New curbs on employing expatriates in the construction industry will penalise companies which obey Immigration rules and jeopardise new projects, says the Construction Association of Bermuda (CAOB).

Immigration Minister David Burch announced on Wednesday that electricians, carpenters, masons and plumbers would be placed in the restricted category.

Sen. Burch said the move was a result of complaints about increasing numbers of illegal workers in the building industry.

He told the Senate: "As a result of these complaints we have instituted a closer scrutiny of all work permits in this sector as well as placing electricians, carpenters, masons and plumbers in the restricted category."

The Minister said he had been in talks with CAOB to fix the problem and that consultation had to occur with the Bermuda Industrial Union, the Labour Department and the Hustle Truck programme before work permits are issued in those areas.

CAOB president Alex DeCouto said: "We fully support the investigation and appropriate punishment of companies using illegal workers."

But he added: "Penalising the entire industry instead of punishing the law-breakers is unfair, particularly to those companies who employ and train Bermudians but need expatriate workers to supplement their workforce."

It's thought around one third of the 500 to 1,000 workers in those trades are from overseas.

The CAOB has a code of conduct which urges companies to pursue Bermudianisation.

And the association points out that the current work permit process gives rights and privileges to qualified Bermudians ahead of expats in good times and bad.

"Circumventing that process by restricting all significant categories ignores legitimate requirements from the industry for additional skilled workers," said Mr. DeCouto in a letter to the Minister.

And the CAOB is gravely concerned about the effect of the Minister's actions on business.

"Across the board restrictions may stifle new projects that are trying to get off the ground and further exacerbate a downturn for the industry.

"With a shrinking Bermudian workforce, our members depend on expatriate labour to sustain work for their companies and subsequently create work for Bermudian tradesmen."

A survey released by the Bermuda Employers' Council yesterday showed that even if Bermuda's growth rate collapsed to one percent a year from the figures of more than three percent which have been typical in the last decade the number of jobs will still rise while falling birth rates mean the number of Bermudians in the workforce will fall.

Those figures show that the percentage of black Bermudians in the workforce is expected to decline to less than half the workforce.

Mr. DeCouto told The Royal Gazette that talks were continuing with Sen. Burch. "We have been granted access to him to plead our case and he has been receptive, saying it's an on-going dialogue."

Government has offered to consider relaxing the rules for companies who have a good case, said Mr. DeCouto.

The categories are now restricted, not closed, meaning Immigration can grant work permits for new workers as well as continue to renew permits for those already here.

Companies were just as concerned as Government about continued complaints about illegal workers, said Mr. DeCouto.

"It means companies that aren't playing by the rules are taking advantage."

He said the CAOB was interested in improving the ways Bermudians sought employment.

"Maybe there should be a more dynamic system when someone gets laid off they go into a pool which is syndicated to those looking for people.

"I don't doubt there are some people feeling the pinch and there have been layoffs."

But he said many firms were plunging on with major projects and ramping up work.

"The last thing we need is a pinch on labour resourcing when a lot of the buildings are ramping up to get completed.

"We disagree with this action, we still have a dependency on foreign workers, particularly in those categories.

"There are employers out there who are looking to do more work and have legitimately been advertising and legitimately not getting enough of a response and legitimately not getting enough work permits."

Sen. Burch said Government was closely monitoring all other industries where redundancies or layoffs are likely to occur to ensure Bermudians are the last to be displaced.

Bermudians must be laid off last after work permit holders, spouses of Bermudians and Permanent Resident Certificate holders, said the Minister.

He added: "The objective is to ensure that every qualified Bermudian is employed prior to the issuance of a work permit."

And Sen. Burch said the Labour Department has set up a task force between all the appropriate areas within the Ministry to map out a plan for the anticipated downturn.

He added that a one-stop career centre is high on Government's priority list and a location would be announced shortly and he urged Bermudians to consider joining the Police, Prison and Fire services.