Inter-American Ministers of Labour (IACML) Meeting Dominican Republic July 27 – 29, 2010

1. Inter-American Ministers of Labour (IACML) Meeting Dominican Republic July 27 – 29, 2010 Responses of Ministers of Labour and the Perspectives of Social Actors to the Current Economic Crisis SAINT LUCIA

2. Review • Effect of Global Financial Crisis • Deceleration of growth in all economies • Ripple effect on more developed economies • Poverty rate increased by 3.7% over 10 year • period ending 2005/2006 • Indigence fell by 5.5% over the same period

3. Review • Slow-down in tourism and construction sectors, layoffs and reduced work time • By March 2009 approximately 520 employees lost means of employment, mainly in tourism and construction sectors

4. Review • Deterioration in external environment • Contraction of real GDP by 5.2 percent in 2009 contrast of positive growth of 0.7 percent in 2008 • Contraction in economic activity mainly associated with declines in tourism industry, construction and agriculture sectors

5. Update • Spill-over on wholesale and retail trade, transport, banking and insurance • Unemployment of 20.5 percent at end of 2009 • Contraction in economy • Job losses

6. Strategies Implemented • Stimulus package and job creation initiatives • Holistic Opportunities for Personal Empowerment (HOPE), 900 received direct employment from 87 Government initiated projects • Support given to 2,465 students from 17 secondary schools under the Transport Subsidy Programme

7. Strategies Implemented • Assistance given to 1,539 households and 4,617 students under the Education Assistance Programme • Completion of 7 projects under the fifth Basic Needs Trust Fund, with over 4,000 beneficiaries

8. Strategies Implemented • Government has broadened its social policy • St. Lucia Social Development Fund embarking on a Musical Talent Programme Programme seeks to help curb negative/deviant tendencies

9. Issues Facing/Role of Department of Labour • Sporadic industrial unrest in public and private sectors • Disputes ranging from decertification pole for St. Lucia Electricity Services to complications in a recognition pole for Royal Bank of Canada • Public sector workers remonstrating and agitating for wage and salary increases and retroactive pay.

10. Issues Facing/Role of Department of Labour • Intricacies of the global financial and economic environment • Threat of the HINI pandemic • Staff worked to reduce the number of labour disputes • Trade unions and employer organisations saw challenges as opportunities for restructuring and minimising conflict

11. Primary Stakeholders • Cabinet of Ministers • St. Lucia Employers’ Federation • Trade Union Federation • National Workers Union • Media • Department of Labour

12. Issues Facing/Role of Department of Labour • Record 1,409 minor labour complaints received; settled 1,438 (includes previous reports) • Slowdown in activities in most sectors • Not many work place inspections were necessary – 27 recorded • Figures indicate level of understanding and maturity employers showed in arriving at mutually acceptable settlements

13. Issues Facing/Role of Department of Labour • Department of Labour signed a record thirty (30) Collective Agreements during the period, most of them occurring between August and September 2009 • Most of the Collective Agreements are of three (3) years duration and averaging around fourteen (14) percent over the three-year period.

14. Issues Facing/Role of Department of Labour • Parties took into account the effects of the global financial and economic meltdown • Reinforces need for social dialogue

15. Issues Facing/Role of Department of Labour • Migrant workers in Canada remitted almost EC$1 million in savings by March 2010 • Government approved duty free allowance on personal effects for returning Canadian farm workers up to a maximum value of EC$5,000.00 per person • The Government also agreed to pay advances to the returning workers to reduce time in accessing savings

16. Issues Facing/Role of Department of Labour Unemployed Workers Register and Social Protection Measures • Lack of unemployment benefits • Growth in informal sector • Dramatic changes in labour market • Need for effective human resource allocation • Job creation and protection at the core of national crisis response

17. SOCIAL ACTORS Employer Organisations St. Lucia Employers Federation Strategies • Attempts being made to maintain staff complements • Cuts in operating costs • New and creative strategies to increase sales eg. targeted offers to locals in the hotel sector, anniversary sales and discounts, and “Buddy Marketing” • Retraining and cross-training staff • Major emphasis on Customer Service

18. SOCIAL ACTORS Trade Unions St. Lucia Civil Service Association Measures being considered:- • Reducing hours of work • Part-time work • Job sharing • Leave without pay • Flexible leave arrangements • Providing counselling services to members • Approving low cost housing for members • Implementation of an agency shop • Organisation has maintained a policy of bipartite dialogue with employers

19. SOCIAL ACTORS National Workers Union (NWU) Measures implemented • Job losses and the related social and economic consequences were high up on the NWU’s agenda • The Union engaged all companies represented by the NWU in search of industrial stability and job security • When workers voluntarily retired, it was agreed that new workers would not be hired, but that whenever vacancies arose promotions and the upward mobility instrument would be put into effect.

20. SOCIAL ACTORS • Roll backs were not accepted but in some cases, agreed new wage levels were implemented gradually • Motivational meetings were held at which productivity, efficiency, and punctuality formed the agenda • Plant operational committees were established which were charged with the responsibility of reducing wastage and containing energy consumption • Overtime was brought down to manageable levels

21. SOCIAL ACTORS • Instead of mass retrenchment, workers were placed on rotation; those entitled to annual vacation were asked to proceed on vacation leave • Sick leave and other forms of absenteeism were also reduced • Profit sharing bonuses were reduced, workers were given the opportunity to receive small loans from the company • NWU has informed that it has been able to realise benefits from the joint initiatives

22. Benefits of consolidated efforts • All the activities of trade union organisations and the lone employer organisation have brought the social partners closer • Resulted in a reduction in the conventional adversarial approach to resolving differences • Increased social dialogue and collaboration

23. CONCLUSION • Year ahead will be one of great challenges, but optimism • Recovery in some countries will occur sooner, while others will feel a prolonged negative impact • Road to recovery is not only about financial issues, but also achieving economic growth and development of people

24. CONCLUSION • Development entails effectively addressing socio-economic problems • Failure to address social ills will act as a brake to recovery efforts and overall development • Decent work to doorsteps of people • Collaboration

25. THANK YOU