A new law to fine companies up to $50,000 if they block the progress of black Bermudians in the workplace is now being circulated by Government.

The Workforce Equity Act 2007 will give Government powers to review and copy company records as they investigate compliance.

However, the draft bill also appears to give bosses a get-out clause by excusing them of any measure to implement employment equity if it would cause "undue hardship".

And companies will not be forced to promote or hire anyone not qualified for the job or be made to create new positions in the workforce.

Community and Cultural Affairs Minister Wayne Perinchief said that Government was bending over backwards to be reasonable — particularly with the smaller firms — where it might be difficult to get the demographics in line with the wider population.

He told The Royal Gazette: "We are not asking to rip your organisation apart so it can't function just in the interests of another ethnic group. It's really saying we are going to be reasonable. There's flexibility — no quotas have been set."

The bill under the Commission for Unity and Racial Equality (CURE), covers companies of 40 or more employees, and is being circulated among employers for feedback. A version is likely to go to the House of Assembly in the next session.

Bermuda Employers Council executive director Martin Law said employers had formed a task force to look at the issue but had only formally been given the legislation on Wednesday with a deadline of October 15 to get a response back to Government which was too soon for proper consultation.

"It's a very short response time."

But Mr. Perinchief said he was considering extending the timeline on consultation because he wanted full participation from all stakeholders.

Mr. Law said employers were still requesting data which Government said proved the need for the legislation. "We have asked questions of the data which have not really been answered."

Mr. Law said the legislation appeared to address disadvantaged black Bermudians.

"They may be disadvantaged in today's workforce by a broken education system rather than an inability of the employer to progress people through the hierarchical chain," he said.

The legislation is believed to the be first to mention "black Bermudians" specifically. Mr. Law said:"It will be interesting to hear what the CURE commissioners have to say about that."

The draft bill requires firms to identify and eliminate barriers against black Bermudians and set up positive policies and practices to ensure black Bermudians achieve "a degree of representation in each occupational group in the employers workforce that reflects their representation in the Bermuda labour force".

Employers will be forced to analyse their workforce to see where black Bermudians are and then identify and eliminate any potential barriers to upward mobility.

Each employer will also be made to prepare a plan that specifies short-term policies (between one and three years) to boost the hiring, training, retention and promotion of black Bermudians.

A timetable of measures is required with goals set each year if there is a need to improve the demographics of the workforce.

Each company must prepare a report on employment fairness, to be ready by June 1 each year, detailing steps taken and meetings with unions or employees representatives about what had been done.

CURE's compliance officers will be given powers to go anywhere (other than someone's home) in their investigations and examine or take copies of records.

Companies which have broken the law by various means including not collecting information, or analysing their workforce or preparing measures to improve the lot of black Bermudians, will be forced to sign an agreement to do so.

Those who refuse will then be liable to face a board of inquiry which can dish out fines of up to $50,000 although this can be appealed in Supreme Court which can overturn the board's decision.

Last month Mr. Perinchief told The Royal Gazette that the Government could "no longer leave the issue of imbalance and under-representation of blacks in the workplace to good will".

And he said there is an element of racism in the maintenance of the white male in middle and upper management.The most recent statistics showing black people are still a minority in executive positions down from 29 percent to 27 percent last year.

However, the Association of Bermuda International Companies (ABIC) has already branded the proposed bill as "punitive" and not the way to achieve the desired promotion of black Bermudian executives.

ABIC said CURE's workplace surveys did not include information on the educational levels of employees.

* To see a copy of the draft law in PDF format, go to http://www.theroyalgazette.com/siftology.royalgazette/Video/pdfs/Workforce%20Equity%20-%20Consultation%20Draft.pdf.