10th August, 2006

Ladies and Gentlemen, my fellow Bahamians, good evening.  I have decided to address you this evening on the matter of labour relations at The Bahamas Electricity Corporation.  This is the height of the summer and electrical power is especially critical during these times.  Unfortunately, the ability of the Corporation to provide uninterrupted service to the Bahamian public is being affected by ongoing labour unrest.

In 2001 the labour Laws of The Bahamas were amended, reducing the standard hours of work to 40 hours per week from 44 hours per week. There was a savings clause in the Act that did not affect employees where an industrial agreement was in effect. At the time the act came into force all Government Corporations were already working 40 hours or less per week; so legally there was no need to further reduce their hours of work.

During negotiations of the industrial agreement between The Bahamas Electricity Corporation and The Bahamas Electrical Workers Union, which expired in 2003, the Union was unable to convince management to further reduce the hours of work, which were already less than the 40 that the new Act provided for.  An industrial agreement was then signed in 2004 for workers at the Corporation to work between 37.5 and 40 hours per week, effective from 1st May 2003 to 30th April 2007.

During negotiations between Bahamas Telecommunications Company and the BCPOU, certain concessions were exchanged and their hours of work in certain categories were reduced by one half hour per day.

The Union then again approached management, asking them to pay arrears, or back pay, from the time they first asked management to reduce the hours in 2003 to the time when management actually reduced the hours in 2005.  This demand is unreasonable and would cost management and the Bahamian consumer almost 9 million dollars.  It would also mean an electricity rate increase to the Bahamian consumer.

A dispute was then filed with the Department of Labour and conciliation took place, but an agreement could not be reached.  Subsequently, both parties agreed to have Bishop Neil Ellis appointed as an arbitrator to try and resolve the 33 outstanding disputes.  30 of the 33 have been resolved.  One of the remaining 3 outstanding is the issue of the back pay, which is the most contentious issue.  Before the completion of the arbitration process, the Union, objecting to the recommendations of Bishop Ellis, decided to take industrial action.  This was premature and resulted in hardship, damage and grave inconvenience to the Bahamian public and consumers generally.

Upon learning about this, I went to the Clifton Pier power station and advised the president and executives of the Union that their actions were illegal and that they should immediately return to work.

A formal letter with those instructions was also issued by the Director of Labour.  The Union then advised that they were not prepared to return to work unless there was a quick resolution to the outstanding disputes.  Therefore, I now have no choice.  The supply of electricity is an essential service.

Tonight, in accordance with the power conferred upon me under the Industrial Relations Act, in respect of essential services, I have referred the unresolved matters to the Industrial Tribunal for settlement. It is my view that the public interest requires me to take this step.

Union members should be aware that the law states that once I have taken this step, “no employee shall go on strike and …no union or member …of a union shall call a strike …while proceedings taken in relation to that dispute are pending before the Industrial Tribunal”. The consequences of failing to comply with the law include a fine or imprisonment.

Last year in an attempt to resolve these same matters and others and acting in good faith BEC paid the Union $2.5 Million.  Regrettably the Union has not honoured its commitment and is now making additional demands.

It is important for the public to understand and appreciate the extensive time and effort I’ve put into these disputes personally and through the department of Labour in trying to bring resolution to them. Being a former trade union leader, I understand and appreciate how difficult, sensitive and important these types of matters are. At all times I want what is right, fair and equitable for workers of The Bahamas and I’ve pledge to carry out the functions of my office without compromise.

I now invite the leaders of The Bahamas Electrical Workers Union to obey the law and to direct their members to return to work immediately.  It is my sincere hope that these matters can be resolved through responsible behaviour on the part of all concerned in the interest of the Bahamian people.

Thank you; and good night.