PHILIPSBURG, Sint Maarten — The Honorable Minister of Public Health, Social Development and Labor VSA Richard Panneflek expressed with deep sadness that our Country, with the world has been plunged into an unexpected war, with an unseen enemy.
The COVID-19, and the subsequent state of emergency, has led to various actions being taken; employers and business owners, some commendable and others that go against the grain of our civil code.
The Minister of Labor is elated that some businesses continue to look out for the best interest of employees and continue to do what is right, but many have failed. Despite the difficult and uncertain times, the existing labor laws and the rights of employers and workers are still in force and must therefore be respected. In addition, what has been agreed upon between employer and employees in individual employment agreements and collective agreements.
It is our fair expectation that employers will act in accordance with the existing legislation, and that at all times, decisions will be taken, that are a result of discussions and mutual agreements between parties. These discussions does justice to the standard of good employer and good employee status set in labor law. However, good employee status, reasonableness and fairness may now also mean that, given the current economic circumstances, workers should agree to reasonable proposals from the employer to ensure the continuity of the business as best as possible.
The effects on the labor market became visible as a result of COVID-19, and the government’s decision to place the country under lockdown. Employers take unilateral measures and/or proposals to reduce their employees’ costs. However, employers should note that, if the business is unionized, we also expect business owners to discuss with the respective union members and their leadership. Taking a unilateral decision is never in the best interest of all parties. Employers cannot unilaterally suspend salaries. Employers are urged to pay full salaries or agree on a temporarily reduction of no more than 50% and this reduction has to be approved by the respective employees.
Minister Panneflek stated that the ministry of VSA will take the lead to initiate discussions with the tripartite committee and the unions to assess the overall impact of the COVID-19 in order to identify the gaps in our labor laws and to put in place a fast track to close those gaps.
The government is pushing to take short-term mitigation measures for employers and employees. This includes the anticipated pay roll stimulus package, a contribution to salary costs, an income support package, and an income contribution to affected workers and their households.
The Social Economic Counsel (SER), will be approached, to seek their advice on the best way forward, in the new post COVID 2019 reality, and the overall impact per the social / economic perspective, and the broad expected impact on laborers.
Moreover, the minister of labor is seeking the cooperation of businesses to be transparent. With this in mind, the ministry of VSA will take the lead to ascertain the impact of COVID-19 on the business sector. Businesses are urged to complete the labor market impact survey 2020 – which is online on the government website.
The Labor affairs unit continues to mediate on behalf of employees, and where applicable: cases are referred to court handling, or if there is a request for the consent of the Secretary-General to dismiss employees. This takes time and it is up to the employer to make it clear to the court/ SG, that their financial position and short-term expectations are so dire that dismissal of employees are inevitable.
The labor department has to date, only received one official dismissal complaint. The department continues to monitor the other cases that are playing out in the media / social media, and will be addressing those accordingly.
Minister Panneflek urges and implores all employers to adhere to the percepts of our constitution and our civil code, to work along with Government, in order to overcome this enemy.
The Ministry will closely monitor developments in the labor market and regularly inform the Council of Ministers, in order to mitigate the negative effects of the corona virus.
