Good day to members of the media and the listening public.
Following Speech from the Throne, the Ministry of Economy and Labour remains committed to the plans and initiatives that will continue to create a fairer Bermuda for all. I am happy to share the Ministry's priorities over the upcoming parliamentary Session.
Bermuda’s workers have proved to be the solid foundation on which economic progress is made. The Government is taking several steps to improve labour conditions, including advancing the minimum hourly wage, strengthening Employment and Labour Relations Tribunal awards, retaining older workers, and investing in workforce development.
Progressing the Minimum Wage
During this Session, the minimum wage will be further strengthened.
In September of this year, the Ministry of Economy and Labour released a position paper titled Progressing Bermuda’s Minimum Hourly Wage Rate. The purpose of the Position Paper was to outline the Government’s commitment to progressing the minimum hourly wage rate beyond the current $16.40 and to propose a framework for achieving this.
The establishment of a minimum hourly wage in Bermuda was a significant step towards ensuring fair compensation for employees and reducing income inequality. However, a further step needs to be taken to ensure all employees can maintain a reasonable standard of living and that their purchasing power is not diminished when the costs of everyday goods and services rise.
The Government supports the Position Paper’s proposal to progress the statutory minimum hourly wage rate every two years by the annual average inflation rate, utilizing the Consumer Price Index (the “CPI”) as the indicative measure, capped at 2.5% per year. Using this methodology, the newly proposed statutory minimum hourly wage rate to take effect in 2025 will be between $16.81 and $17.23.
Strengthening Tribunal Awards
The Department of Labour and the Employment and Labour Relations Tribunal continue to experience non-compliance by some employers who reject their legal obligation to honour the Tribunal’s binding award of compensation to the employee (in the absence of an Appeal).
In many instances, the employer will not reinstate or reengage the former employee and, also, will fail to honour the award or make arrangements to pay the worker. In this legislative session, the Ministry of Economy and Labour and Department of Labour will advance greater protections for workers in enforcing Tribunal awards.
Encouraging the Retention of Older Workers
In alignment with the Position Paper on Retaining the Local Workforce and to encourage the retention of those Bermudians over 65 who wish to continue working, the Ministry of Economy and Labour will introduce legislation to eliminate the employer’s portion of payroll tax for those Bermudian employees so retained.
In 2018, the Labour Advisory Committee produced a report entitled ‘Reviewing the Retirement Age’. The report concluded that:
Older workers should, without discrimination by reason of their age, enjoy equality of opportunity and treatment with other workers as regarding recruitment, hiring, compensation, benefits, training, working conditions and career development.
The Ministry of Economy and Labour is committed to providing benefits to businesses that retain able-bodied, capable workers beyond age 65. These changes will aim to retain the current workforce while other efforts will focus on growing the Island’s economy, creating more jobs that support an increased working population. As “baby boomers” reach retirement age, many remain capable and able to carry out their duties with competence.
Investing in Bermuda’s Workforce
The Department of Workforce Development will continue to be the principal vehicle for equipping Bermudians with the skills and opportunities to thrive in this growing economy.
The development of skilled trades is essential for the economy’s growth, sustainability, innovation and success. Skilled trades offer a viable career path for many individuals interested in pursuing a career in a hands-on, practical field. These careers can provide a steady income, job security, and opportunities for growth and advancement.
During this Session, the Ministry of Economy and Labour will:
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expand apprenticeship opportunities in construction and skilled trades;
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expand solar energy training for electricians;
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accelerate hospitality training to meet the growing demands of the industry and;
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launch a new career development platform to close the workforce gap by developing students and job seekers and directly connecting them to employers.
Supporting Long-Serving Employees
To assist long-serving employees facing unexpected unemployment and loss of income, the Employment Act 2000 will be amended to increase the maximum allowable severance pay from 26 weeks to 32 weeks for those employees in continuous employment for 13 years or more. This increase will be accompanied by a legislative amendment to remove the requirement to pay payroll tax on redundancy pay. This will help provide stability and fairness for employees during a time of transition.
The Government’s commitment to taking measurable steps in support of our workforce is clearly demonstrated with these initiatives. Continued economic growth and sustainability requires ongoing engagement and undertakings of this nature. The Government and the Ministry of Economy and Labour remain committed to supporting our workers and creating a fairer Bermuda for all.
Thank you.