Lorna G. Smith’s Financial Services industry layoff proposal raises eyebrows
In the Email to Law Firms, Trust Companies and others in the Financial Services Industry, Mrs Smith- the Territory’s First Lady, being the wife of Premier and Minister of Finance Dr The Honourable D. Orlando Smith (AL)- sought to make some proposals for “individual firms to consider” as the Virgin Islands braces for the economic fallout of the powerful Category 5 Hurricanes Irma and Maria that have destroyed the islands.
What to consider- Lorna G. Smith
In her one page Email, Mrs Smith writing in her capacity as Interim Executive Director of BVI Finance, the agency responsible for promoting and marketing the sector, suggested that companies "cut salaries by 25% across the board, suspend all allowances and benefits except for social security and health insurance and institute a 4 day a week for employees, but stagger so that staff is in the office 5 days a week.”
Her objective was to lessen the impact to Financial Services Sector employees "who must continue to pay bills, send children to school and buy food.”
Additionally, Mrs Smith, who is expected to vacate the post of Interim Executive Director tomorrow November 1, 2017 also told industry officials to consider as an alternative to layoffs “suspending all paid vacation and institute a two week vacation for all staff without pay.”
Illegal suggestions? We have a Labour Code!
However, a Senior Labour Officer speaking to our newsroom said as far as they know cutting salaries and suspending allowances is a “change of working conditions for the employee” and must be handled after consultations with the worker, as you do not want to violate Section 45 of the VI Labour Code. The Officer said the Employee will “have to agree to the changes as it will be a change of working conditions.”
The Labour Officer also made it clear that the issue of suspending all paid vacation and instituting a two week vacation for all staff without pay is a “flat out violation of the labour laws and cannot be considered by employers, as it would be illegal as per Section 64 of the Code.”
Mrs Smith was hopeful that if the industry institutes her recommendations “they would not be in place for no more than 12 months.”
Give her credit but we have laws- Julian Willock
Mr Julian Willock, a former Permanent Secretary in the Ministry of Communications and Works who often speaks to the international community and media in defense of the VI Financial Services Sector, told our newsroom, “while I believe the First Lady was guided by her genuine concern for residents who will be laid off, which demonstrates her compassion in these trying times, we also have to ensure that we navigate within the laws of the Territory.”
Mr Willock further stated, “this could have the potential to set a precedent where some feel they could violate the labour laws and treat their employees unfairly using the 'carrot and stick method' of, if not these conditions you will be laid off, and this could also extend to other sectors of the economy.”
However, Mr Willock said “Lorna must be given some credit for at least trying to save jobs in this vital sector.”
The former Permanent Secretary and businessman, who had an interview in April of this year with the American National Public Radio about the off shore financial sector, said it was his understanding that following the hurricanes company registration had improved, “in fact they are said to be up.”
He said this sector is very vital to our economic recovery and we must work together to save it, but do so in a manner that is a “win win for all and within our laws that are on the books.”
A call to Mrs Smith for comment on her Email was not successful up to publication time.
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45 Responses to “Lorna G. Smith’s Financial Services industry layoff proposal raises eyebrows”
What about the US civil rights movement those who were for and against was that about entitlement.
The U.S gives aid every year to every sector for their economy to help their people and they are some jobs that must go to a citizen of that country. Asthematter of fact they are even some jobs in order to do them you must be a born Us citizen.
BVIslanders are not looking handouts just opportunities and respect. The first time many BVIslanders can experience working with someone and you say good morning in our out of the office and that person ignores you bringing their bad culture and negative beliefs. Every government looks out for their people first and every people expect their Government to do so. Yes some staff are difficult and need to be getting rid of.
But the problem comes when only BVIslanders are been let go, when some of these difficult rude and oppressive staff especially who sits at the top are not BVIlanders at all but because of certain beliefs these people have that they are entitled to be in a job and treat others like dirt even in their own country.
NOW LORNA ADVISE YOUR HUSBAND TO DO THE SAME FOR HIS CABINET..INFACT INSTEAD OF 25%...SALARIES SHOULD BE CUT BY 90%. AND OOOH. LET HIM FIRE ALL THE MINISTERS AS WE THE ELECTORATES REALIZE OUR MISTAKE. WE NEED THEM OUT. ONCE HE AS FIRED THEN, THEN ASK YOUR HUSBAND TO RESIGN....!
1. WHAT'S GOOD FOR THE GOOSE IS GOOD FOR THE ....
2. PRIDE IS A THING OF A PAST.
3.THE COUNTRY IS IN A STATE OF EMERGENCY.
4.ALL THOSE WHO FRAUDULENTLY STOLE FRIM THE GOVERNMENT NEED TO CONFESS NOW.
5.ENOUGH WITH THE SHOW...THE COUNTRY IS IN TROUBLE.
My problem with this is that there are many employees within these companies who are already making very little and struggling to make ends meet. If companies consider your proposal, they should also consider each person’s individual case also. Note my thoughts below:
Maybe for those individuals who come to work and make substantial incomes, while their bills, as part of their package, are still being covered by the company (bills such as rent and their child’s school fees for example). They won’t hurt as much from salary cut as employees who make a mere $1500 to 2500 a month after taxes. Imagine in a case like this if the company went ahead and made a cut of 25%, that’s $1500-$375=$1125 or $2500-$625=$1875.
Companies should not consider a flat 25% across the board but instead the percentage should be based on the employee’s income.
Consider obvious cases such as single parent homes or homes with underage children and infants. If you have employees in these cases who are making little money, taking away a big chunk of their income can mean less food for their families as they are already working for just enough to pay bills.
Also consider those employees who have a mortgage to pay and deal with those cases individually, so that even after a cut, they can also meet there payments as well as maintain themselves.
Maybe the company can forfeit bonuses for the year to assist overall instead as we are in a tough economic situation at the moment given the disasters just occurred.
As an underpaid worker of this industry, this is my honest opinion if these changes are inevitable.
Roll on 1 November !!!
Other jurisdictions are waiting in the wings for experienced professionals (and their clients) in order to grow their populations and economies. Many want to push on with BVI to rebuild but it will be difficult as it will for everyone. Add in that the services and amenities, will be below pre-Irma standards which already required improvement, including schools, healthcare, recreation spaces and we need to pull out all of the stops to keep people here. piddling about with holiday pay is not going to do it. financial services and therefore our economy is under serious threat right now.
The real premier has spoken. She is who running this country from behind the curtain. He’s just the puppet. (Ok Doo Doo darling, if you say so, that I what I will do)
Ain who wear the pants. It’s who wearing the panty. Then again , maybe they b... do.
Tings to talk..
What a thing to tell the king... they flew first/ priority class yesterday! There is no shift or demotion in their standard of living! So why they here suggesting f@kry! When these Ministers cut themselves down to the average Man level... then I will support what they have going on! Until then... if it’s business as usual for you guys... then it’s business as usual for us locals... full salaries and paid on time!