Law No. 53 of It is also necessary to mention the introduction of the National Insurance Scheme No. 14 of 1983 which in many ways duplicates provisions set out in the Maternity Leave Law No. 53 of 1983 and which imposes hardship on employers and the Workmen's Compensation (Amendment) Law No. 22 of 1982 which introduces increased benefits. However, the Essential Services Act No. 16 of 1978 was repealed during this period. The Government is now considering the reintroduction of the Essential Services Act which will differ only slightly from the one of 1978 in that there are changes upward in the amount of fines and length of term of imprisonment, the removal of "Lighthouses" from the list of Essential Services and the addition of port and dock services, including pilotage, prisons, security services as well as petroleum services. Problems of employers' organisations The Grenada Employers' Federation suffers from a low level of participation, inadequate facilities for training in labour relations matters and, generally speaking, of a low level of participation by employers due to time contraints because businesses are largely owner-operated. Budgetary constraints are often said to limit participation. Much needs to be done to enable the Federation to offer increased benefits by way of advice and support during negotiations. Generally speaking, trade unions have many opportunities to have assistance in the area of training. To serve their members in the labour relations field is their only role, whereas employers are involved in labour 63

70 LABOUR RELATIONS IN THE CARIBBEAN REGION relations only on a part-time basis and have few opportunities for training. Under the Rules of the Federation, provision is made for negotiation on behalf of the Members. Few businesses in Grenada employ personnel managers. Over the years, the Federation has been invited, not only by its members but on occasion also by trade unions, to intervene in order to resolve disputes, more often than not with success. Collective bargaining The well-established practice in Grenada of collective bargaining whereby recognition is granted to a union having a simple majority on the workplace continues. It implies negotiations covering terms and conditions of employment including hours of work, leave allowances, retrenchment, union security, health and safety, etc. The Trade Unions (Recognition) Law No. 29 of 1979 sets out certain procedures such as application for certification of bargaining agent, certification, appeal, refusal to negotiate, and employer and union prohibitions. Generally speaking, collective bargaining is handled directly between the employer and the union (on occasions a representative of the Federation participates in the negotiation at the request of the employer). In 1968, we saw an agreement between the Farmers' Union and the Grenada Manual and Metal Workers' Union (GMMWU), covering workers in the agricultural sector, passed into law. During the early 1980s, an industry-wide agreement between the Hotel Association and the Bank and General Workers' Union (BGWU) was elaborated. This industry-wide agreement no longer exists due to other unions having gained recognition in this sector during Labour disputes More often than not, causes of labour disputes are related to the perceived "unfair" treatment of workers, principally over matters of interpretation of agreements, terms and conditions of work and dismissal. Disputes have also arisen over dissatisfaction by workers concerning management decisions involving relatively minor matters. Complaints which cannot be rectified by the employee's immediate supervisor are firstly referred to management. The next step is a meeting between management and the trade union. Failing settlement at this stage, a dispute is deemed to exist and the matter is referred to the Labour Commissioner for conciliation. If still unresolved, the matter goes to the Minister of Labour for mediation. The final step is arbitration but the law specifies that both parties must agree to this step. Arbitration can be either by a single arbitrator or by a tribunal comprising those members nominated one each by the employer and the union under a chairman agreed to by both parties. Both parties must agree that there shall be no strike or lock-out during this period. 64

71 GRENADA: AN EMPLOYERS' VIEW Schemes for workers'participation in decision-making in the enterprise There are no well-established schemes for worker participation but provision is made in some agreements for appointment of delegates from among union members to represent workers in discussion with employers. Provision is also made in some agreements for labour management committees to meet and discuss general matters relating to productivity, safety and health, etc. However, the Federation encourages members to allow more worker involvement in decisions which directly concern workers. Conclusion The trade union movement in Grenada entered the present era in 1951, when, as a result of labour unrest leading to an island-wide strike, employers, for the first time, were forced to give serious attention to demands of their employees. The Employers' Federation is recognised by the Government as the representative body in labour relations and is represented every year on the Grenada delegation to the International Labour Conference in Geneva. There is in existence a labour advisory board but this body does not function well and does not have the opportunity to comment on draft labour legislation. However, the board has before it for consideration at the present time a Draft Labour Code which not only seeks to consolidate and update all existing legislation but introduces many new areas. In Grenada, as in many other territories, it still cannot be said that all employers and employees extend proper respect and consideration for those on the other side. The tourist industry, the commercial and industrial community and recently the manufacturing community depend on the satisfactory operation of all sectors and if any one sector is operating under adverse conditions, no other sector can achieve its full potential and the development of the economy will suffer accordingly. It is the responsibility of employers, employees and of the Government to recognise this, and in the labour relations field, to extend this respect and consideration without which the creation of a harmonious atmosphere essential for progress is not likely to be achieved. The best ways of achieving this is by tripartite consultation, and the Grenada Employers' Federation strongly supports all moves in this direction. 65

72 Labour relations in Grenada: A workers' view E. Bishop, Secretary and Treasurer, Grenada Trade Union Council The labour force in Grenada, according to the latest government statistics, is 33,558; 7,532 are organised in unions. The present rate of unemployment has not been disclosed by the Government but it is estimated to be over 30 per cent. As a result of limited demand for labour and the need of the unemployed for some form of income as a means of survival, there is a tendency to accept almost any kind of job regardless of poor conditions that go along with it. This involves the absence of trade unions, low wages and incentives based on unrealistic targets. Some employers, especially foreign investors, have been guilty of exploiting this situation in the absence of a national employment policy. Union organisation Between the early 1900s and today the labour movement in Grenada has made very significant progress in the field of social justice and in recent times has upgraded workers' education locally to train rank-and-file members, shop stewards, officers and leaders in order to respond positively to the growing responsibilities facing the labour movement. Trade unions in Grenada were also able to organise themselves into one umbrella body: the Grenada Trade Union Council (TUC). TUC was formed in March This organisation is comprised of seven affiliated unions: the Grenada Union of Teachers (GUT); the Public Workers Union (PWU); the Technical and Allied Workers Union (TAWU); the Commercial and Industrial Workers Union (CIWU); the Seamen and Waterfront Workers Union (SWWU); the Bank and General Workers Union (BGWU); and the Taxi Owners' and Drivers' Association (TODA). The industrial relations system The industrial relations system in Grenada allows for employers and trade unions to engage in collective bargaining and to enter into collective agreements. The system also allows for conciliation and arbitration in the event that both parties are unable to reach agreement on any matter. In practice, most employers, public and private, enter into negotiations with a negative approach. It is not uncommon to find employers offering "zero" per cent increase in response to a just and legitimate demand by the trade union for salary increase. It is not uncommon also to find the public sector employer using its political power against public sector trade unionists and to subvert legitimate trade union organisations. Indiscriminate transfers, suspensions and retrenchment are well known in Grenada. In the private and public sectors some employers display great hostility to certain trade unions while others go to the extreme by threatening to dismiss their 66

73 GRENADA: A WORKERS' VIEW employees if they choose to join a trade union of their choice. Presently, the Technical and Allied Workers' Union, the union representing the largest percentage of the organised workforce in Grenada, is up against a struggle for survival after a directive from a government ministry ordering state enterprises to cease normal relations with the union. Thus, many state enterprises have withheld payment of dues deducted from the workers as well as broken industrial relations with TAWU. The TUC is presently engaged in a struggle to ensure the restoration of normal relations with the union and the enterprises involved. The TUC envisages the role of the Labour Department in industrial relations as primarily concerned with the following: (1) to minimise industrial conflicts through conciliation; (2) where disputes cannot be settled by conciliation, the dispute be referred to arbitration where a settlement award is made; (3) to ensure, where workers are unorganised, acceptable minimum wages and related terms and conditions of employment; (4) to provide statistical data that will enable employers and trade unions to conduct collective bargaining on a realistic and informed basis; (5) to ensure regular monitoring of industrial and safety and health standards at workplaces; (6) to ensure the adoption by employers of fair employment practices and keeping wage settlements in line with productivity and ability to pay; (7) to ensure justice in the case of unfair dismissals; (8) to assist the employers' and workers' organisations in working towards industrial peace in the country. The system appears to be strained at the conciliation level since the Department of Labour never seems able within recent times to handle the number of matters brought before it effectively and efficiently according to the numerous complaints brought to the TUC in this regard. This involves long drawn out issues for conciliation and instances where employers bluntly ignore directives from the Department, and a most recent development where the Ministry has advised an employer to cease normal relations with a union. Labour legislation The legal provisions governing industrial relations in Grenada are outdated, incomplete and inadequate. A tripartite committee, the "Labour Advisory Board", set up in 1985 was welcomed by the TUC as a step in the right direction. This committee comprises representatives from the Employers' Federation, from the Government and from the labour movement. The first task bestowed on this body was to study a proposed Labour Code for Grenada, drafted with the assistance of the ILO, and to come up with recommendations and amendments for a final draft. To date, this exercise is yet to be completed. A Bill on essential services went through all stages in the House of Representatives in 1988 and was due for the second reading before the Senate before the labour movement had any knowledge of the legislation. The TUC subsequently sought to halt its enactment so as to have time for study and comments. A two-month period was granted and the TUC, after having studied the Bill, is convinced that if it is passed into law in its present form, it will prevent workers from taking any industrial action. An appeal has been submitted by the TUC for a withdrawal of the Bill. Some 67

74 LABOUR RELATIONS IN THE CARIBBEAN REGION of the main concerns of the TUC are: 28 days' notice for any industrial action; submitting names of workers to take industrial action; mandatory arbitration by the Minister of Labour who has the right to appoint an arbitrator or arbitrators; although a schedule has been given, the Minister will have the power to add to the schedule; the Minister can declare any strike, sick-out, go-slow, work to rule or any form of industrial action illegal; the Attorney-General can decide who should be or should not be charged under the law; and finally, unions will be forbidden to inform members on proceedings during arbitration. Conclusion The industrial situation in Grenada can be described as peaceful; however, it is aggravating. The negative attitude of some employers to trade unions, outstanding issues at the Labour Department, the directive to cease relations with the Technical and Allied Workers' Union and the introduction of a billion essential services without justification are indicators for the uneasy mood developing within the labour movement in Grenada at this time. The TUC realises the importance of ILO Conventions and stands ready to participate fully at the national level in all matters affecting workers in this context. A committee has been set up to look at ratified Conventions and to seek their being given legislative effect. Already, a number of ratified Conventions have been identified as not having been passed into law. It is our view that the present industrial situation is not the best for the working people. However, it is important that an industrial relations system remains in place, which gives room for dialogue since dialogue is the only effective way for peacefully and amicably settling industrial matters. 68

75 Labour relations in Guyana: A government view M. Bascom, Deputy Chief Labour Officer, Ministry of Labour Problems of trade union membership In Guyana, the Trade Union Act, Chapter 98:03, makes provision for a person under the age of 21, but above the age of 16 years, to be a member of a trade union unless provision is made in the rules of the union to the contrary. These persons therefore have the right to enjoy all privileges of membership. There is no restriction under the Trade Union Act as to who may join a union but the unions themselves impose thenown limitations. The trade unions in Guyana are organised into four basic types: the industrial unions such as the Guyana Mine Workers Union and the Guyana Bauxite Supervisors Union whose membership comprise all workers in the bauxite industry; the general unions such as the Manpower Citizens Association (MPCA) with membership drawn from the sugar industry and the Guyana Electricity Corporation; unions which cater primarily for government and quasi-government bodies such as the Guyana Public Service Union (GPSU) and the Guyana Postal and Telecommunications Workers Union (GPTWU); and the commercial and clerical unions such as the Clerical and Commerical Workers Union (CCWU) which caters mainly for workers in the private sector. Very often, more than one trade union exists and is registered to organise the same group of workers which results in duplication and inevitably leads to jurisdictional disputes which are referred by either union to the Ministry of Labour for resolution. In the event that the Ministry fails to resolve the issue, it then refers the matter to the Guyana Trades Union Congress to be dealt with by the committee set up by the Congress for such matters. There are no special provisions relating to the recognition of trade unions. However, at the moment discussions are in progress between the Government, the Trade Union Congress and the Consultative Association of Guyanese Industry on the introduction of a legislation which will make it compulsory for an employer to recognise a trade union as a bargaining agent of his employees once certain procedures are met. Many employers in Guyana are violently opposed to trade union representation and actually go to considerable length to keep unions out of thenundertakings. Problems of employers' organisations The Consultative Association of Guyanese Industry Limited is recognised as the employers' organisation which has a direct bearing on the industrial relations system in Guyana. It is a broadly based organisation embracing a variety of industries at the national level. The Association is composed of a varied membership drawn from both 69

76 LABOUR RELATIONS IN THE CARIBBEAN REGION private and public sectors of the economy, including members engaged in competition. From their midst, competent persons are selected to represent employers' views on labour and industrial matters to the authorities concerned. The number of ordinary and associate members totals 40. There are three types of membership: ordinary, associate and honorary. The members are further classified into the following 12 groups: shipping, transport, distributive trades, mining, manufacturing, agricultural interests, building and civil engineering, insurance, banking, public corporations and other interests. The Association acts as a consultative and advisory organisation on employment and labour matters which affect its members and is recognised by the Government as the counterpart of the Guyana Trades Union Congress within the tripartite system. It is consulted by the Government whenever labour legislation and labour policies are to be determined. It participates in the work and is a member of a wide range of government committees, boards, councils and commissions. Collective bargaining Collective bargaining in Guyana is patterned after the British system and is practised mainly by trade unions and employers in the private sector and in quasi-government bodies such as public corporations which were formerly private commercial undertakings before having been absorbed or nationalised by the Government. In the private sector, which represents 20 per cent of the economy, individual unions are free to enter into negotiations with employers. These negotiations normally begin after the recognised union submits its memorandum of demands to the employer. In cases where the parties fail to reach agreement the services of the Ministry of Labour are available. Grievances, wages and conditions of employment are the main issues of collective bargaining. Negotiations concerning grievances are dealt with at various levels commencing at the local or plant level where the union branch officials and first-line and middle management are involved and culminating at the central level where the paid full-time officers and top management take care of the matters. Proposals for wages and conditions of employment are submitted by the General Secretary or other central officials to top management of the firm and it is at this level that talks normally commence. There are, however, instances where wages and conditions of employment are negotiated at the local or plant level to cater for peculiar local situations. Since 1977, wages and other conditions of employment in the public sector have been established by centralised bargaining between the Government and the Guyana Trades Union Congress. The Labour Amendment Act No. 9 of 1984 made provision for the Guyana Trades Union Congress to bargain with the Government on behalf of all public sector employees. This meant that individual unions representing workers in the public sector were prohibited from negotiating on behalf of workers they represent. The issue of bargaining by individual unions brought to court by members of the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) and the Court of Appeal restored the right to collective bargaining to individual unions. 70

77 GUYANA: A GOVERNMENT VIEW Agreements are either procedural or substantive in nature. The content of procedural agreements comprises recognition, rights and obligations of the parties, grievance procedures, union security arrangements and the life of the agreement. Substantive agreements feature monetary issues such as wages, salary scales, hours of work, leave conditions, premium and overtime rates, increments, leave passage and a number of other conditions. In the public sector, management is precluded from concluding contracts having financial implications without first seeking the approval of the Minister of Finance. While wages in the public sector are established by negotiations between the Government and the Guyana Trades Union Congress, wages for certain categories of workers in the private sector such as watchman, laundry employees and employees in groceries, hardware stores, drugstores, dry goods stores and sawmill and quarry workers are established by a tripartite consultative committee consisting of representatives of employees, employers and the Government. Many of these occupational groups are not in the public sector and are not organised by trade unions either because of the casual nature of their employment or because they are located in areas where it is difficult and uneconomical for trade unions to organise workers. Labour disputes The majority of strikes recorded over the years in Guyana have occurred in the sugar industry. During 1986, the number of strikes totalled 453 and of this number, 447 originated in the sugar industry while in 1987, of the 497 strikes recorded, 489 are in the sugar industry. So far, for 1988,189 strikes have been recorded including a major strike which lasted from 25 January to 19 February. This strike resulted from a dispute between the Guyana Sugar Corporation Limited and the unions representing workers in the sugar industry over the formula for the annual production incentive. A commission of inquiry was appointed to examine the formula and to review the profit-sharing formula in the hght of the industry's current cost structure and capital employed, and to recommend one that is fair and reasonable. The unions rejected the terms of reference of the one-man commission on the ground that there was no dispute over the formula for profit sharing. The commission has not yet reported on its findings. Generally, the majority of strikes occurring in the industry are of short duration and result mainly from pricing disputes. During 1986 and 1987, the strikes which occurred in other industries were over pay disputes. Disputes also occur over terms and conditions of employment and are usually referred to the Ministry for conciliation or arbitration with or without strike action being taken as a preliminary measure. If the conciliation services of the Ministry are unsuccessful, the matter is referred either to arbitration under section 4(c) of the Labour Act, Chapter 98:01, or to an advisory committee under section 6 of the same Act. In cases where the parties accept arbitration as a means of resolving their differences either one or more persons perform the duties of arbitrator and the decision is binding on both parties. If the matter is referred to an advisory committee whose terms of reference are much wider 71

78 LABOUR RELA TIONS IN THE CARIBBEAN REGION in scope and takes the form of an inquiry into all aspects of the dispute, the report or recommendations are referred back to the Minister before a final decision is taken. Disciplinary issues, dismissals and suspensions also give rise to disputes and very often result in strike action. They are dealt with in the normal grievance procedure and are referred to the Minister of Labour for conciliation. The majority of them are resolved at this level. Workers' participation in decision-making Workers' participation in Management was institutionalised in Guyana during the 1970s. The system was initially introduced in public corporations with the intention of extending it to the entire public service. Like any new system, it was viewed by many with some degree of suspicion. Therefore, it was necessary to sensitise both management and workers to the benefits of the system. To this end, a number of training programmes and seminars were conducted under the aegis of the Ministry of Labour under whose guidance workers' participation was implemented in various undertakings. Following discussions with the Guyana Trades Union Congress and the Consultative Association of Guyana Industry Limited, the Ministry of Labour prepared a general framework within which suitable systems of workers' participation were to be implemented. The relevant document makes provision for a one, two or three-tier system, depending on the structure and size of the organisation. So far, it is mainly practised in the public sector organisations, the majority of which have opted for the two-tier system. This system makes provision for the establishment in each section of a works council at the lowest level of decision-making within the organisation. The council comprises an equal number of management and non-management workers' representatives as advised by the Ministry of Labour with a term of office of one year. The chairman and secretary are elected by and from amongst the full council. From the various works councils in the organisation the non-management representative is elected to serve on the board of directors. The three-tier system is comprised of a works council, a co-ordinating council comprising representatives elected by and from the non-management workers' representatives on each works council and an equal number of management representatives nominated from among the divisional heads/managers by the undertakings, and a workers' representative who is elected by and from representatives of the co-ordinating council to serve on the board of directors. If the Minister is satisfied that it is impracticable to establish either a works council or a co-ordinating council or both in the undertaking, then the non-management workers would elect from among themselves one representative to serve on the board of directors of the undertaking. The pace of the development of the system has been remarkably slow, for out of a total of 30 corporations, approximately 17 have established works councils. In addition to this, checks have revealed that in some industries only a small percentage of employees' suggestions have been accepted by management. In other industries, 72

79 GUYANA: A GOVERNMENT VIEW there is a growing willingness by management to consult and negotiate with employees on issues such as work allocation, work practices and the use of technology. However, there is need for both management and non-management workers to be involved in regular training programmes on workers' participation in order to prepare them for the roles they are required to play in the organisation. Role of the State in industrial relations The State has a vested interest in the maintenance of industrial stability and peace in order to develop its economy. As one of the large and growing employers of labour, it has to be more and more involved in the direct practices of industrial relations. The agency charged with the responsibility of supervising industrial relations is the Ministry of Labour within whose purview come all forms of third-party intervention. The services provided by the Ministry are accepted as an integral part of our voluntary system of industrial relations. In all grievance procedures embodied in collective agreements, the conciliation and arbitration services of the Ministry are listed as the ultimate stage through which grievances can be processed. These services are provided by the Ministry free of cost and can be regarded as the State's contribution to industrial stability and peace. The conciliator uses his skill and training to narrow the areas of differences between the parties in order to accommodate the respective positions of the parties. This is achieved by a series of compromise proposals which, if successful, allow the parties to proceed with the business of producing the necessary goods and services in an atmosphere of harmony. Some collective agreements make provision for unions to take strike action after conciliation has failed after giving adequate notice, instead of proceeding to arbitration. In circumstances where such provisions exist, the Ministry of Labour intervenes after notice has been served and uses the avenues available to it to resolve the issue. It may involve the advisory committee which could conduct an inquiry into all of the issues stipulated in the terms of reference, and report thereon. In some cases, it is required to make recommendations which do not necessarily have to be accepted by the Government or the parties in dispute. They, however, provide the basis for further conciliatory talks aimed at the final resolution of the dispute. In order to fulfil its duty to ensure the uninterrupted supply of certain commodities and services, the State has enacted legislation in Guyana to forestall strikes or lock-outs until the Ministry of Labour and the Cabinet have been given the opportunity to take steps for the settlement of disputes in question. The Public Utilities Undertakings and Public Health Services Arbitration Act, Chapter 54:01, prescribes the procedure which must be followed by the parties, on pain of certain penalties, to have such disputes resolved. It also lists the types of undertakings to which the Act applies which include gas, petrol, water and electricity supplies, hospitals, postal and telecommunications and municipal services. It also imposes time-limits within which action must be taken at certain levels to resolve the disputes. Breaches of the provisions of the Essential Services Act rarely attract the attention of the courts mainly because of the peculiar relationship which exists between trade unions and 73

80 LABOUR RELATIONS IN THE CARIBBEAN REGION political parties whose leadership is identified with trade unions. The Ministry of Labour also operates an early warning system in these areas and quickly intervenes to restore normalcy through conciliation and compulsory arbitration provided for by the Act. 74

81 Labour relations in Guyana: An employers' view D.I. Yankana, Executive Director, The Consultative Association of Guyanese Industry Ltd. The Consultative Association of Guyanese Industry Ltd. The Association, moulded as a private liability company, was incorporated in August 1962 to represent the interests of employers with strong industrial interests. In , there was much turbulence in industrial relations, the high mark being a national 80-day strike in the first half of 1963 which reduced the country to little or no industrial or service activity. Private interest groups represented in the Georgetown Chamber of Commerce, dominated by commercial and trading interests, could not adequately advance the interests of the employers, and the Association, though only a few months old, was very instrumental in influencing the end of the 1963 disputes. The Association has grown in strength since then, celebrating its 25th anniversary in August The membership consists of seven ordinary members and 23 associated members. In addition, there are 159 other members who are registered with three other associations which in turn are members of CAGI. It is managed by a council representing membership interests and its day-to-day management is in the hands of an executive director. As provided under its present Constitution, the Association's main objects are: to co-operate with the Government and the TUC in the development and maintenance of good and healthy industrial relations; to consult with the Government and to provide ideas, suggestions and factual information relating to employment; to co-operate with the Government and other national institutions concerned with employment in promoting efficiency; to initiate, facilitate, promote and provide consultation between members or groups of members on employment and labour matters affecting them or on any question of interest or difficulty submitted for consideration by any member with a view to obtaining the Association's advice, guidance and assistance but which does not constitute interference with the right of members to conduct and manage their own affairs. In short, CAGI is a consultative and advisory organisation on employment and labour matters which affect any or all of its members. In order to maintain flexibility in the conduct of its affairs, the Association is registered under the Companies Act and as such it is not a trade union. It is not a chamber of commerce and it is not a quasi-government organisation. It is an autonomous, non-profit-making organisation, financed entirely by members' subscription. It is dedicated to enhancing harmonious atmosphere and progressive practices and ideas in the field of employment, industrial relations, welfare and management in the interests of orderly and efficient development of the country's economy for the benefit of all concerned. In the field of industrial relations, the Association is very active through its labour advisory committee made up of industrial relations practitioners drawn from 75

82 LABOUR RELATIONS IN THE CARIBBEAN REGION its member companies. It is recognised by the Government as the "voice" of employers and, in this regard, it is consulted by the Government on draft labour legislations. CAGI also fields the employers' representative on the tripartite delegation to the International Labour Conference in Geneva, Switzerland. Service to its members consists in giving advice solicited by the members in preparation for encounters with unions. It does not actively bargain across the table for its members. Where disputes have arisen between an employer, who is a member of the Association, and a union which has gone beyond the realm of settlement between the two parties, CAGI will intervene at the Ministry of Labour or with the Trades Union Congress to which the union is affiliated to work out a strategy for an early solution. Employers' organisations in the Caribbean suffer from financial limitations brought about by the smallness of its membership which in itself is a function of the national industrial base. In most countries, such organisations are a one-man enterprise and survive with voluntary help from their membership. CAGI is no different. In addition to its industrial relations function, CAGI has embarked on a very ambitious training programme for its members from induction to middle-management level. Over 500 persons per annum pass through CAGI's training courses. A cadre of 33 trainers, employees of member companies, perform the duties of instructors and, through an association with the Industrial Society, London, the training needs, including equipment, are constantly upgraded. CAGI and the Industrial Society also train approximately 100 senior managers per year. The training courses are paid for by the member companies. Collective bargaining Guyana - a former British colony - adopted a voluntary system of industrial relations. This means that both employers and workers treat their relationship as autonomous with little interference from the courts or the Government. Both the employers and trade unions have repeatedly sought tripartism as an essential feature of their relationship which would involve the third party - Government, through the Ministry of Labour. Management and workers, by negotiations, enter into agreements on wages and general conditions of employment. Procedures are embodied in the agreement for the avoidance and settlement of disputes and grievances. These agreements are usually for a period not more than two years although three-year agreements are not uncommon provided there is ample machinery for reviewing wages and salaries over the period. In case a dispute arises, the grievance procedure laid down in the agreement is applied and, if a solution is not found, either party can apply to the Ministry of Labour for conciliation. If conciliation fails, the conciliator will urge the parties to refer the matter to arbitration which may be established by mutual consent or by request of either party. Where there is no agreement or should the Minister of Labour regard the dispute to be injurious to the welfare of the country, he could, on the basis of the Labour Act, compel the parties about arbitration. 76

83 GUYANA: AN EMPLOYERS' VIEW Notwithstanding the basic principle of voluntarism, there are about 15 Acts to regulate the relationships of employers and workers some of which go back as far as A while ago, a Labour Code Commission recommended to upgrade existing legislation, some of which is still in the drafting stage. The Ministry of Labour plays a central role in the relationship between employers and trade unions, in so far as the application of rules and procedures to enforcement and the resolution of disputes are concerned. Labour disputes The Guyana economy has suffered and revealed serious setbacks during the decade The Government of Guyana has recently announced plans for structural adjustments which will involve an agreement with the IMF, the settlement of international debts, the rehabilitation of essential parts of the infrastructure, the encouragement of private investment and sustained plans for long-term growth. While employers look with much optimism to an upsurge in economic activity, members are fully aware of the stringent and harsh conditions usually dictated by the IMF, supported by reports of hardships in countries where structural adjustments have been implemented. The Government of Guyana has requested mitigating measures to ease the effects of adjustments on certain parts of the population. During the past decade, there was a decline in manufacturing due to the absence of raw materials. This was brought about by financial problems restricting imports which in turn led to reductions in employment and a slowing down of improvement in workers' remuneration. While open conflicts could be avoided, there has been a rapid turnover of staff seeking better remuneration, resulting in a loss of skills. In many areas there has been a noticeable decline in motivation, lack of adherence to rules and procedures, high incidence of absenteeism, careless work, together with a marked decline in integrity. Employers have interpreted such behaviour to be a covert manifestation of workers' dissatisfaction. The open strike is no longer a weapon in the armoury of workers. Under these circumstances, labour dispues in the private sector, as reported by the Ministry of Labour or brought to the knowledge of the Association by its members, appear to be very small in number. It has been advanced that large companies have developed suitable and effective communication links between floor workers and supervisors which aim to nip disputes in the bud and prevent them from developing into serious confrontations. In this regard, the Association is of the view that its regular programmes on industrial relations, on the avoidance of and settlement of disputes, as well as its courses in effective communication for senior managers, are measures contributing to the prevailing industrial harmony. In the public sector side of our membership, frequent stoppages do occur in the sugar industry, over task and piece-rate issues, while long-standing problems in bonus and incentive awards give rise to periodic stoppages. While the serious issues in the sugar industry generally become the subject of Commissions of Enquiry, the less formidable problems in both sectors are settled, with the help of the Ministry of Labour, if it is recognised that the problems are getting out of hand and a solution is not in sight. As a general rule, therefore, disputes are 77

84 LABOUR RELA TIONS IN THE CARIBBEAN REGION Stoppages of work in Guyana, Year No. of work stoppages Workers involved Workdays lost Wages lost Duration (days) Average duration (days) Source: Annual report, Ministry of Labour, settled at the workplace by consultative practices and only a few major items reach the conciliatory level at the Ministry of Labour. Statistical information from the Ministry of Labour has revealed that workers also take complaints directly to the Ministry. In 1987,746 were lodged, out of which 493 were investigated. In 1987, as in previous years, work stoppages were heavily concentrated in the sugar industry with 489 or 98 per cent. It is important to point out that these work stoppages were in most cases of a very short duration and do not give much cause for alarm. For example, in , per cent of work stoppages lasted between one to two days. Outside the sugar industry, there were eight work stoppages, two occurring in the bauxite industry which resulted in a loss of 88 workdays. The other six work stoppages occurred in other establishments resulting in a loss of 2,375 workdays and $65, in wages to workers. Schemes for workers' participation In the private sector, this Association is aware of only one company where workers' representatives are active at the management committee level. In one other company, senior executives have been admitted to the board, but the board members have the right to exclude all the executives or such executives as the board members may name from the discussion of any matter before the board. The conclusion to be drawn is that worker participation is not an issue which shareholders are anxious to promote, nor are there pressures, as far as CAGI is aware, from workers or unions. In the public sector, the Ministry of Labour and Co-operatives promotes schemes for workers' participation in state-owned entities. Elaborate programmes have been drawn up providing for the election of workers to board levels. The success rate of such schemes do not appear to be high according to the 1987 report of the Ministry. Out of a target of nine schemes planned for the year, onlyfivewere achieved and the target for monitoring existing schemes was not fully attained (only 56 per cent). The 1986 report of the same Ministry noted that both workers and employers do not seem to have an appreciation for worker participation. There have been unconfirmed reports that a few unions prefer union participation rather than 78

85 GUYANA: AN EMPLOYERS' VIEW "worker" participation and documents produced by successive Conferences of the Trades Union Congress have conspicuously avoided the issue. The role of the State in industrial relations The labour movement as a mass organisation, with the trade unions speaking for about 80,000 workers, must always be an attractive source of power to political aspirants. In the Guyana context, the union operating in the sugar industry has always expressed its affiliation to the People's Progressive Party, while some other unions have expressly allied themselves to the People's National Congress, the party which has formed the Government of Guyana since In Guyana, the Government is the largest employer since the principal economic activities are state-owned. The management of the economy is therefore mainly the responsibility of the Government and, as a consequence, the State and its organs must play a dominant role in industrial relations. In a paper prepared by the Ministry of Labour for a tripartite conference on industrial relations held in Guyana in 1986, the view was expressed that while the voluntary characteristic of the industrial relations system must be emphasised, the question was raised as to whether the time had come to lay down certain rules. As regards the rule making, the People's Progressive Party in the Government in 1953 and 1963 enacted legislation that provoked serious trade union opposition. In 1967, the present Government tabled in Parliament a Trade Disputes Bill which was neither debated nor enacted, and amendments to the Labour Act in 1975 and Both Acts were intended to settle issues of an economic nature which had arisen in the industrial relations scene. For the record, it may be useful to mention that workers in a state-owned industry contested the validity of the 1984 (Labour Amendment) Act as regards wage fixing in the courts of law, and the country's highest court struck down in 1987 certain key sections of the Act. At present, a trades union recognition Bill is circulated among the trade unions and the employers. Both groups have been asked to compile their views for consideration by the Ministry of Labour. It would be premature to conclude that there is a move to replace the voluntary system by legislation, but the examples quoted, isolated as they may appear, are two instances where the State has legislated on economic issues involving state workers in an industrial relations scenario. 79

86 Labour relations in Guyana: A workers' view Selwyn 0. Felix, Vice-President, Guyana Trades Union Congress There are approximately 50 registered trade unions in Guyana. Of this number, 24 unions represent a membership of about 79,000. They are affiliated to the Guyana Trades Union Congress. The trade unions can be categorised as follows: (1) public sector unions (such as the Public Service Union, the Teachers' Union, the Postal and Telecommunication Workers' Union and others); (2) industrial unions (such as the Guyana Mine Workers' Union and the Guyana Bauxite Supervisors' Union); (3) general unions (such as the General Workers' Union, the Amalgamated Transport and General Workers' Union, the Manpower Citizens' Association and others); and (4) commercial unions (such as the Clerical and Commercial Workers' Union and others). The Trades Union Congress is of the opinion that it is desirable to achieve a reduction in the number of trade unions by way of amalgamation or mergers. Discussions in this field are continuing. The Trades Union Congress has very recently completed discussions with the Ministry of Labour and Co-operatives on a Draft Trade Union Recognition Bill. Its enactment is of considerable importance for all parties involved. Collective bargaining Recognised trade unions and employers' organisations conclude collective agreements on all matters including procedures for bargaining and consultation. Prior to 1977, there were no limitations as regards the scope of bargaining except that some employers' organisations insisted on separate bargaining units for managerial and supervisory personnel. During August 1977, the Government of Guyana and the Executive Council of the Guyana Trades Union Congress entered into a three-year agreement (retroactive to 1 January 1977) on wages and salaries for workers within the public sector. The passage of the Labour Amendment Act No. 9 of 1984 makes provisions for the enforceability of collective agreements. It reads: 1. Every collective agreement which - (a) is made in writing on or after the date on which this section comes into operation; and (b) does not contain a provision which (however expressed) states that the agreement or part of it is intended not to be legally enforceable, shall be conclusively presumed to be intended by the parties to it to be a legally enforceable contract and with effect from the date specified for that purpose in subsection (3) the collective agreement shall, in so far as its provisions are not inconsistent with the other provisions of this Act or the provision of any other written law, be binding on and enforceable by or against the parties to it and, where any such party is an organisation, all the persons who are members of that organisation on the date on which the collective agreement is made and all those who become members of that organisation after that date. 80

87 GUYANA: A WORKERS' VIEW (a) (b) (a) (b) (c) (d) (e) (f) According to this Act, a "collective agreement" - is an agreement or arrangement made (in whatever way and in whatever form) by or on behalf of one or more organisations of employees and either one or more employers, one or more organisation of employers, or a combination of one or more employers and one or more organisations of employers; and is either an agreement or arrangement prescribing (wholly or in part) the terms and conditions of employment of employees of one or more descriptions, or an agreement or arrangement relating to one or more of the procedural matters specified in subsection (2), or both. The procedural matters referred to in subsection 1(b) are - machinery for consultation with regard to, or for the settlement by negotiation or arbitration of, terms and conditions of employment; machinery for consultation with regard to, or for the settlement by negotiation or arbitration of, other questions arising between an employer or group of employers and one or more employee or organisations of employees; negotiating rights; facilities for officials of trade unions or other organisations of employees; procedures relating to dismissal; procedures relating to matters of discipline other than dismissal; (g) procedures relating to grievances of individual employees. The Appelate Court has repealed section 28(c) of this Act which contained the right of the Guyana trade unions to enter into collective bargaining on behalf of the public sector employees. Affiliates of the Guyana Trades Union Congress are in the process of discussing this matter, weighing the advantages and disadvantages of central collective bargaining in the public sector. The Government has clearly expressed its readiness to consider proposals from the Trades Union Congress regarding the re-enactment of section 28(c). Labour disputes and procedures for settlement Disputes often concern instances of victimisation and discrimination, of unfair dismissals and of termination of employment in general. There is legislation on these matters (Labour Act, Chapter 98:01; Public Utility, Undertakings and Public Health Services Arbitration Act, Chapter 54:01; Factories Act, Chapter 95:02; National Insurance and Social Security Act, Chapter 36:01). Generally, most collective agreements provide mechanisms for dispute settlement. When these fail, disputes are, by either party, referred to the Ministry of Labour for conciliation and, if need be, for arbitration. Workers' participation Both the Government and the Guyana Trades Union Congress have expressed a firm commitment on this matter. However, there appear to be very serious reservations on the part of certain employers and their organisations as regards the need for 81

88 LABOUR RELATIONS IN THE CARIBBEAN REGION expediting workers' participation and the evolution of Guyana's social system and economy. The role of the State On 25 August 1974, a Labour Code Commission which had the blessing of both the Guyana Trades Union Congress and of the employers' organisations was established for the purpose of reviewing existing labour legislation with a view to making substantive recommendations for desired amendments thereto. This Committee presented its report in 1981 and its proposals have not in their entirety been enacted so far. They have, however, entailed certain amendments to the safety, health and welfare regulations in respect of night work for women and as regards the obligation of employers to promote a safe working environment and to pay compensation if they fail to do so. In addition, collective agreements are now legal documents and it is obligatory for the parties to register them with the Chief Labour Officer. Also, the Holidays with Pay Bill, the Severance Pay Bill, the Trade Union Recognition Bill and the Trainee (Employment and Conditions of Service) Bill have been their basis for these proposals. In summary, it could appear that the industrial relations situation continues to be stable except in the sugar industry. The work of the TUC will continue to foster stability and industrial peace within an agreed and determined programme for the economic recovery of Guyana. 82

89 Labour relations in Jamaica: A government view LR. Stewart, Acting Director, Industrial Relations, Ministry of Labour If someone, especially an outsider takes a general view, he could conclude that industrial relations are alive and well in Jamaica. This conclusion, uncritically arrived at, would be basically correct. Industrial relations as practised in Jamaica have reached a level of sophistication and expertise that this country can be proud of. Jamaica has borrowed systems - by way of customary acceptance as well as statutory regulations - mixed these with indigenous and peculiar social practices to forge an interesting and acceptable industrial relations structure. However, complex institutions and processes need to have all their facets and components critically examined in order to appreciate their strengths and weaknesses. The industrial relations process in Jamaica is no exception. Industrial relations in Jamaica are dynamic and revolutionary, and with that as a basis, we look at various aspects of the process. Trade unions There are 152 registered trade unions in Jamaica. As of 1986, the last year for which we have reliable figures, only 41 were active in terms of having members and representing members. This means that the "drop-outs" have ceased to operate as separate entities and have been absorbed by other organisations, or their functions are no longer relevant. Of the active 41, seven are employers' associations and 34 workers' organisations. Jamaica has a total workforce of 1,079,200 against an employment figure of 855,000. It is estimated that trade union membership is approximately 20 per cent of the workforce. The net membership, however, is somewhat less because in Jamaica some workers are members of more than one trade union. This probably needs to be explained. Jamaica's trade unions are (with few exceptions) general workers' unions with a "catch-all" approach. This means that the trade unions are always aggressively competing for members. Some workers, partly out of confusion and partly playing it safe, become members of all the unions operating or seeking to operate at the particular workplace. There is, of course, also a political dimension. Jamaica's two major political parties come out of the working class movement. The Bustamante Industrial Trade Union (BITU) and the National Workers' Union (NWU) are affiliated to the Jamaica Labour Party (JLP) and the People's National Party (PNP) respectively. Recently, the University and Allied Workers' Union (UAWU) affiliated with the Workers' Party of Jamaica (WPJ). Most other unions have their political and ideological stance - though very muted. Some workers, out of loyalty will join the union affiliated to the party of their choice, at the same time becoming members of other trade unions, if they perceive that union or certain officers in that union as being more effective in pursuing their various causes. 83

90 LABOUR RELATIONS IN THE CARIBBEAN REGION Although there is some shifting of membership from one workers' organisation to another, the total union membership has remained fairly stable for most of the sectors of organised labour. Three prominent exceptions are the public sector and the bauxite and aluminium industry, where restructuring and redundancies have hurt the unions operating in these highly unionised sectors, and the garment manufacturing sector, where the long-established factories have remained organised. In addition, the free zone manufacturers with a total workforce of approximately 16,000 are in the process of being organised by the major unions. The high incidence of "wildcat striking" - where union delegates and members take industrial action without prior knowledge and approval of their union officers - is largely attributable to the intense competition among the unions for members, which induces some union officers, trying desperately to retain popularity with their members, to tolerate and even tacitly condone indiscipline. There is a fear that any attempt to discipline these workers will drive them into the arms of another union. A negative effect of trade union rivalry as prevalent in Jamaica is a certain disharmony in industrial relations. The positive side of the coin - as the unions are quick to point out - is that rivalry keeps the union officers on their toes, thereby guaranteeing a high level of trade union representation. It is essential to note, however, that notwithstanding this rivalry, there has been a tradition of co-operation and support within the Jamaica trade union movement. The Joint Trade Union Research Development Centre (JTURDC) to which the major unions are connected and which rotates the Chairmanship annually among the BITU, NWU, TUC and the Jamaica Association of Local Government Officers (JALGO) crystallises this co-operation. It is a sign of the high level of development and sophistication of the Jamaica trade union movement, that while being co-operative and supportive of each other, the trade unions constantly endeavour to attract each other's members. Recognition of trade unions The right of a worker to join the trade union of his choice has long been recognised by law, and the right of a trade union to represent workers is enshrined in the Labour Relations and Industrial Disputes Act (LRIDA). This right is largely recognised and honoured by unions and employers. There are, unfortunately, a few employers who short-sightedly resist what they refer to as the intrusion of the unions. Because of the laws, these employers do not openly resist the unions but rather try to circumvent and manipulate the poll-taking procedure, e.g. by not co-operating with the Ministry of Labour in the processing of the union's claim. Employers have also been known to terminate the employment of workers who are deemed to be important in the union's efforts to organise the workplace. It is the Ministry of Labour's function to investigate and, if necessary, report to the Director of Public Prosecution who determines whether or not a case can be made against the employer for union-busting - which is an illegal practice. 84

91 JAMAICA: A GOVERNMENT VIEW Employers' associations As of 1986 there were seven active employers' associations registered with the Ministry of Labour. Among the active ones are the Shippers Association of Jamaica (SAJ), the Master Builders Association (MBA), the Sugar Producers Federation (SPF), the Jamaica Gasolene Retailers' Association (JGRA) and the Jamaica Employers Federation (JEF). The JEF differs from the others in that it is not an association of employers engaged in similar areas of activity. Rather, it is an umbrella organisation for employers, per se, and it is also a registered trade union. The JEF does not negotiate directly on behalf of any employer or group of employers; instead, it gives support to its members with advice and training. Although there are minor differences between associations, the basic structure is similar: there is usually a body that meets regularly (in addition to irregular meetings when necessary) and which elects (on the principle of one employers' organisation one vote) an executive body annually. There is usually a permanent office with a directorate and a secretariat. The employers' association's role is to represent its members collectively or individually in matters of industrial relations and to provide information, advice and technical assistance in this area. In so doing, they help their members to define proper industrial relations and to determine their behaviour vis-à-vis trade unions. It has been established that employers who belong to an association are less prone to anti-worker behaviour and more willing to accept and work with trade unions. Of course, they also provide the individual member in any dispute he may have with the unions with the strength that comes from unity. The associations also give their members a united and powerful voice in matters relevant to them such as the drafting of labour legislation affecting their particular industry. The JEF is the umbrella employers' organisation which interacts with the trade union movement, the Government and foreign labour organisations. It is a member on the tripartite team which represents Jamaica annually at the International Labour Conference. The JEF has made significant contributions to the development of sophisticated industrial relations which have proven fairly successful. Over the long run, employers' associations have performed credibly, not only in representing management rights and interests, but as partners in a tripartite setting with responsibilities for the Jamaican industrial relations system. A positive side-effect of employers' associations is that when an industry-wide agreement is reached, it precludes union officers from using a settlement they may have otherwise reached with a member of the group to influence workers at another establishment within the group. Hence, aggressive competition and the concomitant negative aspects are diffused. Collective bargaining As was indicated earlier, the employers' association is the counterpart to industry or craft unions in that its members come from employers in the same sphere of activity. However, in Jamaica, where the major unions are general workers' union, except in the earlier days of the BITU and the NWU, there has never been a complete 85

92 LABOUR RELATIONS IN THE CARIBBEAN REGION dominance of any industry by any single trade union. Except when individual companies were involved, employers have been represented through the single voice of their association, while the workers in these industries have gone along with joint trade union representation, with two or more unions involved. This situation affords the unions a rare occasion to co-operate fully at the workplace. There is also a forum for joint consultations between employers' associations and trade unions. These are the joint industrial councils (JIC). They comprise executive members of employers' associations and officers from the unions concerned. The chairmanship may be rotated among the members of the council. There are a number of JICs, such as in the Building and Construction Industry, which comprise representatives of the Master Builders Association of Jamaica (the employers' association) and the BITU, NWU and TUC representing workers. There are employers who are not members of an association and therefore have to negotiate for themselves. These are the majority by far. The phenomenon of joint trade union representation is absent in this area of collective bargaining. The Government, as the employer, does not involve itself in polls determining bargaining rights, but instead it recognises and negotiates with every trade union singly or severally which can prove that it has members among the relevant group or groups of government workers. Bargaining in the private sector begins when the union serves a claim, covering terms and conditions of employment on the employer. The employer responds usually rejecting some or all of the union's claims. The parties then meet to negotiate. By the end of the negotiations - sometimes weeks or months after the start - the parties more often than not find a middle ground of agreement. However, there are times when the gap between the respective positions of the parties is very wide and concerns issues which are not on the agenda. These "negotiations" are usually difficult to reconcile, and often bog down or erupt into disastrous industrial action. This does not mean that failure is always due to the fact that the parties have not been conscientious and honest in their efforts. In most instances, the difficulty of the issue under negotiation may defy the best efforts of all concerned. However, there are few (but still too many) occasions when the negotiations are mere rituals utilised by union and employer to achieve other ends. The union officer will use the meeting as a forum for grandstanding, impressing the workers with his "brilliance", or militancy, or he may just use the collective bargaining process to redress some real or imagined injustice by the employer. The employer may use the occasion to belittle the ability of the union officer, or impress on the workers his power or his right to "manage" his property as he sees fit. In general, however, collective bargaining can be a creative and dynamic element of industrial relations in the private sector. Bargaining may cover every imaginable area of worker-management activity stretching from workers' remuneration and working conditions to management rights, from production to pension. Collective agreements are binding on both parties. Occasionally, there are limitations placed on the bargaining process by the Government. These take the form of pay guide-lines and are usually part of an income policy. The guide-lines prescribe limits as to salary increases with the exception of 86

93 JAMAICA: A GOVERNMENT VIEW reimbursables and incentive allowances for productivity improvements. The parties are allowed leeway within the guide-line figure. Traditionally, the Jamaican worker has tended to opt for monetary rather than non-monetary compensation. The collective bargaining process shows that unions mostly treat non-monetary items as "throw-aways" or bargaining points. In recent times, enlightened trade unions have tried to persuade workers to accept incentive allowances for productivity improvements in addition to basic pay with limited success. Negotiation in the public service is carried out by the Government through the Ministry of the Public Service which receives claims on behalf of the workers from the general unions organising in the public sector and it invites them to a meeting. At this meeting, the Government's counter proposals are communicated to the trade unionists. If the trade unions reject any or all of the Government's proposals, other meetings are held. Finally, after considering the budgetary constraints and consulting with the unions, the Government, as employer, informs the unions as to its final position. This is then ratified by Cabinet and Parliament. Trends in labour disputes The Industrial Disputes Tribunal (IDT) handles by far the majority of disputes which are not settled by conciliation. The workload is not burdensome relative to the staff available. The IDT's awards can only be overturned in a court of law on a point of law. There have been some unfortunate instances when this has happened. However, with more attention to detail and expert legal support, these incidences have been reduced to a minimum. The role of the State in industrial relations The State has as a primary function the common good of society. Because a good industrial relations climate is essential to the proper functioning of the society and to the economic development of the country, it is necessary for the State to play a role in the industrial relations system. This role does not require the State to completely control and regiment the system. For an industrial relations system to be fully effective, there must be collective bargaining and a certain amount of freedom of action. The State's role is to ensure that everyone involved in the process can exercise his democratic rights and achieve self-fulfilment within the framework of law and order and in consideration for the country as a whole. Basically, there are three strategies utilised by the State in performing its role: legislation, advice and direction and monitoring. A body of labour legislation has been enacted by successive governments and this has served the industrial relations process admirably. Legislation covers all areas of industrial relations and is reviewed and amended when necessary. Some of the more important ones are the Labour Relations and Industrial Disputes Act (LRIDA), the Employment (Termination and Redundancy) Act (ETRP), the Maternity Leave with Pay Act and the Minimum Wage Act. 87

94 LABOUR RELATIONS IN THE CARIBBEAN REGION The labour laws set the ground rules for the proper conduct of industrial relations. They define certain basic rights and obligations of both management and workers. Statutory minimum conditions of employment are set so that non-unionised workers are not disadvantaged vis-à-vis their unionised colleagues. Management and unions may negotiate improvements in excess of the level laid down in legislation. The Ministry of Labour is providing advice and direction. Unions and management call on the Ministry freely and regularly and non-unionised workers and their employers are constantly instructed as to the proper conduct of industrial relations at the workplace. In a more specific sense, the conciliation branch of the Ministry of Labour serves good industrial relations by advising and directing disputants towards amicable settlements. Foreign employers are advised and directed as to how to deal with the technicalities and complexities of the Jamaican industrial relations system. The State through the Pay and Conditions of Employment Branch of the Ministry of Labour monitors the situation at establishments where non-unionised workers are involved as to whether good industrial relations are practised in respect of conditions of employment. This is usually done through inspection visits. The Ministry of Labour also monitors industrial relations trends and provides statistical services on industrial actions, collective agreements, etc. Industrial relations undoubtedly play an important part in nation-building and the positive impact of the work performed by the Ministry of Labour must be acknowledged. Industrial peace means improved productivity which is of paramount importance to the economic well-being of the nation. 88

95 Labour relations in Jamaica: An employers' view S.G. Kirkaldy, Executive Director, Jamaica Employers' Federation The organisation representing employers in Jamaica in the labour relations field is the Jamaica Employers' Federation. JEF was established in 1958 and was registered as a trade union (employers) under the Trade Union Act of It was established to promote the interests of employers in all matters affecting relations between employers and employees. It operates under a council, an executive committee and a secretariat. One of the major problems affecting the organisation is the attitude of the top echelon of management, namely directors, general managers and financial controllers who apparently do not place correct weighting on industrial relations, being mindful of it largely when industrial action interferes with production and sales targets. As a result, the business of the Federation is left largely to industrial relations and human resource managers who attend meetings. There are exceptions, of course. Whilst these have exhibited keen interest in the work of the Federation, it could be vastly strengthened and its influence increased were more of the top echelon to take an active part in its operations and direction. Some companies are reluctant to join the Federation for fear of having to implement progressive industrial relations policies (including the right of association) which receives the support of the JEF. Another membership problem is the proliferation of trade associations, each with its sectional interest, and which compete for funds available for membership fees. An employers' association survives to the extent that it meets the requirements for service and one such service relates to management training. Here again, there are numerous bodies offering a wide range of training programmes backed by the use of audio-visual aids and foreign presenters thus lessening participation in the Federation's training programmes. We have met this challenge somewhat by widening the training syllabus to incorporate not only the traditional industrial relations subjects, but such programmes as secretarial courses, planning for retirement, etc., and promoting seminars on issues of national importance. Decision-making is now done on a systematic basis requiring extensive data and unless an employers' organisation can meet the needs of its membership in this area, its usefulness is questioned. Here, despite a shortage of funds, JEF has had to employ the services of a senior research officer and one of our first objectives was to conduct a systematic and comprehensive wage, salary and fringe benefits survey (1987) which has been widely acclaimed. 89

96 LABOUR RELATIONS IN THE CARIBBEAN REGION Collective bargaining Jamaica supports the concept of collective bargaining and the right of association. It has ratified ILO Conventions Nos. 87 and 98. Under the Labour Relations and Industrial Disputes Act (LRIDA), 1975, an employer is required to grant bargaining rights to a trade union which secures a simple majority of the votes of employees eligible to vote in a representational ballot. The Ministry of Labour conducts the ballot provided it is satisfied that the claimant union has made out a prima facie case of representation following a comparison of the audited lists submitted by the union of its membership in the establishment with the list of employees submitted by the employer. Bargaining units are either settled by the parties at the Ministry before balloting or referred to the Industrial Disputes Tribunal (IDT) established under LRIDA for determination. It is usual for management personnel to be in a separate bargaining unit although the Act does not specifically require this. The regulations under the Act as well as the Labour Relations Code give guidance as to the composition of the bargaining unit. Following the ballot and the filing of claims, negotiations commence at the level of the undertaking and failing agreement, either party may request the intervention of the Ministry of Labour's conciliation services. If there is failure to agree at that level, three options lie to the parties: (1) they may jointly request a reference to the IDT; (2) they may refer the dispute to voluntary arbitration if called for in the collective agreement (rarely used since LRIDA); and (3) the Minister may unilaterally refer the dispute to the IDT. All types of disputes are referable to the IDT through the Minister except those in the public service arising out of disciplinary issues and appointments. There is also no balloting in the pubic service. The award handed down by the IDT is legally binding, except on a point of law. The unions and workers have consistently voiced the opinion and given the impression that a large number of awards have been challenged in the courts, whereas only a small percentage have and, whilst we wish to keep the courts out of industrial relations as much as possible, there are times when questions of law need to be decided on in order to set certain guide-lines in the working relationship. The chairman and the deputy chairmen of the IDT are appointed by the Minister without consultation, but the employers' and workers' representatives are appointed following nominations by the unions and JEF. Whilst plant bargaining predominates, there are a number of industries where joint industrial councils (JICs) operate. These JICs are established in industries where employers and workers are well organised, e.g. on the waterfront, and they negotiate terms and conditions of employment on an industry-wide basis. Settlements of disputes at the JIC follow the pattern set out above. Collective agreements which are usually of two years' duration are not legally binding in Jamaica and it is the view of the writer that they should not be, as this would tend to be injurious to relations at the workplace and with the unions if either party has to sue the other for alleged breaches. Disputes over departures from the provisions of a collective agreement are treated in like manner as other disputes. The writer is 90

97 JAMAICA: AN EMPLOYERS' VIEW of the view, however, that industrial action should be prohibited over "rights" disputes which should be referred to the IDT if unsettled through negotiation. Penalties should not, however, be a recourse to litigation. Collective agreements are required by law to be filed with the Ministry of Labour within 14 days of being made. Whilst there is no legal right to strike, there is freedom to do so except in those services which are listed in the Act as being essential, e.g. water. Some of the services listed are, in my view, not essential, e.g. air transport, although of national importance and could be dealt with under section 10 which specifically provides for the resolution of disputes which gravely affect the national interest. Labour disputes The main causes of disputes reported to the Ministry of Labour are attributable to wages and conditions of employment, dismissals and suspensions and representational rights. A brief look at the records show that for 1987, wages and conditions of employment accounted for 65, dismissals and suspension for 138 and representational rights for 66 out of a total of 370 disputes reported. The root cause of these disputes is attributable to a number of reasons. Obviously, there is the desire of workers for a larger share of the cake in a situation of high cost of living. However, a determined attempt has been made by the Government to address inflation and during the calendar year 1987, the rate was reduced from 10.4 to 8.4 per cent due to fiscal policies introduced, including wage guide-lines. It is expected that the rate will be lower during Other factors are the indiscipline of the workforce and a less than satisfactory level of good human relations and personnel management practices by a number of employers. Disputes arising out of disciplinary action, if unresolved, are referred to the IDT which is required to order reinstatement of workers found to have been unjustifiably dismissed. Whilst the worker can opt for compensation instead of reinstatement, the employer has no option in the matter. One reason for the number of representational disputes is the lack of a central trade union organisation which could establish guide-lines for unions vying for membership. Workers have been playing one union against the other whenever they feel that the incumbent union is not vigorously pursuing their claims. Quite a number of representational disputes arise over first-time claims for recognition. One area where improvement can be shown is in the servicing of contracts. It is the view that in many instances the trade union official is seen at the plant only when the contract is being negotiated or when a dispute arises, so that the delegates are often left to deal with issues and there is a feeling that their ability to deal objectively with many issues is questionable. Under LRIDA, a collective agreement is deemed to include a clause setting out the procedures for the resolution of disputes. Most agreements do have a grievance procedure ending with arbitration. 91

98 LABOUR RELATIONS IN THE CARIBBEAN REGION Schemes for workers' participation in decision-making in the enterprise Workers' participation is not a common practice in Jamaica. In the seventies, an attempt was made to introduce such a system culminating in workers on the boards of directors. This did not work out for a number of reasons including the fact that it was seen as a political imposition and, as such, did not receive the support of employers and all the trade unions. The monitoring unit in the Ministry of Labour lacked the expertise to promote the programme and did not have the trust and confidence of employers. Naturally, there was reluctance on the part of the employers to relinquish or share the decision-making process. Very few cases therefore exist today of that type of participation, although there is a measure of joint consultation with decision-making remaining in the hands of the employer in such areas as safety, health and welfare. It is my view that co-operation could be enhanced by a greater measure of industrial democracy at the workplace in Jamaica. Role of the State The State's role in industrial relations takes the following forms: 1. Conciliation: This is a welcome service, but the general feeling is that its quality needs to be upgraded through proper selection and training if all the conciliators are to have the confidence and respect of employers and trade unions. The Ministry still operates on the traditional role where it intervenes when called upon after the parties are locked in combat and, in many instances, have taken firm position. A preventive approach is called for with proper monitoring (without undue interference) of agreements to ensure that negotiations begin on time and the offering of timely advice before the parties take firm positions, a sort of watch-dog approach. 2. Wage guide-lines: Wage guide-lines were first introduced in 1975 and continued until 1980 and were reintroduced in January The object was to curtail the inflationary trends in keeping with the Government's fiscal policy agreement with the IMF. The alternative was the devaluation of the Jamaican dollar and higher inflation. In return, the Government promised to reduce inflation to approximately 7 per cent which would be below the 10 per cent wage increase allowed. The guide-lines which do not have the force of law have largely been accepted by the trade unions, although there have been pockets of resistance and attempts to circumvent them by asking for the upgrading of certain cash disbursements not covered by the guide-lines, e.g. laundry and uniform allowances. I am afraid wage guide-lines will be with us for some time to come, but some thought may have to be given to the allocation of "profits" from those with the ability to pay in the interests of continuing worker co-operation. 3. Powers of the Minister: By an amendment of LRIDA in 1978 and again in 1986, the Minister was given the power to unilaterally refer a dispute to the IDT if in his opinion the dispute required expeditious settlement and the parties could not settle. The amendment has the effect of emasculating the conciliation process and inhibiting 92

99 JAMAICA: AN EMPLOYERS' VIEW free collective bargaining, the parties in many instances adopting a position with an eye to arbitration. In 1986, the Act was also amended to give the Minister the power to seek an injunction from the courts against industrial action in the national interest. This power is criticised by the unions but it takes care of damaging industrial action arising from issues which do not fall within the definition of an industrial dispute and thus referable to the IDT which has the power to order a work resumption. 4. Consultation: There is a Labour Advisory Council comprised of representatives from unions and employers which was established to advise the Minister, but there has, regrettably, been no eagerness to consult. 93

100 Labour relations in Saint Lucia: A joint country report S. Vincent, Acting Labour Commissioner; F. Louisy, Director, Saint Lucia Employers' Federation; G. Louis, President, Saint Lucia, Workers' Union Saint Lucia's Constitution guarantees freedom of association, which includes the freedom to join trade unions of their choice. The Trade Unions and Trade Disputes Ordinance, 1959, No. 19 of 1959 provides for the registration of trade unions. Employers' association The Saint Lucia Employers Federation was established on 30 September 1961 and was registered in accordance with the provisions of the Trade Unions and Trade Disputes Ordinance, 1959, No. 19 of The Federation consists of: (i) ordinary members who are owners or lessees of agricultural properties, owners of commercial or other businesses or industries employing not less than three workers on a permanent basis. These members may be individuals, firms or companies; (ii) associate members are managers and departmental heads whose work includes the supervision of workers whose employers are members of the Federation; and (iii) affiliated members which are associations or groups interested in commerce, industry or agriculture whether as marketing or industrial organisations. Membership is divided into: (i) the agricultural group; (ii) the commercial group; (iii) the industrial group; and (iv) the shipping group. Each member is, on admission, alloted to a group. Members may belong to more than one group. The structure has proven useful as it embraces the major areas of enterprise and entrepreneurship in the State. At the time of its establishment, 11 persons were involved, the majority being Agriculturists/Planters. It was envisaged, at the time of registration, that every effort would be made to obtain a membership of 500. Today, 17 years after the establishment of the Federation, the membership stands at 90. This represents a problem. The development may be explained partly by referring to the statement made by the President, Mr. George Noon at the 25th Annual General Meeting held at the Green Parrot on Tuesday, 21 July The President confirmed that the climate in industrial relations had remained calm over the previous year and that negotiations during the year had all been concluded satisfactorily. While this might appear a reason for a little self-congratulations, he warned that the Federation and its members should beware of becoming complacent. He advised that when all is quiet in industrial relations the Federation does not prosper - members are slow and even reluctant to pay dues, attend meetings and being in new companies and enterprises. It was a sad fact that the Federation was stronger and members were more attentive to the Federation in times of labour agitation and unrest. He stressed the importance of the preventive role of the Federation and the need to be active in our common interests 94

101 SAINT LUCIA: A JOINT COUNTRY REPORT as a strong and unified federation could influence both the Government of the day and the unions in keeping the climate calm and stable. The role of the Federation is primarily, in the words of the Memorandum of Association, to promote sympathetic understanding and good feelings between employers, and between employers and employees, and to promote the cause of good industrial relations in the island of Saint Lucia. The Federation provides members with advice, guidance and information on all aspects of industrial relations. More particularly it provides members with advice on specific questions involving the interpretation and administration of labour legislation, on collective bargaining practices and the contents of collective agreements entered into between members and trade unions. It will conduct negotiations with unions when required to do so. In the field of training, it organises courses and seminars for managerial and supervisory personnel and for employees with a view to assisting them to improve their standard of service and their ability to handle labour problems in the workplace. This role is noble, desirable, essential and necessary for industrial peace and tranquility in the interest of socio-economic progress of a small island developing State such as Saint Lucia. Trade unions At present, there are four active general trade unions in Saint Lucia and three public service unions covering teachers, nurses and civil servants. Collective bargaining practices In Saint Lucia, any trade union is legally entitled to seek to represent workers in any enterprise. A union is also entitled to seek to negotiate on behalf of its members better wages and conditions of service, once it has satisfied certain conditions and has been granted recognition by the employer. However, whilst the law provides for registration of trade unions, it falls short of making it obligatory for the employer to grant recognition. Granting recognition is based on a 50 per cent plus one representation of the workforce in the plant. Minimum wages exist by law, custom and practice in all areas of employment. One of the principal aims of trade unions is to strive to obtain increased wages and better fringe benefits for members. In Saint Lucia, this activity takes place through the collective bargaining machinery. Essentially, it is carried out as follows: (1) the parties - the union and the employer - exchange proposals; (2) they meet at domestic level to ascertain whether they can agree to implement a collective agreement on the basis of the proposals in hand; (3) there are cases where agreement is not possible. The parties write to the Labour Department for assistance which takes the form of conciliation. The purpose of this exercise is to help the parties to resolve their differences and to come to a collective agreement; (4) in cases where conciliation fails, the parties can call upon the good offices of the Minister of Labour to mediate. If and when all attempts at conciliation and mediation fails, the parties will agree to a tribunal 95

102 LABOUR RELATIONS IN THE CARIBBEAN REGION appropriately constituted and set up; in cases where that particular sector falls within the purview of the Essential Services Act, the decision of the tribunal is final and binding on both parties. The Federation supports collective bargaining. It is a voluntary process and we think it is the proper and the best machinery for the settlement of issues between unions and employers. There are some 20 pieces of legislation governing industrial relations in Saint Lucia. In 1976, a Labour Code was prepared which revised most of the various existing pieces of legislation. To date, this document has not reached Parliament. It is felt in some quarters that the Code was too progressive in certain respects and would scare potential investors from Saint Lucia. The draft Code incorporates a section dealing with compulsory recognition. One of the adverse labour practices developing in Saint Lucia is the use of fixed-term contracts. Workers employed in such a fashion are deprived of the benefits which established staff enjoy. Labour disputes Following recent world-wide financial problems, a distinct trend developed on the part of the trade unions to demand substantial wage increases to cushion the effect of inflation experienced by workers. Sixty per cent wage demands were the order of the day and this created problems - resulting in the reduction of the labour force in some instances. In recent times, however, because of certain changes in the employment situation there has been a reasonable decline in the level of wage demands from unions, giving way to settlement of 10 per cent on the average. It is also noticeable that some trade unions become more vociferous during periods preceding general elections. The strategy, or hope, is that the Government of the day will be more inclined to encourage negotiations in all sectors of the economy to try to satisfy workers' demands. All employers would prefer to negotiate a collective agreement over a three-year period. Most unions rather opt for two-year agreements. In order to maintain industrial peace, most employers have had to go along with the reduction in the length of collective agreements from three to two years. At present, there are very few three-year agreements. As the economy grows, more enterprises are established and more workers become unionised. There is a tendency for negotiations to spread over long periods. Sometimes negotiations get bogged down due to intransigence on the part of the parties. Employers usually wish to speed up the negotiation process to eliminate the need for retroactive payment. A union may have membership in a wide range of endeavours and wish to give equal consideration to all its members. The result often is that talks have to be postponed several times. Unions generally do not seem to be too disturbed about prolonged negotiations since they press for retroactive pay at the time of settlement. There is a new trend to approach the bargaining table with an unclear mandate from their principals. However, it would appear necessary that negotiating teams on both sides obtain clear mandates from their parent bodies on all points, on entering 96

103 SAINT LUCIA: AIOINT COUNTRY REPORT negotiations, during negotiations and before finalising the various issues of the proposed collective agreement. Once agreement has been reached by the negotiating teams, the general membership of the union or the directors of the company should not attempt to modify or reivew the conclusions reached by their respective teams. There must be confidentiality during the negotiating period. Press releases by the parties during the process are not helpful, to say the least. Different versions divulged to the general public do not engender good will which is so necessary to an amicable settlement. The trend is for unions to submit topics or headings rather than precise claims for improved conditions. As a result, it is impossible to cost or even estimate the financial implications of their proposals. Schemes for workers' participation in decision-making in the enterprise In some collective agreements, there is provision for work committees to deal with certain matters, for example, welfare and safety in the workplace. Some employers are beginning to feel more at ease with their workers to review and decide on certain major areas in the workplace. It is our view that, as confidence develops between workers and employers, workers will be given more opportunity for participation in other areas of the decision-making process of the enterprise. There is greater worker participation at the managerial and supervisory levels. More nationals are at present involved in the decision-making process of firms and companies than ever before. Another important area of worker participation in the decision-making process is for the national insurance scheme. There are government, employers' and workers' representatives in the board of directors. And, of course, through the collective bargaining process, workers play a vital role. The role of the State in industrial relations In the colonial days, when the State was concerned mainly with law and order, it took a low profile in industrial relations. When things got out of hand and strikes occurred with violence, the State moved in to maintain law and order. With the advent of universal adult suffrage, statehood in association with Great Britain and Saint Lucia emerging as a free, independent and sovereign country, industrial relations have taken a new dimension. The State considers that it has a role to play in socio-economic development and is therefore interested in securing and maintaining a climate of peace and tranquillity in all areas of human endeavour. In Saint Lucia today, the State plays a greater role than ever before in the social and economic life of the island. The public sector has expanded by the creation of public corporations and statutory authorities and new industries have been established which are vital to economic development. Public utilities such as WASA, Lucelec and Cable and Wireless, can no longer review their rates without the approval of the Public Utilities Commission. This mechanism gives workers and members of 97

104 LABOUR RELA TIONS IN THE CARIBBEAN REGION the community an opportunity to comment on and to participate in the decision-making process of those companies as far as rates are concerned. The State has a say in the policy of these statutory bodies. In recent times, following the recommendations of a Review Committee on Salaries and Structure of the Civil Service, there is a trend for terms and conditions of service of all workers in the public sector to come under closer scrutiny of the central Government. A new development in industrial relations is that when the good offices of the Minister of Labour fail to bring about mediation, the matter may be referred to a Cabinet Subcommittee on Industrial Relations instead of going to a tribunal. With a view to keeping disruption in economic activity at the minimum level and to enhance industrial relations, the Government proposed some time ago the establishment of a tripartite committee. It appears to be the view of the Government that continuous dialogue through tripartism will help to maintain a healthy industrial climate which is so essential - asine qua non - for rapid socio-economic development with a view to providing goods and services at affordable prices for the common good of all. It is the opinion of all concerned that tripartism, properly understood and effectively implemented, can provide the common ground needed to enhance socio-economic progress for a better quality of life for all in this young independent nation with a fragile economy and scarce natural resources. It is clear from recent incidents that the people of the country have begun to understand and to appreciate that prevention is better than cure, not only in the field of health, but equally important in the social and economic life of the nation. If this trend continues, then surely the potential is there for peaceful economic growth. In conclusion, unions must not continue to see themselves as only bread and butter winners for workers. They have to see themselves as agents for overall economic development. They should become more active in health schemes, housing projects, education and training for development. The employers, too, must play their part and step up investment for the creation of more jobs. Saint Lucians must realise that they are now a free, independent and sovereign people in a small island developing State with limited natural resources. It is therefore essential for the Government, employers and trade unions to find common ground to successfully meet the rising expectations of our people. We think tripartism may provide common ground. 98

105 Labour relations in Trinidad and Tobago: A government view G. Ramsubeik, Senior Labour Relations Officer, Ministry of Energy, Labour, Employment and Manpower Resources The system of labour relations in Trinidad and Tobago is fundamentally similar to that of other countries in the Caribbean which have a modern market economy. The three key actors - workers and their organisation, employers and their organisation, and the Government - act and react within their prescribed roles, creating a system which is regulated by rules, procedures and laws. The pillars of the labour relations system of Trinidad and Tobago are to be found, mainly in the Trade Union Act, 1950 (Revised), the Trade Dispute and Protection of Property Act, 1940, the Industrial Relations Act, 1972 and the Retrenchment and Severance Benefits Act, The most important piece is the Industrial Relations Act since it contains procedures for trade union recognition, procedures for reporting trade disputes, procedures for regulating industrial action, dispute settlement machinery and rules on collective bargaining. Trade unions The trade union as an entity is regulated by the Trade Union Act (Revised) 1950, formerly the Trade Union Ordinance, This Act defines all organisations comprising exclusively of workers, employers and trade protection organisations, respectively, as trade unions. The Industrial Relations Act, 1972, defines a trade union as "... an association or organisation registered as a trade union under the Trade Union Ordinance, not being an association or organisation of employers registered as a trade union under this Ordinance". The Trade Union Act requires all trade unions to be registered. Section 10(1) of the said Act states that "... every trade union to which this Act applies shall be registered under this Act". The Trade Union Act also provides that every trade union which is registered under the Act must have a registered office to which all communications and notices may be addressed. A trade union can be registered and afforded statutory recognition with a minimum of seven members. In June 1988, there were 126 trade unions registered under the Trade Union Act. Only 25 of these unions, however, are actively involved in representing workers by way of concluding collective agreements or pursuing disputes on behalf of their membership. There are two central trade union bodies representing labour exclusively. They are the Trinidad and Tobago Labour Congress and the Council of Progressive Trade Unions. They both have local affiliates. The present division in the labour movement into two central bodies occurs along ideological lines. However, continuous and unyielding efforts are being made to have a merger so that there can be one central body to which all trade unions are affiliated. 99

106 LABOUR RELATIONS IN THE CARIBBEAN REGION Trade unions are organised at the national and plant levels. The national unions organise workers across the industries but conclude collective agreements at the plant level only. The national unions represent workers of various firms across various industries. They are generally more professional in their role since their national executives are very often career trade unionists. The national trade unions have executives at the branch level, consisting of a president, a secretary and a shop steward. The structure at the national level includes a president general, a general secretary and a treasurer. There are 41 registered national trade unions. Those unions which are organised at the plant level represent workers only at a single plant and any collective agreement concluded covers workers at that plant only. The structure of such unions includes generally a president, a vice-president, a secretary and a treasurer. These positions of both the national union and the plant-level union are filled by election. Thirty-two plant-level unions are presently registered. Trade union membership Trade union membership is open to all persons who may wish to join. This approach is consistent with ILO Conventions Nos. 87 and 98 which Trinidad and Tobago has ratified. These Conventions have found expression in the Constitution of Trinidad and Tobago and in the Industrial Relations Act, Based on the philosophy of freedom of association and in an environment where there is a multiplicity of trade unions aspriring to represent workers, recognition of a particular trade union by an employer can emerge as a problem between unions as well as a problem for the employer since there can be more than one union seeking to represent workers in a particular enterprise. Accordingly, the Industrial Relations Act contains provisions for compulsory recognition and also an effective mechanism to deal with recognition issues with a view to preventing open industrial conflict where a union is attempting to represent workers collectively, while simultaneously, the employer is averse to the presence of a trade union in the enterprise. The Registration, Recognition and Certification Board, established in 1972 by the Industrial Relations Act, is entrusted with this responsibility of administering recognition. Over the past five years, because of economic decline, there have been mass retrenchment of employees. It was against such a background that the Retrenchment and Severance Benefits Act came into being. This Act has not stemmed the tide of retrenchment but has simply provided a severance benefit formula for the payment of a certain sum to those workers who are retrenched where there is no trade union representation and, consequently, no provision for retrenchment benefit. As a result of the massive retrenchment, both in the private and public sectors, there has been a rapid decline in the trade union membership. It is estimated that 25 per cent of the present labour force is unionised as against 35 per cent prior to the commencement of the wave of retrenchment. 100

107 TRINIDAD AND TOBAGO: A GOVERNMENT VIEW Employers' organisations Countries with well-developed trade unions and a sophisticated industrial relations system such as Trinidad and Tobago will also have well-organised employers' organisations. There are a number of employers' organisations including the Trinidad and Tobago Chamber of Commerce, the Trinidad and Tobago Manufacturers' Association, the Petroleum Dealers' Association and the Employers' Consultative Association. The majority of these associations are primarily concerned with trade and commerce and all such laws pertaining to trade and commerce within and outside Trinidad and Tobago. While they are fully informed about labour laws, they are not primarily preoccupied with the industrial relations system of this country. The Employers' Consultative Association is the only employers' organisation which has expertise and specialised knowledge in industrial relations. Membership in the Employers' Consultative Association is open to all employers. The structure of the Employers' Consultative Association consists of a president, a vice-president and a secretary. These positions are elective and occupied for a period of one year. The affairs of the Association are managed by 14 representatives which are elected from the following groups: (i) two from the group with commercial interests; (ii) one from the group with transport interests (ship, road and air); (iii) one from the group with building and civil engineering interests; (iv) one from the group with printing, publishing and communications interests; (v) two from the group with oil interests; (vi) three from the group with manufacturing interests; (vii) one from the group with agricultural interests; (viii) two from members at large; and (ix) one from the group with banking, finance and insurance interests. The Association provides advice, guidance and consultancy services on all aspects of industrial relations including collective bargaining, to its members and the wider business community. The employers' organisations are ever vigilant and offer advice and proposals to the Government on measures to improve the economy and the industrial relations laws. Indeed, they work together with the labour movement on boards and committees for the well-being of the country. Collective bargaining Collective bargaining is conducted within a legal framework which is enshrined in the Industrial Relations Act, There are important requirements which must be completed prior to Conventions on collective bargaining. These include the certification of the union by the Registration, Recognition and Certification Board as the recognised majority union for a defined bargaining unit in an enterprise. There is also the need for the submission of proposals to the other party by the one initiating negotiations. A copy of the proposals is also to be forwarded to the Ministry of Energy, Labour, Employment and Manpower Resources. Thereafter, parties are expected to meet as often as necessary, in an effort to conclude a collective agreement based on the proposals. Failure of one of the parties to act in good faith and to enter into negotiations for the purpose of collective bargaining constitutes an industrial relations 101

108 LABOUR RELATIONS IN THE CARIBBEAN REGION offence and carries a penalty of $2,000. Negotiations for the conclusion of a collective agreement are limited, in practice, to the level of a single enterprise and do not embrace the entire industry. Hence, collective agreements are concluded for individual firms in an industry and not on an industry-wide basis. Collective agreements are generally for a minimum period of three years and a maximum of five years. In exceptional circumstances, a collective agreement may be concluded for a two-year period. The system of collective bargaining in the private sector is very similar to that in the public sector. Indeed, the legal provisions regulating collective bargaining in both sectors are the same and they are enshrined in the Industrial Relations Act. This Act provides a definition of the term "worker", i.e. of those who benefit from collective bargaining. This definition includes: (a) any person who has entered into or work under a contract with an employer to do any skilled, unskilled, manual, technical, clerical or other work for hire or reward, whether the contract is expressed or implied, oral or in writing, or partly oral and partly in writing, and whether it is a contract of service or apprenticeship or a contract personally to execute any work or labour; (b) any person who by any trade usage or custom or as a result of any established pattern of employment or recruitment of labour in any business or industry is usually employed or usually offers himself for and accepts employment accordingly; or (c) any person who provides services or performs duties for an employer under a labour only contract, and includes - (d) any such persons who - (i) has been dismissed, discharged, retrenched, refused employment, or not employed, whether or not in connection with or in consequence of a dispute; or (ii) whose dismissal, discharge, retrenchment or refusal of employment has led to a dispute; or (e) any such person who has ceased to work as a result of a lock-out or of a strike. It exludes: (a) (b) (c) (d) a public officer, as defined by section 3 of the Constitution; a member of the defence force or any ancillary force or service thereof, or of the police, fire or prison service or of the police service of any municipality, or a person who is employed as a rural constable or estate constable; a member of the teaching service as defined in the Education Act, or is employed in a teaching capacity by a university or other institution of higher learning; a member of the staff and an employer of the Central Bank established under the Central Bank Act; (e) a person who, in the opinion of the Board - (i) is responsible for the formulation of policy in any undertaking or business of the effective control of the whole or any department of any undertaking or business; or 102

109 TRINIDAD AND TOBAGO: A GOVERNMENT VIEW (ii) has an effective voice in the formulation of policy in any undertaking or business; (f) employed in any capacity of a domestic nature, including that of a chauffeur, gardener or handyman in or about a private dwelling house and paid by the householder; (g) an apprentice within the meaning of the Industrial Training Act. Employees falling within the definition of "workers" are to be found in the private sector and in the public sector which comprises state enterprises, quasi-state enterprises and the central Government. Exclusions can be found in both the private and the public sector. The Chief Personnel Officer is deemed to be the employer in the case of the central Government. The Chief Personnel Officer, however, is not the deemed employer in the case of state enterprises. Each state enterprise is the employer of its workers. Nevertheless, during negotiations for a collective agreement between a union and a state enterprise, adequate efforts are made for a co-ordination with the respective ministry under whose responsibility the particular state enterprise falls, so as to ensure that there is uniformity, as far as practical, in the scope and content of collective agreements in the public sector. Collective agreements in Trinidad and Tobago in the public as well as in the private sector would include provisions on bargaining unit, management rights, definitions, hours of work, overtime payments, job security, severance benefits, vacation leave, sick leave, casual leave, leave for trade union business, duration of collective agreements, wages and salaries and cost-of-living allowance. Every collective agreement must also include a grievance procedure for handling trade disputes, and a specific procedure for dealing with issues which may arise from the violation, application and interpretation of a registered, subsisting collective agreement. Moreover, the grievance procedure remains intact even after the expiry of the collective agreement. While collective bargaining in the private sector has always been influenced by the profit margin, more recently, the Government has emphasised that the concept of profit, particularly in income-generating enterprises of the public sector, must guide the nature and extent of the operations of the state enterprise if only to the extent of meeting its recurrent expenditure. During the present economic downturn in Trinidad and Tobago, non-monetary issues are the main areas of settlement during direct bilateral negotiations and even in conciliation carried out by the Ministry of Energy, Labour, Employment and Manpower Resources. These non-monetary matters include management rights, the preamble of a permit, grievance procedures and the duration of agreements. The monetary matters such as wages, salaries, COLA, subsistence allowance often elude a voluntary settlement and find their way to the Industrial Court. 103

110 LABOUR RELA TIONS IN THE CARIBBEAN REGION Labour disputes The Industrial Relations Act defines a trade dispute as -... any dispute between an employer and a worker of that employer or a trade union on behalf of such workers connected with the dismissal, employment, non-employment, suspension from employment, refusal of any such workers, including a dispute connected with the terms and conditions of the employment or labour of any such workers, and the expression also includes a dispute between workers and workers or trade unions on their behalf as to the representation of a worker... The Act specifies that the following do not constitute a trade dispute: (a) any question or difference as to the interpretation or application of - (b) an order or award of the court, or of any provision thereof; or (c) the provision of a registered agreement. In general terms, trade disputes in Trinidad and Tobago are divided into "rights" and "interests" dispute. "Rights" disputes are those which concern dismissals, suspensions, retrenchments, warning letters and similar issues. "Interests" disputes are those which have to do with establishing terms and conditions of employment. Strikes or lock-outs can only be taken with respect to "interests" disputes after the procedure laid down in the Industrial Relations Act has been followed. No strike or lock-out action is permitted regarding a "rights" dispute. Over the past four years, because of the declining buoyancy of the economy, many companies have been forced to contract their operations while others have had to go into receivership and subsequent closure. Resulting from the contractions of operations and closure, thousands of workers have been retrenched. However, since the workers were retrenched and not dismissed, there is a legal obligation on the part of the employer to pay severance benefit in accordance with the Retrenchment and Severance Benefits Act where there is no "recognised majority union". Where a "recognised majority union" exists and a collective agreement applies, the employer is required to pay severance payment in accordance with the terms of the agreement. In many instances, employers have expressed their inability to pay severance benefit especially where the organisation has gone into receivership, or has terminated its activities. Consequently, many trade disputes reached the Minister of Labour and eventually the Industrial Court concerning failure on the part of the employer to pay severance benefits. Similarly, many employers, in an attempt to reduce their labour force and to avoid the obligation to pay severance payment in the event of retrenchment because of redundancy, are apparently dismissing workers for frivolous reasons hoping that any dispute arising from the dismissal would lead to a financial settlement below the amount due as severance pay. Indeed, against the background of receivership and closure, many such disputes are being resolved on a financial basis much below the amount that would have been due as severance pay because of fear by both workers and unions that the company may go into receivership or close down entailing as a consequence that the dismissed workers may get nothing. 104

111 TRINIDAD AND TOBAGO: A GOVERNMENT VIEW Workers' participation Over the past decade, safety committees and training committees have been appearing in many collective agreements. These committees are permanent and they are responsible for safety and training programmes. These committees are comprised of workers' and management's representatives. As a consequence of the acquiring, government controlling interests in numerous enterprises, representatives of labour, business and the Government, are represented on the boards of these companies. The concept of tripartism also includes the structure of institutions such as the Industrial Court, the Registration, Recognition and Certification Board, the National Insurance Board and some other bodies. Today, workers' participation is a common feature on the boards of some 60 state enterprises. In the private sector, the concept is slowly gaining recognition. The private sector continues to hold the view that decision-making in the enterprise is exclusively management's prerogatives. The Government has been complaining of the poor performance of state enterprises. It is hoped that workers' participation at the level of the boards helps state enterprises to escape from the doldrums of economic chaos to bask in the sunshine of economic prosperity. The role of the State in industrial relations The State recognises that an appropriate industrial relations system is a vehicle for economic development and growth. Hence, it has enacted legislation to assist in establishing such a system. Accordingly, the State has created necessary infrastructures such as the Registration, Recognition and Certification Board, the Industrial Court, the Trade Union Division and conciliatory machinery. The Trade Union Division and the conciliation services are part of the Ministry of Energy, Labour, Employment and Manpower Resources. All these institutions are working separately and yet complementing the industrial relations system to ensure a minimum of conflict between labour and management. In addition to its regulatory functions prescribed through legislation and these institutions, the State has further institutionalised the role of the unions and employers by making them jointly an integral part of the decision-making process in the management structure of many of the state enterprises. Furthermore, on the Joint Consultative Council and the National Planning Commission, two important consultative agencies of the Government, there are representatives of both labour and management making their contributions on the basis of their specific interest position towards the socio-economic uplift of Trinidad and Tobago. No doubt, the expectation of the Government is that bringing the two major interest groups together in a forum of national importance might reduce their adversarial posture and eventually give way to co-operation, for the good of the many. The role of the State in the industrial relations system is therefore primarily regulatory. In pursuing this course the State has provided institutions which foster the growth of trade unions while at the same time restricting overt conflict between labour 105

112 LABOUR RELA TJONS IN THE CARIBBEAN REGION and management with a view to preventing any escalation, which if left unchecked, could be detrimental to the economic prosperity of the nation. Laissez-faire in industrial relations is a thing of the past. Frequent industrial action, indiscriminately undertaken, provoked by genuine labour issues by over-ambitious trade unionists, aspiring politicians or unscrupulous employers which damage the community and the economy, are also a thing of the past. The industrial relations system of Trinidad and Tobago, as that of other countries, ought to satisfy the need for economic development and growth. An industrial relations system, even if it engenders industrial stability, cannot alone achieve economic development. However, if it is not geared to the social, political and economic stage of development of a country, it can result in chaos. No democratic country can presently lay claim of having the ideal industrial relations system where the three actors are working in perfect harmony. Trinidad and Tobago is no exception. It has its fair share of industrial unrest. Nevertheless, it is hoped that until perfection can be achieved, each year will bring greater improvement and sustained industrial peace to this beautiful island in the sun. 106

113 Labour relations in the Caribbean region: Report on the seminar 1 1. The purpose of the seminar was to enable policy makers from governments and employers' and workers' organisations to exchange views and experiences on problems relating to labour relations and to enable them to contribute more effectively to the sound and constructive evolution of labour relations, and labour-relations systems at plant, industry and national levels, in the context of social and economic development. Five major subjects were chosen for the Seminar: the Role and Problems of Trade Unions and Employers' Organisations, Collective Bargaining, the Resolution of Labour Disputes, the Role of Government in Labour Relations, and finally, Workers' Participation. 2. The participants emphasised that labour relations had a direct influence on social and economic development. Good relations between labour and management were a necessary condition for social peace, which was a prerequisite for economic prosperity and stability. It was their experience that social tensions diminished productivity and economic performance. Their negative effects were very rapidly felt in Caribbean countries which were dependent on a limited number of industries, such as tourism, petrochemicals or on exporting a few primary commodities such as bananas. Social peace was also necessary to attract foreign capital and to implement national development plans. These plans were more likely to succeed if the social partners supported them, or at least did not oppose them. 3. Labour-relations policies and practices in most Caribbean countries at the end of the 1980s were developing in an atmosphere of economic instability. Most countries had experienced a major recession with falling income for export commodities, low productivity, soaring prices for imports and accompanied by high unemployment. A sharp reduction in economic growth, together with budget deficits and foreign debt was characteristic for many Island States, which, in addition, were exposed to strong inflationary pressures. Economic hardship was paralleled by formidable social challenges, such as drug problems and a high level of teenage pregnancies. The remedies advocated by international financial institutions included austerity measures which invariably involved social hardship for large segments of the population. Role and problems of trade unions and employers' associations (a) Unions 4. The adverse economic situation prevailing at present represented a major challenge to the trade unions in the Caribbean. Their main task, i.e., to be the collective Summaries provided by Messrs. Werner Blenk, Alan Gladstone, Zin Henry and Astley Leslie constituted a major contribution for this report. 107

114 LABOUR RELATIONS IN THE CARIBBEAN REGION voice of workers, had become much more difficult, and the economic problems facing the territories had changed the environment in which unions had to function. While, in better times, unions could justifiably claim the workers' share of economic prosperity, in the present situation they were put in a defensive position. They had to contend with large-scale redundancies and defend workers' acquired social rights. It was no longer sufficient to put forward demands for the improvement of working conditions but it had become necessary to develop constructive ideas of how to overcome the present crisis. 5. The ability of trade unions to participate effectively in the conduct of industrial relations depended to no small extent on their capability to build-up and maintain a strong membership base. In the post-independence period, membership in trade unions found its level at around 40% of the active labour force. In the same way as in many other countries, membership figures have, with a few exceptions for white-collar employees, declined or come to a standstill in many Caribbean countries. Without attempting to identify all reasons, which varied from country to country, participants referred to the large-scale retrenchment of workers which was a major cause for declining union density rates. Reference was also made to attempts, often by foreign employers, to resist union recognition. The union participants also agreed that the commitment of workers to the union movement would need to be enhanced in the future and that the membership apathy which was widely felt would have to be overcome. Individual union members would have to be encouraged to play a more active role in their union and to develop long-term perspectives as to their place in the union movement. At present, membership was often influenced by short-term considerations: membership figures went up when there was a concrete problem where union backing was mecessary; there was less commitment to the union cause in times of prosperity. 6. Traditionally, trade unions emerged in many Caribbean countries as mass movements, fighting for better social conditions in the context of political independence. This historical situation brought about in many territories the emergence of "blanket unions" covering workers in a variety of industries. Later, when the spectrum of economic activities unfolded, there was also some room for industrial-type unions and a few professional associations. However, these unions tended to broaden their membership basis, so that, in fact, they became again general unions. It was felt by many participants that general unions were better able to respond adequately to the present challenges than smaller unions with a more restricted membership. Larger unions increased the power of collective representation at the bargaining table and, in general gave more weight to the views of workers. A broad membership basis also improved the financial situation of unions. This was particularly important in small Island States. Larger unions could render more and better services to their members and to the community at large, e.g., through creating housing projects, and offering medical services. On the other hand, it was felt by some government representatives that blanket unions, in particular in smaller territories, might become too powerful and distort the balance of forces. Blanket unions may also experience certain difficulties in effectively bringing to bear the interest of their individual members. They had to aggregate highly diverse interests and mould them 108

115 SEMINAR REPORT into common positions to be defended vis-à-vis employers, the government, and the public at large. The broader the membership basis, the more difficult this job became, and the greater was the danger of internal controversies. The presence of general unions also tended to enhance inter-union rivalry, in particular if there were no recognised jurisdictional or sectorial criteria which were respected by all those trying to organise new members in a given territory. A possible consequence was that unions devoted too much of their energy to membership competition at the expense of other activities, thus weakening the labour movement as a whole. 7. A number of participants identified a need for strong, rational and well-conceived trade union centres as a means to accommodate union rivalries that might arise, to prevent membership poaching and to solve any jurisdictional problems that might occur between individual unions. In addition, strong central bodies might be in a better position to discuss and consult with governments and employers on complicated issues of social and economic policy. Such bodies could more easily maintain adequate contacts with political parties and law makers and disseminate union views to the public at large. Other participants remarked that where single central bodies could not be established due to ideological differences between the unions concerned or other compelling reasons, well-conceived regulations to deal with the demarcation problems outlined above might have a similarly beneficial effect. Appropriate rules may further healthy competition between unions and thereby contribute to the effective defense of workers' interest and they could also prevent situations where two unions, under the disguise of a merger, may be tempted to band together to fight a third one. 8. Traditionally, there were strong political and ideological links between unions and political parties. However, after the attainment of basic political objectives, such as independence, in respect of which the unions were deeply involved and after a new generation of trade union leaders had taken office, many unions shifted their main activities towards labour issues proper. A trend had established itself whereby unions in many territories had gained greater independence from political parties in their daily activities. Nevertheless, many unions remained closely related to political life and took positions on national economic and social issues. In some countries such as Barbados, some trade union leaders were at the same time holding political offices. Participants did not agree whether double functions of this kind were entirely desirable. It was pointed out by some that this might lead, in particular in small terrorities, to difficulties in harmonising potentially conflicting interests of workers with those of the society at large. In addition, political considerations may affect the working relationship of political office bearers/unionists with those unions which did not belong to the political spectrum represented by the office holder. Others pointed out that there was no such conflict and that political influence of trade union leaders was in the interest of workers and of the society at large. 9. As regards the legal position of unions, there was a certain dilemma. On the one hand governments wished to maintain a firm political base in the working population, while, on the other hand, it was their responsibility to ensure a certain degree of industrial peace, so as to enhance the smooth operation of the economy, to attract foreign capital and to preserve the political structure in line with the 109

116 LABOUR RELA TIONS IN THE CARIBBEAN REGION development objectives of the country. There was a marked trend in the region away from the principle of voluntary recognition of unions by employers towards recognition on the basis of law. Only a few countries such as Barbados, and Saint Lucia continued to leave recognition to the free interplay of social forces. In these countries voluntary recognition seemed to work well, and consequently no need was felt for leglislative intervention. In particular, in Barbados, the union situation was well-defined and unions were well-entrenched so that no rules appeared necessary. In other countries, it was felt that legal procedures eliminated some of the more negative aspects of union rivalry. (b) Employers'associations 10. In keeping with developments in other countries, there were mainly two kinds of employers' associations to be found in the Caribbean countries. These were chambers of commerce and traditional manufacturers' and producers' associations, which represented the "economic" interests of employers such as trade, taxation and export issues. In addition, there were employers' associations which defended the labour relations interests of their members. However, the delineation between the two categories was far from clear and there were problems of functionally distributing responsibilities between them. Problems arose, for example, as regards membership on boards and other institutions established by governments to carry out tripartite consultations. In Grenada, the Chamber of Commerce was carrying out training activities which had traditionally been the domain of the Grenada employers' association/in practice, there was also a certain competition as regards membership since not all employers wished to belong to both associations. Gradually, the image held in some quarters of employers' associations breaking unions had given way to a more constructive image viewing these associations as an important agent in improving labour relations. It was fair to say that employers' associations were nowadays fully accepted as partners in labour relations, in particular by governments which maintained close contacts with them on questions of economic and social policy. 11. Employers' associations had, generally speaking, three main tasks to fulfil: to act as a pressure group for employer interests, to help with or engage in collective bargaining and to render assistance and consultation and information services. In all these areas, their activities were expanding. The traditional role of providing advice and information to members was becoming more and more difficult in view of the increasing complexity of economic and social phenomena. As an immediate consequence, employers' associations, for example in Guyana, had to take on researchers. In addition to providing advisory services, some associations were also directly involved at the bargaining table. In certain countries, such as for example Saint Lucia, members would have to pay a fee if they wished to be represented by employers' associations at the bargaining table. 12. Employers' associations made continued efforts to broaden their membership basis. Wide-ranging support from the business community was necessary to establish a sufficiently strong representation of employer interests. An important number of enterprises in Caribbean countries had chosen to join employers' 110

117 SEMINAR REPORT associations. They valued, in particular, the collective security afforded by membership as well as the professional defence and promotion of their interest, vis-à-vis the governments, unions, the media, and the public. A further consideration was that employers were at the same time competitors in the product and labour markets and that membership in employers' association helped, under certain circumstances, to decrease unproductive competitive pressures. Where associations bargained for their members and concluded agreements applicable to all of them, cost relevant items, such as wages, were taken out of competition. This tended to channel competition to economically more rewarding areas, such as product quality. 13. However, organisational efforts were made difficult by the diversity of enterprises in the territories. Alongside with small and medium-sized indigenous enterprises, many multinational enterprises had moved into the Islands. The resulting diversity of membership made it particulary difficult to produce a degree of cohesion which was necessary to act effectively as a pressure group. In particular, the interest position of multinational enterprises was in many respects different from the situation of local entrepreneurs. They were not as much a part of the social fabric as local businessmen and tended to act on headquarter rather than on local interests. As a consequence, a significant number of multinational enterprises tended to abstain from membership in employers' associations, while at the same time taking full advantage of concessions granted to them by some governments, including initial periods during which no unionisation efforts would take place, and wage levels below those negotiated for local workers. This was keenly resented by the local business community. Collective bargaining 14. Collective bargaining was a widely accepted procedure in the Caribbean to determine conditions of employment and remained the primary mechanism for the conduct of industrial relations. It was practised in the private sector and also to a certain extent in the public sector. However, in an important number of countries consultative arrangement prevailed in the public sector according to which mutual agreement was not a necessary requisite for the determination of the conditions of employment of public employees. 15. Enterprise or plant level bargaining remained the main form of negotiations in the private sector and para-statal bodies. An exception was Jamaica, where negotiations, in particular in the sugar and shipping industries, took place in joint industrial relations councils. This helped to avoid wage competition at the expense of the workers and reduced the social unrest that may be caused by it. Where collective bargaining occurred in the public service, negotiations were nationwide for certain or all categories of public employees. The resulting uniformity of wages and other conditions of work was beneficial for workers and a stabilising element for fiscal policies since it facilitated the establishment of uniform prices for public services in a given territory. 16. Traditionally, collective agreements were not legally enforceable in most Caribbean countries. They were of course binding in a general sense; it was thought, ill

118 LABOUR RELATIONS IN THE CARIBBEAN REGION however, that the application of legal sanctions was an inappropriate way of giving effect to them. In recent years, a marked trend had developed in certain countries such as Dominica and Guyana to make agreements legally enforceable. In other countries, such as the Bahamas, an agreement may be brought before the Minister of Labour, if there were problems with its application. In these and other countries, it was felt that legal enforceability provided better guarantees for collective agreements to be applied conscientiously by both parties. While most participants regarded enforceable agreements as desirable, certain participants from countries subscribing to voluntarism, pointed out that the purposes of collective bargaining as a continuous dialogue between workers and employers were more likely to be furthered if there was not binding interference by a third party which was not necessarily intimately familiar with the negotiation process. 17. Quite a number of government representatives thought it necessary to provide some ground rules for collective bargaining while leaving the content and conduct of negotiations to the parties. Traditionally, all conditions of employment were in principle negotiable. This included, in particular, wages and fringe benefits. Sometimes controversies occurred as to whether an item was negotiable or not and had to be decided, if necessary, by a test of strength. Adverse economic conditions had considerably affected this general bargaining frame. At present, negotiations often proceeded slowly after an agreement had expired, and much time elapsed without arriving at a new agreement. Controversial issues then had to be referred to dispute settlement procedures, which entailed further delays. In some instances, employers were not at all willing to negotiate improvements, but rather requested that their employees accept a certain deterioration in employment conditions with a view to coping with economic problems and to avoiding further retrenchments. In other words, in some Caribbean countries, just as elsewhere, "concession bargaining" was obtained as a possible remedy for economic difficulties. 18. Government policies had a major impact on collective bargaining. Economic policies could undermine the effectiveness of negotiations. For example, it was mentioned that the devaluation of the local currency imposed considerable strain on the collective bargaining machinery in Trinidad and Tobago. In Jamaica and Dominica, wage guidelines were introduced and collective bargaining could therefore only take place within the context of these guidelines. Another serious impediment to free-collective bargaining was connected with the setting up of free trade zones in quite a number of Caribbean countries. As a rule, in these zones virtually no collective bargaining took place except for certain tripartite procedures to fix minimum wages. 19. The duration of collective agreements was usually two years. Most participants considered this appropriate. Shorter intervals would practically lead to continuous negotiations, whereas longer periods would not offer sufficient flexibility to adapt rapidly to changing economic and social conditions. In principle, the duration of collective agreements was determined in the collective bragaining process itself. In Trinidad and Tobago, there was a legal requirement of three years minimum and five years maximum. 20. In most Caribbean countries the check-off of union dues was a well-established practice. While in most countries check-off provisions were contained 112

119 SEMINAR REPORT in collective agreements, in others, such as Grenada, there was a legal basis for deducting union dues from the salary. An open question was whether all workers were subjet to check-off provisions and whether they could refuse to have deductions made. In principle, only unionised workers were subject to automatic check-off. For example, in Saint Lucia workers who decided to leave a union could contract out of automatic check-off. In quite a number of countries workers who were not members of unions were subject to some sort of fee. This was justified on the consideration that all workers irrespective of union membership benefited from the services, and in particular the collective bargaining efforts, of unions. It was therefore only fair that even those who refused to join a union should pay some sort of "negotiation fee". This was the case, for example, in Antigua. In the Bahamas, the negotiation fee was almost equal to the union membership fee. However, only union members enjoyed the full range of union services, going beyond the negotiation of agreements. Thus, equalising negotiation fees and membership dues provided a certain incentive for workers to join unions. In Jamaica, a worker who refused to pay fees to unions could give the amount in question to charity. The employers' representative of the Bahamas pointed out that there was, from a management viewpoint, a difference between workers who voluntarily supported their union financially and those who were forced to do so. Dispute settlement 21. The traditional common-law attitude towards regulation of industrial relations was one of abstention. Hence, the common-law system prevailing in many Caribbean countries was slow in producing machinery for dispute settlement. However, a tremendous increase of disputes in the wake of economic recession provoked many governments in the region to establish machinery for their settlement. The elaboration of procedures often occurred in a rather haphazard fashion. For example, there was usually no distinction made between various forms of dispute which could be found in practice, except in Trinidad and Tobago. In particular, the differentiation made between "disputes of rights" and "disputes of interest", which was used in many countries to channel disputes to the procedure most suited to their settlement was not well established. In line with this approach, "disputes of rights" would have to be decided by courts and tribunals, whereas economic disputes if not resolved by the parties themselves by negotiation or, through conciliation and arbritation procedures, were susceptible to industrial action. Rights disputes were those arising from the application or interpretation of an existing law, collective agreement or contract of employment, while interest or economic disputes were those arising in connection with collective bargaining, when negotiations for the conclusion, renewal, revision or extension of a collective agreement reached an impasse. 22. The dynamics of collective bargaining implied that negotiations could reach a deadlock and led to a dispute which could not be resolved by continued negotiations carried out by the parties themselves. The most widely accepted device in the Caribbean as elsewhere to overcome stalemate situations of this kind was to involve a third party whose task it was to further the solution of the conflict. Third party interventions usually took the form of conciliation, of mediation, of fact-finding, of 113

120 LABOUR RELATIONS IN THE CARIBBEAN REGION arbitration, of labour court procedures or of a combination of them. Conciliation and mediation were procedures whereby a third party, the concilator or the mediator, provided assistance to the parties by bringing them together, by encouraging them to discuss their differences, by assisting them to find a solution, in certain circumstances by submitting his own proposal for settlement. In arbitration procedures, the third party had a more powerful role: it was empowered to take a decision which disposed of the conflict. 23. The traditional voluntary approach of leaving dispute settlement entirely to workers and employers had come under attack in many Caribbean countries. In considering voluntary arrangements versus state involvement, the majority view was in support of statutory regulation of dispute settlement, since it introduced a measure of authority and certainty which was absent where reliance was placed on purely voluntary arrangements. Attention was however drawn to instances within the region where voluntary arrangements worked satisfactorily without a legislative base. It was strongly felt by a limited number of participants, e.g., from Saint Lucia, that, while there seemed to be merit in a statutory base of dispute settling procedures, yet where the voluntary system worked satisfactorily, it would be unwise to disturb it. Even so, it was generally agreed that perhaps the greatest weakness of the voluntary system was that its success or failure depending largely on the personalities of the principal actors. 24. As regards the nature of disputes, it became apparent that many conflicts were linked to the economic difficulties facing the countries concerned. In some countries, important efforts of rationalisation were made which involved the massive retrenchment of workers and therefore job security had become a major sticking point between trade unions and employers. Representational rights of trade unions were another source of conflict. Statutory provisions on recognition existed for example in Antigua and Barbuda, Bahamas, Dominica, Grenada, Jamaica, Trinidad and Tobago. In the case of Guyana, a trade union recognition bill had been drafted. In all cases, except Antigua and Barbuda, the union must secure the votes of 50% plus one of the number of workers in the bargaining unit. In the case of Antigua and Barbuda, it is 50% plus one of the votes cast by those who voted. It was pointed out that where union membership was the deciding factor, some of the conflicts in this area arose from the difficulty of determining who was a union member in good standing and who would consequently count towards the percentage needed for recognition. The veracity of the union claim was sometimes difficult to check. Except in Trinidad and Tobago, where they are submitted to the Trade Union Registration and Recognition Board, claims for recognition were made to the employer. In only two countries - Barbados and Saint Lucia - trade union recognition disputes were settled on a voluntary basis. However, compliance with statutory rules need not prevent employers from allowing minority unions to represent their members and to accord bargaining rights to a union which represented less than 50% of the employees concerned. 25. At common law, there was no positive right to strike, but there were certain immunities in regard to strike action. Several countries in the Caribbean such as Antigua, Dominica, Bahamas, Trinidad and Tobago, and Jamaica, had passed legislation in recent years which regulated industrial action, including strikes, and 114

121 SEMINAR REPORT lockouts, and also substitute forms such as "sit-down strikes", "go-slows" or "sick-outs". The scope and content of these laws varied widely. In principle, they recognised a right to strike under certain circumstances; they circumscribed its scope and content, and imposed certain penalties in case of violation. As a rule, strike substitutes were illegal, as well as certain forms of strikes. For example, sympathy strikes are outlawed in Bermuda, where it was argued that workers could only strike in pursuance of improving their own conditions of work and not those of workers in other enterprises. In practice, all forms of industrial action were resorted to in Caribbean countries including strike substitutes. Cases of sick-out and go-slow had reached the law courts and had resulted in decisions unfavourable to the workers. 26. The participants then addressed the question of whether there should be restrictions on industrial action while dispute settlement procedures were underway. Employers preferred work to be resumed before conciliation took place, while workers, for reasons of strategy, would prefer to retain a strike option. It was generally agreed that conciliation was best conducted in an atmosphere of calm, free from the tensions typical of industrial action. However, in practice, this was difficult to achieve, since both parties seeked to influence the final settlement of the dispute by all means at their disposal. 27. It was observed that sometimes employers did not show up in conciliation meetings and this was particularly frequent where the conciliation machinery was entirely voluntary. In response to this, the Bahamas already had enacted legislation aimed at ensuring employers' participation in conciliation. 28. Most countries imposed restrictions on the right to strike as regards essential services. When defining "essential services", countries had, technically speaking, three basic options: they may adopt a definition formulated in general and abstract terms, they may enumerate the actual functions they intend to treat as essential, or they may use a combination formula which identified certain functions and left room for executive discretion to enlarge the number of services considered essential. The enumeration method was used in a number of Caribbean countries, such as Dominica and Trinidad and Tobago. Frequently, essential services as defined in the law included the protection of economic interests, such as the banana, citrus, and coconut industries, oil, gas, petrochemicals and the like. The protection of these industries was certainly important. However, it was felt that the classification of services as essential needed to be reviewed with a view to safeguarding strikes as an instrument of dispute settlement. In doing this, the definition provided by the ILO Committee on Freedom of Association, should be taken into account. According to the Committee, "essential services" were those whose interruption would endanger the life, personal safety, or health of the whole, or part, of the population. 29. There was general agreement that it was necessary to provide for alternative dispute settlement mechanisms where the right to strike was restricted. In many Caribbean countries, compulsory arbitration was available to settle essential serious disputes, i.e., a mechanism where a third party was empowered to take a decision in the form on an "award" which disposed of the dispute. As a rule, the award was binding in law and the interested party could seek its enforcement by judicial means. It was felt that the time limits for dealing with the conflict at different levels imposed by 115

122 LABOUR RELA TIONS IN THE CARIBBEAN REGION current legislation needed to be reviewed and shortened in some instances. Some participants observed that there was a need to impose time limits within which a settlement should be reached. This was so because at present the time taken to dispose of a conflict in essential services was far too long and jeopardised the well-being of the community beyond a point which was necessary with regard to the claims or demands of the strikers. 30. There was a general feeling that settlement procedures in the Caribbean were becoming rather legalistic. Some participants felt that more tripartite discussions would facilitate the settlement of disputes to a greater extent than statutory provisions. More and more attorneys were becoming involved and this seemed to be introducing a greater measure of rigidity than was considered good for healthy industrial relations. It was also pointed out that certain dispute settlement procedures, such as compulsory arbitration schemes, tended to create a danger for effective collective bargaining since they might have a chilling effect on the parties' efforts to reach agreement through compromise. If one of the parties believed that a better result may be obtained through arbritration than through negotiation, then it would insist on excessive demands in the hope of tilting the arbitration award in its favour. If one side acted this way, the other side would do likewise, and as a consequence there would be no real negotiations. In the end, this would have a narcotic effect on the parties in the sense that they relied increasingly on arbitration at the expense of real collective bargaining. The role of the State in labour relations 31. Apart from matters of crucial national importance, the full power of the state was seldom brought to bear on labour relations. Decisions were often taken by separate institutional entities such as the Ministry of Labour, the courts, etc. By and large, there were five state functions which were directly relevant for labour relations: legislation and the administration of justice; social policies and social insurance; labour administration and labour market policies; incomes policies, and, finally, the state as employer. Considering the limited time available, participants decided to concentrate on the most important regulative and distributive functions of the State. 32. Most of the countries represented at the seminar subscribed, as a starting point, to the principle of voluntarism in labour relations which was based on the idea of self-government by the parties to labour relations with a minimum of intervention by the government by way of legislation or other forms of rule-making. Some participants felt that this was an important ingredient of a democratic and free society. However, while in a few countries such as Saint Lucia, a rather pure voluntarism continued to be very widely practiced, in other countries of the region there was a considerable trend towards more state involvement in labour relations. As regards its regulative functions, governments became increasingly active in making provisions relating to the status of workers' and employers' associations, to the conduct of collective bargaining and dispute settlement and to basic conditions of employment. In some Caribbean nations, the regulative function of the State was very well-developed indeed. This had also to do with the close linkage of labour movements with political parties whereby legislation was seen as being able to provide universal 116

123 SEMINAR REPORT benefits common to the working class as a whole. In addition to greater regulative involvement of this kind, many states increasingly assumed important distributive functions in the field of social security, labour market policies and incomes policies. These, in turn, affected the conduct of labour relations since the individual and collective position of workers changed considerably once they acted against a background of firmly established labour rights and obligations. 33. A certain degree of rule-making in the form of legislation or by way of government policies was necessary to deal with the increasing complexity of social and economic phenomena. Mention was made in this respect of the questions raised by new forms of employment, new forms of investment, such as the setting up of export processing zones and the impact of the agreements concluded with the International Monetary Fund and other international financial institutions. In these and other areas, a certain degree of substantive rule-making was considered necessary to address the problems with a view to preventing major conflicts from arising and satisfying certain conditionalities of the financial institutions. It was felt that intelligent rule-making had an important preventive function in addition to providing remedial relief. However, the freedom of the workers and employers to determine conditions of employment should be as wide as possible and state intervention should be kept to the necessary minimum. It should strengthen the institutional framework of labour relations without interfering unduly in the interaction between workers' and employers' organisations. The participants agreed that a legalistic approach, characterised by excessive rule-making and widespread involvement of the legal profession in the conduct of labour relations was to be avoided since it may shift the focus of attention to procedural matters at the expense of addressing the real problems. 34. For example, while there was widespread agreement that dispute settlement procedures should serve the multiple objectives of avoiding industrial action and minimising third-party dependence and maximising effective bargaining, there was much difficulty to legislate in such a fashion so as to attain these aims simultaneously, which was nevertheless crucial for social and economic progress. Equally difficult was the choice between regulating questions of social policy by legislation or by collective bargaining. Preferences for one or the other mechanism depended on a number of variables. Often, well-established and strong unions tended to rely more upon autonomous employment regulation and sometimes opposed state intervention, fearing that it could weaken their strength and solidarity. In addition, employers might be more prepared to concede to strong unions what legislators may refuse to grant. Collective bargaining might also yield a greater pay-off when there was a high demand for labour. At the same time, lengthy official procedures and/or efficiency problems with tribunals and labour courts militated in favour of collective bargaining. On the other hand, there were advantages inherent in legislation. It may relieve the bargaining structure of certain controversial issues by dealing with them at the political level - issues which might otherwise have to be resolved through industrial action. In addition, an important number of rules, for example, on pensions and on employment discrimination, including equal pay, required uniform application in a given territory in order to deploy their full effect. In summary, it would appear that legislation tended to prevail over collective bargaining when the political power of workers exceeded 117

124 LABOUR RELATIONS IN THE CARIBBEAN REGION their industrial power. However, employment legislation and collective bargaining were not competing and they were not alternative tools to the achievement of social goals. They could more usefully be regarded as supplementary and mutually reinforcing. 35. Another area of concern was the influence of governments on wage-bargaining in particular through incomes policies conceived as a consequence of agreements concluded with international financial institutions such as the International Monetary Fund. Customarily, the determination of wages had mainly been a matter of bargaining between the parties concerned. However, in an attempt to contain inflation, to stimulate economic growth, to restore the balance of payments and to fight unemployment, many governments in the Caribbean region had taken a more active role. Governments in many countries used, inter aha, fiscal and monetary policies; they developed special incentives to stimulate productivity and to attract foreign capital in particular by setting up export processing zones, they reduced public expenditure for social policies, privatised parts of the public sector, or reduced the number of employees working there, and took legislative measures for greater flexibility in labour law. 36. Generally speaking, governments had various possibilities at their disposal, ranging from persuasion to control. Many governments in the region urged workers and employers to take macro-economic elements into account in collective bargaining. However, attempts at mere persuasion were not always successful and therefore consideration was given to voluntary wage guidelines as a way of meeting the dual goals of preserving reasonably free collective bargaining and still holding wage increases within economically tolerable limits. Such guidelines established certain targets and thereby confronted the parties with a choice between support for national economic development policies as defined by governments or the pursuit of their own sectoral interests. Unfortunately, there were not many central trade union bodies in the Caribbean, the support of which was crucial for the success of these guidelines. The participants pointed out that it was difficult to reconcile over a long period free collective bargaining with imposed or self-imposed restraint. Employers might find it difficult to satisfy their manpower needs within the financial limits prescribed by wage guidelines. For union leaders, it was difficult to defend vis-à-vis rank and file pressures; taking into account macro-economic concerns could lead to a situation of failure to satisfy fully the claims of workers. Participants also considered more direct forms of control. However, methods such as mandatory ceilings on wage increases, although they were practiced in some Caribbean countries, were not generally acceptable to participants. Nevertheless, they agreed that present economic difficulties required close coordination between workers, employers, and governments, and a sense of economic responsibility on the workers' and employer' side, transcending their particular group interest. They felt that some kind of wage guidelines, established on a voluntary basis, might be conducive to the social and economic development of their country. Workers' and employers' participants pleaded strongly, for such intervention to have a chance of success, in favour of extensive consultations by governments of trade unions and employers' associations before they embarked on introducing legislation or formulating economic and social 118

125 SEMINAR REPORT policies. A number of workers' and employers' participants felt that there was room for improvement in this respect. Workers' participation 37. Generally speaking, workers' participation occurred when employees took part in decision-making in the enterprise. Leaving aside collective bargaining, which remained the main form of workers' participation in Caribbean countries, formalised schemes of participation such as works councils set up at the level of the establishment, or employee respresentation on corporate boards, were not widespread in the Caribbean region. There was a degree of consensus that it was desirable to have schemes which enabled employees to take part in decision-making, so that they became involved in areas of interest to them, some of which might have been considered management prerogatives. The view was also expressed that workers' participation was particularly important in developing countries because associating workers with decision-making provided additional channels for involving them more directly in economic and social development, and for strengthening their sense of responsibility, going beyond the pursuit of their immediate private interests. However, despite the general interest expressed, there was no concrete groundswell regarding the introduction of instutionalised forms of workers' participation. Rather, voices were heard for greater individual involvement of workers. For the time being, all possible forms of participation as diverse as quality circles or share allocation to workers, and the like, should be studied. It was noted that new forms of work organisation and greater involvement seemed to be very much of a recent trend. Certain participants thought that if any schemes were to be introduced, this should be done on the basis of an agreement between the parties concerned at enterprise level, or perhaps, as a result of tripartite consultations at a higher level. 38. Some participants considered that institutionalised forms of workers' participation could in particular be set-up at the level of the establishment and/or in the form of employee representation on corporate policy-making boards. The main objective of participation at the level of the establishment was to associate elected representatives of the workers and/or union representatives in decisions affecting the functioning of the establishment. In countries where works councils or similar bodies existed, their members were involved, through information, consultation, and in some instances co-determination, in decisions concerning the general organisation of the establishment, the organisation of work therein, and sometimes the composition of the labour force. A common feature of works councils was that management prerogatives were limited in areas where this was indicated to safeguard the individual and collective interests of the workers. Typically, such areas as safety and health and other social services were covered by this type of participation. While works councils were often primarily concerned with the social protection of workers against potentially damaging consequences of management decisions, the focus was different with employee representation on company boards. In the latter case, a main objective was to directly influence the managerial and entrepreneurial activities of the employer. 119

126 LABOUR RELATIONS IN THE CARIBBEAN REGION 39. The introduction of participation machinery did not in itself guarantee that its objectives would in practice be realised. Workers' participation had been introduced in Jamaica and Guyana in the 1970s but had not worked well. After a few unsatisfactory experiences, the institutions collapsed and left no visible trace on the conduct of labour relations in these countries. At present, the Governments of Jamaica, and of Trinidad and Tobago were attempting to revive interest in workers' participation. In the latter country workers' representatives were already present on boards of state enterprises and of statutory corporations. It was thought by a number of participants that it would be useful to analyse the reasons why workers' participation had failed in many instances in order to avoid similar failures in the future. These reasons were connected with both the nature of institutionalised forms of participation and with the particular conditions prevailing in the countries where they were introduced. 40. A number of characteristics of institutionalised forms of workers' participation were mentioned which made it, at the present time, difficult to introduce them on a wider scale in Caribbean countries. A major concern was that some forms of workers' participation were likely to modify the power relationship between workers and employers and governments. In many Caribbean countries, there was no sizeable political will, with a few important exceptions, such as Jamaica, Guyana, Trinidad and Tobago, to embark on a venture which, to a certain extent, might involve the need of defining a new equilibrium between the parties to industrial relations. Another powerful obstacle was the traditional adversarial attitude which still underpinned labour relations in many Caribbean countries. It was obvious that workers' participation could only work well where both parties subscribed to a common philosophy of limited cooperation as a necessary ingredient for success. A major concern of workers was that the line of interest conflict between labour and management became blurred by introducing workers' participation. Trade unions might find themselves in situations where they would have to take co-responsibility for decisions that were only digested with difficulty by the rank and file such as, for example, the retrenchment of workers. Workers' representatives participating in decision-making were necessarily subjected to requirements of confidentiality in order to preserve the business secrets of the employer. This might accentuate possible role conflicts and estrange workers' representatives from their constituents. In general, the involvement of workers' representatives in managerial responsibilities could modify their views and convictions and isolate them from rank and file. They may rather become agents of the status quo than of progress and change. There was also concern that the establishment of works councils or similar bodies might reduce the role of unions at the level of the establishment. As regards employee representation on company boards, it was suggested that, instead of electing trade union members to sit thereon, it might be more expedient if unions nominated an independent member to represent their interests on the board. Thus, possible role conflicts could be avoided. 41. In Jamaica and Guyana, the schemes introduced in the 1970s by legislation had met resistance from employers and, as regards certain aspects also from workers. The main objectives of workers' participation had not been assimilated well by 120