Bermuda’s new minimum wage is a welcome break for workers — but the Bermuda Public Services Union has underscored “critical” reforms in need of action.

National unemployment insurance, health insurance costs and pensions reform needed to be “on the front burner”, Kevin Grant, the BPSU general secretary, warned.

He noted that governments worldwide had been called to place social justice high on the priorities of economic recovery by both the International Labour Organisation and the International Trade Union Confederation.

But Mr Grant emphasised the island’s looming challenges with its ageing population, with a quarter of residents to be over the age of 65 by 2026.

“When we live in a country that arguably pays the highest in the world for healthcare, coupled with the high cost of living, clearly there will be challenges with this demographic if we do not make the concerted effort to address these challenges.”

Jason Hayward, the Minister of Economy and Labour, sounded the alarm in January that action was required to boost the working population as the island’s labour force declined — while the number of seniors climbs.

Increasing pressure on health insurance and pensions was highlighted last year in a government position paper, Addressing the Challenge of an Ageing Population in Bermuda.

The BPSU spoke up in 2020 on the island’s need for a “national discussion” on unemployment insurance.

Mr Grant said the demographic shifts challenging labour in Bermuda meant that “we cannot allow for the focus of such critical initiatives to be interrupted by unwarranted negativity as opposed to having the necessary positive public investment”.

“There are established forums where we must continue with the necessary open dialogue.”

He added: “It is through these conversations that the essential buy-in will occur and ultimately put Bermuda on the correct trajectory to economic recovery.”

Mr Grant cited other programmes identified as part of the Government’s economic recovery plan: vertical farming; lowering interest rates to reduce mortgage costs; improvements to water and waste treatment; national re-employment and youth employment strategies; and initiatives within the Economic Empowerment Zone.

“These initiatives all seem to be on track,” he said.

“However, they will need to be monitored through open dialogue and consultation.”