Seasonal economy fuels
six-month labour contracts
PHILIPSBURG--Small Business Development Foundation (SBDF) and St. Maarten Chamber of Commerce representative Ludwig Ouenniche says the island’s seasonal economy is one of the primary reasons why employers offer their employees six-month labour contracts.
Ouenniche was at the time responding to questions from a member of the audience attending the minimum wage forum held at John Larmonie Centre last Saturday night. He said while the system needs to be reviewed, it is a reality. “When a big percentage of your economy is based on seasonal economy then this happens,” he said. “Everyone knows that during one season, hotels get the highest percentage of occupancy rates and during this period businesses that depend on the seasonal economy, hire enough people to take care of the high season and let them go when the season ends.”
Ouenniche said he is now noticing a trend that the low season is not as bad as before. He said it is no longer the case that some businesses close their doors during the off season as used to be the case.
He said some sectors abuse the use of six months labour contracts. “That is why the MOU (Memorandum of Understanding) states that we have to do away with six-month labour contracts,” he said.
Windward Islands Federation of Labour (WIFOL) President Theophilus Thompson said employees should only be allowed to work for two consecutive contracts and should become permanent. “Employers should also be more considerate especially to persons who are hard workers and make them permanent,” said Thompson, also a member of the panel at the forum.
Head of the Island Department of Labour Rafael Boasman said the tripartite committee comprising representatives of government, labour and businesses addresses issues such as these. Addressing the issue of the six-month labour contract is also contained in the MOU signed by the social partners last year.
Also on the panel were Labour Commissioner Louie Laveist, who organised the session; Humphrey Alejandra, a representative of Labour Minister Burney Elhage; Head of the Central Government Department of Labour Kenneth Lopes and former Lt. Governor Dennis Richardson.
St Maarten vacation rental
