HONOURABLE PEARNEL CHARLES, CD, MP, JP Minister of Labour and Social - PDF document

~- SECTORAL DEBATE 2010/2011 Presentation by HONOURABLE PEARNEL CHARLES, CD, MP, JP Minister of Labour and Social Security Tuesday, October 12, 2010 Gordon House, Kingston ­ ­­­­ - - ­­_._­- ­ -

Introduction Mr. Speaker, emanating from the Sectoral Debates last year was a consensus that the global recession had impacted the Jamaican society in unprecedented ways. However, I believe we have seen compelling evidence which indicate that the country, while not totally out of the woods, has been stabilized and is now on a path towards economic growth. Mr. Speaker, in spite of the challenges, the social sector was adequately provided for in the Budget. As the Prime Minister assured us in his presentation, all efforts were to be made to ensure that education, health and social security would be a priority in order to provide a cushion for the vulnerable groups in the society. As a result, my Ministry ­ which is responsible for a significant part of that social sector ­ was able not only to maintain existing support levels, but also to extend our reach in a number of services so that more persons were captured under the social security programmes. Through participatory dialogue with our traditional partners (employers and trade unions) and other stakeholders, we have been able to maintain a relatively stable industrial relations climate. While this remains our core function in the Labour Division, we are also engaged in training, job creation and marketing of skills overseas. Human capital development has to be a major objective of the Ministry in these times if more workers are to be properly positioned to compete in the global marketplace. Mr. Speaker, throughout the year, we experienced significant challenges on the industrial relations front. Among public sector workers there have been demands for improvement in their working conditions. The Government recognizes the importance of this and, in most instances, their demands are legitimate. Nevertheless, the economic realities of the country must also be recognized. 1

As responsible public servants, there has to be sensitivity and understanding of the plight of the Government. The Government is not intransigent in believing that there will be no changes, but asks that the demands be made within the confines of the current economic situation. Unless this is so, it will only become worse for everyone concerned. In most of the disputes in which the Ministry has offered its conciliatory services, the issues were satisfactorily resolved although only the major ones were reported on nationally. The Ministry continues to build its capacity for intervention and conciliation and I want to congratulate the members of staff who continue to work diligently, even at great personal sacrifice, to deal with these disputes. Overseas Employment Mr. Speaker, the global recession has continued to significantly impact the overseas employment programme. The negative effect of the economic recession in the United States has resulted in a decline in the number of workers for both the Farm Work and Hospitality Programmes during the first part of the 2009/2010 season. The Farm Work Programme reflected a decrease in the USA by 7.8 per cent while the hospitality programme declined by 53 per cent in comparison to the 2008/2009 season. In terms of the Canadian programme, Mr. Speaker, there was relative stability as the programme experienced a decline of only 3 per cent. This resulted from the downsizing of several farms during the latter part of the 2009/2010 financial year. Five thousand, eight hundred and sixty­two (5,862) workers participated in the programme in the last financial year, compared with 6,053 in the previous year. Mr. Speaker, in spite of the challenges imposed by the difficult international economic environment, the Ministry was able to place more than 10,000 Jamaican workers in employment opportunities both in the USA and Canada. 2

Remittances Mr. Speaker, we cannot overemphasize the importance of remittances to the Jamaican economy. According to BOJ statistics, in 2009/2010, total remittances to the country were US$2.1 B compared to US$2.3B in 2008/2009, a slight decline of 9.5 per cent. Remittances from the US Farm Work and Hospitality programmes fell from US$9.3M to US$6.1M, largely due to the decline in the number of workers who participated in the Hospitality Programme. Remittances from the Canadian Programme were quite stable with a marginal decline of 2.9 percent from Can$12M in 2008/2009 to Can. $11.7M in 2009/2010. Prospects for the current financial year are extremely encouraging. Already we are witnessing an increase in the number of employment opportunities under the US Hospitality Programme. Many of the traditional employers are now experiencing an upturn in economic activities and are recalling workers who were not recalled for the last two seasons. The US Farm Work programme is also showing signs of growth as new employers are participating in the programme. Two months ago, a new employer in California engaged 300 workers in the citrus industry ­ an area which we have been trying to exploit for some time now. In Canada, there are strong indications of a rebirth in the tobacco industry. More than 160 workers were recalled to several tobacco farms and are being processed for dispatch as we speak. New employers are also coming on stream in the seafood industry in New Brunswick and Nova Scotia. Workers are already being dispatched to growers of strawberries and other fruits in provinces such as Nova Scotia and Ontario. Non­traditional employment opportunities are also poised for growth as the Ministry realizes the fruits of partnerships with several training institutions in Canada. In June 2009, 18 Jamaicans left for Red River College in Manitoba where they completed 3

training and were awarded Red Seal Certification as chefs. These workers are all currently employed in Canada. In January, 14 heavy duty mechanics were dispatched to the College of North Atlantic in Newfoundland and 13 auto service technicians were sent to Red River Col1ege. These trainees have completed training in their respective disciplines, obtained their Red Seal Certification and are employed in Canada. It must be understood, that securing employment depends on successful completion of courses to gain Canadian certification. Deaths of Farm-workers Mr. Speaker, I wish to take this opportunity to express sympathies to the families of two of our farm workers. who died recently in Ontario, Canada. They are 44 year­old Ralston White from Preddie. Manchester and 36 year­old Mr. Paul Roach of Milk River, Clarendon. According to the autopsies, both Mr. White and Mr. Roach died as a result of environmental suffocation. The circumstances surrounding the accident are still being investigated by the Ontario Provincial Police as wen as the Ontario Ministry of Labour Health and Safety Division and our Liaison Service. The families have been compensated in the sum of C$15,OOO from the insurance plan operated by the Jamaican Liaison Service. Each fami1y has received an initial lump sum payment which is the maximum payable under the Workmen Safety and Insurance Scheme. In addition, spouses and children will receive a monthly al1owance. The spouse will receive the monthly payment until death and the children will receive until age) 9. The Children will receive payment up to age 30 if they are in university. This represents a reasonable package. The Ministry continues to be proactive and so through our Liaison Service in Canada we are conducting on­going inspections to reduce and where possible, prevent work place fatalities and accidents. 4

Mr. Speaker, we take a keen interest in the welfare of Jamaican workers engaged overseas. We have established a Family Services Unit in the Ministry which is a social intervention programme designed to strengthen family ties while spouses are away. A major focus of this programme is to ensure that earnings are used for the maintenance and development of families. Since the inception of the Unit two years ago, over 6,000 families have benefited. This has resulted in increased remittances to families, improved school attendance and involvement in entrepreneurial activities. Mr. Speaker, we are also taking steps to prevent migrant workers from returning home without adequate provisions for their retirement after many years of employment. We have, therefore, put in place the necessary arrangements to facilitate their participation in the National Insurance Scheme. We intend to do a similar exercise for their participation in the National Housing Trust (NHT) and Health Insurance coverage. Industrial Relations Mr. Speaker, the year 2009/2010 has been somewhat challenging for the Ministry as it pursued its mandate of promoting and maintaining industrial harmony at the workplace through tripartite dialogue. With the advent of the economic recession and its impact on Government's wage policy, there have been a number of difficult disputes, particularly in the public sector. The financial meltdown has also affected the private sector. As you are aware Mr. Speaker, the faU­out in this sector has led to significant loss of jobs, productivity and revenue, especially in the bauxite Industry. Mr. Speaker, the Ministry maintains a record of the number of redundancies. In fact, the Employment Termination and Redundancy Payments Act (ETRPA) were recently amended to require all employers to report to the Ministry all proposed as well as reported redundancies. Mr. Speaker, we consider this to be of vital importance as we want to ensure that redundancies are carried out in a manner consistent with the provisions of the law. Workers must receive what they are entitled to. The law is 5