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Bermuda needs to be just as aggressive as competitors, says BEC chief

BEC president Keith Jensen

The employment market could be even tougher in 2012 as the recession continues to bite and Bermuda needs to be every bit as aggressive as its rivals to boost business and the wider economy.That is according to Keith Jensen, president of the Bermuda Employers’ Council, who said that he was hopeful current employment levels would be maintained but added that employees needed to continue be more flexible in their jobs and to work longer hours to cover for unfilled vacancies while others would have to reduce their shifts.Mr Jensen said that job seekers may also have to drop their pay expectations and to accept positions below their skill levels in order to find stable employment.But he stressed that re/training, education and improved attitudes towards work were key to getting the economy back on its feet.“Virtually every sector of the economy was affected by the deepening recession which continued from 2010,” he said. “Local firms had to make choices for economic survival and employment and opportunities declined.“Although not affected as severely as local companies, international business cut costs as well. Government’s easing some of the tax burden has assisted businesses to retain employees and this is especially true for the retail, hotel and restaurant industries.”Mr Jensen said that Government, employers and employees all agreed on one point that employment was a top priority.However, he added that unfortunately, requests for changes in the work permit and term limit policies were very slow in being introduced and the conditions associated with the revised policies were too onerous to have a substantial short-term economic impact.“The Island needs to be as aggressive as our competitors to stimulate business, employment, the economy and therefore, tax revenues,” he said. “It is even more urgent now to take steps to concretely change Bermuda’s international business reputation.“We believe that for 2012 there will be little improvement over 2011 but hopefully current levels of employment will be maintained,” he said. “Employees will continue to be more flexible in their jobs to do a variety of tasks; those fully employed will need to do additional hours to get more work done as job vacancies are left unfilled; many persons seeking jobs will continue to reduce their pay expectations in order to find stable employment and even accept positions below their skill levels; other employees will continue to have reduced hours.“In the wake of all this, training and retraining, education and improved attitudes towards work are of paramount importance.”Mr Jensen said that where was also great uncertainty over cost of living or other pay increases in 2012 since few businesses expected an improvement in the economy in the next year.He said that on the labour relations front, breaches in the accepted practices for resolving disputes would significantly undermine the business’ or the economy’s ability to recover.“Such disputes will drain limited cash flow which ensures there is no financial resilience among any companies directly affected or indirectly affected through labour disputes in the Government sector,” he said.“With the issues facing the Island in 2012, we will do well to maintain the current level of local/international business and employment and to improve our visitor, consumer and business experience from the time a person arrives at the airport until he leaves again; we will do well to attract sufficient investment for at least one significant major construction project; we will do well to change Bermuda’s international reputation and to attract job creating international businesses; and we will do well to attract more tourists from a rising American economy.”